The Impact of Salary Caps on NYS Nonprofits

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 18. April 2014 07:40
In New York State, when the state legislature failed to act to place caps on executive salaries in nonprofits providing state-funded human services, the state implemented regulations to achieve the same goal. However, State Supreme Court Judge Thomas Feinman of Nassau County rejected those caps in a recent decision on a lawsuit by the Agencies for Children's Therapy, a non-profit that represents more than 30 agencies that provide early intervention, prekindergarten, special education and other services to children throughout the state. [More]

Should Nonprofits Be Concerned about IRS Review of Executive Compensation?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 4. April 2014 08:55
Last week, the IRS published data on the number of information returns filed by tax-exempt organization in 2012 – 771,675 to be exact – and the number of those returns that were subjected to further examination (meaning the organization was contacted by the IRS for further information, clarification, or a full audit). The number of organizations involved in such an examination of their 2012 returns by the IRS in FY 2013 was 2,882. Most were Forms 990 and 990-EZ (2,744) and the remainder were Forms 990-PF, with a few other forms filed by political organizations and trusts. So, does that low percentage of scrutiny by the IRS mean that nonprofits should have no worries about executive compensation levels? [More]