How does a Greenwich nonprofit or charitable organization qualify for tax-exempt status?

Tax Exempt Status Greenwich

In order to obtain a financial ranking as a charity in accordance with the Internal Revenue Code (Section 501), an organization must officially apply for a tax exempt status and then provide the IRS with regular and detailed tax reports to maintain its eligibility for these exemptions. The financial statements required during the income tax period are subject to strict guidelines. Document processing and verification submitted under the supervision of a qualified accountant is recommended for accuracy and compliance to federal and state charity tax laws. THF Tax Solutions offers Greenwich non-profit organizations accounting upkeep and tax reporting services in accordance with current IRS regulations.

What financial statements are charitable organizations required to submit when filing taxes?

Tax exempt organizations are required to submit Form 990 and related documents to the IRS annually. Related documents include:

  • A detailed income statement of donations, expenses and salaries
  • A precisely categorized balance sheet that includes accounts payable and receivables
  • An revenue statement that includes fundraising and operations services
  • Additional expense statements for individual programs (i.e. educational, informational, and all forms of solicitation)
  • Revenue support schedules that include specifically categorized income sources

THF Tax Solutions provides ongoing support to Fairfield charities in the upkeep and maintenance of all tax related documents and can also provide helpful tips in setting up a straightforward accounting system for management throughout the year.

For a free one hour consultation on the most recent tax laws and how THF Tax Solutions can maximize tax benefits for your organization contact Tom at 203 858 8043 or tom@thftax.com

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