Nonprofit entities are organized for a wide array of purposes. In general, they will be formed by groups with similar interests to raise and manage assets towards performing activities which achieve their common goals. They are set apart from for-profit entities by their emphasis on support of activities benefiting the group’s needs rather than the organizers’ personal gains. Business trade associations, recreational or social clubs and sports leagues are familiar examples of such common causes.
Certain causes are deemed to benefit the general public and are afforded special nonprofit status by our governing bodies. They must apply to be granted the special status of a “Charitable Organization.” Broad public support is promoted for such causes by providing legislated incentives in the form of tax deductions for funds donated to these entities. Such status also entails a higher level of scrutiny and accountability as well.
Contrary to popular misconceptions, nonprofits can and do retain net revenues and may accumulate significant net assets in order to provide the capital and stability needed to support their ongoing activities. While they typically are exempt from taxation, nonprofit management and their advisors must be keenly aware of activities which may not be tax exempt or which may jeopardize the exempt status of their organization. Accounting, financial reporting, government agency reporting and regulatory concerns of nonprofits differ greatly from those of for-profit industries.
Professionals servicing nonprofit entities must have the training, experience and above all, sensitivity to the unique requirements of the non-profit community in order to assure their client’s are complying and representing their activities to the governing agencies and their supporting public accurately. Leaf, Miele, Manganelli, Fortunato & Engel, LLC has a long history of serving the nonprofit community over a wide variety of needs and budgets. Our nonprofit specialists provide high quality consulting, accounting, auditing and compliance reporting services at affordable rates to ensure our clients can maximize their focus and budget to the success of their missions.