Keep Your Nonprofit Compliant: Form 990 & Charitable Solicitation Registration

With the exception of churches, most other 501(c)3 nonprofits are required to file a Form 990 with the IRS to report their income and expenses for the previous fiscal year. Depending upon your ministry’s annual income, your organization may be required to submit one of the following forms:

• Form 990N (also known as the “postcard”) - less than $50K of income

• Form 990-EZ - less than $200K of income and less than $500K in total assets

• Form 990 - more than $200k of income and more than $500k in total assets

If your organization has been in business for less than a year, you should indicate that you are filing for a short year and list the formal incorporation date assigned on your Determination Letter as the first day of the fiscal year. The 990 is due on the 15th day of the 5th month after the close of your fiscal year (i.e. May 15 for a Jan-Dec fiscal year) with the option for an extension of 6 months (i.e. Nov 15 for a Jan-Dec fiscal year).

Extensions, which can be requested by filling out Form 8868, are typically granted and responses received quickly. There is no penalty or negative impact for filing for an extension. 

CHARITABLE REGISTRATION AND THE 990

If you are soliciting donations in a particular state, you may be required to register to legally solicit charitable donations for your organization.  The following states request charitable registration from organizations accepting donations via a website even if they are not actively soliciting in the state: AL, CO, FL, ND, RI, TN. Charitable registrations require an annual renewal. Your renewal is typically based on your fiscal year. Visit the IRS’s website to find out if your state requires annual charitable registration for donation solicitation.

Charitable solicitation registrations and renewals often require a copy of your Form 990. Therefore, if you request a 990 extension, you must also request an extension for charitable renewals in each state where you are registered. The following states have been notably strict about deadlines and procedures: CA, NJ, NY, PA, and VA.

If you are an Auxilio client, your team is already working with a CPA to request an extension and prepare the Form 990. If you have any questions, you can reach out to your Auxilio team.

Questions? Contact us at hello@auxilio.partners.