990s FAQ

If you’re a non-profit your Annual 990 form due date is right around the corner (yikes!) and the Mockingbird Team and I want to make sure that you’re ready! So we’ve put together a handy guide for getting your 990s done and out the door so you focus on other things. 

Taxes guide for nonprofits

For those of you who I haven’t had the pleasure of meeting, let me introduce myself. I’m Caroline, the founder of Verdi Advising -- a financial coaching company for feminists. I work with non-profit founders and team members to help them gain the skills, confidence and clarity they need to handle their money well -- whether that means we’re focusing entirely on the organization’s finances, their personal finances or a combination of both. 

What do I need to do again?: A 990 FAQ 

Is this article for me? Do you have a 501(c)3 tax designation? If you do, keep reading! If you don’t, but are in the process and want to learn more, keep reading! If you don’t, and never plan on it then you’re off the hook and can go out and save the world without IRS oversight. 

Which 990 should I use? There are three kinds of 990s. Pick the one that you’ll need to prep for: 

  • Are your gross receipts less than or equal to $50,000? Use the 990-N!

  • Are your gross receipts between $50,001 - 199,999? Are your total assets less than $500,000? Use the 990-EZ!

  • Are your gross receipts over $200,000 or your assets over $500,000? Use the 990.  

When is the due date? May 15 if your taxable year is January 1 - December 31. If you have a different taxable year, then your due date is the 15th day of the 5th month after your taxable year ends (i.e. if your taxable year ends on June 30, then your 990 is due November 15).

What if you’ve applied for 501(c)3 status, but have not received your letter? Tough cookies, friend. You still need to file a 990, but at least it should be the 990-EZ or the 990-N which are easier. 

What about 501(c)4s or 527s? You need to file a 990 too! 


2020 990 Checklist

What you’ll need to prepare ahead of time is dependent on the type of 990 you need to file. I highly recommend checking out the IRS page on 990s to get more familiar. 

Regardless of the size of your organization, you will need to have the following: 

  • EIN, legal name and address

  • Name & address of your officer

  • Website

  • Confirmation of gross receipts

If you are filing the 990-EZ you’ll also need: 

  • Accounting method

  • Details on revenue, expenses, changes in net assets & fund balances

  • Balance sheet data 

  • Program accomplishments & grant info

  • Officer info

If you are filing the full 990 you’ll need everything on the 990-EZ, plus a whole lot more. I highly recommend hiring a CPA who can help you file if you’re filing the full form (or if you’re filing the EZ or N, but want extra help!). Start by familiarizing yourself with the IRS instructions form. There is a LOT of information in that document, so don’t set yourself up for failure. Calendar in 30 minute chunks of time each week over a several week period to make sure you’ve had a chance to read everything and ask your CPA any questions you may have with plenty of time before the deadline. 

Feel disorganized or overwhelmed and want to make sure you don’t feel this way anymore? Reach out to me at caroline@verdiadvising.com  or book a time for a free 20 minute consult call here. 

Nonprofit Budget, Nonprofit TaxesJessica PayneTaxes, 990Comment