Not-For-Profit Accounting and Auditing
We have comprehensive experience in serving a wide array of not-for-profit organizations. Cullen and Danowski provides audit, review and compilation level services to organizations in accordance with funding agency requirements, or as support for annual IRS information return filings.
We handle financial statement audits in accordance with the standards apllicable to Government Auditing Standards or Uniform Guidance.
Even smaller not-for-profits find it useful to have our expertise available to assist in oversight for financial operations, and find it cost-effective to have us provide accounting services.
For those seeking not-for-profit status with the IRS, we prepare the IRS applications for Recognition of Exemption, and assist in the completion of that process.
For those organizations who are required to file the State's Consolidated Fiscal Report (CFR), we are versed in the changes that continue to be incorporated and we provide certification for a number of diversely funded programs.
We can help you setup and maintain your non-profit organization's tax-exempt status by handling all the IRS reporting for you.
Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes the following items.
Income Statement with very specific revenue and expense categories
like donations, salaries, postage, rent...
Balance Sheet with specific categories like cash, accounts receivable, accounts
payable...
Functional Expense Statement with all the expenses allocated to either program
services, fundraising, or operations.
Individual Program Expense Statement that reports all of the expenses for each
program or service like seminar programs or educational mailings.
- Revenue Support Schedules that detail the organization's sources of income in specific
categories like charitable donations, membership fees, investment income.
The IRS uses these very specific revenue and expense classifications to determine if your organization will
retain its tax-exempt status. So it's 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.
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...
Inventory of Liabilities like mortgages, accounts payable,
loans...
Rent/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 Programs Documentation including your
statement of purpose & operations, food programs, fundraisers, flyers/brochures/pamphlets...
Financial Support Documentation including all sources of revenue like
contributions, tithes, offerings, fundraisers...
Fund Raising Program Descriptions
- IRS Processing/Filing Fee
We are happy to prepare any of these items if you need help.