3 Non-Profit Tax Tips
Running a non-profit organization is a multi-faceted job. Not only are you following through with your mission, but you are also running a business. And when you are running a non-profit, there are a vast array of tax rules that you need to follow. Here are three tax tips to help you:
No one wants to go through an audit. But if you were ever to find yourself on the receiving end, it can help to have documentation to back up all of your donations and expenses. For each contribution, it is important to note when the donation was received, how much was collected and acknowledgment of your non-profit status. You will also want to denote if a gift was obtained for the amount or if it was only a donation. Regular documentation shows proper accounting and bookkeeping practices and these practices are what will help you with your yearly taxes and if you should ever be audited.
Help your volunteers
Volunteers help your organization in huge ways. But if your volunteers are unfamiliar with what they can claim on their taxes, it can end up hurting you in the long run. If your volunteers ever need to use their vehicles while working for your organization, they can claim that! Mileage, gas and oil changes all used while serving can be claimed. If they need to buy a uniform, use their cell phone, or purchase supplies for the organization, this can also be declared on their tax forms.
One of the best things that you can do to help yourself on tax forms is to ask a professional. Taxes and tax law is highly detailed and changes regularly. At Prospect Tax we would love to help ensure that you are filing your taxes correctly and also receiving any benefits that you are due. Please feel free to call us with any questions that you may have.