Form 990: Governance, Transparency, and Transactions with Interested Persons

Author: Clark Nuber, Lisa McCreedy, Kathryn Okimoto

With the exception of Schedule B, the Form 990 and its related schedules are open for public disclosure. Organizations have a duty to present accurate financial information that reflects their due diligence in maintaining strong governance practices. In connection, proper reporting of Schedule L transactions are intended to provide transparency and disclosure, yet readers can be led to draw conclusions without a full understanding of the rules and definitions. Understanding the who, what, why and thresholds behind governance, compensation and transactions with interested persons is essential to correctly preparing Form 990. Join us to discuss the particulars of Part VI and VII of the Form 990 plus a dive into accurately reporting related Schedule L disclosures.

Publication Date: July 2021

Designed For
CPAs, CFOs, auditors, enrolled agents, staff accountants, tax attorneys, and others who work with not-for-profit organizations.

Topics Covered

• Overview
• Form 990, Schedule R: Related organizations
• Form 990, Part VII: Compensation of individuals
• Form 990, Schedule L: Transactions with interested persons
• Form 990, Part VI: Organization governance

Learning Objectives

• Recognize the factors that may or may not impair the independence of a voting board member
• Identify who and when an individual should be reported on Part VII
• Recognize the reporting requirements for the four parts of Form 990, Schedule L
• Describe the relationship between the responses on Part VI, Part VII, and Schedule L
• Identify the schedule of Form 990 that includes information on related organizations

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of Governance Transparency.

Advance Preparation
None