What is the Form 990?
The 990 is not a tax return in the typical sense. Nonprofits that have earned tax-exempt status under Section 501(c)(3) generally do not pay federal income tax. But the IRS still requires an annual accounting of your finances, governance, and activities. That is the purpose of the 990.
The 990 is a public document. Anyone can look it up. Funders, donors, watchdog organizations, and journalists all use it to evaluate nonprofits. Getting it right matters.
Which version do you file?
There are three versions, and which one you file depends on your gross receipts and total assets.
- Form 990-N (e-Postcard): For organizations whose gross receipts are normally $50,000 or less. It is a short online form with basic information only.
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000. More detailed than the e-Postcard, but simpler than the full 990.
- Form 990: For organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more. The full return with all schedules.
Private foundations file Form 990-PF instead. Form 990 and 990-EZ must be filed electronically.
Some organizations choose to file the full 990 even when they qualify for the EZ. There can be good reasons for that, including donor expectations and the desire for greater transparency.
When is it due?
The 990 is due on the 15th day of the fifth month after your fiscal year ends. For organizations on a calendar year, that is May 15. You can request an automatic six-month extension, which extends the deadline to November 15.
What does the 990 ask about?
The full Form 990 covers a lot of ground. Key sections include your mission and program activities, revenue and expense details, balance sheet and fund balances, compensation for officers and key employees, governance policies, and descriptions of your largest programs.
Several schedules may also be required depending on your situation. Schedule A relates to your public charity status. Schedule B covers significant contributors. Schedule D details financial accounts and supplemental financial statements.
Details worth a second look
- Misclassifying expenses between program, management, and fundraising categories
- Leaving governance questions blank or answering inconsistently with actual board policies
- Reporting revenue and expenses inconsistently with your audited financial statements
- Missing required schedules
- Filing late or not at all. Three consecutive years of missing filings results in automatic loss of tax-exempt status.
The 990 as a communication tool
Your 990 is often the first thing a foundation or major donor looks at before making a grant or a gift. A well-prepared 990 that tells a clear story about your programs and impact is worth the care you put into it. Program narratives should be specific and meaningful, not generic filler.
Working with an accountant
Most organizations benefit from having their 990 prepared by an accountant who knows nonprofit accounting. The form is detailed, the rules around fund accounting and schedule requirements change, and an error or omission is visible to anyone who looks. It is worth doing carefully.
This guide shares general information, not tax, legal, or accounting advice for your specific situation. Rules change, so check current IRS and FASB guidance or ask me about your organization.