An important component of our society, nonprofit organizations aim to further a social cause. Running a nonprofit requires adhering to a number of regulatory requirements, one of which is submitting Form 990-N. Small tax-exempt organizations with gross receipts of $50,000 or less must submit Form 990-N, often known as the e-Postcard, annually. This post will cover filing fees for Form 990-N and address some associated queries.
Form 990-N submissions are free of charge. You read it right; there is no fee for submitting Form 990-N. Small nonprofits can now easily file their annual reports by using the Internal Revenue Service’s (IRS) electronic filing system. Online submission of the e-Postcard is possible through either the IRS website or through authorized software vendors. The IRS does not impose any fees, and the procedure is simple and quick.
Let’s move on to discuss additional concerns relating to charitable organizations. Both the spellings nonprofit and nonprofit are acceptable and denote the same thing. In contrast to other English-speaking nations, the term “nonprofit” is more frequently used in the United States. An organization that doesn’t exist to generate a profit is referred to by both titles.
You must contact the Secretary of State’s office in your state to secure a nonprofit name. State-by-state variations in the name reservation procedure normally entail completing a form and paying a fee. You have a set length of time after the name is reserved to incorporate your organization and formally register the name.
Although it is not necessary, incorporating a nonprofit organization is strongly advised. By incorporating, an organization can gain legal recognition and protection from personal liability for its members. Articles of incorporation must be submitted to the state along with a fee as part of the incorporation process. The nonprofit becomes a legal entity if the articles are accepted.
The term “doing business as” (DBA) refers to an alternative to forming a nonprofit group. However, using a DBA has a number of drawbacks. First of all, a nonprofit utilizing a DBA is subject to personal liability and lacks legal protection. Second, a DBA is not recognized legally, and thus is not eligible to request tax-exempt status. Finally, using a DBA may make donors and other stakeholders confused and jeopardize the organization’s reputation.
To sum up, submitting Form 990-N is a simple and free process. Both the spellings nonprofit and nonprofit are acceptable, and you can secure a nonprofit name by getting in touch with the Secretary of State’s office in your state. It is strongly advised that nonprofit organizations incorporate, as doing so has various drawbacks. To successfully run a nonprofit organization, it is imperative to follow all legal requirements.
“How Much Does it Cost to File Form 990-N?”