The 501 S(c)ene

The latest view on not-for-profit accounting issues

Filing Form 990-N for New Nonprofits

Is your nonprofit organization in its first few years of existence?

Not sure of the Form 990-N filing thresholds?

Organizations that have gross receipts that are normally $50,000 or less are required to file a Form 990-N (e-Postcard). Now, you’re probably wondering, what does “normally” $50,000 or less mean. Per the Form 990-EZ instructions, Appendix B an organization may file a Form 990-N if it meets one of the following tests:

  1. The organization is up to a year old and has received in receipts or pledges $75,000 or less during its first tax year.
  2. The organization is between 1-3 years old and has averaged $60,000 or less in gross receipts during each of its first 2 tax years.
  3. The organization is 3 years or older and averaged $50,000 or less in gross receipts for the immediately preceding 3 tax years.

The Form 990-N is due every year by the 15th day of the 5th month after the organization’s tax year end and requires only basic information to complete.

By Kristin Cullen, CPA