A reminder to check your School Building Funds’ compliance with the ATO requirements.coinjar

School and College Building Funds may attract the attention of the ATO’s compliance program this year.  The ATO develops and implements its compliance program annually, which identifies key areas for its compliance activities for the financial year.  The compliance program targets areas

As advised in Issue 1: Governance, during the course of advising charities and not-for-profit (NFP) organisations over many years, we have noticed some common issues that are important to our clients. Over the next few months, we will continue to run a series of short summaries of those legal issues that every charity and

Tax MoneySummary – Earnings derived from “new” activities that do not directly support the NFP organisations altruistic purposes are now subject to tax.

We thought it appropriate to provide an update on the proposals for taxation of unrelated business activities (commonly referred to as “UBIT”).

In the 2011-12 Federal Budget the government announced it will reform the tax concessions provided to not-for-profit (NFP) organisations to tax the earnings after 1 July 2011 generated by ‘unrelated commercial activities’ of NFP organisations.  Earnings derived from activities that do not directly support the NFP organisations altruistic purposes are now subject to tax.


Continue Reading Update: NFPs and UBIT (taxation of ‘unrelated business income’)

Woman confused while filling out tax formSummary – California couple donated real estate worth USD18 million to a charity but their failure to complete the Internal Revenue Service (IRS) form correctly lead to their loss of the entire associated tax deductions.

California couple, Joseph and Shirley Mohamed, donated real estate worth USD18 million to a charity in 2003 and 2004 but their failure to follow instructions on how to document their donations when completing the Internal Revenue Service (IRS) form lead to a loss of the entire associated tax deductions.

Joseph and Shirley Mohamed set up a charitable remainder trust and donated six (6) properties to it. Under the tax relief allowed to these types of trusts, the couple would have been entitled to USD4.2 million in immediate charitable contribution deductions and another USD15 million in future years.


Continue Reading California couple loses USD18 million over IRS form filling error