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Six-month Form 990 extension soon to be a reality

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Six-month Form 990 extension soon to be a reality

Nonprofits have received some welcome tax news from an unlikely source — the federal highway funding bill. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 modifies several due dates for tax returns, including the Form 990 annual information returns.

Currently, nonprofits can obtain a three-month automatic extension for the form by filing Form 8868 before the original due date (the 15th day of the fifth month after the end of your nonprofit’s accounting period). For an additional (not automatic) three-month extension, though, an organization must file Form 8868 again and include an explanation of its “reasonable cause” for — or why it deserves — an extension. Beginning with the 2016 returns filed in 2017, the IRS will automatically grant a six-month extension when a not-for-profit submits a timely Form 8868.

EEOC considers expanding retaliation protections

The U.S. Equal Employment Opportunity Commission (EEOC) recently released proposed guidance addressing retaliation under federal employment discrimination laws. Retaliation, the most frequently alleged type of charge filed with the EEOC, accounted for nearly 43% of 2014 charges against private employers. The guidance, which would include nonprofits, expands the scope of employee activity protected from employer retaliation. It also expands the definition of “adverse employment action” that would constitute retaliation to include reprimands, threats, undesirable transfers or work assignments, and negative evaluations.

GuideStar launches revamped nonprofit profiles

The nonprofit profiles on GuideStar have undergone a major redesign to present key performance data in a more user-friendly format. The new profiles emphasize programs and results, along with financial and organizational metrics to facilitate easy comparison. The profiles now include interactive data displays, and the traditional pie charts depicting overhead costs have been replaced with liquidity ratios and figures showing the organization’s months of cash on hand. GuideStar says the new features make it easier for users to understand multiyear trends in an organization’s financial performance, stability, revenue model and grant support.

YouTube adds donation option

YouTube has begun rolling out free digital “donation cards” to U.S.-based users who create videos on the site. Viewers of videos with the cards can use credit cards to make online donations directly to designated nonprofits. The video creator (whether a nonprofit or just a supporter or fan of the organization) simply adds a donation card to the video and picks a nonprofit. Creators can choose any U.S. 501(c)(3) public nonprofit, and the designated organization will receive 100% of the money donated. YouTube’s parent company Google covers the processing costs and will provide donors with receipts for tax purposes.

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© 2016 Tait Weller, All Rights Reserved    Philadelphia, PA   215.979.8800    New York, NY   212.907.6496    Iselin, NJ   732.634.7940

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