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Stephen J. Kelin, CPA, JD

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.

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Stephen J. Kelin, CPA, JD

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  1. 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. 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. 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. 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. 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. 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. 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. 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. 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 non-charitable related entity

  10. 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. 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. Schedule A • Part II • For use by Box 7 entities • 5-year test • Lines 14, 15 calculation • Lines 16a, 16b, 17a, 17b

  13. 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. 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. 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. Schedule L • Part I – Excess benefit transactions • Part II – Loans • Outstanding loan at year-end • “Interested Person” • Officers, directors, trustees and key employees

  17. 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. Schedule O • Required disclosures • Voluntary disclosures

  19. 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

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