Accounting for Non-Profit Organizations
Tax exempt and general accounting questions answered by a top CPA firm in El Paso, TX.
Non-profit accounting specialists
We salute those of you who work in the non-profit sector. You are a valuable resource for our community and your work benefits society.
Volunteerism is a hallmark of Marcus, Fairall, Bristol + Co., PLLC. Our community-oriented partners at Marcus Fairall, Bristol +Co, PLLC are active volunteers in the local community and we encourage our staff to become involved in their favorite non-profit.
If you have been involved in the non-profit world for any length of time in El Paso, you are almost certain to have met one of our professional accountants. As specialists in non-profit accounting they assist the non-profit organization to file for tax-exempt status and set up the required accounting systems including helping the agency with the appropriate reporting and disclosure policies.
File for tax-exempt status
Non-profit organizations are exempt from taxes, therefore, the agencies have the burden of maintaining careful records to s how compliance with federal requirements.
By definition, non-profit organizations are prohibited from making a profit outside of the scope of the organization. They cannot pass profits on to directors or members of the organization, other than by way of legitimate salaries; the profits must be used for their philanthropic activities.
To receive the tax benefits of a non-profit entity, you must apply for tax- free status. (This means that the entity wishing to be exempt from taxes will need to file an application for non-profit status with the IRS) Tax-exempt refers to net income and/or profits that are free from tax at the federal, state, or local level.
Tax exempt status comes with a host of reporting requirements that must be met. We’ll set up your reporting, bookkeeping, and payroll systems and we can assist in preparing your organization’s formation documents.
Accounting for the not-for-profit organization
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 Statement 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
Have any financial questions?
Should you need any help related to non-profit accounting please don’t hesitate to reach out to one of our CPAs and we’ll get you the right information and advice to ensure you make the right decisions! Call (915) 775-1040 for immediate assistance!
MARCUS, FAIRALL, BRISTOL + CO., PLLC
230 Thunderbird Dr ste g, El Paso, TX 79912
Phone: (915) 775- 1040
Full-Service CPA Firm in El Paso