To join in on this discussion, you must first log in.

Discussion:Non profits how much should I charge? pls respond!!

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Business Growth Community --> Non profits how much should I charge? pls respond!!


Mcharg5 (talk|edits) said:

6 February 2007
Just got a call wants to know how much we charge for 990 (non profits) obviously my first time? Any suggestions?????

Kevinh5 (talk|edits) said:

6 February 2007
I refuse to do them because I don't know anything about them. If you want to do them, you need to invest in some education first.

Mcharg5 (talk|edits) said:

7 February 2007
Just starting own business and have bills to pay its either attempt a 990 or tell customer to take business elsewhere.

Kevinh5 (talk|edits) said:

7 February 2007
I would advise you to start out with areas close to what you already know - 1040s. As you learn more, take classes on other areas (corps, partnerships, llcs, estates, trusts, gifts, etc.) I would never want to learn everything about a tax return type during tax season in order to do 1 return.

Mcharg5 (talk|edits) said:

7 February 2007
Appreciate the input Kevin....

JR1 (talk|edits) said:

February 7, 2007
I do them, reluctantly. 500 minimum, and that's only out of the goodness of my heart. Non profits, by definition, rarely have much money. The 990 is the most bizarre form you'll ever encounter. A 501c3 adds more complexity. The software doesn't help much because it does NOT carry totals thru the various pages and tell you when something's out of balance. But I learned them on my own, you can too. But you'll spend a lot of time on it, your hourly rate falls rapidly.

Mauro (talk|edits) said:

7 February 2007
It dependes also where you practice. I agree that you need enough traning on the subject but it dependes on the complexity of the return. Some 990 are very easy to do some require more time and experience on doing them. If you can pass on that's fine if not try and get yourself the PPC for 990 and you should be fine.

Mcharg5 (talk|edits) said:

7 February 2007
The nonprof just started 6 mos ago and is still waiting on non prof i.d.# so it seems that it won't be to extensive of a return. Anything I need to keep an eye on in the event I decide to attempt the non prof return?

Mauro (talk|edits) said:

7 February 2007
I suggest you to take a look at Irs Issue Number: Issue 2007-3 refering to New Internet-Based Workshop for Exempt Organizations and Changes to the 2006 Form 990.

Mcharg5 (talk|edits) said:

7 February 2007
Thank you all for the input this taxalmanac site is worth its weight in gold!!!!

Lori nj (talk|edits) said:

7 February 2007
Mcharg5,

You fee should also take into account if you have to prepare the books to create a trial balance. Since you mention it is a new non profit I assume there was not an audit, where you can just work from the audited financials. If the financials are not audited you will need a prepare a final trial balance. Keep in mine many nonprofits do not have a bookkeeper on staff and so the accounting is either not done or a mess, also if gross receipts are less than $100,000 a 990EZ should suffice. The most important part of preparing a 990 is making sure expenses & income are broken out in to their functional classification not natural classification.

I know so many accountants who attempt to prepare 990 and do not break out expenses in program services, management & general, fundraising.

Hope this helps, in the past I worked in public accounting, auditing non-profits and preparing 990's.

Lori_nj

Uncle Sam (talk|edits) said:

7 February 2007
You also mus check to see what requirements there are of your state's office of the Attorney General.

Even though there may not be a Federal requirement to file 990 for IRS, states MAY require a filing regardless. I do some 990s and have experience with the requirements - I'm from New York.

Uncle Sam (talk|edits) said:

7 February 2007
I overlooked and didn't read Mcharg5's last post of 2/07 -

What ID # are you talking about? If it's the Employer ID # - you can get that in minutes over the internet. If it's the IRS approval to be a 501(c)(3) organization where you can advertise contributions to be tax deductible - you need to complete Form 1023. That's tricky. I had an experience with that last year -and FINALLY got it approved. After you get the IRS to approve it-whenever that is - you've got a 5 year trial period before IRS looks at the organization to file a special form to determine if your a private foundation - in which instead of filing a 990, you file a 990-PF. One thing more I might add - Once you get the IRS to accept the organization as tax exempt - you might wish to apply to the state tax department to get an exemption for sales and use tax purposes - so on purchases the organization makes - you don't have to pay state sales tax. The state, upon application would give you a tax exempt number - IT IS NOT the same number as the Federal Employer ID number.

JR1 (talk|edits) said:

February 7, 2007
Good point from Uncle Sam. The state often has filing requirements that have nothing to do with a 990. In IL, there is no 990 filing, unless you have UBIT, but there's an attorney general office required filing that I didn't know about for YEARS!

Natalie (talk|edits) said:

February 8, 2007
Mcharg, I caution you before you get into this area, particularly since you are dealing with a new organization. The client will be looking to you for advice on compliance issues (and there are many for nonprofits). Are you aware of the lobbying rules? What is required regarding quid pro quo contributions? How do they handle planned giving (as opposed to regular contributions)? Do you know about Intermediate Sanctions? How about unrelated business income and the tax associated with it? How should they track large donations? Who is considered a disqualified person and why is it important to know who they are?


Depending on the type of nonprofit, i.e., the code section under which it is exempt, some of these questions may be more or less important.

Mcharg5 (talk|edits) said:

8 February 2007
Valuable info all I am extremely grateful for it. Its kind of one of those things as a challenge to myself/first year in business I would always think "What if" in the event I didn't attempt the 990/990EZ. A heartfelt thank you to all of you for your input which helps me make informed decisions!!!!! Anymore input is greatly appreciated!!!!!

Wkstaxprep (talk|edits) said:

13 February 2007
Mcharg, i appreciate questions about fees since very few in the industry seem willing to discuss the topic.

I am also going to do my first 990 in a few weeks, fairly straightforward one if there;s such a thing :) my upfront estimated fee i gave to the client was $1,000.

Here is the best advice i can give you from my own experience, is that even if you don't make too much money on this return, i beleive doing the research and learning how to do a 990 will only benefit you down the raod. Just think, now when you discuss your sevices and someone asks "do you do not for profits?" you will be able to give them a confident reply, and with proper marketing you can hopefully pick up more 990's in the future.

last year i was reluctant to do a 706 estate return but in the end was very happy i tackled the project, i learned invalueable knowledge and now when someone unfortunately passes away and their heirs look for a tax prof'l to do the estate taxes , i can offer my services.

good luck i hope i helped in some little way

Will

Natalie (talk|edits) said:

February 13, 2007
Wow, $1,000 for a first-time prep of a 990! I charge $650 - $750, and I have experience in the area. I provide other services to the nonprofits, so there's a little bit of a discount in there. For $1,000, I would think the nonprofit would be expecting a lot of knowledge.

I would caution you as well, Will. There are really a lot of compliance issues out there for nonprofits. I think it's great that you want to try new things, but maybe you should consider having someone experienced review the return after it's done and have that person mentor you.

JR1 (talk|edits) said:

February 13, 2007
But Natalie, you get to live in Hawaii while some of us get to shovel snow. . .no beach time for me tonight to compensate.

Deback (talk|edits) said:

February 13, 2007
The blizzard's coming my way from Chicago. Should be here between 4 pm and midnight, from what people tell me. I would love to get some cancellation calls about right now. The last guy (who got here 10 min early, of course) started telling me that I needed to put his T/E interest on the state, so I told him he didn't need to tell me how to do his return and that I'd do his return later and call him when it's done. I said it in a joking way, but I can feel my tolerance going down. Now I'm gulping down a bologna sandwich and chips, hoping my next client won't get here 10 min early.

Wkstaxprep (talk|edits) said:

13 February 2007
Natalie,

Thanks for the feedback, i appreciate it. (i did fail to mention that i did some 990's in the past as an employee for a cpa firm). this will be my first since i'm on my own.

you make a good point, and i will take your advice by improving my knowledge of 990's and having a more experienced person review the return after its complete.

thanks again

Will

JR1 (talk|edits) said:

February 13, 2007
Nothing like having someone else pay for your education, right?

Www.cpa1.biz (talk|edits) said:

13 February 2007
Good one JR,

However, talking about education, what are your reccomendations on companies that provide it at a reasonable price??

I def will be doing some major CPE stuff after tax season.

JR1 (talk|edits) said:

February 13, 2007
Well, personally, I prefer Bob Jennings, www.taxspeaker.com who's an ex-GearUp guy over GearUp now. The quality of some of their speakers has dropped a bit since the Thomson takeover. But I wouldn't hesistate to sign up for one if Jennings wasn't nearby at a time/date I could hit. For QB, only Sleeter Group. Those are my faves.

Www.cpa1.biz (talk|edits) said:

13 February 2007
thank you thank you thank you....Little Caesers...

Natalie (talk|edits) said:

February 13, 2007
JR, you are correct about the snow. However, there is a price to living in Hawaii. The median price of a home on Oahu is now well over $600,000. In the area I live, it now almost $900,000!! And, no these are not mansions here. It's mainly the land and outside investors that are driving up the prices, in my opinion.

As far as CPE goes, I get more out of the live seminars, but I take all kinds -- webcasts, brown bag lunches sponsored by the state chapter of CPAs (free), Passonline (free), PPC, etc.

To join in on this discussion, you must first log in.
Personal tools