Organizations
providing an array of benefits to society, and not
operating primarily for profit, are exempted from
federal income taxation by the Internal Revenue Code.
Although these organizations differ widely--from assisting
the needy and disabled, to supporting the performing
arts--they fit into a specialized and challenging
section of accounting and tax practice. And, in recent
years, they have received considerable attention from
the Internal Revenue Service.
Because of exempt organizations' unique mission,
the constituencies for their financial statements
differ from those of other organizations. These include
their board of directors, trustees and members, grant
applicants, donors, and national associations. They
place considerable pressure on the organizations and
the accounting profession to provide more meaningful
financial information. As a result, the Financial
Accounting Standards Board is currently working on
significant changes to the accounting rules for exempt
organizations.
Most exempt organizations file a Federal Form 990,
Return of Organizations Exempt from Income Tax. The
form has recently been changed to dramatically increase
the amount of disclosure required. This includes a
new section that requires organizations to justify
inclusion or exclusion of each type of income under
unrelated business income tax rules. Another is that
it becomes a matter of public record once filed.
We take your responsibilities as a trustee or board
member very seriously, and we recognize your organization's
unique accounting needs. We are vigilant to carefully
monitor your compliance with financial, operating,
and reporting standards. We understand the unrelated
business income tax statutes; and, if your goal is
to avoid unrelated business income tax status, or
merely minimize its cost, we can help.
Exempt organizations are a considerable portion of
our practice, including: charitable foundations, business
and civic leagues, industry trade groups, educational
organizations, government subsidized housing, and
health care providers.
Whether your needs are compliance, or specialized
consulting in such areas as classification of income
and expense, deductibility, or unrelated business
income tax status, our professionals have the broad
based knowledge and experience to help your organization
meet its objectives. Our services include:
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Audit,
review, and compilation of financial statements |
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Affiliate
and national organization reporting |
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Operational
review and internal control review |
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Preparation
of annual federal report (990 series) |
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Filing
and review of applications for exempt status |
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Consulting
regarding unrelated business income status |
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Consulting
on allocation of expenses |
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Avoiding
private foundation status |
| • |
Grant
management and applications |
| • |
Determining
deductibility of donations |
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