How To Help With Hurricane Dorian Relief Efforts

Widespread attention has been on Hurricane Dorian, its path, effects, and destruction.

After causing mass destruction within 48 hours of landfall in the Bahamas as a Category 5 storm, the hurricane has been reduced to a Category 2 but is now making its way towards Florida’s northeastern coast and possibly, the Carolinas.

According to CBS News, seven people have died, thousands of homes are believed to be damaged or destroyed, and thousands do not have drinking water.

The Bahamas and other areas that will be affected by this storm need your help! Here are a few ways on how to help with Hurricane Dorian relief efforts.

How To Help With Hurricane Dorian Relief Efforts

“The most urgent needs at this time are shelter, food, water, and communications…” said Stephen McAndrew, Deputy Director for the Americas of the International Federation of Red Cross and Red Crescent Societies.

Relief Efforts in the Bahamas

Know that making a donation will help victims directly by donating to a charity or hurricane relief effort near the area of devastation. These are a few location-based relief efforts that could use your support: 

Bahamas Red Cross

The Red Cross of Bahamas currently has 200 volunteers on-site in the Abaco Islands and Grand Bahama. Online donations can conveniently be made, here.

GlobalGiving

This initiative has set up a disaster relief fund that supports people impacted by the hurricane. With a total goal of $2 million dollars, GlobalGiving will use donations to provide emergency supplies.

Note: All donations to this fund will exclusively support relief and recovery efforts. 

Grand Bahama Disaster Relief Foundation

Created by the Grand Bahama Port Authority, this foundation gives necessary insight on how to help with relief efforts as well as providing a list of locations where donations can be dropped off in the United States. 

HeadKnowles

Based in the Bahamas, this organization facilitated relief operations during Hurricane Matthew & Hurricane Joaquin. Online donations can be made here.

The Salvation Army

Always there providing emergency assistance to survivors and first responders, The Salvation Army can always utilize donations as they stay on the frontlines of the crisis. 

You can easily make a donation towards relief efforts in the Bahamas or the United States, here. 

World Central Kitchen

Led by Chef José Andrés, the World Central Kitchen relief team has arrived in Nassau and will provide food to those affected by the natural disaster. Mobile kitchens will be set up on the affected islands. Click here to donate.

About ExpressTaxExempt

We do more than just help you help others; ExpressTaxExempt is dedicated to providing the best and most efficient e-filing experience for tax-exempt organizations.

We help you remain tax-exempt and free from IRS penalties. Create an account or sign in today to handle your nonprofit organization’s tax filing needs.

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Tips You Need to Know About Fundraising For Nonprofits

Fundraising for your nonprofit can be exciting and rewarding, especially if you have an inside scoop on how to take your fundraising efforts to the next level. We have gathered some simple tips you need to know about fundraising for nonprofits. 

Tips You Need to Know About Fundraising For Nonprofits

Set Goals & Deadlines

The first step you should take when planning a fundraiser is to set your goals and deadlines to reach them more quickly. Before reaching out to potential donors for their support, be sure to determine the amount you are attempting to raise, and when you need it by. Give donors just enough time to donate, but not too much time. Typically, a sense of urgency helps raise more money in a quicker amount of time.

Know Your Audience

Knowing your audience plays a significant part in the success of any fundraising effort. Nonprofits who understand their audience tend to raise more money than those who do not.

Engage With Donors

Forming a good relationship with a donor can benefit your nonprofit organization significantly and allow you to help even more people in your community by engaging with donors. To learn about how to engage with donors, click here.

Host a Fundraiser

Fundraising events are a great opportunity to network with current and potential donors as well as the community face-to-face. With many unique ways to fundraise for your nonprofit, you can easily find the perfect fundraiser that your audience would enjoy.

Provide Convenient Donation Methods

As a nonprofit organization, it is critical to invest in convenient donation methods for your donors. Transitioning from traditional to online fundraising is more straightforward than you might think. It will increase your donor base from just the local community to national.

Thank Your Donors

“Thank You” goes a long way! Be sure to thank your donors for their contribution briefly and compellingly. This can be done via email or letter and should be sent soon after their contribution has been received.

Show The Impact Made

Once you have completed your fundraiser, don’t just move on to the next project. Donors like to see the positive effects of their contributions. Show the impact your nonprofit organization made with the proceeds of the fundraiser and also increase your chances of future donations.

A Helping Hand

Be sure to save those receipts when planning a fundraising event and know that ExpressTaxExempt is always here to be a consistent resource to you and your organization for all things tax exempt!

Visit our website for any tax forms that your tax-exempt organization may need throughout this year and save even more when you e-file with our recently reduced filing rates!

Register For My Free Account!

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What You Need To Know About Filing For Exempt Status With The IRS

As a non-profit organization, it is imperative that you file and maintain your tax-exempt status with the IRS. Since filing for your tax-exemption status is a detailed process we are sure you have a few questions. To avoid spending hours searching for accurate information, we have researched for you, so here is everything you need to know about filing for your tax-exemption status.

What You Need To Know About Filing For Exempt Status With The IRS

Here are the top seven questions most nonprofit leaders have when it comes to filing for exemption status. All information shared has been provided directly from the Internal Revenue Service at www.irs.gov:

1) Nonprofit and Tax-Exempt Status...Is There a Difference?

Nonprofit status is a state law concept. Nonprofit status may make an organization eligible for specific benefits, such as state sales, property and income tax exemptions. Although most federal tax-exempt organizations are nonprofit organizations, organizing as a nonprofit organization at the state level does not automatically grant the organization exemption from federal income tax.

To qualify as exempt from federal income tax, an organization must meet requirements outlined by the Internal Revenue Code.

2) How Can My Organization Be Recognized as Tax-Exempt?

To be recognized as exempt from federal income taxation, most organizations are required to apply for recognition of exemption. For section 501(c)(3) organizations, the law provides only limited exceptions to this requirement.

Applying for recognition of exemption results in formal IRS recognition of an organization’s status, and may be preferable for that reason.

3) What Form(s) Should I File For Exemption Status?

Most organizations must file one of the following specific Forms to receive tax-exemption status:

• Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code (for charitable organizations; see instructions)
• Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code (instructions)
• Form 1024, Application for Recognition of Exemption Under Section 501(a) (instructions).

Click here to find out which application your organization is required to submit.

4) Where Should Exemption Applications Be Sent?

Send your completed exemption application to the address stated in the instructions to the application form:

Internal Revenue Service
P.O. Box 12192
Covington, KY  41012-0192

Express mail or a delivery service address:

Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011

5) Can My Application Be Expedited?

Generally, applications are processed in the order received by the IRS. Sometimes, however, the IRS will expedite the application process for valid, compelling, and legitimate reasons.

A request for expedited processing must be made in writing and must fully explain the reason. Reference Expedited Application Processing for more information.

6) Is it Required That My Organization Has a Tax-Exempt Number?

No, unlike some states that issue numbers to organizations to indicate that these organizations are exempt from state sales taxes, the IRS does not issue numbers specifically for exempt organizations. While the IRS does issue Employer Identification Numbers (EINs), these are merely a unique identifier, similar to a Social Security number.

Applying for and receiving an EIN does not indicate an organization's tax status; however, your organization needs an EIN to apply for tax exemption.

7) Do Government Entities Need To Apply For Exemption?

Most state and local government entities are not required to pay federal income tax. For non-tax reasons, though, government entities are sometimes asked to provide a tax-exempt number or determination letter to prove their status as a tax-exempt organization.

State and local governments are not required to apply for this exempt status, however. As discussed in ‘Affirmation of Your Tax-Exempt Status,’ the IRS will issue a letter describing the tax status of government entities. Most organizations and individuals will accept this letter as the substantiation that they need. No application is required, and no fee is associated with this letter.

Now that you have what you need to know about filing for exemption status be sure to sign up for your free ExpressTaxExempt account to handle all of your Form 990 tax filing needs! Sign up today and maintain tax compliance with ease!

Register Today!

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Last Minute IRS Form 941 Filing For Nonprofits

The big IRS Form 941 2018 1st Quarter filing deadline is officially here! If your tax-exempt organizations employ individuals to help carry out the mission of your group, you need to file Form 941 for 2018 by midnight TONIGHT or face major IRS penalties.

If you do not file Form 941 by April 30, 2018, your organization could find itself responsible for paying Form 941 Penalties to the IRS. Avoid IRS penalties by e-filing Form 941 with ExpressTaxExempt’s sister product, TaxBandits.

If you are not ready to file your 941 Form 2018, try not to panic... yet. TaxBandits has a tax filing solution that will not require an all-nighter leaving you looking crazy in the morning.

Time is winding up so let’s tackle last-minute IRS Form 941 filing for nonprofits together!

Last Minute IRS Form 941 Filing For Nonprofits

The 411 on IRS Form 941

Kind of rhymes, right? Well before we start creating a 941 Form 2018 jingle or talk about how to handle filing Form 941 for 2018, let’s review who is required to file and what it entails.

IRS Form 941, Employer’s Quarterly Tax Return, is used to report employment taxes quarterly and assists with calculating the employer’s portion of Social Security and Medicare tax.

The first quarter deadline for this year is April 30 and covers the months of January, February, and March.

E-Filing Checklist

When preparing to file, be sure to go over the Form 941 for 2018 checklist, as the following information is required to complete it:

• Total Employee Count
• Medicare Tax and Social Security
• Deposit Made to the IRS
• Tax Liability (Monthly/Semiweekly)
• Signing Authority Information
• Online Signature PIN or Form 8453-EMP

Steps To E-File Form 941 for 2018

Filing IRS Form 941 2018 with TaxBandits is simple! Just follow these steps to complete your quarterly filing:

1. Sign in or Create your TaxBandits account
2. Select “Form 941”
3. Add employer details
4. Choose tax year/quarter
5. Follow Interview-Style Process
6. Enter the deposit made to the IRS
7. Enter your deposit schedule and tax liability
8. Add your online signature PIN or complete Form 8453-EMP
9. Review, pay and transmit your form directly to the IRS

Signing Form 941 Online

When you file Form 941 online you are required to electronically sign your form before transmitting to the IRS. There are two ways you can do this with TaxBandits. You can use your IRS online signature PIN or use Form 8453-EMP. 

To use Form 8453-EMP simply download it, fill it out, and re-upload it to the system. The entire process only takes about a minute.

Failure-To-File Penalties

Failing to file Form 941 by its deadline can affect an organization negatively. For example, if you fail to file your 941 Form by midnight, your organization will incur a penalty of 5% of the total tax amount due. An additional charge of 5% per month will also be charged for each month that the return is not submitted to the IRS. This fee can accumulate for up to 5 months.

Furthermore, if you failed to pay an owed tax bill, you will initially be charged an additional 5% of the unpaid tax amount. This fee will also increase each month that the payment remains unpaid.

ExpressTaxExempt understands what it takes to run a nonprofit organization and wants to help make handling tax filings one component that you don’t have to be stressed over.

Filing Form 941 with our sister product TaxBandits is easy! Plus, if you need any assistance, our US-based support team is standing by ready to help you.

File IRS Form 941 2018 Before Midnight!

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New Technology That All Nonprofits Need To Know About

Last week over 2,000 of the best and brightest nonprofit professionals from around the world gathered at the Morial Convention Center in New Orleans, Louisiana for the 2018 Nonprofit Technology Conference.

Commonly referred to as the “NTC” this conference provides an avenue for individuals to collaborate, innovate, and discover new ways to spark change in the nonprofit industry with technology.

With over 130 sessions offered at this year’s conference, attendees could gain insight and obtain skills in areas such as information technology, leadership, programming, fundraising, and development, as well as marketing and communications.

Outside of these dynamic sessions were hundreds of exhibitors presenting their newest and most innovative technology for growing nonprofits.

New Technology That All Nonprofits Need To Know About

Here are some of the top sponsors and exhibitors from the 2018 NTC: 

1) Microsoft - Microsoft is committed to providing solutions, partnerships, and support to nonprofits through a variety of technological products, including Azure, Dynamics 365, Enterprise Mobility, Power BI, Surface, and more.

2) Blackbaud - Blackbaud is the world’s leading cloud software company powering social good and providing nonprofit solutions in areas such as fundraising and relationship management. Click here for more information on the resources they offer nonprofits.

3) Engaging Networks - Founded in 2000, Engaging Networks is a flexible and innovative software platform for nonprofits. Engaging Networks also provides nonprofits with a complete toolset for digital engagement for online fundraising, advocacy, email marketing, P2P, and events.

4) DonorPerfect - Engage your donors with this awesome software designed to supercharge your nonprofit’s fundraising initiatives and cultivate valuable relationships through the fundraising growth platform, DonorPerfect.

5) Neon - NeonCRM is a cloud-based nonprofit software suite that provides tools built to support the work that nonprofit organizations do through engagement with donors, managing memberships, planning events, tracking volunteers and more.

6) PayPal Braintree - Designed specifically for nonprofits, PayPal Braintree provides fast and easy ways to fundraise online with discounted transaction rates for registered 501(c)(3) charities. Learn how PayPal Braintree can benefit your nonprofit here.

7) ActBlue - The ActBlue Charities extension (AB Charities) is a free service that makes it easy for any organization to run an advanced, modern fundraising program online. Click here to find out how AB Charities can help your organization.

8) EveryAction - Built and supported by nonprofit experts, EveryAction offers tools to nonprofits of all sizes to optimize their interactions with supports and prospects, which lead to the best outcomes for the organization.

9) Giveffect - Giveffect is the #1 all-in-one nonprofit software, leading in areas such as fundraising, events, online donations, offline gift tracking, volunteer management, donor management and constituent relationship management software. Experience a radically better way to manage your nonprofit when you use Giveffect!

10) See3 - See3 focuses its efforts on supporting 501(c)(3) organizations by helping to improve their digital communications strategies, increase connections with constituents, and magnify their impact.

2019 Nonprofit Technology Conference

Mark your calendars now and start making plans to attend the 2019 Nonprofit Technology Conference on March 13-15, 2019 at the Oregon Convention Center in Portland, OR. 

The takeaways from this conference are endless and beneficial to nonprofits of all types. Did you attend the 2018 NTC? Tell us about your favorite exhibits in the comments below.

As you prepare for upcoming conferences and nonprofit events this summer don’t forget about the Form 990 deadline on May 15th for organizations with a calendar tax year (January - December).

ExpressTaxExempt is here to help you with your 990 filings and provides an easy, simplified, and secure filing process.

You help others daily, now let us help you!

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Is My Nonprofit Responsible For Filing 1099 Forms?

If nonprofit organizations are exempt from taxes, are they responsible for filing 1099 forms?

Has this question ever crossed your mind?

Nonprofit organizations are exempt from a lot, but filing 1099 Forms are not one of them.

Used by business owners to report non-employee compensation of $600 or more to an independent contractor, nonprofit organizations also utilize 1099 Forms to report prizes, awards, and additional payments.

What is a Form 1099-MISC and When Is It Due?

Before you try to rush and research tons of information on 1099 Forms, ExpressTaxExempt is here to help you and give you all of the information that you need. So let’s get to it:

The original due date for reporting nonemployee compensation was January 31, 2018. However, the other types of payments reported in Box 7 of a 1099 Form must be e-filed by Monday, April 2nd to include the following payments:

• Prizes and Awards (for non-employees)
• Professional Service Fees 
• Attorney, Accountant, Architect, or Engineer Fees
• Fees paid by one professional to another (fee-splitting or referral fees)
• Taxable fringe benefits
• Payments to an insurance salesperson, and more. 

Form 1099 Series (MISC, INT, DIV, R, S, B) forms must be e-filed with the IRS by Monday, April 2nd.

How Can I File By The Deadline?

With Easter right around the corner and so many opportunities to serve your community this season, I am pretty sure the last thing on your to-do list is filing your taxes.

Luckily, our sister product allows you to file your 1099 Form so quick that you don’t have to worry about missing the deadline!

Steps to file Form 1099 are as follows:

• Create or sign in to your TaxBandits account
• Select "Form 1099-MISC"
• Enter payer details (name, EIN, address)
• Enter recipient details (name, SSN/EIN, address)
• Enter federal details for miscellaneous income
• Enter state information and state taxes withheld for each applicable state
• Choose for the form to be mailed to the recipient
• Review, pay and transmit return directly to the IRS

Information Needed To File Form 1099

You will only need four categories of information to file Form 1099 correctly:

1. Payer Details: Name, EIN, and Address
2. Recipient Details: Name, EIN/Social Security, and Address
3. Federal Details: Miscellaneous Incomes and Federal Tax Withheld
4. State Filing Details: State Income, Payer State Number, and State Tax Withheld

What Matters Most

You are working hard to improve your community health and well-being, don’t let taxes hold you back.

For all that you do, we make keeping your exempt status easy! File your 1099 Forms with TaxBandits and get back to helping others. 

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What Every Nonprofit Needs To Know About Form 1099-MISC

Did you know that as a nonprofit organization, you are responsible for issuing 1099 information forms just like a business? 

It’s true! Nonprofits who have paid $600 or more during the year to a non-employee for services must file and provide a 1099-MISC Form by the January 31 IRS filing deadline. Non-employee payments include fees that are paid to temporary services, consultants, performers, etc.

Helping your organization remain in compliance with the IRS, ExpressTaxExempt has gathered some very informative details regarding Form 1099-MISC that are beneficial to your organization.

 

Everything You Need To Know About Form 1099-MISC

Form 1099-MISC is used to report payments for services performed for a business by people not treated as its employees and includes miscellaneous income such as payments made to subcontractors wages, rental payments, prizes, awards, or substitute payments in lieu of dividends.

When is Form 1099-MISC Due?

You have until January 31 to file Form 1099-MISC and provide a copy to the recipient. Other deadlines for 1099-MISC include:

• Paper file with the IRS by February 28, 2018
• E-file with the IRS by April 2, 2018

What Information Do I Need to Complete Form 1099-MISC?

The following information is required to e-file Form 1099-MISC:

• Payer Details: Name, EIN, and Address
• Recipient Details: Name, EIN/Social Security, and Address
• Federal Details: Miscellaneous Incomes and Federal Tax Withheld
• State Filing Details: State Income, Payer State Number, and State Tax Withheld
• 
  

Where Should I File Form 1099-MISC?

The best way to file Form 1099-MISC is through our sister product, TaxBandits! When you file with TaxBandits, you won’t miss the deadline! They provide all the 1099 tax returns you need online along with step-by-step e-filing instructions so you can instantly complete your returns and transmit them directly to the IRS. 

How Do I File Form 1099-MISC with TaxBandits?

Filing your 1099-MISC Form with TaxBandits is quite simple. Follow these steps and your Form will be completed in no time!

1. Create or sign in to your TaxBandits account
2. Select "Form 1099-MISC"
3. Enter payer details (name, EIN, address)
4. Enter recipient details (name, SSN/EIN, address)
5. Enter federal details for miscellaneous income
6. Enter state information and state taxes withheld for each applicable state
7. Choose for form to be mailed to recipient
8. Review, pay and transmit return directly to the IRS

Can I Make Corrections to My Form After Filing?

If a 1099-MISC Form is rejected due to errors or incorrect information being filed, our service allows you to file a new form correcting the 1099-MISC errors immediately. Simply refile the form and use the provided indicators to make the necessary corrections through our comprehensive software. 

What Happens if I Submit Form 1099-MISC late?

A penalty will be enforced if you fail to file Form 1099-MISC by the filing deadline. Penalties will also be given if you fail to include all required information, if the return contains incorrect information, or if the Form is filed on paper when it is required to be filed electronically.

Penalty amounts range from $30 to $1,500,000 and are based on the size of the organization and the date on which the form is filed.

We’re Here To Help

As always, ExpressTaxExempt is here to help your organization in any way that we can. Contact our U.S. - based support team for any other questions or concerns about filing Form 1099-MISC - we’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message at your convenience with support@ExpressTaxExempt.com.

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How To Strengthen Your Nonprofit Leadership

Many organizations recently completed a successful first quarter of service and are preparing for an exciting remainder of the year making a difference in their community. Some organizations may even have newly elected leaders lined up and ready to take the group to the next level. 

Good leaders strive to leave their organization in good standing and provide future leaders with ample information to ensure a smooth transition. While some organizations in this predicament may have a transition method in place to train new leaders, there are others that may need or want to implement some useful strategies to ensure the core leadership of their group remains solid. 

Strengthening the development of your organization’s leadership will result in a greater impact on the organization’s mission, increase overall revenue, and provide concrete stability which nonprofits need. 

ExpressTaxExempt understands that your purpose and mission is to help others, so we’ve provided some ways on how to strengthen your nonprofit leadership. 

How To Strengthen Your Nonprofit Leadership

BE ORGANIZED

Prior to beginning the new fiscal year for the organization, try your best to make sure things are organized so that leaders can focus on their duties without having to go against any unnecessary roadblocks. 

SET GOALS & OBJECTIVES FOR THE YEAR

It is important to have realistic goals and objectives in place at the beginning of the year. Your organization will never reach its full potential without a clear vision and attainable goals. 

LEADERSHIP TRANSITION MEETING

This type of meeting involves immediately past and newly elected leaders of the organization. During this meeting, past leaders will give one-on-one training and insight to the new leader that will be taking on their [former] role. 

Having a Leadership Transition Binder is a great tool and gift to incoming leaders. This binder provides new leaders with all of the documents they will need to be successful in their new role. 

Information such as general “must-haves” like the organization’s bylaws, calendar of events, etc. as well as specific documents would be helpful. 

INFORM NEW LEADERS OF KEY EXTERNAL RELATIONSHIPS

Leadership roles that require working relationships or contacts with other leaders outside of the organization should be provided on a Contact Sheet. 

The contact sheet should be provided with contact information including the person’s name, title, email address, and phone number for each individual. 

WORK HARD, PLAY HARD

To be successful in the nonprofit sector, you must be determined, hardworking, and passionate about what you do and those you serve. Although you must work hard to be effective, it is just as important for you and your team to “let your hair down” and enjoy each other’s company. Working too hard, and eventually becoming “burned out,” will affect everything you do in a negative way at some point. 

The ExpressTaxExempt team avoids this issue by doing fun team activities every Friday afternoon. For the last hour of the workday, our team splits into two groups and compete against each other in a variety of action-packed games. From charades to volleyball, these enjoyable moments together not only inspires further teamwork but also brightens the morale of the workplace and eliminates monotony in the office. 

We’re Always Here to Help

As you’ve probably noticed, we end almost all of our blogs with the reminder that we are here to help you...because we really mean it! The ExpressTaxExempt team is always just a phone call, email, or chat away if you ever have any questions or need assistance during any part of the e-filing process. 

Feel free to contact our support team of e-file experts at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us 24/7 via email with support@ExpressTaxExempt.com.

We hope that these useful tools and tips will be beneficial to the leadership of your organization. Don’t forget to maintain your tax-exempt status annually by filing with ExpressTaxExempt. Best wishes to your team as you prepare for the new year!

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Keep Your Nonprofit Off The IRS Radar with These Tips

More often than none, I find myself speaking to the head of an organization whose nonprofit status was revoked. It came as a complete surprise them — he thought the organization was in good standing, but ever since the officer who handled their tax filings left, no one had actually checked.

Unfortunately, this isn’t a rare case from my experience. There are many nonprofits who aren’t aware of everything it takes to stay in compliance with IRS requirements — and sooner or later, they get the dreaded “status-revoked” letter in the mail.

If you’re unsure whether your nonprofit is in good standing, you’ve come to the right place.

In this post I’ll cover why compliance is mandatory, the risks of noncompliance, and a comprehensive checklist to ensure your nonprofit stays compliant every year.

Nonprofit compliance laws are put in place to protect the public and ensure nonprofit organizations do not abuse their financial advantages. The ability to be exempt from federal and state taxes, along with having access to public funding, causes nonprofits to be held to a high standard by the government.

Why Do Nonprofits Have to Stay Compliant?

Nonprofit compliance laws are put in place to protect the public and ensure nonprofit organizations do not abuse their financial advantages. The ability to be exempt from federal and state taxes, along with having access to public funding, causes nonprofits to be held to a high standard by the government.

Following these necessary compliances is also a vital component to the success and effectiveness of a nonprofit organization.

The Penalties for Noncompliance Aren’t Worth The Risk

Although 501(c)(3) nonprofits receive major financial benefits from becoming an incorporation, the penalties they can receive for not complying are very serious and can become rather costly.

GIF via GIPHY

To stay compliant, nonprofits must submit the appropriate tax form for their organization in the Form 990 Series. This form collects information about the income and expenses of an organization as well as other pertinent information. Failure to file this form annually can result in a number of significant penalties, such as:

• A fine of $20 per day
• Automatic revocation of 501(c)(3) status if the form is not filed for three consecutive years.

• States can administratively dissolve a nonprofit corporation and impose high financial penalties. Organizations can also be prevented from receiving grants or large donations.

This Nonprofit Compliance Checklist Covers Everything You Need to Know   

GIF via GIPHY

In order to avoid noncompliance penalties or revocation of your organization’s tax-exempt status from the IRS, there are several things that must be taken care of annually for your organization.

Here is a checklist of everything you need to do to ensure your nonprofit is compliant with the IRS every year. It’s a good idea to save this checklist for your reference:

• Gather your organization’s records (financial records, organization information, etc.).
• You can gather and update your records anytime during the year.

• Ensure your current tax exempt status is up-to-date.
• File the Form 990 Series (990-N, 990-EZ, 990 or 990-PF) annually.
• Review your State Nonprofit Requirements and ensure your registration is updated.
• Submit an Annual Filing Form to the Corporation Division of the Secretary of State. Depending on your state, filing requirements may differ. Contact your state for details.
• Register and maintain a License to Fundraise (Charitable Solicitation Registration).
• File for a State Business License.
• Maintain State-Level Tax Exemption with your State Revenue Department.
• Keep accurate & complete records and also have procedures in place to keep these records updated.
• Some examples of records to keep include: Contributors Information, Expenses, Grants Written & Received, Accrued Expenses & Revenue, Bank Statements, Cancelled Checks, IRS Letter of Determination, Form SS4, Previous Tax Filings, and Articles of Incorporation  
• Conduct a Leadership Transition Meeting at the end of each term  

Whether you are a well-established nonprofit organization or simply considering starting one, maintaining compliance with the IRS takes time and hard work. However, the ultimate reward comes from the peace of mind you will experience from never having to worry about losing your organization’s tax exempt status. 

To find detailed information on charity regulations, tax filings and nonprofit corporation filings for your specific state, click here. Maintaining the necessary compliance of your nonprofit organization requires effort, but can be handled successfully, especially with the help of an IRS-Authorized e-file provider, like ExpressTaxExempt.  

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Tax Exempt Organizations and Nonprofits: Are They The Same Thing?

Nonprofit vs. Tax Exempt | They’re the same thing, right? Or are they different? Hmm...

Often times the terms “nonprofit” and “tax exempt” are used interchangeably in conversation. While tax exempt status is conferred and determined by the IRS.
Many organizations are both nonprofit and tax exempt, there is an important distinction between the two. For example, nonprofit status is designated by the state while

Here’s a more detailed explanation on nonprofits and tax exempt organizations:

What is required for an organization to be considered a nonprofit?

According to the IRS, nonprofit status is a state law concept; meaning that an organization must apply for and receive nonprofit recognition from the state in which it does business. 

Once an organization has become a nonprofit it receives benefits, determined by its state, which includes exemption from property taxes, state and local income taxes, franchise taxes, and sales taxes for that state specifically. 

Misconception of Nonprofit Organizations

One of the main misconceptions of nonprofit organizations is that these groups are NOT allowed to make any profits throughout their calendar year. In all actuality, nonprofits usually have to turn a regular profit in order to function and operate effectively. Things such as facility upkeep and equipment purchases or repairs, require additional funds that go far beyond their annual expenses. 

As a nonprofit organization, these groups are allowed to receive funds, but any surplus of profit cannot be distributed to an organization’s members, employees, officers, or shareholders, and must be used within the organization to further the mission and goals of the nonprofit. 

How does an organization receive Tax Exempt Status?

An organization who has been granted tax exempt status must have received this recognition from the federal government. Being tax exempt essentially boils down to these two things:

1) The organization does NOT have to pay corporate income taxes on any money generated from the organization 

2) Those who donate money to the [tax exempt] organization can use a tax deduction for their donations when filing their taxes. 

Although most believe that many nonprofits automatically have a tax exempt status, they must apply for tax exempt status separately. The requirements for acquiring tax exempt status can be found in Section 501(c)(3) of the Internal Revenue Code. Generally, the main requirement to have tax exempt status is that the organization must be organized and operated specifically for charitable, religious, educational, cultural, scientific or humanitarian purposes. 

What does it mean to be tax exempt?

Sounds like a self-explanatory question right? Unfortunately, most misconceive the tax exempt reality. Organizations that are tax exempt technically aren’t completely exempt from tax. 

Although exempt organizations are not required to pay federal income tax, they are still subject to state and local taxes unless there’s a nonprofit designation which exempts them from those payments. 

Additionally, most exempt groups have to pay the employer’s share of their workers’ Medicare & Social Security taxes along with federal unemployment taxes. 

Maintaining Your Tax Exempt Status

As a nonprofit organization, it is crucial that you maintain your tax-exempt status with the IRS. ExpressTaxExempt, the #1 IRS-authorized tax e-filing solution for tax-exempt organizations, allows you to do just that. Providing security, ease, and peace of mind to organizations and its leaders, we respect the services that nonprofit organizations give to communities and are motivated to help with e-filing so you can get back to proudly making a difference in your community. With newly reduced rates, organizations can now save funds annually when e-filing Form 990 Series (Form 990, 990-EZ, 990-PF, 990-N, and Form 1120-POL). Pay us a visit at www.expresstaxexempt.com today and begin your e-filing process. 

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