Regulators, donors, and the media will look at use Form 990 for information on your organization

If the board members and executives of your tax-exempt, non-profit senior care facility have been paying little or no attention to how your Form 990 is completed, we suggest they change their priorities. The new version of Form 990 is substantially different from the prior version and is designed to enhance transparency – painting a clearer picture of the organization’s mission, finances, operations, and use of resources. 

Are you ready to face the biggest change to Form 990 in over 25 years? The Michigan Assisted Living Association (MALA) talks about what you need to be doing.

Form 990 asks for more information

In other words, with the new Form 990 the IRS is asking the leaders of nonprofits like senior care facilities to prove they are responsible stewards of public funds. The request for more information is coming at the same time that there is more public awareness of Form 990 due to congressional and IRS scrutiny of several high-profile organizations in the past few years.

Regulators and grantmakers will continue to use Form 990 data for research and due diligence; in fact, in a recent study, two out of three grant makers asked for Form 990 copies as part of their vetting process. One out of three said the data influenced the grant-making organization’s final decision. In addition, it is likely that members of the media may be more interested in the additional information that will be available on the revised Form 990. 

Form 990 requires more information about compensation

The revised Form 990 calls for more detail relating to the senior care facility’s compensation of officers, directors, trustees, key employees, and highest paid employees. The new Schedule J – Compensation Information – calls for more detail on compensation practices and reporting. To have the information your organization needs to comply, you may require new record-keeping procedures.

The new Form 990 contains 16 schedules that may need to be completed; some of these schedules call for greater attention to related entities, transactions with interested persons, and tax-exempt financing. 

Are you ready for the changes in Form 990?

These changes to Form 990 are the most dramatic in more than 25 years; are you ready to comply? And what kind of story do you want to tell?

We have tax professionals and accounting and audit consultants who understand the nonprofit senior care industry. The firm serves more than 700 senior care facilities and we stay on top of regulations, legislation, and trends that are important to the industry.

We can help you with your Form 990 compliance so that the data tells your organization’s story in an accurate and positive manner.