The CPA Desk

A Thought Leader Production by PKFTexas

Helpful Tips for Not-for-Profits Filling Out Form 990

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, this week’s guest host, and I’m here with Annjeanette Yglesias, one of our Tax Managers on our not-for-profit team. Annjeanette, welcome to the Playbook.

Annjeanette: Thanks, Jenn; it’s nice to be here.

Jen: So, as a tax advisor, you often work with non-profits on filling out their 990 Form. What is the 990 Form?

Annjeanette: Form 990 is the income tax form that a tax-exempt organization complete and file with the IRS annually.

Jen: You know, on the 990 Form, there are a lot of things that you probably give advice on the non-profits that they make sure that they pay attention to. What are some of those things that you ask them to look at?

Annjeanette: Well, there’s a lot of information contained on the 990, both financial information, but also general information about corporate governance, and things like that. But there are three things that typically I tell organizations to watch out for, and that would be their statement of functional expenses; their reporting of the officers, directors, and trustees; and also, their fundraising events.

Jen: Ok, and are there any things that they need to know, kind of, about those specific three things?

Annjeanette: Well, the functional expenses is really important. The IRS requires that all expenses be categorized by either management in general, program service, or fundraising expenses.

Jen: That sounds great. Now, I know you’ve written an article called the “Common Pitfalls,” is that something that we can find on our website, correct?

Annjeanette: That’s correct.

Jen: Perfect. Well, thank you so much for being here, and I appreciate it. We’ll have you back to talk about some more things for non-profits.

Annjeanette: Thanks, Jen.

Jen: To learn more about how we can help not-for-profits, visit pkftexas.com/notforprofit. This has been another Thought Leader Production, brought to you by PKF Texas, The Entrepreneur’s Playbook.