Form 990-PF Instructions
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How to Fill Out your Form 990-PF for 2023 :
Step-by-Step instructions
- Updated February 07, 2024 - 2.00 PM - Admin, Tax990
The IRS requires Private Foundations to file Form 990-PF in order to report their nonprofit expenses, revenue, activities, officer details, capital gains, and distributable amount of charitable distributions during the tax year.
Form 990-PF is due by the 15th day of the 5th month from the organization's accounting period ending.
This article comprises step-by-step instructions on how to fill out your Form 990-PF.
Instructions to Complete Form 990-PF
Form 990-PF (Return for Nonprofits) includes basic organization information and 16 parts. Here are the instructions to e-file your Form 990-PF.
Basic Information About Your Organization
The IRS requires you to enter details about the corresponding Tax year, Name, and Address of
your foundation.
Then you can provide the following details:
A. Employer identification number
B. Telephone number
The fields (C-H) can be checked if applicable for your foundation:
C. Exemption application is pending
D. Foreign organization
E. Terminated under section 507(b)(1)(A)
F. In 60-month termination under section 507(b)(1)(B)
G. Purpose of return (Initial return, Final return, Address change, Initial return of a former public charity, Amended return, Name change)
H. Type of organization:
Section 501(c)(3) exempt private foundation
Section 4947(a)(1) nonexempt charitable trust
Other taxable private foundation
I. Enter the Fair market value of all assets at the end of the year.
J. Select the Accounting Method:
Cash
Accrual
Part I - Analysis of Revenue and Expenses:
Part I consists of two sections:
Revenue
Operating and Administrative Expenses
Revenue
In this section, you are required to report the revenue generated by your foundation from
various sources.
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Lines 1 to 11:
Mention the revenue generated as Contributions, Gifts, Grants, Interest on savings and temporary cash investments, Gross rents, Net gain, Capital gain net income, Net short-term capital gain, Income modifications, Gross sales less returns, and allowances.
Note:
Mention your foundation’s Schedule B requirement on Line 2.
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Line 12:
Add Lines 1 through 11 and enter the Total Revenue.
Operating and Administrative Expenses
This section requires you to report the expenses made by your organization for operational and administrative purposes.
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Line 13 to line 23:
Enter the expenses incurred as Compensation of officers, directors, trustees, Other employee salaries and wages, Pension plans, Employee benefits, Legal fees, Accounting fees, and more.
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Line 24:
Add lines 13 through 23 and enter the total value of operating and administrative expenses.
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Line 25:
Enter the amount of Contributions, gifts, and grants paid
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Line 26:
Add lines 24 and 25 to derive the total expenses and disbursements.
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Line 27:
Enter the following information:
Excess of revenue over expenses and disbursements
Net investment income
Adjusted net income
Part II - Balance Sheets:
Part II consists of three sections:
Assets
Liabilities
Net Assets or Fund Balances
Assets
This section requires you to provide details regarding your foundation’s assets.
-
Lines 1 to 15:
Report details about Cash, Savings, and temporary cash investments, Accounts receivable, Pledges receivable, Grants receivable, Receivables due from officers, directors, trustees, and loans receivable, Inventories for sale or use, mortgage loans, and other assets.
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Line 16:
Enter the Total Assets value.
Liabilities
Here, you are required to report details about various liabilities that your foundation has.
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Lines 17 to 22:
Enter the value for Accounts payable and accrued expenses, Grants payable, Deferred revenue, Loans, Mortgages, other notes payable, and other liabilities.
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Line 23:
Add lines 17 through 22 and enter the value of Total Liabilities.
Net Assets or Fund Balances
Following the assets and liabilities, you can report your foundation’s net assets or fund balances in
this section.
Note:
If your foundation follows FASB ASC 958, complete lines 24, 25, 29, and 30. If your foundation follows FASB ASC 958, complete lines 26 through 30.
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Lines 24 and 28:
Enter the values for net assets with and without donor restrictions, capital stock, trust principal, current funds, retained earnings, accumulated income, endowment, and more.
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Line 29:
Enter the value of Total net assets or fund balances.
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Line 30:
Enter the Total liabilities and net assets/fund balances.
Part III - Analysis of Changes in Net Assets or Fund Balances:
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Lines 1 to 6:
This part requires you to report the difference between your foundation’s net assets or fund balances at the beginning and end of the tax year.
Part IV - Capital Gains and Losses for Tax on Investment Income:
In this part, you must report the gains and losses in terms of long-term and short-term investment income. This part doesn't apply to foreign organizations.
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Line 1:
Enter the following details in the tabular column provider:
The kind(s) of property sold
Describe whether the property was Purchased or Donated
Date acquired
Date sold
Gross sales price
Depreciation allowed
Cost or other basis plus the expense of sale
Gain or loss
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Line 2:
Enter the value of capital gain net income or net capital loss.
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Line 3:
Enter the net short-term capital gain or (loss) as described under sections 1222(5) and (6).
Part V - Excise Tax Based on Investment Income (Section 4940(a), 4940(b), or 4948—see instructions):
This part needs to be filled out only by the private foundations described under Sections 4940(a),
4940(b), or 4948.
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Line 1:
If you are filing for an exempt operating foundation described in section 4940(d)(2), check here & enter “N/A” on line 1. For other domestic foundations, enter 1.39% (0.0139) of line 27b.
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Lines 2 to 5:
Enter the amount of tax under section 511, and the tax based on the investment income.
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Lines 6 to 11:
Enter the estimated tax payments and overpayment credited from the prior year, tax paid with the application for extension, the penalty for underpayment, and overpayment as credited to
estimated tax.
Part VI-A - Statements Regarding Activities:
In Part VI-A, the questions will be in “Yes/No” format:
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Lines 1 to 16:
Answer the questions regarding your foundation’s political activities and expenditures, unrelated business income, substantial contributors & other information.
Mention whether your foundation filed Form 1120-POL or Form 990-T for this year.
Also, enter the states to which the foundation reports or with which it is registered.
Part VI-B - Statements Regarding Activities for Which Form 4720 May
Be Required:
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Lines 1 - 8:
Based on your foundation’s activities, you can choose “Yes” or “No” for the questions listed under this part.
If you answer “Yes” to any of the questions in this part, you are required to file Form 4720 unless an exception applies. It is used to figure out and report the initial taxes imposed under sections 4941, 4942, 4943, 4944, and 4945.
Part VII - Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees & Contractors:
In this part, the IRS requires details of your foundation’s Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors.
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Lines 1- 3:
Provide the following details about the specified members:
Name and address
Title and average hours
Compensation
Contributions to employee
Expense account & other allowances
Enter the compensation details of the five highest-paid employees. Enter “NONE” if not applicable.
Enter the five highest-paid independent contractors for professional services. Enter “NONE” if
not applicable.
Part VIII-A - Summary of Direct Charitable Activities:
The foundation’s four largest direct charitable activities during the tax year, which include relevant statistical information such as the number of organizations and other beneficiaries served, etc.
Part VIII-B - Summary of Program-Related Investments:
Program-related investments are the activities or events carried out to serve the exempt purpose of
your foundation.
Provide information about the 2 largest program-related investments held during the tax year.
Part IX - Minimum Investment Return:
All the foundations except the foreign foundations described in section 4948(b) that aren't claiming operating foundation status should complete this part.
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Lines 1 to 6:
Provide details about the Fair Market Value (FMV) of different assets of your foundation.
Enter the Acquisition indebtedness applicable to assets not used (or held for use), and the cash deemed held for charitable activities.
Using this information, derive the Net value of noncharitable-use assets and Minimum
investment return.
Part X - Distributable Amount:
This part is required to be completed by all the foundations except,
Foreign foundations described in section 4948(b)
Foundations that claim operating foundation status
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Lines 1 - 7:
Based on your minimum investment return, investment income and recoveries, derive the distributable amount for the corresponding tax year that your foundation must distribute by the end of the year as qualifying distributions to avoid the 30% tax on the undistributed portion.
Part XI - Qualifying Distributions:
Qualifying distributions are amounts allocated for religious, educational, or similar charitable purposes.
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Line 1a and 1b:
Enter the value for expenses, contributions, gifts, and program-related investments
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Line 2:
Enter the amounts paid to acquire assets used (or held for use) directly in carrying out
charitable activities. -
Line 3:
Enter the amounts set aside for specific charitable projects that meet the Suitability test and Cash distribution test.
-
Line 4:
Calculate and enter the qualifying distributions based on the information reported above.
Part XII - Undistributed Income:
If you are filing for a foundation that claims operating foundation status for any of the years shown in this part, you aren’t required to complete the portions of Part XII for those years.
The purpose of this part is to show that your foundation is in accordance with the rules for applying its qualifying distributions for the corresponding tax year.
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Lines 1 to 5:
Enter the value of the distributable amount and amounts of excess distributions carried over to the corresponding tax year from the previous years.
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Lines 6 to 10
Enter the total net corpus, undistributed income for which a notice of deficiency has been issued, and derive the excess distributions to be carried over to the next tax year.
Part XIII - Private Operating Foundations:
If your foundation is claiming operating foundation status, you are required to complete this part.
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Lines 1 to 3:
Enter your private foundation’s ruling or determination date and mention the section under which the foundation is described (section 4942(j)(3) or 4942(j)(5)).
Provide details about the alternative that your foundation is relied upon.
Part XIV - Supplementary Information:
You are required to complete this part only if your foundation has $5,000 or more in assets at any time during the year.
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Lines 1 to 3:
Provide information about the foundation, managers, contributions, grants, and similar programs.
Also provide details about the grants and contributions paid during the year or approved to be paid.
Part XV-A - Analysis of Income-Producing Activities:
This part requires you to provide a summary of income generated from sources and through
various activities.
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Lines 1 to 13:
Provide details about program service revenue, membership dues, and assessments, interest on savings and temporary cash investments, dividends, and various other incomes.
Part XV-B - Relationship of Activities to the Accomplishment of
Exempt Purposes:
In this part, you are required to provide an explanation of how each activity reported in column (e) of Part XV-A contributed importantly to the accomplishment of the foundation’s exempt purposes (other than by providing funds for such purposes).
Part XVI - Information Regarding Transfers to and Transactions and Relationships With Noncharitable Exempt Organizations:
This part requires you to report the details regarding the transfers and transactions and other transactions.
It consists of a series of “Yes” or “No” questions.
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Line 1:
Mention if your foundation (directly or indirectly) is involved in any transfers from the reporting foundation to a noncharitable exempt organization of cash, other assets, other transactions, sharing of facilities, equipment, mailing lists, other assets, or paid employees.
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Line 2:
Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) (other than section 501(c)(3)) or in section 52.
If “Yes”, the organization has to fill in the information
(a) Name of organization (b) Type of organization (c) Description of relationship
Signature and Paid Preparer:
After filling out the required details, make sure that your return is signed and authorized by one of your organization’s officers such as President, Vice president or other authorized members.
If your Form 990-PF is prepared by a paid preparer, their details can be provided.
Additional Filing Requirements for Form 990-PF
The private foundations that file Form 990-PF may be required to provide additional information regarding the contributions they receive by filing Schedule B.
If your foundation receives $5000 or more contributions from any one contributor during the tax year, you should include Schedule B with your Form 990-PF.
Simplify your 990-PF filing with Tax 990!
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We have a live support team ready to assist you via live chat, phone, or email regarding any issues you may have while filing. Our team is available Monday through Friday from 8:30 AM - 5:30 PM EST.
Steps to File Form 990-PF:
Follow these simple steps to file your Form 990-PF electronically with Tax990:
Step 1
Add Organization Details
Enter your foundation details manually or provide your EIN and our system will import the required information from the IRS database.
Step 2
Choose Tax Year and Form
Tax 990 supports filing for the current and previous years. Choose the tax year for which you are filing and select Form 990-PF.
Step 3
Enter Form Data
Enter the required information and complete your Form 990-PF.
Step 4
Review your Form Information
After providing all the required information, review your form and proceed.
Step 5
Transmit directly to the IRS
Once you have reviewed your form and verified your information, you can transmit your Form 990-PF
to the IRS.