What Your Schedule A Says About You

Does your organization check all the right boxes? For Schedule A, that is. Schedule A is a crucial piece of the 990 for nonprofits as it calculates whether they truly qualify as a publicly supported organization or not. Generally, to be considered a publicly supported organization, the nonprofit must have support of at least 33 …

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Let’s Get Political

Whether you’re affiliated with a party or vote as an independent, you’ve probably considered “unfriending” or “unfollowing” some of your more politically opinionated friends on social media due to the relentless long-winded paragraphs and meme posts about Trump’s hair or Sander’s age. I’ve come to the conclusion that I can either get off social media …

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Touchdown or Fumble? NFL Gives Up Tax Exempt Status

In March, the ownership of the National Football League (NFL) voted to give up their tax exempt status and become a taxable entity. The majority of the income generated by the league is from television rights fees, licensing agreements, sponsorships, and tickets sales, which are generated by the 32 individual teams and already taxed. The …

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Non-Profits and Political Activities

All section 501(c)(3) organizations are strictly prohibited from being directly or indirectly involved in campaigning activities for, on behalf of, or against a candidate running for public office, making contributions to political campaign funds, and making a public statement of position on behalf of the organization. However, did you know that 501 (c)(3) organizations are …

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Public Charity to a Private Foundation

The process of changing anything relating to an organization’s tax exempt status can be very confusing. A public charity can be automatically converted to a private foundation by the IRS if they don’t meet the minimum public support percentage requirement. Public charity status is generally the more desirable status, but there may be a situation …

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Exempt Organizations and Sales Tax

In Arizona, entities are required to pay a “transaction privilege tax” on sales of goods, most commonly referred to as a “sales tax.” However, under certain circumstances, entities are exempt from collecting and remitting this tax. If your entity is recognized by the IRS as a non-profit charitable organization under IRC Code section 501(c)(3), retail …

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IRS Creates1023-EZ Streamlined Application for Tax Exempt Status

For an organization to be recognized as a 501(c)(3) tax exempt organization, it is generally required to submit Form 1023 to the IRS. Form 1023 is a 28 page, time intensive form that may be difficult to complete for many smaller nonprofits. As a result the IRS is currently in the process of creating Form …

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Determining Unrelated Business Income

In order to address cash flow problems, many not-for-profit organizations seek additional revenue streams in order to continue to carry out their missions.  But not-for-profit organizations should be aware of whether or not their activities are related to their organization’s exempt purpose. When activities are considered unrelated to the organization’s exempt purpose, the revenue earned …

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10 Things to Know When You Have a PAC (Political Organization)

Here are ten important things to know when you have a political organization (PAC): (1) The IRS requires that a PAC have its own taxpayer ID # which can easily be obtained at the IRS website by completing form SS-4. (2) When a political organization is first formed, it must give notice electronically to the IRS that …

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