With the IRS now accepting 2025 tax year filings, nonprofit organizations are officially in filing season. While many organizations focus on deadlines, the most successful and least stressful Form 990 filings begin with early preparation and strong internal review.
For executive directors, CFOs, and board leaders, this is the ideal time to step back and assess whether key information is complete, accurate, and ready for disclosure.
Key Areas to Review Now
1. Board and Officer Information
Confirm that officer and director rosters are current, including start and end dates, titles, compensation, and independence. Governance disclosures are among the most visible sections of Form 990 and frequently raise questions from donors, regulators, and the public.
2. Major Donor and Grant Activity
Review significant contributions, donor-advised fund receipts, government funding, and foundation grants. Proper classification affects Schedule A public support calculations and Schedule B donor disclosures.
3. Fundraising and Special Events
Identify all fundraising activities, including small events, online campaigns, raffles, auctions, and sponsorships. These often trigger Schedule G reporting and require detailed breakdowns of gross receipts, benefits provided, and expenses.
4. Related-Party Transactions and Compensation
Payments to board members, officers, or their businesses must be disclosed and evaluated for reasonableness and conflicts of interest. Early identification prevents last-minute compliance issues.
5. Revenue Streams That May Create UBI
Program fees, advertising, sponsorships, facility rentals, merchandise sales, and other business-like activities should be reviewed for unrelated business income implications and potential Form 990-T filing requirements.
6. Governance Documentation
Ensure that conflict of interest policies, whistleblower policies, document retention policies, and board review processes are current and properly documented. These are core transparency indicators on Form 990.
Why Early Preparation Matters
Many Form 990 challenges do not arise from complex tax rules but from incomplete or delayed information. When key operational details surface late in the process, organizations face:
- Increased compliance risk
- Rushed disclosures
- Inaccurate public reporting
- Unnecessary follow-up and rework
- Heightened board and auditor scrutiny
A proactive, structured information-gathering process allows leadership to identify issues early, address them thoughtfully, and ensure that the organization’s public filing accurately reflects its mission, activities, and governance.
How TrimnerBeckham Supports Nonprofit Readiness
TrimnerBeckham works with nonprofit organizations to move beyond last-minute form preparation and toward year-round compliance readiness. This includes:
- Reviewing governance and compensation structures
- Assessing public support and donor reporting
- Evaluating fundraising and UBI exposure
- Strengthening disclosure quality
- Reducing audit and regulatory risk
Filing season is not just about meeting a deadline. It is an opportunity to strengthen transparency, governance, and public trust through accurate and well-supported reporting.
