Running a Nonprofit · Level 4 of 5 · Advanced

Money, filings, and compliance

Form 990, restricted gifts, budgets, and donor acknowledgments.

Study notes

Most exempt organizations file an annual Form 990 series return. Small organizations with gross receipts normally $50,000 or less can file the e-Postcard, Form 990-N.
Form 990-EZ is available when gross receipts are under $200,000 and total assets are under $500,000. Larger organizations file the full Form 990.
Failing to file for three consecutive years automatically revokes tax-exempt status.
Donors need a written acknowledgment for any single contribution of $250 or more to claim a deduction.
Restricted gifts must be used for the purpose the donor specified. Track them separately in your books.

Quiz: 6 questions

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1. A charity with gross receipts normally under $50,000 can usually file:

Form 990-N (e-Postcard) Form 1040 Form 941 only Nothing ever

2. What happens after three consecutive years of not filing a required 990?

Tax-exempt status is automatically revoked A free extension Nothing The board is jailed

3. A donor gives $300 in one gift. To deduct it, they need:

A written acknowledgment from the charity A selfie A board vote Nothing

4. A donor gives $5,000 'for the youth program only'. The money:

Must be used for the youth program Can pay any bill Goes to the board Must be returned

5. Form 990-EZ limits are gross receipts under ___ and assets under $500,000.

$200,000 $5,000 $2 million $50

6. Why track restricted funds separately?

To prove the money was used as the donor required To lower taxes Banks require colors It is optional decoration

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