Most non-profits are operated by part-time volunteers and with minimal staff. Their dedication and results are truly admirable. Because of the frequent change in volunteers or their lack of experience in operating a non-profit business, results can sometimes fall short.
As a third party, Bayco Management will provide the necessary financial information in an accurate, consistent format. We will keep the financial and business reporting systems the same year after year. Once we understand what the organization's requirements are, we will insure they will be met and not vary. This consistency and attention to detail helps the non-profit continue to grow. This growth is often the result of the volunteers/members focusing on increasing revenues and fund raising activities, rather than administrative chores.
We can help you with New Setup and then maintain your non-profit
organization's tax-exempt status by handling all the IRS reporting for you.
I.R.S. REQUIREMENTS FOR NON-PROFITS
Each year the IRS requires most tax-exempt organization to submit the Form 990 and its relation, which includes the following items:
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Income Statement with very specific revenue and expense categories
like donations, salaries, postage, rent...
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Balance Sheet with specific categories like cash, accounts receivable, accounts
payable...
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Functional Expense Statement with all the expenses allocated to either program
services, fundraising, or operations.
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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.
ONGOING SERVICES FOR NON-PROFITS
Here's what we do for you...
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Review and compile your financial statements
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Design, install, and maintain your Accounting System
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Weekly, bi-weekly, or monthly payroll preparation
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Payroll Tax Preparation and Deposits
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Provide training for your accounting personnel
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Complete and file your non-profit status application
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Provide training for your board on non-profit financial statement usage and effective budgeting
practices
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Prepare and file the 990 and 990T tax forms
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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.
In addition, Bayco Management can act as your bookkeeping and accounting department performing all the functions your bookkeeper or accountant would perform for you. But, with one major advantage to you...we require no hiring, firing, new orientation, learning on the job and monitoring for accuracy or dishonesty which an in-house bookkeeper would need. And, we will do your work more professionally, efficiently, and accurately, thus saving your organization money. Remember we do this everyday!
NEW SET-UP FOR NON-PROFITS
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...
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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").
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Employer Identification Number
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By-laws of the Organization
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Minutes of Board Meetings
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Names, Addresses, and Resumes of Board Members
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Names and addresses of all Active Members
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Inventory of Assets like cash, furniture, equipment, property,
pledges...
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Inventory of Liabilities like mortgages, accounts payable,
loans...
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Rent/Lease Agreements and Contracts
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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.
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Written Reason for Formation and History of the
organization.
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Organization Mission Statement or Statement of Faith or Beliefs for Churches and
other Religious Organizations.
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Organization Activities, Operations and Programs Documentation including your
statement of purpose & operations, food programs, fundraisers, flyers/brochures/pamphlets...
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Financial Support Documentation including all sources of revenue like
contributions, tithes, offerings, fundraisers...
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Fund Raising Program Descriptions
- IRS Processing/Filing Fee
We are happy to prepare any of these items if you need help.
