Nonprofit organizations with gross receipts of less than $1M are required to file a Form 990 with the IRS annually. Imagine being a board member of nonprofit and finding out that the volunteer serving as treasurer of the organization didn’t file a 990 for three consecutive tax years and consequently the organization is faced with paying penalties and federal income taxes, not to mention filing all the paperwork again to regain tax exempt status. Does this really happen? Yes it does.
Articles and information posted here are created or distributed by Carroll Welte, Extension Educator for Nebraska Extension's Community Vitality Initiative. For more information please contact Carroll at firstname.lastname@example.org or call Nebraska Extension in Burt County at 402-374-2929.
Rural communities are supported by numerous nonprofits organized to manage local projects, events and community betterment. In late fall boards begin to prepare for a new year by identifying and recruiting new members. While willing to serve in new leadership roles, many folks come onto boards with no familiarity or knowledge of how nonprofit organizations function or the legal requirements.