Annual Compliance Checklist for California Non-profits
We all know that every business has annual filings that they have to do to stay in compliance – but if you are a non-profit, you have a few more annual filings that you must do.
Our team has compiled a list of Federal and California state specific filings to help your non-profit stay compliant!
First, we’ll take a look at Federal Requirements:
First, you need to file IRS Form 990, which is the non-profit's tax return, with the IRS by the 15th day of the 5th month after the end of the organization's accounting period. Remember:
Non-profits with gross receipts less than $200,000 and total assets at the end of the tax year less than $500,000 can opt to file Form 990-EZ rather than Form 990.
Non-profits with gross receipts less than $50,000 can opt to file Form 990-N rather than Form 990.
All private foundations must file form 990PF.
All non-profits must file along with its form 990, an Exempt Organization Business Income Tax Return (Form 990-T) to report unrelated business income if it has gross income of $1,000 or more from a regularly conducted unrelated trade or business.
Now, let’s look at California filings:
All charities, regardless of receipts or assets, must file an Annual Registration Renewal Fee Report (RRF-1 Form) along with its Form 990. Non-profits with gross receipts of less than $50,000 in a fiscal year must file the Annual Treasurer’s Report (CT-TR-1 Form and Instructions) along with Form RRF-1 to renew their registration with the Attorney General’s office.
Non-profits with gross receipts of more than $50,000 in the year must file Exempt Organization Annual Information Return (FTB Form 199) annually with the State of California. Usually done at the time of filing its federal return. If a non-profit has $50,000 or less in gross receipts, it must file an Annual Electronic Filing Requirement for Small Exempt Organizations FTB 199N (the “California e-Postcard”).
All non-profits must file the Statement of Information (Form SI-100) every two years during the calendar month during which the initial Statement and Designation by Foreign Corporation was filed – with the Secretary of State.
A non-profit must file Exempt Organization Business Income Tax Return (FTB Form 109) for years when it had gross income of more than $1,000 from a trade or business unrelated to its exempt purpose.
If the non-profit has filed IRS Form 5768 to report limited political or legislative activities during the year, it must also file the Political or Legislative Activities by Section 23701d Organizations Form (Form 3509) with the State of California. This form is where such activities are reported, and it must be attached to Form 199.
As a taxable entity, a non-profit must pay an $800 minimum California franchise tax unless the non-profit has applied for tax-exempt status and the Franchise Tax Board (FTB) has determined the non-profit qualifies for tax-exempt status.
Routinely report donations via Initial Registration Form CT-1 within 30 days with the Office of the Attorney General.
If the non-profit uses a DBA, most DBAs in California must be renewed every five years. Upon renewal, the non-profit must refile an application for the DBA in accordance with county requirements.
If you are starting a new non-profit and would like legal guidance on getting started, the Parsus Non-profit Toolkit is a way to help you ensure that your non-profit is set up in a legally sound manner, so you can continue making an impact for years to come.