Like for-profit businesses, accurate financial and tax reporting requires sound inputs, one of which is the value of the enterprise and its assets. This makes securing accurate not-for-profit valuation services instrumental in adhering to the accounting requirements and tax laws in your jurisdiction.
These are just a few types of organizations that hire Appraisal Economics to perform a not-for-profit valuation:
- Schools, Colleges & Academies: From sophisticated laboratory equipment to leasehold improvements, and other non-monetary contributions, donations to educational organizations need to be valued so that your organization’s accounting records are accurate and the donor receives the proper tax deduction when appropriate. In additional to tangible donations, there are laws governing how federal grants and similar contributions need to be balanced financially.
- Charities: Because establishing Charitable Remainder Trusts (CRT) often entails estate and income tax considerations, the value of stocks and other contributed assets should be appraised. It’s important to contact the IRS to determine if your organization meets the requirements for 501(c)3 status.
- Foundations: A not-for-profit valuation of your foundation is critical in securing and maintaining preferential tax treatment. If you manage a foundation that is bound by certain Treasury laws, it’s important to find out if you are required to distribute annually a specific percent of total assets. This makes valuation of not-for-profit organizations vital, so that you know how much to distribute.
- Healthcare Providers: As organizations in this category, such as healthcare providers and medical insurers, convert to for-¬profit status, there are unique challenges to restructuring properly. Depending on which jurisdiction your organization is based in, you may be required to complete a not-for-profit valuation before converting to for-profit status. It’s recommended that you speak with members of your state’s attorney general office to determine the mandatory steps.
Professional Not-For-Profit Valuations
Put the experience and expertise of Appraisal Economics to work for you and your organization today. From certified appraisers to our staff of engineers, we employ industry professionals that have appraised a wide range of organizations. Contact us and take the first step towards an accurate valuation of your not-for-profit today.