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990 Tax Preparation for Auxiliary

  • 13 Feb 2020 9:23 AM
    Message # 8744806

    Background:  Currently, our corporate financial team submits the annual 990 for our Auxiliaries (our Aux are structured as separate 501(c)3 "supporting" organizations.)  They have notified our board chairs that they will begin passing along the preparation and auditing fees to the Auxiliaries. 

    Two Questions: 

    1.  For those of you with a similar structure, who prepares your Auxiliary(ies)'s 990 and conducts the annual audit? 

    2.  Who pays the fee?

     

     

     

     

  • 14 Feb 2020 12:50 PM
    Reply # 8747538 on 8744806

    Patricia,

    In the old days the Auxiliary had to hire an accounting firm to do the taxes as a separate non-profit.

    New administration decided that the gift shop should become a department of our non-profit hospital.  That way there is only one tax filing.  We do have a paid staff besides volunteers in the shop.

    This changed the role of the Auxiliary to service only, not fundraising.  While there is still an Auxiliary on the books, it hasn't functioned in several years.


    Frank Hrabe



  • 17 Feb 2020 12:45 PM
    Reply # 8752292 on 8744806

    Our structure is the same as yours (501c3 supporting org). The Auxiliary works with an outside accounting firm to perform an annual review (not as extensive as an audit) and prepare the Form 990 . My department does all of the bookkeeping, accounts payable, etc for the gift shops and the Auxiliary so we have readily available the information the accountants require to perform these duties. If those tasks are performed outside of your department, that may affect your options.

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