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A Guide To Form 990 For Tax-Exempt Organizations

What is Form 990? Although many nonprofit organizations are exempt from paying federal taxes, the IRS requires tax-exempt organizations to file Form 990 for informational purposes. The IRS uses this informational return to determine whether you're still exempt from...

5 Critical Tax Tips For Nonprofits in 2019

No one enjoys filing taxes, but it can be especially problematic for nonprofits. Many nonprofits focus on their cause so much that they neglect proper organization. As a result, they deal with disorganized records and systems, and a lack of clarity around tax issues....

THE SMART BUSINESS OWNER’S LIST OF TAX DEDUCTIONS

For a business owner, taxes can be overwhelming and cumbersome. Tax deductions allow you to save thousands of dollars each year on your taxes and make tax filing a much more bearable experience. In this post, we'll list some of the tax deductions you can use to...

The Smart Business Owner’s List Of Tax Credits

One of the best ways to cut costs as a business owner is to take advantage of all the tax deductions and tax credits for which you're eligible. As a business owner, you're concerned with the bottom line--increasing your net profits. That probably means you spend most...

PRESS RELEASE: Cassidy Jakovickas, CPA of Fresno, CA Appointed to Intuit’s Accountant Council

Select Panel Advises on Products and Services that Accountants and Their Clients Want Most             FRESNO, CALIFORNIA – June 4, 2019 –Today, Intuit, Inc (Nasdaq: INTU) announced that Cassidy...

Beyond The Numbers: What We’ve Been Reading

Although our team loves using numbers and spreadsheets to help our clients make the best financial decisions, we also enjoy reading great books. Staying well read on both fiction and non-fiction books helps us hone our imagination and introduces us to new, sometimes...

Looking Back At April

It’s hard to believe that we’re at the end of April, but it’s true! This month, we helped our clients wrap up another great (and busy) tax season. There was, as always, a lot of paperwork, emails, and nail-biting involved in the days preceding April 15, but that’s all...

5 Last-Minute Tips For Filing Taxes in 2019

Well, April 15 is almost here, and the tax-related panic is thick. If you haven’t filed your 2018 tax paperwork and are rushing to get your taxes in by the deadline, we’ve decided to give you some last-minute tax advice that will hopefully help ease your stress....

An Introduction To Cybersecurity for Business Owners

Keeping your sensitive business and customer data secure has never been more critical. Whether you are a small business or a national corporation, you can't relax your defenses against those criminals seeking to take advantage of lazy cybersecurity policies. Virtually...

March News Roundup

Wow! It seems like we just started March and we’re already moving into April! As we move into the final stretch of tax season, we’re recapping this month’s news for you, just in case you missed it amid the tax-related hubbub. MBS Accountancy: November Review This...

What are the Benefits of being a Non-Profit Organization?

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nonprofitThere are a lot of different ways to manage your money. Some people choose to put their money into retirement accounts, others see money as a thing to be spent. Still, for others, money is opportunity. It isn’t just corporate overlords who see the advantages of creating businesses to invest in. Sometimes all a good idea needs is a little bit of financial support to get off the ground, and it can be a life changer. But, as you begin considering your investment of time, money and energy into a small business, you may want to consider the merits and potential personal satisfaction of how to structure that business.

Non-profit organizations are any small business that are designed with the intention to serve others in some charitable capacity. This might be through the sale of goods, the manufacturing of materials, or the performance of some form of service.

Registering as a non-profit organization has certain advantages, but it isn’t the right choice for everyone. From a tax perspective, you have to be very aware of what you are doing financially when you create a non-profit organization. Breaking the tax code could mean huge penalties for everyone involved. This is why it is recommended that you consult with an accounting professional to help you create a non-profit, and to determine if it is really the best choice for you.

Advantages of Non-Profits

Non-profit organizations have certain tax advantages, including additional deductions and in some cases even tax exemption. Any organization that is officially classified as a public charity has this benefit. This means you must register as a 501c(3). By doing this you will not have to pay any corporate income taxes.   Often there are also exemptions for sales tax and property tax as well.

Another benefit of doing this is that your business gains eligibility for public and private grants that are designed to help charitable services. Any non-profit organization maintains its formal structure as a business, which means it can still have employees and will have the rights of a corporation, including the benefit of being covered under limited liability law. The difference is that the non-profit itself will never be able to turn a profit for the owners and shareholders. Any funds raised through the non-profit will be carefully watched and will have to go directly back into charitable actions.   However, running a non profit does not mean it will be in purely a volunteer situation. Nonprofits need Executive Staff, administrative staff, program managers, and mailroom clerks, all which need to be reasonably compensated. So, there is a way to do good, and be fairly compensated.

If you are considering starting a non-profit organization, make sure that you consult with someone first. Part of running a non-profit means having a careful eye on every dollar that comes in and out of your business, and reporting everything appropriately. A good accounting resource will be your best friend in this area.

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