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National PTA’s Form 990-EZ
Stephen J. Kelin, CPA, JD
March 6, 2012
National PTA’s Form 990-EZ2012 National PTA Conference
Stephen J. Kelin, CPA, JD
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• Co-leads the firm’s consulting and tax compliance services for more than 600 nonprofit clients
• Monitors changing statutory and regulatory environments
• 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
National PTA’s Form 990-EZ2012 National PTA Conference
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Overview• Filing requirements:• Form 990-N • Receipts “normally” < $50,000
• Form 990-EZ • Gross receipts < $200,000; and • Total assets < $500,000
• Form 990
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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?
National PTA’s Form 990-EZ2012 National PTA Conference
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Schedule A
• Part II • For use by Box 7 entities• 5-year test• Lines 14, 15 calculation• Lines 16a, 16b, 17a, 17b
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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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
National PTA’s Form 990-EZ2012 National PTA Conference
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Schedule L
• Part I – Excess benefit transactions• Part II – Loans• Outstanding loan at year-end• “Interested Person”• Officers, directors, trustees and key employees
National PTA’s Form 990-EZ2012 National PTA Conference
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Schedule N
• Liquidation, Termination, Dissolution or Significant Disposition of Assets• Line 2 – Successor entities• Significant disposition• 25% of assets, based upon fair market value
National PTA’s Form 990-EZ2012 National PTA Conference
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Schedule O
• Required disclosures• Voluntary disclosures
National PTA’s Form 990-EZ2012 National PTA Conference
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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
Stephen J. Kelin, CPA, JDEmail: [email protected]
Telephone: (301) 951 – 9090Website: www.grfcpa.com
Connect with Us
4550 Montgomery Avenue, Suite 650N • Bethesda, MD 20814