Versions of Form 990

For other organizations that file Form 990 or 990-EZ, parts of Schedule B (Form 990) can be open to public inspection. See Appendix D, Public Inspection of Returns, and the Instructions for Schedule B (Form 990) for more details. Failure to timely file a complete and accurate Form 990 may have adverse impacts, including penalties and loss of tax-exempt status.

It shouldn’t include contributions from gaming activities, which should be reported on line 1f. Organizations that report more than $15,000 on line 9a must also answer “Yes” on Part IV, line 19, and complete Part III of Schedule G (Form 990). Fundraising events sometimes generate both contributions and income, such as when an individual pays more than the retail value for the goods or services furnished. Report in parentheses the total amount from fundraising events that represents contributions rather than payment for goods or services.

Public Disclosure and Availability of Exempt Organization Returns and Applications: Public Disclosure Overview

The above is an example of a one-step allocation that shows how to report the allocation in Part IX. This reporting method would actually be more useful to avoid multiple-step allocations involving two or more cost centers. Without this optional reporting method, the total expenses of the first cost center would be allocated to the other functions, and might include an allocation of part of these expenses to another cost center. The expenses of the second cost center would then be allocated to other functions and, perhaps, to other cost centers, and so on.

To amend the organization’s return for any year, file a new return including any required schedules. The amended return must provide all the information called for by the form and instructions, not just the new or corrected information. Check the “Amended return” box in Item B in the heading area of the form. Also, enter on Schedule O (Form 990) which parts and schedules of the Form 990 were amended and describe the amendments. A taxpayer, including a tax-exempt entity, that changes its accounting method must generally calculate and report an adjustment to ensure that no portion of the item being changed is permanently omitted or duplicated (see section 481(a)). However, depending on the specific method change, the IRS may provide that an adjustment is not required or permitted.

Appoint an employee to oversee filing

Describe the organization’s mission or its most significant activities for the year, whichever the organization wishes to highlight, on the summary page. Complete lines 3–5 and 7–22 by using applicable references made in Part I to other items. Enter the year in which the organization was legally created under state or foreign law. A section 501(c)(9) voluntary employees’ beneficiary association must use its own EIN and not the EIN of its sponsor.

See Disregarded Entities, later, for treatment of certain employees of a disregarded entity as key employees of the organization. A director or trustee is a member of the organization’s governing body, but only if the member has voting rights. A director or trustee that served at any time during the organization’s tax year is deemed a current director or trustee. Members of advisory boards that don’t exercise any governance authority over the organization aren’t considered directors or trustees. If the organization didn’t compensate its CEO, executive director, or top management official during the tax year, answer “No” to line 15a.

Data Processing, Web Search Portals, and Other Information Services

It is crucial to know which Form 990 your organization must file, in order to maintain your tax-exempt status. Any organization that fails to file the appropriate Form 990 for three consecutive years will have its tax exempt status revoked. Keep in mind there is also a daily penalty for late filing which can add up fast, so make sure you are filing the right Form 990 and getting it in before the deadline. Certain goods or services provided to employees of donor organizations or partners of donor partnerships may be disregarded for substantiation and disclosure purposes. Nevertheless, the donee organization’s disclosure statement must describe the goods or services.

Versions of Form 990

See the Form 990 filing thresholds page to determine which forms an organization must file. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

Schedule E, Schools, Line 3

Also explain any restrictions imposed on persons with a conflict, such as prohibiting them from participating in the governing body’s deliberations and decisions in the transaction. Y appoints a majority of the board of directors of Z, a section 509(a)(3) supporting organization that invests funds and makes grants for the benefit of Y. Although Y controls Z, Z isn’t a local affiliate of Y that would require Y to answer “Yes” on line 10a. Answer “Yes” on lines 8a and 8b if the organization contemporaneously documented by any means permitted by state law every meeting held and written action taken during the organization’s tax year by its governing body and committees with authority to act on behalf of the governing body (which ordinarily don’t include advisory boards). Documentation permitted by state law can include approved minutes, email, or similar writings that explain the action taken, when it was taken, and who made the decision. For this purpose, contemporaneous means by the later of (1) the next meeting of the governing body or committee (such as approving the minutes of the prior meeting), or (2) 60 days after the date of the meeting or written action.

  • Organizations that have $1,000 or more for the tax year of total gross income from all unrelated trades or businesses must file Form 990-T to report and pay tax on the resulting unrelated business taxable income (UBTI), in addition to any required Form 990, 990-EZ, or 990-N.
  • Don’t net losses from uncollectible pledges from prior years, refunds of contributions and service revenue from prior years, or reversal of grant expenses from prior years on line 1.
  • E offers F, a patron of the arts, the preferred membership benefits in return for a payment of $150 or more.
  • Don’t include on line 16 expenses reported as office expenses (such as telephone expenses) on line 13.
  • Otherwise, the compensation paid to leasing companies and professional employer organizations should be treated like compensation to a management company for purposes of Form 990 compensation reporting.
  • See Appendix B. How To Determine Whether an Organization’s Gross Receipts Are Normally $50,000 (or $5,000) or Less, for a discussion of gross receipts.