Malloy, Lynch, Bienvenue, LLP Certified Public Accountants & Advisors

99 Lonb"vatcr Circle. Suite 200. Norwell . MA 02061 Telephone (78 1) 871 -5850 Fax (78 1) 87 1-5840

9 Baystatc COtlrt, Brewster, MA 0263 1

Telephone (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 our 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 beginning 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 our 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.

The Non-Profit Toolbox

Half-Day Mini -Conference

Recent Tax Changes

_Malloy, Lynch, Bienvenue, LLP

• Certified Public Accountants & Advisors

The Non-Profit Toolbox

Timothy S. Bell, CPA, CV A tbell@mlbcpa.net

Malloy, Lynch, Bienvenue, LLP www.mlbcpa.net

9 Baystate Court

Brewster, MA 02631

Phone (508) 255-2240

Fax (508) 255-2351

Malloy, Lynch, Bienvenue, LLP Certified Public AccountanL, & Advisors

99 Longwater Circle, Suite 200

Norwell, MA 02061

Phone (781) 871-5850

Fax (781) 871-5840

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

The Non~Pront Toolbox - Recent Tax Changes

Prescll1ell by Timothy Bell , CPA, eVA

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MA Fonn PC Filing Changes Annual Filing Fee

~!'.~ !:!!I(lPQ~ "<!.!IdJ~!!,!~~ew Fe!'tl O"liiFees 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

The Non-Profit Toolbox - Recent Tax Changes

Presented by Timothy Be!1. CPA, eVA

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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-time initial registration fee

The NOll-Profit Toolbox - Recent Tax Changes

Presented by Timolhy Bell , CPA, eVA

IRA Charitable Rollover

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• 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

T he Non-Profit Toolbox - Recen t Tllx Chllngcs

Presented by Timothy [Jel l. CPA. CV 1\

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Certified Public Accountants & Advisors

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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)

The NOllwProrit Toolbox - Recent Tax Changes

Presented by Timothy Bell, CPA, eVA

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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

"fhe Non-Protit Toolbox - Recent Tax Changes

Presented by Timothy Bell, CPA, eVA

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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 provide guidance and clari fi cation regarding the evaluation of unccr1ain tax positions and calculation and disclosure of reserves for uncertain tax positions

• Result : For non-profit enti ties more confusion

The Non·Profi l Toolbox - Reccnl 'fax Changes

Prc~ented by Timothy Dell , CPA. eVA

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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

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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 the cost of health care premiums

On 1/ 1/ 14 the credit rate increases to 35%

There are Limitations

The Non-ProJit loolbox - I'I<lIf-Oay Mini -Conferenec

Recent Tax Challges - Prcsenled Mfln;h 22. 20 I 1

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Small Employer Health Insurance Credit

Excluded Employees

Leased Employees

Seasonal Employees

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

'Massachusetts Form PC Filing Changes

• IRA Charitable Rollover

'What's "IN 48 got to do with Form 990?

• Small Employer Health Insurance Credit

The Non-Profit Toolbox - Ret:ent Tax Changes

Presented by Tirnothy Oell. CPA. CVA

IIII!IMalloy, Lynch, Bienvenue, LLP

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