Are You Really A Non-Profit?

Over the past few months I have had several conversations about and questions regarding whether a company is truly a non-profit organization in the State of Florida. Unfortunately, the answer in all cases was NO. This prompted me to provide some clarification on how to truly become a nonprofit, 501(c)3 organization.

To become a 501(c)3 organization, you must complete ALL of the following steps. Failure to do so will result in your organization not being recognized as a nonprofit and not being able to reap the full tax benefits as such.

PHASE I

As with any corporation in Florida you must register your nonprofit with the Division of Corporation with the State of Florida by filing not-for-profit articles of incorporation. You can file them and pay the filing fee online at www.sunbiz.org. Once you have completed this process, you will receive a certification from the state recognizing you as a nonprofit corporation. This document will enable you to apply for your sales tax exemption and open a bank accounting the nonprofit’s name.

Sidebar: Please understand that at this point you are only recognized by the State of Florida ONLY as a nonprofit organization. You must complete the next phase to obtain federal 501(c)3 status.

PHASE II

The next step is to complete and submit your application for recognition of exemption to the Internal Revenue Service so that they may recognize you as a nonprofit as well for tax purposes and give you your 501(c)3 designation. This designation DOES NOT come from the state in which the corporation is registered. Additionally, any donors to your organization MAY NOT deduct any charitable contribution to your organization until the 501(c)3 designation has been obtained

IRS Form 1023 is the application you need to complete and submit to the IRS. An organization exempt from federal income tax if it is organized and operated from one or more of the following purposes.

• Religious.
• Charitable.
• Scientific.
• Testing for public safety.
• Literary.
• Educational.
• Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment)
• The prevention of cruelty to children or animals.

The exemption application is extensive and requires information relating the activities the nonprofit will conduct that warrant the 501(c)3 status as well as financial statements over a five-year period (either actual or projected). The application process can also be lengthy and many times the application is not approved the first go around which will require corrections and resubmissions. I highly recommend the enlisting the assistance of an accountant and an attorney familiar with the application and who will coordinate their efforts to give you a better chance of being approved with your first submission. My company New Genesis Financial, LLC is familiar with this process and is here to help! If you are in need of any nonprofit services please contact us at 407-992-4454.

IRS CIRCULAR 230 FOOTER: New IRS rules which govern the way we conduct our tax practice, dictate that we give you the following notice: Any tax advice or opinion contained in this message was not intended or written to be used, and cannot be used, by anyone to avoid any tax penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. In addition, this advice is not intended or written to be used, and cannot be used by you for the purpose of promoting, marketing, or recommending any tax-related matters addressed within to another party. You are not prohibited from sharing this advice with third parties. However, the third parties should seek their own advice from an independent tax advisor based on their particular facts and circumstances.

Lazy Days of Summer? Think Again!

Now that you have filed your 2008 taxes whatever will you do with you “free” time over the summer? Taking a well deserved vacation or relaxing by the pool both sound like very good options. However, now is not the time to get lazy about your finances. During the summer months is the perfect time to consider a mid-year financial review. Completing a review in the summer allows time for you to see any potential tax liabilities you may be headed towards and gives you time to make corrections, if possible. This is also a good time to see how certain life events such as a new job, new baby or marriage will impact your tax liability.

The recent passage of the multi-billion dollar stimulus bill has made significant and sweeping changes to the federal tax code. These changes are designed to affect most taxpayers in some way in an effort to revive our economy. Of all the changes made that could potentially affect the most people is the Make Work Pay credit. This credit reduced the current tax tables employers use to figure federal withholding to allow employees to take home more money in their paychecks. However, this credit may place some taxpayers in a situation where they are now unknowingly paying less withholding for the remainder of the year and may end up with a tax liability or a lesser refund than anticipated come tax time. Now is the perfect time for you to determine where you stand.

Mid-year financial reviews help you determine whether you are on the right track for the upcoming tax year based on your current financial position and tax laws in effect. These reviews could include a basic tax plan for the upcoming tax year or could be more extensive and include multiple years and various “what-if” scenarios for you to consider. The reviews may also include assistance with budgeting and credit counseling, if needed, and a business analysis if you are an entrepreneur.

So how can accountants like myself seemingly see into your financial future? Well, we can’t. But skilled accountants use the rules the IRS has given us in the Internal Revenue Code to play the tax game to your best advantage based on the financial and personal information they receive from you. The analysis provided in a mid-year tax review allows you to make informed decisions and take a proactive approach to your finances. So enjoy your summer but remember to take advantage of the affordable Mid-Year Review services New Genesis Financial provides and take control of your finances today!

Intuit Announces 25 Finalists in ‘Power to Get More Done’ Stimulus Grant Competition

MOUNTAIN VIEW, Calif. – June 1, 2009 – Twenty-five accounting and tax professionals from 19 states are finalists in Intuit Inc.’s (Nasdaq: INTU) Power to Get More Done Stimulus Grant competition.

“These 25 finalists are the cream of the crop, exemplifying how they plan to use the grants to offer new services, create new jobs and provide economic growth for their communities,” said Georg Gerstenfeld, vice president of marketing for Intuit’s Accounting Professionals Division. “The number and quality of applications were outstanding and underscore what a vital role accounting and tax professionals play in the health of our overall economy. From the more than 700 applicants, these finalists stood above the rest.”


Community Commitment

Within their applications, the finalists consistently demonstrated a willingness to help their communities by offering financial training to students, minorities and small businesses. Additionally, many performed volunteer work, promoting assistance to low-income families and working to increase financial literacy among high-school students.

The 25 finalists are:

Tamara Babcock (Mitchell, Ala.)
Rebecca Bambarger (Chino Hills, Calif.)
David Pickett (Orrville, Ohio)
Aliyah Bonaparte (Philadelphia, Pa.)
Darren Brady (Charlotte, N.C.)
Ramona Brookins (Orlando, Fla.)
Wendy Cumming (Soquel, Calif.)
Dirk Dixon (Clive, Iowa)
Gerri Harrison (Johnson City, N.Y.)
Anita Howell (Myrtle Beach, S.C.)
Daniel Kavanaugh (Pleasanton, Calif.)
Randall Kelly (Lewis, Kans.)
Reynaldo Lozano (Greeley, Colo.)
Amy Mezo (Jonesboro, Ill.)
John Pearson (Norwalk, Conn.)
Robert Beninger (Cocoa, Fla.)
Nathan Rice (Williston, Vt.)
Renee Richard (Tucson, Ariz.)
Daniel Ruotolo (Mount Laurel, N.J.)
Susan Schutz (Glendale, Colo.)
Kevin Stith (Louisville, Ky.)
Marybea Varvel (Camino, Calif.)
Tammy Williams (Elkins, W.Va.)
Donna Wilson (Culver City, Calif.)
Robert Wright (Upper Marlboro, Md.)


Support During Economic Uncertainty

Intuit launched the Power to Get More Done initiative earlier this year to help accounting professionals succeed in these uncertain economic times. The grant competition was designed to help tax and accounting professionals either grow an existing firm or start a new one.

More than 700 entrants submitted high-level business plans that explained how they would use the money to expand their business while helping their community. A panel of accounting professionals, an Intuit executive and representatives from three co-sponsors judged the applications and selected the finalists.

Co-sponsors include the National Society of Accountants, the National Association of Enrolled Agents and the National Association of Tax Professionals.

In addition to the grant competition, the Power to Get More Done initiative offers accounting and tax professionals discounts that they can pass on to their small business clients to help them save time and money.

About Intuit

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Our flagship products and services, including QuickBooks®, Quicken® and TurboTax® , simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Our financial institutions division, anchored by Digital Insight, provides on-demand banking services to help banks and credit unions serve businesses and consumers with innovative solutions.

Founded in 1983, Intuit had annual revenue of $3.1 billion in its fiscal year 2008. We have approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.

Financial Statements 101

Financial statements are formal presentations of a company’s performance. They show you where a company’s money came from, where it went, and where it is now. Each month you should review your financial statements to keep track of your cash inflows and outflows as well as evaluate your company’s overall performance. As a client of New Genesis Financial, we will review your financial statements with you; however, it is helpful and beneficial for you to understand the basics of financial statements and how they all play together to give the you the full financial picture of your business.

There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time. Cash flow statements show the exchange of money between a company and the outside world also over a period of time. While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether the company generated cash - there is a distinct difference. The fourth financial statement, called a “statement of shareholders’ equity,” shows changes in the interests of the company’s shareholders/owners over time.

Although you will receive separate financial statements, keep in mind that they are all related. The changes in assets and liabilities that you see on the balance sheet are also reflected in the revenues and expenses that you see on the income statement, which result in the company’s gains or losses. Cash flows provide more information about cash assets listed on a balance sheet and are related, but not equivalent, to net income shown on the income statement.

As a business owner it is important to understand that no one financial statement tells the complete story. But combined, they provide very powerful information for businesses to gauge their performance.