IRS Form 990 and IRS Form 990-T Preparation Services
IRS Form 1023 and IRS Form 1024 Preparation Services
Serenity Accounting enjoys assisting nonprofits with Internal Revenue Service filings, including the preparation of IRS Form 990 and IRS Form 990-T. We can prepare any necessary state tax filings that may be required for your nonprofit organization as well. Serenity Accounting believes that Form 990 can and should be used as a fundraising tool. As such, we assist organizations in preparing a tax form that tells 'your story' and that encourages donors to make the decision to contribute future funds to your nonprofit.
Serenity Accounting is familiar with the many unrelated business income exemptions that exist for nonprofits. We have saved nonprofit organizations tens of thousands of dollars through appropriately treating certain sources of income as tax exempt. We invite you to contact us if you have questions about the taxability of any income stream your nonprofit may have.
For new nonprofit organizations, Serenity Accounting enjoys assisting in the preparation of IRS Form 1023 and IRS Form 1024. We most often assist in the preparation of the financial information required on these IRS filings.
5 Questions to Consider When Selecting a CPA to Prepare Your Nonprofit's Form 990 or Form 990-T:
(Serenity Accounting responds with a "yes" to each of the below)
|1. Does the accounting firm specialize in nonprofit tax work and will the firm prepare an accurate and compliant document? We have found that CPA's who "dabble" in nonprofit tax work often make mistakes when completing Form 990.
2. Will the accountant prepare a Form 990 that can be used as a fundraising tool to assist in the solicitation of future contributions?
3. Will Schedule A be completed accurately and will Schedule A - Part II be used, when possible, to assist in meeting the public support test?
4. Will the CPA be knowledgeable with respect to the many unrelated business income tax (UBIT) exemptions? These exemptions can save a not-for-profit thousands of dollars in tax liabilities.
5. Will the accounting firm tailor all raw data requests to your specific nonprofit organization, rather than requesting many many pages of non-applicable information?
|Is it advertising or a sponsorship?
Many nonprofits are required to file IRS Form 990-T due to earned advertising revenue. A tax liability is not inherently bad, as the nonprofit still receives 65 cents on the dollar for mission oriented work. However, what if your nonprofit could avoid paying unrelated business income tax (UBIT) related to publication, annual meeting, or e-alert advertising income? Altering the wording of an advertisement can turn it into a sponsorship and sponsorships are specifically exempt from tax. Let Serenity Accounting help you spend the full dollar generated, on programs, rather than just 65 cents. Contact us to see if we can increase your programmatic budget.
||Is it unrelated income or a royalty?
Many nonprofits are required to file IRS Form 990-T due to income generated from commercial entities using their logo. An example of this would be a special credit card or health insurance rate for their members. If a nonprofit words the agreement with the commercial vendor so that the nonprofit's interest in the arrangement is a royalty (or passive income), the money generated from this activity may not be subject to tax. Let Serenity Accounting help your nonprofit spend the full dollar generated, on programs, rather than just 65 cents. Contact us to see if we can increase your programmatic budget.
The above are two examples of how unrelated business income (UBIT) can impact a nonprofit. Ask us about other revenue streams that may be exempt from tax. The more money a nonprofit has to spend on programmatic activities, the easier it is for it to have a successful mission statement.