Nonprofits

Nonprofits2019-05-20T11:22:47+00:00
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Let CRI help you create a rock-solid foundation for your nonprofit’s success!

Solid finances are the foundation for nonprofit organizations with financial reporting, cash flow planning, governance, regulatory compliance, and business consulting integrating to establish a rock-solid basis. CRI delivers an aggregate of traditional CPA services – such as audit, single audit, and tax – and non-traditional consulting, client accounting, data analytics, cybersecurity, and financial services. Our nonprofit CPA team can ease your responsibilities by providing proactive solutions when and where you need them the most. We derive our expertise from serving hundreds of nonprofit organizations, such as:

Our clients range from start-up entities to composite organizations with $1 billion in assets. No matter the size of your nonprofit, you can expect top-line service from seasoned professionals with limited staff turnover. We are proud to serve our clients so that they can be the epicenters of our local communities.

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Down-to-earth descriptions of our services.

Accounting & Auditing Services

Services Also Available for Nonprofits

OMB Uniform Guidance Single Audit

When a nonprofit entity receives significant federal funds, the provisions of Office of Management & Budget (OMB) Uniform Guidance (Single Audit) come into play. This makes it even more important to comply with the related rules in order to avoid potential penalties and sanctions. In addition, certain states such as Florida, New Mexico, and Texas also have single audit requirements at the state level. CRI’s nonprofit auditors work with entities impacted by Uniform Guidance daily. We share this valuable experience with our clients, guiding them to navigate through the Single Audit details – from the definition of major programs to the relationship of internal controls over compliance. Whether funding is direct or generated by a pass-through entity, an experienced and knowledgeable audit firm performing your nonprofit organization’s Single Audits is a key to successfully and efficiently addressing the requirements.

Business Support & Transactions Services

Employee Benefit Plan Services

Services Also Available for Nonprofits

Employee Benefit Plan Audit

Employee benefit plan audits are a highly specialized service with continually increasing scrutiny by the DOL and other regulators. Therefore, it’s imperative to choose a firm that understands not only benefit plan audits but also the specific accounting applicable to nonprofit organizations. A nonprofit could have 403(b), 401(k), or other types of benefit plans. While there are similarities between the different types of benefit plans, there are also significant differences, such as the allowable investments within the plan (e.g. typically annuities or mutual funds), the permissible vesting schedules, and the lack of a requirement for discrimination testing.

Governance, Risk & Assurance Services

Services Also Available for Nonprofits

Nonprofit Single Audit Compliance Advisory Services

Nonprofit organizations rely heavily on governmental (federal, state, or local) grants as a supplemental source of funding. Whether funding is needed for capital asset purchases or for personnel costs related to specific programs, grants are a valuable resource, but the related compliance requirements are often complex.  CRI can assist your organization in complying with grant regulations unique to grant awards – specifically requirements related to creating, documenting, and implementing internal controls over the handling of government grant funds. CRI provides training and assistance for your staff on Single Audit compliance, documentation, grant reporting, and indirect cost calculations. CRI also furnishes guidance on the creation of your Schedule of Expenditures of Federal Awards (and state awards, if applicable), which is crucial for annual grant reporting.

Single Audit requirements frequently change, as with the new Uniform Guidance, and CRI is your resource for navigating the federal rules related to Single Audits. CRI offers assistance to your entity from the initial grant award through the completion of the grant reporting via expertise in grant accounting, internal controls, and regulation compliance.

IT Audits & Assurance Services

Tax Services

Services Also Available for Nonprofits

Nonprofit Forms 990 Services

A Form 990 is not only a requirement; it is also an important document that should reflect an accurate picture of the nonprofit entity’s operations for the year. CRI’s nonprofit team understands that the 990 is a public form that contains both financial and nonfinancial information and may be the sole source of information that accurately reflects the entity’s operations for interested donors, increasing its overall importance. With growing nonprofit organization scrutiny by regulatory bodies, as well as the use of tax documents by potential donors in considering their contributions, accurate presentation of data in the 990 is critical. From the reporting of revenues and expenses to the responses to questions on policies and board governance, CRI’s knowledgeable CPAs understand the requirements of the 990 and the opportunity to communicate the entity’s mission and purpose. We do more than simply help nonprofits to comply with the tax code. We also aid our clients in accurately and effectively communicating their activities to the public.

Nonprofit Formation and Structure

Nonprofit entities are most often created by groups of people who share a common passion for a particular purpose or specific need. Such purposes may be those that enhance the health, education, or welfare of individuals or groups for religious purposes or one of many other objectives. When forming a new nonprofit entity, there are a number of considerations that should be taken into account to aid in the effectiveness of fulfilling the stated mission and objectives. Among these structural issues are considerations of the composition of the board of directors and best practices for policies that should be adopted. Additionally, there may be a need for the creation of a for-profit subsidiary or related entity to conduct activities that are taxable in nature. From the determination of the specific purpose of the organization to the filing of the request for tax-exempt status, the specialized knowledge of CRI professionals can guide the way to the nonprofit structure that best suits your organization.

Nonprofit Tax-Exempt Status Elections & Maintenance (Forms 1023 and 1024)

One of the starting points for becoming a tax-exempt entity is the preparation and filing of either Form 1023 or Form 1024  with the IRS. The determination of which form to file is made based on the IRS code section under which the entity wishes to apply for the tax exemption. Each of these forms requires the entity to include a full description of the proposed activities that will be conducted, including fundraising activities and information about anticipated receipts and expenditures. If the entity is already active, historical financial data must be provided with the application for tax-exempt status.

The importance of Forms 1023 and 1024  cannot be overlooked since the initial request to become a nonprofit will determine the organization’s status under the income tax law. The proper completion of Form 1023 and Form 1024  is well-understood by CRI’s nonprofit professionals, who have many years of experience in guiding organizations through this process. Our experience is a key to successfully navigating the complexities of the countless IRS regulations that surround the tax exemption application and helping you get on your way to accomplishing your organizational objectives.

Nonprofit Unrelated Business Income Tax (UBIT)

The operations of a nonprofit organization are thought to be exempt from income taxation, and this tax exemption is generally true. However, some activities conducted by nonprofits can produce revenues that are outside of the usual scope of the entities’ tax-exempt operations, thereby subjecting the net earnings to taxation by the IRS. While these taxable operations may still be a very useful part of the nonprofit’s activities, it is important to have a CPA with an in-depth understanding of the complex IRS rules to ensure that taxes are minimized and that the overall tax-exemption of the organization is not jeopardized. CRI’s nonprofit specialists are experienced in the intricacies of this area of tax law and routinely work with our clients to properly analyze the specifics of your activities to aid in effective planning, as well as compliance with the UBIT rules.