Fall 08 - 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.

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The Nonprofit Advisor is produced quarterly by Bober Markey Fedorovich's Nonprofit Services Group. For
questions, or to obtain additional information about the services we provide to tax-exempt organizations, please contact Lori A. Sheets, CPA at 330.762.9785 or by email.

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