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QUESTIONS THE BOARD SHOULD ASK Board Responsibilities
1. Do we need to develop more diverse sources of
net revenue from programs, services, publications,
membership, and the like, providing they are Annual Board Responsibilities
appropriate to our mission? Annual Filing Requirements
2. What is our contingency plan in the event a IRS Form 990
major source of revenue or contributor suddenly Every tax-exempt organization has to file a Form 990 with the IRS on an annual basis.
disappears?
3. What is the optimal percentage of earned income, • Organizations with $200,000 gross receipts or $500,000 total assets have to file Form 990.
private contributions, membership dues, and other • Organizations with gross revenue of more than $50,000 and less than $200,000 can file a shorter
sources of income that we wish to achieve to build version, Form 990-EZ.
a diverse and stable revenue stream? • Small organizations with revenues less than $50,000 can file Form 990-N, an e-postcard.
4. What are our expectations for board members’ • Form 990-PF is designed for private foundations.
involvement in fundraising? Do we clearly articulate • If a tax-exempt organization engages in unrelated business activities, it must file Form 990-T and
this expectation when they are cultivated for possibly pay unrelated business income tax. Check the IRS website for what constitutes unrelated
nomination? business income.
5. Do board members help to identify and cultivate The filing must take place by the fifteenth day of the fifth month after the end of the fiscal year. For example,
possible funders and major donors? if the fiscal year ends on December 31, you must file the 990 by May 15. Make sure that every board member
6. Is it enough for the board to set an annual goal receives a copy of the form before it is filed and is familiar with it.
of 100 percent participation for board member
giving to motivate personal philanthropy? High- (continued)
performing boards also set an annual dollar goal
for themselves and ask for quarterly reports on
aggregate amounts toward their goal as part of
fundraising reports.
Where People
Come Together
irwinseating.com • 866 GO IRWIN
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