Form 990

For clubs who already in the CGCI Group Exemption program...

What is a Form 990?

The IRS Form 990 is titled "Return of Organization Exempt From Income Tax." It is submitted by tax-exempt organizations and non-profit organizations to provide the Internal Revenue Service with annual financial information. The Form 990 must be filed with the IRS annually if branch gross income exceeds $25,000. Clubs with less than $25,000 in annual recepts are not required to file a 990. However, when a club is accepted into the Group Exemption porgram, the IRS automatically sends a Form 990. If your club receives a Form 990 from the IRS and it has not earned over $25,000, you should return the Form without filling in any figures but stating that club earnings are under the minimum.

The Form 990 provides the public with financial information about a given organization, and is often the only source of such information. It is also used by government agencies to prevent organizations from abusing their tax-exempt status.

Public Inspection IRC 6104(d) regulations state that an organization must provide copies of its three most recent Form 990s to anyone who requests them, whether in person, by mail, fax, or e-mail. Additionally, requests may be made via the IRS using Form 4506-A, and PDF copies can often be found online on sites such as Foundation Center's 990 Finder and Guidestar.org.

Changes in regarding the Form 990 starting in 2008.
What is the "e-Postcard" and what must we do with it?

The IRS announced in July,2006 that it would be sending educational letters to more than 650,000 small tax-exempt organizations that they may be required to submit a new annual notice, Form 990-N, “Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ.” These letters are to be sent between July and December 2007, and your club/district is likely to receive one.

Previously, tax-exempt organizations with gross receipts of $25,000 or less were not required to submit information returns. There has been a law change, however, and the e-Postcards will become mandatory for year 2008. The IRS intends to have an option available for free electronic submission of the e-Postcard.

“The new e-Postcard reporting requirement is simple and straightforward, but organizations shouldn’t ignore it, or they risk losing their tax-exempt status,” states Lois G. Lerner, the director of the IRS Exempt Organizations Division. An organization which fails to meet its annual reporting requirement for three consecutive years will automatically lose its tax-exempt status.

Please be alert for this educational letter and the ensuing e-Postcards. If your organization receives one, it will be sent to the President or Treasurer who was listed on your exemption renewal application in early 2007.

If you have any questions about this, please contact George Perko or Maryanne Lucas.

Copyright 1998-2008 California Garden Clubs, Inc.
... the non-profit federation of garden clubs in California representing more than 22,000 California gardeners.
For problems with this website, please contact webmaster@cagardenclubs.org