Understanding the "Most Common" Form 990 Schedules A, B & O
“C the B A D D O G”' is a handy phrase used to remember the SIX most common 990 Schedules – A, B, C, D and G, along with the key governance and policy asks (with required narrations) appearing upon the always-mandatory Schedule O. This class covers the big three of these six – Schedule A (required of all 501(c)(3) organizations); Schedule B (required for many (c)(3)s as well as certain non-(c)(3)s); and the key and most troublesome lines of Schedule O. The approach to all three is designed to: (1) demystify the Schedule A overall and then demystify the application of the two public support tests); (2) address common misconceptions concerning the Schedule B's reporting of donors; and (3) highlight the reach and underlying disclosure obligations behind Schedule O’s most sensitive lines.
The benefits of a 501(c)(3) organization being classified as a public charity rather than a private foundation (and how Schedule A, Part I "claims" qualification as such)
The public policy precepts and approach preparers need apply in demonstrating filer has met the predominant "public support test" which is demonstrated at Schedule A's Part II
The overarching needs and preparation tasks of Schedule B and related worksheets, including which donors are to be listed and with what identifying information required (dependent on the filer’s 501(c)-subsection); and what information 501(c)(3) filers may omit from the 990’s public inspection copy
Objectives
Recognize function of Schedule A Part I in reporting the primary basis of a filer’s non-private foundation classification in the tax year, regardless of prior years' qualification
Identify the revenue input differences underlying each of the two public support tests' bottom-line "public support” percentage-result evaluated over rolling five tax year periods
Understand "public support" as a measure of donors’ diversity (or of those purchasing related services) and appreciate that both public support tests apply limits on how much of a donor’s gifts (or a purchaser of service’s fees) can comprise “public support”
Identify the pertinent reporting conventions applicable in Schedule B for disclosing donors' contributions (and/or donors' identity to the IRS or via public inspection conventions)
Embrace and appreciate: (a) the key six inquiries in Part VI of the 990 and their public relations impact; (b) the narratives to be provided in relation to those key Part VI lines, and (c) that the face of the Form is misleading as to what are appropriate narratives!
Learn the objective criteria by which the Board can garner a “Yes” answer to the inquiry at Part VI’s Line 11a with respect having been provided the Form 990 pre-filing
Identify the multiple disclosures required when a management company is employed at any time in the tax year being reported upon and contrast these with Part VII-A reporting
Who Should Attend?
Public accounting tax and audit staff, and nonprofit organization's Treasurers, accountants, CFOs and other finance/compliance advisors
