The IRS has imposed a new law for most small tax-exempt organizations. These non-profits whose gross receipts are normally $25,000 or less during their calendar or fiscal year must now file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ.

Before this law was enacted, these small organizations were not required to file annually with the IRS.

All Forms 990’s are due on May 15th for calendar year filers, or by the 15th day of the fifth month after the close of the fiscal year (year ending on a date other than December 31st).

An organization that fails to file the required e-Postcards (or any Form 990) for three consecutive years will automatically lose its tax-exempt status.

I am the executive director of a charitable organization. I received an invitation to a dinner gala for a local politician running for office. Even though my organization is not donating any money to the campaign in risk of losing our exempt status, can I still attend the dinner?

Actually, attending the event given by or in honor of the politician who is running for office could be harmful to your organization’s tax exempt status if the organization paid for the ticket. If you wish to attend the dinner gala, you should purchase the ticket from your personal account, and should not represent the organization at the event.
Not-for-profits organizations, including churches and educational institutions that are exempt from federal income tax are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, any candidate for public office.

Under federal law, these organizations cannot endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements, or become involved in any other activities that may be beneficial or detrimental to any candidate. Even activities that encourage people to vote for or against a particular candidate on the basis of nonpartisan criteria violate the political campaign prohibition of section 501(c)(3).

No, once a non-profit is incorporated, they will need to apply for recognition of exemption from the IRS. Tax exempt means that the nonprofit will not pay taxes to the federal government, and any donors can take a tax deduction for their donations to the organization.

Once your organization receives the determination letter from the IRS recognizing it as a tax-exempt organization, most states like New York, require that you register with the state’s Attorney General to be recognized as a charity in good standing.