WARNING: Reasons For Filing A 990

Filing a Form 990 is important for any tax-exempt organization in the United States, as it is the annual information return that must be filed with the Internal Revenue Service (IRS) to maintain tax-exempt status. While the 990 form  looks like a tax return, it is not, the form 990 is  an information return that must be completed each year.

 Here are some of the key reasons why filing a 990 is important:

1. Compliance with tax law: Filing a Form 990 is required by the IRS for tax-exempt organizations, and failure to file can result in penalties and potential loss of tax-exempt status..
2. Transparency: The Form 990 is a public document that provides information about the organization's finances, governance, and activities. This transparency is important to maintain public trust and confidence in the organization.
3. Fundraising: Many donors and grant-making organizations require a copy of an organization's Form 990 before they will consider giving a donation. Filing a complete and accurate Form 990 can help demonstrate to potential donors that the organization is a responsible steward of funds.
4. Board oversight: The Form 990 requires information about the organization's governing board, including their compensation and conflicts of interest. This can help ensure that the board is fulfilling its oversight responsibilities and acting in the best interest of the organization.
5. Compliance: The Form 990 helps ensure that the organization is complying with applicable tax laws, including rules around lobbying and political activity. This can help avoid potential legal issues and maintain the organization's tax-exempt status.

Overall, filing a Form 990 is an important part of maintaining the legal and financial health of a tax-exempt organization. It helps ensure compliance with tax law, maintain transparency and accountability, and support fundraising and board oversight