Gross Receipts
The nonprofit organization’s gross receipts are the
total amount it received from all sources during its annual
accounting period.
A nonprofit organization’s gross receipts are
considered to be $25,000 or less if the nonprofit organization is:
—Up to One Year Old: Has
received, or donors have pledged to give, $37,500 or less during its
first
year;
—Between One and Three Years Old: Averaged
$30,000 or less in gross receipts during each of its first
two tax years; or
—Three Years Old or More: Averaged
$25,000 or less in gross receipts for the immediately preceding
three tax years, including the year for which the return would be filed.
Acting As Agent
A local chapter of a §501(c)(8) fraternal
nonprofit organization can collect insurance premiums for its parent lodge and
send the premiums to the parent lodge without asserting any
right to the use of the funds or deriving any benefit. Acting as agent
for the parent lodge, the local chapter would not include the premiums in
their gross receipts.
IRS form 990 Package—Receipts Below $25,000
If an organization is below the $25,000
filing requirement and receives an IRS form 990 package, the IRS
requests that the form 990 be filed using the preprinted label and checking the
box in item K indicating that gross receipts are below $25,000. The form
990 return should be signed and mailed to the Ogden Service Center. It
is not necessary to complete Parts I through IX. IRS will not
mail an IRS form 990 package for the following year.
Schedule A Filing Requirements
An organization described in Section
501(c)(3) must complete and attach Schedule A (IRS form 990) to its form 990 (or
form 990 EZ). Schedule A is considered a part of IRS form 990
(or form 990 EZ) for Section 501(c)(3) nonprofit organizations. Therefore,
any nonprofit organization that does not submit a completed Schedule A with
its IRS form 990 (or form 990 EZ) does not satisfy its filing
requirement and may be charged a $20 a day penalty.
Note: To
avoid requests for missing information, complete all applicable line items. Answer "yes" or
"no" to each question on the return. Make an entry (including a zero when
appropriate) on all total lines.
Enter "N/A" if an entire part does
not apply. Do not file Schedule A or IRS form 990 or IRS form 990 EZ if the nonprofit organization is a private foundation.
Instead, file IRS form 990-PF, Return of Private Foundation.
