Nonprofit Organization Consulting Services

Nonprofit organization leadership and boards of directors are continuously challenged to keep up with new tax laws, reporting requirements, and practice standards.

Our professionals provide various administration and governance resources to help you anticipate and prepare for new developments in nonprofit management.

Learn more about our Board Building Training Series.

Nonprofits who receive financial assistance from federal, state, or local government may be subject to audit requirements. Additionally, many states have charitable registration requirements that include the submission of an annual report based on the organization's revenue.

In Wisconsin, if a charitable organization receives contributions in excess of $500,000 during its fiscal year, an audit by an independent certified public accountant is required. If the annual contributions are over $200,000 but less than $500,000 a financial statement review, rather than an audit, is required.

SVA will help you determine your organization’s federal, state, and local audit requirements and guide you through the process.

SVA can help you with your reporting requirements to maintain your tax-exempt status. Each form has specific requirements on the information needed to verify and document your organization’s tax-exempt status.

Maintaining your tax-exempt status is vital and SVA will guide you through completion and submission of the correct form.

• Form 1023 (or Form 1023-EZ) is used by an organization seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
• Form 1024 (or Form 1024-EZ) is used by an organization seeking exemption under Section 501(a) of the Internal Revenue Code.

BIZ TIP: Filing Application for Tax Exemption - Form 1023 or 1023EZ

Excluding specific exceptions, federal law requires employee benefit plans with 100 or more participants (ERISA defined) include audited financial statements with the Form 5500 filing. Smaller plans may also require an audit if the plan does not meet certain conditions exempting it from the audit requirement.

SVA's auditors understand the complexities of employee benefit plans and can focus on the prominent issues, providing valuable guidance to you as the plan sponsor.

BIZ TIP: Changes Are Coming to Your Employee Benefit Plan Audit

The board of directors is responsible for hiring and establishing the compensation (salary and benefits) of the executive director/CEO by identifying reasonable compensation attractive enough to retain the best possible talent to lead the organization.

Nonprofits filing IRS Form 990 must describe the process they use to approve executive compensation as part of the nonprofit's annual return responses. The process starts with the board arranging for an independent body to review comparable salary and benefits data of organizations with relative size, geography, budget, and mission focus.

SVA can help with the process of determining and documenting your organization's executive compensation.

BIZ TIP: The Pros and Cons of Compensating Nonprofit Board Members

Governments at all levels – local, state, and federal – that hire nonprofits to deliver services are required to reimburse nonprofits for the reasonable indirect costs (sometimes called "overhead" or "administrative" costs) they incur on behalf of governments when federal dollars are part of the funding stream.

In addition, the OMB Uniform Guidance streamlines and clarifies cost allocation and other rules related to government grants and contracts, removing some areas of confusion and inconsistency while treating more of a nonprofit's expenses as direct (reimbursable) costs.

SVA will help you understand your obligations with the OMB Uniform Guidance.

BIZ TIP: Single Audit Requirements for Nonprofit Organizations That Receive Federal Funds

Tax-exempt organizations must file some version of Form 990 with the IRS each year to meet federal regulations. Private foundations must file Form 990-PF which includes disclosures of the foundation's assets, financial activities, trustees, officers, and a complete list of grants awarded during the year. 

SVA will help you complete and file the required forms for your organization. 

BIZ TIP: Form 990: Common Problem Areas for Nonprofits

Handling all your payroll, tax preparation, and bookkeeping needs in-house requires staff who are experienced in these functions, as well as the continual updating of your accounting software. These are time-consuming tasks which can be easily outsourced to an experienced provider.

You can outsource as much or as little of the work and ensure there are adequate internal controls to avoid any risk of having the same people perform multiple duties. 

Learn more at our client accounting services page.