1. Form 990: Top 10 Compliance Pitfalls
Common Reporting Misconceptions
February 28, 2017
Jorge Estrada, CPA
Senior Manager, Nonprofit Tax
Janna Goudarzi, MST
Supervisor, Nonprofit Tax
Katelyn Miller, CPA

2. Welcome

3. Technical Difficulties?
Housekeeping
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Housekeeping
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5. Housekeeping Webinar Objectives Learning Objective
To provide attendees with a better understanding of how to comply with complex areas of Form 990 reporting.
Instructional Delivery Methods
Group Internet-based
Recommended CPE
1.0 CPE
Recommended Fields of Study
Accounting & Audit
Prerequisites
None required
Advance Preparation
None
Program Level
Basic
Course Registration Requirements
Refund Policy
No fee is required to participate in this session.
Cancellation Policy
In the event that the presentation is cancelled or rescheduled, participants will be contacted immediately with details.
Complaint Resolution Policy
Gelman, Rosenberg & Freedman is committed to our seminar participants’ 100% satisfaction and will make every reasonable effort to resolve complaints as quickly as possible. Please contact any concerns.

6. Presenters Meet Your Instructors Jorge Estrada, CPA
Senior Manager, Nonprofit Tax
Janna Goudarzi, MST
Supervisor, Nonprofit Tax
Katelyn Miller, CPA
Supervisor, Nonprofit Tax

7. Agenda
1 | Program Service Accomplishments 2 | Governance and Policies 3 | Compensation Reporting 4 | Statement of Activities Reporting 5 | Schedule A – Public Support Test 6 | Schedule C – Lobbying & Political 7 | Schedule L – Interested Persons 8 | Schedule G – Fundraising Events 9 | Schedule R – Related Organizations 10 | Unrelated Business Income

8. Polling Question #1
When do you start thinking about and compiling information for your Form 990?
Throughout the year
During the year-end financial statement preparation
2 weeks before the filing deadline

9. Program Service Accomplishments
Form 990, Part III
Important to review and update annually
New significant programs
Consistent with financial statements

10. Governance & Policies Form 990, Part VI Board member independence
Definition of “member”
Form 990 review
States requiring a copy of the Form 990

11. States Requiring a Copy of the Form 990
This list will depend on the organization, but for a 501(c)(3) in all states
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Utah
Virginia
West Virginia
Wisconsin
Alabama
Arkansas
California
Connecticut
Florida
Georgia
Hawaii
Illinois
Kansas
Kentucky
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
New Hampshire
New Jersey
New Mexico
New York
North Carolina

12. Compensation Reporting
Form 990, Part VII
Definition of Officer/KE/HCE
Calendar vs. fiscal year
Compensation and benefits to report
Independent contractors

13. Statement of Activities Reporting
Form 990, Parts VIII & IX
Grants vs. contracts
Donated services
Functional allocation ratios

14. What area of the Form 990 do you struggle with most?
Polling Question #2
What area of the Form 990 do you struggle with most?
Compensation reporting
Identifying interested persons
Related parties
Public support test
Special event reporting

15. Schedule A Public Support Test Importance of public support test
509(a)(1) vs. 509(a)(2)

16. Lobbying & Political Activities
Schedule C
Lobbying & Political Activities
Distinguishing between lobbying and political expenditures
Not one size fits all (exempt organizations)
501(h) election

17. Schedule G Fundraising Events Breakout of charitable contributions
Notification to attendees
Direct expenses

18. Transactions with Interested Persons
Schedule L
Transactions with Interested Persons
Definition of an interested person
Updated guidance on required disclosures

19. Related Organizations
Schedule R
Related Organizations
Identifying related organizations
Controlled organizations
Reporting transactions

20. Unrelated Business Income
Form 990-T
Regularly carried
Unrelated to the organization’s exempt purpose
Income from a trade or business

21. Changes in filing deadlines
Updates
Changes in filing deadlines
Form 8868
FBAR

22. Are you current on the new deadlines?
Polling Question #3
Are you current on the new deadlines?
For a 12/31/16 nonprofit, what is the new due date after filing the first extension?
5/15/17
8/15/17
11/15/17

23. Key Takeaways Avoid Compliance Pitfalls Stay Current Be Proactive
Be aware of updates & changes to Form 990 regulations throughout the year
Be Proactive
Be proactive about gathering Form 990 information from rd parties
Evaluate often
Evaluate new activities/changes for impact on Form 990 reporting

24. Q&A

25. Get In Touch Jorge Estrada, CPA Janna Goudarzi, MST
(301)
Janna Goudarzi, MST
Katelyn Miller, CPA

26. Join us again
for our next webinar,
“Effective IT Controls for Financial Statement Audits: Is Your Organization at Risk?”
March 29, 2017, 11:00 a.m. to 12:00 p.m.