Form 990-PF preparation for private foundations

A private foundation is a 501(c)(3) organization funded mainly by one person, family or company rather than by the general public. Because it lacks the oversight that broad public support brings, the tax law watches it more closely, and Form 990-PF is how. Every private foundation files it, every year, whether it holds $40,000 in a brokerage account or a large endowment, and whether or not it made a grant. The 990-N and 990-EZ are never options.

We prepare the 990-PF for family foundations, corporate foundations and nonexempt charitable trusts treated as private foundations. Our Form 990-PF guide explains the return in more detail.

What's included

• Revenue and expenses in the return's separate columns for the books, net investment income and charitable disbursements.
• The excise tax on net investment income, currently 1.39%, with the payment plan around it.
• The minimum distribution calculation: the minimum investment return (5% of the average fair market value of assets not used for charitable purposes), the distributable amount and your qualifying distributions, carried through the undistributed income section.
• The balance sheet and investment detail the return requires.
• The grants list: grants and contributions paid during the year and those approved for future payment, with recipients and purposes.
• Officers, directors, trustees and foundation managers, with compensation.
• The activity questions on self-dealing, excess business holdings, jeopardizing investments and taxable expenditures, answered with you.
• Schedule B, with the reminder that on a 990-PF contributor names and addresses are public.
• Estimated tax planning for the coming year, and Form 8868 if you need more time.
• E-filing, the IRS acceptance and a public-inspection copy.

What we need from you

• Last year's 990-PF and your IRS determination letter
• Year-end financial statements, or a general ledger and trial balance
• Brokerage and bank statements for every month of the year (monthly values feed the minimum investment return)
• Realized gains and losses, with cost basis, and Forms 1099 from each custodian
• Any K-1s from partnerships or LLCs the foundation invests in
• A list of every grant paid and every grant approved for future payment: recipient, address, amount, purpose and the recipient's status
• Expenditure responsibility reports, if you made grants to organizations that aren't public charities
• Officers, directors and trustees, with hours and any compensation or expense reimbursements
• Contributions received, with donor names, addresses, amounts and descriptions of any property given
• Estimated tax payments made during the year
• Any transactions between the foundation and its founders, board members, their families or their businesses

How it works

1. Short consultation about the foundation's assets, grantmaking and filing history.
2. Fixed quote and checklist. Nothing starts until you approve.
3. Preparation, including the excise tax and distribution calculations; an extension if records are late.
4. Review with you. We walk through the draft, the distribution position and anything that looks like a restricted transaction.
5. Your signature. A trustee or officer signs Form 8879-TE electronically.
6. E-filed and confirmed, with next year's estimated payments set out.

Deadlines to know

The 990-PF is due on the 15th day of the 5th month after year end (May 15 for a calendar year), moved to the next business day after a weekend or holiday, and must be e-filed. Form 8868 filed by that date gives six more months to file, not to pay: any excise tax still owed is due by the original date. Foundations that expect $500 or more of tax make quarterly estimated payments; for a calendar-year foundation the first is generally due May 15.

Late returns face the same daily penalty as the Form 990: for returns required to be filed in 2026, $25 a day (up to the lesser of $13,000 or 5% of gross receipts), or $130 a day up to $65,000 above $1,309,500 of gross receipts. See due dates and extensions and payout and excise tax.

When this gets more complex

• A distribution shortfall. Undistributed income left at the end of the following year faces a 30% tax. We show you the gap while there is still time to close it.
• Self-dealing or other restricted transactions. These can require Form 4720, a separate return that an 8868 for the 990-PF does not extend.
• Alternative investments. Partnership K-1s can bring unrelated business income and a Form 990-T.
• Grants to non-charities or individuals, which call for expenditure responsibility or approved procedures.
• Missed years. See late returns and reinstatement.

990IRS.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.