Establishing a non-profit organization comes with tax-exempt benefits. While this is a good thing, preparing the IRS report for your not-for-profit establishment is certainly is not a walk in the park.
Tax-exempt organizations are required to submit certain reports to the IRS. These include Form 990 and other related financial documents such as:
- Income statement: This report covers revenues and expenses, such as salaries, rent, donations, and more.
- Revenue support schedules: This report details all the sources of income for your non-profit organization in categories, such as membership fees, charitable donations, and investment income.
- Individual program expense statement: This involves reports concerning all programs that have to do with seminars, training, or education.
- Functional expense statement: This covers expenses relating to operations, program services, and fundraising.
- Balance sheet: This includes categories such as accounts receivable, accounts payable, cash, and more.
These financial reports need to be expertly prepared, keeping in mind not to make fundamental errors. This is because the IRS uses the information provided to decide whether or not your non-profit organization will continue to enjoy its tax exemption status.
We have an expertise in working with organizations whom have contracts with the following government agencies: Federal Government, State of California, County of Los Angeles specifically Department of Public Health, Department of Mental Health, Department of Health Services, Department of Probation, Department of Rehabilitation and Corrections, City of Los Angeles, Los Angeles Housing Authority (LAHSA) and Reentry Programs.
We specialize is providing accounting and consulting services to organizations who provides the following services: outpatient services, residential treatment services, transitional housing services, group home services, foster care services, sober living services, homeless housing services, skilled nursing facilities, substance abuse prevention and treatment, MIST and HIV & AIDS Programs.
We can effectively handle these specific revenue and expense classifications for your organization. If you need assistance with building your accounting system in this regard, we can help you in the following ways:
- Prepare your financial statements as listed above
- Prepare and file your application for non-profit status
- Prepare and file the relevant tax forms (990 and 990T)
- Prepare required cost reports for funding agencies
- Prepare monthly and annual billings
- Prepare the necessary documentation for your organization to get started, such as incorporation and Federal Employee Identification Number (FEIN)
- Set up your organization’s payroll with relevant agencies
- Develop a fully-functional accounting system for your organization
- Install and maintain the accounting system
- Train your accounting personnel to use the accounting system
- Train your board members on the correct use of non-profit financial statements
- Teach your personnel best practices in terms of effective budgeting
- Prepare your payroll on a monthly basis (or whichever period best suits you)
- Prepare your payroll taxes and deposits
- Audit support and representation
Handling all of the above requires enlisting the expertise of experienced professionals. We are well-equipped with the necessary skills and manpower to help non-profit organizations in this regard.
Individuals considering setting up new non-profit organizations will need to apply for tax-exemption status by submitting the 501 (c)(3) application.
We understand how daunting the task can be, especially as most people starting new not-for-profit establishments have no experience about this. Thankfully, we are well-versed in this area and can help you with our expertise.
To help you do this, we will need the following:
- Articles of incorporation, which should include the Exempt Purpose Statement
- Employer Identification Number
- By-laws of your non-profit organization
- Names and contact details of your organization’s board members, including their resumes
- Minutes of board meetings
- Your organization’s mission statement
- Names and contact details of the active members
- Assets and liability inventories
- Lease or rent agreements
- Details of your organization’s activities
- Filing fee
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