The EDTC Incubator

Contents
What Activities May Jeopardize a
Public Charity’s Tax-Exempt Status? ......................................................................................4
Private Benefit and Inurement ......................................................................................................4
Political Campaign Intervention ...................................................................................................4
Legislative Activities .....................................................................................................................7
What Federal Information Returns,
Tax Returns and Notices Must be Filed? ...............................................................................8
Form 990, Return of Organization Exempt From Income Tax, Form 990-EZ,
Short Form Return of Organization Exempt From Income Tax and Form 990-N,
Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required To
File Form 990 or 990-EZ ..............................................................................................................8
Form 990 and Form 990-EZ ....................................................................................................... 10
Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not
Required to File Form 990 or 990-EZ ........................................................................................ 11
Form 990-T, Exempt Organization Business Income Tax Return ............................................. 12
1
Employment Tax Returns ........................................................................................................... 13
Why Keep Records? .....................................................................................................................14
Evaluate Charitable Programs .................................................................................................... 15
Monitor Budgetary Results ........................................................................................................ 15
Prepare Financial Statements .................................................................................................... 15
Prepare Annual Information and Tax Returns ............................................................................ 15
Identify Sources of Receipts ...................................................................................................... 15
Substantiate Revenues, Expenses and Deductions
for Unrelated Business Income Tax (UBIT) Purposes ............................................................... 15
Comply with Grant-Making Procedures (Grants to Individuals) ............................................... 16
Comply with Racial Nondiscrimination Requirements (Private Schools) ................................. 16
What Records Should be Kept? ...............................................................................................16
Accounting Periods and Methods ............................................................................................. 18
Supporting Documents .............................................................................................................. 18
How Long Should Records be Kept? .....................................................................................18
Record Retention Periods .......................................................................................................... 19