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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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