Nonprofits recognized as 501(c)(3) tax-exempt organizations by the IRS must meet several federal and state reporting requirements each year to maintain their status and operate in compliance with the law. These reporting obligations ensure transparency, accountability, and continued public trust.
Annual IRS Filing – Form 990
The cornerstone of nonprofit reporting is the annual Form 990 series, which provides the IRS with detailed information about the organization’s finances, governance, and operations. The specific version of the form depends on the organization’s annual gross receipts and total assets:
- Form 990-N (e-Postcard): For organizations with gross receipts of $50,000 or less
- Form 990-EZ: For organizations with gross receipts under $200,000 and assets under $500,000
- Form 990: For organizations with gross receipts or assets above the Form 990-EZ thresholds
All 501(c)(3)s (except churches and certain religious organizations) must file one of these forms annually, by the 15th day of the 5th month after the end of their fiscal year. Failure to file for three consecutive years results in automatic revocation of tax-exempt status.
Schedule A – Public Support Test
Along with Form 990, many organizations must file Schedule A, which calculates whether the nonprofit meets the public support test (also known as the 33⅓% rule). This determines whether the organization continues to qualify as a public charity rather than a private foundation.
State Filings
Most states have their own reporting requirements for nonprofits operating within their jurisdiction. These may include:
- Annual corporate filings (usually with the Secretary of State)
- Charitable solicitation registration or renewal (often with the Attorney General’s office)
- Annual financial reports or audits, depending on the organization’s size and revenue
Requirements vary widely, so it’s important to check with the appropriate state agencies.
Employment Reporting
If a nonprofit has employees, it must also comply with standard federal and state employment tax reporting, including Form W-2, Form 941, and any applicable state payroll filings.
Form 990 Requirements for 501(c)(3) are Vital
Understanding and meeting 501(c)(3) reporting requirements is essential for legal compliance and organizational credibility. Nonprofits that file accurately and on time not only protect their tax-exempt status but also demonstrate transparency and accountability to donors, regulators, and the public.
Reach out to our dedicated team at Dimov Tax for professional assistance with nonprofits. Our team provides expert support.