Not-for-Profit Tax

Focused on Furthering Your Cause

Not-for-profit organizations face a distinct set of compliance challenges. Though they are not subject to income tax, these organizations have filing responsibilities with the Internal Revenue Service and in the state(s) where funds are solicited. In addition, there are traps for the unwary with potential liabilities associated with unrelated business income tax, self-dealing, and maintaining exempt status.

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Thought Leadership

How Citrin Cooperman Can Help

Tax law for not-for-profits and higher education institutions is replete with exemptions, exceptions, and limitations, which can make deciphering the Internal Revenue Code and regulations very challenging. When combined with increasing oversight by federal, state and local governments, donors, grantors, media, and the public, tax compliance an ongoing endeavor. Our not-for-profit tax professionals actively work with organizations’ members or board to consider their goals and plans and have worked with many organizations in this capacity.

OurRelated Services

Formation of a not-for-profit, including:
- Applying for recognition of tax-exempt status
- Assisting with all not-for-profit compliance services, including preparation of Form 990, Form 990-PF, Form 990-T, etc.
- Structuring the operations of new organizations to qualify for tax-exempt status
IRS audits and other tax controversies
Planning and consulting regarding Unrelated Business Income Tax (UBIT)
Planning and consulting regarding potential excess benefit transactions
Private foundation excise taxes (net investment income, annual distribution requirements, self-dealing, jeopardizing investments, excess business holdings, and taxable expenditures)
Employment taxes

Credentials

Case Study for Courier and Logistics Solutions Provider

Issue

Citrin Cooperman engaged with a courier and logistics solution provider to prepare a financial due diligence report on a courier services business that the Company was interested in buying. As work progressed, discussions with the Company unveiled its need for additional services post-transaction. The Company needed a net working capital true-up calculation and a valuation analysis prepared on the opening balance sheet of the acquired firm. Citrin Cooperman brought in a team from our Valuation and Forensic Services Practice and XX Practice to provide a multi service-line solution.

Action

Citrin Cooperman’s personnel provided the following services:

Worked with the target firm and its external CPA to collect data and analyze the business from multiple perspectives.
Presented findings in a concise, yet detailed report and discussed with Company management.
Leveraged due diligence findings in net working capital true-up and presented calculation to both the Company’s and the target firm’s management teams post-transaction for review.
Leveraged due diligence and net working capital true-up findings and prepared opening balance sheet valuation analysis on acquired firm.
Worked with the Company’s auditors to present the opening balance sheet in a manner that provided a seamless integration into the audited financials.

Benefit

Citrin Cooperman assisted the Company through all stages of the transaction, leveraging knowledge and findings from each step of the process. The end result was a thorough, efficient, and timely solution that guided the Company from pre-transaction to post-transaction integration.