Financial Management of Nonprofits College of Public and Community Service University of Massachusetts Boston ©2010 1

 IRS reporting form for nonprofits  Some states also require it  Some states accept voluntary submission  Nonprofits with less than $5,000 income are exempt from federal and some state submission  Churches and governmental orgs are also exempt, unless 501(d) 2

 <$5,000 income—exempt, except for filing notice  $5,000 - $50,000 income—Form 990N or 990  $50,000 - $200,000 income and assets <$500,000—Form 990EZ  $200,000 income or more or assets > $500,000—Form 990 3

 501(a), description  501(c), public charities and foundations  501(d), service and fraternal organizations  527(a) foundations and political orgs doing charitable work 4

 Instructions and forms at nstructions.html?value=990&criteria=formN umber&submitSearch=Find  IRS courses at StayExempt.irs.gov  IRS video series at /0,,id=210358,00.html /0,,id=210358,00.html 5

 Statement of Revenue (cash flow)  Statement of Functional Expenses  Balance Sheet  Compensation info on senior officers  Audit statement 6

 Independent Governing Board  Officers and their authority  Policies and Procedures  Family or business relationships  Changes in organization 7

 Mission of org  Services, objectives, and accomplishments  Activities promoting exempt purpose  Donations  Programs  Grants and Contracts 8

 Offices outside U.S.  Activities or services outside U.S.  Donations to or from foreign organizations  Business relations with foreign organizations 9

 Postcard/web filing for small 501c(3)s  Gross receipts less than $25,000  Required for maintaining exemption  Affirmation of receipts < $25,000 10

 Conflicts of interest  Whistleblowing  Document retention and destruction  Investing and joint ventures 11

 Gift acceptance  Conservation easements  Expense reimbursement  Executive compensation  Parent-subordinate org consistency 12

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