If gaming is conducted at a fundraising event, the income and expenses must be allocated between the gaming and the fundraising event on Form 990, Part VIII; report all income from gaming on line 9a. On lines 2a through 2e, enter the organization’s five largest sources of program service revenue. Program services are primarily those that form the basis of an organization’s exemption from tax. For a more detailed description of program service revenue, refer to the instructions for Part IX, column (B). The following chart explains which officers, directors, trustees, key employees, and highest compensated employees must be reported on Form 990, Part VII, Section A, and on Schedule J (Form 990).
Report on this line Forms 1099, 1098, 5498, and W-2G filed by reporting agents of the filing organization, including common paymasters and payroll agents, for the calendar year ending with or within the organization’s tax year. Enter -0- if the organization didn’t file any such forms for the calendar year ending with or within its tax year, or if the organization is filing for a short year and no calendar year ended within its tax year. In addition, the organization must generally report activities of a disregarded entity or a joint venture on the appropriate parts or schedules of form 990. For special instructions about the treatment of disregarded entities and joint ventures for various parts of the form, see Appendix F. An organization must report on its Form 990, including Parts VIII through X, all of the revenues, expenses, assets, liabilities, and net assets or funds of a disregarded entity of which it is the sole member. The disregarded entity is deemed to have the same accounting period as its parent for federal tax purposes.
Why Do Nonprofits Need to File Form 990?
We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. However, certain returns and return information of tax-exempt organizations and trusts are subject to public disclosure and inspection, as provided by section 6104.
- See Disregarded Entities, later, for treatment of certain employees of a disregarded entity as key employees of the organization.
- During Y’s tax year, T wasn’t a current officer, director, trustee, key employee, or highest compensated employee of Y, although T was still an employee of Y during the calendar year ending with or within Y’s tax year.
- Don’t report on this line payments made by organizations exempt under section 501(c)(8), (9), or (17) to obtain insurance benefits for members.
- 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.
- Direct costs are expenses that can be identified specifically with an organization’s activity or project, and can be assigned to an activity or project with a high degree of accuracy.
If the organization is unable to obtain this information by the extended due date after making reasonable efforts, and isn’t certain of the answer to a particular question, it may make a reasonable estimate, where applicable, and explain in Schedule O. Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under section 501(a), and certain political organizations and nonexempt charitable trusts. Parts I through XII of the form must be completed by all filing organizations and require reporting on the organization’s exempt and other activities, finances, governance, compliance with certain federal tax filings and requirements, and compensation paid to certain persons.
Form 990 contains changes affecting public support calculation, black lung trusts
Examples of such revenue include receipts from the sale of donated merchandise, interest (unless debt-financed), and receipts from bingo games. The following items of compensation provided by the filing organization and related organizations must be reported as “other compensation” in column (F) in all cases regardless of the amount, to the extent they aren’t included in column (D). For each person listed in column (A), estimate the average hours per week devoted to the organization during the year. Don’t include statements such as “as needed,” “as required,” or “40+.” If the average is less than 1 hour per week, then the organization can enter a decimal rounded to the nearest tenth (for example, 0.2 hours per week). S chairs a small academic department in the College of Arts and Sciences of the same university, T, described above. As department chair, S supervises faculty in the department, approves the course curriculum, and oversees the operating budget for the department.
- An accounting method for an item of income or deduction may generally be adopted separately for each of the taxpayer’s trades or businesses.
- This authorization applies only to the individual whose signature appears in the Paid Preparer Use Only section of Form 990.
- Answer “Yes” if, during the year, the organization was required under the Uniform Guidance, 2 C.F.R. Part 200, Subpart F, to undergo an audit or audits because of its receipt of federal contract awards.
- For purposes of line 2, a “business relationship” doesn’t include a relationship between an attorney and client, a medical professional (including psychologist) and patient, or a priest/clergy and penitent/communicant.
- Section 4958 applies the general rules to excess benefit transactions occurring on or after September 14, 1995.
Under these facts and circumstances, W meets the Responsibility Test and is a key employee of U. List the states with which a copy of this Form 990 is required to be filed, even if the organization hasn’t yet filed Form 990 with that state. For purposes of line 2, a “business relationship” doesn’t include a relationship between an attorney and client, a medical professional (including psychologist) and patient, or a priest/clergy and penitent/communicant.
Which Type of Form 990 Should My Nonprofit File?
1771, Charitable Contributions—Substantiation and Disclosure Requirements, for more information on insubstantial membership benefits that need not be valued or reported. In column (C), report any unrelated business revenue received by the organization during the tax year from an unrelated trade or business, unless that revenue is reportable in Part VIII, column (D). All organizations must complete column (A), reporting their gross receipts for all sources of revenue. All organizations (except section 527 political organizations) must complete columns (B) through (D), which must add up to the amount in column (A) for each line in Part VIII. Compensation includes fees and similar payments to independent contractors but not reimbursement of expenses unless incidental to providing the service.
Also, D doesn’t qualify as an independent member of the organization’s governing body because D receives indirect financial benefits from the organization through M that are reportable on Schedule L (Form 990), Part IV. 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). Because Z received less than $100,000 reportable compensation for the calendar year ending with or within Y’s tax year from Y and its related organizations, Y isn’t required to report Z as a former key employee on Y’s Form 990, Part VII, Section A, for Y’s tax year. A tax-exempt organization must file an annual information return or notice with the IRS, unless an exception applies.