- Formation of New Organizations and Application for Tax Exemption
- Budgeting and Planning
- Policy and Procedure Manuals
- Not-For-Profit Tax Returns
- Single Audits
Formation of New Organizations and Application for Tax Exemption
We have formed and successfully applied for recognition of tax exempt status for dozens of organizations. It is well known in the market that applications for tax exemption require experience and expertise. Attached below is a description of the process of applying for tax exempt status.
NYS Charities Compliance
Charity oranizations may not solicit contributions in New York State unless they are registered and file annual reports with the New York State Department of Law Charities Bureau. Most states have similar laws. We have registered organizations in Florida.
Budgeting and Planning
A Not-For-Profit business is also a business that needs planning and control to be successful.
Internal Control Systems
We have been setting up and documenting systems for years. Each audit requires us to evaluate the client's internal control system. Below is a description of internal control for your small Not-for-Profit organization.
Policy and Procedure Manuals
We can help you write an accounting Policy & Procedure manual, tailored to your particular operation and needs.
Corporate Compliance Plans
Combining our expertise in internal control and in government regulations, we have written corporate compliance plans for Agencies that provide services funded by New York State Office of People with Development Disabilities (OPWDD), who are subject to audit by the office of Medicaid Inspector General (OMIG).
Not-For-Profit Tax Returns
A Not-For-Profit whose annual income is $200,000 or more must file a full 990. Those whose income is less then $200,000 may file Form 990EZ. Organizations whose income is $50,000 or less must file an electronic notice called 990-N, to stay on the IRS list of exempt organizations.
Late filings of these returns subject the organizations to serious penalties. Often, IRS will waive the penalties given a reasonable explanation. Since February 2006, we have saved our clients $480,000 in penalties that IRS has assessed and waived due to our intervention.
Not-For-Profit Audits and Reviews
Organizations need audited financial statements for various reasons: to satisfy funding sources, to comply with state Charities Bureau filing rules, or to demonstrate proper management. We perform a number of audits every year.
A Review is a lower level service, usually done to comply with Charities Bureau, for organizations whose income is more than $250,000 and less that $1,000,000 each year.
Organizations that receive $750,000 or more a year in federal funds (Pell, Lunch Programs, Head Start, etc) must submit an audit under Government Audit Standards, called a Single Audit. We have been doing Single Audits for 20 years. We keep up to date on the topic through annual continuing professional education.