990 – the annual return filed by a tax exempt organization with the Internal Revenue Service.
1023– the form number to apply for tax exempt status with the Internal Revenue Service.
COF-85 – annual financial form to be filed to the MD Charity Registration Division of the Secretary of State’s office. It provides a financial picture for an organization. It is particularly helpful if an organization’s 990-N doesn’t provide financial data.
Fiduciary Responsibility – the primary responsibility of a board member. Fiduciary responsibility means that it is the board members role to oversee how the resources of the organization are developed and utilized to further the mission and goals of the organization in a responsible manner. To fully discharge this duty, board members must be present at meetings and fully engaged with the organization by reading and understanding the information provided.
Nonprofit or charity – any organization that is formed for the public good. Generally, nonprofits are incorporated in their state of operation, have by-laws and other governance structure to dictate how the organization conducts business.
Tax-exempt – a nonprofit that has submitted an application to the Internal Revenue Service seeking recognition as a tax-exempt organization meaning the organization does not pay any taxes on revenues. Other benefits include donors being able to deduct donations to organizations that are 501(c)(3)’s. These organizations are not privately owned and must comply with federal and state requirements for governance structure, reporting to the government, and public disclosures.