CFO, as well as the board, should
review the required federal and state
tax returns before they are submitted
to ensure that they are accurate, complete and filed on time. Additionally,
an organization that conducts outside
audits should consider separating
its audit and finance committees.
The audit committee should have at
least one member serve as a financial
and accounting expert. This committee member should act as a liaison
between the auditor and management
and monitor the nature and amount
of non-audit services provided by the
audit firm.
• Document retention: The document
retention policy also should include
electronic documents and voice
mail messages. If an investigation is
underway, there must be a halt to the
destruction of documents to avoid
charges of obstruction. The IRS encourages the governing body and any
board-authorized committees to maintain written minutes of their meetings
and any actions that are agreed upon.
Dos and Don’ts
of Setting
Prices
Gulf oil spill cleanup could be priced
higher than its 2006 T-shirt on saving
the American eagle, which was taken
off the “endangered species” list in
2007.
• Don’t feel that you have to charge all
buyers the same price: for example, an
association member vs. a nonmember
attending a seminar series.
• Do consider charging higher prices to
some customers and use the revenue
to subsidize others via discounts.
percent of its health insurance premium
expenses that qualify. The largest credit is
available to an organization with 10 or
fewer “full-time equivalent” employees.
However, even an employer with 50
employees — assuming most are part-time — may benefit. The 2010-44 form
may be found at www.irs.gov.
Does your organization agonize over
setting prices for its products? Next time
staff starts assigning or shifting price
tags, consider these dos and don’ts from
Chicago accounting firm Desmond &
Ahern Ltd.:
• Don’t use a one-size-fits-all formula
when setting prices, such as “cost plus
a 30 percent margin.”
• Do weigh what the market is willing to
pay on a case-by-case basis and base
price on the value of the product or
service — for example, an environmen-
tal organization’s 2010 T-shirt on the
Health Care
Tax Credit
The IRS on May 17 issued guidelines to
make it easier for tax-exempt
organizations to find out if they qualify for
the new health care tax credit and to
estimate the amount of that credit.
According to the Patient Protection and
Affordable Care Act, during 2010 through
2013 a small tax-exempt employer may be
entitled to a maximum credit of 25
