Staying Compliant: Routine Filings and Reports for California Nonprofits
Once your nonprofit organization is formed in California, it’s important to ensure ongoing compliance with state and federal laws. This includes regular filings and reports that need to be submitted to various government agencies to maintain your nonprofit’s legal status. Here are the key routine filings and reports that California nonprofits should be aware of:
1. Biannual filings with the California Secretary of State (“SOS”)
California nonprofits are required to file a statement of information with the SOS every two years. The statement of information includes information about your nonprofit’s name, address, registered agent, and officers. The filing fee is currently $20. Failure to file the statement of information can result in penalties and possible suspension or dissolution of your nonprofit by the SOS.
2. Annual filings with the California Attorney General Registry of Charitable Trusts
California nonprofits are also required to file an annual report called the RRF-1 with the California Attorney General Registry of Charitable Trusts. The RRF-1 provides information about your nonprofit's financial activities, including revenue, expenses, and assets. The filing fee for the RRF-1 is based on your nonprofit’s gross revenue and ranges from $0 to $1,200. Failure to file the RRF-1 can result in penalties and possible suspension or revocation of your nonprofit's tax-exempt status by the California Attorney General.
3. Annual filings with the Franchise Tax Board (“FTB”)
California nonprofits are also required to file an annual tax return with the FTB, even if they are exempt from paying state income taxes. The annual tax return, Form 199, includes information about your nonprofit’s revenues, expenses, and assets. Failure to file the annual tax return can result in penalties and possible revocation of your nonprofit’s tax-exempt status by the FTB.
4. Annual filings with the Internal Revenue Service (“IRS”)
If your nonprofit is recognized as tax-exempt by the IRS, you are required to file an annual information return, Form 990, with the IRS. The specific version of Form 990 that your nonprofit needs to file depends on your nonprofit’s gross receipts and assets. Small nonprofits with gross receipts below $50,000 can file Form 990-N, also known as the e-Postcard. Larger nonprofits with gross receipts above $50,000 must file Form 990 or Form 990-EZ. Failure to file the annual information return can result in penalties and possible revocation of your nonprofit’s tax-exempt status by the IRS.
Staying compliant with routine filings and reports is essential for the ongoing operations and legal status of your nonprofit in California. To ensure that your nonprofit meets all the necessary filing requirements and stays in compliance with state and federal laws, schedule a free consultation with a Parsus attorney today!
Legal Disclaimer: The information in this article is provided for general informational and educational purposes only. It is not intended to be legal advice and does not create an attorney-client relationship.