| Fall 2008 |
Nonprofit Advisor
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New Form 990 Offers Challenges
Following its first major revision in nearly 30 years, the new IRS Form 990
is set to go into effect for the 2008 tax year, affecting returns due May 15,
2009, or after. The revised form is designed to increase transparency of
tax-exempt organizations while presenting the IRS and stakeholders with a
realistic picture of entities and their operations.
In particular, the redesigned form asks some specific questions about
governance and management practices, including:
- Does your organization have a written conflict of interest policy?
- Does your organization have a whistleblower policy?
- Does your organization have a written document retention and destruction
policy?
- Was your Form 990 provided to your governing body?
To streamline end-of-year information gathering, your organization should
take some steps now:
- Develop, implement and/or revise your governance polices and practices (as
needed).
- Review the revised Form 990, including all schedules and instructions, to
determine what additional documentation your organization may need.
- Develop, implement and/or revise your information-gathering policies (if
necessary) to ensure you have the processes in place to compile the data
needed to complete the new form.
Finally, remember that despite the challenges, there are benefits. Form 990
gives your organization the opportunity to publicly share how your operations
and finances align with your mission.
Contact our office today for help in understanding and complying with the
new Form 990 disclosure requirements.
The Nonprofit Advisor is produced quarterly by Bober, Markey, Fedorovich & Company's Nonprofit Services Group. For questions, or to obtain additional information about the services we provide to tax-exempt organizations, please call or email Lori Sheets, CPA at (330) 762-9785 or
loris@bobermarkey.com.
Unless expressly stated otherwise, any U.S. tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
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