New Form 990 focuses on governance and much more

Is your organization ready for the new Form 990? Grant Thornton has prepared a guide to help nonprofits prepare for the new annual IRS filing, noting that “The appropriate presentation of Form 990 information can influence everyone from donors to regulators to the media. Therefore, tax-exempt organizations should pay attention to the information included in the Form 990, or be prepared to get unwanted attention.”

The new Form 990 is a significant redesign in format and content from the current form. The major redesign, the first in 30 years, is extensive and touches many areas. These include:

• a front-page summary that provides a snapshot of key financial and operating information;
• a checklist of required new schedules based on your specific activities and operations;
• a section to highlight your governance policies, procedures and practices; and
• revised compensation and related organization reporting. 

Grant Thornton’s advisors suggest nonprofits do a readiness assessment to be sure they can address and properly respond to questions about policies, procedures and practices already in place – or that organizations may need to adopt.

An assessment can capture and prepare the new information that nonprofits will be required to disclose.  An at-a-glance summary of policies, procedures and practices included on the new Form 990, The Policies, Procedures and Practice's Disclosure on the Form 990 chart, is now available online. For an in-depth review of what nonprofits can expect and should begin preparing for, click here for the complete guide.