What do you need to register a Non-Profit Institution?
1. Three Names
2. Three Directors (President, Secretary & Treasury)
3. Address of the Place
4. Objectives of the Business.
5. Mission Statement
What do you need to get a 501©(3) status?
File Form 1023 with a payment to the Internal Revenue Service.
In New York, you should also register with NY State Bureau of Charities
How many non-profits are registered?
The number of non-profits registered is 1, 532,722
Can the Board Members be related?
You will have to report the relationships, compensations, grants received and the transactions.
Transactions have to be at arm's length.
What is the annual filing requirement?
Proper Record keeping of Contributions and Program expenses is vital for the success of the organization.
Depending upon the size of the organization, you would need Compilation, Reviewed or Audited Financial Statements prepared by a CPA.
Again, pending upon the size of the organization any one of the following forms is necessary to be filed with Internal Revenue Service.
Form 990-N, 990-EZ, 990-N or 990-PF
At the NY State Level, You would need to file Form Char -550.
When do I have to file the year end forms?
The forms are due after four and half months after the fiscal year date of the organization.
What if I do not file the forms?
-You could be penalized, 5% of the gross receipts of your non-profit organization and in some cases up to $ 50,000
-You could lose the exempt status and will be liable for taxes on all the profits of the organization.
-Donations made will not be deductible.
How else can I jeopardize the exempt status?
-Private benefit or benefit only for directors & officers
-Lobbying activities intended to influence legistation.
-Intervention in political campaigns.
-Unrelated Business Income activities not related to the main purpose of the non-profit
Are there any other Regulatory Requirements?
-Payroll Compliance: The management working for the non-profit has to file quarterly payroll tax returns. The board members actively working in the non-profit has to paid legally on the payroll.
What are the other considerations in running a non-profit?
There are several policies areas for the Board to pay attention to. Some of the most important ones are:
-Internal Controls to Prevent & Catch Fraud
-Board Team, Changes and Responsibilities
-Responsible Fund Raising.
-Conflict of Interest Policy.
-Whistle Blower Policy
What can we do for you?
We can form your non-profit at any level.
We can register both at the Federal level, 501©(3) and the State level.
We can train you on Quick Books to maintain books in accordance with Generally Accepted Accounting Principles. (GAAP)
We can issue “Program based Financial Reports”&“Activity centered Expense Reports” you can rely on to make business decisions.
We can issue financial Statements, compiled, reviewed or audited as the case may be.
We can design internal control systems to make the fraud proof.
We can get the Board members avoid personal liability by having the employment taxes paid on time.
We can ensure that your exempt status continue to run without any glitches and the board members can have peace of mind.