Non-Profit Regulations Guide
A plain-language overview of rules most U.S. 501(c)(3) nonprofits follow. It is general information, not legal or tax advice — confirm specifics with your advisor.
Annual Form 990 filing
Most tax-exempt organizations file Form 990, 990-EZ or 990-N each year, due the 15th day of the 5th month after fiscal year end (May 15 for calendar-year organizations), with a 6-month extension available via Form 8868. Failing to file for three consecutive years automatically revokes exemption.
Functional expenses
Form 990 filers report expenses by function: Program Services, Management & General, and Fundraising. Track every expense, payroll cost and allocation by these categories throughout the year.
Donor acknowledgments
Donors need a written acknowledgment for any single gift of $250 or more, received by the time they file. It must state the amount (or describe non-cash property) and whether goods or services were provided in return, with a good-faith estimate of their value.
Quid pro quo disclosures
When a donor pays more than $75 and receives goods or services in return (such as a gala dinner), you must give a written statement of the deductible portion.
Public inspection
Your three most recent Form 990s and your exemption application (Form 1023) and IRS determination letter must be available for public inspection on request.
Restricted and designated gifts
Gifts given for a specific purpose or time period must be tracked separately as net assets with donor restrictions and spent only for that purpose. Board-designated funds are different and remain unrestricted.
Grant compliance
Follow each award agreement's budget, reporting deadlines and allowable-cost rules. Organizations spending $1,000,000 or more in federal awards in a year require a Single Audit under Uniform Guidance (2 CFR 200).
Payroll filings
Employers deposit withholding on schedule, file Form 941 quarterly and Form 940 annually (501(c)(3)s are generally exempt from FUTA), and furnish W-2s and 1099-NECs by January 31. File state withholding and unemployment reports where required. Nevada has no state income tax but has unemployment insurance and Modified Business Tax rules.
Workers, contractors and volunteers
Classify workers correctly: employees receive W-2s; independent contractors receive 1099-NECs when paid $600 or more; volunteers are unpaid and should not receive wages. Misclassification can create back taxes and penalties.
Unrelated business income
Income from a regular trade or business not substantially related to your mission may be taxable. File Form 990-T when gross unrelated business income is $1,000 or more.
Political and lobbying limits
501(c)(3) organizations may not support or oppose candidates for public office. Lobbying must be an insubstantial part of activities, or within limits if you elect under section 501(h).
Private benefit and governance
Assets must serve the public purpose, not insiders. Maintain a conflict-of-interest policy, document board approval of executive compensation, and keep board minutes.
State requirements
Many states require charitable solicitation registration before fundraising, annual reports to the Secretary of State, and sales-tax exemption certificates where available. Check each state where you raise funds or operate.
Last updated November 2026. Questions: jazyconsults@gmail.com