How Often Do You Really Need to File the 990-N? What Small Nonprofits Need to Know

Running a small nonprofit means constantly juggling a never-ending to-do list. Filing Form 990-N is one of the most important items on that list. But it’s not something you can check off your list and never think about again. 

So how often do nonprofits actually need to file Form 990-N? If you’re not sure, you’re not alone. Fortunately, the answer is simple. 

In this post, we’ll clear up the confusion so your nonprofit can stay compliant, protect its tax-exempt status, and build trust with donors. 

The short answer: every year

Let’s set the record straight right from the start. If your organization is eligible to file Form 990-N, you’re required to do so every year.

There are no exceptions. As long as your nonprofit is still active, you must file annually. 

What is Form 990-N? A quick refresher

Not every volunteer who helps run a small nonprofit is a tax expert. So let’s take a minute for a quick overview of what Form 990-N actually is.

Form 990-N, also known as the e-Postcard, is an informational tax return created specifically for small tax-exempt organizations with gross receipts of $50,000 or less. It’s the shortest (and easiest) version of the Form 990 series. 

Form 990-N is filed entirely online and only requires basic information about your organization, including information such as:

• Your nonprofit’s name
• EIN
• Mailing address
• Confirmation that your organization’s annual gross receipts fall below the $50,000 threshold

Filing Form 990-N is a straightforward compliance task for small nonprofits. But when you’re juggling all the other responsibilities of running a nonprofit, it can be easy to overlook. 

When is Form 990-N due?

We’re now clear that Form 990-N must be filed annually by eligible nonprofits. But what’s the exact filing deadline? 

It all depends on when your organization’s fiscal year ends.

The rule is that Form 990-N is due on the 15th day of the fifth month after the end of your nonprofit’s fiscal year. For example, if your fiscal year ends on December 31, your filing deadline is May 15. If your year closes on June 30, you must file Form 990-N by November 15.

You can find a handy chart of filing deadlines here. 

Of course, you don’t have to wait until the deadline rolls around. You can file Form 990-N as early as the day after your organization’s fiscal year ends. 

Is it ever OK to skip a year?

Some may assume there are situations where it’s OK to skip filing Form 990-N, like when an organization breaks even or has no revenue for the year. 

This assumption is false.

Here’s the reality: any active nonprofit that’s officially recognized as tax-exempt and eligible to file Form 990-N must do so every year. That includes nonprofits that have no revenue, no expenses, or no activity during the year. 

What happens if you don’t file every year?

Filing your 990-N annually is key to staying compliant. But what happens if you don’t?

There’s no immediate penalty for failing to file Form 990-N. But if your nonprofit fails to file for three consecutive years, the IRS will automatically revoke your tax-exempt status. This can make it harder to raise money and operate your organization. Reinstating your status takes time and effort, and most volunteers don’t have much to spare. 

Even before the three year mark, there are consequences. For one, Form 990 filings are public record, and donors and foundations often look for them when evaluating nonprofits. If someone researches your organization and can’t find consistent filings, it can raise concerns.

Inconsistent filings can also cause larger administrative headaches down the road. This is especially true for nonprofits that have frequent leadership changes.

How long does it take to file?

While anything involving taxes and the IRS can feel intimidating, filing Form 990-N is actually very simple and can usually be completed quickly.

Using an authorized e-file provider like 501c3 Center can make the process even easier. Just enter your EIN, make any necessary updates to your information, and submit your filing in minutes – no IRS account required.

To make the filing process as quick and stress-free as possible, it helps to keep your organization’s finances organized throughout the year. That way, you’ll know exactly where to find the information you need when it’s time to file. You’ll also be better prepared if your organization approaches the $50,000 gross receipts threshold. 

Filing your 990-N every year is non-negotiable 

Filing Form 990-N each year is key to keeping your small nonprofit compliant and in good standing. The process is simple, which makes it easy to overlook. But doing so can lead to serious consequences.

Set a reminder and treat it as a non-negotiable annual task. It’s well worth the effort. The few minutes it takes to file each year can save your organization time, stress, and risk down the road. 

Ready to file your 990-N the easy way with 501c3 Center? Find out more and file today.