Ask the Expert
October 2, 2012 5:00 pm
- Over $200 billion is donated to charity annually.
- The Nonprofit sector contributes 5% of the US GDP.
- The Nonprofit sector employs almost 10% of the population.
I just heard that the IRS is going to start requiring even very small nonprofits to file 990s. Is this true?
Yes, and no.
Although still exempt from filing the 990 or 990-EZ, organizations whose annual gross receipts are usually $25,000 or less will be required to file the new 990-N, or “e-postcard”, starting in 2008. The change, which is a result of the Pension Protection Act of 2006, is designed to provide the IRS with current, up-to-date contact and staffing information for these smaller nonprofits.
For more information, check out the IRS web briefing on the 990-N.