Most federally recognized not-for-profit organizations (NPOs) must file Federal Form 990 Return of Organization Exempt From Income Tax (Form 990) if they have gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000.
As discussed in a previous article in our Understanding Form 990 Article Series, a NPO’s Form 990 is available on Guidestar.org to anyone who wants to access it free of charge. Form 990 has extensive disclosures and can tell the reader a lot about a NPO. Certain disclosures on Form 990 can create problematic issues for a NPO. Other disclosures can communicate the importance of the organization to its beneficiaries, members, and others.
In short, Form 990 provides information to those who read it about the NPO’s programs, financial health, fundraising activities, lobbying activities, political campaigning activities, tax compliance, policies, compensation of certain individuals and independent contractors, and grantees, among other items that could be of interest about the NPO.
In this article, we will walk through the 12 page base Form 990 and provide insight on certain parts of the form that should be of interest to a NPO’s management and governing body.
Complete article available here.