Nonprofit Tax Services

Nonprofit tax services that help power your mission

Move your mission forward with confidence 

Nonprofit organizations’ tax-exempt status comes with unique requirements. 

Tax exemption invites greater regulatory oversight, so nonprofits need to pay careful attention to all the details. Their tax-exempt status is also not absolute: Not only are they required to pay employee taxes, but they may also be on the hook for income generated from activities outside the scope of their core purpose.  

Evolving regulations, greater transparency requirements and intensifying regulatory scrutiny complexities abound for associations, hospitals, charities, schools, foundations and other 501(c) entities. BDO helps you stay focused on your mission and thrive as you navigate the unique tax and reporting requirements for the nonprofit sector.  

Bringing deep vertical experience and knowledge of nonprofits’ distinct needs, our team delivers nonprofit tax planning strategies that help offset your tax liability and mitigate compliance risk. 

How BDO Can Help

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Income earned from alternative investments can create business tax liabilities for organizations that would otherwise be tax exempt. BDO can help nonprofits:  

  • Analyze Schedule K-1s 
  • Determine taxable income  
  • Adhere to filing requirements 

It may come as a surprise that not every nonprofit is exempt from paying income taxes. We regularly review tax positions disclosed on the ASC 740-10 memorandum for our numerous nonprofit audit clients. For our non-audit clients, we help: 
  • Identify and research uncertain tax positions 
  • Draft the memorandum 
  • Submit to the existing audit firm 

The Form 990 presents an open look inside a nonprofit organization. This transparency means that forms need to be managed for both regulatory compliance and public perception.  

We monitor changes in reporting requirements and work with your organization to advise on the best options for both present and future filings. 

Nonprofit organizations may engage in activities that produce revenue considered to be commercial and therefore taxable. Organizations need to proceed with caution with these types of activities that may constitute taxable Unrelated Business Income (UBI). 

We help nonprofit organizations: 

  • Comply with all aspects of UBI laws, IRS guidance and industry standard practices 
  • Submit accurate and timely filings  
  • Take a proactive approach to both current and future transactions 
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Nonprofit Standard Blog

BDO’s Nonprofit Standard blog provides the nonprofit community with up-to-date information and forward-looking thought leadership on the industry’s critical issues. Our contributors understand the challenges facing nonprofit organizations, and combine their extensive experience serving clients with industry leadership to address the nuances of nonprofit financial and operations management, governance and sustainability. 

Nonprofit Tax Insights

Explore our most recent resources and thought leadership.

  • Industry
  • Life Sciences
  • Manufacturing
  • Natural Resources
  • Nonprofit & Education
  • Private Equity
  • Real Estate & Construction
  • Restaurants
  • Retail & Consumer Products
  • Technology

Stay current with our latest nonprofit tax insights.

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