The IRS is looking closely at substantiation of employee expenses and reimbursements.  Does your institution have proper policies/procedures in place?

The IRS has become increasingly persnickety about donation receipts – and the verbiage therein.

Here is a question we’ve received several times – Are donated services/labor tax deductible on the “donors” tax return per IRS rules?

Although actual turkeys and hams given to employees are generally non-taxable, holiday gift cards are another story.

**DEVELOPMENT DIRECTOR ALERT**  The PATH Act of 2015 made the “IRA Charitable Rollover” a permanent law.  This can be very beneficial to your institution and some major donors.

In a recent case, the IRS found coaches’ “golf shirts”, etc. – provided by the college – to be taxable to the coaches.

The IRS looks for “assignment letters” when non-churches engage in the MHA process.

Charitable solicitation registration requirements with states are a large area of noncompliance for Christian colleges, seminaries, and universities.  Is your institution in compliance with regard to “state charitable registrations?

Situation Troas Bible College (TBC), a private college that is exempt under I.R.C. section 501(c)(3), is planning a “Christmas Cantata” by a renowned symphony orchestra from a European capital. The College “hosts” several of these events during the year (so the activity would be considered “regularly carried on”). TBC advertises these performances and supervises advance ticket sales at various places, including such college facilities as the cafeteria and the college bookstore. They call to ask us whether this event would be and unrelated business activity and whether this – and the other events of its type – would require separate accounting and Form 990-T filing. We respond that it is a management best practice to account for events such as this separately, but the event – nor those like it – would be unrelated because the activity appears to have a “direct, causal” relationship to TBC’s exempt purpose. Another good management practice is to document how/why these activities are related to TBC’s exempt purpose.

As we celebrate our 100th post, how about a UBIT Refresher? Situation Troas Bible College (TBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  They are required to file Form 990 annually.  Their new CFO calls us and says, “I’m new to higher education – with a background in banking – and this UBI stuff seems daunting.  How can I find out more about it – and fast?”