The Basics of Form 990

Form 990 is more than just a tax form; it’s a vital tool for nonprofit transparency and credibility. Whether you’re a new board member or an experienced nonprofit leader, understanding the basics can help you avoid impactful mistakes and even showcase your organization’s impact. Below are answers to some of the most common questions we field from nonprofits.

What is Form 990?

Form 990 is the annual information return most tax-exempt organizations must file with the IRS. It discloses details about your mission, programs, governance, and finances. Because it’s public, Form 990 is often seen as the “face” of a nonprofit.

Why does Form 990 matter?

Form 990 isn’t just a compliance requirement. Donors, funders, and the public use it to evaluate your organization. A well-prepared return demonstrates transparency, builds trust, and can even highlight your impact as a marketing tool.

Who has to file Form 990 and who is exempt?

Most tax-exempt organizations are required to file, though some religious and government-affiliated groups are exempt. Which version you file depends on your financial activity. For example, smaller organizations may qualify for the shorter 990-EZ or the 990-N postcard.

Note that 509(a)(3) supporting organizations, Section 527 political organizations, and private foundations are not eligible to file the 990-N e-Postcard, regardless of their financial activities.

When is Form 990 due?

Your return is due on the 15th day of the 5th month after your fiscal year ends.

• If your year ends on December 31, your deadline is May 15.

• If your year ends on June 30, your deadline is November 15.

If the date falls on a weekend or holiday, the deadline moves to the next business day.

What happens if we file late…or not at all?

Penalties begin at $20 per day for late filing if your gross receipts are under about $1.2 million, capped at $12,000 (or 5% of gross receipts, whichever is less). If your organization’s receipts are above that threshold, a higher daily penalty (e.g. $120/day) may apply, with a cap around $60,000. If you fail to file a required 990 return or notice for three consecutive years, your tax-exempt status is automatically revoked.

Why do our financial statements look different than our Form 990?

It’s common to see differences between your Form 990 and your financial statements. Check out our blog on this topic for a deeper dive. 

How do we update our name, address, and/or year end change to the IRS?

Most changes need to be reported on your next annual return, but the details vary. Read our in-depth overview on reporting name, address, and year-end changes to the IRS here. 

Can Form 990 help with fundraising?

Yes. Because it’s public, Form 990 is one of the first places potential donors or partners may look for deeper insight on your organization. Use it as a storytelling tool: highlight your mission, share program accomplishments, and provide data that shows your community impact.

Final Thoughts

Form 990 may feel like a compliance task, but it is also an opportunity. With thoughtful preparation, your return can strengthen trust, attract support, and reflect the real value your nonprofit brings to the community.

For a deeper dive into requirements and preparation steps, download our comprehensive Form 990 FAQ Guide and Preparation Checklist. This resource provides detailed insights and tools to help your team file right the first time.

For organizations looking for additional support, our nonprofit tax advisors are here to help. We provide full Form 990 preparation services to ensure accuracy, compliance, and a return that communicates your mission with clarity. Reach out to learn more.