990 Handbook : A Line-by-Line Approach Book

	Preface
	Acknowledgments
	About the Author
Ch. 1	Tools, Concepts, Filing, and Reporting Requirements	1
1.1	Find Out Why the Nonprofit Qualifies for Tax Exemption	4
1.2	Filing Forms 990	5
1.3	Public Inspection of Forms 990 and 1023 or 1024	11
1.4	Accounting Issues	13
App. 1A	Form 8868	22
Ch. 2	Successful Preparation of Form 990s and 990-EZ	25
2.1	Form 990-EZ - Short Form	25
2.2	Form 990, Part I - Income and Expense	27
2.3	Part II - Statement of Functional Expenses	38
2.4	Part III - Statement of program Service Accomplishments	45
2.5	Part IV - Balance Sheet and Reconciliation	46
2.6	Part V - List of Officers, Directors, and Trustees	47
2.7	Parts VI and IX - Other Information	51
2.8	Part VII - Analysis of Income-Producing Activity	54
2.9	Reporting by Political Organizations	61
App. 2A	Form 990-EZ	65
App. 2B	Form 990	67
App. 2C	Schedule B	76
App. 2D	UBI Codes	79
App. 2E	Exclusion Codes	80
App. 2F	Form 8871	81
App. 2G	Form 8872	83
Ch. 3	Form 990, Schedule A: For [section]501(c)(3) Organizations	85
3.1	Parts I and II - Compensation	86
3.2	Part III - Statement About Activities	87
3.3	Part IV - Reason for Non-Private Foundation Status: [section]509(a)(1)	88
3.4	Part IV - Service-Providing Public Charities: [section]509(a)(2)	95
3.5	Part IV - Supporting Organizations: [section]509(a)(3)	96
3.6	Differences between [section]509(a)(1) and [section]509(a)(2)	97
3.7	Solving Troublesome Public Status Problems	100
3.8	Part V - Private School Questionnaire	102
3.9	Part VI-A - Lobbying Expenditures by Electing Public Charities - and Part VI-B - Lobbying Activity by Nonelecting Public Charities	103
3.10	Part VII - Information Regarding Trasfers, Transactions, and Relationships with Other Organizations	105
App. 3A	Schedule A	106
App. 3B	Form 5768	114
Ch. 4	The Private Foundation Return	115
4.1	Successful Completion of Form 990-PF	115
4.2	The Part I Columns	118
4.3	Line-by-Line Instructions for Revenues	120
4.4	Line-by-Line Instructions for Expenditures	125
4.5	Part II - Balance Sheets	129
4.6	Part III - Analysis of Changes in Net Worth or Fund Balances	130
4.7	Part IV - Capital Gains and Losses for Tax on Investment Income	131
4.8	Reports Unique to Private Foundations	132
4.9	Part V - Reducing the Tax Rate	132
4.10	Part VI - Calculating the Excise Tax	132
4.11	Part VII-A - Proof of Ongoing Qualification for Exemption	133
4.12	Questions Seeking Evidence That No Sanctions Apply	137
4.13	Part VIII - Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors	138
4.14	Part IX-A and B - Summary of Charitable Activities and Program-Related Investments	138
4.15	Part X - Minimum Investment Return	139
4.16	Part XI - Distributable Amount	139
4.17	Part XII - Qualifying Distributions	140
4.18	Part XIII - Undistributed Income	140
4.19	Part XIV - Private Operating Foundations	141
4.20	Part XV - Supplementary Information	141
4.21	Part XV - Grants and Contributions Paid During the Year or Approved for Future Payment	142
4.22	Part XVI-A - Analysis of Income-Producing Activity	143
4.23	Part XVII - Information Regarding Transfers to and Transactions and Relationships with Noncharitable Exempt Organizations	143
App. 4A	Form 990-PF	145
App. 4B	Form 4720	158
Ch. 5	Form 990-T: Exempt Organization Business Income Tax Return	167
5.1	What Is Unrelated Business Income?	168
5.2	Exceptions and Modifications from Tax	171
5.3	Unrelated Debt-Financed Income	175
5.4	Who Files Form 990-T?	178
5.5	Due Dates, Tax Rates, and Other Filing Issues	179
5.6	Normal Tax Income Rules Apply	182
5.7	The Unique Design of the 990-T	185
5.8	Categories of Deductions	186
5.9	Cost Allocations	190
5.10	In-Kind Donations	192
App. 5A	Form 990-T	193
Ch. 6	Successful IRS Communication	199
6.1	Understanding the IRS Exempt Organization Division	200
6.2	Reporting Organizational/Program Changes to the IRS	202
6.3	Changing Fiscal Year	204
6.4	Changing Accounting Method	205
6.5	When to Amend a Form 990	207
6.6	Changing Public Charity Class	207
6.7	When the IRS Examines	210
	Notes	211
	Index	223