There has been a lot of debate surrounding the new 990 changes and charities are anxious to understand these new forms. Many groups have released information and tips on how to comply with the new regulations. Now, the IRS will offer a preview of the new 990. By August 15th, the complete revised instructions will be posted on their website.
One of the major changes is a redefinition of “key employees”. This was one of the items that received the most criticism from various groups. To correct an overly broad definition of this term, the IRS has come up with a three-part test to determine key employees. This definition is important for the purpose of detailing executive compensation, transactions with charity insiders, and other items
There have also been complaints about the incredibly detailed reporting requirements. The new instructions “will lay out how charities can prove they have made a reasonable effort to obtain relevant information about the family and business relationships among their trustees, officers, and key employees,” says the Chronicle of Philanthropy.
Changes were also made to information that hospitals must fill out and the part of the form about tax-exempt bonds.
All these changes were the result of numerous reviews and comments after the release of the form’s instructions in April. An update from the IRS’s website says that, “the upcoming release of the amended instructions will be accompanied by background documents intended to explain the changes.”
We highly encourage nonprofit organizations to continue to follow the development of the new form 990. For more information on this situation, you can read our previous articles: Help With the New Form 990 and New Form 990
--Jessica High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.