Midwood
Nonprofit accounting in Midwood, Brooklyn
Midwood has a dense network of congregational and educational organizations, most of them volunteer run.
What you get
- Form 990, 990-EZ and 990-N
- Unrelated business income on Form 990-T
- Restricted and unrestricted funds tracked
- Reporting a board can read
The MyCleverCPA team
- 25+ years in regulated finance, compliance and audit
- Tax work led by a CPA. Jillian Sinel holds the CPA and the CAA
- Brooklyn Office at 1684 E 18th St, Brooklyn, NY 11229
In Midwood
Nonprofit accounting for Midwood
The recurring problem is not fraud. It is that one person holds every financial role, and the board has no way to show otherwise if a funder or an examiner asks.
Separation of duties on a team of three is a practical question rather than a theoretical one, and there are versions of it that work without hiring anybody.
Scope
What is included in nonprofit
The same work wherever you are. Scoped to what you actually need.
Annual filings
- Form 990, 990-EZ and 990-N
- Form 990-T for unrelated business income
- New York State charities filings
Fund accounting
- Restricted and unrestricted fund tracking
- Grant and program reporting
- Costs allocated across program, administration and fundraising
Governance and controls
- Internal controls for volunteer-run finance
- Separation of duties on a small team
- Documentation a board can actually review
Setting one up
- Entity formation and the exemption application
- A chart of accounts built to produce a 990
- The written policies the 990 asks whether you have
What this covers
- Form 990, 990-EZ and 990-N
- Form 990-T for unrelated business income
- Annual reporting and regulatory filings
- Nonprofit structuring and entity setup
- Bookkeeping and fund accounting
- Board and management reporting
- Restricted and unrestricted fund tracking
- Internal controls for volunteer-run finance
Local tax
What Midwood filers actually run into
The Unincorporated Business Tax is the one most Avenue J businesses have not heard of until they cross into it. It applies at 4% on income allocated to New York City, the filing threshold is gross business income above $95,000, and there is a $5,000 exemption against net income. The part worth knowing is the credit: where the tax works out at $3,400 or less it is eliminated completely, phasing out by $5,400. Most businesses at this scale owe nothing, but they still have to establish that.
Foreign reporting matters here more than in most of New York. The community district is 43.4% foreign born, and that reliably means foreign accounts, foreign pensions and ITIN filers. FBAR and Form 8938 penalties are disproportionate to the effort of filing, so it is worth checking even when you think you are under the line.
Midwood is MCTMT Zone 1, where the self employment rate is 0.60%. The threshold was $50,000 for 2025 and earlier and rises to $150,000 from 2026.
How it works
How nonprofit runs
Four stages. Most of the value sits in the first two, before anything is filed.
Check the filing history
Which 990 was filed, when, and whether exempt status is still intact.
Straighten the records
Funds separated, allocations documented and balances reconciled.
Prepare the return
The 990 and anything it brings with it, including the 990-T.
Report to the board
Statements and a 990 the board can read without a translator.
Questions
Frequently asked questions
I run a small shop on Avenue J. Do I owe the Unincorporated Business Tax?
Only if gross business income passes $95,000, and even then the credit usually wipes it out at that scale. The return still has to be prepared to show it. Partnerships and sole proprietorships are in scope; S corporations are not, because they fall under the Business Corporation Tax instead.
I have a bank account overseas. Does it have to be reported?
Very likely. FBAR reporting is triggered by the aggregate balance across all foreign accounts, not by any one of them, and it catches accounts people think of as dormant or family held. It is a disclosure form rather than a tax, so the cost of filing is low and the cost of not filing is not.
Do you speak to clients in languages other than English?
Tell us what you need when you book and we will arrange the meeting accordingly.
What happens if we missed a 990?
Three consecutive missed years revokes exempt status automatically. One missed year is fixable and worth fixing immediately. If status has already been revoked, reinstatement is possible but it is a longer road.
Which 990 do we file?
It depends on gross receipts and total assets. Small organizations may only need the 990-N, which is short. We would rather confirm the threshold than have you file the wrong one.
Can you help us set up a new nonprofit?
Yes, on the structuring and accounting side, working with whoever handles the legal formation and the exemption application.
Also in Midwood
Our other services here
Tax preparation and planning
Most Midwood returns we prepare carry business income on a Schedule C.
Tax preparation and planning in MidwoodBookkeeping and accounting
Avenue J runs on inventory and cash. Coney Island Avenue runs on jobs and parts.
Bookkeeping and accounting in MidwoodTrust and estate tax
The usual Midwood estate includes a house held for decades and a business nobody has valued.
Trust and estate tax in MidwoodIRS representation
The notices that arrive on Avenue J are usually about unreported income or a city filing nobody knew was due.
IRS representation in MidwoodTalk to us about nonprofit in Midwood
Book a time online, or call the Brooklyn office directly.
Nearest office
Brooklyn Office
1684 E 18th St, Brooklyn, NY 11229
Phone
Office hours
Sunday to Friday, 11am to 8pm Eastern.
Closed Saturday.