The New IRS Form 990: What Does It Mean For Your ... - Venable LLP

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Table of Contents Articles Written by Venable Attorneys: 1 The 2008 Form 990: Putting Your Best Foot Forward under Heightened Scrutiny Telling the IRS a Better Story: The Unveiling of the 2008 Form 990 Old and New IRS Form 990 – Comparison of Executive Compensation Requirements Employee Benefits Alerts: 2 Section 409A Final Regulations Delayed to 2009 Important Developments Affecting Health Plans Section 403(b) Tax-Sheltered Annuity Final Regulations Speaker Biographies: 3 Brock R. Landry Jeffrey S. Tenenbaum Thora A. Johnson Patricia M. McDermott George E. Constantine, III Nonprofit Practice Group Overview 4 Employee Benefits and Executive Compensation Practice Group Overview 5 PowerPoint Presentations 6 2008 Form 990 – Core Form and Schedules 7
Articles The 2008 Form 990: Putting Your Best Foot Forward under Heightened Scrutiny By Jeffrey S. Tenenbaum, Kristen E. Sitchler and Aaron H. Hiller Feb 14, 2008 The IRS retains the names of more than 1.3 million nonprofit entities in its master files. In 2004, the most recent year for which data is available, the IRS received 364,601 Forms 990 and 142,269 Forms 990-EZ. And yet, the Form 990 — the principal channel of communication between nonprofit organizations and the federal government — had not been revised in any significant way for nearly 30 years. After months of deliberation and public comment, guided by the principles of “transparency, compliance, and burden minimization,” the IRS has released the long-awaited final draft of the 2008 Form 990. The 2008 Form 990 replaces the current 9-page form and its 2 schedules with an 11-page “Core Form” with 16 schedules. In addition, the IRS has stated that it will release instructions to the new form in early 2008. The new form will apply and need to be used for the 2008 fiscal year (fiscal years that begin in 2008), so organizations that operate on a calendar year fiscal year will be required to file the new form by May 15, 2009, while those with non-calendar year fiscal years will not need to utilize it until some time after that. The Core Form and Schedules, as well as useful comments (or “Highlights”) that describe key changes in each of the new forms, can be found at www.irs.gov/charities/article/0,,id=176637,00.html. In the redesigned form, the IRS requests significantly more information than in previous years. However, the 2008 Form 990 also allows tax-exempt organizations to better describe their activities and contributions to the community. The organizations best prepared to take advantage of this opportunity — and least likely to be lost in the transition to the remodeled form — will be those that educate themselves on the new reporting requirements, implement policies and procedures that respond to those requirements, and plan to track information never before required by the IRS. Core Form. Every organization filing a Form 990 must complete the 11-page Core Form, which has been radically redesigned for use in 2008. Filers will find a summary of key information on the very first page, designed to capture a snapshot of the organization’s basic financial, governance and operational structure. The IRS also has moved the “Statement of Program Service Accomplishments” up to the second page of the form, allowing the filing organization to explain what it does before accounting for how it does it. In Part VI, a new section entitled, “Statements Regarding Governance, Management, and Financial Reporting,” a tax-exempt organization must now describe the composition of its board of directors, its governance and management structure, and its policies for promoting transparency and accountability to members and beneficiaries. For example, Part VI asks filing organizations how many voting board members it has, how many are independent, and whether any of the directors or officers have family or business relationships with one another or with key employees. Also notable in this section is a new question regarding local chapters. If an organization has local chapters, branches or affiliates, it must report whether it has written policies and procedures in place to ensure that the chapters are operated in a manner consistent with the filing organization’s tax-exempt purpose. Notwithstanding these requirements, the IRS has clarified that no particular policy or form of governance is compelled as a matter of law, and encourages organizations to fully explain and provide the context for their preferred method of administration. Part VII, regarding “Compensation of Officers, Directors, Trustees, Key Employees, and Five Highest Compensated Employees,” has changed in more subtle ways. All tax-exempt entities — not simply 501(c)(3) organizations —
Page 1: VALUE ADDED, VALUES DRIVEN ® . The
Page 5 and 6: earned and the year paid — has be
Page 7 and 8: Articles Association Trends Telling
Page 9 and 10: OLD AND NEW IRS FORM 990 - COMPARIS
Page 11 and 12: "OLD" FORM 990 "NEW" FORM 990 Whose
Page 13 and 14: Employee Benefits and Executive Com
Page 15 and 16: Employee Benefits Alert AUGUST 14,
Page 17 and 18: Employee Benefits Alert JULY 24, 20
Page 19 and 20: experience brings broad perspective
Page 21 and 22: Foundation Board of Trustees, the G
Page 23 and 24: Patricia M. McDermott Partner 202.3
Page 25 and 26: George E. Constantine Partner 202.3
Page 27 and 28: ASSOCIATION & NONPROFIT PRACTICE GR
Page 29 and 30: OUR EXPERIENCE Venable brings to ea
Page 31 and 32: Below are highlights of some of the
Page 33 and 34: development of a new professional c
Page 35 and 36: egulatory practice is filled with s
Page 37 and 38: CONCLUSION Widely regarded as havin
Page 39 and 40: modifying them to conform to change
Page 41 and 42: that our clients achieve their busi
Page 43 and 44: efficient and practical manner. Our
Page 45 and 46: 1 The New IRS Form 990: What Does I
Page 47 and 48: 3 THE CORE FORM 990 Thora Johnson V
Page 49 and 50: 5 THE SUMMARY ‣ New to the Form 9
Page 51 and 52: 7 SNAPSHOT OF REVENUE ‣ Total con
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9 WHAT’S NOT THERE (AND WAS IN TH
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11 STATEMENT OF PROGRAM SERVICES
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13 OTHER IRS FILINGS AND TAX COMPLI
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15 QUESTIONS REGARDING BOARD AND MA
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17 AND MORE QUESTIONS REGARDING BOA
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19 MORE QUESTIONS REGARDING POLICIE
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21 DISCLOSURE ‣ Make its Form 102
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23 REMAINING SECTIONS OF CORE FORM
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25 FORM 990 REPORTING: EXECUTIVE CO
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27 EXECUTIVE COMPENSATION - FORM 99
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29 COMPENSATION REPORTING - PURPOSE
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31 2008 FORM - GENERAL STRUCTURE FO
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33 CHANGES MADE BY DISCUSSION DRAFT
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35 THRESHOLDS FOR SCHEDULE J REPORT
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37 ADDITIONAL SCHEDULE J QUESTIONS
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39 PREPARING FOR IMPLEMENTATION ‣
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41 OVERVIEW OF THE SCHEDULES ‣ 16
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43 SCHEDULE A ‣ Change now allows
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45 SCHEDULE B ‣ No changes - requ
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47 Schedule D ‣ Supplemental Fina
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49 Schedule F ‣ Activities outsid
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51 Schedule F ‣ Requires grantmak
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53 Schedule G ‣ Describe relation
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55 Schedule I ‣ Grants and Other
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57 Schedule K ‣ Supplemental Info
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59 Schedule M ‣ Non-Cash Contribu
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61 Schedule N ‣ Liquidation, Term
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63 Schedule R ‣ Related Organizat
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65 Summary ‣ Significant new info
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Form 990 (2008) Part III Statement
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Form 990 (2008) Part IV 28 a 32 33
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Form 990 (2008) Part VI Governance,
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Form 990 (2008) Part VII Continued
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Form 990 (2008) Page 10 Part IX Sta
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SCHEDULE A (Form 990 or 990-EZ) Dep
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Schedule A (Form 990 or 990-EZ) 200
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Schedule B (Form 990, 990-EZ, or 99
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SCHEDULE C (Form 990 or 990-EZ) Dep
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Schedule C (Form 990 or 990-EZ) 200
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SCHEDULE D (Form 990) Department of
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Schedule D (Form 990) 2008 Part VII
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Schedule D (Form 990) 2008 Part XIV
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Schedule F (Form 990) Department of
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Schedule F (Form 990) 2008 Page 3 P
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SCHEDULE F-1 (Form 990) Department
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Schedule F-1 (Form 990) 2008 Page 3
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Schedule G (Form 990 or 990-EZ) 200
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SCHEDULE H (Form 990) Department of
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Schedule H (Form 990) 2008 Part VIV
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SCHEDULE I (Form 990) Department of
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SCHEDULE I-1 (Form 990) Department
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SCHEDULE J (Form 990) Department of
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Schedule J (Form 990) 2008 Page 3 P
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SCHEDULE J-2 (Form 990) Department
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Schedule K (Form 990) 2008 Page 2 P
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SCHEDULE M (Form 990) Department of
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SCHEDULE N (Form 990) Department of
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Schedule N (Form 990) 2008 Part III
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Schedule N-1 (Form 990) 2008 Part I
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Schedule O (Form 990) 2008 Name of
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Schedule R (Form 990) 2008 Page 2 P
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Schedule R (Form 990) 2008 Page 4 P
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Schedule R-1 (Form 990) 2008 Page 2
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Schedule R-1 (Form 990) 2008 Part I
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Schedule R-1 (Form 990) 2008 Part V
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The New IRS Form 990: What Does It Mean For Your ... - Venable LLP

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