Tax-exempt organizations must file some version of Form 990 with the IRS each year to meet federal regulations. Private foundations must file Form 990-PF which includes disclosures of the foundation’s assets, financial activities, trustees, officers and a complete list of grants awarded during the year. Review the tips when filing Form 990 and Form 990-PF to ensure you are meeting your requirements.
Complete Schedule B (Form 990, 990-EZ, or 990-PF)
All organizations must complete and attach Schedule B or certify the organization is not required to attach Schedule B by checking the box in Line 2, Form 990-PF.
Part XV, line 3 must be completed
If Part I, line 25 has an amount. Be sure to state the purpose of the grant or contribution. If the foundation only makes contributions to pre-selected charitable organizations and does not accept unsolicited applications for funds, check the box on line 2, Part XV.
Complete Part XV, lines 2a through 2d
For lines 2a through 2d, if the foundation had assets of $5,000 or more at any time during the year, unless the box in Part XV, line 2 is checked.
Be sure to complete all required Parts
Enter amounts in all applicable lines. For Parts or lines that do not apply, enter "N/A" (not applicable). Answer "Yes", "No" or "N/A" to each question.
Complete Part II, Balance Sheets
Foundations with total assets of $5,000 or more at any time during the year must complete all of columns (A), (B) and (C). Foundations with total assets less than $5,000 at all times during the year must complete all of columns (A) and (B) and only line 16 of column (C).
Complete Part XV, Supplementary Information
Part XV must be completed if the foundation had assets of $5,000 or more at any time during the year.
Sign the return
An officer of the organization must sign the return. An officer is the president, vice president, treasurer, assistant treasurer, chief accounting officer, corporate officer or tax officer. If the return is filed by a trust, it must be signed by the authorized trustee or trustees.
Complete Part X
All domestic foundations, foreign foundations claiming status as a private operating foundation, and private operating foundations described in 4942(j)(3) or 4942(j)(5) must complete Part X.
Reminder: protect personal information
Do not include unnecessary personal identifying information.
SVA’s fraud professionals are well versed in the new laws and standards affecting nonprofits. Together with SVA’s nonprofit professionals, we advise your organization in developing an internal control system that provides the necessary checks and balances. Already have internal controls in place? Our fraud risk assessment helps to uncover weaknesses in specific areas while offering recommendations to strengthen and secure those aspects.
We also work with nonprofit organizations, like yours, to recommend governance policies designed to protect the interests of management, staff, donors and recipients.
Governments at all levels – local, state, and federal – that hire nonprofits to deliver services are now required to reimburse nonprofits for the reasonable indirect costs (sometimes called “overhead” or “administrative” costs) they incur on behalf of governments when federal dollars are part of the funding stream. The new mandate is embedded in grant making rules that the federal Office of Management and Budget (OMB) put into effect at the end of 2014. In addition, the OMB Uniform Guidance streamlines and clarifies cost allocation and other rules related to government grants and contracts, removing some areas of confusion and inconsistency while treating more of a nonprofit’s expenses as direct (reimbursable) costs.
“Nonprofit” encompasses a wide variety of concerns including education, health and social services, government agencies, foundations, membership associations, and religious organizations. Generating sufficient revenue to provide services – while simultaneously qualifying for federal tax-exempt status – requires a clear commitment to your organization’s mission.
Our professional advisors work closely with management and the board of directors to help organizations articulate their vision. We work with you to present your organization’s activities and mission to assist you in presenting the organization in such a way as to be recognized as tax-exempt by the Internal Revenue Service.