For purposes of section 4958, any officer, director, or trustee of an applicable tax-exempt organization, or any individual having powers or responsibilities similar to officers, directors, or trustees of the organization, regardless of title. Unless otherwise provided (for example, Signature Block, principal officer in Heading), a person elected or appointed to manage the organization’s daily operations at any time during the tax year, such as a president, vice president, secretary, treasurer, and, in some cases, Board Chair. The officers of an organization are determined by reference to its organizing document, bylaws, or resolutions of its governing body, or as otherwise designated consistent with state law, but at a minimum include those officers required by applicable state law. For purposes of Form 990, treat the organization’s top management official and top financial official as officers. Enter the total amount of all liabilities not properly reportable on lines 17 through 24.
See Appendix G, later, for a discussion of section 4958; Schedule L (Form 990), Part I; and Form 4720, Schedule I, regarding reporting of excess benefit transactions. The organization can report the amount of any donated services, or use of materials, equipment, or facilities it received or used in connection with a specific program service, on the lines for the narrative description of the appropriate program service. However, don’t include these amounts in revenue, expenses, or grants reported on Part III, lines 4a–4e, even if prepared according to generally accepted accounting principles (GAAP). Many states that accept Form 990 in place of their own forms require that all amounts be reported based on the accrual method of accounting. If the organization prepares Form 990 for state reporting purposes, it can file an identical return with the IRS even though the return doesn’t agree with the books of account, unless the way one or more items are reported on the state return conflicts with the instructions for preparing Form 990 for filing with the IRS. An accounting method for an item of income or deduction may generally be adopted separately for each of the taxpayer’s trades or businesses.
Third-party sources of Form 990
A good faith estimate of the value of goods or services that aren’t generally available in a commercial transaction may be determined by reference to the FMV of similar or comparable goods or services. Goods or services may be similar or comparable even though they don’t have the unique qualities of the goods or services that are being valued. Corporation K makes a $50,000 payment to J and in return, J offers K’s employees free admission, a T-shirt with J’s logo that costs J $4.50, and a 25% gift shop discount. Because the free admission is a privilege that can be exercised frequently and is offered in both benefit http://bestrestoran.com.ua/recept/vipechka/110-recept-marmeladnogo-pechenya.html packages, and the value of the T-shirts is insubstantial, Museum J’s disclosure statement need not value or mention the free admission benefit or the T-shirts. However, because the 25% gift shop discount to K’s employees differs from the 10% discount offered in the basic membership benefits package, J’s disclosure statement must describe the 25% discount, but need not estimate its value. For each fundraising event, the organization must keep records to show the portion of any payment received from patrons that isn’t deductible, that is, the retail value of the goods or services received by the patrons.
- A request for a copy of less than the entire application or less than the entire return must specifically identify the requested part or schedule.
- Report retained earnings, endowment, accumulated income, or other funds on line 31.
- For institutional trustees that don’t receive a Form 1099-NEC or 1099-MISC, enter the amount that the organization would have reported in box 1 of Form 1099-NEC or box 6 of Form 1099-MISC if the form(s) had been required.
- The stock is delivered to the charity’s broker, who sells it on the same day and remits the sales proceeds, net of commissions, to the charity.
The organization need not engage in more than a reasonable effort to obtain the necessary information to determine the number of independent voting members of its governing body and can rely on information provided by such members. If the organization is required to file Form 8282, Donee Information Return, to report information to the IRS and to donors about dispositions of certain donated property made within http://www.globalstrategy.biz/BusinessPlan/human-resources-consulting-business-plan 3 years after the donor contributed the property, it must answer “Yes” and indicate the number of Forms 8282 filed. The organization is required to answer “Yes” on line 29 if it received during the year more than $25,000 in fair market value (FMV) of donations, gifts, grants, or other contributions of property other than cash, regardless of the manner received (such as for use in a charity auction).
Data Processing, Web Search Portals, and Other Information Services
Section 501(c)(3) and 501(c)(4) organizations must complete columns (A) through (D). Enter the three largest sources on lines 11a through 11c and all other revenue on line 11d. For reporting sales of securities on http://russkialbum.ru/2015/06/06/foxit-phantompdf-business-7150425-final.html, the organization can use the more convenient average cost basis method to figure the organization’s gain or loss. When a security is sold, compare its sales price with the average cost basis of the particular security to determine gain or loss. However, for reporting sales of securities on Form 990-T, don’t use the average cost basis to determine gain or loss. Organization Y, a related organization, also provides compensation to the officer as follows.
Check “No” if the organization answered “Yes” on line 3a but hasn’t filed Form 990-T by the time this Form 990 is filed, even if the organization has applied for an extension to file Form 990-T. 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” if the organization reported on Part IX, line 2, column (A), more than $5,000 of aggregate grants and other assistance to or for domestic individuals.
Instructions for Form 990
For organizations using the fund method of accounting, enter the fund balances for the organization’s current restricted and unrestricted funds. Enter on this line the total value of all securities, partnerships, or funds that aren’t publicly traded. This includes stock in a closely held company whose stock isn’t available for sale to the general public or which isn’t widely traded. Other securities reportable on line 12 also include publicly traded stock for which the organization holds 5% or more of the outstanding shares of the same class, and publicly traded stock in a corporation that comprises more than 5% of the organization’s total assets. Enter the cost or other basis of all land, buildings, equipment, and leasehold improvements held at the end of the year. Include both property held for investment purposes and property used for the organization’s exempt functions.
Report direct expenses of fundraising events on Part VIII, line 8b, rather than in Part IX, column (D). However, report indirect expenses of fundraising events, such as certain advertising expenses, in Part IX, column (D), rather than on Part VIII, line 8b. Program services can also include the organization’s unrelated trade or business activities. Publishing a magazine is a program service even though the magazine contains both editorials and articles that further the organization’s exempt purpose as well as advertising, the income from which is taxable as unrelated business income.
