Lesson 11 of 11
Ongoing nonprofit compliance
Exemption is not permanent. It depends on continuing to operate as described and on filing what is required.
Federal annual filing
Most exempt organisations file an annual return in the Form 990 series. Which version applies depends on gross receipts and assets. Failing to file for three consecutive years results in automatic revocation of exempt status.
State filings
- State corporate annual or biennial report
- Charitable solicitation renewal in each registered state
- Registered agent kept current
Governance upkeep
- Hold and minute board meetings
- Review executive compensation for reasonableness and document the review
- Apply the conflict of interest policy and record disclosures
- Keep donor records, receipts and acknowledgement letters
- Report unrelated business income where applicable
Automatic revocation after three missed annual returns is common and avoidable. Diarise the Form 990 deadline the moment your exemption is granted.
Official sources
Want help with the paperwork?
You can incorporate and apply for exemption yourself using the steps in this course. If you would rather have support, Gullia Filing prepares and files your nonprofit incorporation, supplies compliant bylaws and conflict of interest policy, and obtains your EIN.