Nonprofit Frequently Asked Questions

1. Do you provide accounting and tax services for nonprofit organizations?

Yes.

We work with nonprofit organizations by providing accounting, bookkeeping, and tax services tailored to the unique reporting and compliance requirements of tax-exempt organizations.

Our services are designed to help nonprofits maintain accurate financial records and meet their ongoing filing obligations.

2. Does every nonprofit have to file a tax return?

Most nonprofit organizations are required to file an annual information return with the IRS, even if they do not owe federal income tax.

The specific return required depends on the organization's gross receipts, assets, and tax-exempt status.

Failure to file required returns may result in penalties or the automatic revocation of tax-exempt status.

3. Which IRS form does my nonprofit need to file?

The required return depends on the size and type of your organization.

Common nonprofit filings include:

• Form 990-N (e-Postcard)

• Form 990-EZ

• Form 990

• Form 990-PF (for private foundations)

We'll help determine which filing requirement applies to your organization.

4. Can you help a new nonprofit get started?

Yes.

We can assist with accounting system setup, bookkeeping processes, financial reporting, and ongoing tax compliance after your organization has been established.

We'll also help you understand your ongoing recordkeeping and reporting responsibilities.

5. Do nonprofit organizations still need bookkeeping?

Absolutely.

Accurate bookkeeping is essential for nonprofit organizations.

Reliable financial records help boards make informed decisions, support grant applications, track restricted funds, prepare annual filings, and demonstrate accountability to donors and stakeholders.

6. Can you help clean up nonprofit accounting records?

Yes.

If your nonprofit's books are behind or inaccurate, we can review the records, identify issues, and help bring the accounting records up to date before preparing financial reports or required tax filings.

7. What financial reports should a nonprofit review regularly?

Most nonprofit organizations should regularly review financial reports such as:

• Statement of Financial Position

• Statement of Activities

• Budget-to-Actual Reports

• Cash Flow Reports

These reports help boards and management monitor the organization's financial health and make informed decisions.

8. Can you help if our nonprofit receives an IRS notice?

Yes.

We'll review the notice, explain what it means, determine what action may be required, and help your organization respond appropriately.

Addressing IRS notices promptly can help prevent additional issues.

9. Do nonprofits pay taxes?

Not always.

Organizations recognized as tax-exempt by the IRS are generally exempt from federal income tax on activities related to their exempt purpose.

However, nonprofits may still be responsible for payroll taxes, sales or use taxes (depending on state law), unrelated business income tax, and other tax obligations.

We'll help you understand the requirements that apply to your organization.

10. Can you help our board understand the organization's financial reports?

Yes.

Understanding financial statements is an important part of nonprofit governance.

We can help explain financial reports in practical terms so board members and leadership can better understand the organization's financial position, operating results, and compliance responsibilities.