Revenue and Expense Classifications

The IRS uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. It is imperative that you build your accounting system around these revenue and expense classifications.

Here’s what we do for you:

• Review and compile your financial statements
• Design, install, and maintain your accounting system
• Weekly, bi-weekly, or monthly payroll preparation
• Payroll tax preparation and deposits
• Provide training for your accounting personnel
• Complete and file your non-profit status application
• Provide training for your board on non-profit financial statement usage and effective budgeting practices
• Prepare and file the 990 and 990T tax forms
• Prepare your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.
• Churches: We prepare the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.

501 (c)(3) application Process

If you’re starting a new not-for-profit organization: we can help you prepare your organization’s 501 (c)(3) application for tax-exempt status.

Here’s what’s needed:

• Articles of Incorporation containing the Exempt Purpose Statement as described in IRS Code section 501(c)(3) and defined in Treasury Regulation 1.501(c)(3)-1 Paragraph d and the Dissolution Statement described in Treasury Regulation 1.501(c)(3)-1 Paragraph b subparagraph 4 (“Organizational Test”).
• Employer Identification Number
• By-laws of the Organization
• Minutes of board meetings
• Names, addresses, and resumes of board members
• Names and addresses of all active members
• Inventory of assets like cash, furniture, equipment, property, pledges, etc
• Inventory of liabilities like mortgages, accounts payable, loans, etc
• Rent or lease agreements and contracts
• Revenue and expense statements for the last four years or as far back as possible if your organization has been in existence for less than four years.
• Written Reason for Formation and History of the Organization.
• Organization Mission Statement or Statement of Faith or Beliefs for Churches and other Religious Organizations.
• Organization activities, operations, and program documentation including your statement of purpose & operations, food programs, fundraisers, flyers/brochures/pamphlets, etc
• Financial support documentation including all sources of revenue like contributions, tithes, offerings, fundraisers…
• Fund Raising Program Descriptions
• IRS processing or filing Fees

We are happy to prepare any of these items if you need help.