What Tax Form Does a 501c3 File?

Nonprofit organizations with 501(c)(3) status must file annual tax forms to maintain IRS compliance. These filings provide transparency about financial activities and ensure organizations operate within their tax-exempt purpose. The form a nonprofit files depends on its size and structure.

Form 990

Form 990 is the primary tax document for larger tax-exempt organizations, offering a detailed overview of financial activities, governance, and compliance. Nonprofits with gross receipts of $200,000 or more or total assets of at least $500,000 must file this version. The IRS uses this information to verify compliance, while donors and the public rely on it for transparency.

The form requires disclosures on revenue, expenses, assets, and liabilities, along with executive compensation, fundraising, and grants. Nonprofits must describe their program accomplishments and explain how funds support their mission.

Governance-related questions assess board oversight, conflict-of-interest policies, and record-keeping. While the IRS does not dictate governance structures, weak oversight can raise audit risks. Public charities must also disclose relationships with related organizations and transactions with insiders, such as loans to officers or excessive compensation, which could result in penalties under intermediate sanctions rules (IRC Section 4958).

Form 990EZ

Smaller tax-exempt organizations that do not meet the full Form 990 thresholds may file Form 990EZ, a shorter version designed to reduce the reporting burden while maintaining transparency. This form is available to nonprofits with gross receipts under $200,000 and total assets below $500,000.

Form 990EZ simplifies financial reporting, focusing on broad income categories and major expenses. Organizations must still report program service accomplishments but with less detail.

Despite its shorter format, Form 990EZ requires disclosures on executive compensation, loans to officers, and transactions with insiders. Nonprofits must also report fundraising income and expenses. The form includes questions about compliance with public support tests, which determine whether an organization qualifies as a public charity rather than a private foundation.

Form 990N

For the smallest tax-exempt organizations, the IRS provides Form 990N, also known as the e-Postcard. This form is for nonprofits with gross receipts of $50,000 or less and ensures compliance with federal reporting requirements without lengthy disclosures.

Filing Form 990N is done online through the IRS’s electronic system. Organizations must provide their legal name, employer identification number (EIN), mailing address, website (if applicable), and confirm that their annual gross receipts remain below $50,000. Since no financial data or governance details are required, the form primarily serves to track active tax-exempt entities and prevent automatic revocation due to non-filing.

Form 990PF

Private foundations, unlike public charities, operate under stricter IRS regulations and must file Form 990PF annually to report financial activities, grants, and compliance with excise tax rules. This form applies to all private foundations, regardless of revenue or asset size.

A key feature of Form 990PF is its focus on foundation investments and grant distributions. Private foundations must distribute at least 5% of their average net investment assets annually for charitable purposes, as required by IRC Section 4942. Failure to meet this obligation results in a 30% excise tax on the undistributed amount. The form includes a schedule of grants, listing each recipient, the amount given, and the purpose of the grant.

Private foundations must report investment income separately from other revenue sources, as they are subject to a 1.39% net investment income tax under IRC Section 4940. The form also includes questions on potential violations of private foundation rules, such as excess business holdings (IRC Section 4943) and jeopardizing investments (IRC Section 4944), helping the IRS monitor compliance.

Filing Timelines

Meeting IRS deadlines is necessary for nonprofits to maintain tax-exempt status and avoid penalties. Forms 990, 990EZ, 990N, and 990PF are due on the 15th day of the 5th month after the end of the organization’s fiscal year. For nonprofits following a calendar year, this means a May 15 filing deadline. If the due date falls on a weekend or holiday, the deadline extends to the next business day.

Organizations needing more time can request a six-month extension by filing Form 8868 before the original due date. This extension applies to Forms 990, 990EZ, and 990PF, but not 990N, which has no extension option. Late filings can result in penalties of $20 per day for small organizations (gross receipts under $1,129,000) and $110 per day for larger ones, with maximum penalties reaching $56,000 per return. Private foundations face additional excise taxes if they fail to meet distribution requirements, making timely filing even more important.