Lack of Processes Cause Non-Profits to Lose Tax Exempt Status

So here are two questions to ask -
– Has this organization filed its 990′s for the past three years?
If No or don’t know, call Schooner Group.
– Is this organization on the Revoked List?
If Yes or don’t know, call Schooner Group.

Lack of Processes Cause Non-Profits to Lose Tax Exempt Status

The IRS recently released an updated List of Organizations that are not compliant with filing an Annual Return of Exempt Organizations with the Internal Revenue Service. Pursuant to IRS requirements listed in the Pension Protection Act of 2006, 501c organizations are required to file an Annual Return of Exempt Organizations, referred to as Form 990, by the 15th of the 5th month after the closing of the fiscal year. The failure to submit this form for three consecutive years has resulted in the revocation of these organizations 501c status. The list notes the following amount of organizations in New England that were affected:
 Massachusetts – 8,400
 Maine – 1,500
 Rhode Island – 1,150
 New Hampshire – 1,600
 Vermont – 1,040
 Connecticut – 4,920

So here are two questions to ask -
- Has this organization filed its 990′s for the past three years?
If No or don’t know, call Schooner Group.
- Is this organization on the Revoked List?
If Yes or don’t know, call Schooner Group.

If you are involved with any Non-Profit organizations,regardless of the state, now would be a good time to ensure that their tax exempt status is in force. Please feel free to contact Schooner Group at 978 594-5079 to see if a Non-Profit you know of is on the current list. We have assisted several Non-Profits complete and submit the Form 1023/1024 and develop processes to file Forms 990N and Form 990 to comply with this annual IRS requirement.

Amost 8,400 Non-Profits in MA have had there tax-expemt status revoked for not filing a 990 for the past three years. SGI can assist with filing the forms to reinstate the Tax Exempt Stauts. Artie would like an introduction to the Boards to discuss.

Not All Processes Are Consistent

Are your processes documented consistently across your departments? You may think so but a closer review of your documentation may reveal otherwise. A recent client review in this area revealed some interesting aspects -
σ Not all divisions had the same level of detail
σ Where divisions crossed services, the procedures are written differently
σ Some procedures required within a division were lacking any documentation

Not only having processes in place, but more importantly having documentation of the processes is key to a successful operation. Schooner Group can assist you in the review of your processes and prepare consistent documentation of your operations across multiple divisions and business units.

Errors Are Controllable

The efficiencies of the operations significantly impact the customer service and profitability of a business. An error rate of 1-4% can be detrimental to the sustainability and viability of an organization.
In the Sunday, Sept. 11th edition of the Boston Globe, there was an article regarding the Health Inspections at the State operated pools and spray parks of the Massachusetts Department of Conservation and Recreation. The article noted that of the 175 inspections reviewed, there were issues in about 2/3rds or 66% failed inspections. Here are some of issues that can impact operations:
σ Non-Documented Programs or Procedures
σ Non-Accountability for failure to follow procedures
σ Tolerances not set properly

Systematic Controls are a vital business operation. With the correct policies and procedures for Operations, a business will be able to reduce operating costs and improve profitability. Schooner Group can assist you in the establishment of a cost effective monitoring and accountability mechanism for your business to meet this important goal.

Artie is lookinh for an introduction to Bruce Welty and Michael Johnson of Quiet Logistics in Devens, MA.

Most businesses have very good products and services, they just need some assistance with the systems to provide those products and services. Artie is looking for an introduction to Richard Karby of Total Entertainment in Danvers.

Vacation, What Is That?

Vacation is a word that can be missing from a business owner’s vocabulary.  Some business owners are hesitant to take even the slightest bit of time off fearing the worst such as :

σ      No one knows the business like they do

σ      Their customers will get mad if they take a day or two off

σ      They are too busy

σ      No one to run the business

 

But, not having time away from your business can be just as costly.  By having the proper business systems in place, an owner can spend more time working ‘on’ their business rather than ‘in’ their business.  These systems will also allow for the owner to take some deserved time off recharging their creative energies.  The owner will then be able to move the business forward with new vigor and zeal.  If it is too late for this summer, make sure your systems are in place for a well-deserved break in 2012.

Customer Service Opportunities

Have you ever called a company and when you are done with the call decided that you prefer not to do business with them?  First impressions last and customer service is the deal maker as well as a deal breaker. Here are a couple of statistics regarding customer service:

σ      For every complaint received -

σ      There are 26 unhappy customers

σ      6 with serious complaints

σ      If a company receives 5 complaints a week, there are 130 customers with unresolved issues.

σ      The average customer will complain to 10 people

σ      13% complain to 20 or more.

 Customer Services is a vital business operation.  With the correct policies and procedures for Customer Service, a business will be able to retain and increase sales opportunities.   Schooner Group can assist you in the establishment of a cost effective monitoring and accountability mechanism for customer service to ensure your business meets this important goal.

North Shore Community Action Program, Inc. just went through a State Audit that found, among other things, “there doesn’t appear to be a clear written plan” for tracking expenses and “did not have a formal bidding process”. Artie would like an introduction to Exec. Dir. Beth Hogan or Board President Stephen Mott.