Yours for the Picking: Nonprofit Tips

Keeping connected to federal and state nonprofit rules and regulations can be a challenge. This blog will offer tips for you to pick from to assist with that process from time to time. 

If your department or association is already 501 (c) (X) nonprofit organization, did you know you are required to provide a tax receipt for any donation of $250 or more? It's a good idea to provide the tax receipt to anyone making a contribution. This can be done in as simple a format as a postcard mailed or given in person to the donor. The wording on your postcard might read something like this:

Thank you for your contribution of $X on DATE. ORGANIZATION NAME (exactly as listed with the IRS) is a 501 (c) (X) nonprofit organization. No goods or services were provided in exchange for this donation. 

Tax receipts should not take the place of proper donor acknowledgment and cultivation. 

Whether you're currently a IRS-approved 501 nonprofit or considering becoming one, IRS Publication 557 is a good reference document to have on hand.  

If you're an Iowa-based nonprofit who is not currently a 501 (c) (X) organization, it is recommended that you read a summary of the Revised Uniform Unincorporated Nonprofit Association act that went into law in Iowa on July 1, 2010. That summary may be found here on pages 1 and 4 of the Summer 2010 newsletter from the Iowa Nonprofit Resource Center.

FlashPoint offers project-based fees to complete your application for IRS tax-exempt status. Contact us today for more details, or any questions on the information listed above.