Passion in Nonprofit Organization
We focus on critical areas such as compliance with the program, federal and state requirements, safeguarding assets, and authorized expenditure of resources. Our experience allows us to assess risk and compare existing policies and procedures to those used by other efficient, reputable organizations.
Suggestions for improvement (where applicable) along with our observations are shared with management on a timely basis so that management can evaluate the information and determine action plans as may be appropriate. Clients appreciate our specialized knowledge because it makes for a uniquely purposeful and meaningful audit as we concentrate on highlighting these issues to management and the board of directors by providing key advice and direction.
Traditional accounting or auditing firms serving only corporate clients may not have the insight to make these meaningful recommendations. Familiarity with specific nonprofit matters and spotting issues that other generic auditing firms may not recognize is what sets us apart.
Serving the Non-Profit in the right way
Our business objective is to provide valuable assistance to management and the general union membership with accurate and timely information that satisfies accepted audit procedures and reporting requirements.
We can help you set up and maintain your non-profit organization’s tax-exempt status by handling all the IRS reporting for you.
Each year the IRS requires most tax-exempt organizations to submit Form 990 and its relations, which includes the following items.
- Income Statement with specific revenue and expense categories like donations, salaries, postage, rent…
- Balance Sheet with specific categories like cash, accounts receivable, accounts payable…
- Functional Expense Statement with all the expenses allocated to program services, fundraising, or operations.
- Individual Program Expense Statement that reports expenses for each program or service, like seminar programs or educational mailings.
- Revenue Support Schedules detail the organization’s sources of income in specific categories like charitable donations, membership fees, and investment income.
The IRS uses these specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. So you must build your accounting system around these revenue and expense classifications.
Here’s what we 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 non-profit status application
- Provide training for your board on non-profit financial statement usage and effective budgeting practices
- Prepare and file the 990 and 990T tax forms
- Prepare your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.
Set up the correct Non-Profit Structure
If you’re starting a new not-for-profit organization we can help you prepare your organization’s 501 (c)(3) application for tax-exempt status.
Here’s what’s 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
- 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, pledges…
- Inventory of Liabilities like mortgages, accounts payable, 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 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 & operations, food programs, fundraisers, flyers/brochures/pamphlets…
- Financial Support Documentation including all sources of revenue like contributions, tithes, offerings, fundraisers…
- Fund Raising Program Descriptions
- IRS Processing/Filing Fee
