After completing each fiscal year, nonprofit organizations must comply with year-end reporting at both the state and federal levels. Failure to remain in compliance with these requirements can result in incurring penalty fees, revocation of tax-exempt status, and even having your corporation dissolved by the state.
86% of nonprofits surveyed in our research study reported needing help with annual compliance requirements. Our study showed that no matter the organization’s size, compliance provided consistent headaches. One nonprofit participant in our research reported spending 960 hours on compliance in their first year of operation!
There are two levels of annual compliance:
- Federal: Filing the 990 tax returns required for nonprofits.
- State: Filing a variation of the state documents required when forming.
Failure to remain in state or federal compliance faces severe penalties ranging from fines to revocation of tax-exempt status. While not as exciting as carrying out the nonprofit’s mission, annual compliance is extremely important.
Thankfully, BryteBridge specialists are well accustomed to federal and state reporting requirements and are ready to assist with your organization’s ongoing compliance needs.