Aplos Software » Michele

Form 990 Online Filing Wizard

Michele — Tue, 08 Feb 2011 00:42:21 +0000

When filing returns and forms with the IRS, I appreciate online wizards that attempt to take that which is complex and make it simple. This year will be my first time to file a form 990 for my own non profit. To be honest, I have been dreading this for quite some time and now it’s upon me. Today, I found what I hope to be a life saver for us volunteer fund accounting volunteers. A Form 990 online service! Follow this link to see if you are eligible to use this online wizard. The filing is free for organizations bring in less than $100,000 in gross reciepts and a minimal cost for beyond this amount. Happy filing!

3 Risk Free Online Creative Fundraising Ideas for Nonprofits

Michele — Wed, 02 Feb 2011 14:32:17 +0000

I believe there are better ways to fundraise for your organization than the typical bake sale or car wash. Below are some great fundraising suggestions that may prove to benefit your nonprofit.

3 Risk Free Online Creative Fundraising Ideas for Nonprofits

Posted on March 29, 2010 by Timothy Spell

Everyone is having a hard time making ends meet in this recessions. Implementing low risk and creative fundraising ideas for nonprofits is critical to the success of an organization. Nonprofit CMS has found 3 cool nonprofit fundraising ideas that your nonprofit can start with today.

Coffee With A Cause
CoffeeWithACause.org is a unique fundraising program that has one goal: Help Nonprofit’s Raise Money. Your nonprofit organization can get into the program for no cost. You make money by putting a banner on your website (or include it in your email blasts or other marketing material). Every time one of your supporters purchases coffee through CoffeeWithACause, your nonprofit gets over 10% of the proceeds! Everyone buys coffee anyway, so why not give it a shot?

Network For Good
Have a “donate now” button on your website. Network for Good has weekly free webinars with tips and trickets for boosting your online donation efforts. Their free service (Basic Donate Now) includes recurring donations, online donation tracking and gives donors automated tax receipts. More information can be found at Networkforgood.org.

iGive
iGive is an online fundraising service that returns a commission to your organization when your members or supporters make online shopping purchases through their network of online stores. Not all nonprofits are comfortable working with charity malls. Some NPOs feel that it’s akin to a form of advertising or corporate sponsorship or that it supports consumerism, which may not mix well with your organization’s mission. Your staff and/or board should debate the issue and develop a policy.

So there you have it, 3 online creative fundraising ideas for nonprofits. These online fundraising programs should not the be ‘end all be all’ of your fundraising efforts, but implemented correctly, can send recurring revenue into your organization quickly.

Church Internal Controls

Michele — Wed, 19 Jan 2011 13:27:17 +0000

Tim Goetz, one of the co-founders of Aplos, also happens to be an Executive Pastor of a church. Because of his unique accounting background, coupled with his church experience, to say he understands the demands and order required for church finance is an understatement. Tim writes about the importance of “Church Internal Controls” on his latest blog and internal control assessment. This is a must read for anyone who wants to do some preventive steps for their organization.

IRS Exempt Organizations FY2011 Workplan

Michele — Sun, 09 Jan 2011 23:32:23 +0000

The IRS Exempt Organizations Division 2011 for its Fiscal Year 2011 was released last month. The new year is a good time to review the Division’s priorities and how they might impact your organizations.

(Thanks to the Nonprofit Law Blog for this helpful information.)

The Division will support five overarching IRS focus areas:

Impact of Recent Legislation. The Affordable Care Act (ACA), the Hiring Incentives to Restore Employment (HIRE) Act, theAmerican Recovery and Reinvestment Act (ARRA).
International Focus. The Division’s concern in this area is whether charitable assets of exempt organizations are being diverted internationally for non-charitable purposes.
Medical Residents.
National Research Program Study of Employment Tax Returns. Expect much greater scrutiny and enforcement. The IRS estimates employment tax misreporting constitutes a large part of the tax gapclose to $54 billion per year. Nonprofits should be especially careful about proper classifications of employees and independent contractors, fringe benefits, officer compensation, and employee expense reimbursements.
Non-filer Initiatives. The IRS plans to effectively use enforcement resources to deter non-filers.

The Division’s new and ongoing initiatives include:

Controlling Organizations- The IRC 512(b)(13) Project. The tax treatment of payments between controlled entities and their controlling tax-exempt parent organizations touches on several areas of tax law including unrelated business income, the allocation of income and deductions among taxpayers, and the transfer of property to controlled organizations.
Charitable Spending Initiative. This is a study to learn more about sources and uses of funds in the charitable sector and their relationship to the accomplishment of charitable purposes. Initially, organizations targeted for examination include those with high levels of fundraising expenses, organizations reporting unrelated trade or business activity with relatively low levels of program service expenditures, organizations with high ratios of officer compensation in comparison to program service expenditures, and organizations with low levels of program service expenditures in comparison to total revenue.
Colleges and Universities. The Division will continue to examine their unrelated business income, endowments and executive compensation practices.
Form 990 as a Compliance Tool. The Form 990 is the IRS primary tool to increase transparency and to promote and enforce compliance with Federal tax law. The IRS will use the updated form to identify non-compliant and potentially non-compliant organizations for examination.
Governance. Starting in FY 2010, EO began using a check sheet to capture governance practices and the related internal controls of the organizations being examined. EO will analyze the data over the long term to gain a better understanding of the intersection between governance practices and tax compliance.
Section 501(c)(4), (5) and (6) Organizations. In recent years, IRS examinations have concentrated on section 501(c)(3) organizations. Beginning in FY 2011, the IRS will increase its focus on section 501(c)(4), (5) and (6) organizations, particularly with respect to political activity, inurement and the extent of compliance with the requirements for tax exemption.

The following projects are being wound down and being assimilated into the Division’s general casework (a so-called “project to process” approach):

Combined Annual Wage Reporting. Make sure your employment tax reporting is accurate and complete.
Consumer Credit Counseling Project. Not too many of 501(c)(3) credit counseling organizations left – 41 of 63 of the largest had their tax exemptions revoked in the initial phase; more than half of the remaining are in the process of having their exemptions revoked.
Down Payment Assistance Project. Similarly, 87 of 91 DPA organizations funded solely by homesellers have had, or are in the process of having, their exemptions revoked.
Executive Compensation Compliance Initiative: Loans Project. Over $5.5 million in intermediate sanctions (e.g., for excessive compensation to insiders) were assessed as a result of examinations and 11% of the examinations led to proposed revocations or terminations of the organizations.
Political Activities Compliance Initiative (PACI). This initiative addressed allegations of prohibited political campaign activities by 501(c)(3) organizations. While the EO Division substantiated more than half of the allegations, it closed most of these cases only with warnings. Because some of the violations are becoming increasingly overt (Pulpit Freedom Sunday), at some point, we expect the IRS to start enforcing the electioneering prohibition more vigorously.
Supporting Organizations- The 509(a)(3) Compliance Project. Of 300 supporting organizations examined, 30 were terminated, 72 had their exemptions revoked, and 59 were reclassified as private foundations or other forms of public charities.

You can read the entire FY2011 Workplan and Annual Report here.

[Aplos strives to find information and articles in order to keep you up to date on the latest news and information. Please let us know if you have articles you would like to see here on our blog or have a question about specific fund accounting practices.]

Starting the Year off Right

Michele — Wed, 05 Jan 2011 05:01:11 +0000

New Year’s Resolutions are a common topic of conversation this time of year. In fact, I am willing to bet that most of you have already committed to a specific goal to improve your personal life. Many areas come to mind when I consider what needs improvement in my own life. One of these areas happens to be my organizational skills (or lack there of) within my own nonprofit. I just happen to come across a great article to help myself get organized for 2011. So in nice bullet point fashion, I am on my way and hope you will be too!

Organization: Work Smarter by Helen Antholis at the Performance Advantage Inc blog for a self-assessment that will help you identify and prioritize the areas you should address to improve your productivity.

(Aplos is a fund accounting software that strives to keep your accounting simple.)

Remember to say “Thank You”

Michele — Wed, 22 Dec 2010 15:40:14 +0000

I am a southern girl and manners were a big deal to my mom. She taught me the importance of respecting individuals in positions of authority with my words. There was value placed on responding to questions with “yes ma’am, no ma’am, yes sir, no sir”. And upon being the recipient of a gift whether tangible or intangible, she taught me to follow up with a thank you note. I offer that we have lost this sort of common etiquette somewhere in the efficiency and convenience of texting and email. As a nonprofit or church organization, you better believe your donors would appreciate more. I love the article below as it communicates with passion why thank you’s are important for your organization’s reputation. The article also gives some tips on what content to include in your thank you.

Article by Lisa Sargent

Head of Lisa Sargent Communications, copywriter Lisa Sargent publishes The Loyalty Letter, a free e-mail newsletter for nonprofit and charitable organizations, which is read by subscribers all over the world. Sign up free on her website.

Tax Benefits of Giving

Michele — Fri, 17 Dec 2010 13:41:32 +0000

While we at Aplos believe your donation to a charity should come from a heart of selflessness and generosity, we know that individuals benefit for their benevolence on their tax return as well. Below is an article from Charity Navigator in regards to some of these benefits.

A gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income tax if you itemize deductions.
If the gifts are deductible, the actual cost of the donation is reduced by your tax savings. For example, if you are in the 33% tax bracket, the actual cost of a $100 donation is only $67 ($100 less the $33 tax savings). As your income tax bracket increases, the real cost of your charitable gift decreases, making contributions more attractive for those in higher brackets. The actual cost to a person in the lowest bracket, 15%, for a $100 contribution is $85. For a person in the highest bracket, 35%, the actual cost is only $65. Not only can the wealthy afford to give more, but they receive a larger reward for giving.
A contribution to a qualified charity is deductible in the year in which it is paid. Putting the check in the mail to the charity constitutes payment. A contribution made on a credit card is deductible in the year it is charged to your credit card, even if payment to the credit card company is made in a later year.
Most, but not all, charitable organizations qualify for a charitable contribution deduction.
You can deduct contributions only if they are made to or for the use of a qualified recipient. No charitable contribution deduction is allowed for gifts to certain other kinds of organizations, even if those organizations are exempt from income tax. Contributions to foreign governments, foreign charities, and certain private foundations similarly are not deductible. Below, you can view a list of organizations for which your donations can be deducted. All organizations rated by Charity Navigator qualify for charitable status, and you can deduct your donations, subject to certain limitations.

An organization could lose its charity status if it devotes a substantial part of its activities to formulating propaganda or otherwise trying to influence legislation. However, an organization, other than a church, may qualify as a charity and still perform some of these activities by keeping its political expenditures to an “insubstantial” part of its activities. Furthermore, donations to needy individuals are not deductible.
There are limits to how much you can deduct, but they’re very high.
For most people, the limits on charitable contributions don’t apply. Only if you contribute more than 20% of your adjusted gross income to charity is it necessary to be concerned about donation limits. If the contribution is made to a public charity, the deduction is limited to 50% of your contribution base. For example, if you have an adjusted gross income of $100,000, your deduction limit for that year is $50,000.

The rules on 20% limits and 30% limits are way too complicated to delve into in this space. If you are giving to organizations other than those mentioned above, first consult with your tax adviser to determine whether these other ceilings will apply. If you give an amount in excess of the applicable limitation to charity in one year, the excess is carried over for the next five years.
Rules exist for non-cash donations.
If you contribute property owned for more than one year, the value of the deduction is normally equal to the property’s fair market value. You have an advantage when you contribute appreciated property because you get a deduction for the full fair market value of the property. You are not taxed on any of the appreciation, so, in effect, you receive a deduction for an amount that you never reported as income.

You should clearly contribute, rather than throw out, old clothes, furniture and equipment that you no longer use. However, bear in mind the condition of your donated goods. The IRS only permits deductions for donations of clothing and household items that are in “good condition or better.”

If you bring $1,000 in clothes or furniture to Goodwill or the Salvation Army, make sure that you get a receipt. Never throw such contributions into a bin where no receipt is available. If you are in the 25% bracket, that receipt may be worth $250 in tax savings to you. And remember that the IRS requires a qualified appraisal to be submitted with your tax return if you donate any single clothing or household item that is not in good used condition or better, and for which you deducted more than $500.
Remember to document.
No deduction is allowed for a separate contribution of $250 or more unless you have a written confirmation from the charity. A canceled check alone is not enough. If the contribution is to a religious organization solely for an intangible religious benefit (annual dues, for example) written proof is still required. All other contributions of cash require the charity to estimate the fair market value of any goods or services given to you in exchange for your contribution.

Starting in 2007, the IRS requires written documentation to substantiate deductions for all monetary donations – including cash. In case of an audit, you must have a canceled check, credit card statement or a written acknowledgement from the charity (showing the charity’s name, the date of the donation and the amount given). You will no longer be able to deduct those few dollars you dropped in a charity’s collection bucket without a receipt from the charity to back up your claim.

Remember, it’s always better to give than receive. The glory of charitable donations is that you give and receive at the same time.

Organizations to Which You Can Give and Deduct Your Donation

Your contribution to every organization that Charity Navigator evaluates is tax deductible. If an organization is not evaluated by Charity Navigator, and you still want to support them, you are generally allowed a 50 percent ceiling on your adjusted gross income for contributions if they are any of the following organizations:

Churches and other religious organizations;
Tax exempt educational organizations;
Tax exempt hospitals and certain medical research organizations;
A government unit, such as a state or a political subdivision of a state;
Publicly supported organizations such as a community chest;
Certain private foundations that distribute all contributions they receive to public charities within two-and-a-half months after the end of the foundation’s fiscal year;
A private operating foundation which pools all of its donations in a common fund;
Certain membership organizations that rely on the general public for more than a third of their contributions.

Learn more about the tax implications of charitable giving in our FAQ.

Major Gifts

Michele — Wed, 15 Dec 2010 14:29:21 +0000

Loved this quote below and appreciate the perspective this article offers.

“A major gift is not something that donors do on a whim or a lark, or on the spur of the moment. And in all likelihood, they do not materialize without a great deal of time, talent, or effort attached. Making the major gift is a very special expression on the part of the donor, which lets the organization know that the donor believes in the organization 100 percent.”

Laura Fredricks, Developing major gifts: Turning Small Donors into Big Contributors

Tips for Implementing a Major Gifts Program

Year End Checklist for Nonprofits

Michele — Sun, 05 Dec 2010 23:58:10 +0000

If your organization’s fiscal year is from January to December, this time of year may leave you feeling a wide range of emotions. You find yourself grateful for the generosity and support of your volunteers, board members, donors, and others who have shared with you in your passion to make a difference! And, you are likely to feel a little overwhelmed with the responsibility of sending out giving statements by the end of January, closing out your fiscal year financials, and preparing for the required 990 Form.

The good news is that if you are using our fund accounting software, you can rest easy knowing how simple Aplos makes sending out giving statements. Also, if you are thinking of switching to a simpler fund accounting software, now is the time to change! Even if you are not a current customer, I hope this list helps keep you organized and sane during this busy season.

1. Make sure you have all donations entered with current addresses.

2. Decide what type of letter you want to send to your donors. Click here for a great resource. This is a great opportunity to let your donors hear specifically how their contribution made a difference.

3. Don’t forget to include other types of donations.

4. See what requirements your organization must meet on the federal, state, and local level.

5. Start reading the instructions for the Form 990 now. You might need to research some topics or include information that takes some time to find and organize.

Those are just a few ideas to get you started. Our desire to support you goes beyond our software so let us know if you need any help!

Aplos $200 Visa Gift Card Giveaway

Michele — Wed, 01 Dec 2010 06:29:08 +0000

What would you do with $200 dollars in Visa cash? Pay for some Christmas gifts? Go out to a nice dinner? Buy yourself something? Pay your gas for the month? Aplos is giving away a $200 Visa gift card to one lucky person!

Aplos is fund accounting software for nonprofits. We realize nonprofits and churches need to spend time on their mission – not on trying to figure out complicated accounting software. Click here to learn more about Aplos.

As for the giveaway, entering to win is simple, just like our software.

Official Contest Rules

$200 Visa Gift Card Giveaway

No purchase is necessary to enter or win. A purchase will not increase your chance of winning. The Aplos Twitter Giveaway (Giveaway) is sponsored and run by Aplos. Participation in the Giveaway constitutes entrants full and unconditional agreement to and acceptance of these Official Rules.

Giveaway Period. The Giveaway commences at 6 A.M. PST on December 1, 2010 and ends at 11:59 P.M. PST on December 25, 2010 if a minimum of 200 entries are received. If we do not obtain 200 entries by Dec. 25, 2010, the contest will continue until the minimum number is received. Sponsor shall select one (1) winner, at random, during giveaway period.

Eligibility. The Giveaway is open to anyone age 13 or older as of the date of entry who resides in the 50 United States, except where prohibited by law or in any state that would require advance registration of this Giveaway. The Giveaway is void in Puerto Rico and U.S. territories and possessions. You are not eligible to participate in the Giveaway if you are not located within the 50 United States. Giveaway is void where restricted or prohibited by law. Employees of Aplos and their immediate families (parents, siblings, children, and spouses of each) are not eligible.

How to Enter.

1. Go to your twitter page, if you don’t have one you can start one for free. www.twitter.com

2. Make sure you are following Aplos_Software. This is the only way we can notify you if you win!

3. Tweet out the following message exactly as it appears only once. (Multiple entries could jeopardize your Twitter account)

#Win a $200 Visa Gift Card from Aplos, simplifying #fundaccounting! Follow @Aplos_Software and ReTweet www.aplossoftware.com/blog/?p=552

4. If youve completed ALL 3 steps prior to the cutoff date, as set forth below, you’ve successfully entered for a chance to win a $200 Visa Gift card from Aplos.

Sponsor reserves the right to deny any entry based on submission of incomplete information or non-compliance with these Official Rules. Sponsor is not responsible for late, lost, delayed, damaged, misdirected, incomplete, illegible, or unintelligible entries.

Winner Selection. Sponsor will select one winner, at random, for giveaway. The cutoff date for posting a tweet for the giveaway is December 25, 2010. However, if the minimum number of 200 entrants is not received by December 25, 2010, the giveaway will continue until such date that the minimum number is received. The winner will be notified via direct tweet through the email associated with the corresponding Twitter Account. The winner has three (3) days from this email notification to respond and confirm the winning entry. If the initial winner does not respond within this period, then a second drawing will be held. If necessary, subsequent drawings will be held until there is a confirmed winner provided time permits. The winner shall be required to complete an affidavit or declaration of eligibility/liability and, where permitted by law, a publicity release, which must be signed and returned and received by Sponsor within seven (7) days of the date printed on the prize notification. Failure to comply may result in forfeiture of all rights to prize(s). Sponsor is not responsible for and shall not be liable for late, lost, misdirected, or unsuccessful efforts to notify winners. If a prize or prize notification letter is returned as undeliverable, prize may be forfeited and an alternate winner will be awarded.

Prize. $200 Visa Gift Card

General Terms and Conditions. By participating, entrants agree that Sponsor, its shareholders, agents and representatives, affiliates, subsidiaries, advertising, promotion and fulfillment agencies, and legal advisors are not responsible or liable for, and shall be released and held harmless from: (i) telephone, electronic, hardware or software program, network, Internet, or computer malfunctions, failures, or difficulties of any kind; (ii) any condition caused by events beyond the control of Sponsor that may cause the Giveaway to be disrupted or corrupted; (iii) any printing or typographical errors in any materials associated with the Giveaway; (iv) any and all losses, damages, rights, claims and actions of any kind in connection with or resulting from participation in the Giveaway, acceptance, possession, or use of any prize, including without limitation, personal injury, death, and property damage, and claims based on publicity rights, defamation, or invasion of privacy. Sponsor reserves the right, in its sole discretion, to amend and interpret these Official Rules at any time, and to terminate, suspend or cancel Giveaway at any time for any reason, including, without limitation, if a computer virus, bug, or other technical problem or security breach corrupts the administration, security, or proper conduct of the Giveaway. Participation in this Giveaway constitutes permission (except where prohibited by law) to use winners name, hometown (including state or province) and/or likeness for promotional purposes without further compensation. All issues and questions concerning the construction, validity, interpretation and enforceability of these Official Rules, or the rights and obligations of participant and Sponsor in connection with the Giveaway, shall be governed by, and construed in accordance with the laws of the State of California, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of California or any other jurisdiction), that would cause the application of the laws of any jurisdiction other than the State of California. Any claim arising out of the foregoing shall be instituted solely in a court situated in Fresno County, California, and entrant and Sponsor irrevocably agree to submit to the personal and exclusive jurisdiction of such court. All federal, state and local laws and regulations apply. All other trademarks are the property of their respective owners.

Sponsor. Aplos Software, Clovis, California.

Twitter Disclaimer. Multiple entries could jeopardize your Twitter account according to Twitter Terms and Conditions. Creating multiple accounts in order to obtain more than one entry is prohibited and could result in a suspension of all Twitter accounts.

Good Luck!