Nonprofits
Restricted funds, grants, the 990, and audit season.
Three missed years ends a club’s tax-exempt status, and it can be fixed
A club that skips its annual return three years running loses its exempt status automatically. Reinstatement paths exist, and the right one depends on the facts.
An extension moves the filing date and leaves the payment date where it was
Form 8868 gives a club six more months to file, but it does not extend the time to pay any tax owed on unrelated business income.
The next treasurer inherits whatever the last one left behind
Volunteer treasurers rotate. Here is where a club’s records, logins, filings and deadlines should live so the handoff does not break anything.
The return a club files depends on how much money moves through it
Gross receipts and total assets decide whether a nonprofit club files the 990-N, 990-EZ or full 990. Here is how the size tests work.
A social club can owe tax on money that does not come from its members
Section 501(c)(7) clubs can be taxed on nonmember and investment income and may file Form 990-T. What flying, yacht and ski clubs should watch.
A club’s fiscal year decides when its Form 990 is due
The Form 990 is due on the 15th day of the fifth month after year end, so a spring year-end club files in the fall and a calendar-year club in May.
A volunteer board needs one page, and it can be a short one
What a club board should see at every report: cash, what came in, what went out, what is owed, and how it compares to the plan. No jargon needed.
Everything here is general information, not tax or legal advice. Reading it doesn’t make you a client, and your facts will change the answer.
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