How To Prepare For The IRS Form 990 May 15 Deadline

Tuesday, May 15th is the deadline for tax-exempt organizations operating on a typical calendar tax year to file Form 990. The key to stress-free filing is learning how to prepare for the IRS Form 990 deadline.

What is Form 990?

IRS Form 990 is the annual financial and informational return filed by all tax-exempt nonprofit and charitable organizations. Before we get into the information you are required to file let’s review the 990 Form Series. Your organization's type and financial situation will decide which nonprofit tax return Form 990 you will file.

There are four types of 990 Forms in the Form 990 Series. Select and e-file the appropriate nonprofit tax return Form 990 based on the following requirements:

Form 990-N (e-Postcard) - For organizations reporting gross receipts less than $50,000

Form 990-EZ (Short Form) - For organizations reporting gross receipts less than $200,000 and total assets less than $500,000

Form 990 (Long Form) - For organizations reporting gross receipts equal to or greater than $200,000 and total assets equal to or greater than $500,000

Form 990-PF - For organizations identifying as an exempt private foundation, taxable private foundation, or a nonexempt charitable trust treated as a private foundation. 

How To Prepare For The IRS Form 990 May 15 Deadline

Gather & Organize Necessary Documents

Before filing your organization’s 990 Form, take the time to gather all your required information. If you are not organized, you will find yourself wasting countless hours searching for financial information; which is never fun.

Depending on the Form 990 you are required to file, you may have to report various details such as revenue and expense amounts, program services, a list of employees, financial statements, governance and more.

Know What Information You Need

Well since we’re on the topic of required information let’s go ahead to get to it. Here’s what you will need when you file your 990 Form with ExpressTaxExempt:

Information Needed To File Form 990-N
Employer Identification Number  Legal Name Fiscal year period	Principal Officer Current Address Gross Receipts under $50,000

Information Needed To File Form 990/990-EZ/990-PF
EIN Legal Name Fiscal year period Current Address Contact number Exemption type List of Officers and Key Employees Prior year return Contributions for the past 5 years Other Revenue details Expenses  Investment Income details Numbers of Employees, Contractors & Volunteers	Organization’s Mission Accomplishments for the year (Grants Paid, Projects finished etc.) Donor Advised Fund Information Endowment Funds Information Assets (Art, Historical treasures etc.) Policies Details of Activities  (Political, lobbying, foreign transactions etc.) Related organizations

File Like a Pro with ExpressTaxExempt

Now that you know how to prepare your IRS Form 990 you can easily file your IRS Form 990. At ExpressTaxExempt we support your organization by providing a simplified, interview style filing process, automatic schedules and worksheets, retransmit rejected returns for free, support prior year filing and more!

Success starts with ExpressTaxExempt, so take the first step in maintaining your nonprofit’s tax compliance by signing in or creating your free ExpressTaxExempt account today.

File IRS Form 990 Online

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Tax Exempt Organizations and Nonprofits: Are They The Same Thing?

Nonprofit vs. Tax Exempt | They’re the same thing, right? Or are they different? Hmm...

Often times the terms “nonprofit” and “tax exempt” are used interchangeably in conversation. While tax exempt status is conferred and determined by the IRS.
Many organizations are both nonprofit and tax exempt, there is an important distinction between the two. For example, nonprofit status is designated by the state while

Here’s a more detailed explanation on nonprofits and tax exempt organizations:

What is required for an organization to be considered a nonprofit?

According to the IRS, nonprofit status is a state law concept; meaning that an organization must apply for and receive nonprofit recognition from the state in which it does business. 

Once an organization has become a nonprofit it receives benefits, determined by its state, which includes exemption from property taxes, state and local income taxes, franchise taxes, and sales taxes for that state specifically. 

Misconception of Nonprofit Organizations

One of the main misconceptions of nonprofit organizations is that these groups are NOT allowed to make any profits throughout their calendar year. In all actuality, nonprofits usually have to turn a regular profit in order to function and operate effectively. Things such as facility upkeep and equipment purchases or repairs, require additional funds that go far beyond their annual expenses. 

As a nonprofit organization, these groups are allowed to receive funds, but any surplus of profit cannot be distributed to an organization’s members, employees, officers, or shareholders, and must be used within the organization to further the mission and goals of the nonprofit. 

How does an organization receive Tax Exempt Status?

An organization who has been granted tax exempt status must have received this recognition from the federal government. Being tax exempt essentially boils down to these two things:

1) The organization does NOT have to pay corporate income taxes on any money generated from the organization 

2) Those who donate money to the [tax exempt] organization can use a tax deduction for their donations when filing their taxes. 

Although most believe that many nonprofits automatically have a tax exempt status, they must apply for tax exempt status separately. The requirements for acquiring tax exempt status can be found in Section 501(c)(3) of the Internal Revenue Code. Generally, the main requirement to have tax exempt status is that the organization must be organized and operated specifically for charitable, religious, educational, cultural, scientific or humanitarian purposes. 

What does it mean to be tax exempt?

Sounds like a self-explanatory question right? Unfortunately, most misconceive the tax exempt reality. Organizations that are tax exempt technically aren’t completely exempt from tax. 

Although exempt organizations are not required to pay federal income tax, they are still subject to state and local taxes unless there’s a nonprofit designation which exempts them from those payments. 

Additionally, most exempt groups have to pay the employer’s share of their workers’ Medicare & Social Security taxes along with federal unemployment taxes. 

Maintaining Your Tax Exempt Status

As a nonprofit organization, it is crucial that you maintain your tax-exempt status with the IRS. ExpressTaxExempt, the #1 IRS-authorized tax e-filing solution for tax-exempt organizations, allows you to do just that. Providing security, ease, and peace of mind to organizations and its leaders, we respect the services that nonprofit organizations give to communities and are motivated to help with e-filing so you can get back to proudly making a difference in your community. With newly reduced rates, organizations can now save funds annually when e-filing Form 990 Series (Form 990, 990-EZ, 990-PF, 990-N, and Form 1120-POL). Pay us a visit at www.expresstaxexempt.com today and begin your e-filing process. 

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Filing for the Wrong Tax Year: What Should You Do Next?

If you ever want to see someone raise their eyebrow or look stunned when checking their mailbox, let them receive a letter from the IRS. Although millions of letters and notices are mailed to taxpayers each year, there is still that worry and concern that immediately comes over you when you first see that sealed envelope from the IRS with your name on it. Fortunately, all letters from the IRS are not negative and many may be very easy to resolve.

Organizations that file a 990 Series or 1120-POL tax form must file each year by the due date that correlates with the selected form. If not, the IRS will contact you by mail, informing you that you have missed your filing deadline. When receiving letters like this, the first thing you need to do is BREATHE! There’s no need to panic. Read the letter thoroughly and follow the instructions that the IRS has listed in the correspondence. Any notice sent from the IRS usually covers a specific issue about your tax return or account, so be sure to handle that issue as soon as possible.

From various conversations with many of our awesome ExpressTaxExempt customers, we have noticed that we receive quite a bit of calls yearly inquiring about a letter received from the IRS stating that their organization did not file for a previous tax year ending on a specific date. For example, you may receive a letter stating that “XYZ Organization failed to file its 990-N return for the tax year ending on June 30, 2016…” Initially, the solution to this dilemma would be to e-file online within minutes at www.expresstaxexempt.com; but what tax year should you technically be filing for?

A “tax year” is an annual accounting period for keeping records and reporting income and expenses. There are two types of tax years that you can follow, those being a Calendar Year (12 consecutive months beginning January 1 and ending December 31) or a Fiscal Year (12 consecutive months ending the last day of any month except December).

So if you receive a letter that’s referring to a tax year ending in 2016, that means you need to submit a return for the 2015 tax year (which ended in 2016).

EXAMPLE: Tax Year of June 1, 2016 to July 31, 2017 | File for 2016 Tax Year

      Tax Year of February 1, 2015 to January 31, 2016 | File for 2015 Tax Year

        Tax Year of March 1, 2014 to February 28, 2015 | File for 2014 Tax Year

As expected, it is very important for Form 990, 990-EZ or 990-N users to file the appropriate returns yearly. Although there is no penalty assessment for Filing Form 990-N late, all organizations that fail to file the required 990, 990-EZ, or 990-N forms for three consecutive years will automatically be revoked and lose their tax-exempt status, which can be detrimental to the long-term success of an organization. Avoid finding yourself in this predicament by quickly, safely, and easily e-filing your form with ExpressTaxExempt. Our newly reduced filing rates will help your organization save funds as well. So feel free to contact us via phone at 704.839.2321 on Monday through Friday from 9 a.m. to 6 p.m. EST or reach out to us 24/7 via email at support@ExpressTaxExempt.com if you have any questions about the e-filing process.

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Can Form 990 Be a Marketing Tool?

If you’re running a nonprofit organization, you might be dreading the next few weeks. Why?

Well, because it’s that time of year when you have to file your Form 990 return!

Instead of letting your heart fill with dread, instead ask yourself if you can use Form 990 to your advantage. Instead of seeing it as just another tax form, look at it like an opportunity where you can tell your story and draw in more donors.

That’s right, with a little planning, you can use Form 990 as a marketing tool.

Post Form 990 Online

By sharing your tax return with your donors and the general public, you show that you are transparent.

You also present the facts about how your organization has helped. Nothing is better than cold hard data!

Your Form Tells a Story

Instead of using a generic summary, your organization can impress audiences with their story!

With thoughtfully written descriptions of your organization, their goals, and their accomplishments, you’ll be able to cast your own light on your organization.

Just make sure you’re truthful and accurate! Schedule O also allows for additional details, and you can always list the organization’s website.

Make It Look Good

It’s not only important for your story to shine, you also need to make sure your answers and numbers are good.

For an accurately completed Form 990, you need to avoid unrelated revenues, lobbying, loans and business transactions with insiders, and untruthful answers (for example, the questions in Part V).

As far as errors go, ExpressTaxExempt checks your return for filing errors before transmitting to the IRS.

Pass the Test

Every tax exempt organization must demonstrate that it continues to meet the requirements set under section 501(c)(3). In Schedule A, organizations have to classify as a Public Charity or a Private Foundation.

If they’re a public charity, they need to pass one of 2 tests.

The first test states that your organization receives substantial support in contributions from publicly supported organizations, governmental units, or from the general public.

The second test states that your organization receives no more than one-third of its support from gross investment income, and more than one-third from contributions, membership fees, and gross receipts from exempt-related activities.

So when you’re ready to file Form 990, you’re going to want to save time on the difficulties of paperwork so you can get your story across.

Start by e-filing Form 990 with ExpressTaxExempt, the premier filing solution for tax exempt organizations. With bulk uploading, multi-user access, and help available by email and phone, we’ll help you get through the tough stuff.

Can your organization’s Form 990 become a marketing tool?

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Not Ready for Form 990? Here’s What You Do

Alright, exempt and nonprofit organizations — it’s that time of year!

We’re only a few weeks away from the deadline to file your tax exempt information return as a 501(c)(3) organization!

That’s right, your deadline is May 16th! Not ready yet? Here’s what you need to do.

E-file with ExpressTaxExempt

The most important thing you can do is to take a deep breath! While the idea of taxes can be daunting to many, you don’t have to suffer through it this year.

Why is that? Well, because you’re e-filing with ExpressTaxExempt.

With ExpressTaxExempt, you are not only e-filing with the premier tax exempt filing service out there, you’re saving time that can be dedicated to whatever cause you champion.

Plus, we make e-filing your taxes as easy as turning on a computer, logging into the website, and answering the interview style prompts.

File Form 8868 for More Time

Still not ready? Don’t freak out! Just e-file Form 8868 and receive an automatic 3-month extension of time to file your tax exempt tax returns.

If you need more time to file your Form 990 returns, just know that the deadline is also the same, May 16th!

And just in case you need more time after the first 3 months, you can e-file for another 3 months after that. These will be non-automatic, though, so there needs to be a legitimate reason.

Ready for Form 990? Here's What You Do Instead!

Alright, for the few of you out there who have already finished e-filing (or you run on a fiscal year different than the calendar year), what should you do?

Maybe it’s time to plan and implement a fundraiser. PTA groups can start now to coincide with the end of the school year!

With all the free time, you can start an email, social media, or video marketing plan.

And if you have all your bases covered, maybe you can plan a personal vacation! The possibilities are endless.

So sign up for ExpressTaxExempt today and start your 990 return now! I mean, that way you have all your bases covered come May 16th.

If you have any questions, our team of e-filing experts can help! Give us a call at 704.839.2321 or an email at Support@ExpressTaxExempt.com.

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Why Do People Volunteer? Here Are 6 Reasons

Why do people volunteer?

That’s a big question. There are plenty of reasons why, honestly.

As a volunteer, you may identify with these yourself.

As an exempt organization, once you understand your volunteers’ motivations, you can tap into these reasons to better your recruitment!

So what are the reasons people volunteer? Here are just a few!

Personal Tie to the Cause

Basically, if a cause is important to someone, they might volunteer.

Maybe they are a cancer survivor, or are related to one. Maybe they grew up impoverished and want to help kids with disadvantages succeed in school.

Regardless, they want to help. And with this personal tie comes a passion you can’t fake.

For Resume Building

Whether you’re an entry level college grad or a seasoned worker, volunteering helps that resume.

These volunteers may seem dedicated for the “wrong reason” to some, but in the volunteer business you want to accept any helping hand.

And resume building is a legitimate act that leads many to help!

For Leadership

Beyond resume building is leadership training. While this may be a team building exercise, it might also be an entrepreneur looking to use their leadership skill set to do good.

Not only that, some people will learn valuable leadership skills FROM volunteering.

And if you want to talk the talk, you need to walk the walk. And helping a nonprofit in any way is definitely walking the walk.

To Meet People

Sure, it might sound like a strange method for making new friends, but you are likely to find people with similar interests as you if you pick a cause you care about.

And you might be meeting a future collaborator, or your next best friend. Either way, all the more reason to volunteer!

It Feels Good "Doing Good"

Sometimes, it just feels good to do good. And there’s nothing wrong with that.

One of your volunteers might get involved with your exempt organization because they want to feel good. And you should let them know they’re doing good!

Sometimes, the Doing Good crowd will be involved in the smaller gestures, like donating canned food or pledging a dollar as an add-on. But even with small gestures, the do good crowd helps out!

And while some out there cringe at the idea of helping just because you’re “doing good,” it is really the key concept to philanthropy. So we’re not gonna knock it.

Increase Your Self Awareness

And finally, when you put yourself in the role of volunteer, you are able to see things the average person doesn’t. And you increase your self awareness and your understanding of the world.

That has to be reason enough to volunteer, if you ask us.

After you bring in new recruits and key donations, make use of our bulk uploading and multi-user accounts at ExpressTaxExempt. And if you have any questions building up to the May 15th deadline, reach us by phone at 704.839.2321 or by email at Support@ExpressTaxExempt.com.

What motivates your volunteers?

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Welcome to Volunteer Appreciation Month

Did you know that about 62.6 million people volunteered through or for an organization at least once between September 2014 and September 2015?

Did you also know that April is Volunteer Appreciation Month?

Good job, volunteers! Keep up the good work. And good job to our dedicated nonprofit and exempt organizations who reach out and organize their volunteers!

While volunteering differs depending on the organization, we offer our appreciation to all of you out there who have taken your time and money to better our world!

How Can You as an Exempt Organization Show Your Appreciation?

Well, communicate with your volunteer base! Send out an email or a social media message that conveys your appreciation.

If you’re already following our guide to email marketing, this should be easy for you.

Reach out to a Local Company as a Partner

Let’s be honest, there are many benefits for businesses when it comes to volunteering. They can market their products and services through events and increase their appeal to the community by helping out.

For Volunteer Month, team up with a local company that could offer your volunteer base some cool perks. This could range from free swag to discounts, depending on what the local business does.

Everyone Loves a Good Meal

It turns out collecting, preparing, distributing, and serving food were the activities volunteers performed the most in 2015. Around 11 percent of volunteers reported this as their main activity, with teaching, fundraising, and general labor following, respectively.

Show your volunteers you appreciate their efforts by throwing them an appreciation banquet, cookout, or even a pizza party!

On top of everything, these events are the perfect opportunity to reconnect with and learn more about your volunteers.

What Makes Volunteers Tick?

Appreciative emails and cookouts aside, April gives you the perfect chance to learn more about your volunteer base.

How? By surveying your base, you can find out why they volunteer, what works as a call to action, and how you can make the process easier for them.

Some people would rather donate canned goods or funds, and some would rather use their time doing hands-on activities to better the organization. Do you know which volunteers are which? This is the time for you to find out!

Of course, we would like to extend our appreciation to both volunteers and nonprofits out there! Without your dedication and philanthropy, the world would be a darker place.

Don’t forget, if you’re an exempt organization running on a calendar year, you have a deadline for your tax return on May 15th. Whether you’re e-filing Form 990-N or the 990 long, we’re here to answer any questions you may come across. Just reach out to us at 704.839.2321 or Support@ExpressTaxExempt.com.

How are you going to appreciate your volunteers this month? Let us know in the comments, or on Facebook and Twitter!

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How Can You Take Donations to the Next Level?

Let’s face it, fundraising isn’t easy. Simply getting your audience to the donate can be a struggle for many nonprofit and tax exempt organizations.

So how can you optimize your approach to fundraising? Well, come up with a plan to take your donations to the next level!

You Need Online Donations

First up, you need to start accepting donations online. Even if you feel better with the old school methods, you need to consider online donations. Why? Because the whole world is mobile—and the easier it is, the more people are eager to give. And nothing is easier than using your phone or laptop to donate.

So make sure you have a website, and use social media, email, and video production to bring your donors to your website! It all works together, really.

Communication for Donations

After you have your page designed, implement your email marketing strategy to direct donors to your site. We’ve told you about email before, and stand by those marketing basics.

Mixed together with social media, you’ll be able to direct increased traffic towards and hopefully donations to your site.

But don’t abandon all of your traditional methods—a direct mail campaign that advertises your web presence is a good mix of traditional and cutting edge. It’s best to use both to reach your audience!

Advanced Tip: Landing Pages

Your website might be awesome, but if you utilize a landing page, you can customize the experience even more for your donors. So what should you do? Customize a single page with a short donation form and passionate copy with a call to action. REMEMBER—Minimalism is best, so avoid heavy graphics, web videos, or any other distractions.

Let’s face it, some things will work and some won’t. Instead of doubling down on one strategy, you should implement A/B testing to make sure that your fundraising efforts aren’t wasted!

Test your landing page by creating two pages that are near identical, but with different calls to action. Monitor which CTA produces better conversion rates, and then you know that is the right direction. Take the foundations of the more successful page, and then create another page expanding that idea. Keep testing and watch your conversion rates increase!

Once you have your donations coming in, head over to ExpressTaxExempt and create a free account. While Form 990 might not be due for a few more months, it’s never too early to work on your recordkeeping, e-file last year’s 990, or even just keep track of donors.

If you have any questions, our dedicated customer support team is here and ready to help, by phone at 704.839.2321 and by email at Support@ExpressTaxExempt.com. We look forward to hearing from you!

What are your advanced marketing tips?

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Want Volunteers? Reach out to Students

So you’re sending out killer emails, drawing in both donations and traffic to your social media channels. Things are looking up for your growing nonprofit—but what if you need more volunteers to achieve your mission? Sure, you can use these same methods to call people to action, but there is another approach you can consider.

Looking for a new volunteer pool to dip into? Have you considered the student population?

Students are Natural Helpers

Why students? First, understand why you can consider the local student population a great volunteer resource. Educational facilities like colleges, high schools, middle schools, and elementary schools typically have good reasons to promote volunteerism.

For younger students, expect a structured volunteer system set up by teachers and parents. As students reach high school and college, they are sometimes promoted to volunteer on their own time and in student run organizations.

Understanding Student Volunteers

Why would a student want to volunteer? Yes, most people volunteer to help. For a student, they might have a grade attached to their drive. Don't’ let that dissuade you, though, because help is help! Apart from academics, sometimes participating in Greek Life requires students to volunteer, so find your local university and see how fraternities and sororities can help. For an academic approach, contact professors and instructors who can work assignments into volunteering.

When you’re dealing with student volunteers, we suggest implementing that social media campaign we talked about. Since students have a heavy social media presence, tap into that with your own customized hashtag. Hey, you might even inspire your next batch of volunteers that way!

Make Volunteering Fun

And whatever you do, make sure you keep your volunteer events fun and lively! If you’re on a campus, give out free stuff and mimic a festival atmosphere if possible. You can give out things like t-shirts, Frisbees, water bottles, or anything that you can support your cause with.

Don’t forget, any event you plan, you will want to capture with video. Still don’t have a video plan? Check and see if the school you’re working with has any budding videographers willing to volunteer their services! Grab some interviews with students from before they volunteered, during their events, and afterward and you will have some killer promotional material!

So start Googling your local colleges, and look for their student outreach programs! After you raise all those funds, be sure to e-file your tax exempt returns with ExpressTaxExempt! We offer Form 990 long, Form 990-N (e-Postcard), and Form 990-EZ. We even offer tax extension Form 8868, for nonprofits that need some more time!

Questions? Contact our dedicated support team in Rock Hill, SC by phone at 704.839.2321, live chat on our website, and by email at support@expresstaxexempt.com.

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Happy Thanksgiving from ExpressTaxExempt

This Thanksgiving season we, at ExpressTaxExempt, are very grateful for each and every one of our users. Whether this was your very first year using our services, or if you are a loyal client, we are very appreciative of you choosing to do business with us, and we would like to say “Thank You.” As always, ExpressTaxExempt strives to be synonymous with everything concerning exempt organization filings, and with your continued support, there’s no doubt that we will further exceed all our expectations.

With ExpressTaxExempt, we offer support for the following tax-exempt forms:

• Form 990 (Long) - For exempt organizations with gross receipts greater than $200,000 and total assets greater than $500,000.
• Form 990-EZ - For exempt organizations with gross receipts greater than $50,000, but less than $200,000 and total assets less than $500,000.
• Form 990-N (e-Postcard) - For exempt organizations with gross receipts less than $50,000.
• Extension Form 8868 - Part I (Automatic 3-Month Extension) Part II (Additional, Non-Automatic 3-Month Extension)

For nonprofits or charities that are still looking to become tax-exempt, we will soon be offering support for Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. With this all-inclusive, new support, you can fully complete a section 501(c)(3) application and download it directly from your account to mail to the IRS. You won’t find this service anywhere else online except for ExpressTaxExempt.

ExpressTaxExempt makes e-filing tax returns for exempt organizations easy, quick, and efficient with the following features:

• Interview-Style Format - Complete forms by answering a series of simple-worded questions. 
• Cloud Computing - Start, stop, and then continue from where you left off. Information entered remains in your account and accessed whenever you log in.
• Built-In Audit Check - Perform an automatic error check based on the information entered for any mistakes that could cause a rejection.
• Worry-Free Security - Encrypted site, McAfee secure certified, and protected by SSL (Secure Sockets Layer).
• Mobility - Mobile apps for e-filing Form 990-N (e-Postcard) & Extension Form 8868.
• Email Notification - You receive notifications when forms have been transmitted, accepted, or rejected, and notifications when it’s time to e-file again.

As you spend the holiday this week with family and friends, we’ll be doing the same. Our office will be open on Wednesday, November 25, during our normal business hours of 9 a.m. to 6 p.m., EST; our support team can be reached at (704) 839-2321. We will be closed on Thanksgiving Day and only offer email support (support@expresstaxexempt.com) on Friday, November 27; normal business operations will resume on Monday, November 30.

We wish you all a safe and happy Thanksgiving, and thank you for choosing ExpressTaxExempt for your exempt organization e-filings.

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Tax-Exempt Qualifications

We all may have ideas about an organization, a company, or even a nonprofit. And while you may have a rock-solid business plan, proper funding, and an amazing cause, that doesn’t necessarily mean your corporation will qualify for tax-exempt status.

Under the Code Section 501, the most common exemption is Section 501(c)(3). For your corporation to be eligible for tax-exempt status, your activities must be limited to legitimate tax-exempt purposes. These purposes can be considered as:

• Literary
• Scientific
• Religious
• Charitable
• Educational
• Public safety testing
• Promotion of the arts
• Prevention of cruelty to children or animals
• The supporting of national or international competitive sports for amateurs

With each of these tax-exempt purposes, there follows a core of legal meaning that explains what each category means. Based on the regulation of the Treasury, for instance, the word “charitable” can be defined as the:

• Growth of religion
• Advancement of social welfare
• Growth of education and science
• Reduction of governmental burden
• Aid of the poor, distressed, or underprivileged
• Construction or preservation of public buildings, monuments, or works

Each purpose is specifically explained as such; so if you have a new or original idea for your corporation, it’s best to double-check and make sure it can be categorized under at least one of the tax-exempt purposes.

Another qualification for tax-exempt status is that your organization must assist an adequately large and broad charitable class. As the saying goes, “charity ends where certainty begins,” which is why fundraising for a specific person, a tech company, or even donating all of your profits to a Section 501(c)(3) organization, doesn’t qualify your organization for tax-exempt status.

One more quick rule when qualifying for tax-exempt status is that it’s not about the proceeds, but what activities your organization is doing, and if those activities can be classified under any of the tax-exempt purposes.

For more information about gaining exemption status, check out the following blogs:

Non-Profit vs. Tax-Exempt Organizations

Becoming a Nonprofit or Tax-Exempt Organization

Once your organization becomes tax-exempt, you can preserve your status by e-filing your yearly, required tax returns with Express990. We support service for Form 990, Form 990-EZ, Form 990-N (e-Postcard), and Extension Form 8868. Failure to file for three consecutive years will result in the loss of your exemption status. We work closely with the IRS to provide you a safe and secure e-filing experience that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9 a.m. to 6 p.m., Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

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Completed 990 Forms

It comes as no surprise that with something as important as a federal tax return, you’re going to want a copy for your own personal records. Or you may need a physical copy for other purposes like sending it to your principal officer, having a lawyer or tax professional review it, or whatever other reason you can think of. One of the most pragmatic features of Express990 is that you can print or email your completed 990 form.

What you need to remember is that you only have access to your completed tax form after you successfully transmit your form to the IRS. Every once and a while we, at Express990, receive feedback or questions about viewing the completed form before sending. We consider each concern valid, and we understand why you would want to view before transmitting. 

We compensate with our built-in audit check, which reviews your return for any errors way before you transmit to the IRS. And, if for some reason your error-free return is still rejected, you can make changes and re-transmit for no extra charge.

To access your completed 990 form, you simply just login to your account at www.expresstaxexempt.com.

Form 990-N (e-Postcard)

If you transmitted a Form 990-N (e-Postcard), your completed form can be found on the right side of your Dashboard screen listed as “Draft Letter.” Place your mouse on the envelope icon and a drop-menu will appear that will allow you to either “View,” “Download,” or “Email” your completed form.

Keep in mind that a completed Form 990-N (e-Postcard) isn’t going to look like a typical tax form. This is because the 990-N was originally created to be filed exclusively online; there really isn’t an official, physical paper form for an e-Postcard.

Form 990-EZ

If you transmitted either a Form 990-EZ or a Form 990, you can find your completed form in the same area of your Dashboard screen; it’ll be listed with the same name of the tax form you filed. You may notice subtle differences within your completed form like run-off text for example. This is normal with e-filing and won’t affect your return.

Form 990

If you notice any other discrepancies with your completed form, you can contact our support team, and we’ll manually make any changes needed and email you a corrected PDF file. Our expert, live professionals are available Monday through Friday from 9 a.m. to 6 p.m. EST at (704) 839-2321. You can also email us at support@expresstaxexempt.com, or chat with us at www.expresstaxexempt.com.

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Multiple Organizations / One Account

Filing taxes for yourself, or for your own organization, can be a daunting task. It can be even more tedious if you have more than one organization to file for, or if you’re a paid preparer and have clients that you are holding you responsible for successfully filing for them. Keeping up with the different sets of tax information is a job itself, but Express990 is here to help you get through the tax season - no matter how many exempt organizations you have to e-file for.

With Express990, you won’t have to create a separate account for each organization or nonprofit you file. Our service allows you to enter multiple organizations under the same account; therefore, you don’t have to fumble with numerous logins or passwords. You can add another organization to your account with the following steps:

Step 1: Log into your Express990 account.

Step 2: Click the “Add Organization” link on your Dashboard screen.

Step 3: Enter your organization’s details.

Step 4: Select the tax form you need to e-file.

You can also switch between your exempt organizations from your Dashboard screen by clicking the drop-down menu near the top left.

There isn’t a more simple way to keep all your organizations in one convenient place. And remember, with the Express990 cloud computing feature, any information regarding your organization details stays within our secured servers; you won’t have to re-enter the same information each year.

Stay organized with all your exempt organizations or nonprofits with Express990. We offer e-filing services for the Form 990-N (e-Postcard), Form 990-EZ, Form 990 (Long), and Extension Form 8868. You can even e-file your e-Postcard “on-the-go” by downloading our FREE Express990 App for iOS and Android tablets, or using our mobile site.


For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9am to 6pm, Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

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Never Too Late For 990-N

The year is winding down into its final quarter, and if you still haven’t e-filed your Form 990-N (e-Postcard), it’s not too late. Even if your original tax deadline was all the way back in May, you can still e-file. Even if you didn’t file last year, you can still e-file. Even if your organization didn’t bring in a single dime this tax year, guess what… you can still e-file.

Calendar Tax Year or Fiscal Tax Year
You may already know that filing your tax return has to be done by the 15th day of the 5th month after your organization’s tax year has ended. Your actual tax period end date may vary depending on whether your organization operates on a calendar tax year or a fiscal tax year.

Calendar Tax Year: Your tax year runs from January 1 to December 31, and your tax deadline will always be May 15.

Fiscal Tax Year: Your tax year runs on any day other than January 1 to December 31, and your tax deadline will be the 15th day of the 5th month after your tax end date.

Example: Your tax begin date is April 1, 2014, and the tax end date is March 31, 2015. Your tax deadline will be August 15, 2015.

Little or No Income
A lot of you have asked why you should even file if you have little or no revenue to report. That’s exactly what the 990-N (e-Postcard) is for. You’re basically letting the IRS know that your organization doesn’t have much money to report, at the very least, nothing over $50,000 to report.

However, a great deal can happen within the course of a year. Your exempt organization could grow substantially, or you could receive a lot more contributions. That’s why you have to file each year. If nothing much has changed, you can continue e-filing your 990-N (e-Postcard). If a drastic change has occurred, then you’ll file the most appropriate form for your organization.

You Can Still E-File
The reason why you can still e-file your Form 990-N (e-Postcard) long after your deadline has passed is simple… there are NO penalties for filing an e-Postcard late. Now that doesn’t give you a free pass to just be neglectful or careless, but if you find yourself a few months past due, you don’t have to panic or worry.

While there isn’t a penalty for e-filing late, there is a penalty for not filing at all. After failing to file for three consecutive years, you can lose your tax-exempt status. In order to get it back, you’ll be subjected to fees and a filing process with the IRS. For more information about reinstating your exempt status, check out the following blog: Reinstating Tax-Exempt Status

The year may be inching ever close to the end, but that doesn’t mean it’s too late to e-file. You can e-file your 990-N (e-Postcard) in less than 10 minutes with Express990. And it’s FREE for the current tax year. 

Simply enter your organization details, choose your tax period, indicate you make less than $50,000, authorize your form, and then transmit to the IRS. We even offer live assistance if you need a little extra help. So whether you’re on-time, a few weeks late, or a few months late, Express990 can transmit your tax form quickly and securely.

For any questions or assistance with our e-filing service, feel free to contact our live, expert help at our headquarters in Rock Hill, South Carolina.

Phone: (704) 839-2321 (Monday - Friday, 9am - 6pm, Eastern Standard Time)
Email: support@expresstaxexempt.com
Live Chat: www.expresstaxexempt.com

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Legal Audits pt.1

Legal audits usually serve as an overview of your organization’s non-financial compliance, governance, and risk management issues. Tax-exempt organizations generally consider having a legal audit when new management is in place and they want to start with a clean state, avoiding any costly mistakes. Typically, a standard legal audit will review the following key areas…

Corporate Status
By incorporating a nonprofit or tax-exempt organization, you protect your directors, officers, and members from personal liability. But, to enjoy the benefits of incorporating, your corporation must be in good standing. To review corporate status, you most likely need to provide

• Bylaws
• Corporate filings
• Articles of incorporation

These items are to support that your tax-exempt organization operates in a manner consistent with the law and governance.

Chapters and Affiliates
If your tax-exempt organization has chapters or affiliates, then your bylaws should be explicit about the authority to create chapters. There should also be some form of agreement like a charter or license in place that outlines the term of the relationship.

Governance Policies
Because of the IRS’ encouragement of certain policies, tax-exempt organizations and nonprofits are making their policies and procedures more formal. The Form 990 even references a variety of governance policies and requires your organization to reveal if they’re implemented.

It would be in your best interest to review these governance policies regularly. The audit will consider about four things:

• Which policies exist
• Whether policies are reasonable 
• If additional policies make sense for the organization 
• Whether policies are consistent with existing practice

Tax-Exempt Status
An audit for your tax-exempt organization will undoubtedly review your tax-exempt status. The prime consideration is to see if your organization is properly identified in regard to its tax-exemption and public charity status. The review will also consider if your organization’s activities remain within the scope of its ruling.

You’ll need to provide your

• Previous Form 990’s
• IRS Determination Letter
• Application for Recognition of Exemption

Any changes made to your governing documents or sources of support, programs, or purposes must be reported to the IRS when you file your next Form 990.

Other Federal Tax Matters
The review of your federal information and unrelated business income tax returns is important because forms of that nature, such as the Form 990, are publicly available. Legal analysis of your tax forms focuses on the accuracy of your information shown on your return. That information is considered along with other information from the legal audit and the overall presentation of your return.

We’ll take a short break here as to not to overload you with all this tax goodness. Honestly though, it’s a good bit of dense information to grasp an understanding of; however, this blog helps to clarify a few things. In the next blog, we’ll conclude with the rest of the key areas involved in a legal audit.

Remain in compliance with the IRS and your own tax-exempt organization governance by e-filing your tax-exempt returns with Express990. Our service provides a mini-audit with the built-in error check that reviews your return for errors before you transmit to the IRS.

Expert help is available through step-by-step instructions and with live professionals at our office in Rock Hill, South Carolina. Contact us at (704) 839-2321, Monday through Friday from 9am to 6pm Eastern Standard Time; or, email us anytime, 24/7 at support@expresstaxexempt.com.

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Non-Profit vs. Tax-Exempt Organizations

In the realm of tax and legal jargon, there’s a phrase you probably heard as many times as we have here in the office, “Non-profits are tax-exempt organizations, but not all tax-exempt organizations are nonprofits.”

“Tuh-mey-toh, Tuh-mah-toh,” right? Both are so similar; yet, there are significant differences that justify their separate designation.

Non-Profits
Your organization being labeled as a non-profit or for-profit is a perception of state law. According to state law, a for-profit organization generates money specifically for its owners and investors. By having your organization recognized as a non-profit, you’re basically stating your organization has some other purpose other than creating revenue for owners and investors. But that purpose alone doesn’t necessarily qualify for an exemption from taxes.

Tax-Exempt Organizations
As mentioned before, labeling your organization as a non-profit doesn’t mean it’s automatically recognized as “tax-exempt.” Above all, you must apply to the IRS for a determination of a tax-exempt status. There are many types of organizations that are qualified for a number of tax exemptions; one would be like an exemption from tax on income that is received during the course of activities conducted in relation to your organization’s tax-exempt purpose.

A 501(c)(3) organization is your most common type.of tax-exempt organization. In order to qualify, you have to file a Form 1023, Application for Recognition of Exemption Under Section 501(c)(3), with the IRS. Your state may also require you to submit an application with them to qualify for exemption from state income tax and other state taxes.

For more information about non-profits and tax-exempt organizations, check out the following blog: Becoming a Non-profit or Tax-Exempt Organization

One thing you should remember is that both non-profits and tax-exempt organizations can make money. Just because you’re labeled as either “non-profit” or “tax-exempt” doesn’t mean that your organization can’t have any money left over at the end of the year. Any funds not needed to fulfill a current expense can be used to further your organization’s mission or be saved for future activities.

If your organization is tax-exempt, or a non-profit that’s recognized as “tax-exempt,” you can safely and securely e-file your tax-exempt return with Express990. We offer all three 990 forms for tax-exempt organizations. You can also download our FREE Express990 App for iOS and Android tablets, or use our mobile site to e-file a Form 990-N (e-Postcard).

For any questions or assistance with our e-filing services, feel free to contact our live, expert help at our headquarters in Rock Hill, South Carolina.

Phone: (704) 839-2321 (Monday - Friday, 9am - 6pm, Eastern Standard Time)
Email: support@expresstaxexempt.com
Live Chat: www.expresstaxexempt.com

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Becoming a Nonprofit or Tax-Exempt Organization

You provide a local service, and your service fulfills an existing need, it attracts support, and produces substantial results. You’ve thought about it and want to take your services to the next level. An inspiring route to give back to your community while serving others is to start a nonprofit or a tax-exempt organization. 

You need to understand that building and maintaining a nonprofit could potentially take years of effort and an even greater amount of determination. However, there are general steps you can take in your journey to become a nonprofit or a tax-exempt organization.

First Step: Educate Yourself

Do Some Research. You need to figure out if there are any other nonprofit organizations that are currently providing the same type of service in your community. It may prove harder to find support if you’re just copying existing services rather than improving or adding to them.

Be familiar with how a need isn’t being met within demographic or population data that shows a need for your services.

Is A Nonprofit the Correct Path? As a possible Public Charity, you must organize and operate exclusively for exempt purposes that are in place with section 501(c)(3) of the Internal Revenue Code.

Know and Consider the Alternatives. You may find that building a nonprofit a complicated way just to pursue your passion to serve your community. Developing and maintaining reliable income streams will most likely be your greatest challenge. Statistics show that less than half of new nonprofits make it over five years, and those who do make it, at least a third of them are in financial stress.

Don’t let that discourage you. Consider other possibilities that can still let you operate as a nonprofit with less effort and cost. With that, you can refocus on serving your community and developing experience and support.

Second Step: Build a Sturdy Foundation

Create a Mission Statement. Presenting your mission statement is a critical step. It tells your organization’s purpose, what types of people you serve, and how you serve them. Every move you make with your organization should be to support and progress your mission.

Draft a Business Plan. By having a business plan, you can efficiently describe, in detail, your organization’s intention for achieving its mission. A business plan can also be used to outline new projects or ventures.

Develop Your Board. Your board will perform a variety of roles and legal responsibilities. It will also change as your organization grows in order to carry out duties effectively. Your recruitment will be most important, but also systematic board development like orientation, training, evaluation, and the cultivation of board members are crucial to overall success.

Third Step: Incorporate Your Nonprofit

Reasons you should incorporate:

• Formal structure adds credibility to your programs and services
• Corporate structure limits the liability of your organization's officers and directors
• Documents, policies, and procedures associated with corporations are required by the IRS

Fourth Step: File for 501(c)(3) Tax-Exempt Status

Eventually, you’ll need to apply for tax-exempt status with the IRS. There is a registration fee that depends on your average annual gross receipts. The decision from the IRS could also take up to a year to receive based on the information from your application.

Fifth Step: Continuous Compliance

Register with Your State’s Agency. Your state agency manages charitable organizations and solicitations. If you plan to get contributions from other states, you would need to register again within those states. Registration requirements may vary from state to state.

File Your Required Federal Returns. To receive tax-exempt status, you should act like a tax-exempt organization from the day of your incorporation. That means filing a Form 990 even if you’re a start-up, even if you had a short tax year, even if you brought in no revenue at all. Forms break down like this:

• Form 990 (Long Form) - For tax-exempt organizations with gross receipts greater than or equal to $200,000 and total assets greater than or equal to $500,000.
• Form 990-EZ - For tax-exempt organizations with gross receipts less than $200,000 and total assets less than $500,000.
• Form 990-N (e-Postcard) - For tax-exempt organizations with gross receipts less than $50,000.

These returns are due on 15th day of the 5th month after your tax end date and, if you fail to file for three consecutive years, you’ll automatically lose your tax-exempt status.

Each guideline may vary with each state so it’s recommended that you consult with a tax professional for detailed assistance. Stay in compliance with the IRS by e-filing your tax-exempt return with Express990. We support all three 990 forms for tax-exempt organizations, and we offer a safe, secure, and accurate e-filing process that will save you time and money.

For any assistance with e-filing our available 990 forms, you can contact our live professionals by phone (704-839-2321, Monday through Friday from 9am to 6pm, Eastern Standard Time), by email (support@expresstaxexempt.com), or by live chat (www.expresstaxexempt.com).

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Lobby Party

“You gotta fight / for your right / to Lobbbbby!”

Well, not so much in this case. While your tax-exempt organization can participate in lobbying activities, but too much lobbying can lead to the risk of losing your tax-exempt status. Generally, no organization can qualify for tax-exempt status if a substantial part of its activity is pursuing to influence legislation aka lobbying.

Legislation
As defined by the IRS, legislation includes action by Congress, any state legislature, any local council, or similar governing body, in regard to acts, bills, resolutions, or similar items like legislative confirmation of appointive office, or by the public in referendum, ballot initiative, constitutional amendment, or similar procedure; however, it does not include actions by executive, judicial, or administrative bodies.

Your organization can be seen as attempting to influence legislation if you contact, or urge people to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if your organization advocates the adoption or rejection of legislation.

Principal Registration and Reporting
If you wish for your organization to lobby, you must register your organization as a “Principal” before engaging in any lobbying activities. As Principal, your organization must provide a name its “Designated Lobbyist” and any other lobbying on behalf of your organization.

The Secretary of State has to be notified if any change of information occurs within five business days of the change, and your organization must notify any person it lists as a lobbyist and have them register with the Secretary of State and provide reports. In addition, as a Principal, your organization will also provide annual reports renew its registration every two years - up until you want your organization to no longer lobby.

Types of Lobbyists

Designated Lobbyist Registration and Reporting
Each principal has to have a “Designated Lobbyist.” Their responsibility is to file the Lobbyist Registration and Lobbyist Quarterly Expenditure Reports along with the registration and Annual Expenditure Reports for the Principal.

An individual or a professional lobbying firm can act as a Designated Lobbyist. Whoever is appointed the title, they sign all reports for themselves as well as the represented Principal.

Lobbyist for Compensation
This is either an individual or firm compensated by the Principal and whose sole job responsibility is to lobby for the Principal. It’s also required by this lobbyist to file a Lobbyist Registration form and to file Lobbyist Quarterly Expenditure Reports with the Secretary of State.

Authorized Lobbyist
Any other lobbyist you have, other than the Designated Lobbyist or Lobbyist for Compensation, is considered as an Authorized Lobbyist. This lobbyist could be a paid staff member or a volunteer for the Principal and is seen as registered when listed on the Principal’s registration. This person reports expenditures only to the Designated Lobbyist.

Employees of Lobbyists
These people are lobbyists that are employed by either firms or other lobbyists and they are registered by whomever employed them. They do not file expenditure reports directly to the Secretary of State, but their reports are included in their employer’s Lobbyist Quarterly Expenditure Report.

Outside from general lobbying, tax-exempt organizations can participate in issues of public policy without it being considered as lobbying. For example, your organization can plan educational meetings, prepare and hand out educational materials, or simply just consider public policy issues in an educational manner.

As with any lobbying activity, large or small, it must be reported within your Form 990 or Form 990-EZ under Schedule C. Keep the party going by e-filing your Schedule C, along with the rest of your 990 form, with Express990. We offer a safe, secure, and accurate e-filing process, backed by expert professionals that will save you time and money.

For assistance with e-filing any of our available 990 forms, contact our live support by phone Monday through Friday from 9am to 6pm, Eastern Standard Time, at (704) 839-2321, by email at support@expresstaxexempt.com, or by live chat at the Express990 website

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Compliant or Not Compliant

Mirror mirror, on the wall, which is the most compliant tax-exempt organization of them all?

While many tax-exempt organizations can operate differently from one another, there are still basic guidelines of governance that you should implement within your organization. A recent study from the IRS shows that there are a number of governance guidelines that link directly to how tax compliant your organization is.

How the Study was Conducted
The IRS uses a check sheet to obtain data about governance practices and related internal functions of 501(c)(3) organizations. Basically, the check sheet asks about

• Mission statements
• Control of the organization
• Policies on conflicts of interest
• Policies on the proper use of assets
• The use of comparability data when determining compensation
• Whether your organization’s Form 990 was reviewed by the board or a designated committee 
• Any family or outside business relationships between board members, officers, trustees, or key employees

The check sheet and other examination materials for governance and tax-exempt organizations can be found HERE.

Study Results
Within the study, the IRS reportedly found relationships between some questions and compliance or noncompliance that were statistically valid. Based on the significant correlation between questions related to some governance practices and tax compliance, your organization is “more likely to be compliant” if you:

• Have written mission statements
• Use comparability data when making compensation decisions
• Have procedures in place for the proper use of charitable assets
• Have your Form 990 reviewed by the entire board of directors

Surprisingly, or not so much depending on how you see it, organizations deemed “less likely to be compliant” were those in which central control was place on just one person or a small, selective group of people. There were also responses that led to no correlation at all like

• Conflicts of interest
• Never or occasionally using comparability data
• Family or outside business relationships between board members, officers, trustees, or key employees

The study was based on tax-exempt charities that were already selected for examination and the IRS has stated that future studies would be done with random samples.

So, to be the “fairest,” or, in this case, the most compliant in the land, you now have idea as to where to start or what functions within your organization contribute to your tax compliance overall. At the very least, stay compliant with e-filing your tax-exempt return on time with Express990. We support all three 990 forms for tax-exempt organizations. If you’re constantly on the move, download our FREE Express990 App for iOS and Android tablets, or use our mobile site to e-file a Form 990-N (e-Postcard).

For assistance with e-filing your tax-exempt return, contact us at our headquarters located in the quaint town of Rock Hill, South Carolina. We’re available by phone Monday through Friday from 9am to 6pm EST at (704) 839-2321, by email at support@expresstaxexempt.com, and by live chat at www.expresstaxexempt.com.

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