Not-for-Profit Board Member Liability

Non-profits don’t pay tax, do they? Sure they do, just not income taxes. A non-profit might employ workers, incurring payroll taxes, or own property, incurring property taxes, or if they sell something, there may be a sales tax. If the non-profit fails to properly account for and pay these taxes, board members can become liable for the taxes and penalties due and owing.

If you sit on the board of a non-profit, it might be a good idea to give me a call so that we can look over the books to ensure total compliance with tax laws. You don’t want to get the letter from IRS alleging your responsibility for payment of taxes which you didn’t even know existed!