Happy New Year! 2020 was a bit of a dumpster fire, but hey, let’s see what 2021 has to offer. If you started a 501c3 nonprofit organization last year, there’s a few things you need to do in the new year.
Send Giving Statements by January 30
Unless your donors received a receipt (thank you letter) for each donation made to your organization in 2020, you need to send (email or snail mail) them a comprehensive statement that includes the date and amount of each donation. Be sure to include their total giving.
Include your organization’s name, address, logo, website, social media handles, and phone number in case they have any questions or would like to contact you.
Your donors will save this receipt and deduct the amount they gave to your organization from their federal and state taxable income.
File IRS Form 990
All 501c3 nonprofit organizations are required to file annual tax returns with the Internal Revenue Service. IRS Form 990 has three different versions. Depending on the total revenue your organization received, choose the most appropriate version:
- 990N e-postcard (less than $50,000 in donations)
- 990EZ (between $50,000 and $200,000 in donations)
- 990 (over $200,000 in donations)
File state tax return
Different states have different forms that need to be filed, but they have one thing in common: they want you to file something. Usually, annual state tax returns require pretty much the same information as IRS Form 990, so even though it’s yet another form to file, it can be complete pretty quickly.
If your organization is in California or Oregon, I recommend using my books Starting Your Nonprofit: California or Starting Your Nonprofit: Oregon as step by step guides to complete these forms, and the other forms, you’re required to file.
Have questions? Contact me. I’m happy to help.