Tax Class is a user-defined field that allows you to track and categorize grantee profiles based on various tax classifications, such as 501(c)(3). The 990 report in CommunitySuite will list the tax class that has been added to the grantee's profile.
Many organizations based within the United States file a Form 990 from the IRS every year and are required to provide a listing of grants and other assistance to organizations, governments, or individuals. On Form 990, organizations must list the Internal Revenue Code (IRC) Section that the receiving organizations fall under; these sections correspond to the purpose of the Tax Class field. In CommunitySuite, the Charity Description on the Charity Check Log of a grantee profile typically pulls in the IRS Subsection, which can then be useful in defining tax classes and bulk adding them to profiles.
Form 990 is only applicable to organizations based in the United States, but organizations based outside the United States can still use the tax class functionality to classify organizations and track and report on them with an additional data point.
Why Organizations Might Use Tax Class:
- Organizations might be interested in tracking private versus public foundations, religious groups, public charities, or government entities for additional segmentation and identification purposes.
- Organizations may work with school districts, local government departments, private family foundations, volunteer fire departments, or other civic or social welfare organizations, and want a reportable way to track them.
- Some organizations may have different tax categorizations that would be helpful to track in addition to 501(c)(3), like 501(c)(4) or 501(c)(6) organizations.
Charity Check Log
Users can utilize the charity check log for grantees that have passed the charity check to help define which tax classes need to be created. The Charity Description information on the log corresponds to the possible tax classes.
- Navigate to the Grantees page.
- Enter the grantee name in the Grantee field and select the grantee from the drop-down list.
- In the Details tab, locate the Grantee section and click Show Charity Log.
The Charity Check Log will display, and the Charity Description will be available.
Create a Tax Class
After defining the necessary tax classes, users can create them.
- Navigate to the Profiles page.
- Click Profile Types in the left-side menu.
- Click Add Tax Class in the left-side menu.
- Enter the name of the Tax Class, and then click Create.
- Repeat steps 3 and 4 to create as many tax classes as necessary.
Add a Tax Class to a Profile
Once tax classes have been created in the system, they can be added to profiles individually or in bulk. Only one tax class can be added to each profile.
Add a Tax Class to an Individual Profile
- Navigate to the Profiles page.
- Enter the profile name and select the profile from the drop-down list.
- In the Details tab, click Edit.
- Select the applicable tax class from the Tax Class drop-down menu, and then click Save.
Add a Tax Class to Profiles in Bulk
Users can add a tax class to profiles in bulk by using a custom profile report to filter down to profiles with the same Charity Description and adding them to a tax class.
- Navigate to the Reports page.
- Click Create Report in the left-side menu.
- Click the Profile Custom Reports Object.
- Select the applicable Profile Fields boxes, then click Save.
- Make sure Profile ID is one of the selected fields to enable bulk actions.
- Add the Charity Description field to help filter the report.
- Click Filter.
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Click the Charity Description filter.
- Enter the filter details, and then click Apply Report Filter.
- In this example, 501(c)(3) is added as a Character Value to filter down to grantees that share 501(c)(3) as a charity description, and a tax class for 501(c)(3) already exists in the system.
- In this example, 501(c)(3) is added as a Character Value to filter down to grantees that share 501(c)(3) as a charity description, and a tax class for 501(c)(3) already exists in the system.
- Click Bulk Action in the left-side menu.
- Select Add to Tax Class.
- Select the Tax Class to which the profiles will be added.
- Click Yes to confirm the bulk add.
The screenshot below is the example profile report used in the bulk add process.
Tax Class on the 990 Report
CommunitySuite's 990 Report provides a Grantees Exceeding Report that helps complete the Form 990. The tax class will populate on this report for each grantee if it has been added to the grantee's profile. The 990 report is for organizations based in the United States.