Form 990 Preparation Sequencing
By virtue of the hundreds of Forms 990 which we annually prepare, we have developed the following sequencing guide to optimally and most effectively prepare the Form 990 since we have found that preparing the Form 990 in the order of which it is presented (Part I, then Part II, then Part III, etc.) is neither effective nor efficient.
1. Heading
2. Part I, Line 1 / Line 6
3. Part III, Line 1
4. Part II – paid preparer information
5. Part XII, Line 1 – method of accounting
6. Part VII, Line 1a – listing of Insiders (voting Board members, Officers, key employees, highly-compensated employees, formers) of the filing exempt organization
7. Schedule R – reporting of all organizations, whether exempt or not, related to the filing organization
8. Schedule L – reporting of insider transactions
9. Part VI – governance + public disclosure
10. Remainder of Part VII – insider compensation
11. Schedule J (if applicable)
12. Part V – information reporting
13. Part VIII – statement of revenue
14. Schedule G, Part II / Part III
15. Schedule A – public support test
16. Schedule B – schedule of contributors
17. Schedule M – non-cash contributions (if applicable)
18. Part IX – statement of functional expenses
19. Schedule C – lobbying + political (if applicable)
20. Schedule G, Part I – professional fundraisers
21. Schedule I – domestic grants (if applicable)
22. Remainder of Part III – program service activities
23. Part X – Balance Sheet
24. Schedule D
25. Part XI – Reconciliation of Net Assets
26. Remainder of Part XII – Miscellaneous
27. Part IV – Schedules checklist
28. Other Schedules as applicable (Schedule E / F / H / K / N)
29. Schedule O
We know this sequencing does not look to be overly efficient, however, based upon our vast experiences with the Form 990 preparation, this ordering is certainly our preferred manner to prepare the Form 990. This ordering is admittedly quite different than what is set forth in the Form 990 Instructions (see General Instruction C of such), however, we are confident in what we set forth above since we certainly prepare far more Forms 990 than the Internal Revenue Service does !!!!
Have a question? We can help.
info@yhadvisors.com
Twitter Facebook LinkedIn