Category Archives: Tax Forms

More Questions and Answers

Posted on January 19, 2009 | 2 comments

Questions?When I present trainings and workshops I always get at least one question I can’t answer on the spot and need to look up.  Here are the Questions and Answers from the week of January 12th, 2009:

  1. If our organization awards scholarships do we list that on the form 990?

    Yes you probably do.  For information about what kinds of grants and other assistance is listed in the updated Form 990 and Schedule I please click here.

  2. How long do we keep records for donations to our nonprofit?

    At least seven years after the donation.  Many organizations keep them permanently but that is up to the organization.

  3. When we pay someone a stipend do we have to give them a 1099 at the end of the year?

    Yes you do as it is considered “non-employee compensation.”  Please check out the IRS’s 1099-Misc information here.

  4. Where can I find more sample policies and procedures?  Specifically ones that the IRS is asking for?

    updated Form 990 The Yolo Community Foundation has put theirs online to promote good governance, please check them out here.
    Also the National Council of Nonprofits has some good samples as well.

  5. Do raffle and auction winners get a donation thank you?

    Yes, if they end up paying more than market value for the item they recieved.  Check out this nice piece from the IRS that is all about contributions and specifically take a look at the examples that start on page three.

Did I miss any?  Ask them in the comments below or email me.

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Posted in Governance, IRS, Nonprofit Accounting, Policies and Procedures, Q&A, Tax Forms

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Workshop Resources

Posted on January 12, 2009 | 3 comments

Box 'o resourcesThanks to all of you who attended the workshops.  As promised I have put together all of the resources that were mentioned in the trainings in one area.  These are listed elsewhere on the site but I thought it would be nice to organize them into one place.  Scroll down the page for the list of all the resources and please post a comment or email me if you have any questions.

  • The Unified Chart of Accounts (UCOA) and Key Word Index – The UCOA (pronounced yoo-KOH-uh) is an activity-based accounting system that incorporates the reporting requirements of many institutional funders and can be tailored to each nonprofit’s changing needs and existing system. The UCOA is designed to allow nonprofits to add as many reporting requirements as necessary while still allowing you to use just one system for accounting and reporting. Click here for more information.
  • The payment requisition form mentioned in the workshop.
  • Time-sheet and cost allocation samples – click here if you would like to download the excel worksheets to play with.
  • Joint Costs – When you send out something that is both educational AND a solicitation for funds you run the risk of having the total cost of the activity listed as fundraising and not program unless you meet certain criteria. This article will help guide you through the process.
  • The 2004 Nonprofit Integrity Act, SB 1264 – For all the details please see the overview of 2004’s Nonprofit Integrity Act (pdf), and go here and here.
  • Pub. 1771, Charitable Contributions Guidelines for Donors (PDF)
  • An article on Cost Allocation I mentioned.
  • IRS & 990 – All of the IRS and updated Form 990 resources are here, take your pick!
  • Information on putting together an operations manual or financial policies can be found here.
  • Budgeting and other Financial Management resources are on this page.
  • How to create a financial policy manual and financial management plan.
  • Other resources including the donation and auction item journal entry guidance and fraud prevention articles can be found in the General Resource page

For those who missed the presentation handout or want another copy I have the most recent events on Not-for-Profit Accounting Groups page.  Please click to get them and feel free to join the group and start some discussions.  If you don’t see them there contact me and I will make sure to upload them.

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Posted in Governance, IRS, Nonprofit Accounting, Policies and Procedures, Q&A, Risk Management, Tax Forms

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Final 2008 Form 990

Posted on December 30, 2008 | Leave a comment

No longer in draft form!On December 24 the IRS released the final versions of the 2008 Form 990, 990 EZ and the associated schedules and instructions. Perhaps not the most exciting Christmas present we could get from the IRS but the updated forms will still help 2009 be a very interesting year for nonprofit agencies.

The above link takes you to the new forms and instructions and also will guide you to the IRS’s own free trainings on the new 990’s as well as other compliance and governance issues. If you can’t make an in person training these are a great resource.

As a reminder, not everybody will have to start filing the updated form this year.  Check here for the phased in filing schedule.

Check your last 990 or financial statements and see where you may fall for your 2008 form. But remember, just because you may get a pass this year does not mean that you still don’t have to get ready. See this post for the things you should still be thinking about.

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Posted in IRS, Nonprofit Accounting, Tax Forms

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