Do Nonprofits with No Revenue Have to File Form 990? What You Need to Know

If your nonprofit organization didn’t generate any revenue this year, you might think you’re off the hook when it comes to filing taxes. It’s easy to assume this is the case. But it’s not actually true.

In reality, most tax-exempt organizations are required to file annually. 

In this guide, we’ll take a deep dive into the filing requirements for nonprofits with no revenue, including which form to file and how to stay compliant. 

Does my nonprofit with no revenue need to file Form 990? 

This is a question that commonly trips up small nonprofits, so let’s set the record straight right from the start. 

Most tax-exempt organizationsarerequired to file a version of Form 990 each year, even if they didn’t generate any revenue. 

Tax-exempt organizations aren’t usually required to pay federal income tax. But they are required to submit an informational return to the IRS reporting on activity from the past year – even if they had no revenue. 

So if your nonprofit is officially recognized as tax-exempt and still active, you typically need to file Form 990 to stay in good standing with the IRS and protect your tax-exempt status. 

What does “no revenue” really mean for a nonprofit?

Nonprofits – even those with no revenue – must file a version of Form 990. But it’s important to understand how the IRS defines revenue. 

Generally speaking, revenue refers to a nonprofit’s gross receipts, not just profits or earned income. That could include things such as:

• Donations
• Grants
• Program service revenue
• Membership dues
• Interest or investment income

Consider a nonprofit that doesn’t run any programs or actively raise funds in a given year. If they bring in any money during the year, they don’t technically have “no revenue.” 

What if my nonprofit truly had no financial activity this year? 

The IRS requires tax-exempt organizations to file a 990 annually, even if they truly have no incoming funds or financial activity for the year.

Which form do I have to file if my nonprofit has no revenue? 

The answer depends on your organization’s size and financial activity. Let’s take a closer look. 

Form 990-N: The most common version for nonprofits with no revenue 

Most organizations with little to no revenue are eligible to file Form 990-N, also known as the e-Postcard. This form is specifically for tax-exempt organizations with gross receipts that are normally $50,000 or less, which includes many nonprofits with no revenue at all. 

It’s the simplest version of Form 990 and only requires basic information such as:

• Organization’s name and EIN
• Mailing address
• Website (if applicable) 
• Confirmation that your annual gross receipts are less than $50,000

Instances when Form 990-N doesn’t apply 

While Form 990-N is the most common tax form for nonprofits with no revenue, there are some circumstances when a nonprofit may be required to file a different version, such as Form 990-EZ or the full Form 990. 

Form 990-EZ 

This version is typically used by mid-sized tax-exempt organizations with annual gross receipts between $50,000 and $200,000. Nonprofits with no revenue for this year may be required to file Form 990-EZ if the organization has historically exceeded the $50,000 threshold or doesn’t meet the eligibility requirements for the e-Postcard. 

Form 990

The full Form 990 is the most detailed version and is used by larger nonprofits or those with more complex operations. It’s uncommon for organizations with no revenue to file the full Form 990. But it might be required in specific circumstances, such as when a nonprofit previously exceeded filing thresholds or has significant assets. 

Form 990 comparison: Which one does your nonprofit need to file?

Form	Who it’s for	Revenue threshold	Complexity	How it’s Filed
Form 990-N	Small nonprofits with little to no activity	Normally less than $50,000	Very simple	Electronically
Form 990-EZ	Mid-sized nonprofits	$50,000 to $200,000	Moderate	Electronically
Form 990	Larger or more complex nonprofits	More than $200,000	Detailed	Electronically

For a deeper dive into the differences between these common forms, check out this recent post.

Don’t guess which version of Form 990 to file

Filing the correct version of Form 990 is key to staying in good standing with the IRS. The information and chart above can help you determine which version is right for your organization’s circumstances.

But if you’re still not sure, don’t guess. Check out your organization’s past filings and current IRS thresholds or consult a tax professional to be sure. 

What happens if I don’t file Form 990?

While there’s typically no immediate financial penalty for smaller nonprofits that qualify to file Form 990-N, larger organizations may face late filing fees. Furthermore, any nonprofit (regardless of size) that fails to file for three consecutive years will automatically have its tax-exempt status revoked. This can make it harder to raise money and secure grants that enable your organization to deliver on its mission. 

Getting your tax-exempt status back after it’s been revoked isn’t as easy as flipping a switch. It takes time and effort, and most busy volunteers don’t have much to spare. 

While you won’t lose your tax-exempt status until you’ve failed to file for three consecutive years, there are other more immediate consequences to consider. 

For one, many donors are doing research before making contributions. Form 990 filings are public record and an important source of information for potential donors. If a potential donor searches for your Form 990 and doesn’t find consistent filings, it can raise red flags and decrease their likelihood of contributing.

Falling behind on tax filings can also cause administrative headaches down the road. This is especially true if your nonprofit has any leadership transitions.

At the end of the day, consistently filing your organization’s 990 can help you avoid bigger issues down the road. The good news is that for many non-profits, especially those that qualify to file Form 990-N, the process is fairly quick and straightforward.

File your organization’s 990-N the easy way

If your nonprofit didn’t generate any revenue, you may think you’re not required to file taxes. But that’s not the case.

Most tax-exempt organizations are required to file a version of Form 990 (typically Form 990-N) annually with the IRS. Staying compliant, even in years when you don’t bring in any money, helps protect your tax-exempt status, foster trust with donors, and avoid complications down the road.

Filing your organization’s 990-N doesn’t have to be stressful. 501c3 Center, an IRS authorized e-file provider, can help you complete and file your form in minutes. Find out more and file today.