Texas Nonprofit Annual Maintenance Attorney
Starting a nonprofit organization is only the first step in keeping it running. Annually, you must demonstrate that it is still focused on its mission, and it is not illegally making money.
At Perliski Law Group, we bring over 30 years of legal experience to the table when helping nonprofit organizations. We can work toward maintaining your status and achieving your noble goals. Meeting with you regularly, consulting you, and guiding you, we can assist in keeping your mission sound and your legal status clear.
For annual compliance & maintenance assistance in Dallas - Fort Worth, call the nonprofit attorneys at Perliski Law Group today at (214) 865-7542.
IRS form 990
Each year, you must submit your taxes to the IRS. Form 990 categorizes your group’s assets and gross income. For smaller organizations, those with $50,000 or less in assets, you will use the 990-N. Larger groups, those with a gross of $200,00 or more and/or assets of $500,000 or more, you will use the standard 990.
When initially filing, you were asked to detail the purpose of your business. In subsequent years, you must show that you remain true to this mission statement. You must include your expenses, revenue, property, liabilities, and so on. Allow Perliski Law Group to overlook your last year. We can help you organize your paperwork, showing the government that you remain legitimate, focused on the greater good.
Beyond money and assets, you must explain how the organization operates. The way you govern your company matters. The IRS wants the names of your upper management, including directors, officers, and employees with large salaries. If the government believes that your employees are overly compensated, it can accuse you of making a profit. Our Firm can help work with you throughout the fiscal year, keeping your books balanced and ensuring that your business’s money goes to the right place.
As with any tax filing, paperwork piles up and becomes complicated. You will be asked to attach numerous documents, including reports of donations you bring in, money that goes out, and much more. Any small mistake can slow your ability to operate freely in the next year. We can help make sure you’ve included all necessary files, keeping you organized and moving forward.
Section 501 (c)(3)
When filing your annual taxes, pay special attention to Section 501 (c)(3). Section 501(c)(3) is the portion of the US Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations. The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. If your nonprofit falls out of this purview, you should not attempt to file under this section.
With any nonprofit, you must demonstrate that your business operates solely in service of its mission. You cannot stray from your initial purpose, and any new services you provide must be added to your mission. For example, if you help support disease research and decide to also help the homeless, you could be disqualified for withholding that information. If you need help incorporating new aspects into your organization, allow Perliski Law Group to help keep your exemption valid.
The IRS will scrutinize the money that comes into your corporation and how it is used. Groups that qualify for Section 501 (c)(3) may pay their employees a fair salary based on market values, but they cannot give bonuses for performance. They cannot support private interests within or outside of the nonprofit. Income may originate from places beyond donations, but it is strictly limited. For example, it cannot come from unrelated businesses, and merchandising is also limited. All Section 501 (c)(3) earnings must be used for the advancement of the organization’s cause. In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status. Supporting political candidates running for office is expressly prohibited.
At Perliski Law Group, we understand the complexities of nonprofit income. We can help guide you, keeping you from making mistakes as you bring in money. If your good faith actions are misconstrued by the IRS, we can help represent you, explaining how you were operating within the bounds of legal restrictions.
Share Your Vision with UsWe have over 30 years of experience in nonprofit formation and are here to help you achieve your vision.
We Offer Flat Fee ServicesOur flat fees ensure that our services remain accessible to churches, charities and other nonprofits.
We Provide Ongoing SupportOnce your nonprofit filing is complete, our job doesn't end. Our nonprofit formation services include 12 months of support and training for the board of directors to ensure you are fully prepared.
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We Are Committed to Your Success
Our attorneys can attend your meetings and review your minutes. We can overlook board resolutions and the management of your business. We can help you with your finances, helping you keep salaries and general maintenance appropriate without going over the legal limit. Our goal is to keep your nonprofit compliant with government regulations, allowing you to do the important work your group intends.
For continued help with your nonprofit in Dallas, Fort Worth, Austin, and Houston, contact our firm online, or call us at (214) 865-7542.
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