Nonprofit Federal Tax Compliance Guide
Understanding key federal tax requirements is crucial for maintaining your organization's tax-exempt status. This guide covers essential areas for 501(c)(3) public charities.
Annual Filing Requirements (Form 990 Series)
Most tax-exempt organizations must file an annual information return with the IRS. The specific form depends on the organization's gross receipts and total assets:
- Gross Receipts normally $50,000 or less: File Form 990-N, Electronic Postcard.
- Gross Receipts less than $200,000 AND Total Assets less than $500,000: File Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
- Gross Receipts $200,000 or more OR Total Assets $500,000 or more: File Form 990, Return of Organization Exempt From Income Tax.
- Private Foundations: File Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation. (This guide focuses on public charities, not private foundations).
The standard filing deadline is the 15th day of the 5th month after your organization's accounting period ends. Extensions are available.
Maintaining Tax-Exempt Status
Ongoing compliance is required to keep your 501(c)(3) status. Key aspects include:
- Operating primarily for exempt purposes (charitable, educational, etc.).
- Ensuring no private benefit or inurement occurs.
- Limiting lobbying activities (no substantial part of activities).
- Absolutely no participation in political campaign activities for or against candidates.
- Maintaining proper corporate records (minutes, bylaws, etc.).
Unrelated Business Income Tax (UBIT)
Tax-exempt organizations may be subject to tax on income from a trade or business regularly carried on that is not substantially related to their exempt purpose. This income is reported on Form 990-T.
- Review your activities to identify any potential unrelated business income.
- Keep separate records for unrelated business activities.
Employment Taxes
If your organization has employees, you are generally responsible for withholding and paying federal income tax, social security tax, and Medicare tax, and filing related forms (e.g., Form 941, W-2, W-3).
- Properly classify workers as employees or independent contractors.
- Comply with all federal employment tax withholding and reporting rules.
Recordkeeping
Maintain detailed records supporting income, expenses, assets, liabilities, and compliance activities. This includes documentation for contributions received.
Disclaimer: This guide provides simplified, general information about US federal tax compliance for 501(c)(3) public charities. It is not exhaustive and does not cover all rules, exceptions, or state-level requirements. Consult the IRS website, official form instructions, and a qualified tax professional for complete and accurate information and advice specific to your organization. This tool is for educational purposes only.
My Compliance Tracker
Enter your organization's details to estimate your federal filing requirement and track key compliance review steps. This is NOT official tax filing or advice.
Enter details above and click "Estimate Filing & Update Tracker".
Disclaimer: This tracker provides an estimate of your federal Form 990 series filing requirement based on your inputs and general thresholds for public charities. It does **NOT** cover all filing situations (e.g., private foundations, specific exceptions) or state requirements. The standard filing deadline is calculated but does not include extensions. This is not tax advice or official IRS filing. Consult a qualified tax professional.