Preface ix
Acknowledgments xiii
About the Authors xv
Chapter 1: Redesigned Form 990 1
§ 1.1 History of Redesign Project 3
§ 1.2 Highlights of Revised Form 990 5
§ 1.3 Filing of New Form Delayed for Many 9
§ 1.4 Find Out Why Organization Qualifies for Tax Exemption 10
§ 1.5 Who Is Required to File What 11
§ 1.6 Filing for New Organizations 12
§ 1.7 Who Is Not Required to File 12
§ 1.8 Filing Deadline and Fiscal Year 13
§ 1.9 New Form 990-N (e-Postcard) 13
§ 1.10 Electronic Filing of Returns 14
§ 1.11 Group Returns and Annual Affidavit 15
§ 1.12 Public Inspection of Forms 990 and 1023/1024 16
Notes 17
Appendix 1A: 6/14/07 Draft of Core Form 19
Appendix 1B: BV Suggested Revisions 29
Appendix 1C: Form 990-EZ 30
Chapter 2: Good Accounting Makes a Good 990 35
§ 2.1 Tax Accounting Methods 37
§ 2.2 Professional Accounting Standards 38
§ 2.3 Chart of Differences Between GAAP and IRS Rules 42
Notes 45
Chapter 3: The Core 47
§ 3.1 2008 Form 990 Core 47
§ 3.2 Part I Summary 48
§ 3.3 Part II Signature Block 50
§ 3.4 Part III Statement of Program Service Accomplishments 50
§ 3.5 Part IV Checklist of Required Schedules 53
§ 3.6 Part V Statements Regarding Other IRS Filings and Tax Compliance 56
§ 3.7 Part VI Governance, Management, and Disclosure 64
§ 3.8 Part VII Compensation of Officers, Directors, Trustees,Key Employees, Highest Compensated Employees, and Independent Contractors 73
§ 3.9 Part VIII Statement of Revenue 81
§ 3.10 Part IX Statement of Functional Expenses 88
§ 3.11 Part X Balance Sheet 95
§ 3.12 Part XI Financial Statements and Reporting 97
Notes 97
Appendix 3A: Transactions with Interested Parties Questionaire 100
Chapter 4: Form 990, Schedules A through R 103
§ 4.1 Schedule A 103
§ 4.2 Schedule B 120
§ 4.3 Schedule C 125
§ 4.4 Schedule D 132
§ 4.5 Schedule E 146
§ 4.6 Schedule F 149
§ 4.7 Schedule G 155
§ 4.8 Schedule H 160
§ 4.9 Schedule I 165
§ 4.10 Schedule J 170
§ 4.11 Schedule K 173
§ 4.12 Schedule L 174
§ 4.13 Schedule M 182
§ 4.14 Schedule N 188
§ 4.15 Schedule O 192
§ 4.16 Schedule R 195
Notes 200
Appendix 4A: State Unified Registration Statement 204
Appendix 4B: Interested Party by Part and Type 223
Chapter 5: Form 990-T: Exempt Organization Business Income Tax Return 225
§ 5.1 What Is Unrelated Business Income? 226
§ 5.2 Exceptions and Modifications from Tax 228
§ 5.3 Unrelated Debt-Financed Income 231
§ 5.4 Who Files Form 990-T? 233
§ 5.5 Due Dates, Tax Rates, and Other Filing Issues 234
§ 5.6 Normal Income Tax Rules Apply 236
§ 5.7 The Unique Design of the 990-T 238
§ 5.8 Categories of Deductions 243
§ 5.9 Cost Allocations 246
§ 5.10 In-Kind Donations 248
Notes 248
Appendix 5A: Analysis of Corporation versus Trust 990-T Issues 252
Chapter 6: The Private Foundation Return 253
§ 6.1 Successful Completion of Form 990-PF 253
§ 6.2 The Part I Columns 255
§ 6.3 Line-by-Line Instructions for Revenues 257
§ 6.4 Line-by-Line Instructions for Expenditures 261
§ 6.5 Part II: Balance Sheets 265
§ 6.6 Part III: Analysis of Changes in Net Worth or Fund Balances 266
§ 6.7 Part IV: Capital Gains and Losses for Tax on Investment Income 267
§ 6.8 Reports Unique to Private Foundations 268
§ 6.9 Part V: Reducing the Tax Rate 268
§ 6.10 Part VI: Calculating the Excise Tax 269
§ 6.11 Part VII-A: Proof of Ongoing Qualification for Exemption 270
§ 6.12 Part VII-B: Questions Seeking Evidence That No Sanctions Apply 275
§ 6.13 Part VIII: Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors 276
§ 6.14 Part IX-A and B: Summary of Direct Charitable Activities and Program-Related Investments 278
§ 6.15 Part X: Minimum Investment Return 279
§ 6.16 Part XI: Distributable Amount 279
§ 6.17 Part XII: Qualifying Distributions 280
§ 6.18 Part XIII: Undistributed Income 280
§ 6.19 Part XIV: Private Operating Foundations 282
§ 6.20 Part XV: Supplementary Information (Lines 1â"2) 282
§ 6.21 Part XV: Grants and Contributions Paid During the Year or Approved for Future Payment (Line 3) 283
§ 6.22 Part XVI-A: Analysis of Income-Producing Activity 285
§ 6.23 Part XVII: Information Regarding Transfers to and Transactions and Relationships with Noncharitable Exempt Organizations 286
Notes 287
Index 289
