Nonprofit Tax
Experienced nonprofit tax services to help your organization manage risk, stay compliant, and protect your tax-exempt status.
Although many nonprofit organizations are tax-exempt, they must still understand and comply with complex federal, state, and local tax requirements.
Our nonprofit tax specialists deliver tax advisory and compliance services tailored to exempt organizations. With a deep understanding of the tax complexities nonprofits face, we help organizations navigate evolving requirements and implement solutions that support their mission.
WHAT NONPROFIT TAX SERVICES DOES CRI CAPINCROUSE PROVIDE?
Our nonprofit tax and advisory services are backed by decades of experience serving exempt organizations and are designed to help you maintain compliance, minimize risk, and evaluate potential opportunities.
Exempt Organization Tax Returns and Filings: Our professionals assist with required federal and state filings, including Form 990 and Form 990-PF, and help ensure organizations meet ongoing obligations and maintain tax-exempt status.
State Tax Issues: State requirements often extend beyond federal obligations. We help organizations assess and manage compliance related to state filings, payroll and sales tax, charitable solicitation registrations, and more.
Unrelated Business Income Tax (UBIT): Certain revenue-generating activities can create tax obligations for exempt organizations. We offer three levels of UBIT study services to help nonprofits identify, analyze, and document activities; plan for potential UBIT issues; and meet any reporting requirements, including preparation of Form 990-T and related state returns.
Exempt Organization Formation and IRS Determinations
Our professionals assist with all non-legal services required to form a qualified tax-exempt organization. This includes advising on public charity status versus private foundation status and preparation of IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, and IRS Form 8940, Request for Miscellaneous Determination, to request changes in a nonprofit’s exempt status.
Ministerial and Religious Worker Tax Issues: Faith-based organizations often face tax challenges related to ministerial compensation, housing allowances, and other matters. Our specialists provide guidance tailored to the unique needs of religious organizations.
International Tax Matters: Organizations with international operations, missionaries, U.S. citizen employees working overseas, or cross-border activities can benefit from specialized guidance on international tax considerations.
Charitable Gift Planning: We help exempt organizations with charitable contribution rules, gift acceptance considerations, planned gifts, and the tax-related aspects of fundraising and donor support.
Assistance with IRS Audits
IRS audits can present significant compliance and reporting challenges for tax-exempt organizations. Our experienced nonprofit tax professionals help organizations navigate the audit process through documentation preparation and review, audit representation, and communication with taxing authorities.
Clean Energy Credits
Nonprofit entities are eligible for certain clean energy credits under the Inflation Reduction Act of 2022 and can realize significant benefits with the right planning and substantiation. We help organizations assess project eligibility, prepare supporting documentation, and navigate the filing process.
Additional Services: Our advisors can assist with identifying and addressing tax-exempt status requirements and compliance concerns, forming business structures, evaluating compliance with excess benefit and intermediate sanction rules, and more.
Frequently Asked Questions
Nonprofits can file for tax-exempt status with the IRS, and churches (including integrated auxiliaries and conventions or associations of churches) that meet the requirements of section 501(c)3 of the Internal Revenue Code are automatically considered tax-exempt. However, tax-exempt status doesn’t eliminate all tax and reporting obligations.
Nonprofits with tax-exempt status are generally exempt from federal income tax on activities substantially related to their exempt purpose. Additional tax rules and filing requirements may still apply, such as payroll taxes, state taxes, unrelated business income tax, excise taxes on excessive executive compensation and excess benefit transactions, and the private foundation tax on net investment income.
Organizations maintain tax-exempt status by complying with IRS rules regarding annual reporting obligations (including IRS Form 990), private benefit/inurement, unrelated business income, political campaign activity, lobbying, and operating in accordance with their stated exempt purpose.
Most nonprofits must file IRS Form 990, an annual information return. The version of Form 990 used depends on the organization’s annual revenue and assets and whether it is a public charity or private foundation. Additional filings may also apply, depending on the organization’s circumstances.
Broadly, UBIT may apply when a tax-exempt entity regularly conducts a trade or business activity that is not substantially related to its exempt purpose. Certain activities can generate taxable income even for tax-exempt organizations.
Specialized nonprofit tax services help organizations address compliance obligations, evaluate tax risks and opportunities, manage complex regulations, and protect their tax-exempt status.
Just use the form below to contact us and learn how our nonprofit tax specialists can help you navigate tax complexities so you can focus on your mission.
