CEO’s, Directors and Trustees of not-for-profit organizations have a far greater responsibility than those of for-profit companies. Accounting and tax requirements for these organizations are unique in many respects. Typically, not-for-profits have obligations to members or funding agencies and in the case of public charities, to the public as a whole, which are monitored by the Attorney General of the State of California.
The partners at Delucchi Hawn have, collectively, over 100 years of experience in dealing with not-for-profits. Those organizations receiving in excess of $500,000 in Federal awards require an audit in accordance with OMB circular A-133. In addition, the auditors, (your accounting firm), are required to have at least 24 hours of continuing professional education, on a bi-annual basis, in the field of Governmental Accounting and Auditing. Additionally, auditors for not-for-profit entities are required to perform additional tests on internal control and compliance in accordance with federal laws and regulations.
Of course, not all organizations require an audit, nor do they require the level of expertise necessary for Federally funded programs. Delucchi Hawn is fully cognizant of that and will contract to perform only the minimum level of work required by your organization. However, in order to meet all these standards, we pride ourselves on maintaining an even higher degree of expertise than these requirements would ordain.
The needs of many of our not-for-profit organizations are met by preparing financial statements in the form and format required for all not-for-profit entities. And, the preparation of necessary information tax returns to be filed with the Internal Revenue Service, Franchise Tax Board and, in many cases, with the Office of the Attorney General of the State of California and often with the Attorney General Offices of other states. Our extensive knowledge of these requirements enables us to effectively prepare all of these returns in a most efficient manner.
We also have extensive experience in filing for not-for-profit status for new organizations as well as assistance in setting up books and record-keeping, maintaining a financial reporting system, facilitating design of internal controls and operating procedures for the entity, assist in the production of budgets and cash-flow analysis and, finally, assisting not-for-profits in the areas of mergers, affiliations, consolidations and joint ventures.
Delucchi Hawn and its partners are well recognized in the not-for-profit community for our personal involvement in local charities and our experience and expertise in this complex area of tax and accounting.