Tips for Reporting Nonprofit’s Accomplishments on Form 990s
It’s a very common situation that nonprofits fail to properly report their yearly achievements on the annual tax returns they file with the IRS. Form 990-EZ and Form 990 ask for the organization’s mission and accomplishments.
A simple way of writing your nonprofit’s achievement is to follow the SMART rule, precisely:
Read more: Tips for Reporting Nonprofit’s Accomplishments on Form 990s
How to Change Board Members/Officers
Every Corporation is operated by the Board of Directors according to its bylaws. Some states require one person to serve on the Board, some states – as many as five. The Board members and shareholders must follow the rules set forth in bylaws in order to change directors/officers.
Below is a list of 7 steps to take when changing Board members/Officers:
Why Set Up a 501c3 Organization?
Nonprofit organizations exist to serve the unmet needs of people, animals or the environment. Nonprofit organizations fall under section 501(c)(3) of the IRS tax code, qualifying them for income tax exemption under federal law.
One of the major benefits of being tax-exempt under IRC Section 501(c)(3) is the ability to accept contributions and donations that are tax-deductible to the donor. Additional benefits include, but are not limited to:
501c3 Financial Statements - Preparation (Part 1)
Generally, small charities and nonprofits with budgets under $50K/year can prepare their own financial statements: Profit & Loss Statement and a Balance Sheet.
Below are some tips that will lead you through the tedious process of organizing your nonprofit’s financials and how to use the financial information:
Read more: 501c3 Financial Statements – Preparation (Part 1)
501c3 Financial Statements - Usage (Part 2)
As a part of the successful nonprofit management, each 501c3 needs to come up with the financial statements at the end of the reported period. The financial statements (Income Statement and a Balance Sheet) bring a valuable information on the financial health of the nonprofit. Based on the numbers, the Board of Directors may decide on a new strategic plan for development and on a new direction in order to guarantee a sustainable growth.
Quite often, the Board members prepare the financial statements and use them for:
What to Prepare When Writing Your Biz Plan
We know that writing a biz plan for your organization is an elaborate task. However, if you follow our checklist below, you may be able to break down the writing into small and attainable pieces which will help you to put your business plan together. Our suggestions include:
Organization’s ownership – be clear on the type of organization you’re managing – an LLC, S-Corp, C-Corp or not-for-profit. Make sure you have the correct names of the other partners/Board of Directors/managing Directors. You can also prepare and review your organization’s paperwork filed with the state. Verify the type of the organization and the year of formation.
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