Weaver: Beyond the Numbers

In this episode of The Alternative Edge podcast, Weaver investigates the experiences and impacts of female participation and leadership in venture capital. Sindhu Rajesh and Sonali Vijayavargiya discuss women’s transformative role in the investment landscape and how this demographic drives efficiency, productivity and sustainability in foundational industries.

Key Points:

• There is a critical need for diversity of thought in venture capital.

• Female fund managers face a myriad of challenges, including access to capital and the undeniable pay/wealth disparity.

• Studies show that female representation leads to economic growth, suggesting the need for demographic engagement.

This episode features a candid conversation between Sindhu Rajesh, audit partner at Weaver, and Sonali Vijayavargiya, general partner of Augment Ventures, highlighting the untapped potential of women in venture capital. Despite representing only 4.9% of VC managers, female leaders deliver twice the revenue per investment compared to their male counterparts.

“You need diversity of thought. You need to get individuals to bring their lived experience into these startups and really create a solution that is meaningful and impactful,” Sonali shares.

This episode is not only a testament to the strides made by women in venture capital but also an urgent call to address the persistent challenges they face, including the critical gap in access to capital and societal burdens.

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©2023

In this episode of Location3, a Weaver: Beyond the Numbers podcast, Howard Altshuler and Aaron Grisz delve into the dynamic world of Fort Worth real estate with guests Will Northern and Michael Crain from Northern Crain Realty. They discuss the evolution of the Fort Worth area, the impact of real estate development on the community, and share insights into the future of the city's landscape.

Key Points:

• Urban drilling during the Barnett Shale boom led to complex real estate transactions and contentious land assemblages in Tarrant County.

• Tax Increment Financing (TIF) helped revitalize Fort Worth’s older buildings, contributing to the city’s development and preserving its historic character.

• Northern Crain Realty’s expanded services include commercial brokerage and property management.

This episode provides an insightful exploration of Fort Worth's real estate sector, highlighting the experiences of Northern Crain Realty. The discussion sheds light on various aspects of real estate development, including the balance between residential, commercial, and property management, and how these facets contribute to the city's development and community enrichment.

"It's not easy to be a real estate developer whatsoever,” Northern remarks. “There's a lot of elements at play.”

"You have to really figure out what is your passion... It's not just about being involved because you're always looking for business," Crain adds.

Subscribe and listen to future episodes of Location3, a Weaver: Beyond the Numbers Podcast, on Apple Podcasts or Spotify.

©2023

Explore the evolving landscape of New York City's real estate and alternative investments with Brandon Cooperman and Howard Altshuler in this insightful episode of Weaver: The Alternative Edge. Dive into the current trends, market forecasts, and strategic growth in the real estate sector.

Key Points:

• NYC’s Office Real Estate market is a tale of haves and have-nots

• Rising interest rates signal a cautious approach to leverage in real estate deals, while Local Law 97 pushes for greener building operations and retrofitting

• The integration of investment funds and real estate expertise fuels growth in alternative investment strategies

In this engaging discussion, Brandon Cooperman and Howard Altshuler delve into the nuances of New York's real estate market. They discuss the bifurcation of the market into new, high-demand properties versus older offices, the potential transformations to multifamily spaces, and the exciting growth prospects for alternative real estate assets like self-storage and manufactured housing.

Altshuler expresses anticipation for the BizNOW State of the Market Forecast: “I'm looking forward to hearing what people have to say about that... and seeing who we can meet and make some networking connections with.” This quote encapsulates the essence of the podcast, emphasizing the importance of staying informed and connected within the industry.

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©2023

In this episode of The Alternative Edge, a Weaver: Beyond the Numbers Podcast, host Becky Reeder, an audit partner and co-leader of the alternative investments practice at Weaver, engages with Sindhu Rajesh, an Alternative Investment Services Partner with Weaver. They unpack the complexities of venture fund valuations, offering critical insights into industry dynamics and best practices for fund managers approaching year-end valuations.

Key Points:

• Be proactive with year-end investment valuations, and discuss your approach with the auditors during interim testing.

• For stale investments, consider progression towards milestones, company’s financial situation and secondaries market transactions to determine valuation. Don’t just default to keeping it at last funding round automatically.

• Auditors can provide valuable insights based on knowledge and expertise of clients who encounter similar challenges, so use them as a resource.

As fund managers navigate the choppy waters of venture fund valuations, Becky and Sindhu emphasize the need for proactive communication and thorough analysis. Sindhu advises managers to scrutinize portfolio investments lacking recent financing activity and to seek more than just the last-known financials. The discussion also pivots to understanding the valuation caps of current funding rounds and ensuring adequate cash flow for portfolio companies.

“Request financial, non-financial information... Don't just default to cost or last round just because you've not had any information about the company,” Sindhu asserts. This statement encapsulates the podcast’s theme: the critical nature of diligent, informed valuation practices in venture fund management.

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©2023

In this Weaver Beyond the Numbers episode, Steven Scarborough, Mayur Naik, and Brandon Hayes review the implications of the Wayfair vs. South Dakota case. As e-commerce continues to dominate the market, understanding the nuances of sales tax and economic presence becomes crucial for businesses.

Key Points:

• The Wayfair vs. South Dakota case determined that companies can have an economic presence, not just a physical one, obligating them to collect sales tax

• Companies must be aware of varying state thresholds and definitions of nexus, impacting both sales and filing obligations

• Businesses can address potential noncompliance through voluntary disclosure agreements with states, often settling penalties and interest

The Wayfair vs. South Dakota case marked a significant shift in the perception of businesses regarding their economic presence in a state. No longer is it just about physical presence; the Supreme Court’s ruling emphasized the importance of economic activity. This change has broad implications, especially for businesses operating online. With e-commerce on the rise, understanding these nuances is essential for compliance and avoiding pitfalls.

As Naik explains, “In 2018, the company Wayfair brought a case against the state of South Dakota... It's no longer mandatory that you only have a physical presence of store location or people. You can now also have an economic presence in our state.” Hayes elaborated on the challenges, stating, “I think where a lot of companies end up getting caught up is that the ones that are educated on the decision believe that economic nexus has replaced physical nexus, and it’s just not true.”

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©2023

In this episode of Weaver: Beyond the Numbers, Shane Stewart, Mayur Naik, and Tony Burgess look into direct pay permits, their potential benefits, and the intricacies of maintaining them. As companies explore ways to optimize their tax functions, this conversation sheds light on the potential savings and responsibilities of direct pay permits.

Key Points:

• Direct Pay Permits allow taxpayers to pay state taxes directly, leading to potential tax savings

• Benefits & challenges of obtaining a direct pay permit highlight a significant local tax savings, balanced against stringent qualifications and regular audits

• The Implementation process involves strategic vendor selection after acquiring a permit and leveraging expert assistance for compliance and audits

Direct pay permits allow businesses to take control of their tax functions. They can shift the responsibility from vendors to an in-house mechanism, leading to more efficient management of exemptions and, often, considerable local tax savings. For instance, in Texas, businesses can switch from paying taxes based on their vendor’s place of business to their own in potential jurisdictions with lower tax rates.

Naik highlights, “The most important benefit [of a direct pay permit] is just getting control of your tax function... It helps you manage your exemptions much more efficiently.” Burgess adds on potential savings, “We have taxpayers that they're buying strings of pipe that are $15 to $20 million for multiple wells, and they're getting an instant up to $2 millions of savings just off of a single invoice.”

Subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.

©2023

In this riveting edition of Weaver: Beyond the Numbers, host Brandon Hayes sits with Weaver’s Tony Burgess and Steven Scarborough to discuss sales and use tax. Uncovering the multiple avenues available for businesses that might have overpaid on their taxes, this episode provides insights and actionable advice for companies navigating this complex landscape.

Key Points:

• Companies often overpay taxes and need methods to rectify these errors

• Four approaches to reclaim overpayment are: direct state refunds, vendor refunds, tax return adjustments, and using credits during audits

• Some states mandate vendor-first refunds. However, issues like poor vendor relationships can necessitate alternatives like “Assignment of Refund”

While many are familiar with the negative consequences companies face when underpaying sales and use taxes, only some are aware of the frequent overpayment situations that businesses encounter. Scarborough outlines four ways companies can address these overpayments, from direct refund claims with the state to leveraging ongoing audits to offset balances.

Burgess dives into the intricacies of each method, highlighting the potential challenges and advantages businesses might face. Especially significant is understanding how aggressive a company might want to be when pursuing these overpayments and the various implications of each approach.

Scarborough adds, “In most cases, they don’t want you just to put it as a credit on your return and let it wash into the current tax. Some states specifically need you to line it out on a section of the return. Some states will have you actually amend the prior period return.”

The world of sales and use tax is intricate and layered with complexities. Yet, by being proactive and informed, businesses can confidently navigate this realm. For deeper insights into the financial world and expert takes on pressing topics, subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.

©2023

For the first episode of Weaver’s “Not-For-Profit” podcast series, the company’s Tax Partner, Kirby Ross, and Assurance Partner, Jackie Gonzalez, discussed unrelated business income tax (UBIT) and functional expenses in the context of nonprofit organizations. Kirby explained that a UBIT is a tax levied on income generated by a nonprofit through activities unrelated to its exempt purpose. The goal of UBIT is to create a level playing field between nonprofits and for-profit businesses, preventing unfair competition.

Ross and Gonzalez also focused on …

• UBIT explained: Tax on nonprofits for income from unrelated activities, aim to create fair competition with for-profit businesses.

• Identifying and managing UBIT: Nonprofits should examine revenue streams, understand triggers, and strategically plan to address potential taxes.

• Functional expenses discussion: Focus on accurate allocation between program and supporting services, with consistent policies and good stewardship for donor confidence.

Some examples of UBITs include advertising revenue and debt-financed rental income. Auditors play a crucial role in identifying UBITs by examining an organization's revenue streams, particularly miscellaneous income. Although paying UBITs might seem unfavorable for a nonprofit, it can still have advantages for an organization to engage in lucrative ventures and pay taxes on the income generated, as long as the net proceeds are used for its exempt purposes.

Another topic discussed in the conversation was the statement of functional expenses. Gonazlez and Ross talked about the importance of accurately allocating expenses between program and supporting services. Consistency in allocations and having clear policies are crucial for both auditing and tax purposes. Rating agencies like Charity Navigator assess nonprofits based on their expense allocation, with higher ratings going to organizations that allocate a larger percentage of their expenses to program services.

A good target for a highly functioning nonprofit is to allocate less than 15% of its expenses to supporting services, with the rest going to program services. A lower percentage allocated to program services could have negatively impacted the organization's reputation and deterred potential donors. The conversation concluded with both speakers acknowledging the importance of auditors in helping nonprofits accurately report their expenses and assess their UBIT exposure.