Important Topics:
Revised Form 990
Compliance Guide for 501(c)(3) Public Charities
Revised Form 990
The IRS has redesigned the Federal Form 990 – Return of Organization Exempt From Income Tax for the 2008 tax year. The new form is far more detailed than ever before and will require considerable planning and completion time, especially for the first year. Some parts of the prior Form 990 have been eliminated while many new sections and schedules have been added. Some major changes in reporting requirements included governance; compensation of officers, directors, trustees, key employees, and highest compensated employees; determination of public charity status and public support; supplemental financial statement reporting; and fundraising, special events, and gaming.
To ease the burden this new form creates for mid-sized entities, the IRS has opted to phase in the use of the new 990 by allowing the 990-EZ form to be used instead. As instated last year, the 990-N postcard will still be used for small organizations. The following table illustrates what form your organization will be expected to file in the next few tax years:
|
Gross Receipts <= $25,000 |
990-N |
990-N |
990-N |
|
Gross Receipts > $25,000 and <= $50,000 |
990-EZ or
New 990 |
990-EZ or
New 990 |
990-N |
|
Gross Receipts > $50,000 and < $200,000, and
Total Assets < $500,000 |
990-EZ or
New 990 |
990-EZ or
New 990 |
990-EZ or
New 990 |
|
Gross Receipts >= $200,000 and < $500,000, and
Total Assets < $1.25 million |
990-EZ or
New 990 |
990-EZ or
New 990 |
New 990 |
|
Gross Receipts >= $500,000 and < $1 million, and
Total Assets < $2.5 million |
990-EZ or
New 990 |
New 990 |
New 990 |
|
Gross Receipts >= $1 million, and/or
Total Assets >= $2.5 million |
New 990 |
New 990 |
New 990 |
Also, please be aware of the public relations value of the Form 990. When asked to describe your program services and expenditures, be specific. The Form 990 is quickly becoming the most used document by potential donators, as well as those distributing grants. Don’t let mundane or nonchalant answers keep your organization from receiving critical financial support!
Looking for more answers? The IRS has a portion of its site dedicated to charities and other non-profits. Click here to visit this page to learn more about the new Form 990, as well as other important topics.
Compliance Guide for 501(c)(3) Public Charities
Are you a director, trustee or key employee for a charitable organization? Do you want to avoid problems with the IRS. The IRS has released a publication entitled "Compliance Guide for 501(c)(3) Public Charities". This publication provides readers with an overview of various compliance issues that are important for public charities. To access this publication (Publication 4221-PC), go to http://www.irs.gov/pub/irs-pdf/p4221pc.pdf.
