What type of program service accomplishments must be included in Form 990?
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Last modified 3/14/2023 10:17:12 AM EST |
A program service is generally an activity conducted by an organization to various other organizations or individuals to fulfill the purpose/mission of the organization. These activities also help the organization to accomplish its tax-exempt purpose.
A few common examples for program service accomplishments include:
- A section 501(c)(3) organization that conducts charitable activities, College degree programs, Assistance for victims of a natural disaster, or rehabilitation services to residents of a nursing home.
- A section 501(c)(5) labor union organization which conducts collective bargaining on behalf of its members
- A section 501(c)(6) organization that conducts meetings to discuss business issues with the employees.
- A section 501(c)(7) social club that creates recreational and dining facilities for members.
Reporting Program service accomplishments with Tax 990’s Interview-based Filing Style
- Log into your Tax 990 account.
- On the dashboard, click on the "Start New Return" button.
- Select the "Tax Year" and "Form 990" options on the list of Federal Return.
- Enter your organization details and click "Next."
- On the "Organization Tax Year" page, select the calendar or fiscal tax year you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form.
- Under the Organization's Program Service section, select "Start" for Program Service Accomplishments.
- Select the “Add Program Service” button to provide a name and description of your organization's program services
- Click Next
- Now, follow the subsequent steps as prompted
- Review the details, Pay, and click the “Transmit” button to transmit your return to the IRS.
Reporting Program service accomplishments with Tax 990’s Form-based Filing Style
To report your organization’s program service accomplishments using the form-based filing style, please go to Part III, Statement of Program Service Accomplishments. This part consists of 4 lines that need to be completed by your organization.
- In line 1, describe the organization's mission as expressed in its mission statement or otherwise adopted by its governing body, if applicable. If the organization doesn’t have a mission that has been adopted or ratified by its governing body, enter “None.”
- For the question, “Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ?” in line 2, select Yes or No based on your organization’s activity on the statement. If you selected Yes, a popup will appear and prompt you to enter the significant program services conducted by your organization for the current year, which is not included in prior form 990 or 990-EZ.
- Line 3 follows with the same questionnaire as line 2. If your organization selects “Yes” for the question, “Did the organization cease conducting, or make significant changes in how it conducts, any program services?” a popup appears and prompts you to enter the significant changes made in the program services conducted by your organization.
- Line 4 consists of subsections from 4a to 4e.
- Here describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses in lines 4a, 4b, and 4c, respectively.
- Part III Line 4d requires information about Other Program Services. To report those program services (if any), click on the icon, and a popup will appear. In that, provide the following details of the other program services which have to be mentioned in Schedule O and click on the Save button.
- Expenses Amount
- Grants Amount
- Revenue Amount
- Once you have completed all the lines from 4a to 4d, Tax 990 will automatically calculate the Total program service expenses and prefill that value in Part III, line 4e.