Why Specialist Expertise for Nonprofits Matters with Mike Payne
Description
Nonprofit accounting and legal services require specialized expertise that most professionals lack. On this episode of Nonprofit Counsel, host May Harris speaks with Mike Payne, founder and CEO of Boss Advisors, about why combining these disciplines creates better outcomes for charitable organizations. Mike shares his journey from Ernst & Young's tax-exempt organization practice to building an innovative firm that integrates nonprofit CPA services with legal counsel. They discuss critical topics, including Form 990 preparation, board governance, conflict of interest policies, and why professionals should never dabble in nonprofit tax compliance. This conversation explores the benefits of combining legal and accounting services for nonprofits, while avoiding costly mistakes that could jeopardize their tax-exempt status.
What You'll Learn in This Episode:
Why nonprofit accounting and legal services should be integrated rather than siloed to prevent costly compliance mistakes
The critical importance of specialized expertise in tax-exempt organizations and why professionals should never dabble in nonprofit law
How to establish proper board governance, including required training, conflict of interest policies, and articles of incorporation reviews
Best practices for Form 990 preparation and understanding the unique disclosure requirements that differ from traditional business tax returns
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TIMESTAMPS:
00:00 Mike Payne's journey from law school to Ernst & Young's tax-exempt organization practice and founding Boss Advisors
05:55 Combining nonprofit accounting and legal services eliminates the client middleman problem in nonprofit tax compliance, and it represents the intersection of law and tax
13:17 The dangers of practitioners dabbling in nonprofit law without specialized expertise in Form 990 preparation
19:16 Discussion of essential board governance training, including conflict of interest policies and required board member education
22:52 Ensuring articles of incorporation and bylaws align with actual organizational activities and charitable purpose
KEY TAKEAWAYS:
Nonprofit accounting and legal services must be integrated to avoid putting clients in the awkward position of translating information between their accountant and lawyer, which often results in missed critical details affecting nonprofit tax compliance.
Practitioners should never dabble in tax-exempt organizations' work—whether lawyers or CPAs—because the specialized knowledge required means mistakes can result in excise taxes, intermediate sanctions, or complete loss of tax-exempt status for the organization.
Every board governance structure needs the ABCs plus D: articles of incorporation, bylaws, conflict of interest policy, and annual disclosure statements that board members must review and sign to ensure proper understanding and compliance.
ABOUT THE GUEST:
Michael Payne, JD, CPA, is a licensed attorney and Certified Public Accountant with over 20 years of experience serving business owners, individuals, and nonprofit organizations across the nation. As Founder and CEO of Boss Advisors, Mike leads the Advisory Practice, specializing in entity structuring, tax strategy, and compliance solutions that maximize efficiency and savings for clients. Having worked with large CPA and law firms before starting his own practice, Mike combines Big Four expertise with personalized service for local businesses and nonprofit organizations across the nation. A proud Arizona native and father of five, Mike holds a bachelor's degree in Accounting from NAU and a Juris Doctorate from ASU's Sandra Day O'Connor College of Law.
RESOURCES MENTIONED:
For Profit Law Group - Website
United States
