CNC Form 990 & Compliance Calendar 2 — Questions and Answers
Question 1: Which Form 990 schedule must be completed by organizations with gross receipts over $15,000 from gaming activities?
- Schedule G (Correct answer)
- Schedule B
- Schedule M
- Schedule R
Correct answer: Schedule G
Schedule G (Supplemental Information Regarding Fundraising or Gaming Activities) is required when gaming gross receipts exceed $15,000.
Question 2: Schedule L of Form 990 requires disclosure of transactions with which group?
- Major donors over $10,000
- Interested persons (Correct answer)
- Government grant agencies
- Foreign contractors
Correct answer: Interested persons
Schedule L discloses transactions with interested persons, including loans, grants, and business transactions between the organization and insiders.
Question 3: A nonprofit with ownership interests in for-profit subsidiaries must complete which Form 990 schedule?
- Schedule E
- Schedule F
- Schedule R (Correct answer)
- Schedule H
Correct answer: Schedule R
Schedule R (Related Organizations and Unrelated Partnerships) discloses ownership interests in subsidiaries, related organizations, and joint ventures.
Question 4: Which type of organization is required to complete Schedule H of Form 990?
- Private foundations
- Tax-exempt hospitals (Correct answer)
- Schools with endowments
- Religious organizations
Correct answer: Tax-exempt hospitals
Schedule H is required of 501(c)(3) organizations that operate one or more hospital facilities, covering community benefit and billing practices.
Question 5: Schedule B contributor information may be withheld from the public inspection copy of Form 990 because:
- The IRS keeps donor data confidential by default
- Donor privacy protections allow redaction of names and addresses (Correct answer)
- Only foundations must disclose donors
- Disclosure is optional for all schedules
Correct answer: Donor privacy protections allow redaction of names and addresses
Organizations may redact contributor names and addresses from the public copy of Schedule B, though they must provide the complete version to the IRS.
Question 6: Form 990 Schedule O serves what primary purpose?
- Reporting officer compensation details
- Providing supplemental narrative explanations for other parts (Correct answer)
- Listing major independent contractors
- Disclosing foreign country activities
Correct answer: Providing supplemental narrative explanations for other parts
Schedule O is used for supplemental information and narrative responses that are too lengthy to fit within the main form's designated spaces.
Question 7: Which Form 990 schedule must be completed by a 501(c)(3) organization that operates a school?
- Schedule C
- Schedule D
- Schedule E (Correct answer)
- Schedule F
Correct answer: Schedule E
Schedule E (Schools) is required for 501(c)(3) organizations that operate a school and must document their nondiscrimination policies.
CNC Form 990 & Compliance Calendar 2
Which Form 990 schedule must be completed by organizations with gross receipts over $15,000 from gaming activities?