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Form 990 is not just a tax form, it’s a publicly available document that showcases your organization’s financial health, governance practices, and mission impact. Filing an accurate 990, especially with detailed schedules like Schedule A (Public Charity Status) and Schedule B (Contributors), demonstrates transparency and can help build donor trust. It’s essential for maintaining 501(c)(3) status and avoiding penalties, while also serving as a key communication tool with stakeholders and grantors.

In nonprofit accounting, restricted funds must be used for specific purposes set by donors, while unrestricted funds can be used at your discretion. Mismanagement or incorrect reporting of these funds can lead to compliance issues and damage donor relationships. We ensure proper tracking and segregation of these funds, adhering to FASB guidelines, so your financial statements clearly reflect the intended use of donations.

A nonprofit audit involves assessing whether your financial statements are fairly presented in accordance with GAAP. Critical areas of focus include revenue recognition, grant compliance, and internal controls. For public charities and foundations, audits also ensure that restricted funds are properly accounted for, and that conditional grants are recognized correctly. The outcome provides your board and donors with confidence in the organization’s financial oversight and accountability.

Unrelated business income (UBI) refers to revenue generated from activities unrelated to your core mission, such as selling merchandise or renting property. Too much UBI can jeopardize your 501(c)(3) status if it exceeds IRS thresholds. We help you identify UBI sources, calculate your tax liabilities, and implement strategies to minimize the impact, ensuring your nonprofit remains compliant with IRS rules while optimizing revenue streams.

A financial audit provides the highest level of assurance that your financial statements are free from material misstatements, while a review offers limited assurance. Nonprofits often choose an audit when required by funders, federal regulations, or when there are complex financial activities like large grants or multiple revenue streams. A review might suffice for smaller organizations with simpler financial structures, but for larger entities, an audit is generally more beneficial for maintaining donor trust and ensuring compliance.

Internal controls help ensure the accuracy of financial reporting, compliance with laws, and efficient operations. For nonprofits, strong controls are critical for managing donations, grant funds, and preventing fraud. We assist in establishing segregation of duties, approving workflows for expenditures, and implementing checks to ensure proper oversight. Additionally, we provide guidance on using audit trails in accounting software to track all financial transactions, ensuring transparency and accountability.

Nonprofits with endowments must carefully manage these funds to balance growth, risk, and liquidity while complying with the Uniform Prudent Management of Institutional Funds Act (UPMIFA). We offer guidance on investment policies, spending rules, and rebalancing strategies that align with your long-term mission. Our goal is to ensure your endowment supports your ongoing programs while maintaining compliance with donor restrictions and investment objectives.

Public charities must pass the public support test, which requires a substantial portion of revenue to come from public sources like donations or grants. Failure to meet this test could result in losing public charity status and being reclassified as a private foundation, which carries different tax implications and reporting requirements. We assist in tracking your public support percentage and help ensure compliance by strategically managing revenue streams to maintain your public charity designation.

Tax-exempt bonds are a powerful financing tool for nonprofits undertaking large capital projects, such as constructing new facilities or acquiring property. These bonds offer lower interest rates compared to taxable bonds, but require strict compliance with IRS regulations, including use-of-proceeds rules. We guide your organization through the issuance process, ensuring adherence to bond covenants and post-issuance compliance, maximizing your financial resources while staying compliant with tax-exempt status requirements.