Which 990 you file
990-N (postcard) for gross receipts under $50,000. 990-EZ for receipts between $50,000 and $200,000 with assets under $500,000. Full 990 for everything else. Private foundations file 990-PF. The full 990 is as much a governance document as a tax form: program accomplishments, board policies, and compensation practices all show on a form anyone can pull up.
State charity registration
Most states require nonprofits soliciting donations from residents to register with the state's charity bureau. Florida, California, New York, and Illinois have active enforcement. We track and file. In Florida the registration runs through the Department of Agriculture and Consumer Services and renews annually, and online fundraising can quietly create obligations in other states where your donors live.
Florida sales tax exemption
Exempt status from the IRS does not automatically exempt purchases from Florida sales tax. The organization applies to the Department of Revenue for a consumer's certificate of exemption and presents it to vendors. Sales the nonprofit makes (event tickets, merchandise, concessions) can still be taxable sales, which catches gala and fundraiser planners off guard.
Unrelated business income
Revenue from activities not substantially related to the exempt purpose can be taxable as unrelated business income and reported on Form 990-T. Common triggers deserve a look before they grow:
- Advertising sales in newsletters or on the website, as opposed to acknowledgment-style sponsorships
- Regular merchandise sales unrelated to the mission
- Rental income from debt-financed property
- Too much unrelated activity can eventually threaten the exemption itself
Donations, acknowledgments, and events
Donors need a written acknowledgment for gifts of $250 or more, and quid-pro-quo contributions (a gala ticket with dinner included) require the organization to state the deductible portion. Non-cash gifts, auction items, and vehicle donations each have their own substantiation forms. Getting the letters right protects your donors' deductions and your organization's credibility.
Payroll and board compensation
Key employees' compensation, board members' expense reimbursements, and related-party transactions all require Schedule J or L disclosures on the 990. Nonprofits run real payroll with real withholding, and misclassifying program staff as contractors creates the same exposure it does in a for-profit, with the added cost of a public form that shows it.
Common questions
- What happens if we miss filing a 990 three years in a row?
- Automatic revocation of 501(c)(3) status. Reinstatement requires reapplication and often back-tax liability for years out of compliance.
- Are we automatically exempt from Florida sales tax?
- No. The Florida exemption certificate is a separate application to the Department of Revenue. Until it's issued, vendors are right to charge you tax.
- Our nonprofit sells t-shirts and event tickets. Is that a problem?
- Not necessarily, but it needs a look. Mission-related sales are usually fine; regular commercial activity can be unrelated business income, and Florida sales tax can apply to the sales themselves.
- Do we have to register before fundraising in Florida?
- Yes, with limited exceptions. Florida requires charities soliciting contributions to register with FDACS and renew each year, and the state does enforce it.
Related
Monthly Bookkeeping
Monthly, quarterly, and annual bookkeeping with bank reconciliations, a profit-and-loss report, and balance sheet within ten business days of month-end.
Corporation & Partnership Tax Returns
Forms 1120, 1120-S, and 1065 preparation for corporations, S-corps, and partnerships, plus owner K-1s, shareholder basis tracking, and multi-state filings.
More industries we serve
Tax & Accounting for Professional Service Firms
Law firms, architects, and engineering firms: 199A phase-out planning, guaranteed payments vs owner draws, and cash balance retirement plans for partners.
Tax & Accounting for Restaurants & Hospitality
Tip reporting, FICA tip credit, prime cost and food cost accounting, and Florida sales tax filing for restaurants, bars, and hotels from KG Tax & Consulting.
Tax & Accounting for Construction & Trades
Completed contract vs percentage of completion, 1099-NEC filing for subcontractors, Section 179 equipment depreciation, and worker classification reviews.
Tax & Accounting for Retail & E-commerce
Inventory accounting, multi-state sales tax nexus, Amazon 1099-K reporting, FBA state registration, and marketplace facilitator rules for online sellers.