Every Nonprofit's Tax Guide

by Fishman, Stephen

• ISBN13: 9781413310658
• ISBN10: 1413310656
• Edition: 1st
• Format: Paperback
• Copyright: 2009-12-07
• Publisher: NOLO

Summary

Roughly 1.4 million 501 (c) (3) organizations are operating in the U.S. And, according to recent data, the nonprofit sector is growing, with the number of registered public charities having jumped over 30% between May 2000 and May 2006. All of these nonprofits enjoy special privileges not available to other organizations-but not without a price; each must comply with a set of special rules and regulations. Every Nonprofit's Tax Survival Guide,explains these rules and what nonprofits must do to maintain their tax-exempt status and avoid problems with the IRS.

Author Biography

Stephen Fishman is the author of many Nolo books, including working for Yourself, Deduct it! Lower Your Small Business Taxes and Tax Deductions for Professionals, winner of the Publishers Marketing Association's Benjamin Franklin Award.

Table of Contents

Your Legal Companion for Nonprofit Tax Compliance	p. 1
Nonprofits and the IRS	p. 3
What Do We Mean When We Say ôNonprofitö?	p. 4
The Life Cycle of a Nonprofit	p. 9
Ongoing Compliance	p. 3
IRS Audits	p. 18
Annual IRS Filings-The Form 990	p. 33
The Nuts and Bolts of the Filing Process	p. 35
The 990-N Postcard Filing-As Simple as It Gets	p. 46
Fofm 990-EZ: The E-Z Way Out	p. 52
The New Form 990: Just Hold Your Nose and File It	p. 82
Letting the Public See Your Report Card: Disclosure of Form 990	p. 101
Notifying the IRS If You Terminate Merge, or Contract Your Nonprofit	p. 196
Record Keeping and Accounting	p. 111
Why Keep Financial Records?	p. 112
What Does the IRS Require?	p. 116
Do You Need an Independent Audit?	p. 137
Minding the GAAP	p. 140
Volunteers, Employees, and Independent Contractors	p. 145
Volunteers-The Backbone Workforce of Nonprofits	p. 146
Reimbursing Your Volunteers-Know the Rules	p. 149
Unreimbursed Volunteer Expenses	p. 160
Benefits and Freebies-How to Show Your Appreciation Tax Free	p. 165
Paid Help: Employees and Independent Contractors	p. 173
Hiring Independent Contractors	p. 187
Hiring Employees	p. 197
Charitable Giving-The Basics and Cash Donations	p. 205
Your Role as a Nonprofit	p. 206
Thresholtf Requirements for Deducting Donations	p. 208
Annual Limits on Charitable Deductions	p. 216
What Can a Donor Contribute?	p. 218
When Is a Contribution Made for Tax Purposes?	p. 219
Special Gifts-Earmarked, Restricted, and Conditional	p. 251
If Your Nonprofit Provides Goods or Services	p. 225
Cash Contributions	p. 227
Cash Gifts From IRAs	p. 232
Interest-Free Loans	p. 234
Quid Prague Contributions	p. 234
Charity Auctions	p. 245
Property Donations	p. 247
Annual Deduction Limit for Property Donations	p. 249
Valuing Property Donations-An Art, Not a Science	p. 252
Different Types of Property Donations	p. 254
Documenting Property Donations	p. 276
Excessive Compensation, Sweetheart Deals, and Other Ways to Get in Trouble With the IRS	p. 297
A Nonprofit Is Not a Personal Piggy-Bank	p. 298
The IRS Intermediate Sanctions Minefield	p. 300
Transactions With Disqualified Persons-How to Avoid Problems With the IRS	p. 305
Excessive Compensation for Services: The Most Common Excess Benefit	p. 318
Correcting and Reporting Excess Benefit Transactions	p. 335
The IRS's Sentence of Death: Revocation of Tax-Exempt Status	p. 338
Nonprofits That Make Money and UBIT	p. 343
What Is UBIT?	p. 345
Activities Exempt From UBIT	p. 353
Do You Owe UBIT	p. 364
Filing UBIT Tax Returns	p. 367
Lobbying arid Political Campaign Activities	p. 371
Lobbying by Nonprofits-What's Allowed and What's Not	p. 372
Political Campaign Activities-An Absolute Ban	p. 388
Getting Around the Restrictions	p. 401
Help Beyond This Book	p. 405
Help From the IRS	p. 406
Other Helpful Publications and Websites	p. 410
Researching the Tax Law	p. 412
Consulting a Tax Professional	p. 418
Appendix: Forms	p. 421
IRS Form 990-EZ	p. 422
Sample Conflict of Interest Policy (from IRS Form 1023, Appendix A, With Annual Conflict of Interest Acknowledgment Statement)	p. 426
Rebuttable Presumption Checklist	p. 432
Family and Business Relationship Questionnaire	p. 434
Expense Report	p. 436
Index
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