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A Your organization may have to file any of the following:
Form 990 Return of Organization Exempt From Income Tax. An exempt organization having gross receipts in each tax year that normally are more than $25,000.
Form 990–T an exempt organization that has $1,000 or more gross income from an unrelated business must file
Employment Tax Returns Every organization exempt from federal income tax, which pays wages to employees, is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA).
State reporting requirements. Each state
has their own requirements. You may have to submit a corporate Income tax
return, Department of State corporation annual report, and annual charitable
solicitation registration. Your state may also have Employment, security and
state unemployment taxes.
Information provided to Donors A charitable organization must give a donor
a disclosure statement for a quid pro quo contribution over $75 and an Acknowledgement
of Charitable contribution over $250
Required Disclosures for Solicitation of nondeductible contributions, Sales of information or services that are available free from the government.
Send Conformed copies to the Key district director of any organizational changes such as changes in accounting period, amending articles of organization or its internal regulations (bylaws), adding or changing activities etc.
FASB -compliant nonprofit financial statements. Your organization may need to provide to your Grantors numerous compliant financial statements such as Project/Grant allocation, restricted and unrestricted funds, functional expenses report and Statement of Financial Position.
Q What are the due dates for the annual information returns?
A Form 990, 990–EZ, or 990–PF must be filed by the 15th day of the 5th month after the end of your organization's accounting period.
Employment Tax Returns are generally due quarterly. For more information, get a copy of Publication 15, Circular E, Employer's Tax Guide, which summarizes the responsibilities of an employer.
Q What if my application is still pending?
A If your organization has not received its exempt status by the above due date for filing an information return, you should still file Form 990 or 990–EZ . (Check the “application pending” block at the top of page 1 of the return.)
Q What organizations are exempt from filing the Form 990?
A An exempt organization
(other than a private foundation,) having gross receipts in each tax year
Those normally are not more than $25,000.
Generally, a church, an interchurch organization of local
units of a church, a convention or association of churches, or an integrated
auxiliary of a church. A school below college level affiliated with a church
or operated by a religious
Order, even though it is not an integrated auxiliary of a church. A mission
society sponsored by or affiliated
With one or more churches or church denominations, more than one half of the
activities of which society are conducted in, or directed at persons in, foreign
countries. An exclusively religious activity of any religious order.
(There are other organizations exempt please see Filing Requirements and Required
Disclosures Pub 557)
Q Does the organization have to give a receipt for contributions?
A Yes, for quid pro quo contributions over $75 and contributions over $250 the organization must give a written acknowledgement providing enough information to substantiate the amount of the contribution.
For more information, get IRS Publication 1771, Charitable Contributions –
Substantiation and Disclosure Requirements.
Note! A donor can deduct a charitable contribution of $250 or more only if
the donor has a written acknowledgement from the charitable organization.
Q What is a quid pro quo contribution?
A This is a payment a donor makes to a charity partly as a contribution and partly for goods or services.
Q What if we change our accounting period, or amend the articles of organization, by-laws or activities etc?
A You should send a conformed copy of these changes to the appropriate key District Director. (Also include a copy of your determination letter)
Q What is FASB -compliant nonprofit financial statements?
A The Financial Accounting standards board sets the accounting standards for various types of organizations, including nonprofits. Its standards are labeled by FASB (pronounced FAZbee) for example FASB 116 "Accounting for Contributions Received and Contributions made"
