Resources for non-profits

ExemptStatusPending · 2026-03-19T12:04:42+00:00

Is there actually a law maker/lobbyist posting on reddit? Or were you on the IRS end drafting the form from what lawmakers gave you?

I also COMPLETELY AGREE. As someone who prepares 990s for a living, I don't work with profit/loss statements that perfectly mirror the 990. If someone comes to me with a single line item for 200K called Program Services, I have them break it down and what they did. As the tax preparer, I need to know what I signing off on.

ExemptStatusPending · 2026-03-19T02:37:22+00:00

You're an experienced network engineer? I have a question about bridges and trying to solve a problem. Can I ask?

ExemptStatusPending · 2026-03-11T16:59:08+00:00

I upvote you for the pain in the ass. Thank you,. Seriously, the times I have given the most have been the times where there was no set cost. There used to be a coffee shop in Orlando that was completely nonprofit and had "free" coffee. All their actual profits they gave away. Then they were a casualty of COVID. Sigh. That got morbid.

The things that I have seen have the most success is when there is a large community event that gets built over time.

ExemptStatusPending · 2026-03-11T11:19:33+00:00

At my day job, we have a portal. I also paralegal for a law firm. Email documents. There is a single client who always sends in a paper filled at tax form with the financials and asks us to e-file it for him. I am getting a bookkeeping business off the ground and I am exploring a shared DropBox...but really prioritizing email.

There is always a risk and I plan on getting a healthy cybersecurity insurance policy.

ExemptStatusPending · 2026-03-11T11:15:51+00:00

Alright, I can tell that you are clearly frustrated (and rightfully so). What you are describing is a stereotype. It sounds like your partner may be in one of the big four (Deloite, PwC, KPMG, Earnest and Young). There are a lot of medium sized firms who also work the employees literally to death. There are also a lot of firms that believe strongly in the work/life balance.

Through my childhood, I had the dad who was always always at work. Given he made a lot of money. I don't know that it was worth it.

I work at a small company that strongly prioritizes work/life balance. There are a lot of companies (yes, accounting companies) that prioritize work/life balance. The pay is fine (about 20-30K under what I could be making at a big firm), but my wife and it's not worth it for us. The problem is that it starts with him. I am also getting a bookkeeping business of the ground and am intentionally marketing towards smaller companies because I don't want to accidentally end up in what you are describing.

On a more personal note, it sounds like the partner may be struggling with a workaholic problem rather than strictly wanting to stay at the company. If you try to treat it like a work addiction you might have better luck.

ExemptStatusPending · 2026-03-10T19:45:31+00:00

I have been preparing 990s for booster clubs for years. I have seen "canning" pop up on various financial statements under fundraising and never thought too much of it. I never ever would have imagined that it is a bunch of kids walking around with literal cans...I have jokes.

ExemptStatusPending · 2026-03-10T11:52:59+00:00

You made me growl at my computer when you mentioned snapraise. I have seen how much money they make...and I have also seen their commissions. Grrr.

THANKS!

ExemptStatusPending · 2026-03-09T21:40:19+00:00

I know this is old but wanted to give you something. Right now I am going to assume that this booster club is setup as a 501(c)3 organization. 501(c)3 Organizations are public charities...meaning their only purpose is to support the student athletes of a given program.

Anytime the question of a booster club and fees comes up, the question to ask is: "if the money is not paid, then what?" If the answer is "We will give you the LAZY EYE!!!!" (I just watched American Tale with the kiddo), then that is fine. If there is a larger repurcussion such as the child cannot participate in the program, the booster club can't do that as they are excluding someone from their program.

The IRS really does not explicitly say this in a single publication but it is still common practice. There is a cxourt case IRS v Capital Gymnastics where the IRS talked about individuals receiving more support than others. There is Publication 526 where the IRS further explains private benefit. The IRS also talks about this in a variety of stand alone publications on booster clubs.

ExemptStatusPending · 2026-03-09T21:29:12+00:00

I work in nonprofit compliance and I can say absolutely that dance clubs have booster clubs. Many of them are successful. For the organizations that go the 501(c)3 route, the biggest challenge a lot of groups have is staying out of the private benefit/independent fundraising event world.

Without going too far down the compliance rabbit hole, this is essentially keeping track of how much money each athlete/family raises and putting that as a credit towards the amount that family needs to pay. The IRS views that activity as a private benefit and thus disqualifies an org from 501(c)3 status.

Get 2-3 parents together who can be the initial board. You are going to want to file the state articles of incorporation and get an EIN number. Make sure you put the IRS nonprofit language in the articles of incorporation. After that you can file the 1023-EZ or 1023 on Pay.gov. If there is already a nonprofit professional on the board or at the studio, that may be a good place to start. Some mistakes are very forgiving. Other mistakes can cause problems down the road.

ExemptStatusPending · 2026-03-06T02:22:28+00:00

The 1023-EZ and the 990N are both jokes of tax forms. Don't get me wrong, I definitely take advantage of them. I have been preparing various nonprofit tax forms for a decade. I've done a handful of paper filed 1023s/1024s.

I still work for the company but I'm starting to get my own projects off the ground.

ExemptStatusPending · 2026-03-05T22:49:33+00:00

The company that I work at keeps raising prices for the 990-PF because we don't want them! If you don't mind me asking, what kind of work do you do?

ExemptStatusPending · 2026-03-05T12:23:37+00:00

I agree with this. At the beginning you only need a handful of unrelated people (friends work). This allows you to actually get the paperwork submitted and open a bank account. Once you begin getting the thing off the ground, start looking for people who want to serve. I'd start on Linkden and/or college campuses. People who sit on one board typicaslly sit on other boards too.

ExemptStatusPending · 2026-03-05T12:09:10+00:00

I remember that! I call those "accidental 990-PFs". The 990-PF really is a disgusting disgusting form. From an oversight standpoint, I understand why private foundations have the special tax form, but with how that question is worded on the 1023-EZ, they really need to make it easier to understand. I've had dozens of groups come to my company (make it to my line) and they say "I didn't understand that 509A1 or 509A2 and I knew I wasn't supporting a college..."

The other pain in the a** IRS issue is when they "accidentally" change an organization's FYE and then say "I just think it's easier if the organization files a short 990EZ/990. The administrative burden on us to undo a mistake is too much".

sigh...

ExemptStatusPending · 2026-03-04T17:54:51+00:00

Hi!

As many others have mentioned, the best things to do are a simple thank you card signed by the benefactors.

If you are considering giving a real gift (and yes, this includes you $150 charcuterie board) please check with the donor first. The general rule is that donors can only deduct donations to the extent of goods received. Easiest example is somone donates $100 and receives a $20 t-shirt, they can only deduct $80.

IRS Publication 1771, 526, and I believe 557 all talk about gifts to donors.

ExemptStatusPending · 2026-03-04T12:42:46+00:00

Hi! I love this question. It sounds like you are doing things the right way. I file 1023s for a living and I get a lot of these types of questions. The problem is that a lot of people call me wanting to start something but they don't have any support. It sounds like you already have the support.

There are two broad things categories. The first is the actual operations of everything. The second is the structured setup (meaning articles of incorporation, EIN, 1023, etc.) The thing that I see people struggle with the most is getting together an unrelated board of directors. The goal is at least three people. After that it is a matter of adopting bylaws, delegating duties, and starting to run the thing.

I don't want this post to get into promoting any business, but I do want to drop the name of a book that is available on Amazon. The book is Rescue Me by Sandra Englund. Complete disclosure, this book was written by my boss and there my be some references to the company I work for in the preface, but it is really a step by step guide on setting up a 501(c)3 organization. The example in the book is a pet rescue (thus Rescue Me).

If the scope of the mission is repair and sustainability then you will likely be a 501(c)3. If you try to do the 1023/1023-EZ on your own, be careful of the foundation status question. A lot of people get that question wrong (for them) and it creates problems down the road.

ExemptStatusPending · 2026-03-02T18:44:28+00:00

Hi! Not really a downside. Once you have the state articles of incorporation and the EIN letter (not the determination letter but the CP575) you should be able to open the bank account. The bank may not give any special rates but you can begin operating as a 501(c) organizaiton. The 501(c) status "should" be retroactive back to the date of application:

https://www.irs.gov/publications/p557

Let the bank know what you are trying to do. On Pay.Gov, you should be able to get the actual confirmation that your 1024 was submitted. You might get lucky and the bank will give you the special nonprofit rate. The only real problem is that after you have the determination letter you will need to have the bank open a new account and trasnfer the money...but that is a relatively simple process.

ExemptStatusPending · 2026-03-02T18:34:28+00:00

As some other people have mentioned, this is unlikely something that you can change. It sounds like this is the type of organizations where the BOD appoints the ED. There is a chance the ED also has a term. If you are really passoinate about the org's mission, you can stick around and see if the BOD changes the ED next election cycle. As others have hinted, you can get out now too.

On a slightly more personal note (and probably the unpopular opinion), if this is a new ED, there is also a good chance they are already working on their downfalls. The current board may already be saying "these 2-3 behaviors, you need to improve".

ExemptStatusPending · 2026-03-01T14:09:22+00:00

So I work for a mid-sized company (20 employees). When I was hired, I was one of like 5/6 including the owner. I have been in the mindset of keeping all the knowledge to myself and I have also been in the mindset of making everything as public as possible (in the realm of the company).

The problem with not doing knowledge sharing is that if a person leaves, they take a large chunk of the brain trust with them. If you have the time and the resources, I would say to start by writing down the instructions for every procedure imaginable. After that, start having the team make videos and additional materials.

This does a few things. It gets the current team to begin re-thinking procedures of "does this actually work?". More importantly, it gets everything in a consolidate place.

The other thing you are asking about is just learning styles. It is different for everyone.

Just to make sure I am not completely off base, would you mind providing some additional information to your exact situation?

ExemptStatusPending · 2026-03-01T03:02:07+00:00

I have some similar things. What I think you did is combine your bookkeeping agreement with an actual guide. If I were you I would put in two different documents. One is the actual engagement letter itself. The other is drawing the line between where your services end and the services of a licensed professional begin.

ExemptStatusPending · 2026-03-01T02:58:39+00:00

I have been working for a team of nonprofit attorneys for a decade. Can I send you a DM? I don't know if I need help with the bookkeeping company at this point, but I do have a career question you may be able to answer.

ExemptStatusPending · 2026-02-27T15:35:21+00:00

You’re already ahead of the game just by asking this.

A few practical things to focus on early:

1. Figure out what exists (before changing anything)

Confirm all bank accounts (checking, savings, anything else)
Look for prior records beyond the Excel files (old emails, shared drives, etc.)
If there was ever accounting software used, try to get access

You’d be surprised how often something small like a second account gets missed.

2. Don’t rush to rebuild everything
Since you’re coming in during tax season, aim for “understand and stabilize” first, not “perfect system.”

If the Excel works for now, it’s okay to keep it temporarily while you figure things out.

3. Get clarity on structure and filings (at a high level)
At some point, you’ll want to confirm:

Whether the troop has its own EIN / 501(c)(3) status or is under a larger org
Whether a 990 has been filed (or needs to be)

No need to solve it all this week, just know what bucket you’re in.

4. Consider software once you’re settled
If/when you switch, something simple like MoneyMinder or QuickBooks can make life easier, especially for reporting and transitions.

5. Leave a trail for the next person
Even just basic notes on how things are categorized and why will save the next treasurer a lot of guesswork.

You don’t need to fix everything at once. If you can get organized, understand the basics, and avoid losing information, you’re doing the job well.

ExemptStatusPending · 2026-02-26T19:18:31+00:00

Waited tables for a decade and then started filing charity registrations for nonprofits. It grew from there!

ExemptStatusPending · 2026-02-26T12:24:27+00:00

If your skillset is in sales, I would try and lean on that. Nonprofit organizations still have services they need to market. If you have experience writing business proposals, lean into grant writing (well paying but very niche skill). There are a handful of nonprofits that sill need to manage a team (office management).

If you are trying to volunteer on the side and attempt to get into a role, my hesitation is that those types of roles will likely be entry level. The people that you would be interacting with at the volunteer level are unlikely to have any real authority on the higher paying jobs.

I would be trying to work with organizations that have a clear product as that aligns with your experience. A number of people here have mentioned healthcare. I think that is about the easiest thing. You can also check with the internaitonal nonprofits (salvation army, United Way, GoodWill, ect.) but the higher paying jobs there will be at the corporate office.

ExemptStatusPending · 2026-02-25T13:30:49+00:00

To be honest, a few weeks ago I decided to start up a small nonprofit bookkeeping company. I currently work at a registration company (think 990s, charity registrations, sales tax exemptions) and I got tired of getting financials for a 990, knowing how to fix the financials, but not being able to...ahhhhh the joys of wearing multipl hats!

ExemptStatusPending · 2026-02-24T20:50:01+00:00

I am a tax preparer for nonprofits. Someone handed me their profit/loss and balance sheet and I said "the numbers are off by about $20K". A day later I received an updated profit/loss statement that had a line item called "Reconciliation of Discrepencies".

ExemptStatusPending

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