How to do Tax Planning for Non-Profit Organization?

1
Tax Planning for Non-Profit Organizations
2
Tax Planning for Non-Profit Organizations

• Non-profit Organizations help in the
  overall development of the Society that may
  include Charitable Organizations, Churches,
  Universities, Hospitals etc. in the United
  States. Depending upon the various factors,
  Non-profit making organizations may be given the
  status of Tax Exempt from federal taxes. If
  youve filed the tax return paid the tax, check
  the refund status with the IRS.

3
TaX PLANNING FOR Non-profit organization may
INCLUDE ACTIONS SUCH AS

• 1- Communal Services Continuous provision of
  communal services that proves to be very helpful
  to the community or area of operation.
• 2- Development of Community Members Such
  Organization plan to offer the best services to
  its community for the benefit and development of
  the members of this community.
• 3- Selling of Goods and Services The Non-Profit
  Organizations plans to continue applying for the
  donations and grants on a periodic basis or it
  will be engaging into selling of goods and
  services.

4
Tax Exempt Benefits of Nonprofits

• The Internal Revenue Service grant
  Tax-Exempt Status to a variety of Organizations
  including state and federal credit unions, title
  holding companies, social welfare organizations,
  social and recreation clubs, fraternal
  organizations and child care organizations. For
  such organizations there are many tax-exempt
  statuses available, including 501c1, 501c2,
  501c3. The 501cs is often the most preferred
  status for nonprofit organizations. Some
  important benefits are
• 1- No Tax Obligations Having a Tax-Exempt Status
  makes non-profit organization free from paying
  federal, state and local taxes on all the income
  flowing into your organization. In such type of
  organizations income are generated from donors,
  government grants and money generated through
  fundraisers. With no tax obligations, you have
  more money available to spend towards your cause.

5
Tax PLANNING IS VERY IMPORTANT FOR NON-PROFIT
ORGANIZATION
6
2- Helps in Increasing Donations If an
organization has Tax-Exempt Status it helps in
getting more donations. If your organization is
not tax exempt, a donor will think twice before
donating, especially if the donation amount is
bigger. When your organization carries a
Tax-Exempt Status you can also apply for public
and private grants. Preparing a non-profit tax
return is very essential for such
organizations. 3- Psychological Advantage The
Organization may have a general psychological
advantage due to the autonomity.
7
4- Instills Responsibility's Filling of data on
501c3 tax return exempt organizations consumes
time, its costly, creates high complexity levels
and instills responsibility's up to the
organization management. 5- Non-Profit
Organization's Control The Non-Profit
Organization can then become autonomous from all
persons. As much as they may have been
sympathetic on the NPO they may now not have any
controls or powers over it.
8
Process of Acquiring a Charitable Exempt Status
9

• To acquire a Charitable Exempt Status a
  Non-Profit Organization should go through several
  processes
• Sometimes there may be need to hire a legal
  officer who may help make proper decisions and
  provides a clear and proper guidance throughout
  the process.
• Make important decisions whether there is need
  to acquire a Tax Exempt Status or not.

10

• Deciding on the type of Non-Profit Organization
  that fits the purpose designated.
• There may be need to apply for Non-Profit
  Organization's in consideration of the
  Organization or by-laws of the region of
  operation.
• Follow up to be up to date with the regulations
  regarding the renewal and presentations of
  reports.

11
Follow Us Company
Affluent Financial Services LLC Email Id
info_at_affluentcpa.com  Website
https//www.affluentcpa.com/
12
(No Transcript)