Accomplished business leaders, professionals, and community leaders are often sought out to serve on the boards of not-for-profit organizations. These organizations generally operate under a tax-exempt designation from the IRS, but that does not mean they do not file tax returns. In fact, the Form 990 asks for more information about the operations, best practices, related party activities, investments, and results of mission-oriented programs than most for-profit business tax returns do.
Amanda Adams, Managing Director and Not-for-Profit Tax Leader at Cherry Bekaert, provides insight into the world of Form 990 reporting. Brooks and Sarah ask Amanda to walk through the various parts of the Form 990 and highlight sections that board members should review. Amanda also points out where to spot warning signs for potential risks. She explains a few of the key questions within the Form 990 that the IRS considers as evidence of best practices for good governance of organizations. The conversation wraps up with a discussion of unrelated business taxable income and key issues facing not-for-profit organizations in 2022.
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