"I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money." Arthur Godfrey

Many people assume that the term Nonprofit means an organization with that designation never has to think about taxes. Although that may be true, there ARE things a nonprofit must do to maintain their nonprofit status. Paperwork, financial reports are just one of the things that must be in place at all times.

According to wildapricot.com, there are three things in particular that ALL nonprofits must do:

1. File Form 990 on time and accurately. Here is how wildapricot.com explains, “The deadline for filing any of these Form 990 versions is the 15th day of the fifth month after your organization’s fiscal year ends. So, if your fiscal year follows the calendar year, your deadline is May 15. If your fiscal year were to run from July to June, your Form 990 would be due on November 15. The IRS fines organizations that file their forms late, so make sure to get yours in on time!”

Nonprofits cannot afford to pay a fine of any size. Be prepared and file that 990 on time.

2. Keep very accurate records, particularly financial records:

a. Keep a copy of the 501(c)3 designated letter within easy reach

b. Keep income and expense reports accurate and updated monthly. The Board of Directors need to see this in particular. There is accounting software offered for free or at low cost for nonprofits. A simple internet search will help you find these resources.

3. If the nonprofit has employees, you must understand various employment tax forms.

NOTE: This article is not a comprehensive explanation but merely a starting point for you to protect your organization and keep it in the best shape possible to meet government requirements.