Compliance: Nonprofit Taxes, Audits, and Reporting Dr. Alicia - - PowerPoint PPT Presentation

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Compliance: Nonprofit Taxes, Audits, and Reporting Dr. Alicia - - PowerPoint PPT Presentation

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Compliance: Nonprofit Taxes, Audits, and Reporting Dr. Alicia Schatteman DCNP October 2017 1 www.nonprofitscholar.com Facebook: Nonprofit News to Use Twitter: @aschatteman Blog: Recovering Executive Director LinkedIn Instagram

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Compliance: Nonprofit Taxes, Audits, and Reporting

  • Dr. Alicia Schatteman

DCNP – October 2017

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www.nonprofitscholar.com Facebook: Nonprofit News to Use Twitter: @aschatteman Blog: “Recovering Executive Director” LinkedIn Instagram

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Factor % Scandals in the sector 73% People don’t understand the complexity of the sector 48% Nonprofit executives’ salaries 45% Low program ratios 12% Its much easier to get information on nonprofits today 9%

Source: Coffman (2006)

Money Week 2016

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Federal

  • IRS

determination and annual filing

  • Employment

tax

  • Funding

requirements State

  • Statutes:

income tax, sales tax, solicitation

  • Funding

requirements Local

  • Ordinances
  • Property tax
  • Utility charges
  • Funding

requirements

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US Nonprofit Organizations: IRS Classifications

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  • –
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Revenue 2015 2014 2013

Contributions $1,426,776 $710,678 $609,999 Investments $4,092 $483 $256 Special Events ($236,160) ($98,989) ($10,956) Sales $37,864 $73,641 $63,178 Total Revenue $1,232,572 $685,813 $662,477

Expenses 2015 2014 2013

Program Services $850,576 $327,276 $277,993 Administration $53,470 $13,002 $7,706 Fundraising/Other $19,145 $37,967 $25,370 Total Expenses $923,191 $378,245 $311,069 Net Gain/Loss $309,381 $307,568 $351,408

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Federal

  • IRS

determination and annual filing

  • Employment

tax State

  • Statutes:

income tax, sales tax, solicitation Local

  • Ordinances
  • Property tax
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Specific rules and regulations around the use of professional fundraisers on behalf

  • f your organization.
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Revenue & Expense Data for VIETNOW NATIONAL HEADQUARTERS

Revenue 2013 2012 2011 2010 2009 Contributions $979,556 $1,288,187 $1,442,813 $1,770,895 $1,346,112 Program Services $8,037 $0 $0 $0 $0 Investments $18,668 $13,024 $17,543 $8,587 ($17,057) Special Events $8,406 $15,543 $9,438 $0 $0 Other $7,285 $2,355 $4,970 $0 $0 Total Revenue $1,021,952 $1,319,109 $1,474,764 $1,779,482 $1,329,055 Expenses Program Services $117,732 $125,308 $174,191 $152,285 $165,861 Administration $127,392 $90,585 $80,810 $101,936 $88,404 Fundraising/Other $869,411 $1,155,519 $1,301,921 $1,560,707 $1,152,600 Total Expenses $1,114,535 $1,371,412 $1,556,922 $1,814,928 $1,406,865

Net Gain/Loss ($92,583) ($52,303) ($82,158) ($35,446) ($77,810)

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IL Attorney General

  • Illinois Attorney General Office searchable database of IL

nonprofits http://www.illinoisattorneygeneral.gov/charities/search/i ndex.jsp

– Charitable Organization Annual Report Form AG 990-IL :

  • how much money the charitable organization received
  • how the charitable organization spent the donations, including

money paid to professional fund-raisers

  • how much the charitable organization paid their three highest

paid employees

  • the value of the charitable organization’s assets and liabilities as
  • f the end of the year
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Federal

  • IRS

determination and annual filing

  • Employment

tax State

  • Statutes:

income tax, sales tax, solicitation, property tax Local

  • Gaming
  • Ordinances
  • Property tax
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Source: Association of Fundraising Professionals (2010)

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Types of Reporting

Mandatory Voluntary External Internal Audited Financial Statements Annual Report IRS 990 Audited Financial Statements Budgets Strategic Plans Strategic Plans Board Minutes Performance Data Reports Website Ads Meetings

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Alicia Schatteman

Associate Professor Center for Nonprofit and NGO Studies Department of Public Administration Northern Illinois University DeKalb, Illinois 815-753-0942 aschatteman@niu.edu