Introduction
This five-day course provides an in-depth understanding of tax issues relevant to non-profit organizations, covering tax-exempt status, Unrelated Business Income Tax (UBIT), charitable contributions, and compliance requirements. Participants will learn strategies for maintaining tax-exempt status, optimizing tax efficiency, and ensuring regulatory compliance in non-profit settings.

Objectives

• To introduce the tax requirements and benefits of tax-exempt status for non-profits.
• To provide skills in managing Unrelated Business Income (UBI) and calculating UBIT.
• To explore tax compliance and reporting requirements, including Form 990.
• To familiarize participants with rules for charitable donations and grants.
• To examine case studies on tax compliance and management in non-profits.

Who Should Attend?
This course is ideal for:

• Non-profit organization managers, board members, and finance officers.
• Accountants, tax advisors, and consultants serving non-profits.
• Legal and compliance officers in non-profit organizations.
• Donor relations and fundraising professionals.
• Students and recent graduates interested in non-profit management and finance.

Day 1: Fundamentals of Non-Profit Taxation and Exempt Status

• Introduction to Tax-Exempt Status and Requirements
  Overview of 501(c)(3) and other designations for non-profit organizations.
  • Eligibility requirements for tax-exempt status.
  • Benefits and limitations of maintaining tax-exempt status.
• Maintaining Tax-Exempt Status
  Understanding operational requirements, including public support tests, and limitations on activities.
  • Restrictions on lobbying and political activities.
  • Importance of complying with IRS rules to avoid revocation.
• Applying for and Maintaining IRS Recognition
  Step-by-step process for obtaining and renewing tax-exempt status with the IRS.
  • Key considerations for non-profit applications and renewals.
• Types of Exempt Income for Non-Profits
  Exploring what income is exempt, including donations, grants, program service revenue, and investment income.
  • Proper documentation for exempt income.
• Case Study
  Reviewing a non-profit’s application for tax-exempt status, identifying potential compliance issues.

Day 2: Unrelated Business Income Tax (UBIT)

• Understanding Unrelated Business Income (UBI)
  Definition, examples, and exclusions for UBI in non-profits.
  • Identifying income-generating activities that may be subject to UBIT.
• Calculating UBIT for Non-Profit Organizations
  How to determine taxable income from unrelated business activities.
  • Deductible expenses related to UBI.
• Strategies to Minimize UBIT Exposure
  Structuring activities to minimize UBIT or qualify for exemptions.
  • Managing UBI through joint ventures, partnerships, and separate entities.
• Impact of UBIT on Non-Profit Finances
  How UBIT affects the financial health and tax obligations of non-profits.
  • Balancing mission-driven and income-generating activities.
• Workshop
  Assessing UBI and calculating UBIT for a hypothetical non-profit organization with various revenue streams.

Day 3: Charitable Contributions, Grants, and Reporting Requirements

• Tax Deductibility of Charitable Contributions
  Rules for donors and non-profits regarding charitable contributions and donor acknowledgment.
  • Reporting requirements for contributions.
• Grants and Contributions Compliance
  Ensuring proper use and reporting of grants.
  • How to comply with federal and state regulations for charitable giving.
• Form 990 and Other Reporting Requirements
  Preparing and filing Form 990 and its importance for transparency and compliance.
  • Additional reporting requirements for non-profits.
• Managing Restricted vs. Unrestricted Funds
  Ensuring proper handling and reporting of restricted and unrestricted funds from donors.
  • Complying with donor intent and IRS guidelines.
• Hands-on Exercise
  Preparing a Form 990 for a hypothetical non-profit, addressing contributions, grants, and UBI.

Day 4: Tax Compliance and Recordkeeping for Non-Profits

• Maintaining Adequate Records for Tax Compliance
  Best practices for record retention, documentation, and data management.
  • What records to keep and for how long.
• Compliance with State and Federal Filing Requirements
  Navigating the maze of federal and state non-profit tax filing obligations.
  • Key state-specific requirements for non-profits.
• Non-Profit Audit Readiness
  Preparing for IRS or other regulatory audits.
  • How to conduct internal audits and ensure compliance.
• Managing Volunteer and Employee Tax Issues
  Understanding payroll taxes, employee benefits, and volunteer reimbursements.
  • Compliance with tax rules for workers.
• Group Exercise
  Creating a compliance checklist for a non-profit organization, covering tax filings, recordkeeping, and reporting requirements.

Day 5: Case Studies, Strategic Planning, and Future Trends in Non-Profit Tax

• Case Studies in Non-Profit Tax Strategy and Compliance
  Reviewing successful tax management strategies for non-profits.
  • Lessons learned from real-world examples.
• Strategic Tax Planning for Non-Profits
  Optimizing revenue sources, donor contributions, and tax efficiency.
  • Effective tax planning for long-term sustainability.
• Future Trends in Non-Profit Tax Compliance
  The impact of digitalization, evolving tax laws, and increasing transparency.
  • What non-profits can expect from future tax regulations.
• Ethical Considerations in Non-Profit Tax Management
  Balancing tax efficiency with ethical compliance and transparency.
  • Avoiding common pitfalls and ethical issues in non-profit tax planning.
• Final Project Presentation
  Participants present a tax strategy for a hypothetical non-profit, covering UBI, contributions, reporting, and compliance.