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Tuesday, September 23, 2008

New 990 To Do List

Even if your nonprofit is lucky enough to have a November 30 year end there is still plenty of stuff you need to be doing right now to get ready for this new reporting form. Thanks to Brian for this great list, it has been something I have been meaning to do for CAN as well as share with everybody. This is a work in progress, some things will be added as we go through this stuff but here is where it is so far:

THE NEW 990:

Required Policies
  • Conflict of interest policy
  • Whistle blower policy
  • Document retention and destruction policy
  • Joint venture policy
  • Expense reimbursement policy
  • Non-standard gift acceptance policy
  • Written debt collection policy (hospitals)

Practices & Procedures
  • Need to prepare a written document which sets forth the procedures by which the Board of Directors will review the Form 990 before it is filed
  • Document compensation reasonableness processes
  • Professional fundraisers agreement
  • Documentation regarding eligibility to receive grants

To Do List
  • Estimate the total number of volunteers utilized during the year
  • Identify any new program service activities conducted during the year
  • Identify revenue and expenses for three largest program service activities
  • Ensure that filing all 1099s when required to do (non-employee services in excess of $600)
  • Prepare documentation to support classification of independent contractors
  • Ensure that organization is preparing Form W-2G when required
  • Make sure register with California Attorney General if conducting raffles and make sure undertake backup withholding if necessary
  • Identify non-cash contributions in excess of $5,000 for which public charity disposed of within 3 years after receiving
  • Document meetings of Board of Directors committees with authority to act
  • Write-up re how satisfy public disclosure requirements
  • Identify all key employees under the expanded definition
  • Break out the revenue and expenses from gaming activities from the general fundraising activities
  • Update Chart of Accounts (and audited financial statements) to include the expense categories listed on Part IX of the redesigned Form 990
Even if the phrase, "new 990" wants to make you stick your finger in your ears and say, "lalalalalalalalalalala" you can still go through this list and make sure your organization is more prepped than it is right now for the big event.

And please let me know if you think anything is missing from the list!

1 comment:

andrewg said...

Great resource, my organization just received tax exempt status last month. I guess I should be glad I didn't have to learn the old 990.