Competitive Rates
Locally & Family Owned
Been in Business Since 1963
200+ Years of Combined Experience
Glasgow (270) 651-8877
Bowling Green
(270) 842-4242
Hours:
Accurate bookkeeping in a nonprofit organization is one of the most challenging parts of running the group. Without proper accounting and reporting, you run the risk of losing your tax-exempt status and ending up in trouble with the government.
The accountants at Taylor, Polson & Company CPAs, PSC have over 200 years of combined experience in working with nonprofits, including churches and ministries. We provide consulting, accounting, and tax services that ensure that you understand your books and keep your organization operating within the applicable laws.
For a broad overview of the issues you need to consider when you run a nonprofit organization, please explore the FAQ below. For details and professional assistance with any of these matters, please call Taylor, Polson & Company CPAs, PSC today.
Before starting your nonprofit, you should be able to answer these questions:
Once you have your nonprofit idea ironed out, it's important to find the answers to these questions before you get started:
Federal documents:
State documents:
Federal guidelines
The Internal Revenue Service (IRS) requires the filing of either Form 1023-EZ or Form 1023 to be recognized as a public charity operating under Section 501(c)(3).
Form 1023-EZ is used for organizations with an operating revenue is no more than $50,000 within the first three years of operation. The fee to file the three-page Form 1023-EZ is $275.
Organizations with an operating revenue over $50,000 should file Form 1023. The fee to file the 18-30 page Form 1023 is $600.
The date of reorganization by the IRS is the date the Articles of Incorporation are filed with the state’s Secretary of State. Once an organization becomes incorporated with the state, it may begin operation, collect donations and operating revenue, and pay expenses.
Lobbying limitations
Public charities, recognized as exempt organizations by the IRS, are strictly prohibited from participating in a political campaign either by donation, endorsements, or public appearances.
Dissolution policy
​A public charity should designate what Section 501(c)(3) organization should receive its remaining assets when it dissolves and has stopped operating. It may merely say “a Section 501(c)(3) organization,” as a specific organization may not be in business upon dissolution. A report of this intention to dissolve must be filed with the state’s Attorney General, who will request a certified affidavit stating how the remaining assets will be distributed to another public charity within the state.
There are several differences, but the main difference is that for-profit organizations pay taxes on their profits and nonprofits do not.
Donations to public charity nonprofit organizations may be deducted from the donor's income tax return in many instances.
Public charities may file either Forms 990-N, 990-EZ, or 990, while other nonprofits can only file Form 990.
Nonprofits should maintain accrual accounting systems to reflect accrual of revenue charged and expenses incurred. Depreciation must be maintained on capital assets purchased and put in use over a period of years.
Accrual financial statements required for year-end reports are a Form 990-N, 990-EZ, or 990 reflecting the balance sheet with assets, liabilities, and net worth, and an income statement reflecting the revenue, expenses, and net profit.
Competitive Rates on Nonprofit Organization Consulting
Call Taylor, Polson & Company CPAs, PSC to learn more!
(270) 651-8877
Bowling Green
1280 Fairway St.
Suite 100
Bowling Green, KY 42103
Share On: