Cole, Newton & Duran’s team of not-for-profit professionals can help your organization setup and maintain your tax-exempt status. Each year the IRS requires most tax-exempt organizations to submit their respective Form 990 and related schedules, which includes the following:
- Income statement with specific revenue and expense categories like donations, salaries, postage, rent, etc.
- Balance sheet with specific categories like cash, accounts receivable, accounts payable, etc.
- Functional expense statement with all the expenses allocated to either program services, fundraising, or management
- Individual program expense statement that reports 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 such as charitable donations, membership fees, and investment income
The IRS uses these specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. It is important that you build your accounting system around these revenue and expense classifications.
Here is what our team can do to help not-for-profit organizations:
- Audit, review, or 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 not-for-profit status application
- Provide training for your board on not-for-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, 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
Establishing a New Tax-Exempt Organization
If you are starting a new organization, our team of experts can help you prepare your organization's 501 (c)(3) application for tax-exempt status. Professionals from our not-for-profit industry team are happy to help prepare any of these items for you.
- 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 your organization
- Minutes from your board meetings
- Names, addresses, and resumes of your respective board members
- Names and addresses of all active members
- Inventory of assets like cash, furniture, equipment, property, pledges, etc.
- Inventory of liabilities like mortgages, accounts payable, loans, etc.
- 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
- Financial support documentation including all sources of revenue like contributions, tithes, offerings, fundraisers, etc.
- Fund raising program descriptions
- IRS processing/filing fee