Reminder Regarding SID/BID End of Year Requirements

The deadlines are near for statutory and IRS required reports of non-profit district management corporations operating on a calendar year basis.

Annual reports to the municipal governing body should have been filed by the end of January.

The annual audit required by N.J.S.A. 40:56-88 is due April 30 , and the New Jersey Charitable Organization Registration Renewal (CRI-200) is due June 30. IRS form 990’s are due May 15. Most district management corporations fulfill all of these requirements somewhat simultaneously as typically the accountant conducting the audit also completes the CRI-200 and IRS-990.

A few considerations to keep in mind. Take responsibility for filing the audit with your municipality and the Department of Community Affairs yourself. Delivering it to the municipal clerk and mayor and council members with a cover letter provides you an opportunity to ensure that they are all aware that you are carrying out this accountability practice and reinforces your professional management. Jef Buehler, our liaison with the Department of Community Affairs advises that it is best to send him
your audit as an electronic file. His email is
jbuehler@DCA.state.nj.us.

On the IRS-990, if you haven’t in the past, be sure you can answer yes to the questions about whether or not your organization has conflict of interest, record retention, and whistleblower policies. If you don’t have these policies in place, let us know (info@downtownnj.com) and we can send you sample policies. Your accountant should also be able to provide them. AND, be sure that your 990 is reviewed by your board of trustees/directors before filing it. That is an IRS requirement.

There is a further benefit to these end-of-year requirements. By adhering to the practices you need to throughout the year in order to meet these reporting requirements, and then fulfilling the reporting requirements, you are able to point to a high standard of fiscal accountability to which you are adhering.