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Nonprofit Tax

We are designed to help charitable organizations, foundations, and other nonprofit entities navigate the complex tax landscape, ensuring compliance while maximizing the resources available for their missions.

With confidence, pursue your goal

Managing the tax responsibilities of a nonprofit organization can be complex and challenging, requiring specialized knowledge and expertise. At JC & Associates, our Nonprofit Tax Services are designed to simplify this process, ensuring that your organization remains compliant with all tax regulations while optimizing your financial resources. We offer comprehensive support in preparing and filing essential documents such as IRS Form 990, which is crucial for maintaining transparency and accountability with your stakeholders. Additionally, we assist with the application and maintenance of tax-exempt status, guiding you through the intricate requirements to ensure that your organization remains in good standing with the IRS. Our expertise extends to managing Unrelated Business Income Tax (UBIT), helping you identify and properly report income that falls outside your primary exempt purpose to avoid unexpected tax liabilities. Beyond compliance, our services include strategic tax planning to enhance your organization’s financial sustainability, allowing you to allocate more resources toward your mission. We offer board training and policy development to promote best practices in governance, ensuring that your leadership is well-equipped to navigate the complexities of nonprofit management. With JC & Associates as your trusted partner, you can focus on your mission with confidence, knowing that your tax and financial matters are in expert hands. 

Our Outsourcing Nonprofit Tax Services.

Tax Compliance
  • Assist preparation and filing of the IRS Form 990, ensuring that information is accurately reported and submitted on time
  • Help nonprofits comply with various state and local tax requirements, including annual reports and charitable registration filings
Tax-Exempt Status
  • Guide organizations through the process of applying for tax-exempt status with the IRS
  • Provide support to ensure that nonprofits maintain their tax-exempt status, including compliance tests and requirements
Unrelated Business Income Tax
  • Help nonprofits identify activities that may generate unrelated business income and ensure proper reporting and payment of UBIT
  • Offer strategies to minimize the impact of UBIT on your organization’s finances
Charitable Contributions
  • Assist with the proper acknowledgment and reporting of charitable contributions to ensure compliance with IRS requirements
  • Guide on tax-efficient planned giving strategies and fundraising activities
Advisory Services
  • Offer strategic tax planning services to help nonprofits maximize their financial resources and achieve their goals
  • Help identify and manage tax-related risks to protect your organization’s tax-exempt status and financial health

Our Processing

Our goal is to help your organization navigate the complex tax landscape, ensuring compliance and maximizing the resources available to support your mission

01.

Initial Consultation and Assessment

02.

Tax-Exempt Status Application

03.

Form 1090 Preparation and Filing

04.

Unrelated Business Income Tax (UBIT) Management

08.

Ongoing Compliance and Support

07.

Strategic Tax Planning and Advisory

06.

Strategic Tax Planning and Advisory

05.

Charitable Contributions Compliance

06.

Strategic Tax Planning and Advisory

07.

Strategic Tax Planning and Advisory

08.

Ongoing Compliance and Support

Benefits of Outsourcing Nonprofit Tax Services

Outsourcing nonprofit tax services can help you in the following manner :

Expert Guidance

Leverage our extensive experience and specialized knowledge in nonprofit tax regulations

Compliance Assurance

Ensure your organization meets all federal, state, and local tax requirements

Resource Maximization

Optimize your financial resources through strategic tax planning and efficient management of tax obligations

Focus on Mission

Allow your team to concentrate on your core mission while we handle the complexities of tax compliance and optimization

Frequently Asked Questions

To obtain tax-exempt status, your nonprofit organization must follow these steps:

  • Incorporate: First, incorporate your organization as a nonprofit at the state level.
  • Apply for an EIN: Obtain an Employer Identification Number (EIN) from the IRS.
  • Complete IRS Form 1023: Submit Form 1023 (Application for Recognition of Exemption) or the simplified Form 1023-EZ if eligible, providing detailed information about your organization’s structure, governance, and activities.
  • Provide supporting documents: Include your organization’s bylaws, articles of incorporation, and financial statements.
  • State requirements: Comply with any additional state-level requirements for tax-exempt status.

Once your nonprofit organization has obtained tax-exempt status, you must meet several ongoing compliance requirements, including:

  • Annual Filing: File the appropriate version of Form 990 (990, 990-EZ, or 990-N) annually with the IRS. This form provides information about your organization’s finances, activities, and governance.
  • Record Keeping: Maintain detailed records of all financial transactions, including income, expenses, and donations.
  • Governance: Ensure that your organization continues to operate exclusively for exempt purposes and complies with all governance policies outlined in your application.
  • Public Support Test: If applicable, meet the public support test requirements to maintain your public charity status.
  • Unrelated Business Income Tax (UBIT): Report and pay tax on income from activities unrelated to your nonprofit’s primary purpose.
 

Unrelated Business Income Tax (UBIT) applies to income generated from activities that are not substantially related to your nonprofit’s tax-exempt purposes. Common examples include:

  • Sales of merchandise: Income from selling products or services not directly related to your nonprofit’s mission.
  • Advertising revenue: Income from advertisements in your organization’s publications or website.
  • Rental income: Income from renting out property or facilities not used for exempt purposes.
  • Income from certain fundraising events: If the event does not substantially relate to your nonprofit’s purpose.

Meeting with JC & Associates

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