Starting with accounting periods beginning on or after January 1, 2010, California now requires smaller tax-exempt organizations with normal annual gross receipts of $25,000 or less to electronically file an annual informational notice with the FTB (Form 199-N). Although there is no monetary penalty for failure to file the notice, any organization that fails to file for three consecutive years loses its California tax-exempt status.
Under existing law, the FTB may revoke an organization’s state tax-exempt status if the Internal Revenue Service suspends or revokes the organization’s tax-exempt status.
For more information on the new filing requirements, go to ftb.ca.gov and search for exempt organizations.
Planning to hold a raffle this year? Each California nonprofit organization that intends to conduct a raffle during a year must complete and submit a raffle registration form (CT-NRP-1) at least 60 days prior to the raffle, but no later than September 1. The registration period for conducting raffles is September 1 through August 31 annually.
Did you hold a raffle this year? Each California nonprofit organization is required to report on any raffles conducted during a year (September 1 through August 31) by September 1. For example, if you held your raffle on December 15, the report would be due by September 1 of the following year.
A charitable organization is required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75. Although it is a donor’s responsibility to obtain a written acknowledgement, an organization can assist by providing a timely, written statement containing the following information:
- Name of organization
- Amount of cash contribution
- Description (but not the value) of non-cash contribution
- Statement that no goods or services were provided by the organization in return for the contribution, if that was the case
- Description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution
Statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case
Are you doing everything possible to stay exempt? An IRS interactive web-based training program covering tax compliance issues confronted by small and mid-sized tax-exempt organizations is available to assist you. Check it out at www.stayexempt.org.
Did you know your organization’s Form 990 and 990-T returns must be made available for public inspection? Retain signed copies of the returns for three years from the date filed. Exempt organizations must also furnish copies of its exemption application and related documents to the public, if requested.