INSIGHT

Form 990: A Guide for Nonprofit Leaders 

Jena Lee, Elena Serebriakova • December 3, 2025

Industries: Nonprofit

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Running a nonprofit means balancing your mission with the realities of compliance. While you focus on changing lives and strengthening communities, you also need to navigate IRS and state requirements. Form 990 sits at the center of this responsibility and understanding it can make the difference between smooth operations and costly penalties. 

This guide will walk you through what Form 990 is, who needs to file it, when it’s due, what information you’ll need, and how to complete it correctly.  

What is Form 990? 

Form 990 is an annual information return that most tax-exempt organizations must file with the IRS. Think of it as your organization’s financial report card. It gives the IRS a complete picture of your activities, governance structure, and financial health. But it serves another purpose too: it allows donors, grantmakers, and the public to see how you’re fulfilling your mission and managing resources.  

This transparency matters. When people can review your Form 990, they can make informed decisions about supporting your organization. 

Who Needs to File Form 990? 

Most tax-exempt organizations must file some version of Form 990. Churches and certain state institutions are exempt, but if you’re running a public charity, trade associations or social welfare organization, you’ll likely need to file. 

The specific form you file depends on your organization’s size: 

• Form 990-N (e-Postcard) is for organizations with gross receipts of $50,000 or less 
• Form 990-EZ is for organizations with gross receipts under $200,000 and total assets under $500,000 
• Form 990 is for larger organizations that exceed these thresholds 

When is Form 990 Due? 

You must file Form 990 by the 15th day of the fifth month after your fiscal year ends. If your fiscal year ends on December 31, your Form 990 is due by May 15. If you operate on a June 30 fiscal year end, you’ll need to file by November 15. 

Missing this deadline creates problems. You can request an automatic six-month extension by filing Form 8868 before the original due date, but you need to plan ahead. 

Understanding the Penalties 

The IRS takes Form 990 seriously, and so should you. If you file late, you’ll face penalties of $20 per day for organizations with gross receipts under $1 million, or $100 per day for larger organizations. These penalties cap at $10,000 and $50,000 respectively, but they add up quickly. 

The bigger risk? If you fail to file for three consecutive years, the IRS will automatically revoke your tax-exempt status. Reinstatement requires significant effort and expense. 

What Information Does Form 990 Require? 

Form 990 asks for detailed information across several categories. You’ll need to provide your organization’s mission statement, program descriptions, and financial data including revenue, expenses, assets, and liabilities. 

The governance section requires information about your board, policies, and decision-making processes. You’ll also need to disclose compensation for officers, directors, key employees, and high-earning contractors. 

Schedule sections request additional details about specific activities like fundraising events, grants made, political activities, and related organizations. The supplemental information section provides space to explain financial statements and elaborate on your programs. 

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How to Complete Form 990 Correctly 

Start by maintaining accurate records throughout the year. Good bookkeeping prevents scrambling when filing season arrives. Document board meetings, track program expenses separately, and keep detailed compensation records. 

Give yourself adequate time to complete the form. Rushing leads to errors and omissions that can trigger IRS inquiries. Review the instructions carefully each year, as requirements change. 

Consider your audience as you write. Your Form 990 tells your story to potential donors and grantmakers. Clear, detailed program descriptions help people understand your impact. 

Stay current with IRS updates and guidance. The agency periodically revises forms and instructions, and you need to comply with the latest requirements. 

Getting the Support You Need 

Form 990 compliance doesn’t have to overwhelm you. At BPM, we understand the unique challenges nonprofits face. We’ve worked with more than 500 nonprofit organizations over nearly 40 years, from small family foundations to large institutions managing millions in endowments.  

Our team includes professionals who hold AICPA Not-For-Profit Certifications and serve on nonprofit boards in their communities. We’re members of the AICPA Governmental Audit Quality Center, demonstrating our commitment to quality.  

Whether you need help with Form 990 preparation, audit services, tax compliance, or outsourced accounting support, we can help you stay compliant while you focus on your mission. To discuss how we can support your organization’s compliance needs and help you tell your financial story with confidence, contact us.