Discover the different 990 forms for nonprofits and simplify your tax reporting with our concise guide. Find the right form for your organization's needs and stay compliant effortlessly.
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The IRS doesn’t make it easy.
Wrapping your head around the different types of 990 forms that nonprofits have to submit each year is important, but can easily become confusing.
But don’t worry, we’ve done the work to outline all the different types of form 990s so that you know exactly which one applies to you.
If you’re tired of being confused by the confusing acronyms surrounding 990s, let’s dive in!
The IRS created different Form 990s for nonprofits to tailor them to meet the distinct needs of different types and sizes of nonprofit organizations.
Officially known as the "Return of Organization Exempt from Income Tax," is a crucial document that provides detailed information about a nonprofit's finances, governance, programs, and compliance with tax-exempt regulations. It is used by the IRS, as well as the general public, to assess the transparency, accountability, and financial health of nonprofit organizations.
Note: All nonprofit organizations are required to file some variant of Form 990 on an annual basis—it's not optional. The specific type of Form 990 to be filed, however, can vary depending on the size and specifics of the organization's activities.
Let's delve deeper into the various types of Form 990s.
Understanding these variations is key to choosing the appropriate form for your organization's specific circumstances.
Below are the main variants of the Form 990:
Let's explore the nuanced differences between Form 990, 990-EZ, and 990-N.
The Form 990 is used by larger public charities with gross receipts greater than $200,000 or total assets greater than $500,000.
The Form 990-EZ caters to smaller organizations with gross receipts of less than $200,000 and total assets of less than $500,000.
It's a simplified version of Form 990 for smaller organizations. They can choose to use Form 990-EZ, but they can also opt to use the full Form 990.
The Form 990-N, also known as the e-Postcard, is a trimmed-down and simpler submission intended for very small nonprofits with gross receipts of $50,000 or less.
The reason the IRS has different variants of the Form 990 is to suit nonprofits of different sizes and complexities. The smaller the nonprofit, the simpler the form, making the process more manageable for organizations with limited resources.
There are three other types of 990 forms that you may come across. These are 990 forms that funders, like foundations, need to submit. As well, nonprofits that generate income of different sorts have a specific 990 form to file with the IRS.
All private foundations are required to submit Form 990-PF, regardless of their income size. This form provides a detailed account of the foundation's assets, financial activities, trustees and officers, grants awarded, and charitable activities.
The Form 990-PF serves an essential role for private foundations, offering transparency into their financial activities and charitable contributions. This form is comprehensive, presenting a granular analysis of the foundation's assets, income, expenses, and distributions.
Here's what is included in Form 990-PF:
The Form 990-T is filed by organizations that have unrelated business income. A Form 990-T is filed in addition to the standard Form 990.
If a nonprofit organization generates income from business activities that are not substantially related to its tax-exempt purpose, it must file Form 990-T.
This income could come from advertising, rental income, or other commercial activities that are not substantially related to the organization's tax-exempt purpose. Organizations with $1,000 or more of gross income from unrelated business activities must file Form 990-T and pay estimated tax.
This form helps the IRS ensure that tax-exempt organizations are not unfairly competing with for-profit businesses.
The Form 990-BL is very unique. It’s filed by black lung benefit trusts. Black lung benefit trusts provide medical care and cash benefits to coal miners affected by black lung disease. These trusts are required to file Form 990-BL to report their financial information. Black lung disease, also known as pneumoconiosis, is a serious and often deadly respiratory disease caused by the inhalation of coal dust.
To address the health and financial needs of coal miners suffering from black lung disease, the federal government established a program to provide medical and cash benefits to eligible miners and their dependents.
Why Is It Crucial To Understand The Different 990 Forms?
The complexity of the 990 Forms reflects the size and intricacies of the nonprofit. Regardless of your size, filing the form requires careful preparation to ensure accuracy and compliance.
Understanding the nuances of Form 990 is vital for any nonprofit to ensure they are meeting their reporting responsibilities to the IRS and providing the necessary transparency to the public.
Note: If you’re a nonprofit pursuing funding from grants, whether through private, or foundation funders, 990s offer valuable insights. Learning how to access and read their 990s Forms will reveal if they’re worth pursuing. Check out our guide if you’re actively looking for ways to be more competitive for grants.
The 990 forms include Form 990, Form 990-EZ, Form 990-N, Form 990-PF, and Form 990-T. Each is designed for different types of organizations or purposes, depending on their financial activities and requirements.
Form 990 is typically filed by tax-exempt organizations, non-profits, and charities with gross receipts of $200,000 or more, or total assets of $500,000 or more.
Form 990-N, also known as the e-Postcard, is for small tax-exempt organizations with gross receipts of $50,000 or less, to confirm their status with the IRS.
Filing Form 990 ensures transparency by providing the public and stakeholders with financial information about a non-profit's operations, helping to maintain accountability.
Failure to file a Form 990 for three consecutive years results in the automatic revocation of the organization's tax-exempt status by the IRS.
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