Nonprofit Literature Blog

Form 990

If you are looking for a comprehensive analysis and detailed instructions for the redesigned Form 990 that will be effective for the 2008 tax year, take a look at the new book The New Form 990: Law, Policy, and Preparation. The volume discusses the legal issues behind each section and takes a line-by-line approach to explaining the information return. You will learn about the expanded sections related to governance, compensation, foreign activities, non-cash contributions, and other areas.

The book is published by John Wiley & Sons, and written by several legal experts: Bruce R. Hopkins, Douglas K. Anning, Virginia C. Gross, and Thomas J. Schenkelberg.

If you are unable to visit our library/learning centers to view the guide, these FAQs may also be helpful:

“What do nonprofit organizations need to know about the new Form 990?”
“Where can I find "pro-bono" legal assistance for my nonprofit organization?”

The Nonprofit Sector in the U.S.: A Brief History

Some of you may know that the Internal Revenue Service provides aggregate tax data through it Statistics of Income (SOI) program. To celebrate SOI’s 90th anniversary, the program began to publish a series of retrospective articles on a number of tax-related subjects.

In particular, you might be interested in “A History of the Tax-Exempt Sector: An SOI Perspective.” As expected from SOI, you will find statistical data on public charities and foundations from tax years 1985 to 2004.  What's surprising is the section of the article that covers the legislative history of tax-exemption in the United States. If you are giving a presentation this topic, Figure A or Appendix B can be used as handouts since they concisely describe major legislation from the Wilson-Gorman Tariff Act of 1894 to the Pension Protection Act of 2006.

The full article is available at the SOI web site.

Venture Philanthropy: A Quick Look at the PRI and the L3C

While most foundations support organizations by providing grants, some grantmakers also provide program-related investments (PRIs) in the form of loans or loan guarantees to finance charitable projects. While the number of foundations that make PRIs is relatively low, more foundations are using PRIs to support various initiatives, including community development projects.

In the April 2008 issue of Trusts & Estates, David T. Leibell and Daniel L. Daniels explain that there may be a new way for foundations to make these social investments and to practice venture philanthropy. It involves a new legal entity, the low-profit limited liability company (L3C), which can seek PRIs and raise funds from private investors as well. The article, “Say Hello to the L3C" indicates that a few states are considering legislation that would authorize the entities, including North Carolina and Vermont.

If you would like to learn more about PRIs or L3Cs, try exploring the links below:

The Foundation Center’s FAQ “What Is a Program-Related Investment?"

PRI Makers Network (for grantmakers)

Americans for Community Development (a coalition that promotes the L3C)

You can also search the Catalog of Nonprofit Literature by using the subjects Program-Related Investments or Venture Philanthropy.