Nonprofit Tax News and Updates
Each item is checked against an official source before it is published. Last updated October 20, 2026.
A deduction for non-itemizers begins with tax year 2026
The IRS describes a new deduction for cash gifts by taxpayers who do not itemize: up to $1,000 ($2,000 on a joint return), beginning with tax year 2026. Gifts to donor-advised funds and supporting organizations do not qualify, and only cash gifts count. Expect more requests for receipts from small donors. IRS: One Big Beautiful Bill provisions.
Illinois audit and review thresholds rose in 2024
Effective January 1, 2024, a charity that raises funds only with its own staff and volunteers files an audit with its Illinois Attorney General annual report if contributions exceed $500,000, and reviewed financial statements if they are over $300,000 but not over $500,000. The $25,000 audit threshold for charities that use a paid professional fundraiser did not change. Illinois Attorney General notice.
The 2025 Form 990 instructions require e-filing and list current late-filing penalties
The 2025 instructions state that a 2025 Form 990 must be e-filed and list a late-filing penalty of $25 a day (up to the lesser of $13,000 or 5% of gross receipts), or $130 a day (up to $65,000) when gross receipts exceed $1,309,500. IRS Instructions for Form 990.
Form 1023 and its instructions are marked December 2024; Form 1023-EZ instructions January 2025
The Form 1023 instructions are marked Revised 12/2024 and the Form 1023-EZ instructions 01/2025. Applications are filed electronically on Pay.gov. Form 1023 instructions.
The IRS says it intends to propose regulations on the excess executive compensation tax
IRS Notice 2026-36 states that the IRS intends to issue proposed regulations under section 4960, the tax on excess compensation paid by tax-exempt organizations. If your organization pays high salaries, watch for them. IRS: One Big Beautiful Bill provisions.
What to watch next
- For calendar-year organizations that extended their 2025 return, the extended due date is in November 2026 (see the calendar).
- The Form 990 instructions for tax year 2026, usually published in the fall.
- Guidance on the non-itemizer deduction and the section 4960 proposed regulations. We update this page only after verifying the source.
News items are general information and are not legal or tax advice. Verify figures and deadlines on irs.gov and with your state, and consult a qualified professional before acting.