How to keep your Non-Profit 501(c)(3) tax-exempt status

How to keep your Non-Profit 501(c)(3) tax-exempt status

Don't be fooled. It can be easier to get non-profit status than to keep it. And if you lose it, bad things can happen. Full article: http://bit.ly/2HvUaWl What a Form 990 tax-exempt return and variant forms are used for The IRS and non-profit organizations use Form 990 and related forms in various ways including: IRS — Get information about tax-exempt organizations. IRS — Educate non-profits about tax law requirements to maintain 501(c)(3) status. IRS — Promote compliance with IRS rules to remain tax-exempt. Non-profits — Share information with the public about the organization and programs. State gov. — Complete charitable and regulatory oversight of non-profits. State gov. — Manage state income tax filing requirements for state income tax-exempt organizations. Key information for filling in a Form 990-N tax-exempt return Form 990-N, also known as an e-postcard can only be filed online with the IRS, there is no paper version of the form. You will need the following information to fill in and file a 990-N: Employer identification number (EIN). Legal name of the non-profit and mailing address. Any other names the organization uses. Name and address of a principal officer. Web site address. Confirmation that the organization’s annual gross receipts are $50,000 or less. If applicable, a statement that the organization has terminated or is terminating. That’s it — nice and simple. Key information for filling in a Form 990-EZ tax-exempt return The EZ (easy) version of Form 990 is more complex than the 990-N, but not as detailed as the full 990. Here are the key areas you’ll need to provide information on, in addition to what you’d provide in a 990-N. Summary of grants, contributions, membership dues, investment returns received, and other income. Summary of operational expenses and money spent on running the organization and charitable activities. Summary of gross and net income, profit, or loss and total revenue. Benefits and salaries paid to various parties and employees. Summary of types of assets, their value, and changes in asset value over the year. What the non-profit has accomplished in its three largest programs. Officers, directors, trustees, and key employees with compensation and benefits. Other miscellaneous information and schedules. Key information for filling in a Form 990 tax-exempt return Finally, we have the full Form 990. Here’s the information you’ll need to provide, in addition to that shown under Form 990-N and Form 990-EZ above. Checklist of required schedules that must also be filed. Statements regarding other IRS filings and tax compliance. Details of governing body and management. Policies and disclosures. Complete statement of revenue — how much the non-profit earned from various sources. Complete statement of expenses — how much the non-profit spent on various activities. Balance sheet — current financial position. Reconciliation of net assets. Financial statements and reporting declarations. You will also have to fill in and file additional schedules, depending on the nature, activites, and other factors of your non-profit, foundation, or charity. 990 is a long and complex form, so be sure to get some expert advice when you’re filling it in. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://youtu.be/KlrT1nHY15U IRS Medic