Form 990 Tutorial, page 2

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II. Statement of functional expenses— expenditures by category and major function.

22-44B—amount spent on program services for each entry in lines 22-44.

22-44C—amount spent on management and general expenses for each entry in lines 22-44.

22-44D—amount spent on fund-raising for each entry in lines 22-44.

43. Other expenses— expenses not covered in lines 22-42. Many organizations tend to report a high percentage of their expenses on this line and detail those expenses on an attachment, even though most of those "other expenses" would fit neatly into one of the categories provided on lines 22-42. It is worth checking the form for such an attachment.

Joint Costs—organizations may report joint costs when they conduct a fund-raising solicitation (usually via mail or telephone) that includes an educational component, such as a pamphlet or other material that furthers the organization's exempt purpose. Only a very small percentage of organizations conduct joint education and fundraising campaigns, and for most of them, the joint campaign represents only a small part of their overall program. Donors should be aware, however, that some organizations pursue joint campaigns that account for all or most of their program service expenses. In those cases, one should assess the campaign's educational, as oppposed to its fund-raising, importance.

III. Statement of program service accomplishments—descriptions of activities performed in the previous year that justify the organization's tax-exempt status.

Primary exempt purpose—the main activity for which the organization has received tax-exempt status.

Accomplishments—descriptions of the organization's four largest program services, as determined by total expenses incurred. Although the instructions encourage organizations to provide complete descriptions, they also discourage using attachments for this section. Because the space allotted is insufficient for many organizations to detail their program information, a significant number of 990 filers do not take advantage of this opportunity to describe their activities.

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