HOW TO READ THE CENTER'S 990

We recognize that the IRS Tax Form 990 is a complex document and we thank our accountants at Schenck Business Solutions for ensuring our compliance with the IRS.

While it takes years of training to be able to read and fully understand the information presented in the 990, we have attempted to answer some of the public’s questions regarding specific topics.

How was the Center able to cover the $3,371,180 deficit listed on line 18 of page 1?
There are two important pieces of information needed to answer this question. First, line 20 needs to be added to line 18 to calculate the change in (tax) net assets for the year. Lines 18 and 20 together calculate a $1,928,220 deficit. Second, included in the expenses is a non-cash item called depreciation (see page 2, line 42) in the amount of $1,650,770. This item is a required entry that increases expenses, but no cash was exchanged. So, if you take the deficit of $1,928,220 and add back the non-cash depreciation of $1,650,770, the deficit would calculate to $277,450.

How was the Center able to cover the cash deficit?
The founders of the Center, when raising funds for the capital campaign, raised funds for the operational start-up of the organization. These funds were to subsidize operations for the first five years of operations to allow the teams to focus on building a new organization. This is similar to any new business that relies on investors, who expect to realize a return on their investment after the organization is operating at full capacity. The Center’s investors (donors) expect to see the Center’s mission impacting our community, as their return on investment.

I thought the IRS required nonprofit organizations to list their top contributors.
The IRS does require nonprofit organizations to list certain contributors and the amount of the gift on Schedule B of the 990. However, this form is not open for public inspection, as the contributor’s name and address is listed and the IRS respects the right to donor’s privacy.