Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which include the following items.- Income Statement with very specific revenue and expense categories including donations, salaries, postage, and rent.
- Balance Sheet with specific categories like 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 like charitable donations, membership fees, investment income.
The IRS uses these revenue and expense classifications to determine if your organization will retain its tax-exempt status. it’s imperative that you build your accounting system around these Federal 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.
- Direct you to somone that will be able to 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.
Churches: We prepare the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.If you’re starting a new not-for-profit organization, we can refer you to an attorney for assistance.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 – we can refer you to an attorney for assistance
- Minutes of Board Meetings – we can refer you to an attorney for assistance
- Names, Addresses, and Resumes of Board Members
- Names and addresses of all Active Members
- Inventory of Assets like cash, furniture, equipment, property, pledges, etc.
- Inventory of Liabilities like mortgages, accounts payable, loans, etc.
- 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, etc.
- Financial Support Documentation including all sources of revenue like contributions, tithes, offerings, fundraisers, etc.
- Fund Raising Program Descriptions
- IRS Processing/Filing Fee
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