Nonprofit Accounting Basics

Tax and Information Filings

501(c)(4) Organizations and the IRS: A Little Background on the Controversy

Originally Posted: July 10, 2013

The IRS Exempt Organizations group (EO) has admitted to at least some inappropriate targeting of politically-conservative Section 501(c)(4) organizations in the exemption application process.

990N

Originally Posted: January 14, 2010

For years, filing Form 990 was not required of organizations normally having less than $25,000 in gross receipts. That has changed.

Accounting for Uncertain Tax Positions: A Requirement for Nonprofit Financial Statements

Originally Posted: December 28, 2010

FIN 48, Accounting for Uncertain Tax Positions (now codified as ASC 740-10) was made a requirement for any entity with financial statements prepared in accordance with generally accepted acc

Accrued Vacation

Originally Posted: June 3, 2009

Most organizations include some paid time-off in their benefits packages offered to employees.

Advance Ruling Period Eliminated

Originally Posted: May 20, 2009

During the process of applying for tax-exempt status under code Section 501(c)(3) an organization provides information showing that it is reasonable to expect that it will be publicly supported.

Advisory Committee on Taxation Issues 2015 Report

Originally Posted: July 2, 2015

Advisory Committee on Tax Exempt and Government Entities

The Advisory Committee on Tax Exempt and Government Entities (ACT) is comprised of members appointed by the IRS Commissioner in orde

Best Practices

Originally Posted: May 20, 2009

The Internal Revenue Service believes that promoting best practices in the areas of governance, management and disclosure will lead to a higher level of federal tax law compliance.

Charities and Political Activity— The Unwelcome Spotlight

Originally Posted: January 26, 2021

Political candidates can be good for your nonprofit.  They raise the profile of your events, increase public interest in your activities, and prove to be good friends once in office.  Why

Definition of an Officer

Originally Posted: May 20, 2009

An officer is a person elected or appointed to manage an organization’s daily operations, such as a president, vice president, secretary, or treasurer.

Definition of Key Employee

Originally Posted: May 20, 2009

The new definition of a key employee includes a three part test. To be a current key employee all three tests must be met:

The $150,000 Test

Direct Mail Costs—Program or Fundraising?

Originally Posted: November 12, 2012

Are you mailing out your year-end giving letters soon? Many nonprofits send out a mailing around the holidays to help promote year-end giving.

Disaster Relief Organizations

Originally Posted: July 2, 2012

There have been so many disasters in recent years, both natural and financial. Many individuals and companies are seeking ways to help those in need.

Disqualified Persons and the Intermediate Sanctions Excise Tax Regime

Originally Posted: October 27, 2014

This article is meant as an overview to intermediate sanctions and who is a disqualified person under that excise tax regime.

Donated Goods and Services

Originally Posted: April 1, 2010

During this down economy, the donation of goods and services are getting more attention as many households turn to such gifts as an alternative means of providing support for various causes.

Employee Bonding

Originally Posted: June 3, 2009

When you need to bond your employees

It is usually a requirement to bond employees that handle cash or other ready assets (stock certificates, etc).

Employee vs. Contractor

Originally Posted: June 3, 2009

Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services.

Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans

Originally Posted: October 15, 2012

Recent changes to the Work Opportunity Tax Credit (WOTC) have made incentives for hiring eligible veterans available to qualified tax-exempt organizations.

Foreign Account Reporting— More IRS Guidance is Here!

Originally Posted: April 27, 2010

As announced in 2008 and 2009, Treasury and the IRS have greatly stepped up enforcement of the filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR

Foreign Filings

Originally Posted: November 6, 2018

Exempt organizations (EOs) may be required to provide information on its activities conducted outside the United States on a number of information forms, including Form 990.  These reporting r

Form 990 (Core Form)

Originally Posted: April 2, 2010

The Form 990 contains a twelve page “core” form with the following twelve parts:

Part I is a summary of selected items contained in the balance of the return.

Form 990 N e-postcard Must Use New IRS.gov Portal

Originally Posted: March 8, 2016

 

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