form 990 instructions

For purposes of line 24c, the organization is treated as maintaining an escrow account if such account is maintained by a trustee for tax-exempt bonds issued for the benefit of the organization. Answer “Yes” and complete Schedule K (Form 990) for each tax-exempt bond issued by or for the benefit of the organization after December 31, 2002 (including refunding bonds) with an outstanding principal amount of more than $100,000 as of the last day of the organization’s tax year. For this purpose, bonds that have been legally defeased, and as a result are no longer treated as a liability of the organization, aren’t considered outstanding.

An infrequent activity such as an annual

fundraiser — a dance, bake sale or car wash, for example is not considered

regularly carried on. Generally sponsorships are considered a business deal but the money given to a charity often is not taxable because it’s not considered to be from a regularly carried on trade or business. If a person or organization other than the charity is conducting the event, for example a professional fundraising organization or, the charity must clearly authorize the person to act as its agent. As I said before, UBI and its related Unrelated Business Income Tax is a large subject. For more details and the reporting requirements, go to and download or order Publication 598, Tax on Unrelated Business Income of Exempt Organizations.

Arts, Entertainment, and Recreation

If any section 501(c)(15) insurance company (other than life insurance) meets both parts of the following test, then the company can file Form 990 (or Form 990-EZ, if applicable). Gross receipts are the sum of lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b, and 12 (column (A)) of Form 990, Part VIII. A member of the organization’s governing body with power to vote on all matters that may come before the governing body (other than a conflict of interest that disqualifies the member from voting). An organization that isn’t a related organization to the filing organization. A type of political organization that meets the following requirements. See section 170(h) for additional information, including special rules about the conservation purpose requirement for buildings in registered historic districts.

  • However, you can also use 990 forms to prove both your financial irreproachability and commitment to your community to your organization’s volunteers and donors (potential or otherwise).
  • For purposes of Form 990 or 990-EZ reporting, the term “section 501(c)(3)” includes organizations exempt under sections 501(e) and (f) (cooperative service organizations), 501(j) (amateur sports organizations), 501(k) (childcare organizations), and 501(n) (charitable risk pools).
  • See the instructions for Form 990, Part V, line 6, for rules on public notice of nondeductibility when soliciting nondeductible contributions.
  • Dues or assessments received that exceed the value of available membership benefits.

For purposes of Schedule F (Form 990), Statement of Activities Outside the United States, include grantmaking, fundraising, unrelated trade or business, program services, program-related investments, other investments, or maintaining offices, employees, or agents in particular regions outside the United States. If the organization records depreciation, depletion, amortization, or similar expenses, enter the total on line 22. Include any depreciation or amortization of leasehold improvements and intangible assets.

Instructions to complete Form 990 Part X Balance Sheet

Don’t include on line 16 expenses reported as office expenses (such as telephone expenses) on line 13. Monthly account service fees are considered portfolio management expenses, and must be reported here. Don’t include transaction costs such as brokerage fees and commissions, which are considered sales expenses and are included on Part VIII, line 7b. Don’t use this column to report costs of special meetings or other activities that relate to fundraising or specific program services. Expenses incurred to manage investments must be reported in column (C).

  • E offers F, a patron of the arts, the preferred membership benefits in return for a payment of $150 or more.
  • This marks the start of the absentee voting period and the first day Iowans can vote in person at their county election office.
  • Some fundraising activities, such as volunteer-operated bake sales, may meet

    this exception.

  • Use of a paid preparer doesn’t relieve the organization of its responsibility to file a complete and accurate return.
  • Sales or gifts of goods or services of only nominal or insubstantial value.

Enter the total of accounts payable to suppliers, service providers, property managers, and other independent contractors, plus accrued expenses such as salaries payable, accrued payroll taxes, and interest payable. Enter the amount of short-term and long-term prepayments of expenses attributable to one or more future accounting periods. Examples include prepayments of rent, insurance, or pension costs, and expenses incurred for a solicitation campaign to be conducted in a future accounting period. In column (A), enter the amount from the preceding year’s Form 990, column (B).

Form 990 contains updates affecting compensation reporting and short period return filers

Include payments by the organization to professional fundraisers of fundraising expenses such as printing, paper, envelopes, postage, mailing list rental, and equipment rental, if the organization is able to distinguish these expense amounts from fees for professional fundraising services reportable on line 11e. Enter the four largest dollar amounts on lines 24a through 24d and the total of all remaining miscellaneous expenses on line 24e. Don’t include a separate entry for “miscellaneous expenses,” “program expenses,” “other expenses,” or a similar general category on lines 24a–d. If the amount on line 24e exceeds 10% of the amount on line 25, column (A), the organization must list the type and amount of each line 24e expense on Schedule O (Form 990). For example, report expenses for employee events such as a picnic or holiday party on line 9.

form 990 instructions

However, for this purpose, the organization must report the gross payment to the independent contractor that includes expenses and fees if the expenses aren’t separately reported to the organization. Check “Yes” on line 35a if the organization’s total gross income from all of its unrelated trades and businesses is $1,000 or more during the tax year. 598 for a description of unrelated business income, and see the Instructions for Form 990-T for the filing requirements of Form 990-T. For employees, such as certain members Nonprofit Accounting: A Guide to Basics and Best Practices of the clergy and religious workers who aren’t subject to social security and Medicare taxes as employees, box 5 of Form W-2 can be zero or less than the amount in Form W-2, box 1. In those cases, the amount required to be reported in box 1 of Form W-2 must be reported as reportable compensation in column (c). Enter the printing and related costs of producing the filing organization’s own newsletters, leaflets, films, and other informational materials, as well as the cost of outside mailing services on line 15.

Schedule E, Schools, Line 3

If line 7 is $500,000 or more, the organization is subject to the section 4968 excise tax on net investment income and the organization should answer “Yes” on line 16. If worksheet line 1 is fewer than 500, the organization is not subject to the section 4968 excise tax on net investment income. The above doesn’t apply to distributions to any organization described in section 170(b)(1)(A) (other than a disqualified supporting organization, defined in section 4966(d)(4)), to the sponsoring organization of such donor advised fund, or to any other donor advised fund. Line 7 is directed only to organizations that can receive deductible charitable contributions under section 170(c).

form 990 instructions

These employees should be reported in Part VII, Section A, of Form 990. Enter all other contributions, gifts, and similar amounts the organization received from sources not reported separately on lines 1a through 1e. This amount includes contributions from donor advised funds (unless the sponsoring organization is a related organization) and from gaming activities. For a section 501(c)(21) trust, enter the total contributions received under section 192 from the coal mine operator who established the trust. In the case of the transfer of property subject to a substantial risk of forfeiture, or in the case of rights to future compensation or property, the transaction occurs on the date the property, or the rights to future compensation or property, isn’t subject to a substantial risk of forfeiture.

Bonus Step: You can always file for an extension.

Income from bingo games isn’t generally subject to the tax on unrelated business income if the games meet the legal definition of bingo. For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. Use column (ii) to report sales of all other types of investments (such as real estate, royalty interests, or partnership interests) and all other non-inventory assets (such as program-related investments and fixed assets used by the organization in its related and unrelated activities). Enter all investment income actually or constructively received from investing the proceeds of a tax-exempt bond issue , which are under the control of the organization.

form 990 instructions