National PTA’s
Form 990-EZ
Stephen J. Kelin, CPA, JD
March 6, 2012
National PTA’s Form 990-EZ
2012 National PTA Conference
Stephen J. Kelin, CPA, JD
• Nonprofit tax principal at Gelman, Rosenberg & Freedman CPAs
• 35+ years of experience providing tax services to tax-exempt
organizations, private foundations, colleges, healthcare organizations,
museums and other large nonprofit institutions
• Co-leads the firm’s consulting
and tax compliance services for
more than 600 nonprofit clients
• Monitors changing statutory
and regulatory environments
2
National PTA’s Form 990-EZ
2012 National PTA Conference
Overview
• Filing requirements:
• Form 990-N
• Receipts “normally” < $50,000
• Form 990-EZ
• Gross receipts < $200,000; and
• Total assets < $500,000
• Form 990
3
National PTA’s Form 990-EZ
2012 National PTA Conference
990–EZ Schedules
•
•
•
•
•
•
•
•
A – Public Support Test
B – Contributors
C – Political Campaign and Lobbying Activities
E – Private Schools
G – Fundraising/Gaming Activities
L – Transactions with Interested Persons
N – Liquidation, Termination, Dissolution
O – Supplemental Information
4
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
•
•
•
•
•
Box B
Box F – Group exemption number
Box G – Accounting method
Box H – No single donor amount > threshold
Box K – Not eligible if:
• Sponsor of DAFs – See Line 44a
• Controlling organization – See Line 45a/b
5
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
•
•
•
•
Line 6b – Fundraising – Schedule G
Line 10 – Grants
Line 12 – Salary, other comp, benefits
Line 19 – Net assets at beginning of year:
• Must agree with net assets at the end of
year on prior return
• Line 20 – Other changes in net assets
6
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
• Part III – Lines 28-32 – Program service
accomplishments
• Allocation of expenses to “Program” rather
than “Administrative” or “Fundraising”
• Narrative that tells your story as effectively
as possible
7
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
• Part IV, Line 32 – Officers, Directors, Trustees
and Key Employees
• Address can be care of the organization
• Definitions for key employees includes
$150,000 threshold
• W-2 reporting irrespective of filing year-end
• Higher of Box 1 or Box 5
• Column (d) and (e) for benefits and
other compensation
8
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
•
•
•
•
Line 33 – New activities
Line 34 – Significant changes to governing documents
Line 35 – Unrelated Business Income
Line 36 – Liquidation, Dissolution, Termination
• Schedule N
• Line 38 – Loans to/from “Interested Person”
at year-end
• Schedule L
9
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
• Line 41 – States where copy of 990 filed
• Line 42 – Foreign bank accounts
• Treasury filings for entity and
possibly officers
• Line 46 – Political campaign activities
• Line 47 – Lobbying
• Line 49 – Transfers to exempt noncharitable related entity
10
National PTA’s Form 990-EZ
2012 National PTA Conference
Items of Note – Form 990-EZ
• Line 50 – HCE reporting
• Over $100K and not already on Part IV
• Line 51 – “Independent Contractors”
> $100K for services
• Line 52 – Schedule A
11
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule A
• Part I
• “Public Charity” vs. “Private
Foundation”
• Broad public support
• Large number of small donors rather
than limited number of large donors
• Box 7 for most PTA affiliates?
12
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule A
• Part II
•
•
•
•
For use by Box 7 entities
5-year test
Lines 14, 15 calculation
Lines 16a, 16b, 17a, 17b
13
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule B
• “General Rule” ($5,000) vs. “Special Rule”
• Part II
• Column (b) and (c) not public information
• Redacted by IRS
• Public Disclosure copy in affiliate office
• Column (d)
• Non-cash and Part III
• Part III – Description, fair market value, date
14
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule C
• “Political Intervention”
• No threshold – Loss of exemption!
• Excise tax
• Lobbying
• Statutory rule – Not a substantial part
• Loss of exemption
• 501(h) election
• Excise tax
• Loss of exemption
15
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule G
• “Fundraising Activities”
• Part I – N/A for 990-EZ filers
• Part II – Fundraising events
• Two largest events; all others
• Line 1 vs. Line 2
• Part III – Gaming
16
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule L
• Part I – Excess benefit transactions
• Part II – Loans
• Outstanding loan at year-end
• “Interested Person”
• Officers, directors, trustees and key employees
17
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule N
• Liquidation, Termination, Dissolution or
Significant Disposition of Assets
• Line 2 – Successor entities
• Significant disposition
• 25% of assets, based upon fair market value
18
National PTA’s Form 990-EZ
2012 National PTA Conference
Schedule O
• Required disclosures
• Voluntary disclosures
19
National PTA’s Form 990-EZ
2012 National PTA Conference
Other Items
• 2011 Form 990-EZ – What’s New
• http://www.irs.gov/charities/index.html
• Forms; instructions
• $2.25 National PTA dues
• Should be balance sheet transaction to affiliates
• No reporting as income/expense
20
4550 Montgomery Avenue, Suite 650N • Bethesda, MD 20814
Connect with Us
Stephen J. Kelin, CPA, JD
Email: skelin@grfcpa.com
Telephone: (301) 951 – 9090
Website: www.grfcpa.com