Does Your 501c3 Measure Up?

 

It is essential that your 501c3 organization quantify its performance and share those measurements with its funders, volunteers, participants, board of directors and employees. Numbers are clear, concise and defined. Providing numbers along with your narrative will be especially positive as your organization is seeking to raise funds from private foundation. Private foundation leaders like to know the impact that their funding is likely to have when they fund your nonprofit organization.

Below, we provide some questions that you should quantify the answer to.

How many participants did your 501c3 organization serve this quarter?

How many volunteers do your nonprofit organization have?

How long did it take your 501c3 to reach different milestones?

How much money did your nonprofit organization raise last month?

Read more: Does Your 501c3 Measure Up?

Lucky 7 Ways to Reduce Income Taxes

 

Tax time is here and Floyd Green CPA wants to help you with our tax services and tax tips.  We offer tax preparation services for individuals, LLCs, S Corps and 501c3 charitable organizations.  

Below, we will provide you with 7 tips to reduce your personal income taxes.
 
Healthcare Expenses.  Depending upon the amount you spend on healthcare cost and the amount of your income, your healthcare expense may result in a significant reduction in your income taxes.  Healthcare expenses include medical insurance premiums, doctor visits, etc.  
 
Work Expenses.  When you incur expense that relate to your employment and you are not reimbursed for those expenses, then you can deduct those cost on your income tax return as unreimbursed employee expenses.  For example - A regular man or woman business suit would not be deductible; however, a uniform with the company patch would be a deductible expense.  

Read more: Lucky 7 Ways to Reduce Income Taxes

501c3 Organizations Need People To Grow

 

All 501c3 and nonprofit organizations need people to ensure that the organization grows and thrives.  Large nonprofits which are successful have an army of people running the organization’s programs and activities as well as handling the administrative functions of the organization.

We, at Floyd Green CPA, group the people who work and serve nonprofit organization into 3 main groups:

-        Volunteers

-        Employees

-        Contractors

All three groups are valuable to nonprofits as each group brings a set of skills, expertise and enthusiasm.

Volunteers.  Many small 501c3 organizations operate exclusively by using volunteers.  Volunteers are unpaid individuals who perform duties and services for the organization.  Some volunteer jobs may involve lower skill responsibilities – such as passing out pamphlets at a function or greeting visitors at an organization function. 

Read more: 501c3 Organizations Need People To Grow

Electing Board Members and Officers (Nonprofit)

 

ElectingNewBoard

Each organization consists of governing body that is responsible for the management of the organization and for overseeing the activities of the organization.

 

 The Board of “members” or “Directors/Trustees” are elected, according to the type or the organization:

 

  1. If the organization has members: the Directors are nominated and elected by the organization’s members. They represent the community of members and manage the organization’s activities, accordingly;
  2. If the organization doesn’t have members: the Directors are the individuals who stand in front of the organization, either when the organization is setting-up or later on, once it has been operating for a couple of years.  If new Directors need to be appointed, the current Board of Directors elects the new Directors, as they have the voting control.

 

Read more: Electing Board Members and Officers (Nonprofit)

Keeping Your 501c3 in Compliance

 

501c3

Once you've navigated the path to obtaining 501c3 status, there are important measures required to maintain your exemption with the Internal Revenue Service (IRS). This overview is a starting point in understanding how to remain in compliance.

 

 

 

Fundraising

Fundraising and applying for grants to support the functions of your organization are all within the rules of operation; however, all funding received must go toward the activities and programs of the organization or toward salaries for its employees.

Read more: Keeping Your 501c3 in Compliance

Recordkeeping Part I – Organizational Records

 

OrganizationalRecords

 When speaking about requirements for recordkeeping, nonprofits do differ from profit businesses. Each nonprofit organization should keep:

 

1. Organizational/Permanent Records

2. Financial Records.

In this article, we focus on the organizational/permanent records.

 

Organizational/Permanent Records: this includes all the paperwork that the organization should keep from the day of establishing the organization.

 

Read more: Recordkeeping Part I – Organizational Records

Recordkeeping Part II – Financial Records

 

FinancialRecordsNonprofits should always maintain good financial records. Nonprofit organizations need financial statements for the following reasons:

 -         To prepare their annual tax returns with the IRS (form 990s);

-         To report the financials to their members;

-         To apply for grants;

-         To write a Business/Strategic Plan;

-         To evaluate the organization’s accomplishments; etc.

 

Based on the financial statements, the organization’s Board of Directors make educated decision on which tax return their organization is eligible to file with the IRS – f990-N, f990-EZ or f990s. The main financial statements are Profit & Loss Statement and a Balance Sheet. Most accounting softwares generate the financial statements for the reported period.

 

Read more: Recordkeeping Part II – Financial Records

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