We offer a range of tax services, including individual tax preparation, business tax preparation and state tax compliance.
As we are all aware, managing the finances of a non-profit organization requires attention, therefore, managers of nonprofit organizations in Bethesda, MD, have a duty to monitor the financial well-being of their organizations and make sure that state and federal regulations are being followed. This responsibility ensures that the non-profit organization maintains its tax-exempt status and monitors the tax obligations of the organization for them to continue to serve its mission effectively.
Watter CPA specializes in helping non-profits organizations in preparing and understanding these requirements and to be able to stay compliant to the regulations. Below, we’ll outline the key tax obligations for non-profit managers and how Watter CPA can assist non-profits organization in Bethesda.
According to Section 501(c)(3) of the Internal Revenue Code, nonprofit organizations must continue to abide with IRS regulations in order to keep their tax-exempt status. Meaning, to maintain this classification, managers must make sure the organization continues to operate for charitable, educational, religious, or other approved reasons. Also, in order for the tax exemption to be effective retroactively to the date of the organization's creation, new non-profits must apply for tax-exempt status within 27 months of their incorporation.
Non-profits organizations must file annual information returns to the IRS to maintain transparency and accountability. The form that needs to be filed depends on the organization's size:
Failure to file any of these forms for three consecutive years will result in automatic revocation of the non-profit organ’s tax-exempt status . Additionally, organizations that lose their exempt status must apply for reinstatement, which can be time-consuming and costly.
Non-profit organizations that engage in income-generating activities unrelated to their core mission are subject to Unrelated Business Income Tax (UBIT). For instance, if a non-profit operates a gift shop or sells merchandise unrelated to its charitable purpose, this income may be taxable and if it earns more than $1,000 during a tax year they are required to file Form 990-T and pay UBIT.
For non-profit organizations, accurately recording and reporting grants and donations is essential for donors to be eligible for tax benefits. You need to keep in mind also that the grantor's instructions must be followed while using grant funds, and misuse may result in fines or loss of future funding. Nonprofit organizations can get assistance from Watter CPA in making sure that these standards for reporting grants and donations are properly followed.
Non-profit organizations in Bethesda face several financial challenges that require careful management, these include:
At Watter CPA, we understand the accounting and tax needs of non-profit organization managers in Bethesda, MD, face. That is why we offer specialized accounting and tax services that help non-profit organizations maintain compliance and improve their financial health. Here’s how we can support your organization:
We ensure that your Form 990 filings are filed correctly and on time, helping you maintain your tax-exempt status while providing transparency to donors and stakeholders.
We provide expert bookkeeping services to help you manage income, donations, grants, and expenses effectively. We also provide financial reporting services which include cash flow analysis, profit and loss statements, and detailed financial statements that allow you to make informed decisions.
We can assist you in managing and reporting grant funds, ensuring compliance with grantor requirements and accurate use of funds.
If your non-profit organization earns unrelated business income, we help you calculate and file for Form 990-T to comply with UBIT regulations. Aside from that, we can also advise you on ways to minimize the impact of UBIT on your organization’s finances.
For non-profit organizations with employees, we handle payroll tax management, ensuring compliance with federal, state, and local payroll tax requirements, including withholding for Social Security, Medicare, and unemployment taxes.
Non-profit organization managers in Bethesda, MD, rely on Watter CPA for our expertise in the non-profit sector. Here’s why we’re the right choice for your accounting needs:
Managing the financial responsibilities of a non-profit organization in Bethesda, MD, requires careful attention to detail and compliance especially in states that have complex tax regulations. But worry no more, when it comes to complex accounting and tax regulations Watter CPA is here to help your organization and navigate these obligations to maintain compliance, and improve financial performance. Therefore, whether you need assistance with tax preparation, UBIT compliance, or financial reporting, our team is here to support you every step of the way.
Let Watter CPA handle your accounting needs so you can focus on what matters most: fulfilling your organization’s mission and making a difference in the community.
Our dedicated team is ready to assist you on your path to financial success.
5 N Adams St,
Rockville, MD 20850, United States
At Watter CPA, we believe that understanding your needs is the first step toward providing exceptional service. Determining the specific service required involves a thorough review of your financial situation, which is only possible with proper documentation and accurate data. This approach helps us deliver tailored solutions that best meet your needs and compliance requirements.
Below, you will find answers to some of the most frequently asked general questions. If you have more specific inquiries or require additional information, please feel free to Contact Us.
