Mainline PA Nonprofit Accounting Firm
As a recognized nonprofit accounting firm, MGS LLP has committed time and experience to provide the best, most extensive services for not-for-profit organizations in the Mainline and Philadelphia area. We have an appreciation for not-for-profit organizations and understand the challenges these organizations face. Similar to any business, making the best use of their available resources, growing themselves to support more services and offerings, remaining financially feasible and providing accountability for their practices is essential to their success. Meanwhile, a not-for-profit must contend with unique financial situations that exist only in their sector. Our firm, with decades of experience can help address all these issues and more. Contact us today to learn more about our nonprofit accounting firm located in Wayne PA and serving the MainLine and Philadelphia areas. Give us a call today for your free consultation at 610-688-6162.
Nonprofit Accounting Services We Offer
We have an extensive list of service offerings associated with nonprofit accounting:
- Agreed upon procedures
- Audits, reviews and compilations
- Employee benefit plan audits
- Organizational, operational and financial assessment consultations
- Strategic business planning
- Financial and management reporting
- Preparation and filing of federal and state returns
- Exempt status consulting
Tax-Exempt Organizations We Serve
MGS LLP has a lengthy client list and our not-for-profit clients are no exception. If you operate as any of the following organizations, we are here to assist and partner with you on all nonprofit accounting and nonprofit bookkeeping services you require.
- Religious organizations and missions
- Service organizations
- Government agencies
- Membership and trade associations
- Arts and culture organizations
We have an exceptional — and specially skilled — nonprofit accounting team which partners with not-for-profits on audits, tax compliance, Form 990 filing, and advisory services. MGS LLP is a highly recognized among nonprofit accounting firms for our commitment to our clients and our diligence and precision in our accounting practices.
Frequently Asked Not For Profit Accounting Questions
Over time, we have received a number of questions related to not-for-profit accounting. The following questions will help you best understand the ins and outs of tax accounting for not-for-profit organizations.
Do not-for-profit organizations file tax returns?
Despite their nonprofit tax-exempt status, most not-for-profit organizations are required to file an annual federal tax return. While most of these organizations are not mandated to pay federal taxes, most of them still must file a return with the Internal Revenue Service that is informational. This annual reporting return is known as the Internal Revenue Services (IRS) Form 990.
What is the IRS Form 990?
IRS Form 990 is the form used for reporting by federal tax-exempt organizations and it must be filed each year with the IRS. This form allows the IRS and others with interest to evaluate a not-for-profit’s operations and financial status. The form includes information for the not-for-profits mission, finances and programs. There are various 990 forms, so the one to be filed by an organization depends on the filing year and the organization’s gross receipts for that year. Different forms include 990, 990-EZ and the 990-N.
Who files the IRS Form 990? Which Form 990 do we file?
All 501(c)(3) private foundations will file a Form 990 while most federally tax-exempt organizations (there are exceptions such as churches and state institutions) also file a Form 900. For those filing on their own without the assistance of a nonprofit accounting firm, the IRS provides information that will help you to determine which Form 990 to file.
As a guideline:
- Larger not-for-profits with total receipts of more than $50,000 generally file Form 990 or 990-EZ
- Smaller not-for-profits with total receipts less than $50,000 file Form 990-N which is an e-postcard format of the form.
- For private foundations, they would file Form 990-PF.
You can find more information on which form to file on the IRS About Form 990 website page.
What not-for-profit organizations are exempt from filing IRS Form 990s?
Not every not-for-profit organization will have to file an annual return. Generally, these organizations do not have to file Form 990:
- Most churches and faith-based organizations, religious schools or missionary organizations
- Not-for-profit subsidiaries that would be included under a group return filed by the parent organization
- Government corporations
- State institutions that provide essential services
These are guidelines and should not be taken to mean that you may not need to file for your organization. A non profit CPA can help you determine whether you need to file and what forms you need to file. Otherwise, please check with the IRS to determine if your organization needs to file a return and which form it may need to file.
When is the IRS Form 990 due?
The due date is dependent on your organization and when your taxable year ends and begins. Form 990 is due on the 15th day of the 5th month after the end of the organization’s taxable year. For instance, if your organization follows the calendar year (January 1 – December 31), then your Form 990 would be due on May 15th each year.
What happens if our not-for-profit fails to file IRS Form 990?
Failure to file Form 990 for three consecutive years means the IRS will automatically revoke an organization’s tax-exempt status. Organizations lose their status each year for this reason. In addition, the IRS has no appeal process for automatic revocations and without a tax-exempt status, your organization could be subject to paying income taxes and filing through a for-profit process.
Can IRS Form 990 be seen by the public?
Form 990 can be seen by the public. Not-for-profit organizations are required to make their IRS Form 990 and their exemption application available for public inspection during regular business hours and many make their Form 990s available for viewing on their websites as well.
Our client focus, personalized service and expertise in accounting practices is why our clients trust us to partner with them on something as important as their tax-exempt status. Failure to remain compliant could have significant tax implications to a not-for-profit organization. MGS LLP has become a trusted name in nonprofit accounting and with offices in Wayne PA and Radnor PA, we serve the Mainline and Philadelphia areas, covering Montgomery, Chester and Delaware Counties. Contact us today and let us help you get your tax affairs in order and start planning for what lies ahead within your not-for-profit organization. Contact us for a free consultation or call us at 610-688-6162 so we can get started right away.