A lot of what a certified accountant does is perfect for small business owners who need help getting their finances in order. Yet even though this is the most popular form of CPA services, and aspect of clients that a CPA might be dealing with are non-profit organizations. Brooksville residents might think that a non-profit organization does not need a CPA because there is no money involved, but non-profit organizations still have to file for taxes and document everything for tax exemption status. But what kinds of organizations utilize the services of a Professional accountant?

Charitable Organizations

The most common type of non-profit organization that a CPA may do taxes for are charitable organizations. There are nearly one million registered organizations in the United States that all classify as non-profit organizations. Most charities typically get their funding through donations or government grants, but if they are documented as a charitable organization, then they have a tax exempt. Just because an organization does not get taxed does not mean that they are exempt from providing the information pertaining to their funds. This is why a professional CPA still offers services to charitable organizations.

Foundations

Foundations are the second most popular type of non-profit organization and often times are sometimes associated with different charitable organizations. Most of the time a foundation is concerned with funding other non-profits or sponsoring specific events to raise awareness of a cause or to offer a platform to educate and inform people. In order for a foundation to be considered as a non-profit they must donate a specific portion of their income on an annual basis. Another strict rule that foundations have to adhere to is that they cannot get involved in any sort of political activity, such as a political endorsement for a presidential candidate.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*