Introduction to Nonprofit Form 990
The Form 990 is an annual information return that most tax-exempt organizations, including nonprofits, must file with the Internal Revenue Service (IRS). The purpose of the form is to provide the public with financial information about the organization, as well as its governance, compliance, and activities.
The Form 990 is used to assess an organization's tax-exempt status and ensure compliance with IRS regulations. It requires disclosure of financial information, including income, expenses, assets, and liabilities, as well as information about the organization's governance, management, and compliance practices.
Who Must File Form 990
Most tax-exempt organizations, including 501(c)(3) charities, must file the Form 990 annually. This includes organizations with annual gross receipts of $200,000 or more, or total assets of $500,000 or more. However, some organizations, such as churches and certain government entities, are exempt from filing.
Organizations with annual gross receipts of $50,000 or less may file the Form 990-N, also known as the e-Postcard, which is a simplified version of the Form 990. Organizations with annual gross receipts between $50,000 and $200,000 may file the Form 990-EZ, which is a shorter version of the Form 990.
Form 990 Filing Requirements
The Form 990 must be filed by the 15th day of the 5th month after the close of the organization's tax year. For example, if an organization's tax year ends on December 31, the Form 990 must be filed by May 15 of the following year.
The Form 990 must be signed by an authorized officer of the organization, and it must include a statement indicating that the organization has complied with all applicable laws and regulations. The form must also include a copy of the organization's financial statements, including a balance sheet and a statement of activities.
Consequences of Not Filing Form 990
Failure to file the Form 990 can result in significant penalties, including fines and even revocation of an organization's tax-exempt status. The IRS may also impose penalties on officers and directors of the organization who fail to ensure compliance with filing requirements.
In addition to financial penalties, failure to file the Form 990 can also damage an organization's reputation and credibility. The public relies on the Form 990 to assess an organization's financial health and governance practices, and failure to disclose this information can lead to a loss of public trust.
Public Disclosure of Form 990
The Form 990 is a public document, and it must be made available to the public upon request. Organizations must also make the form available on their website, and they must provide a copy of the form to anyone who requests it.
The public disclosure of the Form 990 is an important aspect of nonprofit transparency and accountability. It allows donors, stakeholders, and the general public to assess an organization's financial health and governance practices, and it helps to build trust and confidence in the nonprofit sector.
Frequently Asked Questions
What is the purpose of the Form 990?
The Form 990 is an annual information return that provides the public with financial information about a nonprofit organization, as well as its governance, compliance, and activities.
Who is required to file the Form 990?
Most tax-exempt organizations, including 501(c)(3) charities, must file the Form 990 annually, with some exceptions for churches and government entities.
What is the deadline for filing the Form 990?
The Form 990 must be filed by the 15th day of the 5th month after the close of the organization's tax year.
What happens if an organization fails to file the Form 990?
Failure to file the Form 990 can result in significant penalties, including fines and revocation of an organization's tax-exempt status.
Is the Form 990 a public document?
Yes, the Form 990 is a public document, and it must be made available to the public upon request.
How can I obtain a copy of a nonprofit's Form 990?
You can obtain a copy of a nonprofit's Form 990 by requesting it from the organization directly, or by searching online databases such as GuideStar or the IRS website.