|The Internal Revenue Service has changed the reporting requirements of nonprofit organizations. The new Form 990, filed by nonprofit organizations with 501(c)(3) status, will make it easier for both donors and the general public to see how any of the approximately 1.3 million nonprofit organizations handle their money. Generally, the Form 990 is required of nonprofit organizations with more than $100,000 in revenues and $250,000 in assets. Smaller charities file an "EZ" form.
The new Form 990 ensures that the public has access to important information to evaluate the capacity, mission, and accomplishments of nonprofit organizations. The return details income and expenses; assets, liabilities, and net assets or fund balances; program accomplishments; a list of directors, officers, trustees, and key employees; the salaries of top officials; and other important information.
The new IRS regulations require nonprofit organizations to make these returns available to the public immediately upon personal request, or within 30 days of a written request, without charge other than a reasonable fee for reproduction and mailing. Because the new regulations contain certain incentives, many analysts anticipate that most nonprofit organizations will post the returns on the Internet.