Which Form 990 should my non-profit be filing?

IRS compliance can be confusing for a non-profit. Failing to file, or filing the incorrect form can have serious consequences. This, of course, begs the question, which IRS Form 990 should my non-profit be filing: a 990-N, 990-EZ, 990, 990-PF, or a 990-T?  If your non-profit is wondering what Form to file, here are some things to consider:

• What were your gross revenues for the year?
• What are your total assets at the end of the year?

Should I be filing a Form 990-N? 

A non-profit with revenues that are normally under $50,000 can file a Form 990-N.  This is the simplest form to file.  This “postcard” can be filed on a secure site via the IRS website.  This filing keeps your non-profit in good standing with the IRS, however it does not give donors any information on your program accomplishments, financial status, etc. thus this form might not assist your non-profit in getting a grant.

Should I be filing a Form 990-EZ? 

A non-profit can file a Form 990-EZ if your gross receipts are under $200,000 and your assets are less than $500,000.  Unlike the name, the 990-EZ is not all that easy.  If you are a Minnesota charity, you will still need to complete the full MN Attorney General report with financial statement information, including the functional expenses since they are not broken out as they are on a Form 990.  The Form 990-EZ also requires several other schedules that the Form 990 requires, thus giving the Form 990 a full thumbs up over the Form 990-EZ.

Should I be filing a Form 990? 

A non-profit that does not qualify with any of the above criteria, must file a Form 990.  The Form 990 is the most informational 990.  This Form is open to public inspection and therefore gives donors the information that they might be looking for in order to give your organization a contribution.  Page 1 of the Form contains a brief-but complete summary of the information completed on the Form.  It states who you are, why you exist as a non-profit, and lists your financial statement information for the year.  A donor might only review this page of your 990 when deciding whether to give your organization a contribution .  The 990 also allows each non-profit the opportunity to report what they accomplished during the year.  This is the place to brag about your organization and let everyone know what great things you did this year or what you plan to accomplish.

Should I be filing a Form 990-PF? 

This is a Form for a Private Foundation and therefore, if you are a private foundation, the above scenarios do not apply and your organization will be required to file 990-PF.

Should I be filing a Form 990-T? 

A 990-T is required when your organization has unrelated business income (UBIT).  Even though your organization is considered tax exempt, if you have UBIT you might be required to file a 990-T and pay tax on net revenue over $1,000.

Regardless of the Form that you choose/or are required to complete, the Form is due four and a half months after your year-end. The IRS allows an extension for up to an additional six months.  If your organization fails to file its annual return as required for three consecutive years, it will automatically lose its tax-exempt status.  So, don’t be afraid of deciding which Form to file.  If unsure, follow the guidelines above and you will ensure that your organization will be in compliance with the IRS.  Our team can provide expert guidance as well.

For additional considerations, please reach out to Assurance Solutions Team Associate Director T.J. Sheldon or contact the Assurance Solutions Team at Mahoney.