The four types of 990s

The IRS requires all tax-exempt entities to file a Form 990 yearly as one of the requirements for maintaining their tax-exempt status. There are four types of 990s based on the size and type of your nonprofit and each type has their own set of filing requirements. Don’t miss: Internal controls in small organizations The …

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Is your nonprofit going through a name change?

From time to time, a non-profit organization may change their name to better reflect their mission. If your organization is going through a name change, here are the steps needed to report it to the IRS. Don’t miss: Nonprofit board governance best practices Report the name change on the next annual tax return (Form 990 …

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Nonprofit board governance best practices

As part of their regular policies, non-profit organizations may want to consider following these board governance best practices. Whistleblower policy – The benefit of having a whistleblower policy in place is that it encourages staff and others to come forward with any information they have related to fraud or illegal activity. These policies allow those …

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Notable IRS Regulations on UBTI

In addition to finalizing the rule of using NAIC codes for making the determination as to whether an organization has more than one separate unrelated business activity for Form 990-T reporting purposes, which you can read all about here, the IRS Final Regulations (which adds section 512(a)(6) to the Internal Revenue Code) also includes other …

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New rules for taxable income

Tax exempt organizations may not be 100% tax exempt. Organizations may get involved in certain income-producing activities that could be subject to tax (unrelated business taxable income or UBTI). Under the Tax Cuts and Jobs Act, the IRS began requiring tax exempt organizations to report the income and expenses from each unrelated business activity separately …

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Which 990 form is right for your organization?

All the time and research needed to gather records, compile information, and fill out forms necessary to complete a Form 990 can be extensive. Understanding the proper form to use for your organization could be one less thing to worry about and possibly be a time saver. So here is a short guide that can …

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Is my organization required to complete form 990 schedule B?

The Form 990 Schedule B, also known as Schedule of Contributors, is one of the more common schedules required for non-profits that receive contributions throughout the year. The name may give it all away, but it is a schedule that requires reporting of contributors who have donated amounts over certain threshold requirements depending on the …

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What to know about 457 plans

Taxes relating to 457 plans can be confusing for tax exempt entities. Here are some key points to know: 457b and 457f plans are deferred compensation retirement plans that are offered to a select group of higher compensated or key management employees in a tax exempt entity. Both employees and employers can make contributions to …

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FinCen Form 114: Does your organization need to file?

Is your nonprofit involved in activities in foreign countries? This includes operating an orphanage, conferences, mission work or any other type of program activity. If so, your organization may find it necessary to open a bank account in that country. Once you decide to do that, Form 114 may be required for you to file …

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Changes to the Form 990 extension process

The due date for exempt organizations to file their Form 990 returns is the 15th day of the 5th month after the organization’s year-end. With the May 15th due date for organizations having a calendar year-end this week, you may have filed for an extension. If you did, you may have noticed that the 990 …

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