Nonprofit Accounting Basics

Tax and Information Filings

Accrued Vacation

Originally Posted: May 18, 2022

Most organizations include some paid time-off in their benefits packages offered to employees.  Rules concerning when an employee is eligible to receive these benefits vary widely within organ

Ballot Measures and Recalls: Basic Rules for 501(c)(3) Public Charities, 501(c)(4)'s and Unions

Originally Posted: June 29, 2021

As states grapple with a host of contentious issues, including severe budget cuts, efforts to alter public employee rights and benefits, and legislation to curtail public services, organized ef

Best Practices

Originally Posted: May 20, 2009

The Internal Revenue Service believes that promoting best practices in the areas of governance, management and disclosure will lead to a higher level of federal tax law compliance.

Charities and Political Activity— The Unwelcome Spotlight

Originally Posted: January 26, 2021

Political candidates can be good for your nonprofit.  They raise the profile of your events, increase public interest in your activities, and prove to be good friends once in office.  Why

Charity Ratings: Why They Matter and Ways to Improve

Originally Posted: June 1, 2021

What are charity ratings?  Charity ratings are evaluations created by charity watchdog organizations who are also nonprofit entities.  The mission of charity watchdo

Common UBIT Myth Related to Nonprofit Revenue and Tax Impact

Originally Posted: September 8, 2021

Myth: “It doesn’t matter how I get the money in the door as long as I spend it on charitable activities.”

Definition of an Officer

Originally Posted: May 20, 2009

An officer is a person elected or appointed to manage an organization’s daily operations, such as a president, vice president, secretary, or treasurer.

Definition of Key Employee

Originally Posted: May 20, 2009

The definition of a key employee includes a three part test. To be a current key employee all three tests must be met:

The $150,000 Test

Disqualified Persons and the Intermediate Sanctions Excise Tax Regime

Originally Posted: August 11, 2021

Disqualified Persons and the Intermediate Sanctions Excise Tax Regime[1]

Foreign Filings

Originally Posted: November 6, 2018

Exempt organizations (EOs) may be required to provide information on its activities conducted outside the United States on a number of information forms, including Form 990.  These reporting r

Form 990 (Core Form)

Originally Posted: April 2, 2010

The Form 990, Return of Organization Exempt from Income Tax, contains a twelve page “core” form with the following twelve parts:

Form 990 N e-postcard Must Use New IRS.gov Portal

Originally Posted: March 8, 2016

Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ, is used by smaller, tax-exempt organizations for annual reporting and c

Form 990 Schedules

Originally Posted: December 3, 2010

The following list notes the schedules that are part of the Form 990. Each schedule is completed only if the organization meets the requirements for filing the particular schedule.

Give Me Your 990!

Originally Posted: May 9, 2022

Public Disclosure Requirements for Tax-Exempt Organizations | 2022 Edition

Governance Review of the Form 990

Originally Posted: May 20, 2009

Form 990, Part VI, Line 11 relates to the organization’s process for filing the Form 990 prior to the form being filed with the IRS. Line 11 includes two parts.

Independent Contractor vs. Employee: Let's Get it Right

Originally Posted: September 8, 2017

Determining Whether the Individuals Providing Services are Employees or Independent Contractors

In determining whether the person providing service is an employee or an ind

Independent Voting Members of the Board

Originally Posted: May 20, 2009

The definition of an independent voting member of the Board of Directors includes four criteria that must be met for independence:

IRS Code Sections Relating to Exempt Organizations

Originally Posted: June 7, 2009

The IRS maintains a listing of the code sections that apply to exempt organizations.

Lobbying and Political Activities Chart

Originally Posted: October 27, 2021

Nonprofits are allowed to lobby, but the type of nonprofit determines the level of lobbying allowed.  Some nonprofits can engage in political activity, but not all are allowed that flexibility

Lobbying Requirements Comparison Chart

Originally Posted: September 29, 2021

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