For many tax-exempt organizations, May 15 is one of the most important compliance deadlines of the year. Nonprofits operating on a calendar-year basis are required to file their annual IRS information return by this date to maintain good standing and avoid costly penalties.
As the deadline approaches, nonprofit leaders should focus on more than just submitting Form 990. This is also the perfect time to review governance practices, financial records, donor reporting, fundraising compliance, and organizational transparency.
Below are key topics every tax-exempt organization should pay attention to before May 15.
1. Filing Form 990 on Time
One of the biggest responsibilities for tax-exempt organizations is filing the correct annual return with the IRS.
Depending on your organization’s gross receipts and total assets, you may be required to file:
- Form 990
- Form 990-EZ
- Form 990-N
- Form 990-PF for private foundations
Failing to file for three consecutive years can automatically revoke your tax-exempt status. Even organizations with little or no activity are generally still required to file.
Before filing, organizations should review:
- Revenue totals
- Grants and donations received
- Officer compensation
- Program service accomplishments
- Fundraising activity
- Governance disclosures
Accuracy matters because Form 990 is a public document that donors, grantors, and state agencies may review.
2. Reviewing Financial Records Before Filing
Many nonprofit filing delays happen because bookkeeping records are incomplete or inaccurate.
Before May 15, organizations should make sure they have:
- Profit & Loss Statements
- Balance Sheets
- Donation records
- Bank statements
- Payroll reports
- Expense documentation
- Grant income tracking
- Contractor payment records
Organizations should also confirm whether assets such as computers, equipment, or vehicles are still in use if depreciation has been reported in prior years.
Clean financial records help reduce errors and improve compliance.
3. State Charitable Registration Compliance
Many nonprofits focus only on federal filing requirements and forget about state charitable registration rules.
If your organization solicits donations online, through social media, email campaigns, fundraising platforms, or events, you may also have state registration obligations.
Organizations should review:
- Annual renewal deadlines
- State fundraising registrations
- Charitable solicitation requirements
- Gaming or raffle licenses
- Financial report submission requirements
This is especially important for nonprofits fundraising across multiple states.
4. Governance Policies and Internal Controls
The IRS closely reviews governance practices when evaluating nonprofit compliance.
Ahead of May 15, organizations should confirm they have updated:
- Conflict of Interest Policies
- Whistleblower Policies
- Document Retention Policies
- Expense Reimbursement Procedures
- Board Meeting Minutes
- Internal Financial Controls
Strong governance helps protect the organization and demonstrates accountability to donors and regulators.
5. Proper Documentation of Donations
Nonprofits must maintain proper documentation for contributions received throughout the year.
Organizations should ensure they have:
- Donation acknowledgment letters
- Records of restricted contributions
- Grant agreements
- In-kind donation documentation
- Sponsorship agreements
Failure to maintain proper records can create issues during audits and may affect donor deductions.
6. Reporting Fundraising Activities Correctly
Fundraising income must be properly reported on Form 990.
This includes:
- Special events
- Ticket sales
- Sponsorships
- Online fundraising campaigns
- Crowdfunding income
- Merchandise sales
- Gaming and raffle proceeds
Organizations should also track related expenses connected to fundraising activities to ensure accurate reporting.
7. Reviewing Independent Contractors and Payroll
Nonprofits often overlook payroll compliance and contractor reporting requirements.
Before filing, organizations should verify:
- W-2 wages were properly reported
- Payroll tax filings were submitted
- 1099-NEC forms were issued when required
- Worker classifications are correct
Misclassifying workers can create serious tax and compliance issues.
8. Preparing for Public Transparency
Form 990 is publicly accessible and often reviewed by:
- Donors
- Grant providers
- Media outlets
- State regulators
- Potential board members
Organizations should review the return carefully before submission to ensure it accurately reflects the mission, programs, and financial activity of the organization.
Transparency builds trust and strengthens credibility.
May 15 is more than just a filing deadline for tax-exempt organizations. It is an opportunity to review compliance, strengthen governance, improve financial accuracy, and prepare for long-term sustainability.
Organizations that stay proactive throughout the year are better positioned to maintain their exempt status, secure funding opportunities, and continue serving their communities effectively.
If your organization needs assistance with nonprofit tax filings, compliance reviews, governance support, or Form 990 preparation, working with an experienced nonprofit tax professional can help ensure your organization stays compliant and organized year-round.
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