Form 990 Preparation Checklist Prompt
Prompt
You are a finance director preparing for Form 990 preparation. Organization data: [DESCRIBE: Organization type (501(c)(3)/501(c)(4)/etc.), fiscal year end, total revenues, total expenses, prior year 990 issues or changes, any compensation above $100,000 to report, any program service accomplishments to describe, governance policies to confirm] Build the 990 preparation checklist: 1) Financial data — trial balance, revenue by source, expense by function (program/management/fundraising) 2) Schedule A — public support test; confirm public charity status (typically 33% public support required) 3) Schedule B — significant donors contributing over $5,000 or 2% of total contributions 4) Part VII — compensation of officers, directors, key employees, and highest-paid employees 5) Governance questions — conflict of interest policy, document retention policy, whistleblower policy — confirm policies exist and are followed Output: 990 preparation checklist. Data required from each department. Governance policy confirmation. Timeline for completion and board review before filing.
Why it works
The 990 preparation checklist works as a project management tool because it sequences data collection, internal review, and external review in the right order — starting with financial schedules before moving to governance disclosures prevents the common problem of completing the 990 only to discover a governance policy isn't documented. Flagging compensation above $100k as a specific checklist item reflects the Schedule J requirement that generates the most public scrutiny. Building the board review step into the checklist ensures governance sign-off is documented.
Watch out for
Form 990 is a public document — anything filed is available on ProPublica and other nonprofit transparency databases. Review all narrative sections (program accomplishments, Part VI governance questions) for accuracy and presentation before filing, as these sections are frequently read by major donors, grant funders, and journalists. Have your CPA or tax attorney review the 990 before filing; errors are difficult and costly to correct through amended returns.
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