We can help you set up and maintain your nonprofit organization’s tax-exempt status by handling all IRS reporting for you.
Each year, the IRS requires most tax-exempt organizations to file Form 990 and their relationships, which includes the following items.
- Income Statement with very specific categories of income and expenses such as donations, salaries, shipping costs, rentals…
- Balance sheet with specific categories such as cash, accounts receivable, accounts payable…
- Functional Expense Statement with all expenses allocated to program services, fundraising, or operations.
- Individual Program Expense Statement reporting all expenses for each program or service, such as seminar programs or educational mailings.
- Income support programs detailing the organization’s sources of income in specific categories such as charitable giving, membership dues, investment income.
The IRS uses these very specific income and expense classifications to determine if your organization will retain its tax-exempt status. Therefore, it is imperative that you build your accounting system around these income and expense classifications.
THIS IS WHAT WE DO FOR YOU
- Review and compile your financial statements
- Design, install and maintain your Accounting System
- Preparation of weekly, biweekly or monthly payroll
- Payroll tax preparation and deposits
- Provide training for your accounting staff
- Complete and submit your application for nonprofit status
- Provide training for your board on the use of nonprofit financial statements and effective budgeting practices
- Prepare and file tax forms 990 and 990T
- Prepare your initial start-up paperwork, including incorporation, Federal Employee Identification Number (FEIN), and payroll setup with federal and state agencies.
- Churches: We prepare the pastoral housing allowance and other benefits documentation required to meet the complex dual status of ministers.
If you’re starting a new nonprofit, we can help you prepare your organization’s 501(c)(3) application for tax-exempt status.
THIS IS WHAT IT TAKES
- Articles of Incorporation containing the Statement of Exempt Purpose as described in IRS Code section 501(c)(3) and defined in Treasury Regulation 1.501(c)(3)-1 Paragraph d and the Statement of Dissolution described in Treasury Regulation 1.501(c)(3)-1 Paragraph b subsection 4 (“Organizational Test”).
- Employee identification number
- Statutes of the Organization
- Board Meeting Minutes
- Names, addresses and resumes of board members
- Names and addresses of all active members
- Inventory of Assets such as cash, furniture, equipment, property, garments.
- Inventory of Liabilities such as mortgages, accounts payable, loans.
- Rental/Lease Agreements and Contracts
- Statements of income and expenses for the last four years or as far back as possible if your organization has been in existence for less than four years.
- Written reason for the formation and history of the organization.
- Organizational Mission Statement or Statement of Faith or Beliefs for churches and other religious organizations.
- Organization Activities, Operations, and Programs Documentation including your statement of purpose and operations, feeding programs, fundraising, flyers/brochures/brochures…
- Documentation of financial support that includes all sources of income such as contributions, tithes, offerings, fundraising…
- Fundraising Program Descriptions
- IRS Filing/Processing Fee
We are happy to prepare any of these items if you need help.
