Freed Maxick Blog Nonprofit Accounting: What Not-for-Profit Organizations Need to Know about Financial Reviews | Freed Maxick

Understand the nuances of financial reviews It’s common knowledge in the not-for-profit (NFP) world that Section 501(c)(3) of the Internal Revenue Code (IRC) establishes that a not-for-profit organization that meets certain criteria is recognized by the IRS as having tax-exempt status. As a result, the organization is precluded from paying tax at the federal, state, or local level on any net income or profit.