What Nonprofits Need To Know About The IRS Form 990

Person filling out form990 online.

Nonprofit organizations are exempt from paying taxes; however, they still have to file form990with the IRS. This form ensures that nonprofits conduct business smoothly and consistently, focusing their entire revenue back into their main cause—legally.

The form needs to be made public, and allows people who believe in that cause to donate without hesitance. This means that it can be a means to strengthen public relations and increase public trust as well.

Here’s everything organizations need to know about form990.

What The Form Does

Form 990 is a means for the IRS and the public to evaluate the way in which nonprofits operate.

This form includes information regarding the organization’s mission, its programs, finances, and their methods of operation. The form also provides nonprofits with a chance to report everything that was accomplished in the previous year.

As of recent changes to the form, it also now includes additional information, for example, the disclosure of potential conflicts of interest, the decided compensation of its staff and board members and other details related to finances.

Which Nonprofits Have To File Form990?

There are many different types of nonprofits that have to file form990 form. These include all private foundations. The specific form for private organizations is Form 990-PF. Other organizations include tax-exempt organizations with assets worth of $500,000, or above, or gross receipts of $200,000.

In addition, organizations under sections 501(c) of the U.S tax code also have to file Form 990 annually.

When You Need To File Your 990

The requirement for filing your 990 is by the 15th day of the 5th month after your annual accounting period has begun. Even though many organizations delay submission, it is important to keep track of the deadlines, as it can negatively affect your organization.

Falling to submit a 990 form for three consecutive years can end up in an organization losing its tax-exempt status.

Even though most organizations can file their 990 themselves, however, sometimes, it’s best to get it done professionally to make the document more impactful and position your organization as a more trustworthy one.

If you need help regarding filing form990, contact our team at A2Z Filings or call their team at 561-212-1192 for help today! We help people set up a charity and nonprofit organizations by providing business plan writing and grant proposal writing services, among many others.