Understanding the "Most Common" Form 990 Schedules: A,B and C

Overview

Session 7 of Borenstein’s Form 990 Foundational Series: ‘C the BAD DoG’ is a handy phrase to remind preparers of the Form 990’s five most frequently applied substantive Schedules (A, B, C, D, G) along with the ALWAYS-required Schedule O. This webinar addresses the first three of these substantive Schedules - A (required of all 501(c)(3) organizations); B (required for many (c)(3)s AND some non-(c)(3)s); and C (reporting on spheres of public policy intersection). The author/instructor’s approach to all three is designed to: (1) demystify the Schedule A overall (and explain the nature 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 preparer needs behind Schedule C’s three parts, including commonly missed Sched. C reporting obligations. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Objectives

After attending this presentation you will be able to...

• Recognize Schedule A's function of having filers report the primary basis of their non-private foundation classification in the tax period regardless of prior years' qualification
• Identify the revenue input difference that distinguishes the two public support tests' bottom-line "public support" percentage achieved over rolling five tax year periods
• Appreciate the notion of "public support" as coming in whole or part from "diverse donors," and the how in the case of the first public support test this means that most large donors may have a set limit imposed by which only a portion of their donation(s) count as public support
• Identify the pertinent reporting conventions applicable in Schedule B for disclosing donors' contributions (including when donors' identity may not need be disclosed to either the IRS or via public inspection conventions when donors' identity is shared with the IRS)
• Distinguish the conditions by which 501(c)(3) filers who employ the "no substantial part test" versus the 501(h)-elected-test are to complete Schedule C's Part II
• Identify the conditions by which a 501(c)(4), (5) or (6) filer will be required to report on receipts from dues-paying members to calculate impact of the "proxy tax"

Highlights

The major topics that will be covered in this class include:

• What 990 preparers need to know about the benefits of a 501(c)(3) organization being a public charity rather than a private foundation (and how Schedule A, Part I "claims" such status)
• The public policy precepts and resulting emphasis preparers must apply in approaching the predominant (and easier) "public support test" in favor of completion of Schedule A's Part II
• The overarching needs behind preparing Schedule B for filing and, as necessary, its related worksheet: which donors are to be listed and with what identifying information required to be provided to the IRS, depending on 501(c) status of the filer; and what information 501(c)(3) filers will omit from the public inspection copy of the 990
• Introduction to the baselines driving each of the Schedule C's three Parts: undertaking electioneering in favor of, or opposition to, candidates or the political parties supporting them (Part I); lobbying reporting when same is undertaken either in the tax year (for non-electors) or regardless of activities, when a 501(h) election is in place (Part II); and the existence of the so-called "proxy tax" and its demands when 501(c)(4), (5) or (6) organizations with dues-paying members incur electioneering or lobbying expenses as determined by a Code section that tracks non-exempt organization definitions

Designed For

Public accounting tax and audit staff, and nonprofit organization’s Treasurers, CFOs and other finance/compliance advisors

Prerequisites

None, although helpful to have some familiarity with the nonprofit sector.

Preparation

None

Notice

You will receive an email from CPA Crossings via Webex with instructions to access the webinar.