501(c)(3) Non Profit Organizations (NPO) must be mindful and careful while engaging in certain political activities. There are very specific guidelines in the Internal Revenue Code (IRC) that govern these activities. Infractions of these guidelines can jeopardize your exempt status. Organizations exempt under 501(c)(3) of the IRC shall not incur any expenditure for political intervention (of or for a specific …
Record and Receipts for In-Kind Contributions
In-kind contributions are donations of goods and certain professional services rather than monetary donations (think clothing and household items to Goodwill). For Non-Profit Organizations (NPO) of all kinds (both exempt and non exempt from federal income tax), recording in-kind contributions provides a means of recognizing and valuing contributed services and property. Recording In-kind contributions, in addition to monetary, is a …
new 1023-EZ for 501(c)(3) status
Great news from the IRS! Earlier this month the IRS introduced a new shorter form 1023-EZ for applying for income tax exemption status under 501(c)(3). The new form is a welcomed common sense change for small organizations seeking tax exempt status. The new form is only 3 pages, compared to the 26 page behemoth we had to use in the …
501(c)(3) 4 or 5, what’s the difference?
Often times I’m hired to help an organization or group of people set-up a non profit exempt organization. Invariably, one of the first questions that comes up is, “under which section of the Internal Revenue Code (IRC) will the organization be considered exempt, and what are the pro’s and con’s?” First off, we need to back up. There are many …
Non Profit or Exempt? What’s the Difference?
Often times, the terms non profit and exempt are used to describe organizations with a mission to serve a certain purpose (often charitable). While most non profit organizations (NPO) are exempt, it’s important understand the terms because they both have difference meanings. Non profit status is a State concept and is regulated at the state level. According to Montana Secretary …
Public Charity Status
Schedule A of the 990 and 990-EZ is used by exempt non-profit organizations (NPO) to provide required information regarding public charity and support status. NPO leaders, and even other CPA’s, sometimes ask, “what’s the purpose of this Schedule? I’m already a 501(c)(3).” Schedule A is used by 501(c)(3) organizations, and some others, to show that they are primarily supported by …
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