2013-2025 Form

What is the Form 990

The Form 990 is a crucial document used by tax-exempt organizations in the United States to report their financial information to the Internal Revenue Service (IRS). This form provides transparency regarding the organization's activities, governance, and financial health. Nonprofits, charities, and other tax-exempt entities must file this form annually, allowing the IRS and the public to assess their compliance with tax laws and their operational effectiveness. The Form 990 is often referred to as the "Return of Organization Exempt from Income Tax." It serves as a key resource for donors, grantmakers, and regulators to evaluate the organization’s financial practices.

Steps to complete the Form 990

Completing the Form 990 involves several key steps to ensure accurate reporting and compliance. Begin by gathering all necessary financial documents, including income statements, balance sheets, and details about expenses. Next, follow these steps:

• Identify the correct version of Form 990 to use based on your organization's revenue and activities.
• Fill out the organizational information, including the name, address, and Employer Identification Number (EIN).
• Report financial data, including revenue, expenses, and net assets, in the designated sections.
• Provide information about the board of directors and key staff members, including their compensation.
• Complete the required schedules that apply to your organization, such as Schedule A for public charities.
• Review the entire form for accuracy and completeness before submission.

Legal use of the Form 990

The Form 990 must be completed and filed in accordance with IRS regulations to maintain the tax-exempt status of an organization. Legal use of this form involves ensuring that all reported information is truthful and accurate. Misrepresentation or failure to file can lead to penalties, including loss of tax-exempt status. Organizations should also be aware of the legal implications of the information disclosed on the form, as it may be scrutinized by donors and regulatory bodies. Compliance with the IRS guidelines is essential for continued operation and credibility.

Filing Deadlines / Important Dates

Organizations must adhere to specific filing deadlines to ensure compliance with IRS regulations. Generally, the Form 990 is due on the fifteenth day of the fifth month after the end of the organization’s fiscal year. For example, if an organization’s fiscal year ends on December thirty-first, the Form 990 must be filed by May fifteenth of the following year. If the deadline falls on a weekend or holiday, the due date is extended to the next business day. Organizations can apply for a six-month extension if needed, but this must be done before the original deadline.

Examples of using the Form 990

The Form 990 serves multiple purposes for various stakeholders. For example, potential donors often review Form 990 filings to assess the financial health and transparency of a nonprofit before making contributions. Grantmakers also rely on this form to evaluate funding requests and ensure that organizations align with their mission. Additionally, regulatory bodies use the information from Form 990 to monitor compliance with tax laws and assess the overall landscape of the nonprofit sector. These examples illustrate the importance of accurate and timely reporting.

Required Documents

To successfully complete the Form 990, organizations must gather several required documents. Key documents include:

• Financial statements, including income statements and balance sheets.
• Records of contributions and grants received during the fiscal year.
• Details of compensation for board members and key employees.
• Information on any related organizations or subsidiaries.
• Documentation supporting any special programs or initiatives undertaken during the year.

Having these documents ready will streamline the completion process and help ensure compliance with IRS requirements.