A new initiative launched by the MACPA in conjunction with the Detroit Executive Service Corps will help the smallest of not-for-profits comply with requirements to file form 990. Charities and other tax-exempt organizations are required to file the 990 annually. Many of these small not-for-profits are mission-driven and are providing outstanding services to the communities to which they serve.
“Many small not-for-profits don’t file a 990 because they don’t know they should, they lack the resources to pay a professional to prepare the form, or they’re confused by the complexity of the instructions,” said CPA Jim Bayson. “They need to be in compliance, plus some of these small groups discover that they need a 990 when they apply for a grant from a foundation or state agency,” added Bayson.
Bayson, a retired Plante & Moran partner, is spearheading the partnership between MACPA and DESC to find CPAs and firms willing to provide free services to help qualified not-for-profits file form 990.
Through the program, the MACPA will identify firms and individual CPAs willing to provide pro bono assistance. Small not-for-profits meeting certain criteria will be identified by DESC, and matched with MACPA’s volunteers.
“If your firm participates, the MACPA will let the DESC know of your interest,” explained Bayson. “The DESC will screen the candidate and contact your firm to determine if you would want to handle the engagement. If it’s a ‘go,’ the firm would be given the not-for-profit’s contact information.”
In order to be eligible for free services, the not-for-profit must qualify to file form 990EZ and cannot be using a CPA firm currently.
Bayson explained that firms preparing any forms would have an engagement letter signed by the not-for-profit acknowledging the fact the firm would not be paid and accordingly would not be signing the return. The engagement letter would also limit the liability, if any, to the firm.
“CPAs and firms will be able to provide these services at their convenience,” said Bayson. He noted that many not-for-profits could obtain extensions so the forms could be completed at the convenience of the CPA firm and not necessarily during a busy time.
Bayson said in addition to feeling fortunate to be able to give back something to the community, he has had the chance to meet highly dedicated and passionate people trying to improve the communities in which they serve.
“This is a great opportunity for firms and sole practitioners to provide community service, plus it’s work that’s suitable for young staff members,” noted Bayson.
The legal profession has been providing pro-bono work to not-for-profits in the tri-county area through a group called Community Legal Resources.
CPAs and firms interested in providing pro bono service to help small not-for-profits file 990EZ forms should contact Jill Rafferty by e-mail, or phone 248.267.3747.