Cherry Bekaert: Not-for-Profit Industry Guidance

As colleges and universities navigate increasingly complex reporting obligations for payments made to  non-U.S. persons, having the right processes in place is critical. From filing requirements and deposit deadlines to documentation and reconciliation, institutions must take a coordinated approach to Form 1042 compliance.

In part two of this series, Melanie McPeak, Managing Director and Tax Leader of the Firm’s Not-for-Profit industry practice, is joined again by Tahira Nagda, Managing Director and Compliance & Provision Lead in Cherry Bekaert’s International Tax practice. Together, they discuss reporting requirements and practical considerations surrounding Form 1042 compliance for payments made to non-U.S.  individuals, including students, scholars and other foreign payees.

Listen to learn about:

• Key filing deadlines and deposit obligations
• Common compliance mistakes and audit triggers
• Reconciliation and documentation considerations
• Coordination across departments involved in the compliance process
• Process considerations that can help reduce risk
• Why Form 1042 compliance extends beyond tax

Cherry Bekaert’s Not-for-Profit and International Tax teams help higher education institutions navigate complex withholding and reporting obligations while strengthening compliance processes. For additional guidance or support, connect with your Cherry Bekaert advisor or reach out to our team.

Related Insights

• Podcast: 1042 Compliance Risks for Non‑U.S. Student Financial Aid: Part 1

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Compliance Risks for Non-U.S. Student Financial Aid: Part 1

As colleges and universities continue expanding their global reach, compliance requirements related to payments made to foreign students and scholars have become increasingly complex. From scholarship withholding rules to treaty documentation requirements, institutions must understand their responsibilities under Form 1042 reporting obligations.

In this episode of Cherry Bekaert’s Not-for-Profit podcast series, Melanie McPeak, Managing Director and Tax Leader of the Firm’s Not-for-Profit Industry practice, is joined by Tahira Nagda, Managing Director and Compliance & Provision Lead in Cherry Bekaert’s International Tax practice. Together, they discuss key compliance considerations surrounding Form 1042 reporting for payments made to non-U.S. students and scholars.

Listen to learn about:

• Form 1042 reporting requirements
• Who qualifies as a foreign person
• Tax treatment of scholarships and stipends
• Common withholding rates and treaty exemptions
• Required documentation, including Forms W-8BEN and 8233
• Honoraria and common payment classification issues
• IRS audit focus areas for higher education institutions
• Penalties and risks tied to noncompliance

This episode is part one of a two-part series on Form 1042 compliance for foreign students and scholars. Cherry Bekaert’s Not-for-Profit and International Tax teams help higher education institutions navigate complex withholding and reporting obligations while strengthening compliance processes.

View all podcast in this series

As colleges and universities continue expanding their global reach, compliance requirements related to payments made to foreign students and scholars have become increasingly complex. From scholarship withholding rules to treaty documentation requirements, institutions must understand their responsibilities under Form 1042 reporting obligations.

In this episode of Cherry Bekaert’s Not-for-Profit podcast series, Melanie McPeak, Managing Director and Tax Leader of the Firm’s Not-for-Profit Industry practice, is joined by Tahira Nagda, Managing Director and Compliance & Provision Lead in Cherry Bekaert’s International Tax practice. Together, they discuss key compliance considerations surrounding Form 1042 reporting for payments made to non-U.S. students and scholars.

Listen to learn about:

• Form 1042 reporting requirements
• Who qualifies as a foreign person
• Tax treatment of scholarships and stipends
• Common withholding rates and treaty exemptions
• Required documentation, including Forms W-8BEN and 8233
• Honoraria and common payment classification issues
• IRS audit focus areas for higher education institutions
• Penalties and risks tied to noncompliance

This episode is part one of a two-part series on Form 1042 compliance for foreign students and scholars. Cherry Bekaert’s Not-for-Profit and International Tax teams help higher education institutions navigate complex withholding and reporting obligations while strengthening compliance processes.

View all podcast in this series

In today's complex financial landscape, effective endowment management is more critical than ever to provide a stable source of funding that supports long-term missions. In this episode of Cherry Bekaert’s Not-for-Profits podcast, Jason Sturdevant, NFP Accounting Advisory Senior Manager, is joined by Blakeley Richard, Co-host and NFP Accounting Advisory Manager, to give an overview of endowments and how they can help an organization drive success.

Listen to this episode to learn about: 

• Common misconceptions with endowment accounting
• Definitions of significant terms for endowments
• Frequent endowment accounting mistakes and errors
• Overview of underwater endowments, fund accounting and policy needs
• Consequences for endowment mismanagement
• Endowment oversight responsibilities
• Best practices and recommendations for accounting for endowments

When endowments are managed effectively, they can provide significant resources to enable organizations to carry out their mission well into the future. However, mismanagement can result in significant time and resource costs. 

Cherry Bekaert's Not-for-Profit Accounting Advisory team offers comprehensive advisory services that enables nonprofits to overcome challenges and maximize the benefits that endowments can provide. Our knowledge in crafting tailored solutions allows institutions to align their financial strategies with their long-term goals and mission-driven objectives.

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One of the most powerful yet often overlooked dynamics in the not-for-profit world is the alignment between finance teams and fundraising teams. While their day-to-day responsibilities may seem worlds apart, their collaboration is essential for mission success.

In this episode of Cherry Bekaert’s Not-for-Profits podcasts, Jason Sturdevant, NFP Accounting Advisory Manager, is joined by co-host Blakeley Richard, NFP Accounting Advisory Manager, to discuss the critical alignment between finance and fundraising teams. Together, they discuss how collaboration across these functions can enhance donor relationships, improve reporting accuracy and support more strategic decision-making within not-for-profit organizations.

Listen to this episode to learn about:

• The challenge of aligning finance and fundraising in not-for-profits and why it matters
• Consequences of misalignment with real-world examples
• What good alignment looks like
• Practical tips for improving alignment
• How Cherry Bekaert’s CFO Advisory team is helping with this challenge
• Resources for further learning

When these teams operate in sync, organizations gain not only financial clarity but also strategic momentum that fuels sustainable growth and deeper impact. Cherry Bekaert's team of professionals is equipped to offer comprehensive advisory services that address the needs of not-for-profits. Their knowledge in crafting tailored solutions allows institutions to align their financial strategies with their long-term goals and mission-driven objectives. Contact us today.

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In today's complex financial landscape, managing an endowment effectively is more critical than ever to provide a stable source of funding that supports long-term missions.

In this episode of Cherry Bekaert’s Not-for-Profits (NFP) podcasts, Jason Sturdevant, NFP Accounting Advisory Manager, is joined by co-host Blakeley Richard, NFP Accounting Advisory Manager, to discuss endowments in the context of educational organizations like private universities or K-12 schools. This episode also covers other information that can benefit any organization looking for best practices regarding their endowments. 

Listen to learn about:

• Endowments and Personnel Transition 
• K-12 Cleanup 
• Endowment Overhaul
• Closeouts
• Navigating Endowment Challenges
• How Cherry Bekaert Can Assist 

Cherry Bekaert's team of professionals is equipped to offer comprehensive advisory services that address the endowment needs of not-for-profits. We ensure that endowment funds are not only preserved but also poised for growth. Their knowledge in crafting tailored solutions allows institutions to align their financial strategies with their long-term goals and mission-driven objectives. Contact us today.

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Across the Not-for-Profit sector, accounting and finance teams can often find themselves stuck in crisis mode, without a way forward or resources to solve their problems. At other times, teams can navigate the status quo, but growth or improvement is out of the question. In either instance, NFPs can find themselves in the common position of being stretched too thin. What solutions are out there?

Jason Sturdevant, NFP Accounting Advisory Manager, and co-host Blakeley Richard, NFP Accounting Advisory Senior Associate, join forces to discuss some examples of NFP accounting teams that were struggling to juggle day-to-day needs with broader compliance or strategic goals. Jason and Blakeley will also highlight a couple instances in which NFPs leveraged Cherry Bekaert’s Accounting Advisory team to overcome staffing challenges, complex accounting matters and organizational barriers to move toward thriving.

As part of Cherry Bekaert’s Not-for-Profit podcast series, this episode covers:

• Navigating the challenges of turnover in key finance positions
• Working through common trouble areas for colleges and universities
• Tackling technically complex tasks with limited capacity
• Creating tools for challenging accounting areas
• Developing plans for strategic growth for finance teams
• Opening up resources for training and team readiness
• Working with Cherry Bekaert’s NFP advisory team on a wide array of projects
• Outcomes for specific organizations that worked with the NFP advisory team

Cherry Bekaert’s Not-for-Profit Accounting Advisory team manages all types of complex technical accounting areas, whether that’s assisting with year-end close, supporting transition of personnel or guiding your finance team through organizational changes. If you have any questions specific to your business needs, Cherry Bekaert’s Not-for-Profit Advisory team is available to discuss your situation with you.

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Not-for-profits (NFP) across the country often struggle with their accounting processes due to outdated software, spreadsheets and manual data entry. Sage Intacct, a cloud-based platform, can simplify accounting processes so not-for-profits can focus on the business of helping others. 

In this episode of our NFP podcast series, we hear about the power of Sage Intacct from Kristen Jenei, Managing Director at Cherry Bekaert, and Hina Babar, a Director at Cherry Bekaert.

Tune in to learn how Cherry Bekaert can help implement Sage Intacct, and discover how the platform can help your organization: 

• Gain visibility into key data
• Stop manually entering financial information
• Reduce accounting mistakes
• Streamline processes
• Gain more time for tasks important to your not-for-profit

As more guidance comes forth, we are here to provide regular updates, thought leadership, current and future state consulting, change management advisory and ready to stand up services. We have solutions tailored for you.

Learn more about Cherry Bekaert’s Sage Intacct solutions

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On campuses around the country, the name, image and likeness (NIL) policy is revolutionizing the way student-athletes can obtain benefits while attending a college or university. As of July 2021, student-athletes can enter NIL deals if they comply with state law and the NCAA’s rules. Essentially, NIL allows college athletes to monetize their personal brand by profiting from their name, image and likeness through various opportunities such as endorsements, sponsorships, social media posts and more. 

In the first episode of our NIL podcast series, Anthony Kocheron, an associate in Cherry Bekaert’s Government and Public Sector Advisory practice, is joined by Mit Winter, an attorney at Kennyhertz Perry who specializes in college sports law and has an extensive knowledge of NIL and its effects on college athletic departments. Tune in to learn more about:  

• An introduction to the world of NIL, including:
  • Collectives
  • Employment Status
  • Governing Bodies
• Factors that led to NILs current state in college athletics
• How college and university athletic departments are navigating the challenges of NIL
• Observations of what athletic departments are and aren’t doing when it comes to change in college athletics
• How athletic departments are preparing for the future 
• Benefits of having comprehensive polices and procedures in place within an athletic department
• One key takeaway about NIL

Due to the ever-evolving NIL space, and the current and upcoming compliance challenges universities are facing, Cherry Bekaert has dedicated a team of professionals to track all there is to know about NIL. As more guidance comes forth, we are here to provide regular updates, thought leadership, current and future state consulting, change management advisory and ready to stand up services. Whether you are a Power Five or sub-division school, we have solutions tailored for you.

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Section 179D Energy-Efficient Commercial Buildings Deduction (section 179D) is an energy tax deduction created to incentivize the adoption of clean solutions in commercial buildings. Originally intended for the commercial industry, not-for-profit organizations are now able to take advantage of this notable tax deduction if they invest in energy-efficient improvements.

Since not-for-profits are tax-exempt, they can allocate the energy tax incentive to a taxpaying entity working on the structure renovations. Before applying for the Section 179D tax credit, it’s imperative to understand the solutions that make the most sense for your building and the potential deduction allocations you may be eligible to receive.

Host Amy Dosik, Not-For-Profit Tax Practice Leader at Cherry Bekaert, is joined by special guests Martin Karamon, Tax Credits and Incentives Advisory Leader, Ed Vettel, Tax Credits and Incentives Senior Associate, and Andre Kohn, Energy Tax Credits and Incentives Senior Associate. Together they discuss the Section 179D energy efficient commercial building deduction and how not-for-profits and schools can benefit.

As part of Cherry Bekaert’s Not-For-Profit podcast series, and the second episode in the energy tax credits and incentives mini-series, this episode covers:

• Section 179D background
• Determining eligibility for Section 179D 
• Section 179D benefits 
• Enhanced deduction requirements
• Maximizing Section 179D opportunities

Cherry Bekaert’s Energy Tax Credits and Incentives team assesses the eligibility of your organization to receive business energy tax credits and incentives, so you can receive the maximum monetary benefit allotted. If your organization makes investments in clean energy advancements, then you may benefit from energy efficiency federal, state and local energy tax credits and incentives. If you have any questions specific to your needs, Cherry Bekaert’s Not-For-Profit group is available to discuss your situation with you.

Related Resources:

• Podcast: Direct Pay for Not-for-Profits
• Factors to Consider When Seeking Cost Segregation and Section 179D Study Service Providers
• A Comprehensive Overview of Energy Tax Credits Under the Inflation Reduction Act of 2022

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