'C the BAD DoG' is a handy phrase denoting the Form 990's five most frequently applied Schedules. This session covers the first three of those: for 501(c)(3) organizations, the Schedule A; for both (c)(3)s AND many non-(c)(3)s, the Schedule B; and thereafter the Schedule C.
Public accounting tax and audit staff, and nonprofit organization's Treasurers, CFOs and finance/compliance staff
After attending this presentation you will be able to...
- Recognize Schedule A’s function for 501(c)(3) organizations
- Realize that filers are to report the primary basis for their non-private foundation classification in the tax period being filed upon regardless of prior years' qualification
- Identify the revenue input difference that distinguishes the two public support tests' evaluation of 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 and 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"
The major topics that will be covered in this class include:
- What every 990 preparer needs to know about the benefits of a 501(c)(3) organization being a so-called public charity rather than a private foundation (including understanding how Schedule A, Part I "claims" such qualification)
- The public policy precepts and resulting emphasis preparers must apply in approaching the predominant "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
None, although helpful to have some knowledge of how the Form 990 is structured