1. New Jersey Education Foundation Partnership Member Meeting January 17, 2014

2. 1099s  Issue 1099-MISC for all non-employee compensation and rent Threshold for issuance is $600 Deadlines ○ Due to recipient by 1/31 ○ Due to IRS by 2/28

3. W-2s  Issue W-2s for all employees Deadline ○ Due to employee by 1/31 If any foundations have paid executive directors, make sure you know whether they qualify as an independent contractor (1099- MISC) or an employee (W-2)

4. Donor Acknowledgement Letters  Required for all donations > $250  Donors cannot claim tax deduction without “contemporaneous, written acknowledgement from the recipient organization”

5. Donor Acknowledgement Letters  Deadline: To be considered “contemporaneous”, donor must receive by the earlier of: ○ The date on which the donor actually files their tax return, or ○ The due date (including extensions) of the tax return ○ Best practice: issue as soon as possible after donation is received ○ General rule of thumb: issue by 1/31

6. Donor Acknowledgement Letters  Minimum requirements: Your organization’s name Amount of cash contribution A description of non-cash contribution Statement that no goods or services were provided by the organization, if applicable Description and good faith estimate of the value of any goods or services, if any Statement that goods or services, if any, that organization provided in return consisted entirely of intangible benefits, if applicable (such as a small gift)

7. Donor Acknowledgement Letters  Sample letter See attached

8. Policies  Calendar year-end is a good time to set aside for reviewing all relevant non-profit policies and have board members and/or employees sign their acknowledgement of them:

9. Policies  Common examples: Conflict of interest Whistleblower Document retention / destruction Joint venture Expense reimbursement Gift acceptance

10. Financial Check-Up  Calendar year-end is a good time for 6/30 year-end entities to perform a financial check-up so adjustments can be made, if needed, in the second half of the year:

11. Financial Check-Up  How are expenses trending as compared to budget? If they are trending over budget, identify why and determine if cuts can be made in second half of year.  How is revenue generation trending as compared to budget? If it is falling short of budget, begin identifying potential new revenue streams.

12. Financial Check-Up  What is the organization’s cash position?  Is projected cash flow sufficient to carry the organization for the second half of the fiscal year?  If not already done, develop a calendar of key payment due dates.  Look at liquidity and any potential “cash crunches” you can foresee.

13. Special Consideration for 12/31 Year-End Entities  Have year-end balance sheet and income statement generated.  Identify program accomplishments and calculate revenue and expense for each of the 3 largest.  Identify “key” employees  Gather names and address of contributors / grantors over $5,000

14. 990  For 12/31 year-end entities (and 6/30 year-end entities on extension): Refresh yourself with 990 filing rules: ○ Types 990-N (“Postcard”) -<$50,000 receipts 990-EZ (“Short Form”) -<$200,000 receipts and <$500,000 assets 990 (“Long Form”) ->$200,000 receipts or >$500,000 assets

15. 990  Deadlines 12/31 year-ends ○ Initial: 5/15 ○ 1 st extension: 8/15 ○ 2 nd extension: 11/15 6/30 year-ends ○ Initial: 11/15 ○ 1 st extension: 2/15 ○ 2 nd extension: 5/15

16. 990  Penalties for late filing / failure to file (for organizations with gross receipts <$1,000,000): $20 per day Maximum: lesser of $10,000 or 5% of organization’s gross receipts for that year