Hey everyone! With year-end fast approaching, it’s time to prepare for 1099-NEC filings. Nonprofits often work with independent contractors, and even though you’re tax-exempt, you’re still required to report payments to these vendors! Here’s what you need to know: 1. What to Report: - File Form 1099-NEC if you’ve paid $600 or more to any non-employee contractor, freelancer, or service provider in 2023. - Typical services covered: guest speakers, consultants, and any freelance services used for your nonprofit’s programs or admin work. 2. Gather Your W-9s: - Before you file, make sure you have a completed Form W-9 from each contractor. This ensures you have their Taxpayer Identification Number (TIN) and current address for accurate reporting. 3. File by January 31, 2024: - The IRS filing deadline for Form 1099-NEC is January 31, 2024—this applies to both filing with the IRS and providing copies to recipients. - E-filing makes the process quicker, and many e-file providers can send recipient copies for you. 4. Penalties for Late Filing: - Failing to file or filing late can lead to penalties, starting at $50 per 1099 and increasing with further delays. Quick Tip: Avoid common mistakes by double-checking each contractor’s information, including TIN and address. Accurate 1099s are essential to keeping your nonprofit in good standing and avoiding IRS headaches. If you need help with 1099 filings or have questions about reporting requirements, feel free to ask here. Let’s keep our nonprofit operations running smoothly! 😊

More background information to support today's email newsletter (https://46989368.hs-sites.com/non-profit-money-minute-when-filing-on-time-is-actually-filing-late?ecid=&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8uh0ES80JC3sV9cjCy3cIqxOogwpepThlopu3_SM1IBbyAa_O_KbVOjOfpa-oKEUblHWdl): While the IRS provides extended deadlines for filing Form 990, nonprofits seeking grant funding should prioritize early filing to ensure their tax-exempt status is updated in Publication 78, a critical resource for funders. Key Ideas and Facts: 1. Publication 78 Delay: The IRS typically takes 3-5 months to update Publication 78 after receiving a Form 990. Filing close to the extended deadline (November 15) can result in delayed visibility until the next year. 2. "Waiting until the November deadline can delay your visibility in Publication 78 until next year—potentially putting grant eligibility at risk." 3. Funder Reliance on Publication 78: Many grantmakers rely on Publication 78 to verify an organization's tax-exempt status before awarding funds. An outdated status jeopardizes grant eligibility. 4. "Funders rely on the IRS's Publication 78 to verify your tax-exempt status..." 5. Benefits of Early Filing: Filing Form 990 early ensures visibility and eligibility for funding opportunities throughout the year. 6. "Staying ahead of this timeline can keep you visible and competitive in grant cycles" 7. Proactive Communication: If there are delays in Publication 78 updates, nonprofits should proactively communicate with funders and confirm their active tax-exempt status using their determination letter. 8. Impact on Reputation: Some funders may perceive delayed filings negatively, impacting an organization's reputation for transparency and efficiency. 9. "Some funders view delayed filings as a lack of transparency, which can impact your organization’s reputation."

With more non-profits than ever entering the scene, competition is rising. To thrive, existing non-profits must focus on what sets them apart. Financial transparency, robust compliance, and clear donor communication are essential to maintaining a strong reputation and fostering trust. In this post, we share insights on practical strategies to stay competitive, like leveraging your organization’s experience, building stronger donor relationships, and keeping accurate financial records. 🎧 Tune in to our latest podcast episode to learn these essential tips for navigating an increasingly crowded sector! #NonProfitSector #FinancialTransparency #DonorTrust #NonProfitStrategies #StandOut #Compliance #NonProfit Article - https://smithcpasassociates.com/the-overcrowded-sector/

As economic pressures rise and competition for funding intensifies, non-profits face unique challenges in staying financially sound. With a shrinking pool of qualified accountants, prioritizing financial transparency and compliance is more crucial than ever. Increased audits and scrutiny from donors and regulators mean that accuracy and expertise are essential to avoid costly errors and ensure long-term stability. In this post, we share insights on the role of experienced non-profit accounting specialists in helping organizations thrive amid economic challenges. 🎧 Listen to our latest podcast episode for expert advice on navigating these turbulent times! #NonProfitFinance #EconomicChallenges #DonorTrust #FinancialTransparency #Compliance #NonProfit Article - https://smithcpasassociates.com/navigating-economic-pressures-of-your-non-profit/

In the wake of Hurricanes Helene and Milton, scams posing as disaster-relief charities are on the rise. The IRS recently warned about fake organizations targeting generous donors. Now’s the time to help your supporters give with confidence, keeping both them and your nonprofit’s reputation safe. Here’s How to Protect Your Donors (and Your Organization) from Scammers: 1. Communicate Early & Often Make sure your supporters know the correct ways to donate. Direct them to your official website or verified payment portals. This can be as simple as a reminder in an email or social media post. 2. Guide Them to Verification Encourage donors to check your organization’s tax-exempt status using the IRS’s Tax-Exempt Organization Search (TEOS) tool. Adding this link to your communications is a small step that offers big reassurance. 3. Warn Against Unusual Payment Requests Let donors know you’ll never ask for donations via gift cards, wire transfers, or cash. Encourage them to double-check with you if they see anything suspicious. 4. Remind Donors About Privacy Tell donors you don’t need sensitive information, like Social Security numbers, for donations. Make sure to link directly to secure donation pages for peace of mind. Protecting Your Mission, Protecting Your Donors By staying proactive, you’re not only helping donors avoid scams, but also reinforcing their trust in your organization’s mission. Let’s keep their generosity safe—and your reputation strong!