Effective for 2008 tax years (returns filed in 2009).
Reasons for Redesign
The IRS extensively revised the format and c0ntent of
the form based on three guiding principles:
 Enhance Transparency
 Promote Tax Compliance
 Minimize Burden on the Filing Organization
990-N.pdf
Phased in Over Three Years
Beginning in 2008 tax years, an organization by file Form
990-EZ if it satisfies both the gross receipts and assets
tests:
TAX YEAR
Gross Receipts
Assets
2008 (Filed 2009)
> $25,000 & < $1 mil
< $2.5 mil
2009 (Filed 2010)
> $25,000 & < $500,000
< $1.25 mil
2010 and later
> $500,000 & < $200,000 < $500,000
f990--dft.pdf
New sections:
Line 50 – Five Highest
Compensated Employees who
received more than $100,000
Line 51 – Five Highest
Compensated Independent
Contractors who received more
than $100,000
NEW ITEMS TO NOTE:
 Total Number of Volunteers volgistics.pdf
TIMESHEET.xls
More Descriptive Organization Mission
 No more attachments as the new Form 990 provides
Schedules (16)
 Schedule B - Contributors
 Schedule D – Supplemental Financial Statements
 Schedule G – Fundraising
 Schedule J – Compensation Information
 Schedule M – Non-Cash Contributions
 Checklist of required Schedules
 Description of the exempt purpose achievements of
the three largest program service expenses. The IRS
will have a code attributable to type of program.
 Government, Management, and Disclosure – request
information about polices not required by the IRS.
 Voting members
 Relationships between members, officers, key





employees
Documentation of meetings
Written Policies
Monitor and enforce policies
Document Retention and destruction policy
Review and Approval determining compensation
 Schedule O – How the Organization makes its
governing documents, conflict of interest policy, and
financial statements available for public inspection
Statement of Functional Expenses
Separate Line Items:
10. Payroll Taxes
11. Fees for services
b. Legal
c. Accounting
f. Investment Management
14. Information Technology
24. Other expenses (expenses grouped together may not exceed
5% of total expenses
Example for Volunteer Expense Reimbursement
EXPENSE REIMBURSEMENT FORM.xls
Balance Sheet
 5. Receivables from current and former officers,
directors, trustees, key employees or other related
parties.
Schedule A (Required for 990-EZ & 990
Public Charity Status and Public Support
1. A church, convention of churches, or association of
churches
7. An organization that normally receives a substantial part of
its support from a governmental unit or from the general
public
Complete support schedule Part II – note includes current year’s activity.
9. An organization that normally receives:
(1)more than 331/3% of its support from contributions, membership fees, and
gross receipts from activities related to its exempt functions
(2)no more than 331/3% of its support from gross investment income and
unrelated business taxable income
Schedule G
Supplemental Information
Regarding Fundraising Activities
 How you raised the funds
 Written or oral agreement about professional
fundraising activities
 List all states in which organization is registered or
licensed to solicit funds – in NC you must file for a
solicitation license with the NC Secretary of State
http://www.secretary.state.nc.us/csl/Download.aspx
Schedule J
Compensation Information
 Checklist of Fringe Benefits Provided
 Follow written policy regarding compensation and
fringe benefits
 How the organization established the compensation of
the organization’s CEO/Executive Director
Checklist of items to provide tax
preparer:
 Trial Balance





Ensure you have line items with the newly required
presentation of the Statement of Functional Expenses
General Ledger
Bank Reconciliations & Bank Statements
Restricted Cash – documentation of restrictions
Loan history to or from employees & officers
Fixed Asset Inventory including:
Date Placed In Service
Detail Description of property
Cost
Depreciable Life using Straight Line
 Loan History with amortization schedules listing
 Payment Dates
 Payment amounts separated by interest & principal
 Grant Documents
 Tax Matters Person (Director/Officer signing the return)
Name and Title
 Backup of data
 Set of Financials
 Listing of contributors
Name
Address
Amount
Non-Cash Contributors
Description of property given
 Listing of Board of Directors & Officers (current and former)
Name and Title
Address
Average Hours Worked per Week
Compensation
Fringe Benefits
Allocation between Program, Management and General,
and Fund Raising
Reportable Compensation from Related Organizations
 List of Independent Contractors
Name
Address
Description of Services
Amount Paid
 Minutes from Meetings
 Policies and Procedures
TAX DEDUCTIONS FOR
VOLUNTEERS
Although you cannot deduct the value of your services
given to a qualified organization, you may be able to
deduct some amounts you pay in giving services to a
qualified organization. The amounts must be:
 Unreimbursed
 Directly connected with the services
 Expenses you had only because of the services you gave
 Not personal, living, or family expenses
Conventions – If you are a chosen representative
attending a convention of a qualified organization, you
can deduct unreimbursed expenses for travel and
transportation, including reasonable amount for meals
and lodging, while away form home overnight in
connection with the convention. Meals are not subject
to the same limitations as business related expenses
whereas they are limited to 50%.
Record keeping is very important. It is wise to keep
original receipts for all expenses incurred while
performing volunteer activities for a qualified
organization.
Examples of the types of expenditures that volunteers
may deduct on their tax returns as itemized
deductions include:
 Transportation – air and land ( auto mileage is presently .14 cents a mile), rental car,
parking, tolls…
 Communication – telephone, portion of email expenses attributable to qualified
organization, postage…
 Supplies purchased to perform volunteer duties
 Non-cash contributions of property (clothing and household items)
Refer to IRS Publication 526 Charitable Contributions and
consult your tax advisor. This publication can be found
on the IRS website:
www.irs.gov
Host Families and Tax Treatment
 Publication 526 Charitable Contributions
Foster Parents
A qualified organization must designate the
individuals you take into your home for foster care.
You can deduct expenses that meet both of the
following requirements:
1. They are unreimbursed out-of-pocket
expenses to feed, clothe, and care for
the foster child.
2. They must be mainly to benefit the
qualified organization.
You are not allowed to deduct contributions to a specific individual.
Thank You and Peace Be With You.
Web Sites & Contacts:
www.irs.gov
http://www.volgistics.com/0-0.htm
Lida L. Coleman, CPA
lcoleman@chcb.com
(919)968-4911