July 5, 2010
Authored by: Keith Kehrer
The Form 990 was substantially revised in 2008. To allow charities time to prepare, only charities with gross receipts ≥ $1 million, or total assets ≥ $2.5 million, were required to file the new Form 990 in 2008 (small and medium sized charities were required to file Form 990-N and Form 990-EZ, respectively). The filing thresholds were reduced for 2009, and for the 2010 tax year and beyond, were further reduced and are established as follows:
- Form 990 – Gross receipts ≥ $200,000, or total assets ≥ $500,000
- Form 990-EZ – Gross receipts < $200,000, and total assets < $500,000
- Form 990-N – Gross receipts normally ≤$50,000
As a result of these filing thresholds, many medium-sized charities must now prepare to file the new Form 990 in 2010. The new Form 990 will require such charities to gather and disclose substantially greater information than before. We strongly recommend that medium-sized charities become familiar with the new Form 990 now and ensure that it will be able to gather the required information. In many cases, it may be necessary to implement new procedures.