This quarterly newsletter provides recent updates and education information important to Arizona STOs.

Due Date Reminders

April 15, 2015 – Last day tax credit year 2014 contributions can be collected from donors.
May 15, 2015 – 2014 Form 990, 990-EZ, or 990-N (e-postcard) is due to be filed with the IRS for entities on a calendar year (ending December 31, 2014).
June 30, 2015 – FY 2012/13 90% funds required to be paid as scholarships or allocated to future awards for specific students.

Risk Management for Not-for-Profits

Not-for-profits' required focus on their mission can lead to these organizations lagging behind for-profit companies in the area of enterprise risk management (ERM). A recent survey showed that only 13% of not-for-profits have formal enterprise risk management processes in place, as compared to 52% of public companies. However, some not-for-profits are doing less formalized versions of risk management since it can be a good marketing tool to attract discerning donors. Bob Cummings, CPA, presented six critical factors for organizations in implementing and maintaining ERM at the AICPA Not-for-Profit Industry Conference:
  • Have a risk management governance structure;
  • Follow a risk management framework;
  • Continuously identify risk and the risk event universe;
  • Create and manage a risk profile;
  • Establish risk responses; and
  • Monitor and report.
"ERM, when it's properly implemented, will further the achievement of your business objectives," Cummings said, "and this is all about aligning your strategy to your day-to-day activities and making sure that everything going on in your organization is pursuing that strategic goal." The full article in the CGMA magazine can be found here

IRS Relief for Lost Exemptions

Tax-exempt groups that lost their exemptions for not filing 990s for three years can now apply for retroactive reinstatement on a streamlined basis. Organizations grossing less than $200,000 that failed to file Form 990-EZ or 990-N can get their exemptions back by filing Form 1023 or 1024 with the appropriate fee within 15 months of revocation. However, larger groups or ones that reapply for exemption outside the 15-month window have significantly more hoops to jump through. More details can be found at

Corporate Tax Credit Procedures

The Arizona Department of Revenue recently updated the instruction sheets for the approval process for the Low-Income and Disabled/Displaced Corporate Income Tax Credits. If your STO accepts these credits, you should download these updated implementation guides to make sure your internal process follows ADOR's most recent guidelines. This will help ensure timely processing of corporate donations. 
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