From the President: Tax Season Reminders for Our Association Leaders

As we move through tax season for individuals across the United States, it’s also an ideal time to revisit the informational filing requirements that apply to nonprofit organizations at both the federal and state levels.

While personal taxes tend to dominate the spotlight this time of year, nonprofit compliance, especially IRS Form 990 reporting, remains just as important for maintaining transparency, good governance, and regulatory standing.

What Form 990 Does

Most tax-exempt organizations are required to file an annual return with the IRS, and the specific form an organization must file depends on its financial activity, as outlined in the IRS’s filing chart. For the majority of Barcami Lane, Inc.’s clients, this means filing the full Form 990, rather than Form 990 N or 990 EZ.

Form 990 offers a comprehensive look at a nonprofit organization through 12 key sections (“parts”), including:

• The organization's mission, address, and summary financials

• Program accomplishments and related expenses

• Governance practices and policies

• Revenue, functional expenses, balance sheet, compensation data, and more

The form also includes numerous “schedules,” which organizations file depending on their financial activity and operational structure.

Why Form 990 Matters

Form 990 serves multiple critical purposes:

• Public Transparency: Returns are publicly available through platforms like Candid’s GuideStar, ProPublica, and the IRS.

• Regulatory Compliance: Helps ensure nonprofits adhere to governance, disclosure, and reporting standards.

• Stakeholder Trust: Donors, members, and grantmakers frequently review Form 990 to assess an organization’s health and impact.

Filing Deadlines and Extensions

Nonprofit leaders should also remember that Form 990 is due 5 ½ months after the end of a nonprofit’s fiscal year. For example, an organization with a June 30 fiscal year-end must file its return by November 15. Extensions are available to extend the deadline six additional months. Filing an extension is common and there is no federal penalty to file an extension. The IRS provides a handy chart to determine a filing deadline.

State Filings

While Form 990 is a federal requirement, your association may also have state-level filings, such as charitable registration renewals or financial report submissions, depending on the state in which your organization is incorporated or operates. Because state regulations vary, we strongly encourage boards to consult with your external accounting professional for guidance tailored to your organization.

Management Partners

Do you have a question about your association’s filing requirements or securing an external accounting firm? Your Barcami Lane, Inc. account executive and our accounting team facilitate the annual filing process with our clients and work with a number of external accounting firms across the U.S. who specialize in nonprofit accounting.

We’re your partners in this process and we're here to help educate and inform your board, while also ensuring the filings are completed.

Until next time!

Cambria Happ, MPA, CAE 

President