Tax Exempt Entities
Maintaining your tax-exempt status is important. Our solutions allow your organization to focus on its mission, while we provide expertise and guidance for the unique challenges you face.
Tax Exempt Entities
Although not-for-profits encounter similar challenges as businesses, Baker Tilly recognizes these organizations have unique compliance needs that require specialized knowledge of tax laws and accounting standards.
Our commitment
At Baker Tilly, we recognize the significance of attaining and preserving a tax-exempt status for not-for-profit organizations. We understand obtaining this status is not only a goal, but a necessary factor for organizational success.
Our team’s extensive tax expertise allows us to navigate the complexities of tax laws. We are dedicated to staying up-to-date with the latest regulations and trends to provide effective and proactive guidance to our clients.
Baker Tilly is ready to assist not-for-profit organizations in the following areas of taxation:
- Obtain and maintain tax-exempt status
- Comply with IRS requirements, including the filing of Forms 990, 990-T and 990-PF
- Assist with acquisitions and joint ventures, and perform due diligence
- Conduct IRS risk assessments, FIN 48 analyses and unrelated business income analyses
- Provide representation before tax authorities
- Foster funding through a mastery of tax credits and other incentives, such as low-income tax credits and the New Markets Tax Credits (NMTC) program
Recent insights
2023 not-for-profit and higher education accounting and tax update
Overview of key accounting and tax issues for NFP organizations, colleges and universities.
Impact of Section 174 capitalization of R&D expenditures on UBI for NFPs
While research and development activities and expenditures may seem common concepts for corporations who are for-profit entities, it’s not an exclusive game. Many not-for-profit organizations (NFPs) are also investing time and money to develop new, or improve upon existing products, processes, software, formulas, inventions or other business components. Internal Revenue Code (IRC) Section 174 historically allowed businesses to either deduct or amortize certain research and development (R&D) costs as an incentive to encourage a business’s effort to increase innovation and development.
Takeaways from the 2023 NFP governance and fiscal workshop
Not-for-profit specialists discuss technical topics relevant to lease accounting, Inflation Reduction Act energy credits, UBI, fraud and internal controls, cryptocurrency and federal funding and single audit. View the on-demand video.
Employee Retention Credits - here come the audits!
Many not-for-profit organizations were able to take advantage of the Employee Retention Credit.
The complexities with unrelated taxable income for NFPs
When a not-for-profit organization has a question about whether a certain type of income is taxable, the most common response is “it depends” as this determination is not always straightforward. Let’s explore this in a little more depth.
Updating reimbursement and expense policies with your remote workforce in mind
The COVID pandemic, coupled with a national labor shortage, has found many not-for-profit (NFP) organizations shifting their employment strategies. In many ways, this has allowed for creative solutions and expanded the potential workforce to allow organizations to find employees to best execute their mission.
Not-for-profit by the numbers
700+ single audits
Baker Tilly performs more than 700 OMB Uniform Guidance single audits, and we are ranked in the top three of firms in the U.S. based on the number of audits.
90+ years
We have been serving tax exempt entities for more than 90 years.
2,000+ organizations
We currently provide tax, audit, accounting and consulting services to more than 2,000 tax exempt organizations.