Policy on Internal Revenue Service Tax Forms 990 and 990-T

Policy Title Policy on Internal Revenue Service Tax Forms 990 and 990-T
Policy Category Board of Trustees
Original Policy Approval Date June 28, 2016
Policies Superseded None
Responsible Office Board of Trustees
Related Policies None
Frequency of Review Every Three (3) Years
Date of Next Review June 28, 2022
Date of Revision  

I. Scope

This Policy on Internal Revenue Service ("IRS") Tax Forms 990 and 990-T ("Policy"), applies to senior management and all members of the Board of Trustees of Arcadia University.

II. Policy Statement

Arcadia University is an exempt 50l(c)(3) organization. Although exempt organizations are exempt from federal income taxes, they are still required to file IRS Tax Forms 990 and 990-T (Collectively "Tax Returns") on an annual basis. Arcadia University recognizes that the governance role of its Board of Trustees includes the annual review of the Tax Returns. The purpose of this Policy is to set forth certain guidelines regarding the review of Arcadia University Tax Returns.

III. Policy

Senior management of the University is responsible for the timely preparation of the Tax Returns. It is the Policy of Arcadia University that the Tax Returns will be provided to the Audit Committee of the Board of Trustees sufficiently in advance of the filing deadline to enable a detailed and conscientious review by all members of the Audit Committee.

Once the Audit Committee has reviewed the Tax Returns, copies shall be made available to all Board of Trustees members prior to the filing. Board of Trustee members shall exercise their best efforts to review the Tax Returns and submit comments and/or revisions no later that the date specified by the Audit Committee.

IV. Definitions

Tax Form 990 (Return of Organization Exempt form Income Tax) is a public informational document used by exempt organizations to describe their missions, revenues, and expenses and is required to be filed with the IRS annually under section 50l(a) of the Internal Revenue Code of the United States. 

Tax Form 990-T (Exempt Organization Business Income Tax Return) is a document that an exempt organization, having more than $1,000 or more of gross income from an unrelated business, must file. For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption. 
 

V. Effective Date

This Policy is effective when signed by the Chair of the Arcadia University Board of Trustees

VI. Date of Approval

June 28, 2106