what is a form 990

Schedule B (Form 990), Schedule of Contributors, is available for public inspection for section 527 organizations filing Form 990 or 990-EZ. 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. If you don’t file a Form 990 for three years in a row, your tax-exempt status will be automatically revoked by the IRS.

  • Answer “Yes” on line 14a if the organization maintained an office, or had employees or agents, or independent contractors outside the United States.
  • The organization must file Form 8899 for any tax year that includes any part of the 10-year period beginning on the date of contribution but not for any tax years in which the legal life of the qualified intellectual property has expired or the property failed to produce net income.
  • Also include Internet site link costs, signage costs, and advertising costs for the organization’s in-house fundraising campaigns.
  • An organization must report any adjustment required by section 481(a) in Parts VIII through XI and on Schedule D (Form 990), Parts XI and XII, as applicable, and provide an explanation for the change on Schedule O (Form 990).
  • The Form 990-PF is required for all tax-exempt organizations that are designated as private foundations, regardless of their financial status.

Whether the management company or the exempt organization is the employer will be determined by the facts and circumstances. On lines 1a through 1f, report cash and noncash amounts received as voluntary contributions, gifts, grants, or other similar amounts from the general public, governmental units, foundations, and other exempt organizations. The general public includes individuals, corporations, trusts, estates, and other entities. Voluntary contributions are payments, or the part of any payment, for which the payer (donor) doesn’t receive full retail value (FMV) from the recipient (donee) organization. Contributions are reported on line 1 regardless of whether they are deductible by the contributor. The noncash portion of contributions reported on lines 1a through 1f is also reported on line 1g.

How to Read the Form 990

Before the organization provides the documents, it can require that the individual requesting copies of the documents pay the fee. If the organization has provided an individual making a request with notice of the fee, and the individual doesn’t pay the fee within 30 days, or if the individual pays the fee by check and the check doesn’t clear upon deposit, the organization can disregard the request. Don’t use the definition of gross receipts described in Appendix C. Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and 501(c)(15) Organizations to figure gross receipts for this purpose.

Not only will preparing this information in advance give you easy access to everything you need, it will also prevent you from having to frequently stop and search for a certain detail. In this article, we will discuss everything you need to know about filing a Form 990, from choosing the form to transmitting it to the IRS. Kristin focuses on not-for-profit organizations and trade associations, as well as real estate and attest engagements under the Renewable Fuel Standard. Page 7 lists the Board of Directors, Officers, and certain compensated individuals of the Organization. This list should be all inclusive for anyone that s­­­erved on the Board or as an Officer at any point in time during the year.

Tax Tips

State law may require that the organization send a copy of an amended Form 990 return (or information provided to the IRS supplementing the return) to the state with which it filed a copy of Form 990 to meet that state’s reporting requirement. A state may require an organization to file an amended Form 990 to satisfy state reporting requirements, even if the original return was accepted by the IRS. The trustee of a trust exempt from tax under section 501(a) and described in section 501(c)(21) must file Form 990 and not Form 990-EZ, unless the trust normally has gross receipts in each tax year of not more than $50,000 and can file Form 990-N. Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons, has been a historical form since tax year 2021. Section 501(c)(21) trusts can no longer file Form 990-BL and will file Form 990 (or submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required To File Form 990 or 990-EZ, if eligible) to meet their annual filing obligations under section 6033. Some section 501(c)(21) trusts may also be required to file Form 6069, Return of Certain Excise Taxes on Mine Operators, Black Lung Trusts, and Other Persons Under Sections 4951, 4952, and 4953.

what is a form 990

A good faith estimate of the value of goods or services that aren’t generally available in a commercial transaction may be determined by reference to the FMV of similar or comparable goods or services. Goods or services may be similar or comparable even though they don’t have the unique qualities of the goods or services that are being valued. A donor gives a charity $100 in consideration Law Firm Accounting and Bookkeeping 101 for a concert ticket valued at $40 (a quid pro quo contribution). Because the donor’s payment exceeds $75, the organization must furnish a disclosure statement even though the taxpayer’s deductible amount doesn’t exceed $75. Separate payments of $75 or less made at different times of the year for separate fundraising events won’t be aggregated for purposes of the $75 threshold.

Organizations That Are Exempt From Filing Form 990

If a change in responsible party occurs after the return is filed, use Form 8822-B to notify the IRS of the new responsible party. If a change of address occurs after the return is filed, use Form 8822-B to notify the IRS of the new address. If the post office doesn’t deliver mail to the street address and the organization has a P.O. If the organization receives its mail in care of a third party (such as an accountant or an attorney), enter on the street address line “C/O” followed by the third party’s name and street address or P.O.

  • This revenue includes program service revenue reported on Part VIII, line 2, column (A), and includes other amounts reported on Part VIII, lines 3–11, as related or exempt function revenue.
  • Section 501(c)(3) organizations that file Form 990-T are also required to make their Forms 990-T publicly available for the corresponding 3-year period for forms filed after August 17, 2006 (unless the form was filed solely to request a refund of telephone excise taxes).
  • Annual information returns include Form 990, Form 990-EZ and Form 990-PF.
  • Instead, see the General Instructions, Section E, When, Where, and How To File, earlier, for the location for filing your return.
  • Keep in mind, if you lose your exempt status for not filing the 990, there is no appeal process with the IRS.

X was reported as one of Y Charity’s five highest compensated employees on one of Y’s Forms 990, 990-EZ, or 990-PF from 1 of its 5 prior tax years. During Y’s tax year, X wasn’t a current officer, director, trustee, key employee, or highest compensated employee of Y. X wasn’t an employee of Y during the calendar year ending with or within Y’s tax year. During this calendar year, X received reportable compensation in excess of $100,000 from Y for past services and would be among Y’s five highest compensated employees if X were a current employee. Y must report X as a former highest compensated employee on Y’s Form 990, Part VII, Section A, for Y’s tax year.

Forms & Instructions

Compensation includes payments and other benefits provided to both employees and independent contractors in exchange for services. See also Deferred compensation, Nonqualified deferred compensation, and Reportable compensation. Z was reported as one of Y Charity’s key employees on Y’s Form 990 filed for one of its 5 prior tax years. During Y’s tax year, Z wasn’t a current officer, director, trustee, key employee, or highest compensated employee of Y. For the calendar year ending with or within Y’s tax year, Z received reportable compensation of $90,000 from Y as an employee (and no reportable compensation from related organizations).

  • Section 4958 doesn’t apply to any fixed payment made to a person pursuant to an initial contract.
  • The organization must answer “Yes” if it liquidated, terminated, dissolved, ceased operations, or engaged in a significant disposition of net assets during the year.
  • Enter the amount of total expenses reported in Part IX, line 25, column (A).Line 3.
  • An individual that isn’t an employee of the organization (or of a disregarded entity of the organization) is nonetheless treated as a key employee if she or he serves as an officer or director of a disregarded entity of the organization and otherwise meets the standards of a key employee set forth above.
  • Except as otherwise provided, a regional or district office of a tax-exempt organization must satisfy the same rules as the principal office for allowing public inspection and providing copies of its application for tax exemption and annual information returns.
  • See the Form 990 filing thresholds page to determine which forms an organization must file.

The organization must enter on Part IX, line 11e, fees for professional fundraising services relating to the gross amounts of contributions collected in the organization’s name by professional fundraisers. For a short year return in which there is no calendar year that ends with or within the short year, don’t report any information in columns (A) through (C), unless the return is a final return. If the return is a final return, report the compensation paid to the independent contractor(s) under the parties’ agreement during the short year or the compensation that is reportable compensation on Form 1099 for the short year, whether or not Form 1099 has been filed yet to report such compensation. Report the total number of individuals, both those listed in the Part VII, Section A, table, and those not listed, to whom the filing organization (not related organizations) paid over $100,000 in reportable compensation during the tax year.