When Form 990 Schedule H Instructions 2023-2024

So the first slide, which is slide number two, is an overview of the topics we're going to discuss and our options for this morning. We'll cover the basics of the private foundation form, the layout, and the purpose of each part of the form. Additionally, we'll talk about the tax compliance reporting on the 990-pf. The 990-pf serves multiple purposes, including calculating net investment income and ensuring compliance with minimum distribution requirements. It also includes various questions for federal compliance issues. - Private foundations came about through legislation enacted in 1969, as a response to the abusive use of private foundations. These tax laws have been slowly evolving since then. The 990-pf is the tool used by the IRS Treasury for compliance with federal tax laws and for collecting excise tax. In this session, we will explore the basics of private foundations, the form itself, and address common errors in its preparation. - Let's start with private foundation basics. There are four main types of private foundations. The first is the non-operating foundation, which is commonly known as a grant-making foundation. It is controlled by an individual, family, or group of people, and its main purpose is to make grants to other organizations for charitable activities. It does not directly conduct charitable programs. - The second type is an operating foundation, which resembles a public charity. It operates its own charitable programs instead of making grants to other organizations. However, it does not qualify as a public charity due to factors like insufficient public support or not falling under specific categories such as schools or hospitals. - The third type is a subset of the private operating foundation, known as a private exempt operating foundation. This is often misunderstood as being the same as a private operating foundation, but they are actually quite...