Staying Compliant: IRS 501(c)(3) Compliance and Annual Filings

Maintaining tax-exempt status under Section 501(c)(3) of the Internal Revenue Code is essential for charitable organizations—but with that privilege comes a set of important compliance obligations. Failure to meet these can result in penalties, public scrutiny, or loss of tax-exempt status.

Here are the key compliance responsibilities every 501(c)(3) organization must keep in mind:

Annual IRS Filing Requirements

Most tax-exempt organizations must file one of three versions of IRS Form 990:

• Form 990-N (e-Postcard) – For organizations with gross receipts normally ≤ $50,000
• Form 990-EZ – For organizations with gross receipts < $200,000 and assets < $500,000
• Form 990 – For organizations with gross receipts ≥ $200,000 or assets ≥ $500,000

Operational and Purpose Compliance

To retain 501(c)(3) status, organizations must:

• Operate exclusively for charitable, religious, educational, or other exempt purposes
• Avoid private inurement—no earnings may benefit private individuals or insiders
• Refrain from substantial lobbying or any political campaign activity

Any deviation from the stated purpose (as defined in your IRS Form 1023 application) could put your exemption at risk.

Public Disclosure Requirements

501(c)(3)s must make the following documents available to the public upon request:

• IRS Form 1023 (Application for Exemption)
• IRS Determination Letter
• A general requirement is the three most recent annual Form 990 filings

Many organizations post these online proactively to promote transparency and donor confidence.

Need Help?

At Oberman Law Firm, we advise non-profits on formation, compliance, governance, and IRS audits.