Nonprofit Tax Season: What to Do Before You File Form 990
Let’s be real—taxes can be a little overwhelming. But for nonprofits, staying tax-compliant is key to keeping your mission on track, maintaining your tax-exempt status, and keeping donors happy! Luckily, with a little know-how and some savvy tips, your nonprofit can sail through tax season without a hitch. Ready to feel like a tax compliance rockstar? Let’s dive in!
The Calm Before the Storm
By February, tax season is on every nonprofit leader’s radar. For organizations required to file a Form 990, preparation is everything.
Why the 990 Matters
It’s publicly available—donors, watchdogs, and media can read it.
It shows how your nonprofit uses resources—efficiency, admin costs, and transparency.
It impacts future funding—grantmakers review it before awarding support.
What to Prepare Before Filing
Financial statements. Year-end balance sheet and income statement.
Donor records. Contributions of $5,000+ need reporting.
Board & governance info. Updated list of board members and policies.
Program accomplishments. A narrative of impact, not just numbers.
Compensation details. Report key staff salaries accurately.
Common Pitfalls
Waiting until the deadline and rushing.
Missing restricted fund tracking.
Overlooking narrative explanations.
Need a Helping Hand with Tax Compliance?
Filing season is stressful—but you don’t have to do it alone. Accountants 4 Causes helps nonprofits prepare 990s that tell a clear, funder-friendly story.