IRS

As a result of attending this session, you will be able to: (1) understand and apply the three lenses used to complete an impactful Form 990; (2) describe how the Form 990 is organized along with the purposes of each section; (3) differentiate which areas of the Form 990 receive increased attention from the IRS and use that to evaluate the overall effectiveness of your Form 990.

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Learn about the importance of an organization's tax-exempt status and the kind of situations that can jeopardize a nonprofit's tax exemption. This resource summarizes issues to be on the look out for and includes links to more information. (National Council of Nonprofits)

The Tax Guide for Churches & Religious Organizations serves as a reference for the federal tax laws as they apply to churches and religious organizations and any income sources that may be subject to taxation. (IRS, 2015)

This publication covers the rules for organizations that are seeking exemption from federal income tax under section 501(a) of the Internal Revenue Code and explains the procedures to follow in order to obtain the appropriate determination letter for an organization's status. (IRS)

This IRS video course explains eligibility, the benefits of exemption, and how to apply for nonprofit tax status, and an interactive Form 1023 to help you fill out the application. (IRS.gov)

Instructions for IRS Form 1099-MISC and 1099-NEC, used in reporting Miscellaneous Income and Nonemployee Compensation. (IRS)

Indicators of Financial Crisis - "We all know that a stressed organization operating with the best of intentions can still make ill-advised decisions, especially in the financial arena – and the results can be damaging. We also know that sometimes seeing a financial crisis is difficult. We want to make it easier so you can recover faster. And we want you to see the challenges before you end up in crisis." (The Foraker Group)

All 501(c)(3) organizations must file Form 1023 to apply for recognition of exemption from federal income tax. Please see the following IRS online resources:

Nonprofits must establish that the executive compensation (salary and benefits for senior level personnel) provided at their organization is "reasonable and not excessive." The IRS recommends a three step process referred to as "rebuttable presumption" to substantiate the reasonableness of compensation offered by an organization and provides legal guidelines: 

In a meeting of the National Association of State Charity Officials (NASCO), the National Council of Nonprofits heard directly from a panel of regulators about what conduct can spook state charity regulators into conducting investigations of charitable nonprofits. This resource provides valuable reminders of how nonprofits can maintain their tax-exempt status through fastidious legal compliance.