IRS Requirements for Non-Profit Organizations Presented By: Emilio J. Miyares Gulf Region Trustee

Introduction  With only the exception of a few non-profit organizations, all tax-exempt organizations must file an annual tax return with the IRS.  There are 3 levels of tax compliance  Form 990-N  Form 990-EZ  Form 990

Annual Electronic Filing Requirements for Small Tax-Exempt Organizations  Form 990-N Electronic Notice (e-postcard)  Annual Gross Receipts of less than or equal to $50,000.  This applies only to organizations who are NORMALLY under $50,000.  Failure to file a return for three consecutive years will result in revocation of the organization’s tax-exempt status.  Additional information is available at the IRS website

Form 990-EZ  Fiscal Year 2010  Gross Receipts less than $200,000  Total assets less than $500,000  Requirement of 7 additional schedule attachments when applicable

Form 990-EZ Cont.  Organizations must review instructions for each schedule to determine reporting requirements  Example of Schedule B (Contribution of $5,000 or more from a single donor)

Form 990  Fiscal Year 2010  Gross receipts more than $200,000  Total assets more than $500,000  Requirement of 16 additional schedule attachments when applicable

Form 990 Cont.  Organizations must review instructions for each schedule to determine reporting requirements  Example of Schedule M (Reporting of non- cash contributions)

Form 990 Cont.  Recommend policies and procedures but not required by IRS Revenue Code  Whistleblower policies  Conflict of interest  Retention and destruction policies  Attachments  Form 990 questionnaire  Financial Ethics and Accountability

Audit Committee  Minimum of 3 volunteers  one a member of the board of directors  one must qualify as a “financial expert”  Committee is responsible for the appointment, compensation and oversight of the independent accounting firm employed for the audit  Committee will send request for proposals to accounting firms minimally every 5 years to select accounting firms  Committee will report at least once annually to the board of directors

Annual Audit  Engage an independent CPA firm to conduct an audit of your financial statements  The audit will be conducted in accordance with Accepted Accounting & Auditing Standards  A report of the examination and recommendation to the financial statements will be issued  The report will go directly to the audit committee and the board of directors

QUESTIONS & ANSWERS Please contact Emilio Miyares at or by phone at (305)