990, 990-EZ Or 990-Npreparation Guidelines

990, 990-EZ or 990-NPreparation Guidelines

The IRS recently changed its filing requirements so now ALL nonprofits MUST file a Form 990 of some kind. For chapters with fiscal year-ends of December 31, your 990 must be filed by May 15.

Please look at the requirements below to figure out which form you need to file.

Gross Receipts* / Total Assets / Required Form
Less than $50,000 / n/a / Form 990-N
Less than $200,000 / Less than $500,000 / Form 990-EZ
More than $200,000 / More than $500,000 / Form 990

*IRS Definition - Calculating gross receipts

The organization's gross receipts are the total amount it received from all sources during its annual accounting period, without subtracting any costs or expenses.

Completing your Form 990-N

You may choose to file a 990-EZ in place of the electronic 990-N, but the form must be completed entirely or your filing will be considered incomplete and a penalty may be assigned.

It’s very important to remember the below items when completing the form:

1)Always spell out the full name – Association of Fundraising Professionals – and add your chapter’s official name.

2)ALWAYS use the international headquarters address:

4300 Wilson Blvd., Suite 300,

Arlington, VA 22203-4167

3)Always check that you have entered the chapter’s Employer Identification Number (EIN) correctly. Always use the chapter’s EIN –NOTthe international headquarters’ EIN.

4)Always enter the correct dates for the filing period – example: January 1 toDecember 31, 2013.

5)A statement that your organization’s annual gross receipts are still normally $25,000 or less

6)If applicable, a statement that your organization is terminating (going out of business)

Completing your Form 990 or 990-EZ

1)Always spell out the full name – Association of Fundraising Professionals – and add your chapter’s official name.

2)ALWAYS use the international headquarters address:

4300 Wilson Blvd., Suite 300,

Arlington, VA 22203-4167

3)Always check that you have entered the chapter’s Employer Identification Number (EIN) correctly. Always use the chapter’s EIN –NOTthe international headquarters’ EIN.

4)Onlycheck the box in the top left section of the return marked “Initial Return” if this is the first return as an AFP chapter.

5)Do not check the box marked“Final Return” unless your chapter is disbanding and this is your last return as anAFP chapter.

6)DO NOT check the box marked “Change of Address”.

7)Always enter the AFP Group Exemption Number 3237.

8)Always check the box marked “50l (c) and add a “3”. All AFP Chapters

are exempt under Internal Revenue Code Section 501(c)(3).

9)Always enter the correct dates for the filing period – example: January 1 toDecember 31, 2013.

10)All chapters who file a return with the IRS must complete and file Schedule A or the return will be considered incomplete; this could result in a penalty since the IRS will not consider your return “filed” until the chapter has complied with all requirements.

11)Ensure ALL appropriate schedules are filed with your return.

1. Schedule A needs to be completed by all chapters filing the 990 or 990-EZ. Failure to do so will result in an incomplete filing with the IRS, which will result in penalties. Your chapter is a (c)(3) for the following reason:An organization that normally receives: (1) more than 331⁄3 % of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331⁄3 % of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

1. All chapterswho receive donations in excess of $5,000must file Schedule B.
2. Be sure to check the box indicating that you are not required to file Schedule B, if applicable. You are not required to file Schedule B if you have notreceived donations from any one contributor in an amount that is greater than either $5,000 or constitutes 2% of your total gross receipts.

12)Form 990-Tmust be filedif your chapter has unrelated business income. More information on unrelated business income tax (UBIT) and how it relates to chapters can be found on AFP’s website.

13)Sign and date your return.

14)Mail original to Internal Revenue Service, Ogden, UT 84201- copy to AFP ChapterServices, 4300 Wilson Blvd., Suite 300, Arlington, VA 22203-4167.

Important Information for all forms

Your chapter’s tax return is due by May 15.

For more information

If you have any questions about the information presented here, please contactTaryn Gold, Director, Chapter Administration, at (800) 666-3863, ext. 452

This document is not meant as legal tax advice – for additional information or advice you should consult with a qualified professional familiar with nonprofit tax law.