Get the free Form 990 (2020)

This form is used by the organization H-Net Humanities & Social Sciences Online to report its income, expenses, and activities for the tax year.

How to fill out form 990 2020

How to fill out form 990 2020

1. Gather the necessary information about your organization, including financial statements, mission, and officer details.
2. Download the Form 990 template from the IRS website or access it through tax software.
3. Complete the organization details section, including name, address, and EIN.
4. Fill out the financial information, including revenue, expenses, and net assets.
5. Provide a detailed report on the program services your organization undertakes.
6. Complete the governance section, detailing your board members and policies.
7. Report on any unrelated business income if applicable.
8. Review form for accuracy and completeness.
9. Sign and date the form.
10. Submit form electronically via the IRS e-file system or mail it to the correct address.

Who needs form 990 2020?

1. Organizations exempt from income tax under section 501(c) of the Internal Revenue Code, including charities and non-profits.
2. Organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more.
3. Certain smaller organizations that may choose to file Form 990 instead of Form 990-EZ or 990-N.

Form 990: A Comprehensive How-to Guide for 2020

Understanding Form 990: An Overview

Form 990 is a fundamental document that nonprofit organizations must file annually with the Internal Revenue Service (IRS). This form plays a crucial role in maintaining transparency within the nonprofit sector, providing essential information about the organization’s mission, governance, and finances. Filers report important details about their funding sources, organizational structure, and the distribution of resources. As such, Form 990 helps both funders and the public verify an organization’s legitimacy and evaluate its effectiveness.

For nonprofit organizations, filing Form 990 is not just a compliance requirement; it serves as a vital communication tool. It offers insight into how organizations utilize donations, manage their budgets, and implement their missions. Misrepresentations or inaccuracies in this form can jeopardize an organization's reputation and standing as a tax-exempt entity.

Who needs to file Form 990?

Tax-exempt organizations—including charitable nonprofits, foundations, and other tax-exempt entities—are required to file Form 990 unless they fall below a specific income threshold. Generally, organizations with annual gross receipts of $200,000 or more, or total assets of $500,000 or more, must file a full Form 990. Smaller organizations may qualify to file a simpler version, such as Form 990-EZ or Form 990-N.

• Tax-exempt organizations with gross receipts ≥ $200,000 must file the full Form 990.
• Organizations with total assets ≥ $500,000 also need to file Form 990.
• Smaller nonprofits can file Form 990-EZ or Form 990-N, depending on their receipts and assets.

Key components of Form 990

Form 990 consists of several sections that cover a comprehensive overview of an organization's operations and finances. Each section is specifically designed to extract distinct information, ensuring that stakeholders have a thorough understanding of the organization’s activities and fiscal health. Understanding the layout of Form 990 helps organizations navigate it more efficiently.

The major sections include the organization’s basic information, financial statements, governance practices, and detailed revenue and support data. Each segment plays a vital role—financial statements verify the organization’s income and expenses, while governance sections detail board composition and operational oversight.

Detailed explanation of line items

Understanding the specific line items within Form 990 is crucial for accurate reporting. These line items cover various aspects, such as total revenue, total expenses, and changes in net assets. Terms such as 'program service revenue' and 'management and general expenses' are also delineated to provide clarity on how funds are allocated.

• Total revenue: This encompasses all income sources, including donations, grants, and fundraising events.
• Total expenses: Reflects all organizational expenditures, segmented into program services, management, and fundraising.
• Net assets: Represents the organization’s financial standing—assets minus liabilities.

Step-by-step guide to filling out Form 990

Filing Form 990 may initially seem daunting, but breaking it down into manageable steps can simplify the process. The first stage involves gathering necessary documents and organizational details. A thorough collection of financial statements, board member information, and revenue sources will streamline completion.

Gathering necessary information

Before you start filling out Form 990, ensure you have the following documents on hand:

• Previous year's Form 990 for reference.
• Detailed financial documents, including balance sheets and income statements.
• Information on board members, including their roles and compensation.
• Donation records and details of contributions from the previous year.

Completing each section of Form 990

Now, let’s proceed to fill out the specific sections of Form 990:

• Step 1: Basic Information — Include organizational details, mission statement, and key contacts.
• Step 2: Financial Statements — Report on income, expenses, assets, and liabilities.
• Step 3: Governance and Management — Document board members, meeting protocols, and governance practices.
• Step 4: Revenue and Support — Provide information about donor contributions, including grants and charitable gifts.
• Step 5: Other Relevant Sections — Ensure compliance with disclosures required by the IRS.

Reviewing and finalizing your Form 990

Finalizing Form 990 necessitates careful review to prevent mistakes that could lead to negative consequences. After completing the form, take time to cross-check each section against your financial records to ensure consistency. It’s common for organizations to overlook minor details, yet these can lead to significant issues.

Checklist for review

A thorough checklist can streamline the review process, ensuring nothing essential is missed. Here’s what to consider:

• Ensure all financial figures are accurate and reconciled with bank statements.
• Verify that all board members listed are accurate and have provided necessary consent.
• Cross-reference program service descriptions with expenditures to confirm relevance.
• Look for any discrepancies in budget allocations and reported revenue.

Best practices for accuracy

If your organization finds the form filing complex, consider engaging a professional for assistance. Experienced accountants or consultants can offer tailored guidance, ensuring compliance and accuracy, especially for larger organizations with extensive reporting requirements.

Filing Form 990: Options and methods

Submitting Form 990 can be accomplished via electronic filing or paper submission. While both methods are valid, e-filing is increasingly recommended due to inherent advantages that simplify the process.

Electronic filing vs. paper submission

E-filing offers several benefits, including instant confirmation of submission and reduced chances of errors typically associated with paper forms. Organizations should choose an e-filing provider familiar with IRS requirements to aid in the process.

• Speed: E-filing ensures faster processing and confirmation.
• Error reduction: Digital forms guide users through required fields to minimize mistakes.
• Ease of tracking: E-filed forms can be easily tracked and stored electronically.

Deadlines and important dates

Form 990 is typically due on the 15th day of the 5th month after the end of the organization’s fiscal year. For many nonprofits following the calendar year, this means the deadline falls on May 15. Missing this deadline can result in penalties ranging from automatic fines to potential revocation of tax-exempt status.

Managing Form 990 after submission

Once Form 990 is submitted, organizations should implement robust record-keeping practices. Keeping copies of the submitted form along with supporting documents is essential for future reference and IRS inquiries.

Record keeping and retention

Document retention policies must align with IRS guidelines. Organizations typically retain Form 990 and associated documents for at least three years following submission. Consider setting up a systematic filing process to maintain compliance.

• Save digital and hard copies of Form 990 and supporting documents.
• Establish timelines for regular reviews of financial documents.
• Consider employing cloud-based platforms, such as pdfFiller, for secure and accessible document storage.

Responding to IRS inquiries

If the IRS has inquiries regarding your Form 990 or requests documentation, it’s essential to respond promptly and transparently. Being proactive in addressing any concerns can mitigate potential issues and maintain your organization’s credibility.

Utilizing pdfFiller for document management

pdfFiller enables organizations to enhance their document management capabilities. Its cloud-based platform allows users to securely edit, sign, and manage Form 990, making collaboration easy and efficient. With pdfFiller, accessibility is maximized as documents can be accessed from anywhere.

Interactive tools and resources

Incorporating interactive tools can bolster your filing process significantly. pdfFiller offers templates and fillable forms specifically designed for Form 990, allowing users to streamline their preparations efficiently.

Tools for enhanced filing and management

Templates can simplify the data entry process, while fillable forms ensure that all required fields are addressed accurately.

Additional resources from pdfFiller

Users can access webinars and guides related to Form 990 and broader nonprofit management topics through pdfFiller. These resources provide valuable insights for successful filing.

Community support and collaboration

Engaging with communities can amplify your filing experience. Online forums and discussion groups provide platforms for sharing experiences and obtaining real-time advice about Form 990.

Leveraging pdfFiller’s collaboration tools

Using pdfFiller’s collaboration features facilitates team-based document editing and feedback. Teams can work concurrently on Form 990 through shared access, enhancing overall efficiency.

FAQs about Form 990

As organizations prepare to complete Form 990, it's natural for questions to arise. Addressing common queries effectively can demystify the process.

Common questions

Organizations often wonder about the availability of past filings and how to correct errors discovered after submission. Typically, past Form 990s are publicly accessible through the IRS website or various nonprofit databases.

• How to obtain a copy of previously filed Form 990? Search the IRS database or third-party nonprofit databases.
• What if corrections are needed post-submission? File Form 990-X to amend any errors in your submission.
• What happens if we miss the filing deadline? Be prepared for penalties and apply for an extension if needed.

Troubleshooting issues

Common troubleshooting issues center around connectivity during filing, especially if filing electronically. Organizations should be prepared with a reliable internet connection, and should save progress frequently to prevent data loss.

For pdfFiller’s FAQs

How can I modify form 990 2020 without leaving Google Drive?

Using pdfFiller with Google Docs allows you to create, amend, and sign documents straight from your Google Drive. The add-on turns your form 990 2020 into a dynamic fillable form that you can manage and eSign from anywhere.

Can I create an electronic signature for the form 990 2020 in Chrome?

Yes. By adding the solution to your Chrome browser, you may use pdfFiller to eSign documents while also enjoying all of the PDF editor's capabilities in one spot. Create a legally enforceable eSignature by sketching, typing, or uploading a photo of your handwritten signature using the extension. Whatever option you select, you'll be able to eSign your form 990 2020 in seconds.

How do I edit form 990 2020 straight from my smartphone?

You may do so effortlessly with pdfFiller's iOS and Android apps, which are available in the Apple Store and Google Play Store, respectively. You may also obtain the program from our website: https://edit-pdf-ios-android.pdffiller.com/. Open the application, sign in, and begin editing form 990 2020 right away.

What is form 990?

Form 990 is an annual information return that certain tax-exempt organizations must file with the IRS to provide the public with information about their activities, governance, and finances.

Who is required to file form 990?

Most tax-exempt organizations such as charities, foundations, and non-profits with gross receipts of $200,000 or more, or total assets of $500,000 or more, are required to file Form 990.

How to fill out form 990?

To fill out Form 990, organizations must collect financial data, governance information, and details about programs and services offered. The form can be completed online through the IRS website or using various accounting software.

What is the purpose of form 990?

The purpose of Form 990 is to provide transparency to the public and the IRS about an organization's operations, financial status, and adherence to tax-exempt requirements.

What information must be reported on form 990?

Form 990 requires organizations to report information such as revenue, expenses, net assets, executive compensation, program services, and financial statements.