A couple of years ago we acquired a non-profit organization middle management group return. Their bookkeeping system (if that) is as old the leather bound gold embossed big green book that they post their expenses and income in. It took dozens of hours of meetings with the Quartermaster to figure out what the expenses were for and how to organize the income and expenses for proper NP treatment on the return. The following year they came back again with the same green book. This time I didn't have the stomach to put the transactions in order and we passed the job on to a bookkeeper. Unfortunately she didn't understand what I needed and attempted to prepare the return with her work. After several months I got the detail that I could sort and shuffle and mark off to prepare the return. By this time it was late and the NP is being fined about $2000 for late filing. They have never filed before the previous year. This year their bookkeeping is just as bad if not worse. The categories and activities have changed. Once again the bookkeeper has entered the data and I have to sort it out. There is no way the big green book is going to be useful in preparing a 990. You might as well throw all the transactions into the air and sort them out that way. Is there any way we can get the NP out of the penalty? Their hierarchy requires them to use the bookkeeping system from the 1920's although without green eyeshades, quill pens and winged collars. The only hope for future years is that their new Quartermaster is a CPA and is willing to use a computer. I am meeting with him this week before he assumes office to set up proper bookkeeping for our purposes. Linda Dorfmont E.A., CFP, CSA
- posted
17 years ago