THE 990 2010 FORM FILING SEASON (and the start of my teaching season on the 2010 Form) is in high gear! . . . We’ve come a long way since 12/20/2010 when the IRS began posting the 2010 version of the Form and instructions (some Schedules were late—for example C came out late February, and H was postponed until July). For the most part, the 2010 Form’s changes are helpful clarifications or improvements. As to major shifts, I have found two key ramifications of the new instructions combine with prior years’ lessons learned and (teaser warning:) you will find these at the bottom of this page!
MANAGERS’ QUESTIONNAIRES (a/k/a “Board q’aires”): Eve Rose Borenstein LLC and the Clark Nuber CPA firm have a unique and efficient interactive master workbook by which tax-exempt organizations can create user-friendly individualized questionnaires for their Board members, Officers and “Key Employees” (as well as—for grantmaking organizations—grant committee members or substantial contributors) sufficient to generate user-friendly questionnaires that comply with the IRS’ “reasonable efforts” requirement to seek information from these individuals. The workbook, a spreadsheet master, has a “help me decide” function to assist in determining whether an individual need be inputted at all (i.e., if they are “report-able” in Form 990 Part VII as a Trustee, Director and Officer, Key Employee, or “former”). Once the organization inputs its people, individualized-to-each-managers’ worksheets are created. These can be presented to each individual electronically or by paper. The individualized worksheets, equivalent to personalized “questionnaires”, incorporate all of the inquiries (and definitions) the IRS points to as comprising “reasonable effort” required of such questionnaires. THUS, this product allows organizations to rely upon the information returned by their Trustees/Directors, Officers and Key Employees (and others the Form may require) as the basis for completing five key arenas of the Form. Each master workbook (dubbed “Form 990 Board Questionnaire Template”) is available for a complete price of $250 (prior to 2010’s version, there was a price differential for organizations with “related organizations” versus those without “related organizations,” that bifurcation is now gone). The purchase price is a complete cost to each filing organization, regardless of the number of individualized questionnaires that are then to be generated. Multiple pricing is available for preparers or others who wish to buy in quantity to provide to their clientele. To order (or for further info), please visit Clark Nuber’s website: http://www.clarknuber.com/nfp/i-form990.php or contact .(JavaScript must be enabled to view this email address).
Courtesy of funding from The Otto Bremer Foundation, the Nonprofit Assistance Fund is sponsoring a series of “Accountability” workshops: a 2.5 hour session for small nonprofits whose 2010 990 filing will be their first and a 2.5 hour session for large nonprofits focusing on areas of confusion from the “Redesigned” Form 990. Initial dates in Minneapolis/St. Paul are now past; further Upper Midwest dates are still TBD.
efile.form990.org is the website home for the National Center for Charitable Statistics’ exemplary project that allows exempts to both “e-file” and prepare Form 990 (and the -EZ) (their website also accomplishes Form 990-N and 990/990-EZ extension requests). The very competent Desktop Form 990 preparation software does yeoman’s lifting with the 2008-2010 Redesigned 990s (note: 2010 Form 990 software was released in late March 2011!) The Form 990 application includes comprehensive error checking, provides very helpful online instructions and tips, and electronically files the return with the IRS. Access to the software/system is FREE for organizations with less than $100,000 in gross receipts but charges of up to $135 apply for larger organizations.
Teaser tip promised above:
ILLUSTRATED SAMPLE FORMS 990 WITH “LEARNING” PROMPTS geared to small/medium organizations (2009 Form) and to all (2010 Form). To help small- and medium-size organizations understand the first two iterations of the Redesigned 990 (2008 and 2009) and to help filers work more readily with this year’s 2010 Form 990, I have prepared illustrated/annotated returns that incorporate the Form’s instructions and, as importantly, flag common-areas-of-misunderstanding and answer the most-often-heard questions. Access the illustrated 2010 Form (note Core Form and Schedule O are separate files) by clicking on the titles below:
Borenstein’s Illustrated 2010 Form 990 Core Form
Borenstein’s Sample 2010 Schedule O with Highlighted Intersection-with-Core-Form Part VI Instructions
The 2009 Form is available here: Borenstein’s Illustrated 2009 Form 990 CoreForm & Schedule O.
A sample 2009 Schedule A is available too: Borenstein’s Illustrated 2009 Schedule A.pdf
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