Form 990-PF (2019)

What Is Form 990-PF

Form 990-PF is a tax document required by the Internal Revenue Service (IRS) from private foundations in the United States. This form provides the IRS with annual financial information about a private foundation's income, expenses, assets, liabilities, and contributions received during the tax year. It functions both as a tax return and a tool for ensuring compliance with the laws governing the operation of private foundations. Completing this form accurately is crucial for private foundations to maintain their tax-exempt status.

When to Use IRS 990 PF Form

The IRS 990 PF Form is mandatory for all private foundations, regardless of their size, and must be filed annually. It should be used in several situations:

• To report the foundation’s financial activities and operations over the tax year.
• When a private foundation needs to demonstrate compliance with the minimum distribution requirement, ensuring that it has properly distributed its income for charitable purposes.
• If a foundation wishes to report its qualifying distributions, including both direct charitable activities and grant-making activities.
• When a private foundation needs to show its balance sheet details, including assets and liabilities.
• For reporting compensation to officers, directors, trustees, and key employees.
• Filing this form is also necessary for foundations that want to adjust their status or report changes in their operational or financial activities.

How To Fill Out Form 990 PF Instructions

Filling out Form 990-PF can be broken down into a step-by-step process to ensure accuracy and compliance:

Prepare the Basic Information: 

Begin by filling out the foundation's name, address, and Employer Identification Number (EIN).

Statement of Revenue: 

Complete part I, detailing the foundation’s revenue from different sources during the tax year.

Statement of Expenses and Disbursements: 

In part II, list all expenses and disbursements for charitable purposes.

Balance Sheets: 

Part III requires detailed information about the foundation's assets, liabilities, and net assets at the beginning and end of the year.

Analysis of Investments: 

Disclose the foundation’s investments in part IV.

Minimum Investment Return and Distributable Amount:

Parts V and VI calculate the foundation's minimum investment return and distributable amount.

Qualifying Distributions: 

Report the total amount of qualifying distributions for the tax year in part IX.

Compensation: 

Complete part VIII to report the compensation of officers, directors, trustees, and key employees.

Each section of the form provides an in-depth review of the foundation’s financial health and charitable contributions, helping to maintain transparency and compliance.

When Is Form 990 PF Due

Determining when Form 990 PF is due is essential for timely compliance and avoiding penalties. The deadline for filing Form 990-PF is the 15th day of the 5th month after the foundation’s accounting period ends. For most foundations operating on a calendar year, the form is due by May 15th of the following year. Foundations on a fiscal year basis will have a deadline corresponding to the end of their fiscal year. Foundations must prepare to gather all necessary information and complete the form accurately.

By adhering to these guidelines, private foundations can ensure their Form 990-PF filing is accurately completed and submitted on time, maintaining compliance and tax-exempt status.