Newsbits
What's a volunteer worth?
A volunteer's time on an hourly basis
was worth an estimated $17.19 in 2003, a 45-cent increase from 2002. That's
according to an updated report from Independent Sector, an advocacy group
for not-for-profits.
The estimated value of volunteer time provides a uniform
way for volunteer managers, not-for-profit executives, government agencies
and others to quantify the budgetary significance of volunteer help.
The
hourly value, updated annually by Independent Sector, is based on the average
hourly earnings of all nonagricultural workers as determined by the U.S.
Bureau of Labor Statistics. Independent Sector takes this figure and increases
it by 12% to represent estimated fringe benefits.
For more statistics on
the value of volunteerism, including a breakdown by state, visit the group's
Web site, www.independentsector.org.
Automatic excess benefit transactions
targeted in exams
According to the IRS, automatic excess benefit transactions
are the biggest enforcement area for taxexempt organizations. These
transactions occur when an exempt organization provides an economic benefit
to a disqualified person and the benefit is not treated as compensation under
Internal Revenue Code Section 4958. Generally speaking, a disqualified person
is someone who can exercise "substantial influence" over an organization's affairs, such as
a board member or key employee.
The key to reducing penalties in this area
is to disclose the transaction before an IRS examination, the
agency says. It recommends contracts between exempt organizations and disqualified
persons and says that all economic benefits given to these individuals should
be specifically identified in the contract.
Taxpayers can request a technical
advice memorandum (TAM) from the IRS as needed if questions pertaining to
an audit in this area arise. The IRS will also publish several TAMs related
to this issue by year end, and it plans to send more than 1,000 letters to
taxpayers as part of a compliance initiative.
Small businesses give charities
discounts, donations
Most U.S. small businesses give discounts and donations
to not-for-profit customers and participate in annual charity fund-raisers,
according to a recent Web survey by dollardays.com, an online wholesaler
and closeout company serving small businesses and not-for-profits.
But one
means of charitable giving is disappearing. According to the survey, you're
less likely to see a coin box near retail outlets' cash registers. Just
23% of small businesses reported helping charities raise funds in this way.
Among the survey's other highlights:
- 60% of small businesses
offer discounts to not-for-profit clients.
- 52% are involved in annual charitable
fund-raisers.
- 63% of small business owners donate cash to not-for-profits,
while32% make in-kind contributions.
- 53% contribute
$500 or more to charity annually.
- 77% make regularly timed charitable contributions.
These publications are distributed with the understanding
that the author, publisher and distributor are not rendering legal,
accounting or other professional advice or opinions on specific facts
or matters, and, accordingly, assume no liability whatsoever in connection
to its use.
