Best all-in-one accounting software for nonprofit organizations
All-in-one finance platform for accounting, bookkeeping, taxes and payroll for nonprofit organizations
Why nonprofits love mesha
Hours saved on accounting, bookkeeping and financial admin tasks
saved on bookkeeping and tax fees
accurate financial insights
Financial powerhouse for your nonprofit organization
Intelligent accounting software for modern nonprofits
Supercharge your nonprofit’s growth and close your books 3X faster
Specialized Bookkeeping Solutions for Nonprofits
Managing a nonprofit organization involves a set of financial intricacies that are distinct from traditional businesses. Our tailored accounting and bookkeeping services are expertly crafted to meet the specific financial requirements of nonprofit organizations, whether you're a grassroots initiative or part of a larger nonprofit enterprise. We have a deep understanding of the unique financial challenges you face and the specialized tools and expertise required to handle them with precision and efficiency.
Trusted tax management and filing for nonprofit organizations
Tax Management Software
  • Automated tax calculation for sales, payroll and federal
  • Reminders on taxes and compliance filing
  • Tax ready reports with P&L, expenses and balance sheets
Tax Prep and Filing
  • Instant access to top tax consultants for nonprofit organizations
  • Proficient counsel on nonprofit specific tax frameworks and tax-efficient strategies
  • Minimizing tax liabilities and maximizing deductions
  • Stay up to date on dynamic tax laws and regulations impacting nonprofit organizations

Tax related FAQs for nonprofit organizations

Do nonprofit organizations have to pay taxes?

Nonprofit organizations, if properly organized and operated, can be exempt from federal income taxes. This exemption typically falls under section 501(c)(3) of the Internal Revenue Code. However, nonprofits may still be liable for certain state and local taxes, such as property taxes or sales taxes, depending on the specific laws of their jurisdiction. It's crucial for nonprofits to maintain their tax-exempt status by complying with IRS regulations and state tax laws

To obtain tax-exempt status, nonprofits must apply for recognition as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. This typically involves filing Form 1023 or Form 1023-EZ with the IRS. Organizations must provide detailed information about their mission, activities, governance structure, and financial operations. The IRS reviews these applications to ensure they meet the requirements for tax-exempt status, which generally includes serving a charitable, educational, or religious purpose and not providing excessive private benefits.

Unrelated business income is income generated from activities that are not substantially related to a nonprofit's tax-exempt purpose. Nonprofits may be subject to unrelated business income tax (UBIT) on such income. To maintain tax-exempt status, nonprofits must carefully manage unrelated business income and ensure that it remains a relatively small portion of their overall revenue. UBIT is calculated based on the net income generated from unrelated business activities.

Donations to 501(c)(3) nonprofits are generally tax-deductible for individual donors. Nonprofits must provide donors with proper acknowledgment and receipts to substantiate their charitable contributions. These acknowledgments must include specific information, such as the amount of the donation and a statement that the organization is tax-exempt. Nonprofits should also maintain accurate records of donations and their use for transparency and compliance with IRS regulations.

Yes, nonprofits are required to file annual information returns with the IRS, such as Form 990 or Form 990-EZ. These returns provide financial and operational information about the organization, including details about revenue, expenses, and governance. Failure to file these returns can result in penalties and, ultimately, the loss of tax-exempt status. State and local governments may also have reporting requirements that nonprofits must adhere to.

If a nonprofit loses its tax-exempt status, it may become subject to federal income taxes on its earnings. Additionally, donors may not be able to deduct contributions made to the organization, which can significantly impact fundraising efforts. To regain tax-exempt status, nonprofits must address the issues that led to its loss and reapply with the IRS or relevant state authorities, depending on the circumstances. It's essential to take corrective action promptly to restore the organization's tax-exempt status.

Making payroll painless for nonprofit organizations

Our comprehensive payroll features help make payroll management super simple.

Stay compliant with mesha
  • Off Cycle payroll and flexible payment schedules

  • Next day direct deposit

  • Payroll Deductions and Garnishments

  • Overtime and reimbursement calculations

  • Payroll and taxes across multiple states

  • Payroll for FTEs, contractors and freelancers

Payroll taxes and compliance

We take care of taxes and compliance to adhere to the local regulations and government declarations.

Stay compliant with mesha
  • Automated tax calculation

  • Tax filing and reporting

  • Tax codes and regulation updates

  • Multi jurisdiction compliance

  • Tax liability tracking

  • Work Classification Compliance

  • SUI Reporting

  • Wage Garnishments and Deductions

Want to start a nonprofit organization, but don’t know how to go about it?
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