Getting tax exempt status is only the start. To keep it, a nonprofit has to file the right returns on time, every year, with the IRS and with its state. Most of the trouble organizations run into comes from missed dates, not from complicated rules, and small organizations run by volunteers are the most likely to lose track.
This guide lays out the main federal and state obligations in calendar order, using a calendar year organization as the example. If your fiscal year is different, the dates shift, and we explain how. This is general information, not tax or legal advice, so confirm specifics with a professional.
In This Article
Three Numbers Worth Remembering
The Form 990 is due on the 15th day of the fifth month after the fiscal year ends. For a calendar year organization that is May 15. An extension of six months is available automatically by filing Form 8868 on time, which moves the deadline to November 15. And an organization that fails to file a required return for three years in a row automatically loses its federal tax exempt status.
The Federal Calendar, Month by Month
| When | What is due | Who it applies to |
|---|---|---|
| January 31 | Forms W-2 to employees, and Forms 1099 to contractors who meet the reporting threshold | Organizations with staff or paid contractors |
| January 31, April 30, July 31, October 31 | Quarterly payroll return, Form 941 | Organizations that withhold payroll taxes |
| May 15 | Form 990, 990-EZ, or 990-N, and Form 990-T if there is unrelated business income | Calendar year organizations, unless extended |
| May 15 | Form 8868 to request an automatic six month extension | Any organization that needs more time |
| November 15 | Extended deadline for the Form 990 series | Organizations that filed Form 8868 |
Two of these deserve a closer look. Form 990-T is the return for unrelated business income, meaning income from a regularly carried on business that is not related to the organization's exempt purpose. An organization generally has to file it when gross unrelated business income reaches $1,000 or more. And the version of Form 990 depends on size, which our guide to Form 990 breaks down.
If Your Fiscal Year Is Not the Calendar Year
Many nonprofits, including schools and organizations funded by government contracts, run on a July 1 to June 30 fiscal year. The Form 990 rule is the same, but the date moves: for a June 30 year end the return is due November 15, with an extension to May 15 of the following year. Count five months from your own year end, then go to the 15th.
State Obligations Vary Widely
Federal exemption does not cover everything. States have their own requirements, and they differ enough that a checklist for one state may not work in another. The common ones include:
- An annual report filed with the Secretary of State to keep the corporation in good standing.
- Charitable solicitation registration with the state Attorney General or a similar office, required by most states before you ask residents for donations.
- Sales and property tax exemptions, which often need a separate application or periodic renewal.
- Audit or financial review requirements, which some states impose once revenue passes a set threshold.
If you solicit donations online, remember that donors in other states may trigger registration requirements there too. This is one of the most overlooked areas for growing organizations, so check each state where you actively fundraise.
The Governance Calendar Inside the Organization
Compliance is not only about filing with agencies. A well run board keeps its own annual rhythm: an annual meeting to elect directors and officers, annual conflict of interest disclosures, approval of the budget before the year begins, and a review of the return before it is filed. Form 990 asks about several of these practices, and our guide to nonprofit boards covers them.
The Mistakes That Cost the Most
- Assuming a small organization does not need to file anything. Even the smallest exempt organizations generally must file the Form 990-N postcard.
- Missing the extension request. Form 8868 has to be filed by the original due date.
- Letting state registrations lapse while federal status stays active.
- Failing to keep records for donations, restricted gifts, and board decisions.
If an organization does lose its exempt status through missed filings, it can apply for reinstatement, but the process takes time and may involve back filings. Staying current is far easier.
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