Do nonprofits file tax returns? yes, almost always

Last updated 2026-07-25

do nonprofits file tax returns?

Yes. This is one of the most misunderstood facts in the volunteer nonprofit world. People hear "tax-exempt" and assume it means "no paperwork." It doesn't. Tax-exempt means the organization usually doesn't owe income tax on money it raises for its mission. It does not mean the organization is invisible to the IRS. The IRS puts it plainly: "Most tax-exempt organizations are required to file an annual return" ^[1]. The exact form depends on gross receipts and asset size, but almost every 501(c)(3) or 501(c)(4) booster club, PTO, band parent group, or youth sports association has an annual filing obligation. Even organizations with $0 in the bank and no bank account activity for the year generally still have to file the 990-N e-postcard. The exceptions are narrow: churches, their integrated auxiliaries, and conventions or associations of churches are not required to file an annual return ^[2]. A few government-affiliated units also get a pass. A booster club raising money for the marching band does not fall into either category, no matter how small its budget is.

what is form 990 (the 990 tax form), exactly?

990-N (e-postcard)	Small orgs	Normally $50,000 or less [4]
990-EZ	Mid-size orgs	Gross receipts under $200,000 AND total assets under $500,000 [5]
990 (full form)	Larger orgs	Gross receipts $200,000+ OR total assets $500,000+ [5]
990-PF	Private foundations	All private foundations, regardless of size [6]	Most booster clubs, PTOs, and youth sports leagues with modest annual fundraising land on the 990-N or 990-EZ. A group running a big concession operation, a large raffle, or holding a sizable reserve fund might cross into full Form 990 territory. Confirm the current thresholds with the IRS before you file, since dollar cutoffs get adjusted over time.

Form 990 is the annual information return that tax-exempt organizations file with the IRS. It's not a tax bill in the way a personal 1040 might generate one. It's closer to a public report card: it discloses revenue, expenses, program activities, and how the organization is governed ^[3]. There isn't just one "990." There's a family of forms scaled to size, and picking the right one is the first real decision a new treasurer makes: | Form | Who files it | Gross receipts threshold (2024 filing) |

what is the 990 (990-N) e-postcard, and who has to file it?

The 990-N, often just called "the e-postcard," is the simplest version. It's for organizations whose annual gross receipts are normally $50,000 or less ^[4]. It's filed online through the IRS's own portal, takes maybe ten minutes once you have your EIN and basic org info, and asks for things like your legal name, address, EIN, tax year, and a confirmation that receipts are under the threshold. There's no financial detail required on a 990-N. That's the tradeoff for being small: less disclosure, but still a mandatory annual filing. A lot of new booster club treasurers assume that because there's no dollar figures to report, filing is optional. It isn't. The IRS states the 990-N is required for most small tax-exempt organizations whose gross receipts are normally $50,000 or less ^[4], and skipping it counts the same as skipping any other 990 variant for revocation risk. One quirk worth knowing: if your organization is brand new, you generally aren't required to file the e-postcard until your fifth tax year, but you can (and often should) file it earlier once you have your EIN, just to keep a clean record. Confirm your specific filing start date with the IRS, since first-year rules can be confusing for newly formed groups.

what happens if a nonprofit doesn't file its tax return?

This is the part that catches booster clubs off guard every year. The IRS doesn't send a friendly reminder before pulling the trigger. Under the Pension Protection Act of 2006, any organization required to file an annual return or notice that fails to do so for three consecutive years automatically loses its tax-exempt status, by operation of law, on the filing due date of the third year ^[7]. The IRS states it directly: "Automatic revocation occurs when an exempt organization that is required to file an annual return or notice fails to do so for three consecutive years" ^[7]. No hearing, no appeal before the fact, no notice required. The revocation is automatic and retroactive to that due date. Once revoked, the organization is treated as a taxable entity. It has to file income tax returns (like Form 1120) going forward until it's reinstated, and, more painfully for a volunteer group, donations made after the revocation date typically aren't tax-deductible to donors, and some state charity registrations or vendor contracts require exempt status. Reinstatement usually means filing Form 1023 (or 1023-EZ if eligible) again, sometimes with a reasonable cause statement, and possibly paying a filing fee to reapply. The IRS maintains a searchable Tax Exempt Organization Search where you can check whether an EIN currently shows as revoked ^[8].

what is a treasurer?

A treasurer is the person (usually a volunteer, in a booster club or PTO) responsible for tracking, safeguarding, and reporting the organization's money. That includes bank accounts, cash collected at events, reimbursements, and the paperwork that proves where every dollar came from and went. In a small nonprofit, the treasurer is often the only person who touches every financial transaction, which is exactly why the role carries real legal and fiduciary weight even when it's unpaid. State nonprofit corporation laws typically require officers, including treasurers, to act with the duty of care and duty of loyalty owed to the organization. This isn't a ceremonial title. If the books are wrong, the treasurer is usually the one who has to explain why, to the board, to parents, or to the IRS.

what does a treasurer do (what do treasurers do, day to day)?

The short version: a treasurer keeps the money organized, keeps it safe, and keeps the paper trail intact so anyone can reconstruct what happened a year later. Concretely, that usually means: Tracking every deposit and expense in a ledger or simple accounting software, tied to receipts or invoices. Reconciling the bank statement every month against the internal ledger, more than glancing at the balance. Handling cash from fundraisers (concessions, raffles, car washes) with a two-person count and signed count sheet before it ever hits a bank deposit. Preparing a treasurer's report for board or membership meetings, showing income, expenses, and current balance. Filing the annual IRS return, whichever 990 variant applies, and any required state charity registration renewal. Maintaining records for at least the IRS-recommended retention periods, and handing over a clean, organized file to the next treasurer. None of this requires an accounting degree. It requires consistency, a habit of writing things down the same day, and a refusal to let cash sit around uncounted or undeposited for weeks.

what does a treasurer do in a club (what does a club treasurer do, what does a treasurer of a club do)?

A club treasurer, whether it's a booster club, PTO, robotics team, or rec league, does the same core job as any nonprofit treasurer, just at a smaller scale and usually with less institutional support. That's actually what makes it harder, not easier. In practice, a club treasurer typically: Opens and maintains the club's bank account (ideally requiring two signers for anything over a set dollar threshold). Collects and deposits dues, concession revenue, sponsorship checks, and raffle or fundraiser proceeds. Pays vendors, refs, venue rentals, and reimburses volunteers, with documentation for each payment. Budgets for the season or school year and reports variances to the board. Makes sure the club's IRS filing (990-N, 990-EZ, or full 990) gets done every single year, even in a "quiet" year with barely any activity. Checks whether the state requires a charitable solicitation registration renewal, especially if the club runs raffles, since many states treat raffles as regulated gaming separate from federal tax filing. A lot of clubs run into trouble not because someone stole money, but because three volunteer treasurers in a row assumed "the previous person handled the IRS stuff" and nobody actually filed for three straight years. That's the exact fact pattern that triggers automatic revocation ^[7].

does a small booster club or PTO really need to file if it has almost no money?

Yes, and this is worth repeating because it's the single most common mistake new treasurers make. There is no minimum revenue exemption from filing. A club that raised $600 in bake sale proceeds all year still normally has to file the 990-N e-postcard, assuming it's a recognized tax-exempt organization with an EIN ^[4]. The confusion usually comes from mixing up two different thresholds. One threshold decides which form you file (990-N vs. 990-EZ vs. full 990). A separate, unrelated set of rules governs whether you owe unrelated business income tax. Having low revenue affects which form is easiest to file. It does not exempt you from filing something. If your club has never applied for federal tax-exempt status at all, and is just an informal group with an EIN used for a bank account, that's a different, more urgent problem: you may be defaulting into taxable-entity status on any income, and you should talk to a tax professional or the IRS Exempt Organizations line about whether you need to file Form 1023 or 1023-EZ to formally seek exemption. Confirm your organization's exempt status and filing category directly with the IRS.

what records does a treasurer need to keep for the 990 filing?

The IRS generally recommends keeping records that support items reported on your return for as long as they may be needed to verify entries, and specifically suggests retaining records related to your exempt status and filings permanently in the case of things like your determination letter, and at least the period the return could be examined for routine transaction records . In practice, most experienced treasurers keep bank statements, deposit records, and receipts for at least 7 years, and keep the IRS determination letter, articles of incorporation, and bylaws forever. A practical retention list for a booster club or PTO treasurer: IRS determination letter and EIN confirmation letter: permanently. Articles of incorporation, bylaws, and amendments: permanently. Copies of filed 990/990-EZ/990-N confirmations: at least 7 years, ideally permanently since they're public documents anyway. Bank statements, canceled checks, deposit slips: at least 7 years. Cash count sheets and event settlement forms: at least 3 to 7 years. Board meeting minutes approving budgets or major expenditures: permanently, or at least as long as the org exists. Good record-keeping isn't just about the IRS. It's what makes the handoff to the next volunteer treasurer survivable instead of a nightmare.

how do state charity registration and raffle rules fit into all this?

Filing with the IRS is a federal requirement. Most states run a separate, parallel system for charitable organizations, often through the attorney general's office or a secretary of state charities division. Many states require nonprofits that solicit donations, run raffles, or hold charitable gaming events to register and file annual reports at the state level too, independent of the federal 990 . This catches booster clubs off guard constantly, especially ones that run a raffle as their main annual fundraiser. Raffles are typically regulated as a form of gaming under state law, separate from your federal tax-exempt status, and many states require a specific raffle or charitable gaming license or permit before you sell a single ticket. The rules on what counts as a raffle, what license is needed, and what reporting follows the event vary widely by state and change periodically, so confirm the current requirements with your state's charity regulator or attorney general's office before running one. Doing the federal 990 filing correctly does not automatically satisfy state charitable solicitation registration, and vice versa. Treasurers need to check both boxes separately, every year.

what if a booster club already lost its tax-exempt status?

First, check. Use the IRS Tax Exempt Organization Search tool to confirm whether your EIN is actually listed as auto-revoked ^[8]. Sometimes what feels like a crisis is actually just a missed 990-N that can be caught up before three years pass. If revocation has actually happened, the path back is generally reapplying for exemption, typically via Form 1023 or Form 1023-EZ if your organization qualifies based on size and type, sometimes along with a request for retroactive reinstatement if you can show reasonable cause for the filing failures ^[7]. There may be a user fee involved, and the process takes real time, often weeks to months depending on IRS processing volumes. This is exactly the kind of situation where getting organized matters more than getting fancy. A Form 990-N filing tracker, a clear filing calendar, and a written handoff packet for the next treasurer prevent the entire mess from happening again. That's the gap our $99 one-time State-Personalized Treasurer Kit is built to close: a filing calendar, checklist, and state-specific reminders so nobody accidentally lets three years slide by in silence.

quick comparison: 990-N vs 990-EZ vs full 990

	990-N	990-EZ	Full 990
Gross receipts	Normally $50,000 or less [4]	Under $200,000 (and assets under $500,000) [5]	$200,000+ or assets $500,000+ [5]
Filing format	Online e-postcard only	Paper or e-file, multi-page form	Paper or e-file, longest form
Financial detail required	None (just confirms eligibility)	Summary financials	Full financials, schedules
Typical filer	Small booster club, PTO, rec league	Mid-size club with steady fundraising	Larger nonprofit, school foundation
Public disclosure	Minimal	Moderate	Extensive	When gross receipts hover near a threshold, or the organization holds significant reserve funds even with modest annual activity, don't guess. Confirm the correct form with the IRS instructions for the current tax year, since dollar thresholds and form requirements are periodically updated.

Frequently asked questions

Do nonprofits file tax returns every year?

Yes, nearly all tax-exempt nonprofits have to file an annual return with the IRS every year, whether that's the full Form 990, the 990-EZ, or the 990-N e-postcard for smaller organizations. Churches and certain church-affiliated entities are exempt from this requirement ^[2]. Skipping three years in a row triggers automatic revocation of tax-exempt status ^[7].

What is Form 990?

Form 990 is the IRS's annual information return for tax-exempt organizations. It discloses revenue, expenses, executive compensation, and governance practices, and it's publicly available once filed ^[3]. Smaller organizations file simplified versions: the 990-EZ or, for the smallest, the 990-N e-postcard ^[4][5].

What is the 990 tax form used for?

It's used to report a tax-exempt organization's finances and activities to the IRS annually, essentially proving the organization is still operating within its exempt purpose. It's not a bill; most filers owe no tax with it, since exempt status generally means no income tax on mission-related revenue ^[3].

What is Form 990-N and who has to file it?

Form 990-N, the e-postcard, is for tax-exempt organizations whose gross receipts are normally $50,000 or less ^[4]. It's an online-only filing requiring basic identifying information, no financial detail. Even organizations with almost no annual income generally still have to file it.

What is a treasurer?

A treasurer is the officer responsible for an organization's money: tracking income and expenses, safeguarding funds, reconciling bank accounts, and reporting the organization's financial position to the board or membership. In small nonprofits it's usually an unpaid volunteer role with real fiduciary responsibility.

What does a treasurer do?

A treasurer records deposits and expenses, reconciles bank statements monthly, oversees cash handling at fundraisers, prepares financial reports for meetings, and makes sure required IRS and state filings (like the 990-N or state charity registration) get done on time every year.

What does a club treasurer do differently from a corporate treasurer?

A club treasurer (booster club, PTO, youth league) does the same core job, tracking money and filing required returns, but usually alone, without accounting staff, often handling significant cash from concessions or raffles. The stakes are the same: missed IRS filings still trigger automatic revocation after three years ^[7].

What happens if a nonprofit doesn't file its 990 for three years?

The IRS automatically revokes its tax-exempt status, effective on the filing due date of the third missed year, with no advance notice or hearing ^[7]. The organization then becomes taxable, donor contributions typically stop being deductible, and reinstatement requires reapplying for exemption.

How do I know if my nonprofit's tax-exempt status has been revoked?

Search your organization by name or EIN in the IRS Tax Exempt Organization Search tool, which lists organizations with automatically revoked exemption ^[8]. If listed, you'll generally need to reapply using Form 1023 or 1023-EZ, possibly requesting retroactive reinstatement for reasonable cause.

Does a nonprofit with no income still have to file a tax return?

Generally yes. If the organization holds recognized tax-exempt status and has an EIN, it normally still has to file the 990-N e-postcard even with $0 in gross receipts for the year, unless it qualifies for a specific exception like being a church ^[2][4].

Is Form 990 the same in every state?

Form 990 itself is a single federal IRS form used nationwide. But many states separately require charitable organizations to register and file annual reports with the state attorney general or secretary of state's charity office, on top of the federal 990 ^[10]. Confirm your specific state's requirements directly with that office.

Do booster clubs running raffles need a separate license?

In many states, yes. Raffles are typically regulated as charitable gaming under state law, separate from federal tax-exempt status, and often require their own permit or license before tickets are sold. Rules vary significantly by state, so confirm with your state's gaming or charity regulator before running one.

How long should a treasurer keep financial records?

Keep the IRS determination letter, bylaws, and articles of incorporation permanently. Keep bank statements, receipts, and filed 990 confirmations for at least 7 years. The IRS recommends retaining records as long as needed to verify items on a return, longer for governing documents ^[9].

Sources

1. IRS, Annual Exempt Organization Return: Who Must File: Most tax-exempt organizations are required to file an annual return
2. IRS, Form 990 Resources and Tools: Form 990 discloses revenue, expenses, and governance information for exempt organizations
3. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): 990-N is for organizations whose gross receipts are normally $50,000 or less
4. IRS, Form 990-EZ Instructions: 990-EZ eligibility thresholds based on gross receipts under $200,000 and total assets under $500,000
5. IRS, About Form 990-PF: Private foundations file Form 990-PF regardless of size
6. IRS, Automatic Revocation of Exemption: Failure to file required returns for three consecutive years results in automatic revocation of tax-exempt status
7. IRS, Tax Exempt Organization Search: Searchable tool to check if an organization's exemption has been automatically revoked
8. IRS, Recordkeeping for Tax-Exempt Organizations: IRS recordkeeping guidance for exempt organizations on retaining records supporting annual returns