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News for Not-for-Profits

January 26, 2016
DOvesen - 2
Author: David Ovesen, Partner at LGT

Important to note highlights in the not-for-profit industry include a new guide on impact investing, a report showing that female leaders’ pay lags behind men’s at not-for-profits, Facebook’s new “Donate Now” button and an update on ABLE accounts.

 

Guide helps foundations explore impact investing

Three philanthropy groups (Exponent Philanthropy, Mission Investors Exchange and Arabella Advisors) have released a free guide to help foundations with small staffs navigate impact investing—making investments designed to generate measurable social or environmental benefits along with financial returns. Essentials of Impact Investing: A Guide for Small-Staffed Foundations is intended to boost awareness and the use of impact investing tools (for example, tools to measure and monitor investment performance, supply technical guidance to foundations and grant makers and expand the impact investing community). The guide demystifies the process of designing and implementing an effective impact investing strategy, offering advice, tools and real-world examples of impact investing by foundations with few or no staff. You can download the 162-page guide at https://www.missioninvestors.org/search/site/essentials.

 

Female leaders’ pay lags behind

According to a new report from GuideStar, salaries for women continue to lag behind men in comparable positions at not-for-profits of all sizes. The gap is most significant for female chief executives at organizations with budgets of $2.5 million to $5 million. Their median salary was 23 percent less ($111,183) than that of their male peers ($136,882). Women execs fared best at organizations with budgets of less than $250,000, making six percent less ($42,105) than their male counterparts ($44,592). More women headed not-for-profits with budgets greater than $10 million in 2013 compared to 2003. These gains, however, were offset by declines in smaller organizations. Even with the gain in larger organizations, only 18 percent of not-for-profits with budgets of more than $50 million had female CEOs in 2013. The report is based on 2013 Internal Revenue Service filings by approximately 105,000 not-for-profits.

 

Facebook offers “Donate Now” button

Facebook has introduced a new call-to-action option for not-for-profits to connect with people who care about their causes and encourages them to contribute. The “Donate Now” button can be placed on link ads and pages. Users will be directed to the not-for-profits’ website after viewing a pop-up stating that the organization isn’t endorsed by or affiliated with Facebook.

Several organizations have partnered with Facebook to test new features for not-for-profits. In addition to their general Facebook profile page, not-for-profit organizations will be able to launch a dedicated fundraiser page for a specific campaign to collect and track donations. Also, users will be able to donate, by providing payment information, directly through Facebook. Donors can share the cause they gave to and all shared posts will have a donate button also.

 

ABLE accounts can help individuals with disabilities

The Achieving a Better Life Experience (“ABLE”) Act of 2014 permits states to establish a new kind of account for individuals with disabilities. Families in the states that have passed legislation can make contributions to the ABLE accounts of eligible disabled individuals —without jeopardizing the beneficiaries’ eligibility for certain means-tested federal programs (subject to some limitations). Texas enacted ABLE legislation in 2015.

The accounts can be used to cover qualified expenses such as education, housing and transportation. Other uses include employment training and support, assistive technology, health care expenses, personal support services, financial management and administrative services and other expenses to enhance the person’s quality of life. The accounts generally can be opened for individuals with significant disabilities developed before age 26. Contributions to the account are treated as nontaxable gifts to the beneficiary. Although contributions won’t be tax-deductible, the accounts will grow tax-free. Withdrawals for qualified expenses will be tax-free and people contributing no more than $14,000 a year won’t owe gift taxes on their generosity. Contributions to the account may be made by any person (the account beneficiary, family and friends).

As of December 2015, no state is offering ABLE accounts because those that have passed ABLE bills are still in the process of developing their programs. States and the Internal Revenue Service are in the process of hammering out regulations for the accounts. Some states may have programs running in 2016 but others will not be ready until 2017. Texas ABLE savings accounts are expected to be available by mid-2016.

 

Seek the services of a legal or tax adviser before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt PLLC, call (214) 871.7500 or email askus@lgt-cpa.com.

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From → Not-for-Profit

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