We can help you to setup and maintain your non-profit organization’s tax-exempt status by handling all the IRS and Michigan reporting for you.
Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes the following items:
- Income Statement with every 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.
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.
The State of Michigan requires all non-profit organizations to file a License to Solicit Donations annually. As part of these requirements, the State also requires filing financial statements. Depending upon the funding sources of the organization, the State may require reviewed or audited financial statements. We can also assist in preparation of these financial statements.
Here’s what we can do for you:
- Prepare the 990 and related tax forms
- Prepare the License to Solicit Donations
- Prepare appropriate financial statements to meet the filing requirements, if any.
In addition to these services, we can also provide the following services to you:
- 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 your initial start-up documentation, including incorporation, federal employee identification number (FEIN) and payroll setup with federal and state agencies.
If the organization is in need of audited financial statements, either for grantor requirements or for the above noted State requirements, we have highly qualified staff for providing these services as well. We currently assist over 30 non-profit organizations in providing a wide range of services from monthly accounting and payroll to audits and reviews of the financial statements.
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