Finding & Reporting Form 990 Filers' Related Organizations Webinar

Mastery of the Form 990 requires ability to identify the filer's "related organizations" (indeed, doing so is THE FIRST preparation step called for in the 990 instructions!) This "990-term-of-art" employs four commonly-found categories: the first three utilize a 990-specific definition of "control" as the basis for determining related organizations due to their "parent," "subsidiary," or "sibling" status; and a fourth applies when a supporting organization is in the mix. This session will fully illuminate, with real-world examples, the full panoply of nuances that preparers confront in working with each of those four categories. Participants will find multiple take-away tools and tips to master the underlying definitional precepts of direct and indirect "control" the 990 imposes. Thereafter, the materials and author/instructor turn to a complete walk-through of the entirety of preparation points for Parts I-V of the Schedule R, as well as a review of the Schedule's Parts I and VI. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Learning Objectives:

After attending this presentation you will be able to...

• Identify the principles by which control vests when determining parent-subsidiary, subsidiary-parent or brother-sister status between the filer and another not-for-profit entity
• Identify how control vests over an entity that is a stock corporation
• Appreciate the nuances of looking for "commonly controlled" related organizations (i.e., sibling organizations)
• Apply diagrams of the most-common indirect control scenarios 
• Understand what information is disclosed when reporting as a related organization: a not-for-profit who is tax-exempt in Schedule R, Part II; a corporation or trust in Schedule R, Part V, or an entity taxed as a partnership in Schedule R, Part III
• Recognize the conditions in which transactions with a related organization will need have dollar details disclosed in Schedule R, Part V, line 2

Highlights

The major topics that will be covered in this course include:

• Exploring the reach of "parent-subsidiary" and "sibling" status when the party who is the subject of "control" is a nonprofit/nonstock entity: finding that the filer is "controlled" or that a third-party nonprofit is a related organization of the filer due to who it is "controlled" by
• Understanding what is considered "control" when a party who would be the related organization is a stock corporation, partnership and/or LLC taxed as a partnership, or trust
• The ramifications of applying the former in cases of related organization status vesting via indirect "control"  
• The two automatic status categories of related organizations:  supporting organization connections (one entity being a 501(c)(3) with 509(a)(3) sub-classification from connection to another entity) and VEBA-unique categories 
• Disclosures required on Schedule R's Parts II-V once the presence of one or more related organizations is ascertained
• Part V additional disclosures when a filer has a related organization who is a "controlled entity" (this via 512(b)(13)'s UBIT-reach in the case of certain revenues from controlled organizations)
• Review of the two 'other' Parts of Schedule R: Part I on disregarded entities, and Part VI on unrelated partnerships