Not-for-Profit

Each year, Internal Revenue Service requirements change and are updated. So are state requirements. The IRS requires tax-exempt organizations to file Form 990 with the proper schedules and information.

Critical Accounting Reports

• Statement of Activities with specific revenue and expense accounts.
• Statement of Financial Position properly categorized.
• Functional Expense Schedule with all the expenses allocated to program services, fundraising, or operations.
• Individual Program Expense Statement that reports all of the expenses for each program or service like seminar programs or educational mailings.
• Revenue Support Schedules that detail the organization’s sources of income in specific categories like charitable donations, membership fees, grants, and investment income.
• The IRS uses very specific revenue and expense classifications and tests to determine if your organization will retain its tax-exempt status. It is imperative that you properly build your accounting system around these revenue and expense classifications.

Critical Documentation

• 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
• Employer Identification Number
• By-laws of the Organization
• Minutes of Board Meetings
• Names, Addresses, and Resumes of Board Members
• Names and addresses of all Active Members
• Inventory of Assets like cash, furniture, equipment, property.
• Inventory of Liabilities like mortgages, accounts payable, loans
• Rent/Lease Agreements and Contracts
• Written Reason for Formation and History of the Organization
• Organization Mission Statement
• Organization Activities, Operations and Programs Documentation
• Statement of Purpose, Operations, and Programs
• Fundraisers flyers/brochures/pamphlets
• Financial Support Documentation including all sources of Revenue
• such as Contributions, Tithes, Offerings, Fundraisers
• Fundraising Program Descriptions

We provide training for your board on non-profit financial reporting and effective budgeting practices

Starting Up?

If you’re starting a new not-for-profit organization we prepare all necessary documents and filings

• Form 1023 501 (c)(3) application for tax-exempt status
• Initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies