In recent years, the IRS has increased its scrutiny of not-for-profits’ unrelated business income (UBI). Dividends, interest, rents, annuities and other investment income generally are excluded when calculating unrelated business income tax (UBIT). However, there are two exceptions where such income is taxable. 1. Debt-financed...
Accounting, Auditing, Tax and Consulting Services for Nonprofit Organizations
We serve a variety of not-for-profit organizations, whose needs range from annual filings to full-scope audits.
Our not-for-profit clients include:
- Social services organizations
- Churches and religious organizations
- Fraternal organizations
Unique and Often Complex Financial Requirements
Nonprofit organizations range in size from small local entities to large international organizations, and are involved in a multitude of activities including health and welfare, religion, education, research, social services, and professional activities. The organization’s unique structure and operations are important considerations in its accounting and financial reporting requirements.
Generally Accepted Accounting Principles define nonprofit organizations by contrasting them to for-profit entities, and accounting rules for nonprofits differ significantly from those applied to businesses. The Internal Revenue Service (IRS) defines a tax-exempt organization as an organization exempt from income taxes, and further classifies tax-exempt organizations into one of more than 25 categories.
Nonprofit organizations should secure professional assistance in navigating this often complex web of standards, rules and regulations. Contact us for more information. Together, we can design a service plan that is tailored to your nonprofit organization’s needs.