One common misconception nonprofit owners have is that after tax exemption, you never have to file returns for your organization again.
Nonprofits still have to make annual tax filings, even if they are exempt from paying taxes.
Yes, there is a tax day for your nonprofit - May 15th! These annual filings are the IRS's ways of keeping tabs on your organization and makes sure the money coming in is being used for a charitable purpose.
There are different ways your organization can file a tax return, and they are all derivatives of the same form - Form 990.
If you're an organization that takes in more than $50,000 a year, you would have to file a full form 990.
If you take in less than that, you may be allowed to file a truncated Form 990-ez or even the online postcard form 990-N.
Additionally, if your firm receives revenue from non-charitable sources - for example, you charge parking to a fundraising dinner - then any profit there would be taxable.
Our firm will advise you on which of these best suit your firms. Please contact us today if you have any questions regarding tax returns for your organization!