990 Summary for Board Review

The 990 is ready for review by the Board of Directors.  Members of the Board of Directors are given a [ TIME FRAME] review period to consider the content of the 990 and make comments before it is submitted to the IRS.  This memo outlines the key issues for board members to consider in their review.  After the review period, the 990 and electronic submission form are signed by the [TITLE] and the 990 is filed electronically by the auditors.  The final deadline for submission is [DEADLINE]

The IRS date on the 990 is the year in which the fiscal year began.  The year being reviewed is [FISCAL YEAR BEGINNING AND ENDING]. 

All the numbers in the 990 have been reviewed to confirm that they match with our trial balance and audited financials.  Please note that the 990 numbers match the audited financials except for [unrealized loss on the endowment] [donated services].  These items are reported under GAAP accounting in the audited statements, but not on the 990 per IRS regulation.

The key sections of the 990 for you to review are:

Part IV: the IRS asks a series of questions regarding operations to determine which schedules need to be submitted with the return.  All the questions all have the same answers as last year.

Part VI: The board policies.  There are no changes to these from last year.

Part VII:  This is a list of all board members. This list is intended to include any board member who was active for any portion of the fiscal year. The 990 also lists the key employee, as defined by the IRS and additional employees who were paid more than $100,000 in the calendar year ended during the fiscal year..

Schedule A is the public support test, which all non-profits must pass to maintain their charitable status.  We don’t have any issues with the public support percentage.  The organization's public support percentage is [XXX%] (the minimum percentage is 33%)

Schedule B lists all donors over $5,000.  This information is reported to the IRS, but not made public in the copies released to Guidestar. (www.guidestar.org)

Schedule D reports a few different details:

1. Part VI details the fixed assets.

2. Parts XI and XII show how the 990 ties to the audited financial statements.  Line 2a shows the revenue adjustment for unrealized gains and line 4b the reduction in revenue and expense for donated services.

Schedule G shows the revenue and expenses related to the [FUNDRAISING EVENT].  T

Schedule I shows the cash and non-cash assistance PAID

Schedule M shows the in-kind contributions recorded during the year.

Schedule O are the notes from all the earlier sections where more information was requested. This includes additional program descriptions as well as a description of the organization’s process for reviewing the 990.