Book excerpt: The Top 50 Mistakes in Nonprofit Taxation and Governance Issues and How to Fix Them Description: The nonprofit sector is growing by leaps and bounds. There are now more than 2 million organizations in the United States. However nearly four hundred thousand organizations lost their tax exempt status in 2011 through 2014. Congress and the IRS are now scrutinizing nonprofits in much greater depth. New applications for tax-exempt status are being analyzed more thoroughly, and Form 990 has been revised to provide more in-depth information that will enable both the IRS and donors to evaluate organizations. This unique course will enable CPA's to serve their existing clients in an improved manner as well as open markets to this growing client base. The class will include recent legislative changes and court cases affecting the nonprofit sector and revisions to Form 990. Cases studies will extensively cover internal control, budgeting, conflicts of interest and other similar areas. (Qualifies for Yellow Book CPE) Objectives Identify the major errors in forming a new nonprofit organization, which could result in embarrassment and potential liability to its directors How to assist clients with planning strategies to grow and sustain their organizations in the future Preparing the challenging Form 990 and avoiding mistakes with the IRS and state tax authorities and put the best image out relating to the organizations Highlights: Nonprofit Formation and Governance Mistakes in preparation of the IRS application for tax-exempt status cause entities to be denied tax exempt/public charity status because of a lack of understanding as to IRS requirements Many organizations fail because of poor planning in structuring a new nonprofit and creating a strong board of directors Not handling conflicts of interest properly may cause embarrassment and potential personal liability for the directors Fundraising activities may be illegal or unethical under federal or state law Mistakes in establishing internal control procedures in a nonprofit organization can cause the risk of misappropriation and embezzlement Did the organization need to be created when something simpler, like a donor advised fund or partnering with an existing organization, could have substituted Was time and money wasted Is the organization realistic in obtaining funding in an extremely competitive philanthropic environment Nonprofits fail even with admirable intentions