Let Tax990 Show You How to Complete Form 990-PF Part I!

First Things First–What is Form 990-PF and Who Needs to File it?

Form 990-PF is used by the private foundations to report their revenue, expenses, direct charitable activities, capital gains, losses, officer details, distributable amount, qualifying distributions, and their income-producing activities annually to the IRS. Additionally, it also helps private foundations calculate taxes based on investment income.

Organizations must file Form 990-PF online before the 15th day of the 5th month after their accounting period ends.

In this article, we’ll go over one of the trickier parts of Form 990-PF–the Analysis of Revenue and Expenses (Part I). 

Part I Outline

Form 990-PF Part I is split into two subparts:

  • Revenue
  • Operating and Administrative Expenses

Revenue (Lines 1-12):

Here, you’ll need to report your foundation’s revenue generated from various sources.

  • Lines 1-11: Enter the value of contributions, gifts, interest on savings, dividends, interest from securities, gross rents, net rental income, capital gain net income, net short-term capital gain, income modifications, gross sales minus returns and allowances, and other incomes in the respective lines.

Note: If your foundation is not required to attach Schedule B, check the corresponding box on line 2. 

  • Line 12: Enter the Total Revenue by adding up lines 1-11.

Operating and Administrative Expenses (Lines 13-26):

Report various expenses made by your foundation during the corresponding tax year. 

  • Lines 13-23: Enter the employee salaries and wages spent for the tax year, compensation given to officers/directors/trustees, pension plans, employee benefits, travel expenses, conferences, and meetings.
  • Line 24: Enter the total operating and administrative expenses by adding up lines 13-23.
  • Line 25: Enter the total contributions, gifts, and grants paid.
  • Line 26: Enter the total expenses and disbursements by adding up lines 24-25.

And finally…

Line 27:

After providing all the revenue and expenses information, enter the following details:

  • Excess of revenue over expenses and disbursements
  • Net investment income
  • Adjusted net income

And just like that–you’re done with Part I of the Form 990-PF!

Learn more about Form 990-PF instructions.

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