Tax Issues of Non-Profit Organizations

As you drive down the street, consider how many nonprofit organizations you pass. Churches, schools, hospitals, social welfare organizations, the Chamber of Commerce, your credit union, youth athletic organizations, the Boy Scout troop, labor unions, professional societies, trade associations, your country club, the war veterans' post, and professional sports leagues are all nonprofit organizations.

Nonprofit organizations are generally exempt from federal and state income taxes. Obtaining and maintaining tax-exempt status is more than just having a good purpose, however. Exemption from federal income tax is a privilege, not a right.

We help our nonprofit clients organize themselves to meet the stringent requirements for tax-exemption, file applications for recognition of tax-exempt status, determine their private foundation status, operate in a manner to maintain their favored status, and file their annual information and tax returns. We counsel our clients on compensation, unrelated business income, personal benefit, legislative activities, conflicts of interest, and other matters of concern unique to nonprofit organizations. Our objective in this area of our practice is to help our nonprofit clients comply with federal and state tax laws so that management's attention can be devoted exclusively to carrying out their important good works.

Our experience is unparalleled among small CPA firms. Ronnie has worked in this exciting area of tax law since 1976. His client list has included small and large public charities, hospitals, hospital systems, schools, churches and other religious organizations, some of the largest private foundations in the nation, youth athletic organizations, professional societies, trade associations, chambers of commerce, and economic development entities.

Ronnie was a charter member and former chair of the Exempt Organization section of the Dallas Key District Employee Plans and Exempt Organization Council. He remains a member of the Advisory Board of Community Foundation of Texas, a former member of the Board of Directors of Charitable Accord, past Chairman of the Board of Trustees of the Christian Community Action Foundation, and a member of the governing boards of other charitable entities in Plano, Texas, and Washington, D.C. For many years, Ronnie was a contributing author to the 990 Deskbook published by Practitioners Publishing Company of Fort Worth. He was the founder of the Tax-Exempt Advisory News Service (TExANS) and a charter member of the faculty of the American Institute of Philanthropic Studies at California State University, Long Beach.

All of the personnel who work with Ronnie are actively involved in multiple charitable organizations in their communities.

©2008 Ronnie C. McClure, PhD, CPA