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Not-For-Profit Organizations

We have comprehensive experience in serving a diverse array of not-for-profit organizations. Cullen & Danowski provides audit, review and compilation level services to organizations in accordance with funding agency requirements, or as support for annual IRS information return filings. A number of those organizations require financial statement audits in accordance with standards applicable to Government Auditing Standards or Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations.

Even smaller not-for-profits find it useful to have our know-how available to assist in oversight for financial operations, and find it cost-effective to have us provide accounting services as an outsourced service.

For those seeking not-for-profit status with the IRS, we prepare the IRS Applications for Recognition of Exemption, and assist in the completion of that process. Also, for those organizations who are required to file the State’s Consolidated Fiscal Report (CFR), we are well versed in the changes that continue to be incorporated and we provide certification for a number of diversely funded programs.

We can help you setup and maintain your non-profit organization’s tax-exempt status by handling all the IRS reporting for you. Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes the following items.

  • Income Statement with very specific revenue and expense categories like donations, salaries, postage, rent.
  • Balance Sheet with specific categories like cash, accounts receivable, accounts payable.
  • Functional Expense Statement with all the expenses allocated to program services, fundraising, or operations.
  • Individual Program Expense Statement that reports all of the expenses for each program or service like seminar programs or educational mailings.
  • Revenue Support Schedules that detail the organization’s sources of income in specific categories like charitable donations, membership fees, investment income.

The IRS uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. So it’s imperative that you build your accounting system around these revenue and expense classifications.

Here’s what we do for you

  • Review and compile your financial statements
  • Design, install, and maintain your Accounting System
  • Weekly, bi-weekly, or monthly payroll preparation
  • Payroll Tax Preparation and Deposits
  • Provide training for your accounting personnel
  • Complete and file your non-profit status application
  • Provide training for your board on non-profit financial statement usage and effective budgeting practices
  • Prepare and file the 990 and 990T tax forms
  • Prepare your initial start-up documentation, including incorporation, federal employer identification number (FEIN), and payroll setup with federal and state agencies.
  • Churches: We prepare the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.

If you’re starting a new not-for-profit organization we can help you prepare your organization’s 501(c)(3) application for tax-exempt status.

Here’s what’s needed

  • Articles of Incorporation containing the Exempt Purpose Statement as described in IRS Code section 501(c)(3) and defined in Treasury Regulation 1.501(c)(3)-1 Paragraph d and the Dissolution Statement described in Treasury Regulation 1.501(c)(3)-1 Paragraph b subparagraph 4 (“Organizational Test”).
  • Employer Identification Number
  • By-laws of the Organization
  • Minutes of Board Meetings
  • Names, Addresses, and Resumes of Board Members
  • Names and addresses of all Active Members
  • Inventory of Assets such as cash, furniture, equipment, property, pledges.
  • Inventory of Liabilities such as mortgages, accounts payable, loans.
  • Rent/Lease Agreements and Contracts
  • Revenue and Expense Statements for the last four years or as far back as possible if your organization has been in existence for less than four years.
  • Written Reason for Formation and History of the organization.
  • Organization Mission Statement or Statement of Faith or Beliefs for Churches and other Religious Organizations.
  • Organization Activities, Operations and Programs Documentation including your statement of purpose & operations, food programs, fundraisers, flyers/brochures/pamphlets.
  • Financial Support Documentation including all sources of revenue like contributions, tithes, offerings, fundraisers.
  • Fundraising Program Descriptions
  • IRS Processing/Filing Fee
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