Completing and filing the Form 990 is an important aspect of a tax-exempt organization’s life cycle. The 990 serves two important functions- it informs the public about crucial aspects of your nonprofit and informs the IRS about your nonprofit’s activities and financial status to determine if you are tax exempt. In our 990 blog series, we explore the various sections of the form to alert you of your opportunities and increase your understanding of how the information on this form is used by the IRS and your resource providers.

Inside our 990 blog series

Part 1: Examining Page One of the Form 990- One might argue that the first page is the most important as it summarizes the financial activity of the organization. Check out part one for a full summary of the first page.

Part 2: How to Answer Questions on Page One of the Form 990 (cont.)- In part two of our blog series we explore the rest of page one- including lines 8-12, which break down revenue into four categories.

Part 3: Page Two of the Form 990 - Making the Most of Part 3- Page two of the form, the Statement of Program Accomplishments, provides an opportunity to inform the reader more about your organization.

Part 4: Form 990- Checklist of Required Schedules- Nonprofits are subject to a variety of disclosure and compliance requirements through various schedules which are attached to the form 990. Here’s what you need to know when determining which schedules you are required to attach to your 990.

Part 5: Form 990- Compliance Requirements- The primary mission of the IRS is to monitor compliance with the tax code. Even though tax-exempt organizations are exempt from the federal income tax; they must still comply with all other IRS regulations applicable to every business in the United States of America. Here’s what you need to know regarding compliance.

Part 6: Governing Body, Policies and Disclosure Sections of the Form 990- Part VI of the 990 asks questions about the governing body and management, governance policies, and disclosure practices. Many charity watchdog agencies pay close attention to this section of the 990. Make sure you’re aware of your responsibilities.

Part 7: Form 990 Compensation Information- Disclosure of compensation is a required part of an organization’s form 990. Although most people believe their compensation is confidential, that is not the case for nonprofit executives and independent contracts that meet certain criteria. Read part 7 on compensation disclosure.

Part 8: Financial Statement Portion of Form 990- In part eight of our Form 990 series, we explore how to properly identify your nonprofit’s sources of income and report the proper totals.

Part 9: Statement of Functional Expenses- The Statement of Functional Expenses (Part IX, page 10) is where you must report the details of your organization’s expenses and indicate whether those expenses and indicate whether those expenses were used for program services, management and general or fundraising purposes.

Check out our 990 blog series today! Contact us for further guidance.