Nonprofits and religious organizations

Accounting for Chicago Nonprofits and Religious Organizations

Form 990, restricted funds, board reporting

Get a fixed price (872) 279-0440

What this business files

Form numbers and dates. A deadline landing on a weekend moves to the following Monday.

Form 990, 990-EZ or 990-NFederal annual return, with the version set by your gross receipts15th day of the 5th month after year end
Form AG-990-ILIllinois Attorney General charitable organization annual reportSix months after year end
Form 990-TReturn for unrelated business income, such as rent from a debt-financed propertyWith the annual filing, when income applies
Sales tax exemption renewalIllinois exemption identification number, renewed with the Department of RevenueEvery five years

Where owners lose money

We watch for these on every file in this trade.

A late Form 990 three years running revokes exempt status automatically, and reinstatement costs a new application and a fee.
Restricted donations spent on general operations are a governance problem before they are an accounting problem, and only fund accounting makes the difference visible.
Paid staff at a religious organization still need payroll, and a housing allowance for clergy has to be designated by the board in advance rather than assigned afterwards.
Form 990 is a public document. Donors, grant makers and journalists read it, so a sloppy return is a fundraising problem.

Services this trade uses

One fixed monthly fee, agreed before the first month. Catch-up on prior periods is quoted once.

Nonprofit or masjid

Common questions

Which Form 990 does our organization file?

Gross receipts decide. The smallest organizations file the 990-N electronic notice, mid-sized ones file the 990-EZ, and larger ones file the full 990. Private foundations file the 990-PF regardless of size. We check the threshold each year rather than assuming last year still applies.

We have never filed. Can we fix it?

If exempt status has been revoked for three missed years, reinstatement runs through a new application, and the IRS allows retroactive reinstatement when the filings are brought current and reasonable cause is shown. Start now rather than at the next deadline.

Does the masjid need to run payroll for the imam?

Yes, for compensation paid to staff. Clergy have specific treatment, including a housing allowance the board designates in advance and a self-employment tax position separate from ordinary employees. Getting the designation on the minutes before payment is what makes it work.

Do you produce reports for a board with no accountant on it?

Yes. The monthly packet is a statement of activities against budget, a statement of financial position, and a fund summary, all on one page each. A treasurer with no accounting background is the intended reader.