NON PROFIT

CHARITIES AND NOT FOR PROFIT ENTITIES

We work closely with Charities and Not for Profit entities to ensure proper compliance and return presentation.

IRS Updates and News

The final regulations for the 990-N, the electronic post card filing for small nonprofits have been released. No changes from the draft version, but it should be noted that organizations that are required to file the form and fail to do so for three consecutive years will automatically lose their tax-exempt status. Revocations will begin in May 2010.

The latest Form 990 filing tip is all about related organizations and schedule R. What is a related organization you ask? From the IRS:

Related organizations are organizations that stand in a parent/subsidiary relationship, brother/sister relationship, or supporting/supported organization relationship. Supporting and supported organizations are defined in section 509(a)(3) and 509(f)(3). Determination of the first two relationships depends on a definition of control set forth in the Form 990 instructions glossary and Schedule R instructions. The definition of control depends on whether the organization has owners or persons with beneficial interests.

Finally, the IRS wants us to make sure we handle donated property and non-cash contribution transactions the right way. Here is a page with several more links that might be of interest to any organization that receives non-cash contributions.

Bookkeeping: We offer bookkeeping services to help you meet your day-to-day financial needs (including general ledger, A/P, A/R, reporting and payroll) in a knowledge-able, professional and cost-effective way. Our bookkeeping services are grounded in deep knowledge of nonprofit financial regulations.

Financial Systems Analysis and Development: We can evaluate your financial system’s functions and efficiency; recommend and implement tailored solutions; train your staff to use the new or upgraded system; and turn the system back over to you with ongoing support.

Outsourced CFO: A CFO package may include providing quality control for accounting functions; creating and presenting financial reports; facilitating budget processes; overseeing audit preparation and processes; developing internal controls; ensuring compliance; and other financial and accounting functions specific to your nonprofit’s needs.

Policies, Procedures and Support Materials: We can create and document policies, procedures and support materials related to your accounting and finance, cost allocation systems and time sheets/time activity reports. These projects conclude with custom staff training in implementing and integrating new policies or procedures.

The IRS Reminds Tax-Exempt Organizations of All Sizes to File the Form 990 on Time to Preserve Their Tax Exempt Status

IR-2010-10, Jan. 21, 2010

WASHINGTON — The Internal Revenue Service today reminded tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.

The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007.

A list of revoked organizations will be available to the public, as well as state charity and tax officials on this website.

If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.

Small non-profit organizations with annual receipts of $25,000 or less can file an electronic notice, Form 990-N ( e-Postcard). They will need only a few basic pieces of information to file: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.

Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually. Private foundations file Form 990-PF. Churches and integrated auxiliaries of churches are not required to file Form 990-series returns or notices.

Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization’s tax year ends. For more information visit the relevant page on this web site.