We are a new charity that has not received any grants or other cash donations yet, but have received in-kind services. Do we still have to file a Form 990?
No. But you will have to file a Form 990-N, the new electronic postcard, to let the IRS know that you exist and function. If you don’t file with the IRS for three straight years, you will lose your exemption. (See Ready Reference Page: “Small Nonprofits Must File E-Postcard to Retain Exemption.”)
A new charity does not have to file a Form 990 (or Form 990-EZ) tax information return until it has received $50,000 in gross revenue a year. (This is an increase from the traditional threshold of $25,000 in place prior to this year.)
Tuesday, January 11, 2011