Understanding the Form 990 and its Preparation Prerequisites

Overview

Highlights

• Overview of the Form 990's design and goals behind the Core Form's and Schedules              
• Address of the key factors that make a third-party organization a "related organization" 
• Exploration of the key definitions comprising Part VII-A's managers (i.e., "TDOKEs"):  Trustee/Director (TD)/Officer (O)/Key Employee (KE) and "High 5s", two of which categories are based upon the definition (and magnitude) of "reportable compensation"
• Understanding the definitions of "family member”, "business relationship", "independence" and "35% controlled entity" which are central to both Core Form Part VI and Schedule L                   
• Sequencing of the form's preparation tasks and appreciating who will likely be the providers of relevant caches of data  
• Need for 990-filers to engage a filer's Board of Directors in understanding what the completed Form 990 conveys to the public and regulators  

Prerequisites

Familiarity with the nonprofit sector helpful, but not necessary

Designed For

Public accounting tax and audit staff, nonprofit organization’s Treasurers, accountants, CFOs, and other compliance advisors     

Objectives

• Appreciate the public relations and regulatory impact of the 12-page Core Form and the most-common substantive-topic Schedules
• Identify the circumstances "triggering" each of the 15 substantive-topic Schedules 
• Master the six key Glossary Terms that all 990 preparers must be able to apply
• Embrace the impact of Board member's failure to be "independent" when they are the subject directly or indirectly, of Schedule L reporting 
• Discern the variety of parties most likely to be able to provide preparers with the data necessary to correctly disclose information relating to the 990's inquiries 
• Recognize the value of, and discern approaches appropriate to, public relation sensitive disclosures and presenting the completed form to a filer's Board

Preparation

None