Nonprofit Accounting Basics

Tax and Information Filings

501(c)(4) Organizations and the IRS: A Little Background on the Controversy

The IRS Exempt Organizations group (EO) has admitted to at least some inappropriate targeting of politically-conservative Section 501(c)(4) organizations in the exemption application process.

Accounting for Uncertain Tax Positions: A Requirement for Nonprofit Financial Statements

FIN 48, Accounting for Uncertain Tax Positions (now codified as ASC 740-10) was made a requirement for any entity with financial statements prepared in accordance with generally accepted acc

Accrued Vacation

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

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

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

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

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

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

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

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

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

Foreign Account Reporting— More IRS Guidance is Here!

As announced in 2008 and 2009, Treasury and the IRS have greatly stepped up enforcement of the filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR

Foreign Filings

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)

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

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

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!

Public Disclosure Requirements for Tax-Exempt Organizations | 2022 Edition

Governance Review of the Form 990

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

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

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

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