The Form 990-PF, entitled "Return of Private Foundation" is a report that must be filed each year with the Internal Revenue Service (IRS) by organizations exempt from Federal income taxes under section 501 of the Internal Revenue Code, and whose annual receipts are normally more than $25,000 a year. It is an information return and not an income tax return since the organizations that file it do not pay taxes.
There are many different kinds of nonprofit organizations that are exempt under section 501 of the Code. Generally, organizations are exempt under section 501(c)(3) if they pursue charitable, educational or religious purposes. Organizations that are classified as private foundations are required to file a Form 990-PF.
While much can be found out by examining an organization's Form 990-PF for one year, a great deal more can be learned from looking at its Form 990-PF for two or more years. For example, if an organization reports the receipt of a considerable amount of income for three years from a particular source, such as program service revenue, it may be considered likely that the organization will continue to receive funds from this source in the future. This conclusion could not be made with as much confidence on the basis of one Form 990-PF.
Finally, we will be offering suggestions on how information reported on the Form 990-PF might be interpreted. These suggestions should be taken as just that — suggestions. In many cases there will be other ways the data might be interpreted.
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