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Specific
Services and Experience
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Types of organizations
Not-for-profit organizations share many characteristics with business
entities. For example, management processes, accounting systems and operational
methods may be similar. However, differences exist and they can be significant.
in addition to an exemption from
income taxes on activities related to their exempt purpose, NPOs have fiduciary responsibilities
to members,
contributors and other constituents. Their activities may also require reporting to
supervising governmental entities.
Accordingly, financial reports need to be designed
to respond to these differences.
Our specific experience include services to all types of organizations. Many of
these organizations have similar needs. A few additional unique requirements.
Our experience includes services to organizations such as:
Types of services
A not-for profit organization needs to focus on many areas in order
to successfully fulfill its mission and administrative goals. Our
diverse experience can benefit you in many areas.
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Financial statement and assurance services
Our audit, review, and compilation services are designed to help
not-for-profit organizations obtain the information required to manage and
oversee their operations based on traditional business standards. A question
often asked by boards of directors is whether there is a standard amount that
should be maintained for net assets. While the answer varies by organization,
AHP can advise you with respect to your organization.
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Regulatory and Compliance Services
Many not-for-profit organizations have fiduciary, grant, contract or regulatory requirements
that may require specific assurance
services and reports. We are familiar with those type of requirements and
can assist your organization accordingly.
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Consulting in business information systems and financial
management
The success of not-for-profit organizations often hinges on those entities exercising
extraordinary skill in using physical and intangible assets in carrying out
their activities. Tools like budgets, forecasts, cash flow
projections and cost reports are all part of manager’s resource kit. We can
help you develop or monitor the operation of these tools.
Tax issues and related matters
In addition to helping you prepare your annual IRS Form 990 or 990T, we can
help you understand your responsibilities related to unrelated business income, compliance with fund-raising
license requirements, and activities that can jeopardize your exempt status. We can help
not-for-profits meet disclosure requirements and assist with structuring
activities so tax obligations are satisfied and exposure with the IRS is minimized.
Organizations who want to understand the IRS' intermediate
sanction rules and the potential tax effects on officers might be interested
it the IRS article, "Rebuttable Presumption
Procedure Is Key To Easy Intermediate Sanctions Compliance."
These regulations apply to 501(c)(3) and 501(c)(4) organizations. AHP can help
you navigate these requirements.
Strategic planning assistance
An organization's strategic direction flows from its tax-exempt purpose and is
carried out through the day-to-day actions of the organization. Under an
environment of increasingly scarce resources, the challenge then is to identify
and prioritize the right actions. We can help your organization through
this process by facilitating strategic sessions or offering suggestions about
how to perform the process more effectively.
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Organizational structuring
As every organization is different, so is the design and operation of its
organizational structure. The fulfillment of the organization's mission
depends on a delicate balance of efforts from volunteer as well as
professional staff. Our experience in the industry can help you identify
ways to strengthen that balance by offering suggestions for refining the
critical roles of each group.
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Board of Director Training
Most organizations rely on the talents of volunteer directors. We can assist
your board in a number of ways to help them fulfill their responsibilities.
One effective way is to arrange for a training session that reviews the
board's responsibility for internal control, oversight of the financial
reporting process, and its responsibility for setting the tone for the proper
culture within the organization, including the areas such as the prevention of
fraud.
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Department of Labor Forms
Labor organizations are required to file an annual form with the Department of
Labor within three months of the organization's fiscal year end.
Depending on the size of the organization, this could be Form LM-2, LM-3, or
LM-4. We can also assist you in implementing the changes to your chart
that will be required for filing Revised Form LM-2, which is effective for
fiscal years beginning on or after July 1, 2004.
Our services can also include meeting
with representatives of your governing body.
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IRS Publications and Guides
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The IRS has a number of publications to help organizations file for
tax-exempt status and comply with requirements once they receive their
tax-exempt status. Here are a few of the publications that you might
find helpful. Since the information in the guides can be extensive
and complex, please call us to help you understand the requirements as
they apply to our organization.
Tax
Information for Charitable Organizations
Life Cycle of a Public Charity
Publication 557,
Tax-Exempt Status for Your Organization. This publication
discusses the rules and procedures for organizations that seek recognition
of exemption from federal income tax under section 501(a) of the Internal
Revenue Code. It explains the procedures you must follow to obtain an
appropriate ruling or determination letter recognizing your organization's
exemption, as well as certain other information that applies generally to
all exempt organizations.
Publication 598,
Tax on Unrelated Business Income of Exempt Organizations.
Publication 4220,
Applying for 501(c)(3) Tax-Exempt Status. General guidelines
for organizations that seek tax-exempt status from federal income tax
under section 501(c)(3) of the IRC
Form 1023 -
Application for Recognition of Exemption Under Section 501(c)(3) of the
Internal Revenue Code.
Instructions for Form
1023.
Publication 1771,
Charitable Contributions—Substantiation and Disclosure Requirements.
This publication explains the federal tax law for organizations such as
charities and churches that receive tax-deductible charitable
contributions and for taxpayers who make contributions.
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OMB Circular A-133 audits
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If your organization receives more than $500,000 in federal funds, you may require a "single
audit" performed in accordance with the U.S. Office of Management and
Budget (OMB) Circular A-133. These funds can be received directly from a
federal agency or as a pass-through grant from a state or local entity. AHP has extensive experience
performing these types of audits, as well as grant-specific audits.
OMB
Circular A-133 |
March 2004 Compliance Supplement
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Index to OMB
Circulars
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Commitment
to Quality
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Whatever your
organizational needs, AHP is committed to the
highest quality service and client satisfaction. We will settle for no
less. |
Who to Contact for More Information
AHP Services to Related
Industries
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