Michael A. Ross, CPA, P.C.

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 most tax-exempt organizations to submit the Form 990 and its financial relationships, 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.

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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:

• Review and compile your financial statements;

• Design, install, and maintain your Accounting System;

• Weekly, bi-weekly, or monthly payroll preparation;

• Payroll Tax Preparation and Deposits;

• Provide training for your accounting personnel;

• Complete and file your non-profit status application;

• Provide training for your board on non-profit financial statement usage and effective budgeting practices;

• Prepare and file the 990 and 990T tax forms;

• Prepare your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies;

• Churches: We prepare the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.

 

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.

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We are happy to prepare any of these items, if you need help please contact us!