September 2023
Nonprofit organizations with federal tax-exempt status must file Form 990 with the IRS each year. This information is necessary for an organization’s tax-exempt status to continue. Some states may require their own similar annual returns, but the requirements for Form 990 are consistent throughout the country. If the board of a nonprofit organization reviews the Form 990 before filing it, it should consider adopting best practices to ensure that it minimizes the risks of noncompliance with laws and regulations and maximizes the ability of Form 990 to demonstrate the organization’s strengths. This article addresses the importance of board review of Form 990 and offers suggestions for best practices.
