Why Form 990 is One of the Most Important Documents Your Nonprofit Produces
To most nonprofit officers, directors, and managers, Form 990 is an annoyance. It's just another government hoop to jump through on the way to accomplishing your all-important mission.For those of you who rely on certain types of grants, you probably see Form 990 as your ticket to getting the grant, since some grant-making organizations demand a copy of the most recent Form 990.
I've looked at enough Form 990's and helped with enough penalty abatement cases to know that most organizations, and even most CPAs don't take Form 990 seriously.
That's a big mistake and a lost opportunity.
It's a big mistake because even a small mistake on Form 990 can result in big penalties. Did you know that filing an "incorrect or incomplete return" is the same as not filing a return at all? Forget to check a box properly or forget to file a required schedule can trigger massive penalties.
Watch the video above for some information that might surprise you.
