What is the difference between Form 990, 990-EZ and the 990 postcard?
Form 990 is the annual information return tax-exempt organizations file with the IRS. There are three versions, and which one your nonprofit files depends on your size, measured by gross receipts and total assets.
Form 990-N, commonly called the e-postcard, is the simplest. It’s for small nonprofits with gross receipts of $50,000 or less in a normal year. The filing is short, just eight basic questions submitted electronically through the IRS website. No financial statements, no schedules, no narrative. Its purpose is to confirm the organization still exists and still qualifies for tax-exempt status.
Form 990-EZ is the middle version. Organizations with gross receipts under $200,000 and total assets under $500,000 can use it. It asks for a summary of revenue, expenses, and a basic balance sheet, plus schedules covering activities like fundraising, grants, or compensation depending on what the organization did during the year.
Form 990 is the full return. Nonprofits with gross receipts of $200,000 or more, or total assets of $500,000 or more, must file it. The full version covers governance, board composition, executive compensation, program accomplishments, and detailed financial information. Most additional schedules attach to this version, and the depth of disclosure is significantly greater than the EZ.
Private foundations file Form 990-PF regardless of size. That’s a separate form with its own set of rules around investment income, grants, and minimum distribution requirements.
The version matters because all 990 filings are public. Donors, grantmakers, and sites like GuideStar pull information directly from them. A 990 that misclassifies activities or skips schedules can hurt fundraising and raise questions about governance. The right version, prepared correctly, communicates that the organization runs well.
One thing worth knowing: missing three consecutive years of filings causes automatic loss of tax-exempt status. Getting reinstated means reapplying and filing back returns, which is far more expensive and disruptive than staying current. We work with nonprofits to confirm the right form each year based on actual financial activity and file on time.
If you’re not sure which version applies to your organization, or you need help getting current after missed filings, GMJ offers bookkeeping, tax and consulting services for nonprofits across the Carolinas. We can review your numbers, identify the correct filing version, and prepare the return.
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