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Showing 4 posts in Nonprofit.

Nonprofit vs. Tax Exempt

When working with charities and other nonprofit organizations, two terms are frequently used interchangeably that actually do not mean the same thing.  Watch this video to learn the difference between nonprofit and tax exempt.

Categories: Nonprofit, Tax-Exempt Organizations

Why You Must File a Form 990

Generally a Form 990 must be filed by nearly all tax exempt organizations. If you do not know the specific exception as to why you wouldn't have to file a Form 990 then you must file. If you do not file this form on time there could be some very significant financial penalties. Furthermore, the IRS has a revocation program, which means that if you do not file the Form 990 for a certain number of years, then the IRS will automatically, without telling you, terminate your organizations tax exempt status. Learn more in the short video clip below.

Categories: Nonprofit

Your 501(c)(3) Status Has Been Revoked – What Now?

Many nonprofit corporations are exempt from federal income tax pursuant to Section 501(c)(3) of the Internal Revenue Code. Until relatively recently, many of those tax-exempt nonprofits were not required to file annual Form 990 series returns. That all changed with the Pension Protection Act of 2006. Now, all tax-exempt nonprofits are required to file an annual Form 990 series return. If a tax-exempt organization fails to do so for three consecutive years, then its federal income tax exemption is automatically revoked - - no questions asked.

How Do You Know If Your Tax-Exempt Organization Has Lost Its
501(c)(3) Status?

The IRS maintains a list of organizations that have had their 501(c)(3) status revoked. Use this LINK to search for specific organizations. Read More ›

Categories: Nonprofit, Tax

Corporate Sponsorships for Your 501(c)(3) Organization

Tax-exempt 501(c)(3) charitable organizations can raise money by asking businesses to "sponsor" an event or initiative. These sponsorships can provide much needed revenue to the charity and can help to support an event that allows the charity to raise even more money.

The business that sponsors the event or initiative benefits from the public recognition and from the deduction that it receives for the sponsorship amount, either as a charitable contribution under Internal Revenue Code ("IRC") Section 170 or as an advertising expense under IRC Section 162. Read More ›

Categories: Nonprofit, Tax