We can help you setup and maintain your non-profit organization’s tax-exempt status by handling all the IRS reporting for you.

Each year the IRS requires most tax-exempt organizations to submit the Form 990 and its relations,

  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.

  • Review and compile your financial statements
  • Design, install, and maintain your Accounting System
  • Weekly, bi-weekly, or monthly payroll preparation
  • Payroll Tax Preparation and Deposits
  • Provide training for your accounting personnel
  • Complete and file your non-profit status application
  • Provide training for your board on non-profit financial statement usage and effective budgeting practices
  • Prepare and file the 990 and 990T tax forms
  • Prepare your initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.
  • Churches: We prepare the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers.


Our Challenge

A non-profit organization focused on environment protection had the dual challenge of bringing sufficient funding to support the organization’s operations and reverse a trend that resulted in a substantial deficit at year end.

Our analysis revealed that the Organization did not have the information necessary both to make timely decisions nor reliable information to act on.  In short it could not take the preventive measures necessary to avoid spending cash it did not have, nor could it attack the problem because it wasn’t sure what to correct.

We suggested restructuring the organization’s financial infrastructure from budget execution, to time allocation, to execution approval and revamping its accounting software with a more robust product. The first step is to have a system that allowed for execution of each grant and project to understand how much secured versus unsecured funding was available.  No commitments were made against unsecured funding unless there was management approval. Utilizing the right infrastructure tools, we could work closely with the management team to monitor the organization’s financial performance on a timely basis.  Both graphic and numeric monthly reports were delivered to the Finance Committee and Board along with process improvement suggestions.  For example we noticed that the issuance of invoices was always late and were able to prioritize this area.

Compared with the first year financial performance, this Organization made a huge turnaround turning a deficit into a small positive number in year two and a larger positive number the following year. The turnaround did not come without hard decisions and pain.  Still this Organization (with the same budget) has a healthy and sustainable financial model that gives the organization more flexibility to focus on improving the mission-driven programs.


Please contact us with any questions.

Call, email, fax, or use the contact form!

Office: 4641 MONTGOMERY AVE #300. BETHESDA, MD 20814
Phone: (301) 913-0008
Fax: (240) 744-7176