Timothy Bell COA of Malloy, Lynch, Bienvenue, LLP talks about recent tax changes for Nonprofit Organizations in Massachusetts

1. 99 Lonb"vatcr Circle. Suite 200. Norwell . MA 02061
Malloy, Lynch, Bienvenue, LLP Telephone (78 1) 871 -5850 Fax (78 1) 87 1-5840
Certified Public Accountants & Advisors
9 Baystatc COtlrt, Brewster, MA 0263 1
Te lephone (508) 255-2240 Fax (508) 255 -235 1
Intcmcl: www. mlbcpa.nct
Malloy, Lynch, Bienvenue, LLP is a loca l finn with offices in Norwell and Brewster,
Massachusetts providing quality, professional and timely service to clients in Massachusetts for
over thirty years. We have substantial experience working with governmental, commercial , and
non-profit entities, including performance of Single Audits, providing specialized tax services to
non-profit entities, compiling Uniform Financial Reports, performing special engagements such
as closing of ledgers, forensic examinations, internal control and departmental reviews and
designing indirect cost allocation plans, to list some of our work. We offer highly qualified
auditing professionals among our principals and staff that will provide a continuity of service to
o ur clients over the years and who are always available to respond to and assist you as needed.
Our firm is a member of the American Institute of Certified Public Accountant's
Government Audit Quality Center, which demonstrates our commitment to audit quality of
governmental audits, including single audits, and financial statement audits, of both government
and not-for-profit organizations. As members of the audit quality center we are required to
maintain an extensive internal system of quality review and also participate in an external review
program. Our firm has been reviewed under the American Institute of Certified Public
Accountants Quality Review Program and received an unqualified "(clean)" opinion.
The following is an overview of our non-profit/municipal services:
MLB has a thriving and dynamic municipal and non-profit accounting, auditing and
consulting practice. Our continued success in the public sector has been a direct result of
delivering results and of delivering our services in an efficient and cost effective manner utilizing
the following core values:
Experience and Knowledge - our principals and staff are among the most knowledgeable public
sector accountants and advisors around. Our knowledge base goes back to the beginnin g of
private municipal auditing in Massachusetts and is continuously updated through ongoing
training and engagements. This knowledge is supported by dozens of years of experience in
applying o ur knowledge and craft.
Team approach - MLB utilizes a team approach to completing engagements resulting in a
continuity of service, diverse experience and efficient and timely service. Our engagement teams
are readily available to assist our clients as needed throughout the year.
Partner participation - A firm principal is significantly involved in every engagement providing
accessibility and availability with firm decisi on makers, enhanced quality of work, and timely
resolution of questions and issues that arise.
Quality and process - MLB delivers the highest quality service around. Our engagements are
thorough and comprehensive. All reports, findings and comments are well supported, sourced
and deliver value to your organization. To achieve this, MLB utilizes superior engagement and
management procedures, including proprietary practice aides for municipal and non-profit
organizations. Our engagement process has been built and perfected over the years based upon
our experience and is continuously re-engineered to ensure the latest emerging issues and best
practices are considered - before you need to know them.

2. The Non-Profit Toolbox
Half-Day Mini -Conference
Recent Tax Changes
Malloy, Lynch, Bienvenue, LLP
_
• Certified Public Accountants & Advisors

3. The Non-Profit Toolbox
Timothy S. Bell, CPA, CVA
tbell@mlbcpa.net
Malloy, Lynch, Bienvenue, LLP
www.mlbcpa.net
9 Baystate Court 99 Longwater Circle, Suite 200
Brewster, MA 02631 Norwell, MA 02061
Phone (508) 255-2240 Phone (781) 871-5850
Fax (508) 255-2351 Fax (781) 871-5840
Malloy, Lynch, Bienvenue, LLP
Certified Public AccountanL & Advisors
,

4. Recent Tax Changes
• Massachusetts Form PC Filing Changes
• IRA Charitable Rollover
• What's FIN 48 got to do with Form 9907
• Small Employer Health Insurance Credit
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MA Fonn PC Filing Changes
Annual Filing Fee
~!'.~ !:!!I(lPQ~"<!.!IdJ~!!,!~~ew Fe!'t l OliiFees
"
Less than $100,000 $35 $35
$100,001 to $250,000 $70 $70
$250,001 to $500,000 $125 $125
$500,001 to $1 million $250 $250
$1,000,001 to $10 million $500 N/A
$10,000,001 to $100 million $1,000 N/A
Over $100 million $2,000 N/A
Fees changed only for organizations with gross
support and revenue over $1 million
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Presented by Timothy Be!1. CPA, eVA
I I I I ! I Malloy, Lynch, Bienvenue, LLP
I I I i I I Certijled Public Accountants & Advisors 1

5. MA Form PC Filing Changes
Requirement to File Form 990 or Form 990 EZ
Effective for liscal years ending on or after 12/3111 0 organizations with
gross support and revenue with $5,000 or less will be exempt from
filing Form 990 or Form 990 EZ
Initial Registration Requirements
On or after III / II public charities reg istering for the first time must
submit a $ 100 one-ti me initial registration fee
The NOll-Profit Toolbox - Recent Tax Changes
Presented by Timolhy Bell, CPA, eVA )
IRA Charitable Rollover
• Allows donors over age 70 y, to exc lude from taxable
income any IRA funds up to $ I 00 ,000 that have been
withdrawn and transfened to a charity
• The IRA Charitable Rollover is extended through December
31,2011
The donor may elect the treat any qualified IRA Charitable
Rollover made in January 2011 to be treated as made in
2010
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T he Non-Profit Toolbox - Recen t Tllx Chllngcs IIi6IiiI C.mifinJww..... "«ow"I..",.. &< Ad.lsorJ'
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Presented by Timothy [Jel l. CPA. CV 1
Malloy, Lynch, Bienvenue, LLP
Certified Public Accountants & Advisors
2

6. IRA Charitable Rollover
• The maximum total exclusion per donor is $100,000
Qualified IRA Charitable Rollover contribution must be made directly
by trustee of the IRA
• An acknowledgement of the contribution is
needed to claim income exclusion (similar to
charitable deduction)
I11III Molloy, LYIICh, Oirn,clIu,·, LLP
The NOllwProrit Toolbox - Recent Tax Changes IiIiIiI CUlifkrll'~iJlj; Ic'''~III(JJ'U
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Presented by Timothy Bell, CPA, eVA
What's FIN 48 got to do with FOTIn 990
Page 3,Part IV, Checklist of Required Schedules
• The organization reported other liabilities
• Financial statements are prepared
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Presented by Timothy Bell, CPA, eVA G
_ Malloy, Lynch, Bienvenue, LLP
IIIII!Ii Certijied Public Accountants & Advisors 3

7. What's FIN 48 got to do with Form 990
FASB Interpretation No. 48, Accounting for Uncertainty in
Income Taxes: An Interpretation of FASB Statement No. 109
(ASe 740)
• Purpose: To prov ide guidance and clari fi cation regarding
the evalu ation of unccr1ain tax positions and calculation and
disclosure of reserves for uncertain tax positions
• Result : For non-profit entities more confusion
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Prc~ented by Timothy Dell, CPA. eVA
What's FIN 48 got to do with Form 990
What are some concerns regarding Uncertain Tax Positions?
• Revocation of exempt status
• Net earnings inures to an individual
• Unrelated Business Income Tax (Form 990-T)
• Extended Fund Raising Activity or Event
• Substantial Lobbying
Par1icipate or intervene in any political campaign
The Non-Profit Toolbox - Recent Ta.x Changt!s
Presented by Ti lll o lh y Be ll , CPA, eVA ,
" U'IJ'UY, Lynch, Bienvenue, LLP
o:.l CertilJRdPublic Accountants & Advisors 4

8. What's FIN 48 got to do with Form 990
In summary:
• If your organization has compiled, reviewed or
audited financial statements, it shou ld have a
disclosure that it has evaluated its tax positions and
whether or not there is a need for income tax
provIsIOn
'J'hc Non-Prolit Too lbox - Half-DRY Mini-ConlCrence
Recent Tux Cilangcs - Presented March 22 , 2011
•
Small Employer Health Insurance Credit
Eligibility_Rules
Empl oyer must cover at least 50% of the cost of health care coverage
Employer must have less than the equivalent of25 full-time workers
Average annual wages must be less than $50,000
Amount of Credit
Up to 25% of th e cost of health care premiums
On 1/ 1/ 14 th e credit rate increases to 35%
There are Limitations
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Recent Tax Challges - Prcsenled Mfln;h 22. 20 I 1 10
M,all.,y. Lynch, Bienvenue, LLP
Ce,r ljfiedPublic Accountants & Advisors 5

9. Small Employer Health Insurance Credit
Excluded Employees
Leased Employees
Seasonal Emplo yees
How to Calculate and Claim Credit
Calculated on Form 894 I
Claimed on Fonn 990- T
The Non-Profit Toolbox - Recent Tax Changes
Presented by Timothy Bell, CPA, CV A
"
Recent Tax Changes
QUESTIONS / DISCUSSION
'Massac husetts Form PC Filing Changes
• IRA Charitable Rollover
'What's "IN 48 got to do with Form 990?
• Small Employer Health Insurance Credit
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The Non-Profit Toolbox - Ret:ent Tax Changes IMIiIiI Cr'I~1...........lnlb•..,.lIn /1 ,10-/"""1
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Presented by Tirnothy Oell. C PA. CVA
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I I I I ! I Malloy, Lynch, Bienvenue, LLP
IIIiII Certified Public Accountant,l' & Advisors 6