Session 1 of Borenstein's Form 990 Foundational Series: 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 "parent," "subsidiary," or "sibling" status; and a fourth applies when a supporting organization is in the mix (VEBA’s face a unique rule which is easy to master and also noted). This session fully illuminates, with real-world explanations, the full panoply of nuances that preparers confront in working with 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 an overview of the preparation points for Parts II-V of the Schedule R. 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 in determining parent (of subsidiary), subsidiary (of parent), or sibling status between the filer and another not-for-profit
• Identify how control vests over an entity that is a stock corporation
• Appreciate the principles that yield "commonly controlled" related organizations (i.e., siblings)
• Understand what baseline information is required when reporting existence of related organizations in Schedule R’s Parts:  II (tax-exempt entities); Part IV (corporations or trusts); and Part III (partnerships)
• Recognize the info disclosure sought in Schedule R’s Part V with respect to TYPES of transactions with related organizations and when specific dollar disclosure is required 

Highlights

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

• The reach of "parent-subsidiary" and "sibling" status when the party who is the subject of "control" is a nonprofit/nonstock entity [note this applies both to ascertaining whether the filer is “controlled by” a related organization OR itself "controls" another nonstock entity]
• Understanding what is considered "control" when a potential related organization is: a stock corporation; a partnership or an LLC taxed as a partnership; or a trust
• The challenges of both finding “directly-controlled” related organizations versus imputing related organization status through “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 
• Overview information sought on Schedule R's Parts II-IV once the presence of one or more related organizations is ascertained
• Schedule R Part V disclosure demands when a related organization is a "controlled entity" under, and thus subject to, Code section 512(b)(13)'s UBIT-reach
• Overview of the Schedule R Part V disclosure requirements for 501(c)(3) filers who have a related organization itself recognized as tax-exempt under 501(c)(x) other than 501(c)(3)