Hello nonprofit friends! It’s our favorite time of the year! Tax preparation time!
If you’re new to nonprofit organizations, here’s a quick tip: organizations are separated into 3 federal tax filing categories:
- under $50,000 in donations
- over $50,000 but under $200,000 donations
- $200,000+ in donations
If your organization brought in under $50,000 in donations, you can file the very simple IRS Form 990-N online. (I’m pretty sure the “N” stands for “No way, it’s that simple?!”)
If you’re a tad over $50,000, you need to file the longer, more detailed version, IRS Form 990-EZ. (I’m pretty sure the “EZ” stands for “Well, it’s EZ-ier than the full version?!”
But, if your organization’s gross receipts are over $200,000, you might take the cake since this form will be the easiest to complete. Well, “easy” in the sense that you’re very likely going to be hiring somebody else to do all the leg work for you. But you’ve earned it! So well done!
Either way, file by May 15, 2020 and stay in the good graces of the Internal Revenue Service. Happy filing!