What Reports Does My Nonprofit Need To File? 

 Happy New Year!

      I hope you're off to a great start, and that the vision of your organization is overflowing with excitement and incredible plans for the new year! While we're looking ahead to the future, we also need to check off a few things from the past. Since staying compliant with your reporting requirements is essential to guarding the operation of your nonprofit, let’s dive into what you need to wrap up from last year. Keep in mind that reporting requirements vary from state to state and even from one municipality to another, so you’ll definitely want to check with a local CPA.  Also, your federal reporting requirements will depend on your nonprofit’s IRS designation. So this is by no means an exhaustive list, but rather a starting point to help you get the ball rolling with some of the most common nonprofit reporting requirements. 

1099

     A 1099 is an informational tax return that is filed by your nonprofit with the IRS. They're due by January 31st, so it’s definitely time to be working on them now. If you’ve paid a contractor for services, you’ll definitely need to file 1099s, but 1099 reporting is actually a little bit more complicated than it sounds, so I’d recommend training on this before you get started. If you need 1099 training, there's some really good ones online (like this one here) for about $150. 1099 reporting can vary depending on the type of organization (sole proprietor vs a corporation, etc)  So, why are the 1099s necessary? Well, ultimately, the IRS is in the business of collecting tax money. When you file this informational return, it tells the IRS who may owe them tax money as a result of the income they've received from you.

W-2

     A W-2 is provided to each employee and they're also filed with the Social Security Administration and due by January 31st. This is a form that summarizes both annual wages paid to employees and tax amounts withheld.  Additional requirements for these forms may include items like retirement plan contributions, housing allowances for clergy, or childcare reimbursements- just to name a few,  but there are many other potential reporting categories so you’ll want to confirm your specific requirements with your state and local taxing authorities. 

941

     Related to the W2, our next requirement is the quarterly 941, which summarizes wages and taxes withheld. This must also be filed for the final quarter of the previous calendar year, which is also a good point at which to pause that 941 filing and make sure that you’ve included all non-cash compensation. So, if you’ve given benefits to your employees that are taxable but haven’t been included in their paycheck as a non-cash item, you’ll need to do that on the 941 and make sure it’s reported within the W-2.

990

     Next on the list is the 990, or possibly the 990-EZ short form, depending on income and number of years in operation. This is another informational return that the IRS requires from nonprofits, but in this case, the filing deadline is actually five months and fifteen days from your year-end. For example, if the year-end date on your IRS determination letter is December 31st, then your 990 filing deadline will be May 15th. If your determination letter has a different date, just add five months and 15 days to determine your 990 filing deadline. Keep in mind that some nonprofits may be exempt from filing a 990 at all. To find out if this applies to you, check your IRS determination letter.

State Filings

     Obviously, these will vary widely from state to state, so it’s crucial to check with a local CPA to ensure you’re operating correctly, but some typical state filing considerations may include

•   whether or not your state requires a charitable solicitation or fundraising report for anyone raising money in the state
•  Whether a state requires you to file for fundraising even if you don’t operate there (Be careful! This can get really complicated when fundraising campaigns go national or international.) 
•  Whether your state requires annual filing to confirm your exempt status
•  Whether  your state requires you to submit your annual financial reports or simply submit a corporate  renewal document each year

 Giving Statements

      Giving Statements are required by the IRS.  You can read more about the requirements for substantiating charitable gifts from donors in IRS Publication 1771 here. And once again, these are due January 31st of the year following the donations. So if the donation was received last year, you have until January 31st of this year to get it filed. Now, these are actually a fun reporting requirement because you’ll have the opportunity to enclose some additional communication with your donors that expresses appreciation, shares some of your wins, or casts vision for what's ahead and welcomes their continued support.  Giving statements position you to get back into that forward looking energy that I hope you started this new year with, so don’t miss the opportunity!  

      Do you have some odd or amusing filing requirements I may not have heard of? I want to learn more about any surprising requirements where you operate!  Share them with me on LinkedIn! I’d love to continue the discussion or support you in any way possible. 

Happy New Year!