Henry+Horne Blog

More changes coming to form 990

The 990 is an annual informational reporting return that nearly all not-for-profit organizations must file with the IRS on an annual basis. It provides various information on the filing organization’s mission, programs, and finances. The 990 received a serious overhaul by the IRS a few years ago, and they’re still making changes to this day.

Most recently announced is a requirement for not-for-profits to report the number of hours an employee worked at affiliated organizations, instead of hours worked exclusively with the reporting organization.

TAnother recent change related to reporting professional fundraising services. Organizations are going to be required to include preparation of applications for grants and other assistance.

Finally, there has been a DECREASE in reporting requirements related to including addresses of key employees, officers and directors due to the fact that the 990 is made so publicly available. The IRS is also reminding non-profits that they are not required to include social security numbers of those individuals in the 990. I once read a study reported on by the Chronicle of Philanthropy that almost 20% of non-profits inappropriately publish private social security numbers on public tax documents, which of course potentially exposes donors and employees to an identity theft risk.

Jessica Puckett, CPA, CFE