C the BAD DoG’ is a handy phrase to remind preparers of the Form 990’s five most frequently applied substantive Schedules (A, B, C, D, G) along with the ALWAYS-required Schedule O. This course addresses the first three of these substantive Schedules - A (required of all 501(c)(3) organizations); B (required for many (c)(3)s AND some non-(c)(3)s); and C (reporting on spheres of public policy intersection). The author/instructor’s approach to all three is designed to: (1) demystify the Schedule A overall (and explain the nature of the two public support tests); (2) address common misconceptions concerning the Schedule B’s reporting of donors; and (3) highlight the reach and underlying preparer needs behind Schedule C’s three parts, including commonly missed Sched. C reporting obligations.
What 990 preparers need to know about the benefits of a 501(c)(3) organization being a public charity rather than a private foundation (and how Schedule A, Part I “claims” such status). The public policy precepts and resulting emphasis preparers must apply in approaching the predominant (and easier) “public support test” in favor of completion of Schedule A’s Part II. The overarching needs behind preparing Schedule B for filing and, as necessary, its related worksheet: which donors are to be listed and with what identifying information required to be provided to the IRS, depending on 501(c) status of the filer; and what information 501(c)(3) filers will omit from the public inspection copy of the 990. Introduction to the baselines driving each of the Schedule C’s three Parts: undertaking electioneering in favor of, or opposition to, candidates or the political parties supporting them (Part I); lobbying reporting when same is undertaken either in the tax year (for non-electors) or regardless of activities, when a 501(h) election is in place (Part II); and the existence of the so-called “proxy tax” and its demands when 501(c)(4), (5) or (6) organizations with dues-paying members incur electioneering or lobbying expenses as determined by a Code section that tracks non-exempt organization definitions.
Some familiarity with the nonprofit sector.
Public accounting tax and audit staff. Nonprofit organization’s treasurers, CFOs and other finance/compliance advisors.
Recognize Schedule A’s function of having filers report the primary basis of their non-private foundation classification in the tax period regardless of prior years’ qualification. Identify the revenue input difference that distinguishes the two public support tests’ bottom-line “public support” percentage achieved over rolling five tax year periods. Appreciate the notion of “public support” as coming in whole or part from “diverse donors,” and the how in the case of the first public support test this means that most large donors may have a set limit imposed by which only a portion of their donation(s) count as public support. Identify the pertinent reporting conventions applicable in Schedule B for disclosing donors’ contributions (including when donors’ identity may not need be disclosed to either the IRS or via public inspection conventions when donors’ identity is shared with the IRS). Distinguish the conditions by which 501(c)(3) filers who employ the “no substantial part test” versus the 501(h)-elected-test are to complete Schedule C’s Part II. Identify the conditions by which a 501(c)(4), (5) or (6) filer will be required to report on receipts from dues-paying members to calculate impact of the “proxy tax.”
Eve Borenstein, Eve Rose Borenstein LLC
Eve Borenstein is a partner in Borenstein and McVeigh Law Office (BAM!), a Minnesota law firm that is the base of Eve’s national tax practice and services nonprofits and tax-exempt organizations exclusively. Separate from the law firm, Eve operates a teaching and speaking consultancy offering instruction on nonprofit and exempt organization mandates, Eve Rose Borenstein, LLC. Eve received her law degree from the University of Minnesota in 1985 and thereafter embarked on exempt organizations tax work at a “Big 8” accounting firm. From 1989-2003 she maintained a solo practice serving tax-exempt non-profit corporations, and in 2004 created the BAM Law firm with nonprofit corporate counsel Ellen W. McVeigh. From her law firm’s practice and through her teaching and speaking, Eve works to assist diverse nonprofit organizations with tax-exemption qualification, corporate planning and compliance. The bulk of her legal practice is representing exempt organizations before the Internal Revenue Service and/or State regulators on audit, qualification and classification issues; through 2009 she had represented more than 850 organizations before the IRS. Eve volunteers extensively with multiple professional committees, including the American Bar Association’s Tax Section Committee on Exempt Organizations, from which she serves as a liaison to the American Institute of Certified Public Accountants’ Exempt Organization Technical Resource Panel. Through such service, and individually, Eve was integrally involved in the IRS’ Redesign of the Form 990. She was chosen by the IRS to be one of two private practitioners on the IRS Tax Talk Today TV broadcast in November 2008 dedicated to the Redesign of the Form 990, and has appeared multiple times since with IRS officials on educational panels concerning that Form. Eve was also one of the original non-IRS collaborators in the Form 1023 Revision Project that culminated in that Form’s October 2004 “make over”. She enjoys teaching and speaking and is committed to “helping the sector (and its advisors) do it right the first time!”
Non-Member Price $109.00
Member Price $89.00