Nonprofits operate in a complex environment where financial transparency, board engagement, and regulatory compliance are critical to success. Whitley Penn delivers tailored accounting and advisory solutions that strengthen financial reliability and support your nonprofit organization’s mission. Through proven processes, experienced professionals, and advanced technology, we help nonprofits achieve clarity and confidence in their financial operations.
Nonprofits operate in a complex environment where financial transparency, board engagement, and regulatory compliance are critical to success. Whitley Penn delivers tailored accounting and advisory solutions that strengthen financial reliability and support your nonprofit organization’s mission. Through proven processes, experienced professionals, and advanced technology, we help nonprofits achieve clarity and confidence in their financial operations.
What Makes Whitley Penn Different?
What Makes Whitley Penn Different?
Services We Provide to Nonprofits
We provide several services designed to meet the specific needs of nonprofit organizations. Below are a few of the ways we can support your organization:
Assurance Services
- Financial statement audit
- Financial statement review
- Employee benefit plan audits (defined contribution and defined benefit)
- Internal control design and assessment
- Cybersecurity assessment
Client Accounting & Advisory Services
- Outsourced accounting services
- Outsourced controllership
- Virtual CFO services
- Preparation of reporting packages for leadership and finance committee
- Accounts payable management and processing
- Financial statement compilation
- QuickBooks online conversion
- Sales tax filings
- Payroll processing
- Payroll filing
- Payroll audit
- 1099 preparation and submission
- Accounting systems consultations
- External financial statement audit support
- Mineral management services
- Ad valorem tax management and payments
Digital Services
- Automated reporting and analytics
- Process transformation
- AI enablement
- Sage Intacct implementation
Forensic & Litigation Services
- Fraud investigation
- Forensic accounting
Tax Services
- Preparation of Federal Form 990-EZ, 990, 990-T, 990-PF, and 4720 filings
- State filing requirements
- Calculation of net investment income tax and unrelated business income tax
- Planning for net investment income tax and unrelated business income tax
- Evaluation of qualifying distributions and minimum distribution requirements
- Preparation of Form 1023, 1023-EZ, and 1024 to receive tax-exempt status
Valuation Services
- Qualified appraisals for donations of non-cash assets
- Valuations of business ownership interests in advance of business sale
Wealth Management (WPWealth)
- Asset focused giving
- Donor advised funds
- Qualified charitable distributions
- Employee benefit plan administration
- Investment advisory services
Services We Provide to Nonprofits
We provide several services designed to meet the specific needs of nonprofit organizations. Below are a few of the ways we can support your organization:
Assurance Services
- Financial statement audit
- Financial statement review
- Employee benefit plan audits (defined contribution and defined benefit)
- Internal control design and assessment
- Cybersecurity assessment
Client Accounting & Advisory Services
- Outsourced accounting services
- Outsourced controllership
- Virtual CFO services
- Preparation of reporting packages for leadership and finance committee
- Accounts payable management and processing
- Financial statement compilation
- QuickBooks online conversion
- Sales tax filings
- Payroll processing
- Payroll filing
- Payroll audit
- 1099 preparation and submission
- Accounting systems consultations
- External financial statement audit support
- Mineral management services
- Ad valorem tax management and payments
Digital Services
- Automated reporting and analytics
- Process transformation
- AI enablement
- Sage Intacct implementation
Forensic & Litigation Services
- Fraud investigation
- Forensic accounting
Tax Services
- Preparation of Federal Form 990-EZ, 990, 990-T, 990-PF, and 4720 filings
- State filing requirements
- Calculation of net investment income tax and unrelated business income tax
- Planning for net investment income tax and unrelated business income tax
- Evaluation of qualifying distributions and minimum distribution requirements
- Preparation of Form 1023, 1023-EZ, and 1024 to receive tax-exempt status
Valuation Services
- Qualified appraisals for donations of non-cash assets
- Valuations of business ownership interests in advance of business sale
Wealth Management (WPWealth)
- Asset focused giving
- Donor advised funds
- Qualified charitable distributions
- Employee benefit plan administration
- Investment advisory services
What Problems Do We Solve for Nonprofits?
Here are common pain points we target to assist nonprofits:
- Ad valorem tax management and payments
- Asset focused giving
- Automated reporting and analytics
- Cybersecurity assessment
- Forensic accounting
- Form 990 series filing
- Fraud investigation
- Mineral management services
- Qualified appraisals for donations of non-cash assets
- Retroactive reinstatement of tax-exempt status
What problems do we solve?
Here is a list of common pain points we target:
- Ad valorem tax management and payments
- Asset focused giving
- Automated reporting and analytics
- Cybersecurity assessment
- Forensic accounting
- Form 990 series filing
- Fraud investigation
- Mineral management services
- Qualified appraisals for donations of non-cash assets
- Retroactive reinstatement of tax-exempt status
Meet the Nonprofit Team
Our Nonprofit Clients
& Impact
Who We Serve:
- Private Foundations
- Public Charities
- Education and Public Sector
- Arts and Humanities
- Health and Human Services
- Social Services
- Animal Welfare
Our Nonprofit Clients
& Impact
Who We Serve:
- Private Foundations
- Public Charities
- Education and Public Sector
- Arts and Humanities
- Health and Human Services
- Social Services
- Animal Welfare
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Hear From Our Nonprofit Clients
Nonprofit Insights
Frequently asked questions
See below for answers to common nonprofit-related questions.
Are all tax-exempt organizations 501(c)(3) organizations?
No. There were 1.847M tax-exempt organizations in the US as measured by the IRS in fiscal year 2023, of which 1.514M were Section 501(c)(3) entities. Section 501(c) of the Internal Revenue Code had just over 330,000 other exemptions.
What is a private foundation?
A private foundation receives funding from a limited group of donors and receives support from investment activities. A private foundation is often controlled by its funders and will file a Form 990-PF each year.
Most private foundations support public charities through grants but are subject to a minimum annual distribution and self-dealing limitations.
Can a tax-exempt organization generate a profit?
Yes! An organization that is not able to sustain itself would not be able to stay in business. It’s vital to the success of any tax-exempt organization that the organization have a way to generate income to sustain operations.
Is a tax-exempt organization exempt from ALL taxes?
No, a tax-exempt organization is generally exempt from federal income taxes, but the following taxes may still be due to the local, state, or federal tax jurisdiction:
- Property taxes
- Sales tax
- Payroll tax
- Excise tax, including net investment income tax for private foundations
- Unrelated business income tax
- State income tax
Who owns a tax-exempt organization?
No one “owns” a tax-exempt organization, but the leadership of the board of directors and potentially an executive director control the organization.
The tax-exempt organization must serve the public interest and cannot serve private interests; however, the organization should advance a charitable cause, which could include a charitable class.
How is a tax-exempt organization created?
A tax-exempt organization is traditionally either a corporation, a trust, or an association. Most often a corporation is created with the assistance of an attorney specializing in exempt organizations.
Then either the attorney or the CPA can help prepare the application for tax-exemption that will be filed with the IRS. Most typically this is a Form 1023 or Form 1024.
These applications demonstrate the tax-exempt purpose of the organization, and the IRS issues a determination letter showing that they agree and recognize the organization as tax-exempt.
How long does it take the IRS to review an application for tax exempt status?
It currently takes the IRS about seven months to process an application for tax exempt status, but that time can vary based on the number of applications the IRS has to review.
Should I create a tax-exempt organization if I want to serve the public?
Not necessarily. There are many other viable alternatives to creating a new tax-exempt organization, including:
- Evaluating existing organizations to see if any fulfill your specific wish to serve the community
- Partnering with friends and family to volunteer to serve this cause without creating an entity
- Working with a donor advised fund or local community foundation
How does a 501(c)(3) organization document gifts received?
The IRS has an incredible short list located here: Charitable contributions: Written acknowledgments | Internal Revenue Service (irs.gov).
Frequently asked questions
See below for answers to common nonprofit-related questions.
Are all tax-exempt organizations 501(c)(3) organizations?
No. There were 1.847M tax-exempt organizations in the US as measured by the IRS in fiscal year 2023, of which 1.514M were Section 501(c)(3) entities. Section 501(c) of the Internal Revenue Code had just over 330,000 other exemptions.
What is a private foundation?
A private foundation receives funding from a limited group of donors and receives support from investment activities. A private foundation is often controlled by its funders and will file a Form 990-PF each year.
Most private foundations support public charities through grants but are subject to a minimum annual distribution and self-dealing limitations.
Can a tax-exempt organization generate a profit?
Yes! An organization that is not able to sustain itself would not be able to stay in business. It’s vital to the success of any tax-exempt organization that the organization have a way to generate income to sustain operations.
Is a tax-exempt organization exempt from ALL taxes?
No, a tax-exempt organization is generally exempt from federal income taxes, but the following taxes may still be due to the local, state, or federal tax jurisdiction:
- Property taxes
- Sales tax
- Payroll tax
- Excise tax, including net investment income tax for private foundations
- Unrelated business income tax
- State income tax
Who owns a tax-exempt organization?
No one “owns” a tax-exempt organization, but the leadership of the board of directors and potentially an executive director control the organization.
The tax-exempt organization must serve the public interest and cannot serve private interests; however, the organization should advance a charitable cause, which could include a charitable class.
How is a tax-exempt organization created?
A tax-exempt organization is traditionally either a corporation, a trust, or an association. Most often a corporation is created with the assistance of an attorney specializing in exempt organizations.
Then either the attorney or the CPA can help prepare the application for tax-exemption that will be filed with the IRS. Most typically this is a Form 1023 or Form 1024.
These applications demonstrate the tax-exempt purpose of the organization, and the IRS issues a determination letter showing that they agree and recognize the organization as tax-exempt.
How long does it take the IRS to review an application for tax exempt status?
It currently takes the IRS about seven months to process an application for tax exempt status, but that time can vary based on the number of applications the IRS has to review.
Should I create a tax-exempt organization if I want to serve the public?
Not necessarily. There are many other viable alternatives to creating a new tax-exempt organization, including:
- Evaluating existing organizations to see if any fulfill your specific wish to serve the community
- Partnering with friends and family to volunteer to serve this cause without creating an entity
- Working with a donor advised fund or local community foundation
How does a 501(c)(3) organization document gifts received?
The IRS has an incredible short list located here: Charitable contributions: Written acknowledgments | Internal Revenue Service (irs.gov).