Whether your organization has a budget in the millions or in the thousands, you are required to submit an annual 990 form to the IRS. Please note – nonprofits with annual revenue of less than $25,000 are now also required to file. This requirement has changed in order to help our government better understand how many 501(c)3 organizations exist.
Beware – this is the first year (2010) the IRS will automatically revoke the tax-exempt status of organizations that have failed for three consecutive years to file the required Form 990 with the IRS. These forms must be filed by May 15th, otherwise your organization may have to submit its application for tax-exemption with the IRS all over again.
The Urban Institute’s National Center for Charitable Statistics has developed a simple tool to find out if you need to file. Here’s how in 3 easy steps:
(2) Select the name of your state and then enter your nonprofit’s name. If there is an alert “FILE NOW” by your nonprofit’s name,
(3) File a 990 or your nonprofit’s tax-exempt status will be revoked on May 16th.
Filing by May 15th will prevent your organization from having to pay $750 and submit an application for tax-exemption with the IRS all over again!
Smaller organizations can fill out the IRS Form 990-N, known as the ePostcard (http://www.irs.gov/charities/article/0,,id=169250,00.html). The ePostcard is easy to complete, and only takes a few minutes to answer eight simple questions. Larger nonprofits simply need to file their tax returns.
For more information about filing annual returns, please visit http://www.irs.gov/pub/irs-tege/filingrequirementsfactsheet_012010.pdf
Submitted by Kari Sederburg, director of public policy for Michigan Nonprofit Association.