National PTA’s Form 990-EZ

Stephen J. Kelin, CPA, JD

March 6, 2012

National PTA’s Form 990-EZ2012 National PTA Conference

Stephen J. Kelin, CPA, JD

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• Co-leads the firm’s consulting and tax compliance services for more than 600 nonprofit clients

• Monitors changing statutory and regulatory environments

• Nonprofit tax principal at Gelman, Rosenberg & Freedman CPAs• 35+ years of experience providing tax services to tax-exempt

organizations, private foundations, colleges, healthcare organizations, museums and other large nonprofit institutions

National PTA’s Form 990-EZ2012 National PTA Conference

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Overview• Filing requirements:• Form 990-N • Receipts “normally” < $50,000

• Form 990-EZ • Gross receipts < $200,000; and • Total assets < $500,000

• Form 990

National PTA’s Form 990-EZ2012 National PTA Conference

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990–EZ Schedules

• A – Public Support Test• B – Contributors • C – Political Campaign and Lobbying Activities• E – Private Schools• G – Fundraising/Gaming Activities• L – Transactions with Interested Persons• N – Liquidation, Termination, Dissolution• O – Supplemental Information

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Items of Note – Form 990-EZ

• Box B • Box F – Group exemption number• Box G – Accounting method• Box H – No single donor amount > threshold• Box K – Not eligible if:

• Sponsor of DAFs – See Line 44a• Controlling organization – See Line 45a/b

National PTA’s Form 990-EZ2012 National PTA Conference

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Items of Note – Form 990-EZ

• Line 6b – Fundraising – Schedule G• Line 10 – Grants• Line 12 – Salary, other comp, benefits• Line 19 – Net assets at beginning of year:• Must agree with net assets at the end of

year on prior return• Line 20 – Other changes in net assets

National PTA’s Form 990-EZ2012 National PTA Conference

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Items of Note – Form 990-EZ

• Part III – Lines 28-32 – Program service accomplishments • Allocation of expenses to “Program” rather

than “Administrative” or “Fundraising”• Narrative that tells your story as effectively

as possible

National PTA’s Form 990-EZ2012 National PTA Conference

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Items of Note – Form 990-EZ

• Part IV, Line 32 – Officers, Directors, Trustees and Key Employees• Address can be care of the organization• Definitions for key employees includes

$150,000 threshold • W-2 reporting irrespective of filing year-end• Higher of Box 1 or Box 5• Column (d) and (e) for benefits and

other compensation

National PTA’s Form 990-EZ2012 National PTA Conference

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Items of Note – Form 990-EZ

• Line 33 – New activities• Line 34 – Significant changes to governing documents• Line 35 – Unrelated Business Income• Line 36 – Liquidation, Dissolution, Termination• Schedule N

• Line 38 – Loans to/from “Interested Person” at year-end • Schedule L

National PTA’s Form 990-EZ2012 National PTA Conference

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Items of Note – Form 990-EZ

• Line 41 – States where copy of 990 filed• Line 42 – Foreign bank accounts • Treasury filings for entity and

possibly officers• Line 46 – Political campaign activities• Line 47 – Lobbying• Line 49 – Transfers to exempt non-charitable

related entity

National PTA’s Form 990-EZ2012 National PTA Conference

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Items of Note – Form 990-EZ

• Line 50 – HCE reporting• Over $100K and not already on Part IV

• Line 51 – “Independent Contractors” > $100K for services

• Line 52 – Schedule A

National PTA’s Form 990-EZ2012 National PTA Conference

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Schedule A• Part I• “Public Charity” vs. “Private

Foundation”• Broad public support • Large number of small donors rather

than limited number of large donors• Box 7 for most PTA affiliates?

National PTA’s Form 990-EZ2012 National PTA Conference

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Schedule A

• Part II • For use by Box 7 entities• 5-year test• Lines 14, 15 calculation• Lines 16a, 16b, 17a, 17b

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Schedule B• “General Rule” ($5,000) vs. “Special Rule”• Part II• Column (b) and (c) not public information• Redacted by IRS• Public Disclosure copy in affiliate office

• Column (d)• Non-cash and Part III

• Part III – Description, fair market value, date

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Schedule C• “Political Intervention”

• No threshold – Loss of exemption!• Excise tax

• Lobbying• Statutory rule – Not a substantial part

• Loss of exemption

• 501(h) election• Excise tax• Loss of exemption

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Schedule G

• “Fundraising Activities” • Part I – N/A for 990-EZ filers• Part II – Fundraising events• Two largest events; all others• Line 1 vs. Line 2

• Part III – Gaming

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Schedule L

• Part I – Excess benefit transactions• Part II – Loans• Outstanding loan at year-end• “Interested Person”• Officers, directors, trustees and key employees

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Schedule N

• Liquidation, Termination, Dissolution or Significant Disposition of Assets• Line 2 – Successor entities• Significant disposition• 25% of assets, based upon fair market value

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Schedule O

• Required disclosures• Voluntary disclosures

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Other Items

• 2011 Form 990-EZ – What’s New• http://www.irs.gov/charities/index.html• Forms; instructions

• $2.25 National PTA dues• Should be balance sheet transaction to affiliates• No reporting as income/expense

Stephen J. Kelin, CPA, JDEmail: skelin@grfcpa.com

Telephone: (301) 951 – 9090Website: www.grfcpa.com

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