Report Entire Contribution Lists in Minutes!

One of the most tedious tasks when filing Form 990 or a 990-EZ is entering list after list of donor information and their contribution amounts.

Many tax-exempt organizations receive hundreds of donations from individuals and groups each year and reporting them one by one consumes too much time.

IRS-authorized ExpressTaxExempt offers features which streamline your filing experience so you can e-file Form 990 as quickly and smoothly as possible. One of those features is our Bulk Upload option designed for exempt organizations who take in many donations throughout the tax year.

Upload Every Contribution at Once
Mid-size and large organizations have the option to upload their received donations by using the “Bulk Upload” button from the “Contributions, Gifts, Grants, and Similar Amounts Received” section.

By bulk uploading your organization’s contributions, you can continue filling out the rest of your tax return while ExpressTaxExempt loads all the donor information into your account.

Simple Steps to Upload
Uploading your contribution lists is quick and easy with these steps:

1. 1. Download pre-made excel template
2. 2. Enter your donation entries in the template and save
3. 3. Upload your saved excel file from your computer

You can also upload your own contribution spreadsheet if you have one already completed. Make sure your column headings match the required information that our application asks.

Schedule B Filings
ExpressTaxExempt automatically generates your Schedule B and pre-loads your contributions onto it. Remember, the IRS General Rule states to only list singular donations that are at least $5,000. And while you can enter or upload every contribution, our service will only place the entries that are $5,000 or greater as per IRS rule.

Contact our live US-based team of e-file professionals for any questions or need assistance with reporting contributions for your 2016 Form 990. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send an email 24/7 to support@ExpressTaxExempt.com.

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Politics and Charitable Nonprofits

Amidst our nation’s current political climate, the National Council of Nonprofits reports that nonpartisanship, an essential principle of charitable nonprofits, has fallen under scrutiny with our country’s leaders in Washington, D.C.

The organization is asking for all those concerned with the prosperity and efficiency of the nonprofit community to express support for increased protection by signing the Community Letter in Support of Nonpartisanship.

Nonpartisanship defines as being free from any party affiliation or designation. And though the IRS allows political participation from exempt organizations, there are strict regulations regarding lobbying and its expenditures. According to the National Council of Nonprofits, Congress is introducing bills that could repeal or substantially weaken current protections making charitable organizations more susceptible to endorse or oppose candidates running for an elected office.

The detrimental issue the Council points out is that being more impressionable towards political activities will redirect funding from an organization’s charitable mission to supporting election campaigns. Such legislation could also expose nonprofits and foundations to demands from candidates for political endorsements and contributions which will take funds from charitable work and eventually afflict the public trust of exempt organizations.

Ultimately, the Council states that the proposed changes are entirely unnecessary. They assure that there are already many legal ways for a nonprofit’s staff, board members, and volunteers to express their individual views on public policy issues. If you or any other nonprofit, charity, private foundation, or religious groups are interested in showing support or signing the Support of Nonpartisanship letter, you can visit GiveVoice.org or the Protecting Nonprofit Nonpartisanship website.

For any other questions or concerns about how lobbying and political activities can affect your organization, contact a local tax professional or reach out to the IRS Tax-Exempt Hotline at 877.829.5500.

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Intangible Religious Benefits from Charitable Contributions

The IRS has rules of recordkeeping and substantiation for donors giving charitable contributions along with disclosure rules for charities receiving those donations. Individuals or groups that donate to exempt organizations can typically write-off those tax-deductible donations on their annual return; however, there are a few other things required.

Deduction Requirements from Contributions

Donors must obtain a bank record or written receipt from the organization for any monetary contributions to claim the amount on their federal income tax returns. A written acknowledgment is also mandatory for any single contribution of $250 - cash or noncash - given to a nonprofit or charity. And charitable organizations should provide written proof to donors who receive over $75 of goods or services in return for the contribution.

Goods and Services
Written acknowledgments for goods and services exchanged for donations must contain a description of what the organization provided and an estimated monetary value of items or services given to the donor. Contributors should also subtract the estimated amount from the total fair market value of the donation to know the deduction value. Goods and services typically include cash, benefits, property, services, or privileges. There are exceptions - one of which is intangible religious benefits.

Intangible Religious Benefits
The IRS does not require a description or value of goods included with a written acknowledgment from faith-based organizations that only provide intangible religious benefits to donors. The statement needs only to say the organization provided such benefits. A tax-exempt organization operating exclusively for religious purposes can only grant this type of benefit; it’s usually something that you can't sell as a consumer transaction.

Examples of intangible religious benefits include admission to religious ceremonies or a de minimis tangible benefit such as wine used for religious services. Benefits that the IRS doesn’t consider intangible or faith-based include education towards a recognized degree, consumer goods, or travel services.

Religious organizations, such as churches, don’t typically need to file annual 990 returns with the IRS. But if they choose to do so, they must submit a complete return which may require a Schedule B for contributions equal to or greater than $1,000 and were used exclusively for religious purposes. You should also list donations used outside of religious purposes that are over $5,000.

If you have any questions regarding substantiation and disclosure requirements or about intangible religious benefits, we recommend seeking a tax professional for assistance. You can inquire about Schedule B and Form 990 information by calling the IRS Tax-Exempt Hotline at 877.829.5500.

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Are Donations to Animal Rescue Shelters Tax Deductible?

Like with many other nonprofits or charities, if you make a donation, you can typically deduct the value of your contribution from your annual tax bill.

To do so, the nonprofit group you’re giving to must be officially recognized by the IRS as a section 501(c)(3) organization. You can check an organization’s tax-exempt status by searching the IRS Exempt Organization Select Check.

Are Donations to Animal Rescue Shelters Tax Deductible?

When you’re filing, you will also need to itemize the amount of your donation - this may not be worth the extra effort if you only gave a little here and there. But if you gave a significant amount throughout the year, it is best to itemize the deduction on your personal tax return.

Here are 3 things to consider when donating to an animal rescue shelter:

1. Pet Adoption vs. Donation

A common misconception most people make is thinking that payment for adopting from an animal shelter is the same as making a donation. Only donations in which the donor receives no goods or services in return can count towards a deduction.

In this case, you’re giving money in exchange for your pet - that's more of a service charge rather than a charitable contribution. However, if you paid over the cost of adoption or gave a gift outside of the adoption transaction, that counts as a valid charitable contribution.

2. Donation Value

If you’re donating items, you’ll need to estimate the fair market value for each of those items. There’s no one particular method for finding fair market values - you can look through local shops or online stores to figure out prices of similar items in the open market. For special unique gifts, such as a hand-woven, nap basket for kittens, you can get it appraised for the market value.

3. Written Proof of Donation

When you’re donating to an official 501(c)(3) organization, it’s common practice to receive a physical receipt for your donation. If your total contribution amount is at least $250, the IRS requires you to submit proper documentation along with your tax return. Like other receipts from nonprofits or charities, it should contain the description of the contribution and the amount along with the name and address of the organization.

If you received a gift or benefit from the animal shelter in return for your donation, include a description of the gift on the written receipt. Any reciprocated gifts with a monetary value should be subtracted from the amount of your contribution when reporting. A paper certificate or “Thank You” card typically don’t have cash values, but a coupon or gift card does.

Animal rescue shelters can report received contributions over $5,000 to the IRS by using a Schedule B along with their Form 990 or 990-EZ tax return. Taxpayers that want to claim an itemized deduction for their donations to an animal shelter can complete a Schedule A with their IRS 1040 form.

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Are Public Libraries Considered Nonprofit Organizations?

In general, public libraries do not receive 501(c)(3) exemption status from the IRS; however, tax officials recognize them as a governmental unit under the 501(c)(3) Internal Revenue Code which allows exemption from federal taxes.

For grant applications from foundations or charitable organizations, government entities usually need to provide proof of its tax-exempt or charity status.

Are Public Libraries Considered Nonprofit Organizations?

Tax-Exempt Status for Libraries

A public library can use its federal taxpayer identification number, commonly known as its Employer Identification Number (EIN), to identify itself. The IRS can also distribute a “governmental information letter” upon request which proves the library’s exemption from federal taxes. The letter also explains how the entity is applicable for deductible contributions and income exclusion.

When a new public library gets commissioned by an administration of public education, it is automatically exempt from state taxes and typically doesn’t pay federal taxes because of its governing entity status. In particular circumstances, a library can request to qualify as a 501(c)(3) organization instead of a government entity but has to submit a Form 1023 to receive a determination from the IRS.

While operating as a government entity, libraries can enlist another 501(c)(3) organization to accept funds or donations on its behalf - these nonprofit organizations are typically friends groups, community foundations, or library associations. They use public contributions and grants towards charity, education, the promotion of literature, and related administrative costs. Among other activities, these exempt organizations' charitable efforts are for improving public libraries, promoting literacy, and awarding scholarships.

Please Read: File Form 990-N, 990-EZ, 990, 990-PF Securely

Tax Deductible Contributions for Public Libraries

Public libraries and their associations are eligible to receive tax-deductible charitable contributions. The IRS requires a receipt written to donors who contribute over $250. You can give receipts or a “thank you” for lesser amounts if you choose, but the primary reason is for those planning to deduct their donation from their tax bill.

The tax receipt should contain the following information:

• Name and address of the organization
• Date the contribution was given
• The amount of a cash contribution or the description of a non-cash donation
• A statement of goods or services that are given in return for a contribution, if necessary

If there’s a donor that gives numerous small donations throughout the year, and their total amount is over $250, they will also need a written receipt for tax purposes. 501(c)(3) organizations or associations that are accepting contributions on behalf of a library will need to report individual donations of $5,000 or greater on Schedule B of their Form 990.

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How to Donate Tax Deductible Books to Libraries

One way to reduce the clutter around your office or home is to donate any old books you have to your local library - not only are you giving to a great cause, but you could also be lowering your annual tax bill.

Because the federal government classifies most libraries as nonprofit educational institutions, they are qualified charities that can receive tax-deductible, charitable contributions.

You can find information about your local library’s tax-exempt status through the IRS charity database, or speak with the library’s administrator. Here are some tips about donating books to a qualified, tax-exempt library:

Valuation of Books
Under normal circumstances, the IRS allows you to deduct the fair market value of your donated books. There aren’t many federal rules about what comprises a fair market value of an item; it’s typically an agreed price in the open market that’s considerably lower than the original value.

You can search second-hand shops or online stores to find prices for similar used items. In exceptional cases, your book may be worth more than fair market value. For instance, the author signed the cover or a page. You may want an appraisal for the book’s actual value.

Proper Recordkeeping
Like many other deductions, you need to provide proof to claim the credit. According to experts, if your contribution is less than $250, the library should give you a receipt displaying its name and address, the date you contributed, and a description of your donation. Your personal record should list the description along with how much you paid for the books and their fair market values.

With donations over $250, your receipt from the library needs to include any benefits or gifts given in return for your contribution. If your “Thank You” gift has monetary value, the IRS requires you to deduct the amount from the value of your donation. And any contributions totaling over $5,000 in books requires an appraisal for the fair market value.

Itemize Your Deduction
To properly claim a deduction for your book donations, you must itemize what you gave. Choosing standard deductions depends on your filing status and the standard changes for inflation each year - you typically want to itemize deductions if the amount is going to be larger than standard. But the choice is ultimately up to you - if you only donated a couple of novels that were just lying around, it may not be worth the extra effort to itemize.

Reporting Donations and Contributions
Taxpayers can report the value of their book donations on Schedule A, Line 17 of their personal tax return. If you’re donating a substantial monetary value, you may need to file additional forms and include an appraisal signature. For libraries reporting their received contributions, you can list donations worth $5,000 or more from any one donor on the Schedule B of your annual 990 form.

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Tax-Exempt Retention for Hospitals

With the most recent changes in tax-exempt requirements and healthcare reform, nonprofit hospitals are facing several challenges with exemption classification and retention. Experts say that nonprofit hospitals receive about $13 billion in tax exemptions annually - that’s a significant amount of money that law officials believe can efficiently fund federal, state, and local programs, if imposed.

However, the opposition argues that enforcing taxes on nonprofit hospitals will not only affect staff, medical programs, and equipment but also lead to higher payments for patients. Even though there is no mandated threshold, state laws typically expect a nonprofit hospital to provide charitable services that value over 1% of gross receipts.

Here are a few other suggestions from tax professionals about maintaining tax-exempt status for a nonprofit hospital:

• Comply with the new tax-exempt requirements established by the Patient Protection/Affordable Care Act (PPACA)
• Express the hospital’s capabilities of accepting Medicaid and Medicare patients and services for low-income patients
• Develop rebuttable cases that show reasonable compensation relationships
• Build and retain documents showcasing charitable benefits and charity care the hospital annually provides for the community
• Prove that any money received for community benefit purposes is used exclusively for that activity such as medical research or health education

State courts have also established reasons that can prevent tax-exempt entitlement for a nonprofit hospital:

• Little or no patients receive free or discounted care
• The value of free care provided is minimal
• Immediately refers unpaid bills to collections
• Charges full rates for uninsured patients
• Fails to provide straightforward benefits to the community it serves

It’s critical for board members to review their hospital’s methods and operations each year and ensure that they’re following the guidelines to classify as tax-exempt. It’s just as important as being compliant with the IRS and filing your annual 990 form with Schedule H.

ExpressTaxExempt’s cloud-based service allows nonprofit organizations and hospitals to file 990 forms, schedules, and extensions quicker and easier than paper filing. Contact our U.S. - based customer support team for any questions or assistance with electronically filing tax-exempt returns. Call us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message to support@ExpressTaxExempt.com.

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Reporting Organization’s Program Service Accomplishments

Part III of IRS Form 990 and 990-EZ requires you to report your exempt organization’s program service accomplishments. A program service is typically the major ongoing objective or mission of your nonprofit or charity. The IRS lists many examples of exempt services including

• A hospital's provision of charity care under its charity care policy
• A college's provision of higher education to students in a degree program
• And much more

Here are a few instructions directly from the IRS about reporting program services on your 990 tax return:

Organization’s Mission
You begin Part III by describing your organization’s mission as articulated in your mission statement or as adopted by your organization’s governing body. With ExpressTaxExempt.com, you also have the option of indicating if your group hasn’t established a mission.

Service Changes from Prior Year
You need to answer whether your tax-exempt group offered any new, significant program services not listed on your prior Form 990/990-EZ, or ceased conducting, or made major changes in how it performs, any program services. You can describe any new services or changes on a Schedule O.

Description of Program Services
You are responsible for describing program service accomplishments for three of your organization’s largest program services - if you have less than three, then describe for the number of services you do have.

The services you list are typically measured by the total expenses incurred, but you should include the following with your descriptions:

• Accurate measurements such as clients served, days of care provided, number of sessions or events held, or publications issued
• The service's objective for both the current period and a long-term goal
• Reasonable estimates for any statistical information if exact figures are not readily available

You need to be clear, concise, and complete with your descriptions. The IRS doesn’t recommend attaching any brochures, newsletters, or articles about your organization. If you need more space for explanations, you can use Schedule O.

Other Information
For each program service you list, you must also provide total expenses included on Part IX, and total grants and allocations, if applicable, included with your total costs. You’re also responsible for reporting any revenue derived directly from the service.

With ExpressTaxExempt.com, you can quickly and easily enter this information in minutes. Our application automatically generates your additional descriptions onto Schedule O and also calculates revenue, expenses, and grant values with the entries provided in the respective section.

Call our U.S. - based support team for any questions or assistance with entering program service accomplishments on your 990 form. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST - email us at any time with support@ExpressTaxExempt.com.

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Independent Audits for Financial Statements on Form 990

Within IRS Form 990, there is Part XII for financial statements and reporting. In this section, exempt organizations need to indicate whether their financial statements were compiled, reviewed, or audited by an independent accountant. And if so, whether the process was complete on a separate or consolidated basis, or both.

Independent Audits
An audit from an independent accountant is a thorough survey of a tax-exempt organization’s financial records, accounting practices, business transactions, internal controls, and accounts. The auditor or accountant cannot be a member or a regular employee of the organization but hired through a service contract.

Important: The auditor must also receive certification from either the American Institute of Certified Public Accountants (AICPA), the Public Company Accounting Oversight Board (PCAOB), or similar groups for accounting professions.

While conducting the independent audit, the accountant determines whether your organization’s financial statements follow “generally accepted accounting principles” (GAAP). These are established principles from the Financial Accounting Standards Board (FASB) - and if your exempt group doesn't follow these guidelines, the audit will report it.

Costs and Alternatives
The location and size of your tax-exempt group determine the expense of your independent audit. Fees are typically more than $20,000 for large organizations in metro areas and can even cost small nonprofits up towards $10,000.

Accountants can also provide a financial statement review or compilation instead of a routine audit. But if a third party, usually a donor, requires an examination, then a review or compilation may not suffice. Because most exempt organizations conduct audits every few years, it’s not entirely uncommon for a third party to accept just a review of financial statements.

Reporting to the IRS
As mentioned earlier, you simply need to indicate on your 990 form whether your organization had its statements reviewed, compiled, or audited during the tax year. With ExpressTaxExempt.com, it’s as easy as selecting either “Yes” or “No.” If yes, then choose the basis of the auditing process.

Our U.S. - based customer service team is available to answer any technical questions you have about e-filing with our cloud-based service - contact us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST, or send an email at your earliest convenience with support@ExpressTaxExempt.com.

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Start the New Year With a New Brand

A new year means new beginnings - and what better way to embrace the “new” than with a complete reboot of your nonprofit or charity?

Updating your organization’s brand can help with efficient communication, engage with a particular audience, or even keep your mission relevant with modern times.

When deciding to rebrand, you need to have a straightforward goal, and a plan to achieve it. Here are a few tips from the Internet about how to successfully change your organization's image:

Choose the Right Time to Rebrand
Though the start of the new year seems like an appropriate time for most, it isn’t necessarily right for all. Decide if your organization requires a change in needs or goals because a different branding will affect how your group operates.

Consider if your organization needs a mission update, if there’s a change in donor retention rates, or need a new opportunity to stand out. If so, then the lengthy process of rebranding may greatly benefit your charitable efforts.

Build a Brand Manual
A helpful device to have when rebranding is a brand manual or guide because you can create distinctive guidelines for your organization’s message and design. The voice of your nonprofit or charity should be consistent from print to digital, or even in-person.

Your brand manual can include communication techniques for social media and inform your team members about the organization’s new approach and vision. Be sure to establish a precise way of communicating which will give your audiences a better view of your tax-exempt group's purpose.

Change and Mix Things Up
Rebranding is the perfect time for your organization to stand out above the rest. Consider remodeling your nonprofit’s logo or creating a catchy slogan. The key is clearly expressing your group’s mission and values to your audience - refer to your brand manual about what you’re trying to convey to people.

Establish Fundamental Messages
Your organization’s essential messages work in multiple ways - they express the facts and goals of your strategy and vision, but it also displays your group’s legacy and personality. You should also be aware of what your audience values when creating key messages. Be able to strike a balance - your message is about the organization and work it accomplishes, but that information should also be relatable to your audiences.

Keep At It
Once you complete your rebranding, the changes must remain consistent, so everyone is familiar with the new look. Speak with your members throughout the entire process and consider their opinions. Have them all become knowledgeable of the new communication techniques - the more they know, the better they represent the organization.

Keep your audience up to date so when you finally implement the changes they aren’t confused with a different organization. Promote your new brand via websites and social media along with those essential messages which give your audience a better view of your goals and values.

Rebranding an exempt organization is a drawn out process that requires a considerable amount of time and effort. Even so, you still can’t neglect other responsibilities like filing your annual return with the IRS. ExpressTaxExempt.com offers cloud-based solutions for tax-exempt groups to electronically file 990 forms to the IRS quicker and easier than paper filing.

Contact our U.S. - based customer support for more information about how simple it is to complete and transmit Form 990, 990-EZ, or 990-N (e-Postcard) - call us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or submit a request through support@ExpressTaxExempt.com.

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Tips for Reporting Supplemental Financial Statements

Each time your organization answers “Yes” to a question on Form 990, Part IV, you’re required to complete the applicable schedule and provide explanations that are relevant to the question.

If your organization doesn’t have any further information to provide with a schedule, then you should answer “No” to the corresponding question on Form 990, Part IV.

Submitting a complete and accurate 990 form is critical to remain compliant with the IRS and to avoid any penalties or audits. Here are some key rules from the IRS about reporting important supplemental financial statements.

Donor Advised Funds
Tax-exempt groups that managed donor advised funds at any time during the tax year need to answer “Yes” to Line 6, Part IV. A donor advised fund or similar funds are accounts in which the donor, or someone appointed by the donor, has advisory privileges over the use of any portion of the account.

If information about donor-advised funds applies to your organization, you must provide the total number of managed accounts for the year, the aggregate value of contributions made during the year, the aggregate value of grants given during the year, and total aggregate value of funds at the end of the year.

Conservation Easements
A conservation easement is an agreement established for the purpose of conservation and preservation of property held by the organization. If you answer “Yes” to Line 7, Part IV, you need to explain to the purpose of the conservation easement held by your organization.

If you indicate that your organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year, you’re responsible for providing follow-up information such as the total number of easements and total acreage restricted.

Art and Museum Collections
Answer “Yes” to Line 8, Part IV, if your tax-exempt group maintained collections of works of art, historical treasures, and other similar assets at any time during the tax year. Be prepared to indicate revenue related to collections and assets related to collections reported under SFAS 116 (ASC 958).

You’re also required to state the significant use of the collection items, a description of the organization’s collections, and an explanation how they further the organization’s exempt purpose. And finally, report if items from the collection were sold to raise funds rather than maintained.

Escrow or Custodial Accounts
Organizations that have funds in an escrow or custodial account for other individuals or organizations, provides credit counseling services or debt management plan services, or acts as an agent, trustee, custodian, or another intermediary for contributions or other assets should answer “Yes” to Line 9, Part IV.

If your organization acts as an agent, you’ll need to enter the escrow or custodian fund details including beginning balance, addition amounts, distribution amounts, and ending balance for the year and also provide an explanation of the arrangement.

Endowment Funds
If your organization held assets in temporarily restricted endowments, permanent endowments, or quasi-endowments, you should answer “Yes” to Line 10, Part IV. You’re required to enter the amounts of the current year and prior year contributions, grants, administrative expenses, and asset transfers to the organization's endowment funds.

Report the estimated percentage of your organization’s total endowment funds and also provide information on other endowment funds that are not in your possession. Near the end, you need to describe the intended uses of the organization’s endowment funds.

With ExpressTaxExempt.com, you are guided effortlessly through each of these sections. If you answer “Yes” to any of the initial questions, our application presents the required follow-up questions, and your answers are entered in the generated schedules automatically.

Contact our U.S. - based customer support team for any questions or further assistance with e-filing your 990 form through our cloud-based service. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. Or reach us via email with support@ExpressTaxExempt.com.

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ExpressTaxExempt Wishes You All A Happy Thanksgiving!

We’re only a couple of days away from Turkey Day and the excitement of the upcoming holidays has us counting down with anticipation. In the spirit of goodwill, we like to say “Thank You” to each of our clients who e-filed using our services this past tax season.

Whether you tried us out for the very first time or have been e-filing with us for years, we are thankful and greatly appreciative of your continued support. Any tax-exempt groups that are looking for a more quick and secure way to file, ExpressTaxExempt is your premier, IRS-authorized e-file provider!

Form 990 Series
We support tax returns for exempt organizations based on your gross receipts:

• IRS Form 990 - Required for organizations with gross receipts equal to or over $200,000 and total assets equal to or over $500,000.
• IRS Form 990-EZ - Required for organizations with gross receipts less than $200,000 and total assets less than $50,000.
• IRS Form 990-N (e-Postcard) - Required for organizations with gross receipts less than $50,000.

We also support Extension Form 8868 for tax-exempt groups applying for an automatic 3-month extension or an additional, not-automatic 3-month extension. Remember, you must e-file your extension before the original IRS deadline, and tax extensions can only extend your time to file - not to pay any owed taxes.

Why E-file With ExpressTaxExempt?
We work closely with the IRS to provide the most streamlined filing experience available. Our service boasts unique features that you won’t find anywhere else such as automatic email notifications of filing status, bulk upload of contributions, internal error checks, and free transmittal of any rejected forms.

Check out a few of our short, easy read blogs this holiday season for more information about ExpressTaxExempt.com and e-filing 990 forms with the IRS:

• ExpressTaxExempt - E-file Solutions for Exempt Organizations
• Made a Mistake On Your Form 990? We've Got You Covered!
• Expert Assistance with Premium Support
• Form 990 Instructions for Exempt Organizations
• E-file Tax-Exempt Returns from Anywhere!

As with every year, we recognize major holidays so that our staff can be with family and friends. Our Rock Hill, South Carolina, headquarters will be open on Wednesday, November 23, during our regular hours of 9 a.m. to 6 p.m. EST; you can reach for any questions or e-filing assistance at 704.839.2321.

We will close our office for both Thanksgiving Day and Friday, November 25, with only limited email support available through support@ExpressTaxExempt.com. We wish all of you a safe and Happy Thanksgiving and thank you for choosing ExpressTaxExempt for your IRS 990 e-filings.

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Key Employees and Independent Contractors in Tax-Exempt Organizations

When filing IRS Form 990 or Form 990-EZ, tax-exempt groups usually have to report compensation of officers, directors, trustees, key employees, highest compensated employees, and independent contractors in Part VII of the tax return.

This section of the 990 form may come across as a bit tricky because each exempt organization can have different variables regarding members and employees such as no compensation, members with multiple roles, small payment thresholds, or even no significant key employees.

However, the IRS requires some information about the people working within your organization. Here are a few pointers to use:

Highest Paid Officers & Key Employees
Regardless of whether your current officers, directors, or trustees receive compensation or not, you’re going to need to list them. You’re also required to list any current key employees that made at least $150,000 during the year and the current top five highest paid employees making over $100,000.

Important: Your highest compensated employees are those within your organization who do not hold any officer or key employee titles like Treasurer, Secretary, or Director.

In some cases, you may have to list former members if they were active during the filing year, but left before the year was complete. List former officers, key employees, or highly paid employees who made at least $100,000. You can report former directors and trustees that were making over $10,000.

Independent Contractors
If your organization contracted any outside workers, the IRS requires that you report independent contractors that received at least $100,000 in compensation for services. The amounts must be the gross payments which can include expenses and fees - even if you don't separately report the spending costs to your organization.

IRS Information Forms: W2 Online Filing and 1099 Online Filing is simple now with streamlined features from our sister site, ExpressIRSForms.com. You transmit information returns for your employees or contractors directly to the IRS quickly than paper filing. Select our Postal Mailing option to have copies automatically sent to your recipients.

Volunteers
With e-filing 990 forms, you only need to report the total number of volunteers - there’s no need for individual names or details. Under particular circumstances, you don’t have to report any compensation paid to volunteer officers, directors, or trustees - speak with a tax professional for more details.

List your organization’s employees quickly and easily with ExpressTaxExempt.com. If you have any questions about entering key members or contractors, call our U.S. - based support team at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or email us anytime with support@ExpressTaxExempt.com.

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Final IRS Deadline for Tax-Exempt Groups is TODAY!!

The day has finally arrived for exempt organizations - the last BIG day to e-file IRS Form 990 and Form 990-EZ.

If your nonprofit or charity runs on a calendar tax year, and you filed Extension Form 8868 Part II this past August, then you have until midnight local time to complete your tax return.

Apply for Extra Time!
There may still be a chance for your tax-exempt group to e-file an IRS Form 8868 extension; however, your organization must follow a fiscal tax year with specific end dates. If your tax period ends on June 30, you’re eligible to e-file Form 8868 Part I and get an automatic 3-month extension.

If your organization’s tax year ends on March 31, and you filed an extension for the August deadline, you can e-file Form 8868 Part II for an additional, not-automatic 3-month extension. You’ll need to include a reasonable explanation why you’re requesting extra time.

Important: You can now e-file a tax extension from anywhere with your favorite iOS or Android device - download our FREE ExpressTaxExempt - Form 8868 mobile app. Tax extensions are not available for IRS Form 990-N (e-Postcard).

Benefits of E-filing with ExpressTaxExempt.com
As an IRS-authorized, e-file provider, we work closely with the IRS to provide the most streamlined filing experience. Access your account from anywhere at anytime. Our interview-style questions guide you through the entire process. We automatically generate required schedules for Form 990 and 990-EZ, and our internal audit check ensures your return is error-free. Get a printable copy of your form - even submit amended returns for prior year filings.

IRS Penalties
You must transmit your tax return by 11:59 pm local time to avoid any late penalty fees. If you have no choice but to file late, the IRS charges $20 each day your return is not sent - $100 each day if your organization’s gross receipts are greater than $1 million. Maximum penalties can go up to $50,000 or 5% of total revenues, whichever is the smallest amount.

For any questions or technical assistance with e-filing your 990 form, call our U.S. - based customer support at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or reach us 24/7 with support@ExpressTaxExempt.com.

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Simple Ways to Prevent Hefty IRS Penalties

No matter how much we all loathe it, there’s just no way to recover late filing fees and penalties paid to the IRS. In most instances, the IRS evaluates penalties on a case-by-case basis if you can provide valid reasons.

The best way to prevent any late fees with the IRS is to file your exempt organization’s annual tax return on time. But not everything goes that smooth in life, and that’s understandable - so here are a couple of ways you can still avoid late filing penalties.

Automatic & Not-Automatic Extensions
Without a doubt, the most simple method of preventing substantial fees from the IRS is e-filing an Extension Form 8868. You can get up to six months of extra filing time by submitting both parts of the form:

• Part I - Automatic 3-Month Extension
• Part II - Additional, Not-Automatic 3-Month Extension

The IRS Form 8868 tax extension only extends your time to file - not the time to pay any owed taxes. You must remember to file your tax return by the extended due date, and you are still responsible for paying any estimated taxes by the original deadline.

Important: Form 8868 cannot extend the deadline for small tax-exempt groups filing IRS Form 990-N (e-Postcard).

Facts & Circumstances
If you missed the chance to e-file a tax extension, your only option is to submit IRS Form 990 or Form 990-EZ as soon as you possibly can. You’ll still get penalized each day your return is late; however, you can use a Schedule O to try to reduce or eliminate fees.

The IRS looks for what they call “facts and circumstances,” which are reasonable explanations about why your organization filed late. They specifically want valid answers to the following:

• What caused the organization from requesting an extension of time
• How the organization utilize conventional business care and prudence, and is not neglectful or careless
• What steps the organization is taking to avert the same situation from happening again

Even though the process may take some time, providing these explanations could put you in a better position of leverage. In some cases, the IRS can completely waive penalties if delinquency was due to uncontrollable events - check with your local tax professional for more details.

While facts and circumstance can potentially save you, it’s still not as easy as filing an extension. With ExpressTaxExempt.com, you can complete and transmit your extension form, and get approved within minutes. And with our FREE downloadable ExpressTaxExempt - Form 8868 mobile app, you quickly and securely submit an extension on the go from your favorite iOS or Android device.

Our U.S. - based support team is available for any questions or assistance with e-filing - give us a call at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message with support@ExpressTaxExempt.com.

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Form 990 Instructions for Exempt Organizations

Tax-exempt organizations are required to file an annual tax return with the IRS - this form is known as the 990 series, and it reports an organization’s total revenue, expenses, and activities.

Submitting an IRS 990 form every year is essential for tax-exempt groups to maintain their exemption status.

Failing to do so can lead to severe IRS penalties including automatic revocation of exemption status. Filing with incomplete or incorrect information also yields the same consequences. Here are a few guidelines to remember when filing a 990 form.

Accounting Period
Tax-exempt groups typically need to file their tax return by the 15th day of the 5th month after their accounting period ends. An accounting period, or tax year period, is a consecutive 12-month period which an organization operates. There are two types of tax years - calendar and fiscal. You can contact the IRS tax-exempt hotline (877.829.5500) and ask for your organization’s specific tax year begin and end dates.

Gross Receipts
The type of 990 form the IRS requires depends on your organization’s gross receipts or total revenues. For tax-exempt groups making over $200,000 a year, IRS Form 990 is mandatory to file. Organizations with gross receipts between $50,000 and $200,000 can file IRS Form 990-EZ. And small nonprofits or charities with less than $50,000 are responsible for filing IRS Form 990-N (e-Postcard).

Requirements for a Complete Form 990
Preparing an accurate Form 990 or 990-EZ for your organization takes a considerable amount of time and paperwork. Both forms are several pages long depending on how many schedules you need to attach.

Along with your basic organization details, be ready to present information about program services, revenue, expenses, supplemental financial statements, net assets, balance sheets, a list of employees, other IRS filings, and tax compliance along with governance, management, and disclosures.

E-filing with ExpressTaxExempt
The best way to file a 990 form is through an IRS-authorized, e-file provider. ExpressTaxExempt.com is such a service offering cloud-based solutions to exempt organizations looking for a quicker and more accurate method of filing with the IRS.

The process is entirely simplified with interview-style questions, internal error checks, bulk upload of multiple contributions or donors, automatic schedule inclusion, real-time email notifications of filing status, and storage of transmitted returns.

You can invite board members to e-verify your completed form, and even gain access to a PDF copy after submitting to the IRS. If your return gets rejected, ExpressTaxExempt can point out the errors for you to correct and retransmit. You can even file amended returns for accepted filings if applicable.

It’s necessary for exempt organizations to remain current with their annual tax returns. ExpressTaxExempt.com makes it easy to e-file, but feel free to contact us at 704.839.2321, or through email with support@ExpressTaxExempt.com, for any questions about e-filing with the IRS.

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E-file Form 990-N Before the Year Ends!

E-file Form 990-N Before the Year Ends!

There are only two full months left within the year, and if your small tax-exempt organization needs to file a tax return, ExpressTaxExempt.com has you covered. It’s not too late to transmit your IRS Form 990-N (e-Postcard) before the end of the year!

IRS Form 990-N (e-Postcard)
The 990-N serves as an electronic notice and is for small organizations that make less than $50,000 - and that’s pretty much all you’re reporting to the IRS. There is no need for any exact amounts or schedules. The form is also electronic-only; you won’t find a paper version anywhere!

E-filing with ExpressTaxExempt.com
We make e-filing IRS Form 990-N (e-Postcard) as simple as 1-2-3! With our quick and easy steps, you can complete and transmit your form within minutes:

1. 1. Create a FREE account at ExpressTaxExempt.com
2. 2. Enter your Basic Organization Details
3. 3. Select the appropriate Tax Year
4. 4. Confirm your Gross Receipt
5. 5. Review Summary and Audit Report
6. 6. Authorize and Transmit to IRS

After submitting your 990-N, you’ll gain access to a printable copy of your e-Postcard summary and receive real-time email notification about your filing status. If the IRS rejects your e-file for any reason, we’ll identify the issue so you can make corrections and re-transmit at no extra cost!

IRS Penalties
There isn’t much of a penalty for filing Form 990-N (e-Postcard) late, which is why you still have until the end of the year to file. It doesn’t matter if your deadline was months ago - you’re still able to e-file.

There are consequences for not filing at all - fail to file for three consecutive years, and you’ll lose your tax-exempt status. You also can’t file an IRS Form 8868 extension form for e-Postcards. If you can’t file before the deadline, be sure to file as soon as possible afterward.

Important: The IRS e-filing system only supports three consecutive filing years at a time. As the new year begins, the oldest year gets dropped from support. These final two months will be the last time an organization can e-file for 2013. Your only option is to paper file IRS Form 990-EZ for any discontinued years.

Feel free to contact our U.S. - based, e-file professionals for valuable assistance or to answer questions about e-filing a 990 form. You can reach us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or 24/7 day and night with support@ExpressTaxExempt.com.

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Common Form 990 Filing Mistakes

Preparing an IRS Form 990 takes a great deal time. The entire form itself is many pages long and littered with tons of IRS instructions, legal terms, and small print that can contribute to a stressful filing experience.

IRS forms are complicated, but providing complete and accurate information is key to avoiding IRS penalties. Here are three sections of the 990 form where people typically make the most mistakes, and how you can navigate through the difficulties.

Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
A lot of people seem to get confused at this part of the Form 990 because of the many classifications - some organizations may have one member with many roles, or don’t have any key employees, or don’t offer compensation at all.

For the majority of exempt organizations, you must list all your current officers, directors, and trustees first - whether they were paid or not. You need to include employees outside of an officer, director, or trustee role that were paid the highest along with amounts reported on their W-2.

Other situations may require you to list former officers or highest compensated employees that made over $100,000 during the tax year or former directors or trustees that made over $10,000 within the tax year. You’ll also need to list any hired contractor that was paid at least $100,000.

Part VIII - Statement of Revenue
A statement of revenue is exactly how it sounds; you’re stating every dollar amount your organization brought in during the tax year. It’s broken down into three broad categories:

• Contributions, Gifts, and Grants - Money or the monetary value of items freely given to your organization by people or the government
• Program Service Revenue - Money paid to your organization for providing a service or product related to your tax-exempt operations
• Other Revenue - Money made from your organization through various ways like investments, royalties, rental properties, gaming activities, or inventory sales

There’s also a section for miscellaneous revenue, and this is what messes with people the most. Be sure to double, even triple, check your organization’s sources of income to make sure they fit within those three most important categories. If it doesn’t fit, that’s the only time you can count it as miscellaneous. Grouping any or every large sum as miscellaneous can harm your public charity status and even lead to an audit.

Part IX - Statement of Functional Expenses
Much like the statement of revenue; this time around, you’re stating each time your organization spent money. There aren’t any broad categories you can group expenses into; however, the IRS lists various cases in which an organization may need to spend money. And just like revenue, make sure your costs can fit the given conditions - lumping everything as a miscellaneous expense is like waving a red flag.

With ExpressTaxExempt.com, we break these parts down into full, stand-alone sections, so you aren’t squeezing everything into one page or one screen. We even offer our exclusive Bulk Upload feature in which you can upload lists of received contributions at once, and we’ll enter each of them in for you while you continue through your 990 form - get twice as much done in less time!

Contact our U.S. - based support team of e-file professionals for any help or questions about your filing experience. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or reach us via email with support@ExpressTaxExempt.com.

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Foreign Charities Filing 990 Forms

In the nonprofit sector, it’s common knowledge that your tax-exempt organization must file an annual return with the IRS - this form reports your organization’s total revenue, expenses, and activities. But if your exempt organization is considered foreign, then filing may be different than your domestic counterparts.

What is Considered a Foreign Charity?
A foreign charity or nonprofit is an organization created outside of the United States, or any of its territories and possessions, which claims tax-exempt status on revenue earned within the United States. A big difference between domestic and foreign charities is that US contributions to foreign organizations are not tax deductible.

Why Should a Foreign Charity Have to File?
Foreign organizations are required to file an annual 990 return if the IRS recognizes it as tax-exempt, it receives more than $50,000 in gross receipts from U.S. sources, and it engages in significant activity within the U.S. other than investment activities.

If your foreign charity makes less than $50,000 in the U.S. or doesn’t participate in important US activities, you may be relieved from filing or choose to submit an IRS Form 990-N (e-Postcard).

For those who want or are required to file, you must report values in U.S. currency along with the conversion rate your organization uses. Combine amounts that come from both outside and inside the United States and give the total for each - your information must also be submitted in English.

Which 990 Forms Should Foreign Charities File?
Based on your gross receipts from U.S. sources, you are required to file the same types of forms as domestic exempt organizations:

• IRS Form 990 - U.S. gross receipts are over $200,000
• IRS Form 990-EZ - U.S. gross receipts are between $50,000 and $200,000
• IRS Form 990-N (e-Postcard) - U.S. gross receipts are less than $50,000

Important: Like many other domestic organizations, if your foreign group is a private foundation or subject to unrelated business income tax, you’ll file IRS Form 990-PF or Form 990-T respectively.

With ExpressTaxExempt.com, complete and transmit your foreign organization’s 990 return in a secure and accurate way that is quicker than paper filing. Our cloud-based service even supports physical addresses located outside the United States. We also scan your entire form for any errors so can send a proper filing the first time around.

Feel free to contact our U.S. - based, e-file professionals at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST, with any questions or help with your 990 tax return. We also offer 24/7 email support with support@ExpressTaxExempt.com.

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3 Keys to Gain More Donors

3 Keys to Gain More Donors

In the nonprofit industry, it’s standard practice to request for donations or contributions - and there are many ways to secure supporters. One way that’s least chosen by small organizations is cringe-worthy persuasion.

When thinking about persuasion, most of us picture being sold something by any means necessary - or someone overly aggressive and a bit sleazy. But mainly, persuasion is getting someone to believe in something as much as you do.

And we persuade more than we probably think - any time you casually talk about your organization to someone, when explaining what you do, or when you acquire volunteers and members. Keep these three keys in mind the next time you need potential donors to become believers.

Convey Your Faith & Purpose

Remember your reasons for starting your nonprofit or charitable organization. Why do you want to make a difference or leave an impact? There clearly has to be a love or passion for the goals your organization is attempting to achieve. You don’t necessarily need to be extremely eager or excited, but understand that people can sense when you’re speaking with genuine interest rather than regurgitating facts.

Utilize the Three Cs

To keep your conversation on track, remember to be clear, concise, and calm - the three Cs. Consistency is important here - you’ll lose your potential donor by contradicting something you said earlier. Refrain from over sharing anything that doesn’t drive your point, and if you happen to be shy or an introvert, practice a few times until the process becomes natural.

Aim Beyond Donations

When speaking about your exempt organization, donations should be the bonus - not the goal. Your objective should be to get the donor enthusiastic about your nonprofit as much as you are. Nonprofits typically establish and maintain relationships with potential donors - you might not get that check right after the first meeting, but in the long run, the money will come as others begin to believe in you more.

After you’ve built donor relationships and start receiving donations, visit us at ExpressTaxExempt.com where you can enter or bulk upload your list of contributions, gifts, and grants. According to the IRS, you must report donations greater or equal to $5,000 on your IRS Form 990/990-EZ - you also need to submit donor information such as name and address for each contribution you report.

Our U.S. - based, customer support team are available to assist you with contributions or any other questions about the e-filing process. Give us a call at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also contact us via email with support@ExpressTaxExempt.com.

Related Blog: Tax Tips for Nonprofit Volunteers

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