Exempt Organizations Annual Reporting Requirements - Form 990, Part VI and Schedule L: Board Review of Return


Why do you ask whether the board reviewed Form 990 before it was filed?

Part VI, Question 11a, Form 990 asks whether the final Form 990 was provided to all of the organization's governing board members before it was filed. All organizations must explain in Schedule OPDF what process, if any, the organization's governing board and management use to review the Form 990. Because the Internal Revenue Code and regulations do not require the governing board to review the Form 990, the IRS does not require an organization's board to do so. However, we believe that there may be a correlation between board review of the Form 990 and the accuracy and effectiveness of the form in conveying the organization's mission, activities, accomplishments, finances, compensation and business relationships and transactions. Also, board review of Form 990 may reflect good governance; in particular, a board that is more proactive, informed and engaged in ensuring that the organization continues to be organized and operated exclusively for exempt purposes.