How Nonprofits Can Stay Compliant with 990 Filings
- Cortina Lockhart
- Jan 4
- 2 min read
Maintaining tax-exempt status is crucial for nonprofits, but it requires staying on top of IRS requirements—especially when it comes to filing Form 990. This essential document provides the IRS with insights into your organization’s finances, activities, and governance. Failing to file or filing incorrectly can jeopardize your tax-exempt status.
At Hosch Group LLC, we help nonprofits navigate the complexities of 990 filings, ensuring your organization remains compliant and transparent.
1. Understand Which 990 Form to File
The IRS offers different versions of Form 990 and choosing the wrong one can lead to errors or delays. The form you file depends on your organization’s size and income. Filing the correct form signals proper governance and transparency to donors and regulatory bodies.
How to Fix It:
Form 990-N: For organizations with gross receipts of $50,000 or less.
Form 990-EZ: For nonprofits with receipts under $200,000 and assets under $500,000.
Form 990: Required for organizations exceeding the above thresholds.
Unsure which form fits your organization? Hosch Group LLC can assess your financials and ensure you file the appropriate form.
2. Keep Accurate Financial Records
Form 990 requires nonprofits to disclose detailed financial information, including revenue, expenses, and programs. Gaps in record-keeping can lead to incomplete filings, triggering red flags with the IRS.
How to Fix It:
Maintain ongoing records of all financial transactions, program expenses, and fundraising activities.
Use accounting software tailored for nonprofits to simplify financial reporting.
If managing records feels overwhelming, Hosch Group LLC offers bookkeeping services designed for nonprofits.
3. Document Board Meetings and Decisions
Transparency and accountability extend beyond finances. The IRS looks at governance practices, so documenting board meetings, votes, and major decisions is critical. This showcases ethical leadership and operational integrity.
How to Fix It:
Keep minutes for all board meetings and highlight key decisions regarding finances and programs.
Implement policies to formalize record-keeping and board responsibilities.
Hosch Group LLC can help establish governance structures that align with IRS expectations.
4. Track In-Kind Donations and Volunteer Hours
In-kind contributions and volunteer efforts represent a significant part of many nonprofits’ operations, yet they’re often overlooked during 990 filings. Accurately reporting them enhances transparency and demonstrates your organization’s value.
How to Fix It:
Create a system for recording volunteer hours and tracking in-kind donations.
Use software or simple spreadsheets to log and categorize non-monetary contributions.
Let Hosch Group LLC assist in structuring your reporting to capture the full scope of your organization’s efforts.
5. Meet Filing Deadlines
The IRS mandates that nonprofits file Form 990 by the 15th day of the 5th month after the end of their fiscal year. Missing this deadline can result in penalties, or worse—loss of tax-exempt status.
How to Fix It:
Set calendar reminders well in advance of the deadline.
Consider filing for an extension if you need more time to gather records.
Hosch Group LLC ensures timely and accurate filings to keep your nonprofit in good standing.
Let Hosch Group LLC Handle Your 990 Filings Don’t risk your nonprofit’s compliance—trust Hosch Group LLC to manage your 990 filings and financial records with precision.
🔹 Need help filing Form 990? Reach out to Hosch Group LLC today!
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