What Happens After You Receive Your 501(c)(3)?
Congratulations — the IRS has recognized your organization. Now the ongoing compliance begins. Most organizations that lose their exemption don't do anything dramatic; they simply miss routine filings.
File a Form 990 every year
- Form 990-N (e-Postcard) for organizations that normally have gross receipts of $50,000 or less.
- Form 990-EZ for organizations with gross receipts under $200,000 and total assets under $500,000.
- Form 990 for larger organizations. Private foundations file Form 990-PF regardless of size.
The return is due by the 15th day of the 5th month after your fiscal year ends (May 15 for calendar-year organizations). Fail to file for three consecutive years and your exemption is automatically revoked.
Register with the states where you fundraise
Federal exemption does not give you permission to solicit donations. Roughly 40 states and the District of Columbia require charitable solicitation registration — usually before you ask.
Apply for state tax exemptions
State income, sales, and property tax exemptions usually require separate applications with your state's revenue department. Your IRS letter often is required, but it isn't automatic.
Give donors proper receipts
Donors need a written acknowledgment for any single gift of $250 or more. If a donor receives something in return for a payment over $75 (a gala dinner, for example), you must tell them the deductible amount.
Protect your exemption
- No political campaign activity for or against any candidate.
- Keep lobbying insubstantial (or within 501(h) limits).
- No private benefit: pay reasonable compensation only, and document decisions involving insiders.
- File Form 990-T if you have $1,000 or more of gross income from an unrelated trade or business.
- Make your exemption application, your three most recent 990s, and any Form 990-T filed in the last three years available to anyone who asks.
Related service: Charitable Solicitation Registration →