Non-Profit Accounting and Tax Reporting

Voluntary organizations are under increasing pressure to comply with ever-changing government standards to protect their non-taxed status. Dunham Associates CPAs can help take Operations Accounting and Tax Reporting off of your hands so that your charity may achieve its goals.

Non-Profit Accounting: 

As non-profits use accrual accounting, many items are similar to business.  Yet accountants must pay careful attention to classification of donations (with or without restrictions), donated services and “functional expenses”, and the results go down on statements geared to the non-profit’s mission:  the statements of financial position, activity, cash flow and functional expenses.  Non-profits which receive federal funds over $500,000 in a year need a “Single Audit” prepared by an independent CPA and many others seek audits to acquire property or loans.

Non- Profit Tax Reporting

Nonprofit Tax Filing recently made the limelight with the Clinton Foundation and questions about IRS reviews of conservative non-profits. CPAs can help new non-profits file Form 1023 to get Federal 501(c)(3) tax deductible status for their donations plus Form 3500 for California. Later, they will have to file local property tax Forms 571-L and all of the Secretary of State registration, payroll and sales tax forms discussed elsewhere. In addition, they need Form 990, Return of Organization Exempt from Income Tax and they could have taxable income from side business activities—or could be assessed penalties for failure to file. Dunham clients avoid trouble.