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Nonprofit Tax and Accounting
Fundamentals for Humanitarian Organizations
Todd ManwaringManaging Director
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Agenda
Introductions Part I: What Are We Trying To Do?
Pre-Test Start with the end in mind: What do the state and
federal government want to know? What information do we need to keep?
Part II: Financial Information Examples / Practice
Part III: Non-Financial Information Examples / Practice
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Levels of Tax & Accounting
1. Do it yourself – have a friend help you2. Solicit an accounting person to review your
work (volunteer, board member)3. Hire consultants to help:
Bookkeepers Tax Preparation Auditing
4. Hire internal employees
This workshop covers FUNDAMENTALS ONLY
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Pre-Test
Match These Forms Provo Business License Application IRS Form 1099-MISC Utah Registration Information Change
Form IRS Form 990 or 990EZ IRS Form 1023 IRS Form 990 Schedule A IRS Form 8718 Utah Charitable Organization Permit
Application Form Bylaws IRS Form SS-4 IRS Form 872-C Utah Annual Report / Renewal Form IRS Determination Letter IRS Form 1096 IRS Form 990 Schedule B Articles of Incorporation Utah Form TC-146
To These Activities Forming the 501(c)3
IRS Recognition of 501(c)3
State Recognition of 501(c)3
Yearly Activities (Jan-Feb)
Yearly Activities (Accounting Period)
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Pre-Test
Match These Forms IRS Form SS-4 Articles of Incorporation Bylaws IRS Form 1023 IRS Form 8718 IRS Form 872-C
IRS Determination Letter
Utah Form TC-146 Provo Business License Application
IRS Form 1096 IRS Form 1099-MISC
IRS Form 990 or 990EZ IRS Form 990 Schedule A IRS Form 990 Schedule B Utah Charitable Organization Permit Applica
tion Form Utah Annual Report / Renewal Form Utah Registration Information Change Form
(if needed)
To These Activities Forming the 501(c)3
IRS Recognition of 501(c)3
State/Local Recognition of 501(c)3
Yearly Activities (Jan-Feb)
Yearly Activities (Accounting Period)
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Forms IRS And Utah Want?
IRS Form 1096 IRS Form 1099-MISC IRS Form 990 or 990EZ IRS Form 990 Schedule A IRS Form 990 Schedule B
Utah Charitable Organization Permit Application Form
Utah Annual Report / Renewal Form Utah Registration Information Change Form (if
needed)
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IRS Form 1096 & 1099-MISC
Often forgotten; required early in year. Form 1096 is a summary form of your 1099s. Normally, the IRS just wants to know about non-
employees that you paid over $600 to. Instructions
http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
Employees reported via IRS Form 941 and its companions (quarterly and yearly).
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IRS Form 990EZ/990, Schedule A/B
These are your yearly tax statements – due after organization fiscal year.
They are used by others as well (state, grantors, donors)
All of the information is public except parts of Schedule B
Instructions http://www.irs.gov/pub/irs-pdf/i990-ez.pdf http://www.irs.gov/pub/irs-pdf/i990sa.pdf
What is the IRS trying to determine?
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Utah Annual Report RenewalUtah Registration Information Change
Often forgotten; required at anniversary of organization
Keeps your corporation “active” with state Allows simple changes to corporate location,
agent, governance Much of the information is public
What is the State of Utah trying to do?
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Utah Charitable Organization Permit Application Form
Usually forgotten; required annually Part of the Division of Consumer Protection Keeps solicitation information current with Utah Some of the information is public Instructions
http://www.commerce.utah.gov/dcp/downloads/permitapps/charitableorganizationinstructions.pdf
What is the State of Utah trying to do?
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What Information Do We Keep?
Financial: Categorized Income, Expenses, Assets, Liabilities Ledgers/Spreadsheets/Quicken/Money
• Do it yourself – have a friend help you• Solicit an accounting person to review your work
(volunteer, board member) Professional Accounting Packages (Quickbooks on up)
• Solicit an accounting person to review your work (volunteer, board member)
• Hire consultants to help• Hire internal employees
Non-Financial
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Other Items to Remember
Local business license renewals Donor receipts – especially over $250