Form 990s, the public support test, grant reporting requirements — we handle the accounting and compliance work that lets your board focus on the mission instead of the paperwork.
Running a 501(c)(3) means navigating compliance requirements most board members and even most general bookkeepers were never trained on: the right Form 990 tier for your size, a public support test that can quietly shift your status if a single large grant lands at the wrong time, and unrelated business income rules that catch organizations doing perfectly normal fundraising. Most CPA firms treat nonprofit work as a side service. We treat it as a specialty.
At Mercer Flanagan, we've worked with charitable nonprofits in Frederick and surrounding counties for over 50 years. We know which Form 990 tier applies to you. We know how to monitor your public support test. And we're here year-round — not just at filing deadline.
"The nonprofits that come to us mid-year usually have the same gap: nobody's been watching the public support test, and a board member is surprised to learn that a single concentrated grant could put their public charity status at risk. This is something we check every year, not something we wait for the IRS to flag."
We work with:
These are the situations we hear about most often from new nonprofit clients.
Gross receipts include everything coming in before expenses, which many organizations underestimate, leading them to file the wrong tier of Form 990. We confirm the right form based on your actual numbers each year.
A single large grant or donor concentrated in one year can put your public charity status at risk if nobody's tracking the test over its rolling measurement period. We monitor this proactively, not reactively.
Renting out space regularly, running a public-facing retail operation, or other ongoing commercial activity can trigger UBIT even at a charitable organization. We help identify this before it becomes a filing surprise.
Maryland requires a financial review at $300,000 in contributions and a full audit at $750,000. These thresholds catch organizations by surprise after a strong fundraising year. We flag this before it's a last-minute scramble.
Restricted grant funds need to be tracked separately from general operating funds, both for accurate reporting back to funders and for your own board's understanding of available cash.
Donations of $250 or more require a written acknowledgment letter, and missing this puts your donors' deductions at risk. We help set up a system so this happens automatically.
Your filing requirement depends on gross receipts and total assets — and getting the tier wrong is one of the most common nonprofit filing mistakes. Here's how the tiers break down.
| Form | Gross Receipts | Total Assets | Complexity |
|---|---|---|---|
| Form 990-N | $50,000 or less | Not applicable | Lowest — online e-postcard |
| Form 990-EZ | Under $200,000 | Under $500,000 | Moderate |
| Full Form 990 | $200,000 or more | $500,000 or more | High — 12 pages plus schedules |
Missing three consecutive years of required filings, even the simple 990-N, results in automatic revocation of tax-exempt status. Read our full Form 990 Filing Guide →
We confirm the correct filing tier based on your actual gross receipts and assets, and prepare your Form 990-N, 990-EZ, or full Form 990 accordingly.
Nonprofit Tax & Bookkeeping →We track your public support percentage over its rolling measurement period so a concentrated grant or donor doesn't put your public charity status at risk without warning.
We help identify activities that may generate unrelated business income, and prepare Form 990-T when required, so this doesn't surface as a surprise during a filing or audit.
We prepare the financial review or compilation your board, funders, or Maryland's charitable solicitation requirements call for, including full audits when your organization crosses the relevant threshold.
Financial Statement Compilations →We set up fund accounting that tracks restricted grant dollars separately from general operating funds, so your reporting to funders and your board's own visibility are both accurate.
Clean, current books your board and treasurer can rely on, with QuickBooks setup and training built specifically around nonprofit fund accounting needs.
QuickBooks Support & Training →These are the recurring compliance areas that matter most for charitable organizations, beyond the annual Form 990 itself.
Compliance requirements always depend on your organization's specific size, activities, and funding sources. We help confirm what applies to you and make sure it's documented properly so it holds up if reviewed.
Most accounting firms treat nonprofit work as a side service. We built ours around it. You won't be handed off to a junior associate, and you won't wait three weeks for a call back when your board needs an answer. You get a CPA who knows your organization and your mission.
Year Mercer Flanagan was founded in Frederick, MD
Years serving local nonprofits, businesses & professionals
Rated by clients across Frederick County
Access to your CPA — not just at filing deadline
Year-round access to your CPA. Questions get answered when your board has them, not weeks later.
We actively seek out nonprofit work most firms avoid, and we've done it for decades.
We're based in Frederick, MD. We know this community and we're not going anywhere.
We don't just file your 990. We watch for the issues that could put your status at risk.
Book a free 20-minute consultation. We'll tell you honestly whether we can help — and what it would cost. No pressure, no obligation.
Book a Free Consultation