Gathering Accounting Information for Declaration
A nonprofit must gather a considerable amount of information to include with IRS Form 990, including annual financial statements. The annual financial statement of an NPO must contain clearly delineated categories of revenues and expenditures, with two-column accounting for all incoming and outgoing money for the NPO.
Any expenses that were allocated to various projects and operations should have their own section and statement, including a brief explanation and background of the project or operation. A report that outlines the expenditures on a specific program area as a percentage of the whole should be included in this section.
Lastly, a list that groups together the various sources of income for the nonprofit, as well as specifically where this income comes from is necessary. This section is called a “support schedule,” and should include all relevant financial information.
Gathering Personal Information for Declaration
Form 990 may also require personal statements of income from each of the board members of a nonprofit organization. These personal statements include the personal addresses, phone numbers, and other contact information of each board member.
