Tax Planning for Tax Exempt Organizations
Nonprofit entities are at risk since tax issues such as unrelated business income receive little press, but cause large problems. Wolf and Company LLP has more than 50 years of experience at the partner level in offering tax services to the tax-exempt organization community. We are experienced in obtaining and maintaining tax-exempt status. Additionally, we have tax managers who specialize in serving tax-exempt organizations.
We have addressed numerous unrelated business income issues for nonprofit clients including:
- Membership list sales
- Merchandise sales
- Magazine publishing
- Membership directories
- Qualified sponsorship activities
- Income from debt financed property
- Rental income
- Advertising revenue
Wolf & Company also understands and reviews client operations for other issues that might affect tax-exempt status including lobbying activities, donee reporting requirements, executive compensation, sales and use taxes, joint venture activities, private inurement considerations, excess benefit transactions, multi-state filings, sponsorship agreements, and games of chance.
To address this need, Wolf & Company has developed a Not-for-Profit Compliance Review program. With not-for-profit auditing and consulting being a major emphasis for our firm, our professional staff has a clear understanding of how accounting, reporting and management issues impact the tax-exempt status and financial performance of not-for-profit organizations and works with clients to create the program and process that makes sense. Every review includes:
- An objective, independent evaluation of operations and reporting through review of financial statements, forms 990 and 990T, web site, and miscellaneous items such as publications and brochures.
- Identification of potential Unrelated Business Income (UBI) Activities such as advertising income, merchandise sales, associate member dues; and other significant tax areas such as lobbying activities, donee reporting requirements, executive compensation, sales and use taxes, joint venture activities, private inurement considerations, excess benefit transactions, multi-state filings, sponsorship agreements, and games of chance.
- Preparation of a detailed written report and an oral presentation to management and appropriate board members.
For more information on our tax services for exempt organizations, contact Stephen J. Nofzinger, Senior Manager, Tax Services.