Accounting Method — 2025 Inst 990 or 990-EZ (Sch A) (PDF)

When completing Schedule A (Form 990), the organization must use the same accounting method it checked on Form 990, Part XII, line 1; or Form 990-EZ, line G. The organization must use this accounting method in reporting all amounts on Schedule A (Form 990), regardless of the accounting method it used in completing Schedule A (Form 990) for prior years, except that in Part V, Sections D and E, distributions must be reported on the cash receipts and disbursements method.

If the accounting method the organization used in completing the 2024 Schedule A (Form 990) was different from the accounting method checked on the 2025 Form 990, Part XII, line 1; or the 2025 Form 990-EZ, line G, the organization shouldn’t report in either Part II or Part III the amounts reported in the applicable columns of the 2024 Schedule A (Form 990). Instead, the organization should report all amounts in Part II or Part III using the accounting method checked on the 2025 Form 990, Part XII, line 1; or the 2025 Form 990-EZ, line G.

Tip: If the organization changed its accounting method from a prior year, it should provide an explanation on Schedule O (Form 990), Supplemental Information to Form 990 or 990-EZ.

Example 1. An organization checks “Cash” on Form 990, Part XII, line 1. It should report the amounts in Part II or Part III using the cash method. If the organization filed a 2024 Schedule A (Form 990) using the cash method, it should report in the 2021 through 2024 columns on the 2025 Schedule A (Form 990) the same amounts that it reported in the 2021 through 2024 columns on the 2024 Schedule A (Form 990).

Example 2. An organization checks “Accrual” on Form 990, Part XII, line 1. The organization reports grants on Form 990, Part VIII, line 1, in accordance with the Financial Accounting Standards Board FASB ASC 958 (see the instructions for Form 990, Part VIII, line 1). During the year, the organization receives a grant to be paid in future years. The organization should report the grant’s present value on the 2025 Schedule A (Form 990). The organization should report accruals of present value increments to the unpaid grant on Schedule A (Form 990) in future years.

Instructions for Schedule A (Form 990) (2025) Catalog Number 11294Q Jan 14, 2026 Department of the Treasury Internal Revenue Service www.irs.gov