Do you know what a “rebuttable presumption” is? Can you name the “disqualified persons” in your organization? Do you know why these things are important? If you answered, “No,” to any of these questions, this free Webinar is for you. Join attorney (and former state charity official) Karl Emerson and GuideStar’s Chuck McLean to find out what are best practices in nonprofit compensation. The IRS, Congress, and donors are all taking hard looks at what nonprofits pay their leaders. Make sure you can justify your organization’s compensation practices to these important audiences.
Presenters: Karl E. Emerson, of counsel, Montgomery McCracken, and Chuck McLean, Vice President of Research, GuideStar USA
GuideStar Webinar 10.02.14 Best Practices in Nonprofit CompensationGuideStar
Presenters: Karl E. Emerson, Of Counsel, Montgomery McCracken, and Chuck McLean, Vice President of Research, GuideStar USA
Do you know what a “rebuttable presumption” is? Can you name the “disqualified persons” in your organization? Do you know why these things are important? If you answered, “No,” to any of these questions, this free Webinar is for you. Join attorney (and former state charity official) Karl Emerson and GuideStar’s Chuck McLean to find out what are best practices in nonprofit compensation. The IRS, Congress, and donors are all taking hard looks at what nonprofits pay their leaders. Make sure you can justify your organization’s compensation practices to these important audiences.
This document discusses self-dealing issues and compensation related matters for private foundations. It defines disqualified persons as individuals or organizations that are related to a private foundation and with whom the foundation is limited from engaging in transactions that could constitute self-dealing. It outlines prohibited transactions such as sales, exchanges, loans or the payment of compensation between a private foundation and disqualified persons. Exceptions and disclosure requirements are also covered.
The presentation provided information to senior managers at Sonarwa General Insurance Company on embracing data analytics to monitor and identify fraud. It defined fraud, explained reasons it occurs including pressure, opportunity, and rationalization. Fraud affects key metrics like premiums and GDP growth. Common insurance fraud practices and their effects on companies were outlined. Data analytics can monitor claims histories, first notices of loss, and billing patterns. Addressing fraud requires whistleblower policies, vetting employees, audits, automation, and a zero tolerance culture.
Managing Fraud and Corruption in ProjectsPLAcademy
Any act of fraud and corruption in any project’s activities depletes funds, assets and other resources necessary to fulfil the projects’ mandate.
Fraudulent and corrupt practices can also seriously damage organization’s reputation and diminish trust in its ability to deliver results in an accountable and transparent manner.
It may also affect staff and personnel effectiveness, motivation and morale, and impact on the Organization’s ability to attract and retain a talented work force.
Crowdfunding from the Start-Up's Perspective (Series: Crowdfunding 2020) Financial Poise
How can businesses use the tools created by the JOBS Act to access capital? This webinar compares raising money online to traditional methods of capital raising. It also compares each of the different titles available under the JOBS Act. Finally, we discuss and compare the differences between security based crowdfunding and rewards based crowdfunding, exploring those instances where such a method would make sense.
To listen to this webinar on demand, go to: https://www.financialpoise.com/financial-poise-webinars/crowdfunding-from-the-start-ups-perspective-2020/
Fairness Considerations in Going Private TransactionsMercer Capital
A presentation by Jeff K. Davis, CFA, that provides an overview of issues surrounding a decision to take an SEC-registrant private.
Pros and Cons of Going Private
Structuring a Transaction
Valuation Analysis
Fairness Considerations
Fairness Considerations in Going Private TransactionsJeff Davis
While there once may have been a good reason to be a public company (or not), that may no longer be the case: hence, consideration of a go-private transaction may be warranted. This short presentation is intended to provide an overview of some issues surrounding a decision to take an SEC-registrant private. This presentation does not cover all issues with going private transactions; nor should it be construed to convey legal, accounting or tax-related advice. Companies considering such a move should hire appropriate legal and financial advisors.
GuideStar Webinar 10.02.14 Best Practices in Nonprofit CompensationGuideStar
Presenters: Karl E. Emerson, Of Counsel, Montgomery McCracken, and Chuck McLean, Vice President of Research, GuideStar USA
Do you know what a “rebuttable presumption” is? Can you name the “disqualified persons” in your organization? Do you know why these things are important? If you answered, “No,” to any of these questions, this free Webinar is for you. Join attorney (and former state charity official) Karl Emerson and GuideStar’s Chuck McLean to find out what are best practices in nonprofit compensation. The IRS, Congress, and donors are all taking hard looks at what nonprofits pay their leaders. Make sure you can justify your organization’s compensation practices to these important audiences.
This document discusses self-dealing issues and compensation related matters for private foundations. It defines disqualified persons as individuals or organizations that are related to a private foundation and with whom the foundation is limited from engaging in transactions that could constitute self-dealing. It outlines prohibited transactions such as sales, exchanges, loans or the payment of compensation between a private foundation and disqualified persons. Exceptions and disclosure requirements are also covered.
The presentation provided information to senior managers at Sonarwa General Insurance Company on embracing data analytics to monitor and identify fraud. It defined fraud, explained reasons it occurs including pressure, opportunity, and rationalization. Fraud affects key metrics like premiums and GDP growth. Common insurance fraud practices and their effects on companies were outlined. Data analytics can monitor claims histories, first notices of loss, and billing patterns. Addressing fraud requires whistleblower policies, vetting employees, audits, automation, and a zero tolerance culture.
Managing Fraud and Corruption in ProjectsPLAcademy
Any act of fraud and corruption in any project’s activities depletes funds, assets and other resources necessary to fulfil the projects’ mandate.
Fraudulent and corrupt practices can also seriously damage organization’s reputation and diminish trust in its ability to deliver results in an accountable and transparent manner.
It may also affect staff and personnel effectiveness, motivation and morale, and impact on the Organization’s ability to attract and retain a talented work force.
Crowdfunding from the Start-Up's Perspective (Series: Crowdfunding 2020) Financial Poise
How can businesses use the tools created by the JOBS Act to access capital? This webinar compares raising money online to traditional methods of capital raising. It also compares each of the different titles available under the JOBS Act. Finally, we discuss and compare the differences between security based crowdfunding and rewards based crowdfunding, exploring those instances where such a method would make sense.
To listen to this webinar on demand, go to: https://www.financialpoise.com/financial-poise-webinars/crowdfunding-from-the-start-ups-perspective-2020/
Fairness Considerations in Going Private TransactionsMercer Capital
A presentation by Jeff K. Davis, CFA, that provides an overview of issues surrounding a decision to take an SEC-registrant private.
Pros and Cons of Going Private
Structuring a Transaction
Valuation Analysis
Fairness Considerations
Fairness Considerations in Going Private TransactionsJeff Davis
While there once may have been a good reason to be a public company (or not), that may no longer be the case: hence, consideration of a go-private transaction may be warranted. This short presentation is intended to provide an overview of some issues surrounding a decision to take an SEC-registrant private. This presentation does not cover all issues with going private transactions; nor should it be construed to convey legal, accounting or tax-related advice. Companies considering such a move should hire appropriate legal and financial advisors.
- Debt can be used strategically by companies to enhance shareholder value through tax benefits, lower cost of capital, and leverage. However, too much debt can destroy value.
- The stocks of companies with leveraged balance sheets have significantly outperformed less leveraged stocks over the short, medium, and long term, despite higher volatility.
- These underfollowed small- and mid-cap stocks represent an inefficient area of the market that experienced high-yield analysts can generate alpha in by identifying capital structure catalysts.
Crowdfunding is a popular way to raise money quickly for a cause or a product. What about using crowdfunding to raise money for your law practice? Potential ethical trap?
Helen Furneaux, charities specialist at Stephens Scown, presents on Conflict of Interest - why do they matter?
Thrive Third Sector
13 March 2015
Heartlands, Cornwall
www.thriveevents.org.uk
This presentation explains how you can prevent and deter fraud in your nonprofit organization, why some employees commit fraud and how to spot behavioral "red flags," what to do if you discover fraud in your organization, and common fraud schemes to watch for.
This document provides BlackRock's comments and suggestions regarding central clearing of OTC derivatives. Some of the key points made include:
1) CCP loss absorbing resources are insufficient and should be strengthened by increasing the CCP's contribution to the guaranty fund and requiring pre-funding of clearing member assessments.
2) Increased transparency is needed regarding CCP risk management practices, stress testing, and total loss absorbing resources.
3) Broader participation in auctions following a clearing member default, including from non-clearing members, could improve auction results.
4) Margin of non-defaulting parties should never be used as a CCP liquidity source. Variation margin payments should not be
Private placements allow companies to raise money by selling securities without having to comply with public offering registration requirements. They can only be marketed to accredited investors with high net worth or income. While this provides an alternative source of capital, private placements also have a high risk of fraud since they are not reviewed by regulators. Investors considering these offerings should thoroughly research the company, executives, and investment being offered.
Points to keep in mind when looking for an ATE on a multi claimant commercial...Demi Edmunds
Matthew Williams answers the following question: When looking for ATE on a multi claimant commercial claim, are there additional points to keep in mind?
Executive compensation continues its movement towards performance pay as the standard. Compensation structures and proxy disclosures are more and more complex. Investors and proxy advisors continue to increase influence on compensation issues. This webinar examines executive compensation, including equity-based compensation plans and executive employment and severance agreements. The importance of disclosure, alignment of risk, and metrics is also examined. Practical guidance on pay-for-performance and supplemental pay definitions is provided. The panelists discuss the effect of the Dodd-Frank Act on executive compensation, including SEC regulations. Exchange rules are compared to applicable federal law. Best practices regarding executive compensation committees and regulatory requirements for those committees are examined. Shareholder advisory groups promulgate executive compensation related advisory policies for their institutional shareholder clients annually and these policies are also discussed. Issues regarding board composition and leadership structure issues are discussed in relation to executive compensation.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/executive-compensation-2021/
A review of common fraud areas that occur in closely held businesses, how to prevent them and what your legal remedies are if you are a victim of fraud.
This presentation details recent frauds in the Indian retail Industry. It discusses the perpetrators of such fraud (customers, employees and top management) and stages in the value chain most susceptible to fraud (Property acquisition, merchandise sourcing, third party vendors, accounting books).
Defending Against Bankruptcy Avoidance Actions (Series: Complex Financial Lit...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/defending-against-bankruptcy-avoidance-actions-2021/
The document provides an overview of fraud awareness and prevention. It discusses common fraud schemes like financial statement fraud, assets misappropriation, and corruption. It also outlines red flags for detecting occupational fraud, how fraud is committed, and profiles of typical fraud perpetrators. The document emphasizes the importance of strong antifraud controls, training programs, and fostering an ethical organizational culture to help prevent and detect fraud.
Wealth Transfer and Charitable Planning Strategies Handbooksradin
This document provides an overview of 12 core wealth transfer and charitable planning strategies, including charitable lead trusts, charitable remainder trusts, credit shelter trusts, dynasty trusts, grantor retained annuity trusts, irrevocable life insurance trusts, and others. For each strategy, a brief description is given along with potential benefits, planning considerations, and a diagram demonstrating how the strategy works. The strategies can help clients transfer wealth, benefit charity, reduce estate taxes, and leverage gifts using life insurance.
An Introduction to a New Yet Old Funding Alternative (Series: Commercial Liti...Financial Poise
Litigation funding is an increasingly-popular tool for attorneys and clients to share the risk and reward of litigation with third-party investors, and for investors to capitalize on the uncorrelated returns generated by legal-driven revenue. This webinar is intended to provide an overview of the topic generally, touching on the “who,” “what,” “where,” “when,” “why” and “how’s” behind litigation funding.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/an-introduction-to-a-new-yet-old-funding-alternative-2021/
Fraud Risk Assessment- detection and prevention- Part- 2, Tahir Abbas
The document discusses various techniques for detecting and preventing fraud, including:
1) Establishing prevention techniques like controls, job rotation, and education to avoid fraud risks.
2) Implementing detection methods such as data analysis, forensic auditing, and link analysis to uncover fraud.
3) Asking vital questions within 24 hours of a fraud allegation to properly investigate and prevent future fraud.
This document discusses employment taxes and the trust fund recovery penalty (TFRP). It begins by explaining trust fund taxes, which are taxes that employers are required to withhold from employee wages, such as income taxes and the employee portion of Social Security and Medicare taxes. These withheld taxes are considered funds held in trust for the government. The TFRP is a penalty that can be assessed against individuals within an employer's organization who are responsible for ensuring these trust fund taxes are paid over to the IRS but willfully fail to do so. The document outlines the key elements the IRS examines to determine if someone is liable for the TFRP, such as if they had sufficient control over the employer's financial decisions. It also discusses
This document provides an overview of living trusts, including:
- Living trusts allow beneficiaries and trustees to avoid probate and distribute assets privately after death. They define heirs, trustees, and terms of distribution.
- Revocable living trusts can be changed during the settlor's lifetime, while irrevocable trusts cannot. There are also several sub-types of living trusts.
- Creating a living trust requires defining distribution of assets after death. They provide legal protection for passing ownership of assets.
- Taxation of living trusts depends on whether assets are held or distributed before or after the primary trustee's death. Proper planning is required to minimize taxes.
This document summarizes key topics in museum insurance, including protecting volunteers, liquor liability, sexual abuse/molestation coverage, Affordable Care Act compliance, and directors & officers/employment practices liability insurance. It discusses scenarios where these types of insurance would apply and important considerations for nonprofit organizations. The presenters are insurance experts with specific experience insuring museums and nonprofits.
IRS Regulations-Charities & Nonprofits Conflict of InterestMichael Wyland
Few nonprofit and charity leaders are familiar with the IRS regulations known as "intermediate sanctions." These rules govern conflicts of interest and compensation in nonprofit and charitable organizations, including churches.
- Debt can be used strategically by companies to enhance shareholder value through tax benefits, lower cost of capital, and leverage. However, too much debt can destroy value.
- The stocks of companies with leveraged balance sheets have significantly outperformed less leveraged stocks over the short, medium, and long term, despite higher volatility.
- These underfollowed small- and mid-cap stocks represent an inefficient area of the market that experienced high-yield analysts can generate alpha in by identifying capital structure catalysts.
Crowdfunding is a popular way to raise money quickly for a cause or a product. What about using crowdfunding to raise money for your law practice? Potential ethical trap?
Helen Furneaux, charities specialist at Stephens Scown, presents on Conflict of Interest - why do they matter?
Thrive Third Sector
13 March 2015
Heartlands, Cornwall
www.thriveevents.org.uk
This presentation explains how you can prevent and deter fraud in your nonprofit organization, why some employees commit fraud and how to spot behavioral "red flags," what to do if you discover fraud in your organization, and common fraud schemes to watch for.
This document provides BlackRock's comments and suggestions regarding central clearing of OTC derivatives. Some of the key points made include:
1) CCP loss absorbing resources are insufficient and should be strengthened by increasing the CCP's contribution to the guaranty fund and requiring pre-funding of clearing member assessments.
2) Increased transparency is needed regarding CCP risk management practices, stress testing, and total loss absorbing resources.
3) Broader participation in auctions following a clearing member default, including from non-clearing members, could improve auction results.
4) Margin of non-defaulting parties should never be used as a CCP liquidity source. Variation margin payments should not be
Private placements allow companies to raise money by selling securities without having to comply with public offering registration requirements. They can only be marketed to accredited investors with high net worth or income. While this provides an alternative source of capital, private placements also have a high risk of fraud since they are not reviewed by regulators. Investors considering these offerings should thoroughly research the company, executives, and investment being offered.
Points to keep in mind when looking for an ATE on a multi claimant commercial...Demi Edmunds
Matthew Williams answers the following question: When looking for ATE on a multi claimant commercial claim, are there additional points to keep in mind?
Executive compensation continues its movement towards performance pay as the standard. Compensation structures and proxy disclosures are more and more complex. Investors and proxy advisors continue to increase influence on compensation issues. This webinar examines executive compensation, including equity-based compensation plans and executive employment and severance agreements. The importance of disclosure, alignment of risk, and metrics is also examined. Practical guidance on pay-for-performance and supplemental pay definitions is provided. The panelists discuss the effect of the Dodd-Frank Act on executive compensation, including SEC regulations. Exchange rules are compared to applicable federal law. Best practices regarding executive compensation committees and regulatory requirements for those committees are examined. Shareholder advisory groups promulgate executive compensation related advisory policies for their institutional shareholder clients annually and these policies are also discussed. Issues regarding board composition and leadership structure issues are discussed in relation to executive compensation.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/executive-compensation-2021/
A review of common fraud areas that occur in closely held businesses, how to prevent them and what your legal remedies are if you are a victim of fraud.
This presentation details recent frauds in the Indian retail Industry. It discusses the perpetrators of such fraud (customers, employees and top management) and stages in the value chain most susceptible to fraud (Property acquisition, merchandise sourcing, third party vendors, accounting books).
Defending Against Bankruptcy Avoidance Actions (Series: Complex Financial Lit...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/defending-against-bankruptcy-avoidance-actions-2021/
The document provides an overview of fraud awareness and prevention. It discusses common fraud schemes like financial statement fraud, assets misappropriation, and corruption. It also outlines red flags for detecting occupational fraud, how fraud is committed, and profiles of typical fraud perpetrators. The document emphasizes the importance of strong antifraud controls, training programs, and fostering an ethical organizational culture to help prevent and detect fraud.
Wealth Transfer and Charitable Planning Strategies Handbooksradin
This document provides an overview of 12 core wealth transfer and charitable planning strategies, including charitable lead trusts, charitable remainder trusts, credit shelter trusts, dynasty trusts, grantor retained annuity trusts, irrevocable life insurance trusts, and others. For each strategy, a brief description is given along with potential benefits, planning considerations, and a diagram demonstrating how the strategy works. The strategies can help clients transfer wealth, benefit charity, reduce estate taxes, and leverage gifts using life insurance.
An Introduction to a New Yet Old Funding Alternative (Series: Commercial Liti...Financial Poise
Litigation funding is an increasingly-popular tool for attorneys and clients to share the risk and reward of litigation with third-party investors, and for investors to capitalize on the uncorrelated returns generated by legal-driven revenue. This webinar is intended to provide an overview of the topic generally, touching on the “who,” “what,” “where,” “when,” “why” and “how’s” behind litigation funding.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/an-introduction-to-a-new-yet-old-funding-alternative-2021/
Fraud Risk Assessment- detection and prevention- Part- 2, Tahir Abbas
The document discusses various techniques for detecting and preventing fraud, including:
1) Establishing prevention techniques like controls, job rotation, and education to avoid fraud risks.
2) Implementing detection methods such as data analysis, forensic auditing, and link analysis to uncover fraud.
3) Asking vital questions within 24 hours of a fraud allegation to properly investigate and prevent future fraud.
This document discusses employment taxes and the trust fund recovery penalty (TFRP). It begins by explaining trust fund taxes, which are taxes that employers are required to withhold from employee wages, such as income taxes and the employee portion of Social Security and Medicare taxes. These withheld taxes are considered funds held in trust for the government. The TFRP is a penalty that can be assessed against individuals within an employer's organization who are responsible for ensuring these trust fund taxes are paid over to the IRS but willfully fail to do so. The document outlines the key elements the IRS examines to determine if someone is liable for the TFRP, such as if they had sufficient control over the employer's financial decisions. It also discusses
This document provides an overview of living trusts, including:
- Living trusts allow beneficiaries and trustees to avoid probate and distribute assets privately after death. They define heirs, trustees, and terms of distribution.
- Revocable living trusts can be changed during the settlor's lifetime, while irrevocable trusts cannot. There are also several sub-types of living trusts.
- Creating a living trust requires defining distribution of assets after death. They provide legal protection for passing ownership of assets.
- Taxation of living trusts depends on whether assets are held or distributed before or after the primary trustee's death. Proper planning is required to minimize taxes.
This document summarizes key topics in museum insurance, including protecting volunteers, liquor liability, sexual abuse/molestation coverage, Affordable Care Act compliance, and directors & officers/employment practices liability insurance. It discusses scenarios where these types of insurance would apply and important considerations for nonprofit organizations. The presenters are insurance experts with specific experience insuring museums and nonprofits.
IRS Regulations-Charities & Nonprofits Conflict of InterestMichael Wyland
Few nonprofit and charity leaders are familiar with the IRS regulations known as "intermediate sanctions." These rules govern conflicts of interest and compensation in nonprofit and charitable organizations, including churches.
The document discusses the benefits and disadvantages of trusts, including ensuring smooth transfer of assets between generations, protecting assets from creditors, reducing death duties and taxes, and preserving wealth. It notes trusts require donors to relinquish ownership and control to trustees. Costs include bank fees of 1-2% of capital. Inter vivos trusts allow more flexibility than testamentary trusts. Trustees have responsibilities like insuring assets and complying with the trust deed and law. Problem clauses can undermine the validity and intended tax benefits of a trust. Taxes on trusts include income tax of 40% in the trust and capital gains tax of 20% in the trust. Income and gains can be distributed to beneficiaries taxed at their individual rates. The document
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
Part of the webinar series: COMPLEX FINANCIAL LITIGATION 2022
See more at https://www.financialpoise.com/webinars/
Protect your-executives-and-board-from-excess-compensation-risksCBIZ, Inc.
Not-for-profits must closely monitor the line between reasonable and excessive compensation. With the increasing IRS scrutiny on compensation levels, not-for-profits must be vigilant to ensure their pay and other transactions to key personnel remain reasonable.
Course Description
If you own or manage a business that uses independent contractors, you need to know when you can or cannot treat a worker as an independent contractor. This presentation answers some of the common questions about worker classification.
INTRODUCTION
Misclassification of employees as independent contractors is now a common phrase uttered by state and federal legislators and regulators. State task forces have been formed to crack down on businesses that do not pay unemployment insurance and workers’ compensation premiums or withhold taxes for workers whom the state believes are employees and not independent contractors.
The document discusses estate planning tools like trusts and wills. It provides information on the legal nature and purpose of trusts, including benefits like protecting assets and reducing death duties. It describes the differences between inter vivos and testamentary trusts. The roles and duties of trustees are outlined. Some common problem clauses in trust deeds are highlighted with examples. Taxation of trusts, including income tax and capital gains tax, is covered. Requirements for a valid will are also summarized.
The document discusses the legal nature and benefits of trusts. It states that a trust is not a legal entity but that trustees are considered separate legal entities. It lists benefits of trusts such as reducing estate duties and protecting assets from creditors. It also discusses disadvantages like loss of control over assets. The document then covers topics like the differences between inter vivos and testamentary trusts, the role of independent trustees, trustees' duties, and common problematic clauses in trust deeds. It provides tax implications of trusts and strategies for transferring assets to trusts.
The document discusses anti-money laundering and know your customer (KYC) procedures. It describes the three stages of money laundering - placement, layering, and integration. It outlines red flags such as high value withdrawals soon after investment or unusual sources/destinations of funds. It emphasizes the importance of reporting suspicious transactions and not tipping off customers. The document also discusses KYC procedures like verifying customer identity and address and understanding their needs and expected business.
A UBO is an individual who ultimately owns or controls 25% or more
of an entity (whether directly as a shareholder or indirectly via control
of companies) or other entities or structures that control the entity. In
short, it is the ultimate beneficiary regardless of the chain of control.
If a company is in financial difficulty, its shareholde
rs, creditors or the court can put the company into
liquidation.
This information sheet provides general informa
tion for employees of companies in liquidation.
Employees should also read ASIC information sheet INFO 45. for more info, visit: http://www.svpartners.com.au/uploads/197.pdf
Not-for-Profit Compensation Controversies Continue to Add Fuel to the FireCBIZ, Inc.
Compensation in the not-for profit sector has been a consistent lightning rod for the IRS and other federal governing bodies, as well as for states, for many years.
This document discusses estate planning through charitable giving, including private foundations and charitable trusts. It provides an overview of why people give to charity, the tax benefits of giving while alive versus at death, and outlines the key differences between private foundations and public charities. Additionally, it summarizes the requirements and tax implications of various charitable vehicles like charitable remainder trusts, charitable lead trusts, and private foundations.
What are your rights when you're a beneficiary of a trust? What if you're NOT the trustee, but only the beneficiary, and you are having trouble getting information from the trustee. You see the trustee is responsible for administering the trust on behalf of the beneficiaries - not for themselves, unless the trustee also happens to be a (or one of) the beneficiaries too. Are they as beneficiary confusing their duty as trustee and vice versa.
This document discusses several key issues related to corporate governance for nonprofit organizations. It covers topics like tax exempt status, regulations from various oversight bodies, restrictions on activities for 501(c)(3) nonprofits, fiduciary duties of board members, conflicts of interest, and fundraising compliance. Proper governance is important for nonprofits to maintain their tax exempt status and fulfill their missions in accordance with applicable laws and regulations.
This document discusses trusts, including what a trust is, benefits and disadvantages of trusts, taxation of trusts, and examples. Some key points covered include:
- A trust is a contract where a donor transfers assets to trustees to hold for the benefit of beneficiaries.
- Benefits of trusts include preservation of wealth across generations, protection of people and causes, and reduction of taxes like capital gains tax, estate duty tax, and donations tax.
- Disadvantages include the donor losing control over assets and costs of establishing and maintaining the trust.
- Taxation includes income tax and capital gains tax in the trust at rates of 40% and 20%, and distributions to beneficiaries may be taxed depending on rules.
-
Charity Trustees and Grant Making: Have Your Done Your Due Diligigence With R...IBB Law
The document discusses the importance of carrying out due diligence as part of the grant making process for charities. It notes that while due diligence may seem like a tedious task, it is important to minimize risks and ensure funds are properly used. The author provides tips for an appropriate due diligence process, including assessing risks, determining the level of due diligence required, and basic checks such as reviewing legal status, accounts and online presence. Maintaining records of due diligence is also advised. The guidance aims to help trustees discharge their duties and provide reassurance that funds are being expended responsibly.
This document provides an overview and introduction to ethics training. It discusses key concepts like ethical choices, principals, dilemmas, and the importance of transparency, integrity and stewardship when working in public service. Specific topics covered include conflicts of interest, gifts, post-employment restrictions, use of public resources, and confidential information. The goal is to provide a clear understanding of ethics rules and help employees navigate complex situations that involve balancing competing ethical considerations.
Similar to GuideStar Webinar (10/01/13) - Best Practices in Nonprofit Compensation (20)
This document provides information about how to prepare for #GivingTuesday, which is described as the most important fundraising day of the year. It outlines an agenda for a webinar on #GivingTuesday that will discuss joining the movement, maximizing impact through match gifts, fundraising on Facebook, and answering questions. Additional sections promote the benefits of an organization's GuideStar profile and share polling questions about experience with and planning for #GivingTuesday.
This document provides information on using Facebook tools to connect with donors and raise funds for charitable causes. It discusses overall charitable giving statistics in the US and Facebook's large user base. It then summarizes several Facebook fundraising and awareness tools like donate buttons, fundraisers, paid ads, Facebook Live, and #MyGivingStory campaigns. Specific examples are given of nonprofits that successfully used these tools to generate donations, go viral, and increase returns on ad spend. The webinar aims to help nonprofits better utilize Facebook for philanthropic purposes.
GuideStar held its quarterly Impact Call on February 9, 2016 to report on fourth quarter results and provide an outlook for 2016. Key highlights included:
- Programmatic results showed declines in profile updates but growth in higher-level Gold profiles and GuideStar for Grants adoption. Unique users and the data distribution network also grew.
- Preliminary financial results for 2015 showed revenue growth of 10% and expenses growth of 20%, with a break-even operating income expected given investments in staffing. The balance sheet remained strong.
- Lessons from stakeholder feedback will inform GuideStar's 2020 strategic plan to build the "scaffolding of social change." The call concluded with a Q&A session.
A Conversation on Making Data Driven Decisions Using Financial SCANGuideStar
Join Bunkie Righter from GuideStar as we learn how foundations and charities discover the indicators of financial health that matter most. Special guests Chris Percopo of The Leona M. and Harry B. Helmsley Charitable Trust, and Dennis Dolbee of Boys & Girls Clubs of America, will offer insight into how they use Financial SCAN to make better decisions within their organizations. Moderated by Ashley Early.
12/3/15 GuideStar Webinar -- A Sneak Peek at the 2016 Nonprofit Communication...GuideStar
Presenters: Kivi Leroux Miller, President of NonprofitMarketingGuide.com; Courtney Cherico, Content Marketing Associate, GuideStar USA (moderator).
View the recording of the presentation here: https://www.youtube.com/watch?v=SAVitgLd8Fw
New Nonprofit Profile Preview: Answering Key Nonprofit Performance Questions GuideStar
Preview the beta version of the NEW Nonprofit Profiles with GuideStar’s Director of Design, Sarah Madden and Product Marketing Manager, Krystal Kavney. Together, they will discuss how GuideStar’s redesigned Nonprofit Profiles are designed to help you answer key nonprofit performance questions in an interactive, data-rich user interface.
During the conversation, the panelists will explore the new GuideStar Nonprofit Profiles for several nonprofit organizations as they discuss how to answer key nonprofit performance questions such as:
• Which programs or services does the organization offer?
• Where do they provide their services?
• What kinds of results and impact are they achieving?
• How financially stable are they?
• What is the makeup of their board and staff?
Loosely based on the quarterly earnings calls held by publicly owned companies, GuideStar's Impact Calls are the first steps in addressing new definitions of transparency.
During this Impact Call, our Vice President of Products Evan Paul will provide a live demonstration of the beta version of the new, completely redesigned GuideStar Nonprofit Profiles (read more here: http://trust.guidestar.org/2015/10/29/redesigned-nonprofit-profiles-on-guidestar/)
GuideStar Webinar (11/5/15) -- Ask the Nonprofit Lawyer Everything You Wanted...GuideStar
Presenters: Jeffrey S. Tenenbaum, Esq., Partner and Chair of the Nonprofit Organizations Practice, Venable LLP; Cody Cassady, Marketing & Outreach Coordinator, GuideStar USA, Inc. (moderator).
6 Best Practices for Implementing a GuideStar API.GuideStar
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GuideStar Webinar (10/01/13) - Best Practices in Nonprofit Compensation
1. The Private Inurement
Prohibition, Excess
Compensation, Intermediate
Sanctions, And The IRS’s
Rebuttable Presumption ---- A
Basic Primer For 501(c)(3)
Public Charities
Karl E. Emerson
Montgomery, McCracken, Walker & Rhoads, LLP
2. Disclaimer
• This presentation is intended to provide only
a general summary and overview of these
topics as they pertain to public charities that
have been granted tax-exempt status under
Section 501(c)(3) of the Internal Revenue
Code.
3. Disclaimer
• This presentation will not address the
applicability of these topics to other types of
tax-exempt organizations such as private
foundations and those that have been
granted tax-exempt status under other parts
of Section 501(c)(3) of the Internal Revenue
Code.
4. Disclaimer
• The information provided during this
presentation is not to be considered legal
advice applicable to any particular situation,
and organizations needing specific advice
and counsel on these matters should always
consult with knowledgeable counsel.
5. The Private Inurement Prohibition
• The private inurement prohibition requires
that a public charity that has been granted
tax-exempt status under Section 501(c)(3) of
the Internal Revenue Code (“charity”)
operate so that none of its income or assets
unreasonably benefits any of its board
members, trustees, officers, or key
employees.
• These types of individuals are commonly
referred to as “insiders”.
6. The Private Inurement Prohibition
• Thus, the prohibition precludes any of the
income or assets of a charity from unfairly or
unreasonably benefiting, either directly or
indirectly, individuals who have close
relationships with their organizations and the
ability to exercise control over them.
• The most common type of private inurement
is excessive compensation paid to insiders
and this topic will be covered in much
greater detail later in the presentation.
7. The Private Inurement Prohibition
• There are, however, many other forms of
private inurement that can also result in the
revocation of a charity’s tax-exempt status
and/or in the imposition of significant
“intermediate sanctions” that will be
discussed shortly.
• These other forms of possible private
inurement include, but are not limited to:
• the sale of a charity’s asset to an insider;
8. The Private Inurement Prohibition
• the charity’s purchase of an asset from an
insider;
• the charity’s rental of property from, or to, an
insider;
• the charity’s lending of money to an insider;
and
• the use of facilities and/or other assets of the
charity by an insider.
9. The Private Inurement Prohibition
• Just as with assessing the appropriateness
of an insider’s compensation, the decisive
factor in determining whether a transaction
with an insider violates the private inurement
prohibition is whether the transaction is fair
and reasonable under the circumstances.
• For example, it would not necessarily be
improper to sell a charity’s asset to an
insider at, or above, its fair market value.
10. The Private Inurement Prohibition
• It would, however, probably be improper to
sell a charity’s asset to an insider for less
than its fair market value.
• Similarly, it would not necessarily be
improper to rent a charity’s office facilities
from an insider at, or below, fair market
value, but it would be improper to do so for
more than fair market value.
11. The Private Inurement Prohibition
• Likewise, it would not necessarily be
improper for a charity to purchase assets
and/or services from an insider, or from an
entity with which the insider or a family
member is affiliated, as long as the assets
and/or services are purchased at, or below,
their fair market value rather than for more
than their fair market value.
12. The Private Inurement Prohibition
• The courts and the IRS have consistently
ruled that any unreasonable benefit or
inurement, however small, is impermissible
and can result in the revocation of a charity’s
tax-exempt status.
• However, even if private inurement is clearly
present in a particular fact situation, it can
often be argued that the ultimate sanction of
revoking a charity’s tax-exempt status should
not be imposed if the unreasonable benefit is
incidental or insignificant.
13. The Private Inurement Prohibition
• In such instances, a strong case can be
made to only have the “intermediate
sanctions” that will be discussed shortly
imposed instead of revoking the charity’s
tax-exempt status.
14. Excessive Compensation
• As was noted earlier, the most common type
of private inurement is the payment of
excessive compensation to insiders.
• The IRS has significantly increased its
enforcement efforts in this area and recently
assessed millions of dollars in penalties for
these types of violations. In addition, the
IRS has indicated that it will now include
excessive compensation analyses in every
future audit it conducts.
15. Excessive Compensation
• It is important to note, however, that
individuals working for a charity are not
required to donate their services and are
allowed to be reasonably compensated.
• In other words, they are not required to work
for free or accept reduced compensation
simply because they provide their services to
a charity rather than to a taxable
organization, although such individuals often
do.
16. Excessive Compensation
• The private inurement prohibition simply
requires that the total compensation paid by
a charity to an insider be fair and
reasonable.
• Whether an insider’s total compensation is
fair and reasonable is determined on a case-
by-case basis using a process similar to that
used to value anything: this process requires
a charity to gather comparable data
regarding what similarly situated individuals
running similar organizations are paid.
17. Excessive Compensation
• There are numerous sources for obtaining
this comparability information. For example,
ERI Economic Research Institute,
www.erieri.com and GuideStar,
www.guidestar.org, are two excellent
sources.
18. Excessive Compensation
• For an insider’s compensation to be fair and
reasonable, there must be an approximately
equal exchange of benefits between the
charity and the insider so that the insider
does not receive an unreasonable or
unwarranted benefit from the charity.
• Bruce Hopkins, a nonprofit law expert, notes
that there are several factors commonly
considered to evaluate the reasonableness
of an insider’s compensation, including:
19. Excessive Compensation
• the compensation paid by similar
organizations, both exempt and taxable, for
equivalent positions in the same community
or geographic area;
• the charity’s need for the particular services
of the person in question;
• the uniqueness of the person’s background,
education, training, experience, and
responsibilities;
20. Excessive Compensation
• whether the compensation was approved by
an independent board of directors;
• the size and complexity of the charity’s
income and assets and the number of
employees the charity has;
• the person’s prior compensation
arrangements;
• the person’s job performance;
21. Excessive Compensation
• the relationship of the person’s
compensation to the compensation paid to
the charity’s other employees; and
• the number of hours the person spends
performing his or her job.
22. Excessive Compensation
• It is important to note that “total
compensation” paid by a charity to an insider
includes more than just the insider’s salary
or wages. It includes all other forms of
compensation the insider receives, such as
bonuses, commissions, royalties, fringe
benefits, deferred compensation, severance
payments, retirement and pension benefits,
expense allowance, and insurance benefits.
23. Excessive Compensation
• The bottom line is that an unreasonably
large or excessive salary paid by a charity to
an insider can be considered private
inurement ---- especially when the insider
also receives other forms of compensation
from the charity.
24. Excessive Compensation
• It is important to note, however, that very
large salaries and non-cash benefits paid to
certain key employees can often be
reasonable when one considers the
employee’s experience and expertise.
• For example, highly-skilled and experienced
physicians at a nonprofit hospital are
sometimes paid significantly more than the
hospital’s CEO and other executive-level
staff.
25. Excessive Compensation
• According to nonprofit law expert Bruce
Hopkins, a charity can avoid violating the
private inurement prohibition for
compensation it pays to an insider as long as
it is able to:
• describe fully and accurately all aspects of
the insider’s total compensation package;
• explain exactly how the charity determined
the insider’s total compensation package;
26. Excessive Compensation
• describe adequately and accurately the
insider’s duties and responsibilities;
• provide adequate documentation, such as
comparable salaries paid by similar
organizations, that show the reasonableness
of the insider’s compensation;
27. Excessive Compensation
• show through appropriate documentation
that the charity’s governing body approved
the amount of the insider’s compensation
and that the insider or someone related to
the insider did not participate in the process;
• show that the amount of the insider’s total
reportable compensation agrees with the
amount reported on the insider’s Form W-2
or Form 1099 to avoid an automatic excess
benefit transaction; and
28. Excessive Compensation
• show through appropriate documentation
that the insider’s use of any of the charity’s
assets, such as cars, real estate, credit
cards, laptops, or cell phones, for other than
fulfilling the charity’s exempt purposes, were
properly included in his or her compensation
and properly included in the insider’s Form
W-2 or Form 1099, again, in order to avoid
penalties for automatic excess benefit
transactions.
29. Intermediate Sanctions
• As was noted earlier, not all findings of
private inurement will result in revocation of
a charity’s tax-exempt status.
• Section 4958 of the Internal Revenue Code
provides for “intermediate sanctions” that
allow the IRS to impose significant taxes on
insiders, whom the applicable regulations
refer to as “disqualified persons”, when they
engage in excess benefit transactions with a
charity.
30. Intermediate Sanctions
• Therefore, Section 4958 gives the IRS the
authority to impose a sanction short of
revocation when revocation would be
inappropriate and/or unnecessarily harsh.
31. Intermediate Sanctions
• In an excessive compensation case, the
“excess benefit” is the amount by which the
total compensation paid by the charity to an
insider exceeds the reasonable value of the
services provided by the insider to the
charity.
32. Intermediate Sanctions
• So, for example, if a comparison of relevant
salaries shows that an insider is being paid
$100,000 more than comparable individuals
performing similar functions at similar
organizations and that there is no legitimate
reason for doing so, the amount of the
“excess benefit” received by the insider
would be $100,000.
33. Intermediate Sanctions
• Section 4958(a)(1) of the Internal Revenue
Code imposes an initial tax equal to 25
percent of the excess benefit. The insider in
this example would have to pay a $25,000
penalty to the IRS as well as make the
charity whole by repaying the $100,000, plus
interest.
34. Intermediate Sanctions
• If the insider does not make the charity
whole within the time frame set by the IRS,
Section 4958(b) of the Internal Revenue
Code imposes an additional tax equal to 200
percent of the excess benefit on the insider –
an additional $200,000 penalty in the current
example.
35. Intermediate Sanctions
• Section 4958(a)(2) of the Internal Revenue
Code also imposes a tax equal to 10 percent
of the excess benefit on any charity
manager, typically a board member, who
knowingly approved the excess benefit
transaction, unless his or her participation
was not willful. Again, in the above example,
the tax on any board member who knowingly
approved the unreasonable or excessive
salary would be $10,000.
36. Intermediate Sanctions
• It is important to note that participation
includes a board member’s silence or
inaction where he or she is under a duty to
speak or act as well as any affirmative action
by the board member. A board member is
not considered to have participated in an
excess benefit transaction, however, if he or
she opposed the transaction by, for example,
having his or her objection to the transaction
noted in the charity’s board meeting minutes.
37. Intermediate Sanctions
• In addition, a board member’s participation
will not normally be considered to have been
knowing within the meaning of Section
4958(a)(2) if there was full disclosure of all
relevant facts to an appropriately qualified
professional and the board member relied on
a reasoned written opinion of that
professional that the transaction in question
was reasonable.
38. The IRS’s Rebuttable Presumption
• To help charities comply with this sometimes
complex area of the law, the IRS has
established a “rebuttable presumption” that
payments to insiders are presumed to be
reasonable and not excessive if the following
steps were taken:
• the charity’s board obtained and relied on
appropriate comparability data prior to
making its determination;
39. The IRS’s Rebuttable Presumption
• the total compensation package was
approved in advance by the charity’s board,
and no individuals who had an actual or
potential conflict of interest with respect to
the compensation arrangement participated
in the deliberations; and
• the charity’s board adequately and
contemporaneously documented the basis
for its determination.
40. The IRS’s Rebuttable Presumption
• If the above three steps were taken, the IRS
may only rebut the presumption of
reasonableness if it can show that the
comparability data relied on by the charity’s
board was inappropriate.
• For charities with annual gross receipts of
less than $1 million, a board is considered to
have had appropriate comparability data if it
had data on compensation paid by three
comparable organizations in the same or
similar communities for similar services.
41. Conclusion
• In this age of significantly heightened
scrutiny of the charitable sector by state and
federal regulators, Congress, the media, and
donors, it is especially critical that a charity
take all necessary steps to ensure that it
doesn’t violate the private inurement
prohibition by paying one or more of its
officers or employees excessive
compensation.
42. Conclusion
• Not to do so can jeopardize the charity’s tax-
exempt status and/or result in the imposition
of significant financial penalties against
those determined to have been excessively
compensated as well as against those who
knowingly approved the excessive
compensation.
43. Conclusion
• Given the fact that the IRS has significantly
increased its enforcement efforts in this area
and recently assessed millions of dollars in
penalties for these types of violations – and
has indicated that it will be routinely including
excess compensation analyses in every
future audit it conducts – a charity that fails
to follow the basic steps suggested by the
IRS to ensure that the compensation it pays
insiders is reasonable and not excessive is
acting irresponsibly, and its directors may
44. Conclusion
• not be properly exercising their fiduciary
responsibilities.
• In addition, a charity’s failure to follow these
basic steps for determining compensation for
insiders will now be public information
because, starting in 2008, a charity must
indicate on its annual IRS Form 990 return
whether it followed these steps in
determining the compensation of its insiders
and other employees.
46. #npocomp
How the GuideStar Compensation Report
Can Help You To Determine Appropriate
Executive Compensation
Chuck McLean
GuideStar Vice President of Research
47. #npocomp
GuideStar Nonprofit Compensation
Report
• Uses IRS Form 990 compensation data
exclusively.
• Reports on both total compensation and
annual percentage increases for
incumbents.
• 2013 report includes 135,055 positions
drawn from 94,785 Form 990 filings of
501(c) organizations for fiscal year 2011
(other than private foundations).
48. #npocomp
Positions Reported On
• CEO/Executive Director (86,772)
• Top Administrative Position (6,527)
• Top Business Position (2,983)
• Top Development Position (2,498)
• Top Education/Training Position (743)
• Top Facilities Position (650)
• Top Financial Position (20,454)
• Top Human Resources Position (1,594)
• Top Legal Position (1,197)
• Top Marketing Position (914)
• Top Operations Position (6,575)
• Top Program Position (1,880)
• Top Public Relations/Communications Position (570)
• Top Technology Position (1,698)
49. #npocomp
Breakdown of Data
• Geography (National, State and MSA)
• Annual Expenses
• Gender
• Organization Type (NTEE Codes)
50. #npocomp
Statistics Reported
• Number of organizations in the category
• The average compensation for the
position across the category
• The 10th, 25th, 50th (median), 75th, and
90th percentiles of compensation for the
position across the category
51. #npocomp
Understanding the Statistics
• 10th percentile – 10 percent of the people reported
upon in the category made less than this amount,
and 90 percent made more.
• 25th percentile - 25 percent of the people reported
upon in the category made less than this amount,
and 75 percent made more.
• 50th percentile (median) - half of the people reported
upon in the category made less than this amount,
and half made more.
• 75th percentile - 75 percent of the people reported
upon in the category made less than this amount,
and 25 percent made more.
• 90th percentile - 90 percent of the people reported
upon in the category made less than this amount,
and 10 percent made more.
52. #npocomp
Understanding the Statistics
• The larger the number of organizations in the
category, the more reliable the data. The
average compensation is especially
susceptible to being skewed when there are
few organizations in the category.
• The closer together the average
compensation and the median
compensation, the more reliable the data.
58. #npocomp
In cases where a executive compensation
package is complicated and anticipated
total compensation is well above the
norm, The GuideStar Nonprofit
Compensation Report probably does not
provide sufficient information to satisfy
the requirements of a rebuttable
presumption. However, in most routine
cases, the report provides an adequate
“reality check” for setting executive
compensation.
59. #npocomp
For example, suppose that your organization:
• Provides various human services
• Has an annual budget of $5.3 million
• Is located in Boston, MA
• Is seeking an experienced executive director
Looking in the GuideStar report, you find 93 similar
organizations in Detroit, where executive director pay
was $121,967 at the 25th percentile, $151.725 at the
median, and $227,287 at the 75th percentile. It seems
reasonable, then, that target compensation would be
somewhere between the median and the 75th
percentile. If compensation is to be set significantly
higher than that, however, a more rigorous process is
likely required.
60. #npocomp
Rules to Live By
• The best source of compensation data that
the IRS has is Form 990 data.
• The more the compensation of executives
strays above Form 990 norms, the more likely
the IRS is to question it, thus
• The more rigorous the organization needs to
be in following proper procedures and
documenting the reasons for what might
appear to excessively high compensation.
61. #npocomp
Q & A
• What kind of compensation practices
can a for-profit engage in that a
nonprofit can’t?
62. #npocomp
Q & A
• How has the economic downturn
affected compensation practices at
nonprofits?
63. #npocomp
Q & A
• We are in a rural area and there are not
other nonprofits like us nearby. How
can we choose comparable
organizations for the purposes of
benchmarking compensation?
64. #npocomp
Q & A
• Is it OK to pay bonuses, and what kinds
of limitations are there?
65. #npocomp
Q & A
• How should compensation of board
members be determined?
66. #npocomp
Q & A
• What are the advantages and
disadvantages of using Form 990 data
for comparable compensation
information?