The balance sheet section of Form 990-PF provides an overview of your foundation’s financial position at the beginning and end of the tax year. It reflects the foundation’s assets, liabilities, and net assets or fund balances, giving insight into its overall financial health and the changes during the year.
The balance sheet contains three sections.
- Assets – They represent anything owned by the organization that has value.
- Liabilities – Any debts or obligations the foundation owes.
- Net Assets or Fund balances – Assets remaining after subtracting liabilities from the assets.
The IRS requires you to present financial details showing the foundation’s position at the start of the tax year (Column A) alongside its position at the end of the tax year (Column B).
The total assets reported must match the combined value of Total liabilities and the Total net assets or fund balances.
| Total Assets (Line 16) = Total liabilities(Line 23) and net assets/fund balances (Line 30) |
Note: The year-end book value must reconcile and align, whereas the fair market value is not required to match.
Assets:
Total assets on Line 16: Add the totals in columns (A) and (B) of lines 1 through 15.
- Beginning of the Year(Column A) = $81,000
- End of Year(Column B) = $98,000
Note: If there are no assets in Column A or Column B, leave Lines 1-15 blank on the appropriate columns.
Liabilities:
Total Liabilities on Line 23: Add the totals in columns (A) and (B), lines 17 through 22.
- Beginning of the Year(Column A) = $21,000
- End of the Year(Column B) = $27,000
Note: If there are no liabilities in Column A or Column B, leave Lines 17-22 blank on the appropriate columns.
Net Assets or Fund Balances:
The organizations that follow FASB ASC 958 guidelines should complete Line 24 and Line 25. Organizations that do not follow FASB ASC 958 guidelines should complete Lines 26, 27, and 28.
The total of these sections will be displayed in Line 29.
In this example, the information is filled for the organization that does not follow FASB ASC 958 guidelines,
Total net assets or fund balances on line 29: The total of lines 26 through 28
- Beginning of the Year(Column A) = $60,000
- End of the Year(Column B) = $71,000
Total liabilities and net assets/fund balances: Line 30
Line 30 will display the combined value of Total Liabilities and Total net assets or Fund balances.
| Line 30 = Total Liabilities (Line 23) + Total net assets or fund balances (Line 29) |
Therefore,
Total Assets(Line 16) = Total liabilities and net assets/fund balances(Line 30)
Next, we can determine how to reconcile the net assets in the Analysis of Changes in Net Assets or Fund Balances (Part III).
In Part III Line 1, you must report your foundation’s total net assets or fund balances at the beginning of the tax year. This amount should match the amount reported in Part II Line 29 Column A.
Taxzerone will pull the Current year’s Excess of Revenue over Expense from Part I Line 27a to Part III Line 2.
Based on the value entered on Line 1 through Line 5, The Total net assets or fund balances at end of year will be calculated on Part III Line 6.
| Line 6 = Sum of Line 1 through Line 5 |
And this value must be equal to the Part II Line 29 Column B.
The values in the balance sheet and Analysis of Changes in Net assets or Fund balances are now balanced; therefore, we’ve completed the Analysis of Changes in Net Assets or Fund Balances.
Last modified: January 2, 2026
