This past Wednesday we had our roundtable on the new Form 990. Most of our attendees were looking at filing the Form 990 for the first time this year. Some of the items we talked about:
• Making sure that the mission description on page 1 and the program descriptions on page 2 fit within the space provided so that the reader of the Form 990 can readily access that information and does not have to turn back to the Schedule O.
• Several of the participants noted that they received contributions from donors who found them on Guidestar, emphasizing the importance of putting your best foot forward with your Form 990
• Reviewing the necessary policies-document destruction, whistleblower, conflict of interest, Form 990 review procedures, compensation setting, gift policy
• Noting that key employees are those with significant management responsibility who also receive more than $150,000
• Compensation reporting also health benefits, the deferral of income-including pension and other retirement pay
• Discussed functional expenses and the importance of reviewing your allocations
• The effect of contributions from special events on the special event income
A few of the nonprofits who do not have to file the new 990 yet, said that they would probably file it instead of the Form 990-EZ because they wanted the extended information available to their stakeholders. Those who had already filed the new form 990 agreed. They noted that even though it was a lot of work to put together, they wanted the information presented.
Showing posts with label IRS form 990. Show all posts
Showing posts with label IRS form 990. Show all posts
Thursday, March 4, 2010
Monday, February 22, 2010
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.
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.
Tuesday, November 24, 2009
Small Nonprofit Need to Remember to File the E-Postcard
You are part of a very small nonprofit. Keeping the books is simple, what could go wrong? Well if you don’t pay attention to the IRS filing requirements-you could lose your nonprofit status.
Small nonprofits with gross receipts of $25,000 or less need to annually submit the Form 990-N to the IRS. The form is filed online at http://epostcard.form990.org. There is no paper filing option. While there is no monetary penalty for late filing, an organization that fails to file for three years in a row, will have its nonprofit status revoked.
The filing is simple. You just need your employer identification number, name and mailing address, tax year, website (if you have one) and the name and address of the principal officer. You will be asked to certify if your gross receipts are $25,000 or less.
Not sure if you are up to date on your filings? You can search for your organization at http://www.irs.gov/app/ePostcard/
While it is easy to file, it is easy to forget to file. The epostcard is due by the 15th day of the 5th month following your year end. Nonprofit status will be revoked by the 3rd consecutive missed due date. This IRS provision was first effective for years ending 12/31/06. So if you are a 12/31 year end and have never filed the epostcard and do not file by 5/15/10, your nonprofit status would be revoked. Now is the time to file.
More information is available at the IRS website http://www.irs.gov/charities/article/0,,id=169250,00.html
Small nonprofits with gross receipts of $25,000 or less need to annually submit the Form 990-N to the IRS. The form is filed online at http://epostcard.form990.org. There is no paper filing option. While there is no monetary penalty for late filing, an organization that fails to file for three years in a row, will have its nonprofit status revoked.
The filing is simple. You just need your employer identification number, name and mailing address, tax year, website (if you have one) and the name and address of the principal officer. You will be asked to certify if your gross receipts are $25,000 or less.
Not sure if you are up to date on your filings? You can search for your organization at http://www.irs.gov/app/ePostcard/
While it is easy to file, it is easy to forget to file. The epostcard is due by the 15th day of the 5th month following your year end. Nonprofit status will be revoked by the 3rd consecutive missed due date. This IRS provision was first effective for years ending 12/31/06. So if you are a 12/31 year end and have never filed the epostcard and do not file by 5/15/10, your nonprofit status would be revoked. Now is the time to file.
More information is available at the IRS website http://www.irs.gov/charities/article/0,,id=169250,00.html
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