Why the change? The IRS wants to know:
- How you govern yourself
- How you allocate your time and resources
- What you do with your assets
Benefits:
- Increases transparency
- Creates accountability to the public
- Improves information required to keep you in compliance
Which non-profits does this affect first?
Generally, non-profits with gross receipts greater than $1,000,000 are affected immediately – creating the need to file the new 990 for 2008 (filed in 2009). The IRS is rolling in non-profits each year through 2010 based on gross receipts and total assets, as follows:
- Organizations may file the 990-EZ form for 2008 (generally filed in 2009) if your gross receipts are less than $1,000,000 and your total assets are less than $2,500,000.
- Organizations may file the 990-EZ form for 2009 (generally filed in 2010) if your gross receipts are less than $500,000 and your total assets are less than $1,250,000.
- Organizations may file the 990-EZ form for 2010 and later if your gross receipts are less than $200,000 and your total assets are $500,000.
How does this new form affect non-profits?
It significantly increases:
- Time invested by the organization
- Disclosure requirements
Look for Issue #2 in mid-November. To receive these alerts via email, click "Request Hard Copy" below, and let us know.
