Many non-profit organizations hire an accounting or tax adviser without experience serving nonprofits. This may lead to incorrect accounting reports or inaccurate tax returns as nonprofits have unique accounting and tax rules. I specialize in working with of all kinds of nonprofit organizations in helping to solve potential problems that your organization faces.
Nonprofit experience includes experience with public charities, private foundations, schools, social clubs, and business trade associations.
Hundreds of thousands of Americans every day bring their dedication and devotion to help their nonprofit organization thrive to help their community or members. However, making a nonprofit survive is no easy task. Let Richard Pon CPA lend a helping hand. We help you minimize risks, improve financial controls, respond creatively to donors and,more importantly, focus on your core goal of serving your community.
GIVING BACK TO THE COMMUNITY
Richard has served nonprofit organizations as a board member, treasurer, and audit committee member so I have experience from the client side as well. For over 12 years, I have served on the audit committee of a community foundation.
Richard served on the American Institute of CPAs (AICPA) Tax-Exempt Technical Resource Panel from 2007-2010. In 2008, I served on the committee that provided guidance to the IRS during the revamp of the Form 990. The Form 990 went from 9 pages with 2 possible schedules to 11 pages and 16 possible schedules. During this time I read all 220 pages of the Form 990 instructions. (And yes I fell asleep often reading them.)
Richard also served for many years on San Francisco State University’s Accounting Department Advisory Board.
Services to the Nonprofit Industry
Besides preparing your Form 990 or 990-PF Tax Exempt Organization Tax Return, we offer the following services:
Unrelated Business Income Tax (UBIT) Analysis
Did you know Tax Reform has brought a hidden UBIT tax on organizations that offer commuter transit benefits such a pre-tax payroll deduction? This tax was retroactively repealed in Dec 2019 and you can file for a refund.
Did you know your investments may trigger the UBIT tax?
Worker Classification Analysis: Employee or Independent Contractor?
Donor Charitable Giving Strategies - Help your Donors Maximize Tax Benefits.
Functional Expense Reporting Classification Analysis
Public Support Test calculations to make sure your charity retains its public charity status.
Internal Controls, Accounting Policies, and Human Resources policy recommendations
Nonprofit Financial Management Bootcamp for Board of Directors and Management Team
Governance Policy Guidance. The Form 990 asks many questions about your organization’s policies. Although not required to have policies; many organizations have created policies in response to the Form 990 questions.
Form 1099 Independent Contractor preparation and electronic filing.
CONFUSED ON WHAT TAX FILINGS YOUR NONPROFIT MUST FILE? CONTACT ME FOR A FREE 2 PAGE REPORT.
Nonprofit Traps
Having served many nonprofit clients, here are several issues that organizations may not be aware of:
Exposure to Unrelated Business Income Tax (UBIT): Many organizations are caught off guard that they may have UBIT exposure. UBIT may come from activities such as (a) offering commuting or parking benefits to employees, (b) debt-financed rental income, (c) partnership investments, or (d) entering an activity not related to your tax-exempt purpose.
Private Foundation Self-Dealing: Creators of private foundations may be unaware that their activities would be subject to the self-dealing tax. For example, if Mr. John pledges $100,000 to the United Way and the Mr. John Foundation fulfills the $100,000 pledge, an act of self-dealing has occurred.
Sales tax collection applies to nonprofits. Organizations that sell items at fundraising events, such as auctions, festivals, firework stands, bazaars, swap meets, or craft shows are considered retailers and their sales are subject to sales tax.
California raffle registration is required. Unless specifically exempted, a charity must register with the Attorney General's Registry of Charitable Trusts before the raffle and must also file an aggregate financial disclosure report for all raffles held during the reporting year.
Incomplete or nonfiled Form 990 tax return: An incomplete tax return is generally considered non-filed and thus may subject the organization to late filing penalties. Only officers may sign the Form 990. Having your business or finance manager, who are not officers, sign the Form 990 may subject an organization to steep penalties. Even worse: Organizations that do not file for three consecutive years automatically lose their tax-exempt status.
FOR A FREE 2-PAGE REPORT ON HOW YOUR INDIVIDUAL DONORS CAN MAXIMIZE THEIR CHARITABLE CONTRIBUTION TAX DEDUCTION AFTER TAX REFORM, PLEASE CONTACT ME.
