| Annemarie Riemer,
Director
Meher Shulman,
Associate Director
Amy Studwell,
Program Officer
Dick Cave,
Special Consultant
Betsy Johnson,
Nonprofit Program Associate
Shirley Beyor,
Special Assistant
10 Columbus Blvd. 8th Floor
Hartford, CT 06106
860-548-1888
Fax: 524-8346
NSP@hfpg.org
www.hfpg.org/nsp
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Changes to IRS Form 990 May Affect Your Organization
By Reed W. Risteen, CPA
Partner, Blum Shapiro
The IRS has released a draft of the redesigned Form 990, which has created quite a buzz within the nonprofit community. The IRS' intent in revamping the form was to enhance transparency, promote tax compliance and improve governance. The result is an extensive form that requires substantially more information than before and asks leading questions in various areas of governance that may motivate nonprofits to adopt additional policies such as conflict of interest, whistleblower and record retention.
The form may require significantly more time for your organization to complete, so you may wish to visit the IRS website to review the new requirements and then chart a plan of action for your organization. At the time this article was written, the IRS had not yet finalized the changes, but had finalized the instructions and posted draft forms and schedules on its website at http://tinyurl.com/4wadjz.
The form is effective for 2008 tax years (returns filed beginning in 2009). The IRS has provided some relief for smaller organizations in that the Form 990EZ has not been revised and may be filed for 2008 by organizations with gross receipts under $1 million and total assets under $2.5 million. The filing thresholds will decrease over the next two years as outlined by the IRS at http://tinyurl.com/43s3kf.
The Nonprofit Support Program will be presenting a workshop on the changes to the Form 990 next March, and will publicize the date and time of the workshop this winter. In the meantime, you may begin planning for the new form by doing the following:
- Identify what new information you will have to provide by reviewing the IRS website.
- Identify the source of the information, including the responsible parties within your organization.
- Determine whether any new information-gathering procedures need to be implemented to capture the additional information required.
- Identify disclosures required under the new form that could cast a negative light on the organization, particularly the governance questions.
- Consider making changes or implementing new governance policies to remedy the potentially negative disclosures.
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Nonprofit Revolving Loan Fund - Another Option to Help You Manage Better
If your agency has experienced trouble getting a line of credit from a bank, if you've had cash flow difficulties because of delays in grant or contractual payments, or if you suddenly find that the office space you rent needs improvements, the Hartford Foundation's Nonprofit Revolving Loan Fund is a resource you should consider.
Loans of up to $75,000 (with a 4% interest rate) can be made for the following purposes: bridge cash flow, working capital, equipment purchases, and leasehold improvements. In order to qualify, your agency must be a 501(c)3, operate within the Hartford Foundation's coverage area, and have an operating budget of less than $8 million. The program is administered by the Greater Hartford Business Development Center, Inc. (GHBDC). Interested agencies should contact Fernando Rosa of GHBDC at 860-527-1301. |
Building and Sustaining Your Nonprofit
The Nonprofit Support Program is partnering with the Hartford Public Library to periodically provide a workshop for smaller nonprofit organizations that have received their 501(c)3 status and are interested in building a solid foundation. The workshop is led by Martey Rhine of Management Solutions & Resources, and covers the basics of building a board, budgeting, planning, marketing and fundraising. The session provides useful tools and tips for effectively structuring your nonprofit and enhancing your ability to achieve its mission. The workshops will be offered several times a year.
The next session will take place on Thursday, December 11 from 9:00 a.m. to noon at the Hartford Public Library. Registration is required and may be completed online at www.hplct.org/calendar, or by calling 860-695-6295. | |
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Is your executive director leaving the organization?
If so, the Executive Transition Program may be able to help. Call us to learn more about helping your board to do the proper planning required to find the right person to fill the job. Call Meher Shulman at 860-548-1888 x1047
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