The Form 990-PF is a crucial document for serious prospect researchers, as it contains valuable information that must be correctly interpreted. To assist with this task, we have compiled a list of the ten most critical pieces of data that can be found in the Form 990-PF, along with their specific locations.
As an introduction to the Form, it is important to understand that it is officially known as the "Return of Private Foundation," and it is an annual report required to be submitted to the Internal Revenue Service (IRS) by organizations that are tax-exempt under section 501 of the Internal Revenue Code and typically earn over $25,000 a year. Unlike an income tax return, the Form 990-PF is an information return, and the organizations that submit it are not required to pay taxes.
Organizations exempt under section 501 of the Code are varied, but those pursuing charitable, educational, or religious objectives typically fall under section 501(c)(3). Private foundations are specifically mandated to submit a Form 990-PF.
The Form 990-PF is important for two primary reasons. Firstly, it helps regulatory agencies like the IRS and state charity regulators enforce nonprofit laws by providing critical information that identifies potential non-compliance issues, such as mismanagement of funds that could lead to the loss of tax-exempt status. Secondly, the Form 990-PF contains a wealth of financial data, including an organization's financial condition, strength or weakness, sources of income, and funding interests. By understanding the Form 990-PF instructions and filing the Form 990 correctly, an organization can ensure it provides accurate and useful data for regulatory and research purposes.
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