Frequently Asked Questions about Non-Profit Setup
Answers to common questions regarding non-profit setup.
What’s involved in setting up a non-profit?
It includes choosing a name, creating bylaws, filing incorporation paperwork, applying for 501(c)(3) tax-exempt status, and meeting state-specific requirements.
Do I need 501(c)(3) status to be a non-profit?
While you can operate as a non-profit without it, 501(c)(3) status is essential for tax exemption and for donors to receive tax deductions.
Can you help with the IRS application?
Yes, we guide you through the entire IRS Form 1023 or 1023-EZ application process to improve approval speed and accuracy.
How long does it take to set up a non-profit?
It typically takes a few weeks to establish the organization and several months to receive IRS tax-exempt approval, depending on the application type and state.
Do you help with ongoing compliance after setup?
Yes, we offer ongoing support to help with annual filings, board governance, and state/federal compliance to keep your non-profit in good standing.
Why should our nonprofit hire a CPA firm instead of relying on internal staff?
While internal staff are essential, a CPA firm brings specialized expertise in nonprofit accounting, compliance, and reporting. We help ensure accuracy, transparency, and alignment with IRS and grantor requirements—freeing your team to focus on mission-critical work.
What specific value does a CPA bring to our nonprofit’s financial health?
A nonprofit CPA helps you stay compliant, uncover financial insights, and make strategic decisions. We offer independent analysis, strengthen financial systems, and support long-term sustainability through sound financial practices.
Are CPA services affordable for nonprofits with tight budgets?
Yes. We offer scalable, mission-aligned services that fit a variety of budgets. Think of us as a cost-effective investment in your organization’s compliance, donor trust, and financial clarity.
Can you help maintain our 501(c)(3) tax-exempt status?
Absolutely. We assist with Form 990 preparation, IRS compliance, and guidance to ensure your nonprofit maintains its tax-exempt status and avoids penalties or revocation risks.
What about audits or grant reporting requirements?
We provide audit prep, grant financial tracking, and reporting support to ensure you meet funder, government, and GAAP standards—keeping your funding secure and relationships strong.
Does our nonprofit need to follow GAAP?
Yes, if you receive grant funding or plan to grow, following Generally Accepted Accounting Principles (GAAP) is essential. We help you adopt and maintain GAAP-compliant systems for credibility and compliance.
What types of financial reports should we regularly provide?
You should regularly generate:
Statement of Financial Position (Balance Sheet)
Statement of Activities (Income Statement)
Budget vs. Actual reports
Cash flow reports
We help create and interpret these reports for board meetings and operational decisions.
Can you assist with internal controls and fraud prevention?
Yes. We assess risk and help design strong internal controls to prevent fraud, errors, and misuse of funds—critical for maintaining donor and regulatory trust.
Will you help with budgeting and financial forecasting?
Definitely. We collaborate with your leadership team to build realistic budgets and financial forecasts that align with your mission, strategic goals, and funding streams.
Can you support us during major growth initiatives?
Yes. Whether you’re expanding programs, hiring staff, or seeking large grants, we provide financial modeling, funding strategy support, and infrastructure planning to guide responsible growth.
How does a nonprofit CPA improve donor and board confidence?
Professional financial oversight signals transparency and accountability. Clean books, timely reporting, and independent CPA guidance give your board and donors the confidence that funds are being managed responsibly.
Professional non-profit setup services to help you launch with confidence, stay compliant, and focus on your mission.
