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Home  Tips and Info Articles Charities and Form 990
Charities and Form 990
Increased access to IRS information
Potential donors now have an additional tool for researching the charitable organizations to which they are considering making contributions. As of June 8, 1999, all 501 (c) organizations (with a few exceptions) will be required to send copies of their three most recent Internal Revenue Service (IRS) Form 990 to anyone who requests them. The Better Business Bureau advises givers to use this new disclosure regulation to make more educated giving decisions based on a charity's true reported numbers.
What is IRS Form 990?
IRS Form 990 is the financial information return that charities file annually to the IRS. Among other things, IRS Form 990 includes detailed information on a charity's income and expenses for a given year.
Which groups are excluded from filing Form 990?
Smaller charities with a gross income of less than $25,000 annually are not required to file IRS Form 990. Private foundations and churches are also exempt from the annual IRS Form 990.
How quickly must an organization provide a copy of their IRS Form 990?
According to the disclosure regulations, if the request is made in person, nonprofits must provide copies of the forms immediately. If the request is made in writing, by fax, or e-mail, groups have thirty days to mail out copies.
Is there a fee associated with acquiring copies of IRS Form 990?
Charities may charge a "reasonable fee" for copying and mailing the forms. According to the Internal Revenue Service, reasonable is defined as one dollar for the first page and 15 cents for additional pages. Nonprofits can require advance payment for copying and mailing fees. In these cases, the thirty day requirement for providing copies would not start until payment is received from the person requesting the forms. In addition, organizations that do not have pre-payment policies will have to notify the person requesting the forms of any copying and mailing costs exceeding twenty dollars.
Can nonprofits post their IRS Form 990 on the Internet in lieu of providing copies?
Nonprofits can reduce the time spent copying as well as the costs associated with copying and mailing by pro-actively posting their IRS Form 990 on the Internet. The material may either be displayed on the organization's own website or at another site that functions as a database of information about nonprofits. Organizations using this manner of IRS Form 990 disclosure must make their website address, or the site address where their IRS Form 990 information is located, readily available to inquiring individuals. In addition, nonprofits must meet several requirements in order to bypass the photocopying requirements and be able to post their information on the Internet.
Are there penalties for nonprofits that fail to meet the IRS Form 990 disclosure requirements?
Nonprofits are subject to fines of twenty dollars a day (up to $10,000 per return) for failure to meet the disclosure requirements. In addition, a $5,000 penalty for "willful failure" can also be applied.
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