990 & 990-EZ Charity Registration Requirements

Changes to the IRS Form 990 highlight the increased demand for information related to completing state charity registration process prior to fundraising activities. Failing to register can take on the aura of an intentional act. Do you think you are too small to draw the attention of the IRS?  Please don’t think that way because the IRS Form 990-EZ has charity registration requirements, too.

Have your IRS Form 990 handy? Turn to Part VI, Section C. Disclosure, question 17: “List the states with which a copy of this Form 990 is required to be filed.” Further explanation, not that one is necessary, can be found at page 24 of the Instructions for IRS Form 990.

If your nonprofit is able to use the IRS Form 990-EZ a similar notice requirement is found at Part V, Other Information, question 41: “List the states with which a copy of this return is filed.” Again further explanation can be found at page 23 of the Instructions for IRS Form 990-EZ.

Additionally, check out Schedule G (Form 990 or 990-EZ), Part 1, question 3,“List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.” Instructions can be found at page 2 of the Instructions for Schedule G.

There is one final requirement that would place a nonprofit’s board on notice. At Part VI, Section B. Policies, question 11b: “Describe in Schedule O the process, if any, used by the organization to review this Form 990.” Hopefully, all nonprofits out there have a process in place because the IRS Form 990 is being signed “Under Penalties of perjury…”

Do Good Be Good!  And let me know if you have questions.