Most small organizations file one of two returns: a Form 990-N e-postcard if gross receipts are normally $50,000 or less, or Form 990-EZ if gross receipts are under $200,000 and total assets are under $500,000. Everyone else files the full Form 990.
Source: IRS: Form 990 series, which forms do exempt organizations file
A Form 990 for 2025 must be filed electronically. The IRS instructions say, in so many words, that if you are filing a 2025 Form 990, you are required to e-file.
Source: IRS Instructions for Form 990 (2025), Required electronic filing
The return is due on the 15th day of the 5th month after the end of the fiscal year: May 15 for a calendar-year organization. Form 8868 gives one automatic six-month extension if filed before the original due date.
Source: IRS: Exempt organization annual filing requirements overview
An organization that does not file its required annual return or e-postcard for three years in a row automatically loses its federal tax exemption.
Source: IRS: Annual exempt organization return, penalties for failure to file
For a late Form 990 the 2025 instructions list a penalty of $25 a day, up to the lesser of $13,000 or 5% of gross receipts. For organizations with gross receipts over $1,309,500 it is $130 a day, up to $65,000.
Source: IRS Instructions for Form 990 (2025), Failure-To-File Penalties
A new 501(c)(3) that applies within 27 months after the end of the month it was formed is generally recognized as exempt back to its formation date. Apply later and exemption generally starts on the filing date.
Source: IRS Instructions for Form 1023 (Rev. 12-2024)
Applications for recognition of exempt status on Form 1023, Form 1024 and Form 1024-A must be filed electronically on Pay.gov. Paper applications are no longer accepted.
Source: IRS: Applying for tax-exempt status
A tax-exempt organization with $1,000 or more of gross income from an unrelated business must file Form 990-T, in addition to its Form 990, 990-EZ or 990-PF.
Source: IRS: Unrelated business income tax
For any single gift of $250 or more, the donor needs a written acknowledgment from the charity to claim the deduction. It must say whether the charity gave anything in return.
Source: IRS: Charitable contributions, written acknowledgments
If a donor pays more than $75 and gets something in return, the charity must give a written disclosure with a good-faith estimate of its value. The penalty is $10 per contribution, up to $5,000 per event or mailing.
Source: IRS: Charitable contributions, quid pro quo
Beginning with tax year 2026, taxpayers who do not itemize can deduct up to $1,000 ($2,000 on a joint return) of cash gifts to qualifying charities. Gifts to donor-advised funds and supporting organizations do not qualify.
Source: IRS: One Big Beautiful Bill provisions, section 70424
In Illinois, a charity that raises money only with its own staff and volunteers files an audit with its annual report if contributions exceed $500,000, and reviewed financial statements if they are over $300,000 but not over $500,000.
Source: Illinois Attorney General notice on Public Act 103-0121 (effective January 1, 2024)
