Mark Cowan, director of the Master of Science in Accountancy-Taxation Programs and professor, had his paper “Private Inurement and Intermediate Sanctions at Small Nonprofits,” accepted for publication at the Journal of Taxation.
In his article, Cowan explores the risks nonprofits face when insiders receive undue financial benefits. The IRS strictly prohibits using nonprofit funds for private gain and enforces intermediate sanctions, imposing taxes on those who approve excessive compensation or insider deals. He highlights common pitfalls for small nonprofits and emphasizes the need for clear policies, independent review and financial transparency to avoid penalties and maintain tax-exempt status. His insights serve as a crucial guide for nonprofit leaders navigating compliance challenges.