IRS Form 990
The Internal Revenue Service Form 990 is used by 501(c)(3) not-for-profit organizations to submit information required by the federal government for tax-exemption. The Form 990 is easily accessed by the public and is often reviewed by community members, policy makers, the media, and consumer advocates. The IRS Form 990 presents an opportunity to tell the community benefit story and to document that not-for-profit health care organizations are fulfilling their tax-exempt purpose.
New Schedule H for Hospitals
On Dec. 20, 2007, the IRS released a revised Form 990. The revision includes a new schedule, Schedule H, which hospitals must use to report their community benefit activities and other tax-exemption related information. The new schedule is based on CHA's community benefit reporting guidelines.
The IRS has recently released the 2009 Form 990, schedules and instructions, which have been revised to modify and clarify certain reporting requirements (see links below). As previously announced, organizations required to file Schedule H must complete all parts of the schedule for the 2009 tax year. The revisions also clarify how to report indirect interests in joint ventures, such as a physician group practice owned by staff physicians of the filer's hospitals.
- IRS Nonprofit Hospital Study — Final Report (Feb. 12, 2009)
- IRS 990, Core Form (.pdf)
- IRS 990, Schedule H (.pdf)
- IRS 990, Schedule H Instructions and Worksheets (.pdf)
- IRS Resources
- Governance and Related Topics— Current IRS positions on nonprofit governance. Covers six topics: Mission, organizational documents, governing body, governance and management policies, financial statements and Form 990 reporting, and transparency and accountability.
- Governance and Tax-Exempt Organizations – Examination Materials – a checklist and guidesheet used by IRS' Exempt Organizations Examination agents to capture data about governance practices and the related internal controls of organizations being examined.
- IRS issues Governance and Tax-Exempt Organizations – Examination Materials (Dec. 15, 2009)
For the 2008 tax year, only section V of Schedule H will be required to be completed. All other parts of the form will be optional for the 2008 tax year. The entire Schedule H must be completed for tax years beginning in 2009.
Schedule H Resources
- Essay Questions Resource (.pdf)
- Recording of the Community Benefit Webinar — IRS Form 990, Schedule H: Issues and Answers
- New Resource for Boards! These educational resources on the revised IRS Form 990 and new Schedule H are designed to be easily incorporated into general and committee board meetings.
- Video — describes the community benefit tradition of Catholic health care and the new IRS reporting requirement
- The IRS Form 990, Schedule H: Community Benefit and Catholic Health Care Governance Leaders — a booklet that describes the new IRS Form 990, Schedule H, what boards need to know about this new IRS reporting requirements, and why community benefit and tax exemption are important issues for Catholic health care
- Additional video clips — hear attorney Doug Anning address several sections of the Form 990 and Schedule H in a video Q and A section as well as review a video about a successful community benefit program in Tennessee: Knoxville Area Project Access (KAPA).
- PowerPoint Presentations — Three presentations, each provided in a self advancing version and a second version with speaker notes, explain how community benefit, executive compensation and governance practices are addressed in the revised IRS Form 990.
- The Mission Imperative of Community Benefit card — this simple 4x6 card shares the important mission-based message about why Catholic health care ministries implement and conduct community benefit programs.
- Complimentary copies of these resources have been distributed to CEOs of CHA member health systems and hospitals, system community benefit leaders and system general counsels. CHA members can order copies of these resources at no charge at CHA's Online Store. These resources are available for sale to organizations that are not members of CHA.