Form 990 for Nonprofit Organizations Due May 15th

Today is the deadline for nonprofit organizations to file their Form 990 with the IRS for the year 2007. If a church or charity needs additional time to file, they can use Form 8868 to request a 3-month extension, which will be automatically granted by the IRS once the form is submitted.

Some nonprofits might be eligible to file a shorter return, a 990-EZ. To qualify for this shorter form, the nonprofit would need to have under $100,000 in gross receipts and less than $250,000 in total assets as of the end of the year. Even smaller nonprofits may not have to file either the 990 or 990-EZ if their gross receipts are normally less than $25,000 annually. Such organizations are eligible to file an electronic postcard, called 990-N, which will suffice to meet their filing obligations.

One of the advantages to file these information returns, is the return data shows up in publicly searchable databases, such as the one found at Guidestar.org. Information from the returns such as how the organization used its funding, and its own description of the programs and services offered are searchable by grantmakers and donors. This means a well written 990 has potential to attract the attention of donors searching for specific types of nonprofits.

Additional resources:

• Resources for Filing IRS Form 990 (About.com)
• Tax Information for Charities & Other Non-Profits (IRS.gov)
• Financial Concerns for Nonprofits (About.com)