Do nonprofits file an annual tax return?

In the United States, most nonprofit organizations must file an annual report with the IRS called a 990. This form provides information on an organization's mission, programs, and finances. The lawful and public reporting of such financial activities is essential to a nonprofit keeping its tax-exempt status as well as keeping with a commitment to transparency. Depending on your organization’s annual income, the form 990 used will vary.

Start-up and smaller nonprofits with annual income normally less than $50,000 can fulfill this filing obligation by submitting a Form 990-N (e-Postcard) online. Get started or learn more about filing a 990-N here. Organizations that regularly earn more than $50,000 will need to file a 990, 990-EZ, or 990-PF.

Key stakeholders (including volunteers, donors, grant makers, and those who benefit from a nonprofit's services) will want to see that a nonprofit is being a trustworthy and good steward of donor dollars. 990s are documents available for public viewing on the IRS website as well as reputable nonprofit databases like Guidestar.org.

Guidestar has put together a helpful 990 FAQ. Review this resource below and reach out to us at NOPI with any questions you may have. 

References

GRF CPAs & Advisors. (2018, August). IRS Revises Schedule B Requirements for Some Nonprofits | GRF CPAs & Advisors. GRF CPAs & Advisors. https://www.grfcpa.com/resource/irs-revises-schedule-b-requirements-for-some-nonprofits/

https://www.facebook.com/gregmcray. (2020, January 13). What is Form 990-EZ and Who Qualifies for it? - Foundation Group, Inc. Foundation Group®. https://www.501c3.org/what-is-form-990-ez/

Internal Revenue Service. (2014). Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard) | Internal Revenue Service. Irs.Gov. https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard

Withum Smith+Brown, PC. (2020, April 11). IRS Extends Form 990 Series Tax Filing Date to July 15. Withum. https://www.withum.com/resources/irs-extends-form-990-series-tax-filing-date-to-july-15/#:~:text=Under%20the%20Notice%2C%20calendar%20year,file%20to%20November%2015%2C%202020.