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Nonprofit Law updates from Cullinane Law Group. March 2014
Cullinane Law Group

IRS 990s Due!

While tax-exempt nonprofit organizations do not pay federal taxes, most do have to file an annual informational return with the IRS called the Form 990. 

This financial report is due on the 15th day of the 5th month after the end of the organization’s taxable year. This means that if your organization follows the calendar year, your organization's 2013 Form 990 will be due on May 15!

The Form 990 allows the IRS and the general public to evaluate a nonprofit’s operations; it includes information on the nonprofit’s mission, programs, and finances. 

The type of Form 990 to be filed by an organization depends on the filing year and the gross receipts of the organization.  The different forms include 

  • Form 990
  • Form 990-EZ
  • Form 990-N, among others. 
The IRS has a helpful chart available that can guide you in determining which form to file.

Not all nonprofits have to file annual returns. Generally, the following do not have to file Form 990:
  • Most faith-based organizations, religious schools, missions or missionary organizations
  • Subsidiaries of other nonprofits – those that may be covered under a group return filed by the parent organization (make sure the parent is filing!)
  • Many government corporations
  • Many state institutions that provide essential services.
Not ready to file?
The IRS allows organizations to apply for an automatic three-month extension by filing Form 8868.

What if we don't file? 
There are penalties if this report is not filed. Nonprofits that fail to file a return or submit incorrect or incomplete information are subject to a penalty of $20 a day. Nonprofits with gross receipts of more than $1,000,000 may be subject to a penalty of $100 a day. If an organization fails to file a Form 990 three years in a row, the IRS will automatically revoke its tax-exempt status. 
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Mollie Cullinane
 

We work exclusively with nonprofits + social enterprises.

We help you turn your passion or cause into an organization that can make a difference.


We serve foundations, charities, professional athletes, religious organizations, social enterprises, and do-gooders throughout the United States who seek to create positive change.


Based in Austin, Texas.
Clients Nationwide.

512.298.2898
hello@cullinanelaw.com


Jeff Cullinane

Client Highlight: Fortress Foundation

We have been honored to help several professional athletes in their mission to give back and bring good to the world. 

Justin Masterson, Major League Baseball All-Star pitcher for the Cleveland Indians, along with his wife Meryl, family, and friends, have founded the Fortress Foundation. 

Justin has always expressed a passion for giving back, because the game of baseball has given him so much. 

Masterson has embarked on charitable trips to the Dominican Republic in past off seasons and has financially supported numerous causes.

"Meryl and I have received many blessings in this life," Masterson said, "and strongly believe that to whom much is given, much is expected."

Help! We lost our 501(c)(3) letter! 

Donors request verification that your organization is a qualified tax-exempt entity. The most common way to show tax status is to give the donor a copy of your organization’s IRS determination letter, which you received when you became a 501(c)(3) entity. This letter shows the type of tax-exempt organization and whether it is a private foundation or a public charity. 

If your nonprofit has misplaced your 501(c)(3) determination letter for the IRS, you can get another copy. Call the IRS Customer Service for nonprofit organizations at 1-877-829-5500 and give them your nonprofit's name. It will also help if you have your nonprofit's Employer Identification Number (EIN). We have found it best to call firs thing in the morning.

If you’re not sure if your nonprofit has 501(c)(3) tax-exempt status, check the Exempt Organizations Select Check.

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