The New Form 990 Tax Information Report

1. The New Form 990 Tax Information Report Presented by: Howard Balsam, C.P.A., Chief Operating Officer 212-328-3726 hbalsam@hemophilia.org Jennifer Norman, M.B.A., Controller 212-328-3736 jnorman@hemophilia.org

2. New Form 990 - Background • First time in 29 years Internal Revenue Service revamped Form 990 Informational Return. • June 2007 I.R.S. issued initial draft of the new Form 990. This was a period of time that the I.R.S. accepted questions, suggestions and requests for changes. • IRS received over 700 e-mails approximately 3,000 pages of comments. At the end of last year 2007 the IRS issued the final draft. This form is to be used for returns to be filed in 2009. Tax year ending in 2008

3. What is Form 990? • Familiar with Form 990? • Ever paid taxes when filing Form 990?

4. Form 990: • INFORMATIONAL RETURN • Used by all not-for-profit organizations • Until now it basically presented in dollars how the not-for-profit attempted to reach its mission statement • Limited space to disclose accomplishments for the outside world - provided space was hidden and not well utilized by the not-for-profit community.

5. Why Change? • Transparency – provides to public, stakeholders, and IRS realistic picture of the not-for-profit, as well as an improved basis for comparison to other not-for-profits. • Promotes compliance by accurately reflecting the organizations operations so the IRS can effectively and efficiently assess the risk of compliance. Use ofAssets • Minimizes burden on filing organizations

6. 990 Online Retrieval • GUIDESTAR (www.guidestar.org) • CHARITY NAVIGATOR (www.charitynavigator.org) • AMERICAN INSTITUTE OF PHILANTHROPY (www.charitywatch.org) Who’s Watching You!

7. New Form 990 - Overview • 17 sections • First 11 pages “CORE FORM” • 16 sections are comprised of Schedules A-R NO “Schedule P”

8. Core Form - 11 Parts • Part I– Summary • Part II – Signature Block • Part III – Statement of Program Services Accomplishments • Part IV – Checklist of Required Schedules • Part V – Statements Regarding Other IRS Filings and Tax Compliance • Part VI – Governance, Management and Disclosure • Part VII – Compensations of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors • Part VIII – Statement of Revenue • Part IX – Statement of Functional Expenses • Part X – Balance Sheet • Part XI – Financial Statements and Reporting (New)

9. Schedules After Core Form • Schedule A Public Charity Status and Public Support • Schedule B Schedule of Contributors • Schedule C Political Campaign & Lobbying Activities • Schedule D Supplemental Financial Statements • Schedule E Schools • Schedule F Foreign Activities • Schedule G Fundraising or Gaming Activities • Schedule H Hospitals • Schedule I Grants and Other Assistance • Schedule J Compensation Information • Schedule K Tax Exempt Bonds • Schedule L Transactions with Interested Parties • Schedule M Noncash Contributions • Schedule N Liquidation, Termination/Significant Disposition • Schedule O Supplemental Information to Form 990 • Schedule R Related Organizations/Unrelated Partnerships

10. Part I -Summary Activities and Governance • Mission Statement of Most Significant Activities Education, Advocacy & Research • Number of Voting Members on the Governing Body • Independent Voting Members (Conflict of Interest) • Number of Employees • Number of Volunteers (estimate) • Gross Unrelated Business Revenue • Net Unrelated Business Income (UBI)

11. Revenue – Two Year Comparison • Contributions and Grants • Program Services • Investment Income • Other Revenue

12. Expenses – Two Year Comparison • Grants and Similar Amounts • Benefits paid to or for members • Professional Fundraising Expenses • Other

13. Part II -Signature Block • Authorized Officer • Later they ask is there a committee that reviews the Form 990 under governance model.

14. Part lll- Statement of Program Service Accomplishments • Mission Statement • Describe Exempt Purpose Achievements • Three Largest Program Services by Expenses • Grants and Allocations to others • Total Expenses • Total Revenue

15. Schedule O

16. Part IV - Checklist of Required Schedules Questions Entailed • Political Activities • Lobbying • Credit Card, Debt Management • Endowment Fund • Activities outside of United States • Excess Benefits • Related Organizations • 990T – Has it been mailed • Former Employees & Board Members • Board Members and Transactions

17. Part V - Statements Regarding Other IRS Filings and Tax Compliance • Number of 1099 being filed for independent contractors avoidance of tax filings for those who are really employees • Number of Employees • Compliance on Back up Withholdings (federal, state & city local) • Unrelated Business Income • Donated Securities

18. Part VI - Governance, Management and Disclosure Section A. Governing Body and Management • Number of Voting Members on Governing Board • Independent Voting Members • Board Members and Business Relationships • Board Minutes • Was a copy of the 990 provided to the organization’s governing body before it was filed? • How can officers, directors or trustees be reached if not thru organization’s office (home address)

19. Section B. Policies • Conflict of Interest • Whistle Blower Policy • Document Retention Policy • Review of Key Executive Compensation

20. Section C. Disclosure • States where 990 is filed • Does organization make its governing documents, conflict of interest policy and financial statement available to the public?

21. Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contracts • List employees regardless of compensation • List five (5) current highest compensated (Box 5 of W-2 or Box 7 of Form 1099-misc). Calendar year not fiscal – (more than $10,000) from the organization and any related organization • List former officers, key employees or highest compensated • List former directors or trustees with $10,000 of reportable compensation

22. Part VIII - Statement of Revenue Part IX - Statement of Functional Expenses Part X - Balance Sheet Part XI - Financial Statement and Reporting (NEW)

23. SUMMARY New Form 990: • If given the proper attention and time can be one of the best fundraising mediums your organization can possess. • Will primarily need input from non-fiscal staff, board members, executive directors, fund raisers and program directors. • For more information about Form 990 – www.irs.gov • When should you begin to share this with others in your chapter? NOW!!!

24. Most Important Schedules in the New Form 990 • Schedule O – Supplemental Information to 990 • Extension for Time to File