compliance

Compliance is an area that all nonprofits must pay special attention to, including financial, legal and regulatory requirements. We'll highlight an array of compliance issues for you to ponder and discuss with your finance committee to help you ensure that you aren't found to be 'non-compliant' during an audit.

feature article:

The IRS has a micro-site that is available to those of us who want to stay exempt. I think that’s everyone! It’s created especially for 501(c)(3) organizations! Whether you are new to the world of tax exempt organizations, an old hand at managing them, or a tax professional who works with them, you will find something of interest here.

The deadline for filing taxes for a non-profit organization depends on when the agency's fiscal year ends. The deadline is the 15th day of the 5th month following the end of the fiscal year. For those agencies whose fiscal year ended December 31st, the deadline to file is May 15th. Read this to find out where to get help, how to file for an extension and more.

File your 990!

The IRS warns that half a million non-profits can lose their tax exempt status! If you haven’t filed a 990 for three executive years, it’s gone. You will no longer be a 501©3 and will have to re-apply to the IRS if you want to continue working as a non-profit. Get it together. You must look into this. Read more for further information.
New FASB regulations on investments!

Does your organization have an investment policy? If you have an investment but not a corresponding policy, you'd better get started drafting one with your Investment (Finance) Committee. Here are some guidelines (ps. you must have a written policy next fiscal year!):
- What method is used to calculate the annual available “draw” from investments [in accordance with your spending policy – (typically based on the rolling average market value of investments over a specific time period such as three years or 12 consecutive quarters) ].
- Does your spending policy include a growth provision?
- What is your intended rate of return?
- Is the rate of return is based on a total return concept including interest, dividends and market appreciation?
- Discuss your organization's risk tolerance
- Do your investment criteria take donor restrictions into consideration
- Make sure your spending policy is Clearly defined (in accordance with any state laws)
- Note any socially responsible Investment restrictions (like environmental and ethical considerations).

quick links:

Wondering what's on the agenda for the IRS this year? Their focus will be on enhancing the public's trust in non-profits so here's what you must make sure you are doing to comply.
Tax information for all non-profits directly from the IRS.
If you are not already a 501 © 3, you may consider fiscal sponsorship as a way to keep administrative costs low, comply with governmental regulations and collaborate with an agency with a similar mission. Here's a more complete explanation and a website to actually find organizations who are fiscal sponsors.
Boston area Nonprofits! Although the deadline has passed for the upcoming session, the Center for Digital Imaging Arts at Boston University operates a practicum program for students. Each semester, the program seeks 'partner organizations' for their students who will provide, at no cost, Web Design/Programming, Video, Photography and 3D Animation services! It's a great opportunity to getting cutting edge help from the next generation of media services while helping to train students. Check out their site here.
Methods of preventing fraud are dependent on accounting controls.
Here's a sample set of financial policies.
Do you have an endowment? Has the value dropped below donor gift because of the market? Read here about updated state laws that may allow you to drawn down on that gift.
Sarbanes-Oxley: read what it means for your nonprofit
Information that is required to be provided to donors
Read more on Sarbanes-Oxley.
Federal and State Regulations to be aware of.
Discussion of the internal controls that are needed for cash disbursement.
The internal controls that are needed for payroll.
IRS Publication 557 (June 2008) updated regulations on 990-T, donor acknowledgements and public-support test.
- 990-T - this is the form that exempt organizations must file when subject to unrelated business income tax. New rules require organizations to make their 990-T open to public inspection from due date or actual file date, whichever is later.
- Donor Acknowledgments -
  - Quid pro quo contributions - disclosure statement required for all contributions over $75 (this includes tickets to special events, galas, etc.). See page 14 of Pub 557 for disclosure statement requirements.
  - Your donors can't deduct gifts of $250 or more unless you provide them with a written acknowledgement. See page 14 of Pub 557 for acknowledgement requirements
- Public support test - See page 29 of Pub 557 for definitions and methodology.

The 2010 mileage rates have been set by the IRS

Navigating trouble spots on the Form 990

Summary of key provisions of the Non-profit Integrity Act of 2004

Charitable contributions guidelines, Pub 1771

Cost allocation methods

Record retention policy by Chesta Hembroke

The IRS Compliance Guide for 501©3 charities

The IRS View of non-profit governance

Now that you're fundraising on the web, and your outreach may be out-of-your-state, there are charity registration laws with which you must comply.

Here's some free online training in the areas of tax exempt status, unrelated business income, form 990, required disclosures.

Avoid excess benefit transactions.

Sample document retention and destruction policy to ensure you're in compliance with the Sarbannes-Oxley Act

Here's more clarity on the Form 990.

If you don't have one already, your auditor may be telling you to develop a disaster recovery plan. Here's a sample.

Tax information for all non-profits directly from the IRS.

It seems like there's a non-profit,daily, that is having legal problems and much because they're not complying with the law. This is an article on Sarbanes Oxley.

The state of Massachussettes is listing online, those charities that are not compliant. Your state may do the same.

Complaints about ngo's are being filed to those who regulate us. This article's about fiduciary responsibility.

This is everything you need to know, legally, about donations.

Tax benefits of giving.

Do you have an endowment? FASB 117B new reporting rules.

It's important to have a good relationship with your insurance agent.

This IRS Report on Exempt Organizations will help agencies to understand and comply with the requirements of tax exempt status. You will find a comprehensive report that includes a FY2009 Workplan for the 990.

First it happens in New York and then it spreads all around the country, so New York non-profits be prepared and the rest of us, get ready. An amendment to a law was adopted that requires nonprofit groups (as of September 1st) to begin collecting sales tax for online sales, leases for services to properties you own and for equipment rentals. In the past, exempt organizations only were responsible for collecting sales tax for items sold in a store or shop, or through restaurant or cafeteria sales. See the list of what must be taxed by clicking here.

Clear definition of financial and legal compliance.

Definition of the Sarbanes-Oxley Act.

Form 990 changes

How to comply with the Sarbanes Oxley requirements.

If you’re in jeopardy of losing your tax exemption because you didn’t file your taxes on time, the IRS will give you a second chance! Read this message to see what you must do. Check out this list to see who the IRS booted out of their tax-exempt status already.

The IRS is watching!