As we talk about administrative costs for nonprofits needing to decrease as a strategy for sustainability during this economic downturn, the required changes in the 990 give me pause. I hosted a training session last week in partnership with the Charities Review Council for nonprofits on the changing 990, which requires more information, tracking and paperwork in terms of additional schedules to complete.
The purpose for the changes in the 990 overall are good changes because the 990 form had not been updated since 1979 and it did not meet the new tax compliance issues of the IRS or the transparency and accountability requirements. The new form requests inclusion of evaluation data and activity measures as well as an entire new section on governance. The governance section is the biggest change to the 990 and was added to promote transparency, encourage compliance and accountability. Additional information as well as suggested questions that may need to be reviewed with Board members, managers, and staff of nonprofits is available from the Charities Review Council.
Posted by Kathy Grochow, NRS, St. Cloud
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