We can help you set up and maintain your non-profit organization's tax-exempt status by handling all the IRS reporting for you.
The IRS requires most tax-exempt organizations to submit the Form 990 and its relations every year, which includes the following items:
- Income Statement with very specific revenue and expense categories, such as donations, salaries, postage and rent.
- Balance Sheet with specific categories, such as cash, accounts receivable and accounts payable.
- Functional Expense Statement with all the expenses allocated to either program services, fundraising or operations.
- Individual Program Expense Statement that reports all of the expenses for each program or service, such as seminar programs or educational mailings.
- Revenue Support Schedules that detail the organization's sources of income in specific categories, such as charitable donations, membership fees and investment income.
The IRS uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status, so it is imperative that you build your accounting system around these revenue and expense classifications.
Here is what we will do for you:
- Review and compile your financial statements
- Design, install and maintain your Accounting System
- Weekly, bi-weekly or monthly payroll preparation
- Payroll tax preparation and deposits
- Provide training for your accounting personnel
- Complete and file your nonprofit status application
- Provide training for your board on nonprofit financial statement usage and effective budgeting practices
- Prepare and file 990 and 990T tax forms
- Prepare initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.
Churches: We will prepare the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.
Here is what is needed:
- Articles of Incorporation containing the Exempt Purpose Statement as described in IRS Code section 501(c)(3) and defined in Treasury Regulation 1.501(c)(3) -1 Paragraph d and the Dissolution Statement described in Treasury Regulation 1.501(c)(3) -1 Paragraph b subparagraph 4 (Organizational Test).
- Employer Identification Number
- Organization's bylaws
- Minutes of board meetings
- Board member names, addresses and resumes
- Active members' names and addresses
- Inventory of Assets, such as cash, furniture, equipment, property and pledges
- Inventory of Liabilities, such as mortgages, accounts payable and loans
- Rent/Lease agreements and contracts
- Revenue and expense statements 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 formation and history of the organization.
- Organization's mission statement or statement of faith or beliefs for churches and other religious organizations.
- Organization's activities, operations and programs documentation, including your statement of purpose and operations, food programs, fundraisers, flyers, brochures, and pamphlets.
- Financial support documentation, including all sources of revenue, such as contributions, tithes, offerings and fundraisers.
- Fundraising program descriptions
- IRS processing/filing fee
We are happy to prepare any of these items if you need assistance.