Preparing the Form 990, already considered a bothersome chore by many organizations, requires even greater information with the goal of enhancing transparency and promoting compliance.  From the tax professional’s perspective this will significantly increase the recordkeeping burden for public charities.  Also, it will take anywhere from 50% to 200% more time to complete the redesigned 990 than the prior 990.

It is easy to highlight the troublesome aspects of the new 990.  However, if we take a mirror to the form it will reflect back to us a new way of viewing it.  The new 990 has sections which increase the opportunity for your organization to “tell its story.”  And if we can identify the positive points of these reporting requirements it may serve as a tool for enhanced board engagement, facilitate comparisons between similar nonprofit
organizations, and lead to increased fundraising.