The IRS released the final Form 990 for 2011, with most of the significant changes applying to tax-exempt organizations with joint ventures and investment partnerships; foreign activities or investments; and hospitals.
The most important clarification is in the instructions that elucidate that organizations should answer “No” if they merely inform their governing body that a copy of their Form 990 is available upon request, instead of having each of them review the form before filing.
In the section of the form on board governance practices, the 2011 form requires that if a governing body delegates broad authority to an executive committee or similar committee, the filing organization should explain those responsibilities in Schedule O.
An organization with joint ventures and investment partnerships will now need to use Schedule K-1 reported amounts, rather than amounts from their books and records, to report revenues, expenses and assets regarding these investments.
View the complete changes here.