Tax Planning & Compliance Blog

When completing Form 990 for your nonprofit organization, it is important to report the correct number in the governing body.  By definition, the governing body is the group of persons authorized under state law to make decisions on behalf of the organization.  The governing body is, generally speaking, the board of directors or trustees.  All of the directors or trustees must maintain independence in order to participate in the decision-making process.

The number of directors to be reported on...

Form 990 Schedule L is required for all nonprofit organizations that answered questions 25, 26, 27, or 28 in Part IV of the Form 990 relating to transactions between various parties.

Transactions that are required to be reported on Schedule L include:

• Excess benefit transactions
• Loans to and/or from interested persons
• Grants or assistance benefitting interested persons
• Business transactions involving interested persons

The definition of interested persons is different for each one of these...