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Exempt Organizations – Forms 990

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Exempt Organizations – Forms 990

What is Form 990?

Form 990 is an essential document for tax-exempt organizations. It provides the IRS with information about your organization’s mission, programs, and finances. Consequently, filing this form accurately is crucial, as it maintains your tax-exempt status and ensures compliance with federal regulations. At Drenen Financial Services, we specialize in helping exempt organizations like yours navigate these requirements.

Why is Form 990 Important?

Filing Form 990 is not just about compliance; it’s also an opportunity to showcase your organization’s transparency and accountability. Since this form is available to the public, including potential donors and stakeholders, who may base their support on the information provided, it plays a vital role in your organization’s reputation. Therefore, a well-prepared Form 990 can enhance your organization’s credibility and attract more funding.

Different Types of Form 990

There are several versions of Form 990, and the one you need to file depends on your organization’s size and financial activities:

  • Form 990-N: For small organizations with gross receipts of $50,000 or less.
  • Form 990-EZ: For organizations with gross receipts less than $200,000 and total assets less than $500,000.
  • Form 990: For larger organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more.

Understanding which form to file is crucial; thus, Drenen Financial Services can help you determine the right form for your organization.

Key Sections of Form 990

Filing Form 990 involves several key sections that require detailed information:

  • Part I – Summary: Provides a snapshot of your organization’s activities, governance, and financial data.
  • Part II – Signature Block: Requires the signature of an authorized individual, confirming the accuracy of the information provided.
  • Part III – Statement of Program Service Accomplishments: Describes your organization’s mission and significant activities.
  • Part IV – Checklist of Required Schedules: Helps determine which additional schedules need to be completed.
  • Part V – Statements Regarding Other IRS Filings and Tax Compliance: Ensures your organization complies with various IRS requirements.
  • Part VI – Governance, Management, and Disclosure: Details your organization’s governance structure and policies.
  • Part VII – Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors: Lists compensation details for key personnel.
  • Part VIII – Statement of Revenue: Breaks down your organization’s revenue sources.
  • Part IX – Statement of Functional Expenses: Details your organization’s expenses.
  • Part X – Balance Sheet: Provides a snapshot of your organization’s financial position.

Filling out these sections accurately is crucial. Hence, our experienced team at Drenen Financial Services can guide you through the process.

Common Challenges in Exempt Organizations – Forms 990

Many organizations face challenges when filing Form 990, such as understanding which version to use, accurately reporting financial data, and ensuring all required schedules are included. However, errors or omissions can lead to penalties or loss of tax-exempt status. To avoid these pitfalls, Drenen Financial Services provides expert guidance and thorough reviews of your filings.

How Drenen Financial Services Can Help

Our team of professionals at Drenen Financial Services is dedicated to helping exempt organizations like yours with all aspects of Form 990 filing. We offer comprehensive services, including:

  • Determining the correct form to file: We assess your organization’s size and financial activities to ensure you file the appropriate form.
  • Accurate financial reporting: Our experts help you compile and report your financial data accurately.
  • Preparation and review: We prepare your Form 990 and review it for completeness and accuracy before submission.
  • Ongoing support: We provide ongoing support to ensure your organization remains compliant with IRS requirements.

Exempt Organizations – Forms 990, Contact Us Today

Don’t let the complexities of Form 990 overwhelm you. Trust Drenen Financial Services to guide you through the process with ease. Therefore, call us today at 413-569-0015 or email us at office@drenenfs.com to schedule an appointment. Visit our website at drenenfs.com for more information about our services and how we can help your organization maintain its tax-exempt status.

By working with Drenen Financial Services, you ensure that your Form 990 is filed correctly and on time. As a result, this allows you to focus on what you do best – advancing your mission and serving your community.


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