crimesnooper
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- Apr 12, 2011
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ML said that CA/GA was setting up their new foundation and would draw salaries from it as they had no other way of earning an income. Now, the way I understand that, it would mean that they will take as a salary whatever it takes to make an income to support their living high on the hog.
Are there any regulations on how much salary can be taken from a non-profit?
Does anyone know if the salary is reportable and/or taxable to the government?
ok this is kind of boring..but. All non profits with an income over a cetain dollar amount(I beleive it's $50,000, but not sure of this new update) must file a form 990 with the IRS. Within that document, which must be available to the public) they have to list the key employees making over $50,000.
Non profit accounting has to be broken down to three functional categories. Program/service(the reason you exist)
Management and Fundraising. While there is no law regarding salaries..it is generally considered acceptable for the breakdown to go 75% program and 25% devided between the last two. So what does this mean? If you have an income of $200,000 and you pay salaries of $100,000 you are already looking top heavy. These rules apply so the donor can see how much of thier donation actually goes to the mission and how much is spent on overhead. hope this helps. Also most non profit are incorporated and in most states I beleive if you go to the attorney general's web page they have info. But laws differ from state to state. The form 990 is a federal tax form and tax exempt status is(501c3 are detrmined by the federal gov.. Now anyone who resd this I understand if you need more coffee!