The purpose of IRS 990 - Schedule A 2018 Form is to gather essential information about the public support received by a tax-exempt organization. This form is specifically designed for organizations classified as public charities, which depend on support from the general public, rather than a single source or limited group of individuals or entities.
Here are a few key points regarding the purpose of IRS 990 - Schedule A 2018 Form:
1. Public Support: This form helps the IRS determine the level of public support that an organization receives in order to maintain its tax-exempt status. It requires detailed information about the type and amount of public support during the tax year.
2. Eligibility for Public Charity Status: Schedule A is crucial in determining if an organization qualifies as a public charity (rather than a private foundation). By analyzing the information provided, the IRS assesses whether the organization meets the public support test, which requires a significant portion of its funding to come from the general public.
3. Donor Contributions: The form requires organizations to include information about their largest sources of public support, such as individual donors, corporations, foundations, or government grants. It ensures transparency regarding the organization's financial support and helps prevent abuses of tax-exempt status.
4. Public Benefit: The information provided on Schedule A helps the IRS evaluate the organization's commitment to serving the public interest. This includes demonstrating that the organization's activities are primarily focused on charitable, educational, religious, or other exempt purposes, rather than serving private or personal interests.
5. Compliance Monitoring: Filing Schedule A helps the IRS keep track of charitable organizations and monitor their compliance with tax laws. It enables the IRS to ensure that organizations are fulfilling their public purpose and eligibility criteria, and to identify any potential issues or inconsistencies in their operations.
Overall, the purpose of IRS 990 - Schedule A 2018 Form is to collect vital information that allows the IRS to assess a tax-exempt organization's eligibility for public charity status, evaluate its public support, and ensure compliance with regulations pertaining to tax-exempt organizations.