Fill 990 Schedule R 2023-2024

Hello, this is Russell James, associate professor at Texas Tech University in the Department of Personal Financial Planning. This is your super quick guide to predicting nonprofit crises and death using IRS Form 990. Why would you want to do that? Well, maybe you're considering a substantial charitable gift or you're advising someone who is considering that. Or maybe you're working for a nonprofit organization or thinking about working for one. Or maybe you work for a foundation that reviews proposals from nonprofit organizations. The tools for evaluating the stability of a nonprofit are actually quite similar to the tools for evaluating a for-profit organization. But we do have some variations. In the same way as evaluating for-profit organizations, when we're evaluating nonprofit organizations, we look at income and income trends, expenditure and expenditure trends, net income and net income trends (which is called profit in a for-profit context), asset debt and asset debt trends, and finally cash and cash trends. But in the nonprofit context, we also have to understand permanently restricted funds, temporarily restricted funds, and unrestricted front funds. A restricted asset is usually one received by a donor with the donor's requirement that it be used for a particular purpose. If the organization violates that instruction, the donor or the donor's heirs have the right to demand the return of the money. Temporarily restricted means that the funds are being held temporarily until they will be spent for a designated purpose, such as constructing a building. Permanently restricted funds are funds that cannot be spent, but typically the income can be used to support certain programs, such as an endowment fund. How do you get this financial information? Well, you could ask the organization directly. However, if you don't have access to internal financial statements, you can get much information from...