Posts Tagged ‘year-end’

I can already hear some of your sarcasm…

“Tell me something I don’t know!”

“You’re kidding!  The IRS?  Really?”

Point taken.  It seems like the IRS always wants to know a thing or two about you.  Whether it is your personal tax situation, your business or your nonprofit organization, the Internal Revenue Service seems to always be there.  We’ve spent a great deal of time educating you about the seriousness of the 2008 changes to IRS Form 990 and what they mean to your nonprofit.  Well, the screws are getting tighter with the recent release of additional changes for the 2009 return.  Specifically, it is the changes to the Schedule O that have the potential to shake things up pretty dramatically.

What is Schedule O? The name of the schedule, Supplemental Information to Form 990, sounds harmless enough.  It was introduced in 2008 as part of the overhaul to Form 990 that added Schedules C – R to what had previously been just Schedules A & B.  The purpose of the schedule is to provide the IRS with…wait for it…supplemental information about the activities of nonprofit organizations that is not captured elsewhere on the return.  What is new for the 2009 tax year is that Schedule O is required of all Form 990 filers.  This is where the game begins to change…

Read the rest of this entry »

The filing deadline for the 2009 Form 990 is May 17, 2010 for 501(c)(3) and other tax-exempt organizations running on a calendar year basis.  There is nothing particularly new about that.  What IS new is that this year’s filing obligation has the potential to cause an enormous amount of heartache to those nonprofits that are unaware of the requirements and fail to do what is necessary.  We touched on this briefly in our last article, but we want to expand on it a little bit.  We implore all of our clients and friends to read this article carefully and be informed.

ALL tax-exempt organizations must file Form 990. With the distinct exception of churches, all 501(c) nonprofits are required to file a version of Form 990.  We’ve been saying this over and over, but we still find that the message is not quite getting through.  To make it easy to understand, ALL means ALL.  No exceptions!

Read the rest of this entry »

It’s one of those administrative tasks that must be done every year:  mailing your donors a year-end statement of their contributions.  Even if you are receipting on a per gift basis, a year-end itemized report is a best practice that should be adopted.  If you are already doing that, good for you!  But let me ask you this…

Is your year-end donation letter making money for you?

Have you noticed that some nonprofits are still doing fairly well in this economy, even thriving, while others have suffered dramatically?  What do they know that you don’t?  While there are many contributing factors that underlie success in fundraising, I submit that the most important element is effective communication.  One of the best places to communicate is in your receipting to donors.

Read the rest of this entry »

Well, we are pretty much down to it.  There are only a few, short weeks left in 2009…and during much of that time, most of us will be preoccupied with all things Christmas.  But in all the hustle and bustle, there are a few things regarding your nonprofit that require your attention.

A few weeks ago, we talked about some key, end-of-year planning topics (read the post).  Extremely important, but somewhat conceptual.  The following is a checklist of year-end forget-me-nots that absolutely require your attention.  Ready?  Here we go:

Financial records. What is the current state of your financial recordkeeping?  Good, bad…or ugly?  Hopefully it’s more good than bad.  If it’s ugly…well, you’ve really got some work to do.  The fact is, you have a legal requirement to maintain proper financial records.  If your bookkeeping status lies anywhere south of good, get it fixed.  If necessary, hire someone who knows how to do this.  The truth is, the legalities are not even the most important reason to get this right.  You cannot effectively manage your organization without consistently good financial recordkeeping.

Read the rest of this entry »

2009 is rapidly coming to a close.  And once again, we find ourselves amazed at how fast the year has gone by.  Funny how we have this conversation every year, but we act like it’s the first time it went by this fast.

Just as December 31 rolls around every year, so does the need to plan for your nonprofit’s year end.  With only a few weeks left in the year, don’t put off until later some of the most important things you need to be doing right now.  Let’s take a look at some key, year-end necessities.

Strategic planning. The economic uncertainty of the past year has forced many nonprofits to shift gears and even change course.  For some, it has caused an existential crisis!  What has the economic downturn meant to your organization?  The end of the year is a natural time to (re)evaluate what you are doing.  Focus on maximizing impact for a minimum of expense.  Easier said than done, no doubt.  But now more than ever, it is imperative to be intentional with everything you are doing.  “Winging it” is ineffective in the good times.  It could be fatal in the bad times.

Read the rest of this entry »

If there is one constant in life, it’s change.  And most people don’t do “change” very well…even the IRS!  The new 2008 Form 990 is a complete, top-to-bottom overhaul of the form (as we’ve discussed in previous posts).  As we talk with more and more clients/prospects, we’re really starting to see some trends develop…most of them not good.

Read the rest of this entry »

For the first time since 1979, the IRS has completely overhauled the Form 990 – Return of Organization Exempt From Income Tax.  And boy, is it a doozy!  This time, they weren’t fooling around.

“So what’s new?,” you ask.  Literally everything…from the filing requirement thresholds to the information they are seeking…it’s all different.

New Form 990 w/instructions vs. Nashville Yellow Pages!

Read the rest of this entry »

A little less than a month from now (December 31) marks the end of most organizations’ fiscal year. Have you been preparing for your IRS annual reporting requirement?  Do you at least know where your records are?  Or who has them? (If the answers to the last two questions have you concerned, you might want to see our new Vital Document Archive product.)

Most 501(c)(3) organizations must file an annual information return called Form 990.  Small 501(c)(3) organizations will file a Form 990EZ. Really small organizations with gross revenue normally less than $25,000 may only have to file an electronic information “postcard” return called the Form 990-N.  This form will require the organization’s name, any name it operates under, mailing address, web site, EIN, name and address of a principal officer, organization’s annual tax period, verification that the organization’s annual gross receipts are still normally $25,000 or less, and notification if the organization has terminated.  Large 501(c)(3)s typically file Form 990.

Read the rest of this entry »

The year is coming to an end. Thanksgiving is just around the corner. Christmas is close enough that you can smell it. If your nonprofit’s fiscal year is January through December, then your accounting year is almost over as well. Are you preparing to end the year and winterize your nonprofit?

Here’s some questions to ponder as you prepare for years-end…

Read the rest of this entry »