Table Of ContentF 990: E FF ’
ORM XPLORING THE OORRMM SS
C S
OMPLEX CHEDULES
BY EVE ROSE BORENSTEIN, J.D. AND
JANE M. SEARING, CPA, M.S. TAXATION,
TAX SHAREHOLDER - CLARK NUBER P.S.
Notice to Readers
Form 990: Exploring the Form’ss Complex Schedules is intended solely for use in continuing
professional education and not as a reference. It does not represent an official position of the
Association of International Certified Professional Accountants, and it is distributed with the
understanding that the author and publisher are not rendering legal, accounting, or other
professional services in the publication. This course is intended to be an overview of the topics
discussed within, and the author has made every attempt to verify the completeness and accuracy
of the information herein. However, neither the author nor publisher can guarantee the
applicability of the information found herein. If legal advice or other expert assistance is
required, the services of a competent professional should be sought.
You can qualify to earn free CPE through our pilot testing program.
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© 2017 Association of International Certified Professional Accountants, Inc. All rights reserved.
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Course code: 733921
F990A GS-0417-0A
Revised: May 2017
T C
ABLE OF ONTENTS
Chapter 1........................................................................................................................... 1-1
Introduction to Schedules— The Purpose and Function of the 990’s 15
Supplemental Schedules ................................................................................................... 1-1
Introduction .............................................................................................................................. 1-2
The 16 Schedules of the Form 990 (using Mnemonics) .............................................................. 1-3
Chapter 2........................................................................................................................... 2-1
Deep Dive into Schedule R, the First Required Schedule (When Applicable)
of the Form 990 .................................................................................................................. 2-1
Introduction .............................................................................................................................. 2-2
Completion of Schedule R Parts Vis-a-Vis Identifying Disregarded
Entities and Related Organizations ......................................................................................... 2-17
Chapter 3........................................................................................................................... 3-1
Deep Dive into Schedule A How a Public Charity is NOT a Private Foundation ............ 3-1
Schedule A: Public Charity Status and Public Support ............................................................... 3-2
Chapter 4........................................................................................................................... 4-1
Other Revenue Disclosures Important to Fundraising (Schedules G-II and M).................. 4-1
Chapter 5........................................................................................................................... 5-1
Public Policy, Political Activity, and Lobbying Disclosures on Schedule C ........................ 5-1
Chapter 6........................................................................................................................... 6-1
The Interested Persons of Schedule L and the Impact of This Schedule on
Filing Organizations........................................................................................................... 6-1
Table 1: Definitions of Interested Persons for Schedule L’s Parts II through IV .......................... 6-4
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Category #5’s Glossary Definition ..............................................................................................6-5
Table 2: Dollar Thresholds and Relevant Time Periods Applied in
Schedule L’s Parts I through IV ...................................................................................................6-7
Schedule L, Part IV Business Transactions ..............................................................................6 -10
Schedule L Part II, Loans To/From Interested Persons ........................................................... 6-19
Schedule L, Part III Grants or Assistance Benefiting Interested Persons ................................. 6-23
Schedule L Part I, Excess Benefit Transactions (501(c)(3), (c)(4) and
(c)(29) organizations only) ........................................................................................................ 6-29
Chapter 7 ........................................................................................................................... 7-1
Foreign Activities (Grant-Making and Beyond) .................................................................. 7-1
Schedule F: Statement of Activities Outside the US ...................................................................7-2
Chapter 8 ........................................................................................................................... 8-1
Fully Disclosing Compensation on Schedule J The Rest of the Core
Form Part VII Story ............................................................................................................ 8-1
Working with Form 990 Compensation Reporting Mandates Specifically,
Schedule J’s Part II ................................................................................................................... 8-31
Working with Schedule J’s Reporting on Compensation Practices—Schedule J, Part I ............ 8-36
Chapter 9 ........................................................................................................................... 9-1
Tax Exempt Bonds and Schedule K ................................................................................... 9-1
Introduction ...............................................................................................................................9-2
Chapter 10 ....................................................................................................................... 10-1
The FINAL Chapter: Schedule N Exempt Entity Is No More,
Is in Wind-up, or Has Experienced Asset Contraction/Expansion ................................... 10-1
Introduction to N’s Reporting on Liquidation, Termination, Dissoolluuttiioonn oorr
Significant Disposition of Assets .............................................................................................. 10-2
Glossary ................................................................................................................. Glossary 1
Index ........................................................................................................................... Index 1
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Solutions ............................................................................................................... Solutions 1
Chapter 1 ...................................................................................................................... Solutions 1
Chapter 2 ...................................................................................................................... Solutions 2
Chapter 3 ...................................................................................................................... Solutions 3
Chapter 4 ...................................................................................................................... Solutions 7
Chapter 5 ...................................................................................................................... Solutions 9
Chapter 6 .................................................................................................................... Solutions 10
Chapter 7 .................................................................................................................... Solutions 13
Chapter 8 .................................................................................................................... Solutions 14
Chapter 9 .................................................................................................................... Solutions 17
Chapter 10 .................................................................................................................. Solutions 18
Recent Developments
Users of this course material are encouraged to visit the AICPA website at
www.aicpa.org/CPESupplements to access supplemental learning material reflecting
recent developments that may be applicable to this course. The AICPA anticipates
that supplemental materials will be made available on a quarterly basis. Also
available on this site are link to the various “Standards Trackers” on the AlCPA’s
Financial Reporting Center which include recent standard-setting activity in the areas
of accounting and financial reporting, audit and attest, and compilation, review and
preparation.
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Chapter 1
c.
n
nts, I INTRODUCTION TO
a
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Acc SCHEDULES THE PURPOSE
al
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o
plex Schedules Searing ertified Professi 15A NSUDP FPULNEMCTEINOTNA OL FS CTHHEED 9U9L0E’SSS
ComM. al C
m’s Jane ation
Fornd ern
ng the nstein an of Int LEARNING OBJECTIVES
Explorie Boreociatio After completing this chapter, you should be able to do the following:
0: RosAss Recognize the uniformity of reporting that comes with utilizing supplemental schedules.
99e 7 Recognize when supplemental schedules are required (or not required) to be completed by filers of
m Ev01
ForBy © 2 Form 990-EZ.
Identify the significance of the 10 reporting areas covered in the Schedules presented in this course.
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Introduction
The Form 990 has 15 possible supplemental schedules (plus the mandatory-for-all blank lines Schedule O
that augments the Core Form). No single filing organization will ever file all 15 supplemental schedules
for one tax year. These schedules provide filing organizations and readers of the form with comparability
and standardized structuring of the additional information provided by those reporting upon Forms 990
and 990-EZ (filers of the latter Form only have some of the supplemental schedules required).
TThhiiss aaddvvaanncceedd ccoouurrssee,, Form 990: Exploring the Form’s Complex Schedule, sd, odoese sn noot ta addddrreessss aallll ooff tthhee 1155
supplemental schedules. Rather, this course covers the 10 most common complex schedules (Note:
Schedule H is not included here, as it is neither common nor can it be covered in less than a half-day).
The authors’ basic/intermediate AICPA course, FFoorrmm 999900:: MMaasstteerriinngg IIttss UUnniiqquuee CChhaarraacctteerriissttiiccss,, aaddddrreesssseess tthhee
entirety of the 990’s ccoommmmoonn sscchheedduulleess,,11 but does not drill down into this course’s 1100. .
1 That course addresses, again, from a basic/intermediate perspective:
Schedule A: Qualification by 501(c)(3) Organizations as Non-Private Foundation (Overview of A-I, A-II, and
A-III)
Schedule B: Reporting of Contributors
Schedule D: Supplemental Financial Statements
Schedule F: (Overview)
Schedule G-I: Professional Fundraisers
Schedule G’s Parts II and III ((OOvveerrvviieeww))
Schedule I: Grantmaking Domestic
Schedules J and L: (Overview chapters on each)
Schedule M: (Overview)
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The 16 Schedules of the Form 990 (using
Mnemonics)
Schedule A Public Charity Status and Public Support (required of all 501(c)(3) filers) (A stands
for “we AARE NOT a private foundation”)
Schedule B Schedule of Contributors ((BB ssttaannddss for “BBEENNEEFFAACCTTOORRSS providing grants or
contributions”)
Schedule C Political Campaign and Lobbying Activities ((CC ssttaannddss for “CCOONNNNEECCTTIIOONNSS ttoo
ppuubblliicc ppoolliiccyy wworld”)
Schedule D Supplemental Financial Statements (D stands for “Financial DDETAILS”)
Schedule E Schools (E stands for “EEDUCATIONAL institutions”)
Schedule F Statement of Activities Outside the United States (F stands for “FFOORREEIIGGNN
activities”)
Schedule G Supplemental Information Regarding Fundraising or Gaming Activities
((GG ssttaannddss for “GAMING aanndd GALAs”—tthhee sscchheedduullee aallssoo iinncclluuddeess rreeppoorrttiinngg oonn pprrooffeessssiioonnaall
ffuunnddrraaiisseerrss))
Schedule H Hospitals (H stands for HOSPITALS)
Schedule I Grants and Other Assistance to Organizations, Governments and Individuals in
the United States ((II ssttaannddss for “IIMMPPAARRTTIINNGG mmoonneeyy to others by domestic grantmaking”)
Schedule J Compensation Information ((JJ ssttaannddss for “JJUUDDGGIINNGG ccoommppeennssaattiioonn pprraaccttiicces”)
Schedule K Supplemental Information on Tax-Exempt Bonds (K stands for “KKRRAAZZYY
mmoonneeyy”)
Schedule L Transactions with Interested Persons (L stands for “LLIGHT” as this schedule is
about casting sunlight on such transactions2)
Schedule M Noncash Contributions ((MM ssttaannddss for “non--MMONETARY” donations)
Schedule N Liquidation, Termination, Dissolution, or Significant Disposition of Assets
(N stands for “NOT the same as before”)
Schedule O Supplemental Information (O stands for “OOTTHHEERR tthhiinnggss ffiilleerr iiss rreeqquuiirreedd ttoo,, oorr
wants to, state” or OOvveerrffllooww))
Schedule R Related Organizations and Unrelated Partnerships (R for “RREELLAATTEEDD
oorrggaanniizzaattiioonnss [[aanndd uunnrrelated partnerships]”)
22 “Sunlight is the best disinfectant,” a well--kknnoowwnn qquuoottee ffrroomm U.S. Supreme Court Justice Louis Brandeis.
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SCHEDULES THAT APPLY TO FORM 990-EZ FILERS (AND THEIR REACH)
Schedule A Public Charity Status and All filers exempt under 501(c)(3)
Public Support
Schedule B Schedule of Contributors All 501(c) filers with one or more contributors who
made gifts $5k
* 501(c)(7), (8), or (10) filers who received any
contributions to be used exclusively for the
purposes enumerated in 170(c)(4)3
Schedule C Political Campaign and 501(c)(3) filers with direct or indirect political
Lobbying Activities, Part I-A & -B not I-C activity
Schedule C Political Campaign and 501(c)(3) filer which has a 501(h) election in effect
Lobbying Activities, Part II-A only for the filing year
Schedule C Political Campaign and 501(c)(3) filer which has no 501(h) election in effect
Lobbying Activities, Part II-B only for the filing year
Schedule C Political Campaign and 501(c)(4), (5), or (6) filer that received membership
Lobbying Activities, Part III dues, assessments or similar amounts (for
example, are subject to, unless exempted, Section
6033 notice and reporting requirements (and,
potentially, a proxy tax))
Schedule E Schools Primary basis of non-private foundation status for
the filing year is that under Section 170(b)(1)(A)(ii)
(for example, as a school) and thus need report
adherence to non-discrimination policies and
publication notices
Schedule G Supplemental Info. Regarding Filer has gross receipts (including gift portion)
Fundraising or Gaming Activities, Part II from fundraising events or fundraising
sales > $15,000
Schedule G Supplemental Info. Regarding Gross income from gaming activities exceeds
Fundraising or Gaming Activities, Part III $15,000
Schedule L Transactions with Interested 501(c)(3), (4) or (29) filer required to report an
Persons, Part I excess benefit transaction with a disqualified
person (as defined in Section 4958) due to same
either occurring in tax year or discovered as
having occurred in prior year but not been
previously reported (no dollar threshold)
3 That IRC section provides that donations by an individual to a domestic fraternal beneficiary society or a domestic
fraternal society operating under the lodge system are deductible as charitable contributions. The Schedule B inquiry
is of organizations who may believe they can offer such deductibility.
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