Association Executive - January/February 2008 - (Page 21)

Form 990 OMB No. 1545-0047 Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) Department of the Treasury Internal Revenue Service (77) Open to Public The organization may have to use a copy of this return to satisfy state reporting requirements. Inspection , 20XX, and ending , 20 D Employer identification number A For the 20XX calendar year, or tax year beginning B Check if applicable: Address change Name change Initial return Termination Amended return Application pending Please C Name of organization use IRS label or print or Number and street (or P.O. box if mail is not delivered to street address) type. See Specific City or town, state or country, and ZIP + 4 Instructions. F Name and address of Principal Officer: G Website: H Enter amount of gross receipts $ K Organization type (check only one) L 501(c) ( Year of Formation: Part I Summary 1 Briefly describe the organization’s mission: Activities & Governance 2 List the organization’s three most significant activities and the activity codes (Part IX): Code a b Code c 3 Enter the number of members of the governing body (Part III, line 1a) 4 Enter the number of independent members of the governing body (Part III, line 1b) 5 Enter the total number of employees (Part VIII, line 9a) 6 Enter the number of individuals receiving compensation in excess of $100,000 (Part II, line 2) 7 Enter the highest compensation amount reported on Part II, Section A (sum of columns D and E) 8a Enter officer, director, trustee, and other key employee compensation (Part V, line 5, column (B)) % b Divide line 8a by line 17 of as 07 ft 20 ra 4/ D /1 06 Room/suite E Telephone number ( ) 20XX J Books increased responsibilities and higher personal risks stemming from their board service. Some not-for-profit leaders fear the disclosures that are already required— not to mention those that are on the way—could push volunteer board members to the breaking point, causing them to question whether they should continue their charitable activities. I Accounting method: Cash Accrual In care of Located at Other ) (insert no.) 4947(a)(1) or 527 Telephone number ( ) Noncompliance: Not an Option Uneasy about new disclosure requirements, some organizations have filed extensions to delay the release of information or have provided incomplete answers. But this approach to addressing the new requirements opens organizations up to unnecessary risks. Penalties for noncompliance are steep. If the IRS rules that a not-for-profit failed to fully disclose information, it can be considered a non-filer and penalized $100 a day up to $50,000. Organizations also risk possibly losing their exempt status. Rather than resisting or trying to circumvent the additional disclosures, not-for-profits need to find ways to effectively address the requirements while minimizing any negative impact on their board members and organizations. A first step is to understand the nature of the additional information the IRS seeks. M State of legal domicile Code 3 4 5 6 7 8a 9a Enter total gross unrelated business revenue from Part IV, line 14, column (C) 9a b Enter net unrelated business taxable income from Form 990-T, line 34 b 10 Check this box if the organization discontinued its operations or disposed of more than 25% of its assets and attach Schedule N. Amount % of Total 11 12 13 14 15 16 Contributions and grants (Part IV, line 1g, column (A)) Program service revenue (Part IV, line 2g, column (A)) Membership dues and assessments (Part IV, line 3, column (A)) Investment income (Part IV lines 4, 5, 6, 8, 10d) Other revenue (Part IV, lines, 3, 7, 9d, 11c, 12c, and 13e, column (A)) Total revenue add lines 11 through 15 (must equal Part IV, line 14, column (A)) Revenues 100% 17 Program service expense (Part V, line 24, column (B)) 18 Management and general expenses (Part V, line 24, column (C)) 19a Fundraising expenses (Part V, line 24, column (D)) 19b Percentage of contributions (divide line 19a by line 11) % 20 Total expenses (must equal Part V, line 24, column (A)) 21 Net income (line 16 minus line 20) Beginning of Year Expenses 100% End of Year Net Assets or Fund Balance 22 Total assets (Part VI, line 17) 23 Total liabilities (Part VI, line 27) 24a Net assets or fund balances line 22 minus line 23 24b Total expenses (line 20) as percentage of net assets (line 24a) (i) Gross Revenue (ii) Expenses (Schedule G, Part III, line 7) %) (iii) Net to organization (Schedule G, Part III, line 8) % (iv) Divide column (iii) by column (i) Gaming & Fundraising 25 26 Gaming (Schedule G, Part III, line 1 column (d)) Fundraising (other (Schedule G, Part I, line 1b column (iii) (Schedule G, Part I, line 1b column (iv) (Schedule G, Part I, line 1b column (v) than gaming) total) total) total) Cat. No. 11282Y Form % For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. 990 (20XX) A Closer Look at Relationships schedules requiring greater detail in specific areas. Organizations will need to determine which of the 15 schedules are applicable to them based on their entity type and activities conducted. In a news release about draft Form 990, Lois G. Lerner, director of the IRS’ Exempt Organizations division, said most organizations should not experience “a change in burden” in complying with the proposed form. “However, those with complicated compensation arrangements, related entity structures, and activities that raise compliance concerns may have to spend more time providing meaningful information to the public,” she noted. The proposed form redesign comes at a time when many in the exempt community are expressing concerns about what they see as the already intrusive nature of questions on the current Form 990, particularly those pertaining to board member relationships. These questions are directed at volunteers who face The controversial disclosures are found in Part V-A, lines 75b and 75c of the current Form 990. (Questions about board members’ compensation and financial relationships with the organization have been moved to Part II of the proposed draft form.) Line 75b asks if any officers, directors, trustees, key employees, highest compensated employees, highest compensated professionals, or independent contractors are related to each other through a family or business relationship. continued on page 22 JANUARY/FEBRUARY 2008 AS SOC I A TI ON E X E C U TI V E 21

Table of Contents Feed for the Digital Edition of Association Executive - January/February 2008

Association Executive - January/February 2008 Contents From the CEO Good Governance Practices for 501(c)(3) Organizations A New Model: Helping Smaller Not-For-Profits with Their Endowment Management Inside NYSAE Book Beat Too Much of a Good Thing? Enhanced Form 990 Disclosures and Their Impact 7 Myths about Financial Planners An Executive's Guide to Responding to Third-Party Subpoenas Relationship Selling: Maximize Your Talk, Time & Tech to Keep Your Connection Strong Save the Dates Index of Advertisers

Association Executive - January/February 2008

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