Full accounting of income, expenses, and donors.Basic requirements for filing Form 990-EZ: It all depends on the complexity of your organization and funding sources. The filing can be as short as four pages. Small to mid-sized nonprofits with annual revenue receipts between $50,000 and $200,000 or total assets valued at less than $500,000 can use this form. The 990-EZ may be simpler than the full form, but it’s still a complex declaration of your organization’s finances. When you see the “EZ” don’t make the mistake of thinking it will be easy.
Short form for nonprofits earning $50,000-$200,000 a year But if you have a CPA, it’s still a good idea to have them look at it rather than putting your tax-exempt status at risk. It’s reasonable that a nonprofit could handle filing Form 990-N on its own. Whether or not the organization is still operatingįorm 990-N is a breeze compared to the following two options, Form 990-EZ and Form 990.The information included on Form 990-N is straightforward and standard to all versions of Form 990:
Exists for 1-3 years and is reporting less than $60,000 in revenue.Exists for 1 year or less and is reporting less than $75,000 in revenue.Your organization can file the very simple 990-N if it: However, there are a few exceptions for newer organizations. Only tax-exempt organizations with less than $50,000/year in annual revenue receipts are eligible to submit Form 990-N. It simplifies the filing process for very small and startup nonprofits. Simple e-postcard for nonprofits earning less than $50,000/yearįorm 990-N is a virtual postcard which must be filed online.
PRO TIP: If you’re still waiting for your Form 1023 (application for tax exempt status) to be processed, you should still file Form 990 in anticipation of your application being approved. We’ll look at each of the options below so you can determine which one is right for you. Which one you file will depend on the type of organization and your size (annual revenue). There are four versions of Form 990 that may apply to most nonprofit organizations. So if your fiscal year ended on December 31, your Form 990 is due on May 5. That’s four and a half months from the end of your fiscal year. Regardless of the version, your Form 990 is due on the 5th day of the 5th month following the end of the fiscal year. You must file Form 990 for every year your nonprofit organization is operating. If you don’t file for 3 consecutive years, you’ll automatically lose your tax-exempt status. Potential donors, existing donors, and watchdog agencies can see where your money comes from, how you’re spending it, and even how much you pay yourself or your executive team.īut, most importantly, you need to file Form 990 because it’s the law. It’s a tool for ensuring transparency, disclosure, and accountability to the public.įorm 990 is a public document available to anyone with a simple online search. And Form 990 is the IRS’s way to ensure that your organization follows through on that commitment. When you received your tax-exempt status as a 501(c)(3) organization, you committed to serving a specific purpose. In fact, as a nonprofit organization, the expectations for transparency and accountability are higher than those for for-profit businesses. Your tax-exempt status has benefits, but it doesn’t exempt you from oversight. That’s right, your nonprofit needs to file an IRS return. Every tax exempt nonprofit must file IRS Form 990 (Return of Organization Exempt from Income Tax) every year.