Board Member Review of Form 990

In preparation for our Roundtable Discussion this Wednesday about the IRS Form 990 I have been thinking about some common issues from this past year related to the form.

One of the questions on the IRS Form 990 is did the Board review the 990 before it was issued. Your Board may be wondering what they should do in that review process. While some of the areas may vary depending on your organization, the following list is a good starting point.

1. Review the statement of program service accomplishments. This is where your strongest story is told. Do you include service statistics and outcome measures?
2. Review the functional expense schedule looking at the % of program expenses compared to total
3. Scan questions on pp. 3, 4, and 5-do you have all the necessary policies? Review the discussion of the compensation policy in Schedule O
4. Review officers, hours per week, and related compensation
5. Read Schedule O. Is everything explained the way you want it?
6. Schedule G-for IRS purposes, these contributions related to a special event, are in the contribution section and not included with the special event revenue—so your event shows a “loss” on Schedule G
7. Review independent contractors as applicable
8. Look at Schedule L and Schedule R if these are applicable. The IRS is concerned about situations where someone with influence over the organization would be paid amounts that exceed the value of the services rendered.