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Non-Profit Organizations

Specializing in Nonprofit Accounting Services and Tax Compliance

At Johnson, Murphey, and Wright, we have a passion for working with those who serve others. We have focused our practice on nonprofit and governmental organizations. We currently work with various nonprofit and governmental agencies including; local governments, utility districst, schools, churches, and other 501c3 charitable organizations. 

Nonprofit organizations face unique challenges that for-profit businesses do not, such as the annual submission of form 990, compliance with uniform guidance requirements and paying taxes on unrelated business income. That's why it pays to have a dedicated team of tax and accounting professionals on your side that specialize in nonprofit accounting and tax compliance.

Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations, which includes the following items.

  1. Income Statement with very specific revenue and expense categories like donations, salaries, postage, rent...

  2. Balance Sheet with specific categories like cash, accounts receivable, accounts payable...

  3. Functional Expense Statement with all the expenses allocated to either program services, fundraising, or operations.

  4. Individual Program Expense Statement that reports all of the expenses for each program or service like seminar programs or educational mailings.

  5. Revenue Support Schedules that detail the organization's sources of income in specific categories like charitable donations, membership fees, investment income.

The IRS uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. So it's imperative that you build your accounting system around these revenue and expense classifications.

Here's what we do for you...

  • Audit your financial statements

  • Evaluate your accounting policies

  • Meet with your Board to review your financial statements

  • Prepare and file the 990 and 990T tax forms

  • Assist you in obtaining your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies

Let us help you setup and/or maintain your non-profit tax-exempt status by requesting a Free Consultation below.

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