Nonprofit Organization Basics
• All audio is streamed through your computer speakers.
• There will be several attendance verification questions
during the LIVE webinar that must be answered via the
online quiz at the conclusion to qualify for CPE.
• Today’s webinar will begin at 2:00pm EDT
• Please note: You will not hear any sound until the
webinar begins.
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Nonprofit Organization Basics
Presented by: Kay K. Mortimer, EA
Learning Objectives
At the end of this webinar, you should be able to:
• Identify steps to properly form a C3 NPO
• Recognize what the pre-formation process involves
• Prepare the application paperwork
• Identify the policies and procedures to ensure compliance
and operating success
• Operate while waiting on approval
• Identify the C3s obligations – donors, governmental
agencies, payroll, etc.
• Cite the pitfalls to beware of with C3s
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Nonprofit Organizations
Dream to make a difference
History of C3s
NPOs vs. C3s and other definitions
Where to Begin?
Dream and vision
Pre-formation steps
Qualifying as a C3
How to Form
Board
Governing and organizational documents
Policies
Accounting and accountability
1st of the 3-Leg Process
State filing
Certified docs
Other filings?
Step 2
EIN
Separate entity
Why wait – “name”
Step 3
Applying for C3
Form 1023EZ or Form 1023
Brief intro – Form 1024 (not for C3s)
User Fee
1023 EZ
Qualifying
Completing
Submitting
Form 1023 (long form)
Checklist
Pre-completion preparations
Qualifications
Form 1023-preparation
Section by section
Schedules
Attachments
Sequence
What to attach
Required Form and Schedules
Organizational Documents
Additional supporting documents
Organization information
How to File
Deadline
Procedure for filing
IRS inquiries
“Waiting”
Proper wording concerning tax-deductibility
Form 990
State filings
Payroll, etc.
Operating and accounting
Approval
Permanent Files
Grant app
Banking or other
Moving Forward
Tax-deductibility wording
Donor statements
Public inspection
Annual Filings
Operating a C3
Accounting
Legal – consult attorney
Grants, Fund-raising
Accountable Plans
Employees, Volunteers
Required Filings
Form 990 series (and additional forms)
State & local
Payroll
Grant funding reqs
Watch out
Legal – ask attorney
Automatic Revocation
Violations
Don’t jeopardize your status
Tax-exempt purpose
Private inurement, excess benefits
Political and lobbying activities
Others?
Dissolving a C3
State process
“Final” return and attachments
Distribution of remaining assets
State and local
Record Retention
Donor statements and other concerns
Resources and Links
• Publication 4220 – Applying for Tax-Exempt Status
• Publication 557 – Tax-Exempt Status for Your
Organization
• Publication 598 – Tax on Unrelated Business Income…
• Publication 4573 – Group Exemptions
• Form 1023 and instructions
• Form 1024 (for other than C3’s) and instructions
• www.irs.gov
• State Secretaries of State and Revenue Departments
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Additional Resources
Publication 78 database
www.guidestar.org
Sample Bylaws
Sample policies and procedures
“Church and Clergy Tax Guide” – Dr.
Richard Hammar
Questions?
Questions?
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Thank you for participating in this webinar.
Below is the link to the online survey and CPE quiz:
http://webinars.nsacct.org/postevent.php?id=15787
Use your password for this webinar that is in your email confirmation.
You must complete this survey and the quiz or final exam (for the
recorded version) to qualify to receive CPE credit.
National Society of Accountants
1010 North Fairfax Street
Alexandria, VA 22314-1574
Phone: (800) 966-6679
members@nsacct.org
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