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Top Reasons to Form an Audit Committee for Your Nonprofit
Financial reporting can be a massive challenge for most nonprofit organizations. After all, most nonprofit boards comprise volunteers and contractual employees with little to no experience in financial management. Setting up an audit committee composed of financial experts will help ensure financial transparency and accountability in your organization. This post explains why your nonprofit board…
Top Reasons to Form an Audit Committee for Your Nonprofit
Homeowners associations (HOAs) are non-profit organizations. However, being a non-profit organization does not make a homeowners association tax-exempt. Under federal tax laws, HOAs must file tax returns annually as any other registered corporation would. HOAs collect fees from community members and follow a business-like structure. However, there are various circumstances in which an HOA might…
The Top 5 Bookkeeping Benefits for HOAs
Homeowners associations process a lot of transactions in their day-to-day operations. They collect membership fees, dues, and HOA assessments. They also pay vendors and service providers for various services to improve and maintain community properties. The HOA’s primary role is to manage and oversee community resources. They must record each transaction to minimize errors, prevent…
HOA Capital Contribution Fees: What Are They?
Buying a home in an HOA community comes with numerous benefits. However, new homeowners must comply with various fees and financial obligations at closing, including paying a capital contribution for HOA. This guide explains the HOA capital contribution fee and its significance to the community. HOA Capital Contribution Explained All home sales have closing costs…
How To Find a Professional Bookkeeper for Your Small Business
Bookkeeping is an integral part of sound financial management. It paints a clear picture of your organization’s current financial status. Since running a business has numerous complexities, many organizations seek professional bookkeeping services. This guide explains how to find a bookkeeper for your small business. Who Is a Bookkeeper? A bookkeeper is a professional responsible…
What Is the Difference Between HOA Assessments and Dues?
From manicured lawns to well-maintained amenities, residing in a HOA community can be a fulfilling experience. However, this residential experience comes at a cost. HOA residents must pay monthly or annual fees for regular maintenance and repair costs. These charges are numerous, and understanding them can be complicated for homeowners and board members. This guide…
Do HOAs File Tax Returns?
Homeowners associations are nonprofits, meaning they are probably exempt from paying taxes. However, there are different categories of nonprofits, with HOAs classified as common interest realty associations (CIRA). Under federal law, CIRAs must file tax returns. So, why do homeowners associations have to file tax returns, yet they are nonprofit organizations? Let’s find out. Why…
Are Homeowners Association Fees Tax Deductible?
While HOAs are nonprofit organizations, the IRS regards them as a corporation. In any case, HOAs collect various fees from homeowners to cover repair and maintenance costs. For this reason, HOAs must file tax returns annually on these dues. The good news is that some HOA fees might be eligible for tax deductions, lowering your…
Why You Need a CPA for an HOA and How to Find a Reliable One
A homeowners association (HOA) comprises a board of directors that enforces community rules, maintains common areas, mediates between members, and manages public resources. It also collects monthly or annual fees from residents and allocates funds to various projects. This point brings us to the question: Why do you need a CPA? This guide explains why…
Who to Hire: Nonprofit Bookkeepers vs. Nonprofit Accountants
Homeowners associations (HOAs) are nonprofit organizations, meaning they operate with no intention of generating a profit. The funds collected by the association cater to the welfare of the community. Given the financial complexities involved with nonprofits, many HOAs turn to bookkeepers and accountants to handle their finances. This guide explains who to hire between nonprofit…