Specialized tax support for nonprofits, covering Forms 990, UBIT, multistate compliance, and more. AAFCPAs helps you stay compliant, optimize tax positions, and focus on your mission.
Focus on your mission, not your tax complexity
While nonprofit organizations are often considered tax-exempt, the reality is far more complex. Many nonprofits, including private foundations, face tax obligations that require careful navigation. At AAFCPAs, our specialized team of tax professionals helps nonprofits address these nuanced tax issues, ensuring full compliance and optimizing their tax position.
AAFCPAs provides trusted tax compliance and advisory services for nonprofits. Navigating state and local tax issues can be daunting for nonprofit organizations. Our experienced professionals specialize in nonprofit tax laws and provide tailored guidance to help you avoid penalties, optimize your tax position, and ensure full compliance with federal, state, and local tax regulations.
We emphasize proactive planning, compliance, and coordination across financial disciplines to mitigate risk and support long-term financial health. Our guidance promotes informed decision-making through collaboration with trusted advisors.
Turning required reporting into strategic insight
AAFCPAs provides specialized advisory services to nonprofit organizations on the IRS’s federal Forms 990 series, supporting compliance with precision and clarity. Beyond meeting regulatory standards, we help nonprofits use the 990 forms as a strategic tool to showcase financial integrity, mission impact, and operational efficiency. This approach not only minimizes audit risks and strengthens fundraising credibility but also optimizes transparency, helping organizations effectively communicate their value to stakeholders and bolster public trust.
Tax implications of non-mission-related activities
While tax-exempt organizations are generally not subject to federal and state income taxes, certain activities may generate Unrelated Business Income (UBI) and be subject to Unrelated Business Income Tax (UBIT).
UBIT generally applies when a nonprofit regularly carries on a trade or business that is not substantially related to its tax-exempt mission. When applicable, organizations must report this income on Form 990-T.
Common sources of unrelated business income exposure may include:
AAFCPAs’ nonprofit tax specialists help nonprofits evaluate activities that may create Unrelated Business Income Tax (UBIT) exposure and navigate the related federal and state tax requirements. Our team reviews revenue streams, interprets applicable UBIT rules, and identifies strategies to help minimize potential tax liability. We also assist with cost allocation methodologies that maximize allowable deductions and provide guidance on Form 990-T preparation and compliance. With thoughtful planning, nonprofits can pursue revenue-generating activities while maintaining compliance and protecting their tax-exempt status.
Nonprofit State Tax Compliance
Nonprofit Tax & Legal Advisory
Private Foundations, while a nonprofit, are subject to a tax on their net investment income. This tax applies to income generated from interest, dividends, rents, and other investment activities. At AAFCPAs, our tax advisors assist nonprofits in accurately calculating their tax liability, ensuring compliance with IRS regulations, and exploring strategies to minimize their tax burden.
In today’s globalized world, nonprofits increasingly engage in cross-border activities and investments. Our advisors ensure that your foreign activities align with your organization’s tax-exempt purpose and mission. We help nonprofits navigate complex IRS reporting requirements, such as those for foreign investments and grants, to maintain compliance and avoid risks to tax-exempt status. By proactively managing these activities, we support your organization in confidently pursuing its global impact objectives without compromising compliance or mission alignment.
In addition to a deep bench of CPAs, our team of in-house Consulting Attorneys guide clients through critical matters such as nonprofit formation, 501(c)(3) tax-exempt applications, bylaws review, governance policies, and more. Whether you need assistance with contracts, employment matters, real estate, trademark registration, or mergers and dissolutions, we are committed to helping you navigate the complexities of nonprofit management at every stage.
AAFCPAs’ professionals are specialists in tax credit-based financing used widely in the community development industry, including: New Markets tax credits, Low-Income Housing tax credits, federal and state Historic Rehabilitation tax credits, Renewable Energy tax credits, and projects that combine tax credits with various levels of debt and rental assistance subsidies. We routinely provide advisory services throughout a project’s life cycle from deal structuring, to tax credit compliance, and assisting with investor exits.
WHAT OUR CLIENTS SAY
I highly recommend AAFCPAs to any nonprofit looking for exceptional value in a CPA and Consulting firm. We utilize them for our Audit, Tax, ERISA, UFR for all compliance needs, and are equally pleased with consulting in UBIT, TCJA, Entity Structuring, Internal Controls, Business Processes, donation/campaign, and New Market Tax Credits…all of which encompass business matters designed to help us be successful in our mission. AAFCPAs is a great business partner and contributes to the overall success of St. Francis House.
NBTS has engaged AAFCPAs for Audit, Tax, Business Process Consulting, and IT System Selection advice. I am impressed with the quality of their work and value they provide. Their professionals are smart, personable, and go out of their way to fully understand us as people and as an organization. They are happy to work with us on the difficult questions. I highly recommend them to my peers.
TRENDING NOW
Stay up-to-date on trending topics, fresh perspectives, in-depth analysis, and regulatory alerts that affect your business.
Four bills recently advanced by the House Ways and Means Committee could have implications for tax-exempt organizations. The proposals address foreign funding disclosure, political activity,…
Nonprofit finance leaders are shifting from managing new standards to applying them in practice—bringing focus to key judgment areas and evolving compliance requirements.
Financial clarity, when tied directly to program activity, gives leadership teams a more reliable foundation for decision-making and long-term planning.
CONTACT US
Every situation is unique. We look forward to speaking with you to determine how we may best solve your needs.
