form 990 instructions

Many require charities to register with a state

agency before asking for contributions from state residents. And they may have

their own requirements for solicitations in addition to the IRS requirements. If an activity is on a larger scale than is reasonably necessary for exempt

purpose, some of the income may be unrelated business income. In-kind donations from businesses and individuals also require special consideration. Organizations are required to provide a written acknowledgement of the in-kind donation if the value of the donated item is over $250. This acknowledgement must be carefully written so that the value of the items donated are accurately described.

form 990 instructions

Include the registration fees (but not travel expenses) paid for sending any of the organization’s staff to conferences, conventions, and meetings conducted by other organizations. Travel expenses incurred by officers, directors, and employees attending such conferences, conventions, and meetings must be reported on line 17. A payment by a governmental agency to a medical clinic to provide vaccinations to the general public is a contribution reported on line 1e. A payment by a Law Firms and Client Trust Accounts governmental agency to a medical clinic to provide vaccinations to employees of the agency is program service revenue reported on line 2. Unrelated trade or business activities (not including any fundraising events or fundraising activities) that generate fees for services can also be program service activities. A social club, for example, should report as program service revenue the fees it charges both members and nonmembers for the use of its tennis courts and golf course.

Form 990-EZ

Whether a payment from a governmental unit is labeled a “grant” or a “contract” doesn’t determine where the payment should be reported on Part VIII. Rather, a grant or other payment from a governmental unit is reported here if its primary purpose is to enable the organization to provide a service to, or maintain a facility for, the direct benefit of the public rather than to serve the direct and immediate needs of the governmental unit. In other words, the payment is recorded on line 1e if the general public receives the primary and direct benefit from the payment and any benefit to the governmental unit is indirect and insubstantial as compared to the public benefit. The contribution of $240, which is the difference between the buyer’s payment and the retail value of the dinner, would be reported on line 1c and again on line 8a (within parentheses). The revenue received ($160 retail value of the dinner) would be reported in the right-hand column on line 8a. Don’t net losses from uncollectible pledges from prior years, refunds of contributions and service revenue from prior years, or reversal of grant expenses from prior years on line 1.

form 990 instructions

However, report indirect expenses of fundraising events, such as certain advertising expenses, in Part IX, column (D), rather than on Part VIII, line 8b. Enter on line 6b the expenses paid or incurred for the income reported on line 6a. Include interest related to rental property and depreciation if it is recorded in the organization’s books and records.

A Beginner’s Guide to Filing a Form 990 for Your Nonprofit 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. Management companies, as independent contractors, are reported on Form 990, Part VII (if at all) only in Section B. Independent Contractors, and aren’t reported on Schedule J (Form 990), Part II. If a current or former officer, director, trustee, or key employee has a relationship with a management company that provides services to the organization, then the relationship may be reportable on Schedule L (Form 990), Part IV.

FMV is the price at which property, or the right to use property, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy, sell, or transfer property or the right to use property, and both having reasonable knowledge of relevant facts. See the instructions for Form 4720, Schedule I, for more information regarding these disqualified persons. The following is a list of special instructions for the form and schedules regarding the reporting of a joint venture of which the organization is a member. Where a tax-exempt organization doesn’t require prepayment and a requester doesn’t enclose payment with a request, an organization must receive consent from a requester before providing copies for which the fee charged for copying and postage exceeds $20. Section 501(c)(3) organizations that are required to file Form 990-T after August 17, 2006, must make Form 990-T available for public inspection under section 6104(d)(1)(A)(ii). An individual or organization that receives compensation for providing services to the organization but who isn’t treated as an employee.

Instructions to complete Form 990 Part X Balance Sheet

Public Inspection IRC 6104(d) regulations state that an organization must provide copies of its three most recent Forms 990 to anyone who requests them, whether in person, by mail, fax, or e-mail. The IRS continues to make (1) minor stylistic and substantive corrections, (2) updates to annual revenue procedure references and inflation-adjusted dollar amounts, and (3) useful cross-references to formal IRS guidance and information available on the IRS website. Delivering tax services, insights and guidance on US tax policy, tax reform, legislation, registration and tax law. For a $60 membership fee, however, members are offered free admission to any of the performances.

  • Classify activities on this schedule in more detail than by using broad terms such as charitable, educational, religious, or scientific.
  • Enter the three largest sources on lines 11a through 11c and all other revenue on line 11d.
  • Check “No” if the IRS should contact the organization or its principal officer listed in Item F of the heading on page 1, rather than the paid preparer.
  • It is sufficient to enter “family relationship” or “business relationship” without greater detail.

If a tax-exempt organization has made its application for tax exemption and/or an annual information return widely available, it must notify any individual requesting a copy where the documents are available (including the address on the Internet, if applicable). If the request is made in person, the organization must provide the notice to the individual immediately. We ask for the information on these forms to carry out the Internal Revenue laws of the United States. 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.

Instructions to complete Basic Organization Information in Form 990

Special rules apply to charitable contributions of motor vehicles, boats, or airplanes with a claimed value of more than $500. 4302, A Charity’s Guide to Vehicle Donation; and the Instructions for Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes.Substantiation and disclosure requirements for charitable contributions. State or local filing requirements can require the organization to attach to Form 990 or 990-EZ one or more of the following. Used to report net income from qualified intellectual property to the IRS and the donor. Used to notify the IRS of a change in mailing address that occurs after the return is filed.

form 990 instructions

The IRS won’t redact the paid preparer’s SSN if such SSN is entered on the paid preparer’s block. Because Form 990-EZ is a publicly disclosable document, any information entered in this block will be publicly disclosed (see Appendix D). One or more persons (whether individuals or organizations) control a stock corporation if they own more than 50% of the stock (by voting power or value) of the corporation. Answer “Yes” and complete Schedule C (Form 990), Part II, if the organization engaged in lobbying activities or had a section 501(h) election in effect during the tax year. All section 501(c)(3) organizations that had a section 501(h) election in effect during the tax year must complete Schedule C (Form 990), Part II-A, regardless of whether they engaged in lobbying activities during the tax year.

Instructions for Form 990-EZ (

Lobbying expenses should be reported in this column if they don’t directly relate to the organization’s exempt purposes. For each amount entered on lines 11a, 11b, and 11c, the organization must also enter a corresponding business activity code from Business Activity Codes, later. If you don’t see a code for the activity you are trying to categorize, select the appropriate code from the NAICS website at 2022 NAICS Census Chart. Select the most specific 6-digit code available that describes the activity producing the income. Avoid using codes that describe the organization rather than the income-producing activity.

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. All organizations are required to complete Part VII, and when applicable, Schedule J (Form 990), for certain persons. Compensation must be reported for the calendar year ending with or within the organization’s tax year.