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TrimnerBeckham, PLLC

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TrimnerBeckham, PLLC

With 46 years of combined experience, the team at TrimnerBeckham is your trusted partner in providing expert tax services for nonprofit organizations.

With 46 years of combined experience, TrimnerBeckham provides trusted nonprofit tax and compliance services, supporting associations, public charities, and foundations through Form 990, exemption, and IRS matters. We specialize in assisting trade associations, public charities, and private foundations. Whether you’re launching a new nonprofit, filing your annual tax return, reinstating a lost exemption, or navigating an IRS examination, our dedicated tax advisors are ready to support you. We take the time to understand your unique needs and will implement clear, effective solutions that alleviate your tax-related concerns, allowing you to focus on what truly matters, your mission and impact.

09/22/2026

Receiving tax-exempt status is an important milestone, but it isn’t the end of the compliance journey.

Nonprofits have ongoing responsibilities year-round, from annual filings and recordkeeping to staying compliant as the organization grows and changes.

Good compliance isn’t something to think about only when Form 990 is due. It should be part of how your organization operates year-round.

At TrimnerBeckham, we work alongside nonprofits at every stage of their journey, helping them understand and navigate their tax and compliance responsibilities.

09/02/2026

Thinking about starting a public charity?

Before you file any paperwork, it’s important to fully understand what you’re creating.

A 501(c)(3) organization isn’t just a business that doesn’t pay income tax; it is a distinct legal entity that must be organized and operated for specific exempt purposes. Obtaining recognition from the IRS is only one part of the process.

Here are a few key points to consider before getting started:

• What is the charitable purpose? Be specific. While stating “helping the community” expresses your intention, you need to clearly define what the organization will do, who it will serve, and how its activities fulfill a charitable purpose.
• Who will govern the organization? A nonprofit isn’t your personal business. Decisions should be made in the best interest of the organization, so having a proper governance structure is essential.
• How will it be funded? Consider various funding sources like donations, grants, program fees, sponsorships, and membership dues. Each of these can have different tax implications and reporting requirements.
• How will the organization operate? Think beyond just the initial event or program. Identify who will handle accounting, maintain records, and prepare the necessary federal and state filings.
• Do you actually need to create a new organization? Sometimes, you can achieve your mission by collaborating with an existing nonprofit or through a fiscal sponsorship instead of starting a new standalone entity.

Keep in mind that receiving 501(c)(3) status is not the end of the journey.
Public charities have ongoing responsibilities for federal and state filing, recordkeeping, governance, and compliance. Neglecting these obligations can lead to issues long after your exemption application is approved.

Starting with the right structure and understanding the associated responsibilities can save you a lot of time and frustration in the future.

08/27/2026

Not all tax work is the same, and not every tax professional specializes in the same areas.

When seeking tax assistance, it's essential to find a trusted tax professional with experience in the specific area you need. Tax is a broad field, and a professional who primarily handles individual income tax returns may not regularly deal with nonprofit tax matters. Similarly, someone who specializes in corporate or partnership taxation may have a very different expertise. Even among CPAs, EAs, and attorneys, the levels of experience and areas of practice can vary significantly.

For nonprofits, specialized experience is particularly important. Tax-exempt organizations have unique filing requirements, reporting rules, governance disclosures, public support considerations, unrelated business income issues, and compliance obligations. Depending on your situation, you may need someone who regularly works with Form 990 filings, exemption applications, reinstating tax-exempt status, IRS examinations, or other nonprofit tax compliance matters, rather than just a professional who prepares tax returns.

Always take the time to verify credentials. If someone claims to be a CPA, you can search for their CPA license through the NASBA Accountancy Licensee Database (ALD) at https://ald.nasba.org/search/cpa. You can search by name and review the available licensing information before deciding whom to work with.

Choosing a tax professional should not be based solely on credentials. Inquire about their experience, whether they regularly work with taxpayers or organizations similar to yours, and ask specific questions about the services you need.

While a credential provides insight into a professional's qualifications, relevant experience helps determine whether they are the right fit for your particular needs.

08/25/2026

My Favorite Office Perk ☕

Not every reason to come into the office has to be serious. 😂

This coffee machine might be one of my favorites, especially with all those choices!

A fresh cup of coffee, my TrimnerBeckham tumbler, and I’m ready to settle in and get to work.

Sometimes it really is the little things that make an office day better. ☕️

08/20/2026

Nonprofit tax season is coming. Is your organization ready?

Before the busy tax filing season begins, take some time to organize and prepare the information your tax preparer will need.

Start by reviewing your financial records. Ensure that your books for the filing year are complete and reconciled. Gather information related to contributions, grants, and restricted funds.

Additionally, make sure you have the necessary information for board members, officers, and key employees who served during the tax year in question.

If your organization experienced any significant changes during the year, such as new programs or activities, major transactions, foreign activities, leadership changes, or structural modifications, be sure to note those as well, as they may impact your tax and reporting obligations.

By getting organized early, you can reduce the number of information requests, minimize last-minute questions, and create a more efficient filing process for everyone involved.

If you're uncertain about what your organization should be gathering, TrimnerBeckham is here to assist you.

Your Mission is Our Passion.

08/18/2026

Nonprofit busy season will be here before we know it, and we’re getting ready to help our clients navigate another year of tax compliance with confidence.

At TrimnerBeckham, PLLC, nonprofit tax compliance and consulting isn’t just one of the services we offer; it’s what we do.

We work with nonprofit organizations throughout every stage of their journey:

• Create a New Nonprofit - from formation through federal and state tax-exempt applications

• Prepare Your Tax Returns - including Forms 990, 990-PF, 990-T, 990-EZ, state returns, international filings, and more

• Get Reinstated After Revocation - helping organizations navigate the appropriate path back to tax-exempt status

• Answer Your Tax Questions - providing practical, straightforward guidance on the tax issues nonprofits encounter along the way

Whether you’re starting a new organization, preparing for another filing season, working through a compliance issue, or simply have a tax question you need answered, our team is here to help.

We know you have a mission to focus on. Our job is to help make the tax side a little easier to navigate.

Your Mission is Our Passion.

04/23/2026

Nonprofit Tax Risk & Strategy Series (Part 4): Related Party Transactions: How to Structure Them Properly

Transactions involving insiders are a common and necessary part of operating a nonprofit organization.
However, they are also one of the most closely reviewed areas by the IRS.
These transactions are not prohibited—but they must be properly structured, approved, documented, and disclosed to avoid compliance risk.

📊 What Is a Related Party Transaction?
A related party transaction generally involves an individual or entity that has a close relationship with the organization.
This may include:
• Officers and directors
• Key employees
• Family members of insiders
• Businesses owned or controlled by insiders
These relationships are disclosed on Form 990, including Schedule L, and may also affect other sections of the return.

🔹 Why the IRS Focuses on These Transactions
The IRS reviews related party transactions to ensure that the organization is not providing improper private benefit.
Even when transactions are legitimate, the IRS evaluates whether they:
• Are conducted at fair market value
• Serve the best interest of the organization
• Are approved through an independent process
• Are fully disclosed
In many cases, the issue is not the transaction itself—but the lack of transparency or documentation.

🔹 Common Areas of Risk
Business Transactions with Insiders
Payments to companies owned or controlled by insiders are common—but highly scrutinized.
Examples include:
• Consulting or advisory services
• Vendor contracts
• Professional services
These arrangements must be at arm’s length and supported by appropriate documentation.

Loans to or from Insiders
Loans involving insiders can raise concerns, particularly if:
• Terms are not clearly documented
• Interest rates are below market
• Repayment terms are unclear
All loan arrangements should be formalized and consistently applied.

Leases and Property Arrangements
Leasing office space, equipment, or other assets from insiders must reflect fair market value.
Informal arrangements or preferential terms can create compliance risk.

Transactions Involving Family Members
Transactions with family members of insiders are also subject to scrutiny.
These relationships may not always be obvious but must be identified and evaluated for disclosure purposes.

Incomplete or Missing Disclosures
One of the most common issues is failing to properly disclose related party transactions on Form 990.
This includes:
• Omitting transactions from Schedule L
• Providing incomplete information
• Inconsistent reporting across the return
Because Form 990 is publicly available, incomplete disclosures can raise questions even when transactions are appropriate.

📌 The Most Common Issue: Lack of Structure
Many organizations do not have a formal process for identifying and managing related party transactions.
As a result:
• Transactions may not be flagged early
• Documentation may be incomplete
• Disclosures may be inconsistent
The issue is often not the transaction itself—but the absence of a clear process and oversight.

📊 How to Structure Related Party Transactions Properly
Organizations can reduce risk by implementing structured procedures:
• Identify related parties in advance through conflict of interest disclosures
• Ensure transactions are evaluated at fair market value
• Obtain approval from disinterested board members
• Document how terms were determined (including comparability data)
• Ensure accurate and complete disclosure on Form 990
A proactive approach is key.

📊 Why This Matters
Related party transactions are visible not only to the IRS, but also to:
• Donors and grantors
• Regulators
• Charity watchdog organizations
Improperly structured or disclosed transactions can lead to:
• Increased IRS scrutiny
• Questions about governance practices
• Potential excise taxes in certain cases
• Reputational risk

📌 Final Thought
Related party transactions are not inherently problematic—but they are highly visible and closely reviewed.
When structured, documented, and disclosed properly, they can be managed effectively without creating compliance risk.
The key is not avoiding these transactions—but handling them with transparency and oversight.

🔜 In Part 5, we’ll focus on:
Governance & internal controls—and what your Form 990 reveals about your organization

04/21/2026

Nonprofit Tax Risk & Strategy Series (Part 3): Compensation & Private Benefit: What the IRS Really Looks For

Compensation is one of the most sensitive areas of nonprofit tax compliance—and one of the most frequently reviewed by the IRS.
While nonprofit organizations are permitted to compensate their leaders and staff, that compensation must be reasonable, properly structured, and well-documented.
When it is not, it can raise concerns about private benefit and excess benefit transactions, both of which carry significant compliance risk.

📊 The Core Principle: No Private Benefit
Tax-exempt organizations must operate for a public purpose—not private interests.
This means that no part of the organization’s net earnings can improperly benefit insiders, including:
• Officers
• Directors
• Key employees
• Individuals with substantial influence
This concept is commonly referred to as private inurement.
Even unintentional violations can trigger IRS scrutiny.

🔹 What the IRS Evaluates
The IRS looks beyond the amount of compensation and evaluates whether it is:
• Reasonable for the services provided
• Determined through an independent process
• Supported by appropriate documentation
Compensation includes more than salary. It may also involve:
• Bonuses
• Deferred compensation
• Fringe benefits
• Use of organizational assets
All forms of compensation must be considered together.

🔹 Common Areas of Risk
Excessive Compensation
Compensation that exceeds what would be paid for similar services in comparable organizations may be treated as an excess benefit transaction.
This can result in excise taxes and corrective actions.

Lack of Independent Approval
Compensation decisions should be made by individuals who are independent and free of conflicts of interest.
When insiders participate in setting their own compensation, it raises concerns about objectivity.

Limited or No Documentation
Even reasonable compensation can create risk if there is no documentation to support it.
The IRS expects to see:
• Board or committee approval
• Use of comparability data
• Written records of the decision

Unreported Benefits
Compensation is not limited to salary.
It may include:
• Housing allowances
• Expense reimbursements
• Personal use of organizational assets
Failure to properly report these benefits can lead to incomplete disclosures on Form 990.

Informal Arrangements
Handshake agreements or informal arrangements can create significant risk.
All compensation and benefit arrangements should be:
• Clearly defined
• Properly documented
• Reviewed periodically

📌 The Most Important Concept: Process Matters
One of the most important concepts in this area is the rebuttable presumption of reasonableness.
An organization can strengthen its position by demonstrating that compensation was approved through a structured process that includes:
• Independent decision-makers
• Use of appropriate comparability data
• Contemporaneous documentation
The IRS evaluates not only the outcome, but also how the decision was made.

📊 Why This Matters
Issues related to compensation and private benefit can lead to:
• Excise taxes on excess benefit transactions
• Required correction of payments
• Increased IRS scrutiny
• Reputational risk
Because compensation is disclosed on Form 990, it is also subject to public review.

📊 A Practical Approach
Organizations can reduce risk by:
• Establishing formal compensation review procedures
• Using independent data to benchmark compensation
• Ensuring decisions are made by disinterested board members
• Documenting all approvals and supporting data
• Reviewing compensation arrangements regularly
A structured and well-documented process is essential.

📌 Final Thought
Compensation is not just about how much is paid—it is about how decisions are made.
Even well-intentioned arrangements can create risk if they are not properly structured, documented, and disclosed.
A thoughtful, well-documented approach helps protect both the organization and its mission.

🔜 In Part 4, we’ll explore another area of IRS focus:
Related party transactions—and how to structure them properly.

04/16/2026

Nonprofit Tax Risk & Strategy Series (Part 2): UBI vs. Mission Income: Where Nonprofits Get It Wrong

One of the most misunderstood areas of nonprofit taxation is the distinction between mission-related income and unrelated business income (UBI).
Many organizations assume that all revenue they generate is tax-exempt.
That is not always the case.
Even organizations with a clear charitable mission can generate taxable income if certain activities are not properly structured or evaluated.
Understanding this distinction is critical to maintaining compliance and avoiding unexpected tax exposure.

📊 What Is Unrelated Business Income?
Unrelated business income generally arises from a trade or business that is:
1. Regularly carried on, and
2. Not substantially related to the organization’s exempt purpose
All three elements must be present for income to be considered UBI.
The key question is not whether the activity generates revenue—but whether it furthers the organization’s mission.

🔹 Where Organizations Often Get It Wrong
Assuming All Revenue Is Tax-Exempt
Many nonprofits believe that because they are tax-exempt, all income is tax-exempt.
However, tax-exempt status applies to the organization’s purpose—not all of its activities.
Revenue that does not further the mission may be subject to tax.

Misunderstanding Sponsorship vs. Advertising
One of the most common areas of confusion is the difference between:
• Qualified sponsorship payments (generally not taxable)
• Advertising income (often taxable)
If a sponsor receives substantial return benefits—such as promotional services, endorsements, or advertising—the income may be treated as UBI.

Fee-for-Service Activities
Providing services for a fee can create UBI if the activity is not substantially related to the organization’s exempt purpose.
For example:
• Selling services to the general public
• Operating programs that resemble commercial businesses
The analysis depends on how closely the activity aligns with the mission.

Use of Organizational Assets
Income generated from assets—such as rental income or intellectual property—may or may not be taxable depending on the structure of the arrangement.
Certain exclusions may apply, but not all income is automatically exempt.

Ignoring “Regularly Carried On”
An activity must be regularly carried on to be considered UBI.
Occasional or infrequent activities may not trigger UBI, while ongoing or continuous activities are more likely to be treated as a trade or business.

📌 The Most Common Issue: Lack of Analysis
Many organizations do not formally evaluate their revenue streams.
As a result:
• Activities are not classified properly
• Potential UBI is not identified
• Required filings may be missed
UBI is often not discovered until the organization is preparing its tax return—or worse, during an audit.

📊 Why This Matters
If an organization has unrelated business income, it may be required to file Form 990-T and pay tax on that income.
More importantly, excessive unrelated activities may raise questions about whether the organization is operating primarily for its exempt purpose.

📊 A Practical Approach
Organizations can reduce risk by:
• Reviewing revenue streams annually
• Evaluating whether activities further the exempt purpose
• Distinguishing between sponsorship and advertising
• Monitoring activities that are regularly carried on
• Consulting advisors when new revenue streams are introduced
Proactive analysis helps ensure that income is properly classified and reported.

📌 Final Thought
Not all revenue is created equal.
Two organizations may generate the same income—but the tax treatment can differ significantly depending on how the activity is structured and how it relates to the organization’s mission.
Understanding the distinction between mission income and unrelated business income is essential to maintaining compliance and protecting tax-exempt status.

🔜 In Part 3, we’ll explore another key area of IRS focus:
Compensation and private benefit—and what the IRS really looks for.

04/14/2026

Nonprofit Tax Risk & Strategy Series (Part 1): Are You at Risk? The Hidden Tax Risks Nonprofits Overlook

Many nonprofit organizations believe they are compliant because they file their annual Form 990 on time.
But compliance goes far beyond filing.
In practice, most IRS issues arise not from missed deadlines—but from misunderstood rules, incomplete processes, and undocumented decisions.
The reality is that many organizations are exposed to risk without realizing it.

📊 Compliance vs. Risk
Filing your Form 990 is only one part of compliance.
The IRS evaluates whether an organization is:
• Operating in furtherance of its exempt purpose
• Avoiding private benefit
• Maintaining proper governance and oversight
• Reporting activities accurately and consistently
An organization can file on time—and still face significant compliance risks.

🔹 Common Hidden Risks
Unrelated Business Activities
Many organizations generate revenue through activities that may not be substantially related to their mission.
Examples include:
• Advertising income
• Sponsorship arrangements
• Fee-for-service programs
Not all revenue is treated the same for tax purposes.

Compensation and Private Benefit
Payments to officers, directors, or related parties must be reasonable and properly documented.
Even well-intentioned arrangements can raise concerns if:
• Compensation is not benchmarked
• Decisions are not independently approved
• Documentation is limited

Related Party Transactions
Transactions involving insiders are not prohibited—but they are closely scrutinized.
These transactions must be:
• At fair market value
• Properly approved
• Fully disclosed on Form 990

Governance and Oversight
The IRS uses Form 990 to evaluate governance practices, including:
• Board independence
• Conflict of interest policies
• Documentation of decisions
Weak governance structures can signal broader compliance issues.

Filing and Reporting Gaps
Beyond Form 990, nonprofits have additional filing obligations, including:
• Form 990-T for unrelated business income
• Payroll tax filings
• Information returns such as Forms 1099
Missing or incomplete filings may indicate systemic issues.

📌 The Most Common Issue: Lack of Structure
Many organizations do not have a formal compliance framework.
As a result:
• Responsibilities are unclear
• Processes are inconsistent
• Documentation is incomplete
This often leads to reactive compliance—addressing issues only when they arise.

📊 A Practical Perspective
Strong organizations treat compliance as an ongoing process—not a once-a-year requirement.
This includes:
• Regular review of activities and revenue streams
• Clear governance and approval processes
• Proper documentation of key decisions
• Coordination between leadership, finance, and advisors

📌 Why This Matters
Compliance risks can lead to:
• IRS inquiries or audits
• Financial penalties
• Reputational concerns
• Potential loss of tax-exempt status
Many of these risks are preventable with proper structure and oversight.

📌 Final Thought
Most nonprofit risks are not obvious.
They arise from everyday decisions—how revenue is earned, how compensation is set, and how transactions are structured.
Understanding these risks is the first step toward protecting your organization and its mission.

🔜 In Part 2, we’ll take a closer look at one of the most misunderstood areas of nonprofit taxation:
Unrelated Business Income (UBI) vs. mission-related revenue

Address

1750 Tysons Boulevard, Suite 1500
McLean, VA
22102

Opening Hours

Monday	8:30am - 5pm
Tuesday	8:30am - 5pm
Wednesday	8:30am - 5pm
Thursday	8:30am - 5pm
Friday	8:30am - 5pm

Telephone

(703) 663-1756

Website

https://trimnerbeckham.com/, https://www.linkedin.com/company/trimnerbeckham

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