The IRS Form 990

1. The IRS Form 990

2. What is the Form 990 • Form 990 is an annual reporting return that certain tax-exempt organizations must file with the IRS. It provides information on the filing organization's mission, programs, and finances. • Due annually by May 15 unless the appropriate extension is filed. • 1st extension due by August 15 • 2nd extension due by November 15 • Use IRS Form 8868 to request an automatic 3-month extension of time to file the 990 and also to apply for an additional (not automatic) 3-month extension if needed.

3. WHAT FORM MUST YOU FILE? • Effective FY 2010, any tax-exempt organization with gross receipts less than $200K or total assets less than $500K must file the 990 or 990 EZ • Any small organization with gross receipts of $25K or less must file a form 990-N, an electronic notice (postcard) with the IRS • Extensions are not available to those filing the 990-N e-Postcard.

4. What Happens if you Do not File a 990, 990EZ or 990N? • If you do not file your e-Postcard on time, the IRS will send you a reminder notice but you will not be assessed a penalty for late filing the e-Postcard. • However, an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year.

5. The 990 Objectives • The 990 is intended to increase the transparency of tax-exempt organizations and present the IRS and stakeholders with a realistic picture of entities and their operations, • Promote Tax Compliance, and • Minimize Filing Burden to Organizations.

6. KEY AREAS OF THE FORM 990 The key areas of increased transparency and disclosures are in the following areas: • Governance Documents* • Annual Review of the 990 by boards and executive management • Executive Compensation • Political Activities and • Foreign Transactions

7. Governance • This section helps to determine whether the organizations have policies in place that will help them stay compliant with the law. • This section has three parts– the organization’s governing body and management, its governance and management policies, and its disclosure practices.

8. GOVERANCE • In Part VI, Section A, question 10: Did your board review the 990 before it was filed? • What process did the board use to review the form? The process has to be described in 990-Schedule O. • How many voting members are on the governing body and how many are independent?

9. GOVERANCE • In Part VI, Section B, question 12: The IRS wants to know if your organization has a written conflict of interest policy. • In Part VI, Section B, question 13: Does your organization have a whistleblower policy—in other words, policies and procedures that enable individuals to come forward with information on illegal practices or violations of organizational policies? • In Part VI, Section B, question 14: Does your organization have a written document retention and destruction policy?

10. GOVERANCE • In Part VI, Section C, question 18: The IRS wants charitable organizations to make information about its operations, including its governance, finances, programs, and activities, widely available to the public. • The 990 lets you indicate how you make this information available: on your own website, on another website (Guidestar, for example), or upon request (at your office or via mail within 14 days, for example).

11. More Information • www.irs.gov CLICK ON FORMS & PUBLICATIONS • SEARCH FOR THE FORM BY NUMBER • Publication 557 for Tax-exempt status for your organization • Compliance Guide for Tax-exempt organization

12. AFFILIATE ANNUAL FINANCIAL DISCLOSURE TO ACNM-WHY? It is required as part of our IRS “group ruling” which allowed our affiliates to gain non-profit tax status through the national organization rather than each having to do so separately.

13. What is a group exemption? • When the IRS recognizes a group of organizations as tax-exempt if they are affiliated with a national organization. • This avoids the need for each of the organizations to apply for exemption individually. • This is an administrative convenience for both the IRS and organizations with many affiliate organizations.

14. IRS GROUP EXEMPTION Requirements for both Organizations ACNM Requirements: • Submit annual report to IRS annually on behalf of the group due Oct. 31, 2011 • Develop standard governing documents • Provide each affiliate an annual financial reporting template Affiliate Requirements: • Follow affiliate governance policies • Annual filing of 990 or 990-N postcard are current • Submit to ACNM national a brief annual financial report (template will be provided)

15. Affiliate Financial Requirements • Maintain an accounting tracking of asset, liabilities, revenue & expenses • Maintain the same fiscal year as ACNM National (Jan-Dec) • Provide a brief annual financial report to ACNM national • Disclose annually to ACNM national whether you have filed the IRS 990 or 990-N postcard • Comply with applicable state & federal laws

16. Federal Tax Status • Affiliates and ACNM national are classified as IRS 501(c)6 membership associations • This means that we are a not-for-profit (vs. a charitable) organization • Dues, donations, and other monies received by ACNM and/or affiliates may not be classified by individuals or organizations as charitable or non-taxable contributions but may be classified as a normal business expense.

17. STATE TAXES • Federal tax exemptions do not carry over into state jurisdictions • Each affiliate should contact its state department of revenue to determine state tax status

18. Annual Financial Disclosure To ACNM • Must include the following: • Reporting template will be released December 1, each year • Activity at December 31, each year • Due to ACNM by March 31, of the following year.

19. OPEN FOR DISCUSSION