Every Nonprofit's Tax Guide: How to Keep Your Tax-Exempt Status & Avoid IRS Problems

This is an excellent book, well written and very informative and I highly recommend it for anyone who works with, for, or is a member of the board of any non-profit organization. I wish I had had this book in hand when I was working through the paperwork for setting up a non profit last year, as it has much information to smooth out the bumps and struggles of obtaining the original 501(c)3 status from the IRS. Large non-profits with their legal teams & financial experts won't need this book, but the small groups that struggle to get the donations they need to perform their work will find this book a fountain of information. It's easy to read, easy to refer to specific sections (get out your stickies for reference tabs!) and is worthy of space on anyone's desk if they work with non profit organizations. This book does much more than tell you check box c on page 14 of form xxx--it helps you understand why you would want to. Knowing what the requirements are is half of the battle--most non-profits struggle from lack of knowledge and the resulting errors to navigate IRS requirements in keeping their financial records in accordance with IRS standards. Filing the forms annually with the IRS is something that has many board of directors cringing in fear of a mistake that could cost them their current tax status, and this provides the information to eliminate the errors and those stressful sessions of completing paperwork. This book is primarily focused on the more common public charity non-profit, although it is of benefit to all non profit organizations. If you are even thinking about setting up a non profit organization, this book should be at the top of your list of useful ones, and I wish I had had it before!

I wish I had this book when I formed my first non-profit, as it would have helped me understand some of the more confusing issues. This is a simple book and is easy to read and understand. It contains helpful references to IRS publications and rules so that you can get more details if necessary. Directors and officers of non-profits would be well-advised to get a copy of this book. In many cases, just casually flipping through the pages could provide some board members with a much needed education. In my experience many non-profits are doing something wrong. Some of them are doing a lot of things wrong. For the cost of a book and a couple of hours of time, a lot of major problems could be avoided.

Sometimes simply stating you are a nonprofit, having an EIN, and holding out your hand for contributions toward your more than worthy cause, simply isn't enough. The IRS will be more than happy to point out the error of your ways and it is best to learn the regulatory processes and avoid any unnecessary pitfalls that could make you lose your coveted status. By familiarizing yourself with the ins and outs of becoming and remaining an exemplary nonprofit, you will also be able to protect not only yourself, but also your donees. Without the donee, chances are your existence would be compromised at best. For example, do you have that 501(c)3 determination letter from the IRS? You'd better start reading because there is a lot more to being a nonprofit than just a few little forms `n letters! Not all nonprofit organizations are tax exempt, but this book is not concerned with this type of organization, rather instead is focused on the 501(c)3 type. This is not a fly by night publication and is very detailed. A clear, concise twenty-two page index will attest to the fact that the structure of this book has been well thought out, a fact that I much appreciate. There are dozens of numerous, informative sidebar materials that assist the reader in "sorting out" many questions they may have. For example, if you have trouble figuring out the difference between an independent contractor and an employee you will be able to look at an IRS chart for a worker's status and then take a "test" to help you in your determination. There are reproductions of all the IRS forms that you will encounter and step-by-step guidelines for preparation, FAQs, tips and more. The confusion factor simply disappears as if someone is sitting next to you helping you out when you work through this book. You're even going to learn about what happens when you fail to file these forms. Additional resources are often cited if you feel you would be more comfortable with even more information. Highlights, as noted on the back cover include "the new Form 990 and 990-EZ, conflicts of interest and compensation, charitable giving rules, unrelated taxable business income, lobbying and political activity restrictions, nonprofit bookkeeping and other key tax rules." My take on this book is that if you want your legal advice in plain English, this is the book you need and will refer to time and time again. You won't be reading it in a single sitting, but believe me, you'll become well versed in what your nonprofit needs to do to remain compliant with IRS regulations with this marvelous reference on hand!

Tax-exempt nonprofits are a big business. $3.4 trillion in assets and 9.4 million employees, about 7.2% of the total United States workforce. But not every tax-exempt nonprofit is a multi-billion dollar foundation. There are tens of thousands of nonprofits that are small, many of which work with volunteer staffs. Often legal expertise is lacking and people inadvertently do things that endanger the tax-exempt status of these organizations. This book is designed for them, for anyone in a tax-exempt who doesn't have access to competent legal advice on their IRS Code Section 501(C)(3) tax-exempt status. It is, in a very general way, a lawyer in a book. Attorney Stephen Fishman provides in very clear language guidance on every aspect of maintaining your Section 501(c)(3) status. He avoids convoluted legal language and uses plain English (bless him!). He begins with the Form 990 which is a disclosure of the tax-exempt nonprofits finances and is publicly accessible. He covers the importance of accounting and record keeping - something that often goes undone in volunteer organizations. He helps the uninitiated distinguish between employees, volunteers and independent contractors. These distinctions are very important. Fail to withhold and pay employment taxes and the IRS doesn't care who you are or what you did, they go after you. Next he moves on to contributions of goods, cash and services and how to deal with them. This is a crucially important subject. Lots of Section 501(c)(3) raise lots of money and pay their executives very, very well. What's to stop an a aggressive fundraiser from setting up a tax-exempt and paying themselves huge salaries? Not much really, but Fishman does point out how to get caught and what happens when you do. UBIT stands for Unrelated Business Income Tax. At one time, a tax-exempt could engage in a business and not pay taxes on the revenue. Not so much any more. Finally, Fishman distinguishes between permissible lobbying activities and the forbidden political campaign activities. This is a well-written, thorough examination of tax issues relating to Section 501(c)(3) tax-exempt nonprofit organizations. Even though the subject is narrow, the book still runs to almost 450 pages. Fishman and Nolo have done a good job here and anyone who volunteers or works for a small or medium-sized tax-exempt that doesn't have full access to specialist legal or accounting tax advice will do well to purchase, read and continually consult this book. Jerry