Understanding the New 990 Form

by Richard L. Jay, President, Great Basin Youth Soccer League

It is a well-known fact that members of the U.S. Senate, House of Representatives and the IRS feel there are too many non-profit entities in the country, and have plans to reduce them by one third over the next five years. With that being said, the IRS has redesigned the 990 form for Non-Profit Organizations — it is now the longest it has ever been, and is very complicated. Failure to follow the new guidelines could result in losing your 501c3 status.

US Youth Soccer has a great power-point presentation to help us understand the complexities of this new form, which I’ve linked to here.

Here are some highlights of the presentation:

• Organizations exempt from income tax under section 501(a) must file an annual information return (Form 990 or the IRS regarding exempt organization tax law and regulations, 990-EZ) or submit an annual electronic notice (Form 990-N), depending upon the organization’s gross receipts and total assets.
• It needs to include:
  • Mission or Significant Activity
  • Discontinued Operations or Major Dispositions
  • Number of Volunteers
  • Unrelated Business Revenue and Taxable Income
  • Revenue/Expenses
  • Donor-Advised Funds
  • Supporting Organizations
  • 501(c)(3) and Other Sponsoring
  • Organizations Maintaining Donor Advised Funds
  • Section 4966 Taxable Distributions
  • Distribution to Donor, Donor Advisor, or Related Person
  • Grants vs. Program Services
  • Program Service Revenue
  • Investment Income/Income from Investment of Tax-Exempt Bond
  • Proceeds/Royalties>
  • Rents
  • Gains (or Losses) from Sales of Assets Other Than Inventory
  • Fundraising Events-TOURNAMENTS
  • Total Revenue
• What policies do you have in place? Shed document, conflict of interest, whistle blower policy, etc.
• Disclosure area section C covers how you make your records available for the public? Remember, if you maintain an office, they must be available upon request; if no office, you have seven days to mail them to the person requesting them. You can not deny a person who has requested to see them. Question 19 is, how do you make this information available to the public?
• Typically, the Treasurer signs the form, not the President.
• Do not forget that the Board of Directors should receive a copy of the 990, and review and sign a form stating they have reviewed the 990.

These are just a few of the changes in the 990 form. Please don’t panic — get with your CPA or tax attorney to make sure you are following the new guidelines.