Nonprofit Resources

Board Review and Approval of Form 990-series Returns

As we discuss in the 2014 Higher Education Tax Reporting Trends Project white paper, we’ve found that the governing boards of many higher education institutions are not aware of the information being reported on Form 990-series returns. Further, board members may not be aware of the potential penalties – including personal penalties — for filing a late, inaccurate, or incomplete Form 990.

Every board of directors or trustees should review the Form 990 and have at least enough information to:

1. Protect the institution from losing its exempt status
2. Protect the institution from potential financial penalties
3. Protect board members from potential penalties that they may owe personally

Download the white paper to learn 20 questions board members should be informed enough to answer, as well as detailed information on the potential penalties for incorrect Form 990 filing. (Note that while the white paper focuses on issues relevant to higher education institutions, the information on board review of Form 990-series returns is applicable to all tax-exempt organizations.) This information starts on page 5, but we encourage you to read the full white paper for data and insight on a variety of key tax reporting issues.

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