Smarter Tax Strategy
for Nonprofits
Focus on your business and knowing your mission is secured with specialized tax planning for nonprofits.
Maximize impact.
Minimize tax burden.
You don’t operate like a typical business. Your tax plan shouldn’t either.
Nonprofits change the world one mission at a time, and your work creates lasting impact in communities that need it most. Every dollar you save on taxes and administrative costs is another dollar that goes directly toward the people and causes you serve.
Stronger strategy. Less stress. Real results.
Working with Anthem:
What to Expect
Our proven tax strategy process can be broken down into four simple steps. Throughout the process, you’ll get a clear roadmap that leads to real results.
You’ll know exactly what actions to take in order to minimize tax burden and maximize long-term growth. Here’s how we work with you:
WORKING WITH ANTHEM: WHAT TO EXPECT
Our proven tax strategy process can be broken down into four simple steps. Throughout the process, you’ll get a clear roadmap that leads to real results.
You’ll know exactly what actions to take in order to minimize tax burden and maximize long-term growth. Here’s how we work with you:
Get a Free Discovery Meeting.
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FEATURED PODCAST EPISODE:
SHOULD I PAY MY KIDS THROUGH MY BUSINESS?
Hiring your kids = major tax savings? Let’s break it down.
Paying your kids through your business can be a powerful tax-saving strategy—if done correctly. Not only can it reduce your taxable income, but your child may also pay little to no federal income tax on what they earn. But this only works if your child is doing legitimate work, you’re paying a reasonable wage, and you’re following the right IRS rules.
Welcome to Ask Anthem: The podcast where we break down complex tax topics for Business Owners and Families. In this video, we break down everything you need to know before cutting that first family paycheck.
TAX RESOURCES FOR AGRICULTURE BUSINESS OWNERS
FAQs
Tax-exempt status isn’t automatic. You have to apply for it, usually under section 501(c)(3), by filing Form 1023 or the shorter 1023-EZ if you qualify. Once approved, donations to your organization become tax-deductible for donors.
Yes. Most tax-exempt organizations still file an annual Form 990, 990-EZ, or 990-N depending on your revenue and assets. Skipping it isn’t an option.
Miss three years in a row and the IRS automatically revokes your exempt status. That’s a hard one to walk back from.
UBIT stands for unrelated business income tax, and it applies when a nonprofit earns money from activities not substantially related to its mission. Think a gift shop, rental income in some cases, or advertising revenue.
Even tax-exempt organizations can owe tax on this kind of income. Knowing what counts helps you plan for it instead of getting surprised.
Stay focused on your exempt purpose, avoid excessive lobbying or political activity, file your 990 every year, and don’t let private individuals benefit unfairly from the organization’s activities. Sounds simple, but the details trip people up.
Board oversight and clean recordkeeping go a long way here. Consistency is what keeps you protected.
Donor acknowledgment letters, grant agreements, in-kind contribution documentation, and records showing how restricted funds were used all matter. Donors also need proper receipts to claim their own deductions.
Good documentation protects both you and your donors.
Yes, reasonable compensation for actual work is fine. The IRS gets concerned when pay looks excessive relative to the role, or when it looks like insiders are personally benefiting from the organization’s income.
Documenting how compensation decisions are made helps show everything was handled properly.
Restricted funds come with donor-imposed conditions on how they’re used, while unrestricted funds can go anywhere the organization needs them. Tracking the two separately matters for financial reporting and donor trust.
It’s less about a direct tax hit and more about accountability. Mixing them up can create real headaches later.
Federal exemption doesn’t automatically cover state and local taxes. Depending on where you operate, you may need to apply separately for state income tax exemption, property tax exemption, or sales tax exemption.
Requirements vary a lot by state. Don’t assume federal approval means you’re covered everywhere.
Restricted funds come with donor-imposed conditions on how they’re used, while unrestricted funds can go anywhere the organization needs them. Tracking the two separately matters for financial reporting and donor trust.
It’s less about a direct tax hit and more about accountability. Mixing them up can create real headaches later.
If your agency is certified to provide developmental disabilities services in Oregon, state rule OAR 411-323-0030 requires it. Agencies with $1,000,000 or more in annual revenue need a full audit at least once every two years. Agencies under $1,000,000 need financial statements audited, reviewed, or compiled by a CPA on the same two-year cycle. Either way, it’s due within 90 days of your fiscal year end. Contact Anthem to find out what applies to your organization.