Holding on to your nonprofit’s exempt status
April 11, 2019 – If you think that, once your not-for-profit receives its official tax-exempt status from the IRS, you don’t have to revisit it again, think again. Whether your organization is a Section 501(c)(3), Sec. 501(c)(7) or other type, be careful. The activities you conduct, the ways you generate revenue and how you use that revenue could potentially threaten your exempt status. It’s worth reviewing the IRS’s exempt-status rules to make sure your […]
Nonprofit Tax Reform Issues
Along with all the changes affecting individuals and for-profit businesses, nonprofit organizations were handed their own corner of tax reform when the Tax Cuts and Jobs Act (TCJA) was passed in late 2017. While changes related to employer matters are no different for nonprofits, there are a few issues pertaining to unrelated business income to be aware of, including taxation of certain employee fringe benefits and separate taxation of net income […]
When It Comes to Revenue, Nonprofits need to Think Like Auditors
July 30, 2018 – Auditors examining a not-for-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You can use the same techniques to increase your understanding of your organization’s revenue profile.
In particular, consider:
- Individual contributions. Compare the donation dollars raised to past years to pinpoint trends. For example, […]
Nonprofit Compliance Issues
Nonprofit organizations must be compliant with rules from many different agencies. Here is a look at some of the current Internal Revenue Service issues to be aware of.
501(c) (4), (5) and (6) Self-Declarers
Social welfare organizations; labor, agricultural and horticultural groups; and business leagues,such as a trade association – can declare themselves tax-exempt without seeking a determination from the IRS. The IRS will review organizations to ensure that they […]
Ensure Consistency Between Your Website and Your Form 990 To Avoid IRS Issues
A basic area of interest to the IRS are the programs your organization offers. Tax exempt status was granted, in large part, based on your programs detailed to the IRS. You should see if the program descriptions in Part III of your 990 are consistent with your website. If your website showcases programs that don’t […]
Why Nonprofits Need Continuity Plans
Most not-for-profits are intensely focused on present needs — not the possibility that disaster will strike sometime in the distant future. Yet it’s critical that all organizations have a formal continuity plan to guide them should a natural or manmade disaster disrupt operations.
You likely already have many of the necessary processes in place — such as safely evacuating your office or backing up data. […]