Non-Profit Organizations

We can help you setup and maintain your non-profit organization’s tax-exempt status by handling all the IRS reporting for you.

Each year the IRS requires ...

Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes the following items.

  • Income Statement with very 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 either 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, 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’s imperative that you build your accounting system around these revenue and expense classifications.

Here's what we do for you ...

  • Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information. 
  • Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations. 
  • Comply with banking covenants. 
  • Help deter and detect material fraud and error. 
  • Facilitate the purchase and sale of businesses.

Here's what you get ...

You get the highest level of assurance because we go outside your company to obtain more information. Typically, we’ll have written communication with:

  • Your customers, to check outstanding receivable balances,
  • Your banks, to confirm cash or debt balances and terms,
  • Your vendors, to verify outstanding payable balances, and
  • Your attorneys, for information on pending or threatened legal action.

We also perform physical inspections by observing your inventory counting methods and perform test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client’s supporting work papers.

501(c)(3) applications

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.

We are happy to prepare any of these items if you need help.

Need more information?

Let us help you setup and/or maintain your non-profit tax-exempt status by requesting a Free Consultation below.

Just click the Arrange a Consultation button to complete a form. We will get back to you promptly to arrange your consultation session.

CPA Advisory Group, Inc.

Leading Small Businesses and Individuals to Success

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