Helping nonprofit organizations meet increasingly complex accounting and reporting requirements.
We set ourselves apart from our competition by serving each nonprofit client as though they were our only one. The significance to our practice and volume of the services provided to the nonprofit industry allows us to maintain the expertise and experience required to serve them while reminding us every day of the value to us of each client we have. Our nonprofit organization clients are faced with the same financial challenges as our for-profit clients – meeting increasingly complex accounting and reporting requirements, establishing and carrying out effective internal controls to protect their assets, and generating accurate and timely financial statements upon which management can best make decisions to govern the organization. They do this with tireless passion for their missions and the needs of those they serve, all the while protecting their status as tax-exempt entities and meeting a high standard of accountability to the public.
JPMS Cox, PLLC serves a large number of nonprofit clients. These organizations operate for charitable or other nonprofit purposes. With more than 1.5 million nonprofit entities in the United States, the scrutiny and complexity of these organizations has increased significantly. Most of these entities are exempt from income tax under the Internal Revenue Code (IRC), unless they engage in commercial activities, in which case they may be subject to unrelated business income tax. Such organizations may be formed as nonprofit corporations under state law, or they may be in the form of a charitable trust. These organizations include agricultural associations, business associations, social organizations, and charitable organizations under IRC Section 501(c)(3) that can accept tax deductible donations. Charitable organizations may be public charities or private foundations.
JPMS Cox, PLLC performs audit, tax, small business services, and other consultative services, as needed, to our nonprofit clients.
Our firm’s audit approach utilizes techniques that meet the auditing standards governing our profession. In addition to allowing us to audit financial records, our procedures are designed to identify suggestions for improved efficiency and effectiveness of accounting controls and procedures. We seek to enhance management’s ability to meet its objectives by serving as a source of support for dealing with financial challenges unique to our nonprofit organization clients. We apply our nonprofit industry insights and experienced perspectives to generate ideas for minimizing risk and improving efficiency.
For Internal Revenue Service (IRS) reporting, we prepare Form 990-PF for private foundations and Form 990 or 990-EZ or 990-N for public charities and all other tax-exempt entities. We advise clients on the type of tax form required. For private foundations, we offer suggestions in order to minimize the excise tax that must be paid and advise on how to avoid self-dealing transactions with disqualified persons. For public charities, we analyze their support to make sure they are meeting the public support test required to maintain public charity. We advise clients if they need to file Form 990-T to report unrelated business activities and pay the appropriate tax. We assist our clients in filing applicable forms with the Arkansas Attorney General’s office and the Arkansas Secretary of State. We advise IRC Section 501(c)(3) clients how to substantiate charitable contributions with written acknowledgement to donors. For new tax-exempt entities, we can file the appropriate form to request tax exemption from the IRS.
Our small business services department is equipped to help our non-audit clients with bookkeeping and payroll services. We are able to file sales taxes and property tax reports for clients who need these services. We provide other consulting services, as needed, for special bookkeeping or accounting questions. Some of our clients are not able to fully staff a controller’s department, and our small business services group will fill in the gap where these services are needed.
We advise our clients on other matters as requested, whether tax questions or accounting issues.
Many of our nonprofit clients have participated in mergers. If an organization contemplates a merger with another entity, we are able to research and advise the client on tax law and reporting issues as well as accounting issues. We can assist with combining the financial records and report the changes to the IRS. We can project the effect the merger will have on the public support test, for public charities.
Some of our clients are supporting organizations to other tax-exempt entities. We advise the clients on what this designation means and the special reporting required as a supporting organization. These organizations do not have to meet a separate public support test.
The IRS recently revoked the tax-exempt status of a number of charitable organizations, especially smaller organizations that did not realize they had an annual reporting requirement with the IRS. The IRS allows an entity to apply for retroactive relief to reinstate their tax-exempt status. We have helped quite a few of these entities file the appropriate forms to become tax-exempt again. These clients needed the retroactive reinstatement so that charitable contributions received would be tax deductible to donors.