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NEWSNOTES is a monthly email newsletter published by NEW. It covers resources available at NEW in Ann Arbor and Detroit as well as items of interest to the nonprofit community in southeastern Michigan. NEWSNOTES is proud to celebrate its seventh year of publication, with delivery to over 1,300 subscribers every month! We welcome your
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!
NEW would like to recognize the generous support of its Community Partners: The Ann Arbor Area Community Foundation, the DTE Energy Foundation, The James A. & Faith Knight Foundation, The Lloyd and Mabel Johnson Foundation, Online Technologies Corporation, The Power Foundation, and the W.K. Kellogg Foundation. And special thanks to NEW's founding partner, the McKinley Foundation.
IN THIS ISSUE
| LEAD STORY |
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| FEATURED ITEMS |
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| REGULAR FEATURES |
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| NEWSNOTES Resource of the Month |
Staying Legal for Michigan Nonprofits
a new website from the Michigan Nonprofit Association.
Learn more about this resource through ResourceConnect ®
(See Legal Management - Web Resources - general).
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LEAD STORY
What's Up With the New Form 990?
By Matt Pollock*
The Internal Revenue Service has issued a revised Form 990, the informational return prepared by tax exempt organizations. Comments from the entire nonprofit sector resulted in the first major overhaul of the form and its instructions since 1979. These new documents, still in draft form, can be found on the IRS website. Nonprofits will use the new form to report for the 2008 tax year. [Fiscal years that began in 2007 will still require the old form.] Organizations should review the new form as soon as possible to determine if new policies and procedures need to be implemented and whether additional data needs to be captured during 2008.
Why was the Form 990 redesigned?
The IRS explains in FAQs that they redesigned the form because "the old form failed to keep pace with changes in the law and with the increasing size, diversity, and complexity of the exempt sector." The new form was designed to address the shortcomings of the old form by enhancing transparency for the IRS and the public, promoting tax compliance and minimizing the burden of filing.
When should the new form be used?
The new Form 990 must be used for the 2008 tax year (returns filed beginning in 2009).
Who needs to use the new form?
Although the new Form 990 is intended for all but the smallest exempt organizations, there is a transition period for some organizations. An organization may opt to file the simpler Form 990-EZ instead of the new form if it meets the following size criteria:
| Tax Year |
Size |
| 2008 |
gross annual receipts between $25,000 and $1 million, and total assets below $2.5 million |
| 2009 |
gross annual receipts between $25,000 and $500,000 and total assets below $1.25 million |
| 2010 onward |
gross annual receipts between $50,000 and $200,000 and total assets below $500,000 |
As of January, 2008 even the smallest nonprofits are now required to file an annual electronic postcard (Form 990-N) to report their activities to the IRS. The threshold for the Form 990-N is annual receipts under $25,000 for tax years 2007, 2008 and 2009, and annual receipts under $50,000 for 2010 and subsequent years.
What has changed in the new form?
The new form consists of an 11-page core form that all organizations will complete. The core form begins with a one-page summary of the organization that will provide readers with the organization’s mission, number of employees, board members and volunteers, and a two-year financial summary.
The core form continues with a description of program service accomplishments, which provides the reader the context required to understand the organization’s financials.
Perhaps the most significant addition to the core form is Part VI – Governance, Management and Disclosure. The IRS has stated that “good governance and accountability practices provide safeguards that the organization’s assets will be used consistently with its exempt purposes.” This governance section inquires whether the organization has implemented “best practice” policies and procedures such as a conflict of interest policy, a whistle-blower policy, and a process for determining compensation for the CEO. Many of these policies and practices are not required by law, but boards will need to review their current governance and decide whether they would like to make changes.
In addition to the core form, there are 16 schedules that organizations may have to complete. By completing Part IV of the core form, Checklist of Required Schedules, an organization will determine which of the 16 schedules it needs to complete. The increase in schedules results from three factors: some unstructured attachments from the old form were converted into schedules to promote uniform and complete reporting of requested information; existing parts of Schedule A were separated into four schedules; and new required information is reported in five schedules. The new required information includes information regarding foreign activities, tax exempt bonds, non-cash contributions, hospitals and supplemental information.
How can an organization prepare for the new Form 990?
Don't wait until 2009 to review the new requirements. Get familiar with the form and its instructions soon so your organization will have the necessary data and policies in place when it is time to file.
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*Matt Pollock, CPA is a professional accountant with Weidmayer, Schneider, Raham & Bennett, P.C.. NEW is grateful to WSRB for the sponsorship support of the two workshops offered on this topic earlier this month.
Additional resources
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FEATURED ITEMS
Nonprofit Buzz:The New Form 990
Thursday, June 26, 9 a.m. - 10 a.m.
Tune in to The Nonprofit Buzz to learn about the changes to the IRS Form 990. The Lead Story above gives background on what nonprofits should anticipate for their 2008 tax year (filing in 2009). Host Diana Kern of NEW and guests Cynthia Kopczynski, VP and CFO of the Michigan Association of CPAs, and Peggy Jury of Plante Moran will reinforce the need to be mindful of these additions to the form. Listen to NEW's live Internet radio program on the web on MetroChick radio hosted by Lisa Marie.
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Nonprofit Day at the Alliance for Nonprofit Management Conferencee
Wednesday, July 9
Hyatt Regency, Dearborn
$125
Dearborn hosts the national conference of the Alliance for Nonprofit Management July 9 -11. The pre-conference on July 9 offers a Nonprofit Day option open to all, whether registered for the conference or not.
Come for the day and explore new techniques and tools while learning, sharing and networking with nonprofits nationwide. The Alliance Nonprofit Day will offer valuable sessions with content designed for executive directors, nonprofit staff and board members. You will walk away with new ideas and practical solutions. The link gives a schedule for the day which includes a workshop given by NEW's Diana Kern: Committee Structures That Work: Guidance for Consultants.
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Upcoming Trainings
Visit NEW's statewide training calendar on a regular basis to see what offerings could benefit you or your staff. Webinars and audio conferences allow you to save gas and learn at your own computer! Scroll down to find classes that are ongoing; they are offered online on a regular basis or offer a cd for purchase to allow learning at any time . . . even in your pjs! Here some highlights of classroom offerings coming up soon:
- Major Gifts Class
Monday-Wednesday, June 23-25
Dance Gallery Foundation, 815 Wildt St., Ann Arbor
See the item in last month's NEWSNOTES for more information.
- Serving on a Nonprofit Board, presented by BoardConnect®.
This training is for community members interested in serving on a nonprofit board. You will learn about the five main responsibilities of board membership and how to find a board match with a nonprofit that could really use your expertise. Develop your leadership skills and offer a valued community service through BoardConnect®.
- Tuesday, June 24, 9 a.m. - noon
Leadership Macomb, Macomb Community College
44575 Garfield, Clinton Township, MI
- Wednesday, June 25, 8:30 a.m. - 11:30 a.m.
Leadership Detroit, Detroit Regional Chamber
One Woodward Avenue, Suite 1900, Detroit, MI
- Thursday, August 21, 3 p.m. - 6 p.m.
NEW Center
1100 North Main St., Ann Arbor, MI
Register online for any workshop and save $5 off the low $55 fee. Further discounts apply for members of Leadership Macomb, Leadership Oakland, the Detroit Regional Chamber or the Michigan Nonprofit Association. Links to maps for each location are included.
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Building for Change: Nonprofit Centers for Community Revitalization
July 8, 8 a.m. - 5:30 p.m.
YouthVille, 7375 Woodward, Detroit
The NonprofitCenters Network, in partnership with the Detroit Youth Foundation, the Luella Hannan Memorial Foundation, and Nonprofit Enterprise at Work, Inc. (NEW) invite you to a regional seminar to gain practical tools to lead your organization in developing, financing, and managing an innovative nonprofit center.
Multi-tenant nonprofit centers offer opportunities for multiple organizations to share operational costs and build hubs of neighborhood activity that help rejuvenate and better serve the community. Come away with basic information on the design and development process, ownership structures, and management strategies, as well as ideas for financing, green building design, and shared service models. Network with and learn from both peers and industry experts.
Find the agenda for the day and a link to registration online. Cost: NonprofitCenters Network members $125; nonmembers $199.
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Governor's Awards for Art and Culture
ArtServe Michigan invites you to recognize an individual or organization that demonstrates exemplary achievements and dedication to arts, culture and creativity in Michigan and its communities. Nominations are now being accepted for artists, arts and cultural organizations and leaders, arts educators and organizations, civic and business leaders, and advocates.
These Guvvy awards honor the best from Michigan's arts and cultural community. Nominate your colleagues or yourself, but be sure you turn in the form by the deadline: Tuesday, June 24, 4:30 p.m.
Save the date of November 13 for the awards ceremony and gala.
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University of Michigan Community Consulting Club Accepting Applications
The Community Consulting Club of the Ross School of Business (University of Michigan) encourages nonprofits to apply to be client organizations for a CCC project this coming school year.
This student-run organization provides free business consulting services to local nonprofit organizations. Nonprofits benefit from a dedicated group of MBA and BBA (undergraduate) students who apply their business skills to effect change in the organization, while the students benefit from the opportunity to explore their interests in the nonprofit sector.
If applying, your organization should be prepared and committed to engage a project team on multiple occasions between October and December 2008.
For further information and details please contact the club
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. They need to hear from you by Friday, August 1.
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Junior League Signature Projects
The Junior League of Ann Arbor (JLAA) is accepting applications for its Signature Project program which creates long-term partnerships with Washtenaw County nonprofits. Your organization is encouraged to apply if it has plans or ideas for a high-impact project that fits within in the focus areas of JLAA—children/youth, education, women's health, or family issues.
If selected, JLAA volunteers will assist in the development and implementation of your project over the course of 2-3 years (three-year projects preferred). Also, JLAA will contribute up to $10,000 to help with its success. The deadline: Friday, August 1, 5 p.m. Find more information and an application form on their website .
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Job Posting on Idealist is Free Until the End of June
Idealist is a project of Action Without Borders, a nonprofit organization founded in 1995 with offices in the United States and Argentina. Idealist is an interactive site where people and organizations can exchange resources and ideas, locate opportunities and supporters, and take steps toward building a world where all people can lead free and dignified lives.
It has long been known as a top spot to post a job opening or search for job opportunities.
Posting a job on Idealist usually costs $60, but they are offering free job postings for any nonprofit organization through the end of June.
Visit their website to find a video link about job posting successes. Sign up for their emails and find other ways to get educated and connected.
Reminders:
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REGULAR FEATURES
Philanthropy Journal will put timely information in your mail box each week. PJ events are more geared to North Carolina, but the resources and webinars help all of us. A recent issue included "Exploring the Benefits of Planned Gifts." Subscribe.
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