Last updated 2026-07-25
TL;DR
Your organization can file Form 990-EZ if gross receipts are under $200,000 and total assets are under $500,000 for the tax year. Below $50,000 in gross receipts, you file the simpler 990-N postcard instead. Above either threshold, you need the full Form 990. Confirm current figures with the IRS before you file.
What is the 990-EZ threshold?
The 990-EZ threshold is the line the IRS draws between organizations small enough to file a short-form annual return and those that need the full Form 990. As of the current IRS instructions, you qualify to file Form 990-EZ if your organization's gross receipts for the tax year were less than $200,000 AND total assets at year end were less than $500,000 [1]. Both conditions have to be true. If your booster club brought in $180,000 this year but is sitting on $520,000 in a reserve fund from a past capital campaign, you're over the asset limit and have to file the full 990, not the EZ. Gross receipts, in the IRS's own words, means "the total amount the organization received from all sources during its annual accounting period, without subtracting any costs or expenses" [1]. That trips people up constantly. If your fall carnival grossed $40,000 in ticket and concession sales and cost you $25,000 to run, your gross receipts figure for this test is $40,000, not the $15,000 net you actually kept. There's a smaller tier below the 990-EZ too. Organizations with gross receipts normally $50,000 or less don't file the 990-EZ or the full 990 at all. They file the 990-N e-postcard instead, which just confirms the organization is still operating and still under the threshold [2].
What is Form 990?
Form 990 is the annual information return that most tax-exempt organizations file with the IRS to report income, expenses, activities, and governance to the public. It isn't a tax bill. Most 501(c)(3) organizations owe no federal income tax on the money they raise for exempt purposes, but the IRS still wants an annual accounting, and by law that return is open for public inspection [3]. Think of it as the price of admission for staying tax-exempt. The IRS uses it to check that a nonprofit is still operating consistent with its exempt purpose, that no individual is improperly benefiting from the organization's income, and that basic financial and governance information is available to donors, state regulators, and watchdog groups like GuideStar/Candid. There are four versions scaled to organization size: the 990-N (postcard, under $50,000 gross receipts), the 990-EZ (short form, under the $200,000/$500,000 thresholds), the full Form 990, and the 990-PF for private foundations regardless of size [1][2]. Most parent booster clubs, PTOs, and youth sports leagues fall somewhere between the 990-N and 990-EZ tiers.
What happens if I go over the 990-EZ threshold mid-year?
Nothing happens mid-year. The test applies at the end of your organization's tax year, using that year's actual gross receipts and year-end total assets. You don't switch forms partway through a fiscal year just because a big fundraiser pushed you over a number in March. What you do need to watch is the trend. If your booster club just had its best fundraising year ever and cleared $210,000 in gross receipts, you file the full Form 990 for that year, even if you've filed the 990-EZ or 990-N every year before. The form you file is determined year by year, not locked in based on your history. A lot of new treasurers get surprised by this after a capital campaign, a big raffle year, or a one-time bequest. If you're not sure which form applies for the year you're closing out, run the actual numbers against the current thresholds before you file anything, and when in doubt, confirm with the IRS or a preparer familiar with exempt organizations.
What's the difference between 990-N, 990-EZ, and full 990?
| 990-N (e-postcard) | Normally $50,000 or less | No asset test | 8 basic data fields, filed online, no financial detail | |
|---|---|---|---|---|
| 990-EZ | Less than $200,000 | Less than $500,000 | Summary financial statements, program service accomplishments, some compensation and governance disclosures | |
| Full Form 990 | $200,000 or more, or assets $500,000+ | $500,000 or more | Full financial statements, detailed schedules, compensation tables, governance section | A private foundation files Form 990-PF regardless of size; the receipts/assets test doesn't apply to them [1]. One thing worth flagging: even if your numbers put you in 990-N territory, you're allowed to file the 990-EZ or full 990 voluntarily. Some organizations do this because a grant funder or state charity regulator wants to see more financial detail than the postcard provides. It's not required, but it's not prohibited either. |
Here's how the three main tiers compare, based on current IRS guidance [1][2]: | Form | Gross receipts | Total assets | What it involves |
What does a treasurer do?
A treasurer is the person responsible for tracking every dollar that comes into and out of an organization, and for making sure the group's financial reporting obligations, including its annual IRS filing, actually get done. In a booster club, PTO, or youth sports league, that usually means one volunteer wearing a job that, in a larger organization, might be split across a bookkeeper, a controller, and a compliance officer. Day to day, a treasurer does the practical stuff: deposits fundraiser cash, reconciles the bank statement, pays vendors and reimburses parent volunteers, and keeps receipts organized enough that someone else could reconstruct the year if needed. Month to month, they report a balance sheet or budget update to the board. Year to year, the big one is figuring out which 990 to file and getting it filed on time, since missing three years in a row triggers automatic revocation of tax-exempt status [4]. A good treasurer also protects the organization from itself. Cash-handling controls, two signers on the bank account, a receipt for every expense reimbursement. None of that is glamorous, but it's the difference between an audit that takes an afternoon and one that takes a lawyer.
What do treasurers do in a club setting specifically?
In a club, PTO, or booster context, a treasurer's job breaks into three buckets: bookkeeping, reporting, and compliance. Bookkeeping is the daily grind. Recording every deposit and expense, keeping the checkbook or accounting software reconciled to the bank statement monthly, and holding onto receipts and invoices in case anyone (the board, a new treasurer, an IRS agent) ever needs to see them. For a club running a raffle or concession stand, this also means tracking cash separately from card and check income so nothing gets commingled or lost. Reporting means giving the board a clear, current picture of where the money stands. This is usually a simple monthly or quarterly statement: cash in, cash out, ending balance, maybe compared against a budget approved at the start of the year. Compliance is the part new treasurers underestimate. That includes the annual 990-N or 990-EZ filing, state charitable solicitation registration if your state requires it (many do for organizations soliciting public donations), and any raffle or gaming permit renewals if the club runs raffles. Skipping the federal filing for three consecutive years causes automatic revocation of the organization's tax-exempt status under section 6033(j) of the tax code [4], which is a much bigger headache to fix than filing on time would have been.
What does a club treasurer do that's different from a company bookkeeper?
A club treasurer usually does the bookkeeper's job and the compliance officer's job at the same time, with no staff and no budget for professional help. That's the real difference. A company bookkeeper reconciles accounts and produces reports for someone else to interpret and file. A club treasurer often has to be the one who decides which 990 to file, whether the state requires charitable registration, and whether a raffle needs a state gaming permit before tickets go on sale. There's rarely a CFO or in-house counsel to check the work. The stakes are also personal in a way corporate bookkeeping isn't. If a booster club's tax-exempt status gets auto-revoked because nobody filed for three years, the treasurer at the time is often the one fielding angry emails from the board and doing the reinstatement paperwork. The IRS does offer a streamlined retroactive reinstatement process for small organizations that missed filings (Rev. Proc. 2014-11 covers organizations eligible to file the 990-N or 990-EZ), but it still means real time and, often, real filing fees to fix [5].
What is a 990 tax form, exactly?
A 990 tax form is the annual public information return the IRS requires from most tax-exempt organizations, not an income tax return in the way a business or individual files one. Since most exempt organizations owe zero federal income tax, the 990 exists mainly for transparency and oversight, not revenue collection. The form (in its various sizes) reports revenue by source, expenses by category, a snapshot of assets and liabilities, a description of the organization's programs, and, for the EZ and full versions, some information about board members and any compensated officers. The full Form 990 also asks governance questions, like whether the board reviewed the form before filing, and whether the organization has a conflict-of-interest policy. Because 990s are public record, donors, grant-making foundations, and watchdog sites use them to check how an organization spends its money before deciding whether to give. A missing or years-late 990 is a red flag that can cost a booster club a grant or a corporate sponsorship, separate entirely from the IRS consequences.
What is a treasurer of a club responsible for if the club has never filed a 990 before?
If your club has never filed anything with the IRS, step one is figuring out whether it actually has, or needs, its own tax-exempt status and EIN, separate from a parent PTA, national booster association, or school district. Some booster clubs operate under a group exemption held by a national organization; others are standalone 501(c)(3) or 501(c)(4) entities and have to file on their own. Step two is figuring out how far back the gap goes. If it's been three consecutive years without a required 990-series filing, the organization's exempt status has likely already been automatically revoked under IRC section 6033(j), and you'd need to check the IRS Tax Exempt Organization Search to confirm current status [6]. Step three is reinstatement if needed, which usually means filing Form 1023 or 1023-EZ for reapplication, plus the past-due 990s, though small organizations that qualify to file 990-N or 990-EZ may use the streamlined process under Rev. Proc. 2014-11 [5]. This is exactly the kind of situation where confirming details with the IRS directly, or with a preparer experienced in exempt organizations, saves real money and stress. Don't guess your way through a reinstatement.
Do state filings follow the same thresholds as the federal 990-EZ?
No. State charitable solicitation registration and reporting requirements are separate from the federal 990 system and use their own thresholds, forms, and deadlines, which vary widely by state. Many states require any organization soliciting donations from the public to register with the state attorney general's office or secretary of state, regardless of whether the group qualifies for the 990-N federally. Some states exempt very small organizations or purely local groups like a single school's PTO; others don't carve out any exemption at all. A handful accept a copy of your federal 990 or 990-EZ as part of the state filing, which is one more reason to keep that federal form accurate and on time. Because these rules genuinely differ state to state and change periodically, the right move is to check your specific state's charity registration or attorney general's office directly rather than assume your neighboring booster club's rules apply to you.
How do I know which 990 form applies to my organization this year?
Pull your actual numbers for the year you're filing: total gross receipts (before subtracting any expenses) and total assets as of the last day of your fiscal year. Compare both against the current IRS thresholds before you pick a form [1][2]. If gross receipts are $50,000 or less, you're generally eligible for the 990-N. If receipts are under $200,000 and assets are under $500,000, the 990-EZ works. If you're over either number, plan on the full Form 990. This is also a good moment to check whether your state has a separate charitable registration renewal due around the same time, since treasurers often batch these together once a year. A state-personalized treasurer kit can help you keep the federal and state deadlines on one calendar instead of chasing them separately every spring, which is the single most common way small clubs end up filing late.
Frequently asked questions
What is the 990-EZ threshold for gross receipts?
An organization can file Form 990-EZ if its gross receipts for the tax year were less than $200,000 and its total assets at year end were less than $500,000, per current IRS instructions. Both conditions must be true; going over either one means you file the full Form 990 instead. Confirm the current figures with the IRS before filing, since thresholds have changed over time.
What is Form 990?
Form 990 is the annual public information return most tax-exempt organizations file with the IRS reporting income, expenses, assets, programs, and governance. It's not a tax bill; most exempt organizations owe no federal income tax. It exists mainly for public transparency and IRS oversight, and it's available for anyone to inspect once filed.
What does a treasurer do?
A treasurer tracks all money in and out of an organization, reconciles bank accounts, reports financial status to the board, and handles annual compliance filings including the IRS 990-series return. In small nonprofits like booster clubs and PTOs, one volunteer often handles bookkeeping, reporting, and filing duties that a larger organization would split across several roles.
What do treasurers do day to day versus year to year?
Day to day: deposit funds, pay approved expenses, keep receipts organized, and reconcile the bank account monthly. Year to year: prepare an annual budget or financial summary for the board, determine which 990 form applies based on gross receipts and assets, file it on time, and renew any state charitable registration or raffle permits the organization holds.
What is a 990 tax form used for?
A 990 tax form reports a tax-exempt organization's revenue, expenses, assets, and governance practices to the IRS annually. It's used by the IRS to confirm continued eligibility for exempt status, and by donors, grantmakers, and watchdog groups to evaluate how an organization spends money, since completed 990s are public record.
What is the difference between the 990, 990-EZ, and 990-N?
The 990-N (e-postcard) is for organizations with gross receipts normally $50,000 or less and requires only basic identifying data. The 990-EZ is for organizations under $200,000 in gross receipts and under $500,000 in total assets, requiring summary financials. The full Form 990 applies above those thresholds and requires detailed schedules and governance disclosures.
What does a club treasurer do that a company bookkeeper doesn't?
A club treasurer usually handles both the bookkeeping and the compliance decisions, like which 990 to file and whether state charity registration or a raffle permit is required, without staff support. A company bookkeeper typically just maintains records for someone else, like an accountant or controller, to interpret and file.
What happens if a booster club misses its 990 filing for three years?
Under IRC section 6033(j), an organization that fails to file a required 990-series return for three consecutive years automatically loses its tax-exempt status, with no separate IRS notice required beforehand. Reinstatement generally requires reapplying with Form 1023 or 1023-EZ, plus filing the missed returns, though small organizations may qualify for a streamlined process under Rev. Proc. 2014-11.
Can an organization file the 990-EZ voluntarily even if it qualifies for the 990-N?
Yes. An organization eligible for the 990-N postcard because gross receipts are normally $50,000 or less can choose to file the 990-EZ or full Form 990 instead. Some groups do this to satisfy a grant funder's request for more financial detail than the postcard provides, though it's not required.
Does gross receipts mean net income after expenses?
No. The IRS defines gross receipts as the total amount received from all sources during the year, without subtracting any costs or expenses. A fundraiser that brought in $50,000 in ticket sales counts as $50,000 in gross receipts even if it cost $30,000 to run and only netted $20,000.
Do state charity registration thresholds match the federal 990-EZ threshold?
No. State charitable solicitation registration requirements are separate from federal 990 thresholds and vary by state, with different exemption levels, forms, and deadlines. Confirm requirements directly with your state's charity registration office or attorney general, since some states require registration regardless of federal filing tier.
What is a private foundation's 990-EZ threshold?
There isn't one. Private foundations file Form 990-PF regardless of gross receipts or asset size; the gross receipts and total asset thresholds used for the 990-EZ and 990-N only apply to public charities and other exempt organizations, not private foundations.
Sources
- IRS, Instructions for Form 990-EZ: Gross receipts under $200,000 and total assets under $500,000 threshold for 990-EZ eligibility, and definition of gross receipts
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): 990-N eligibility for organizations with gross receipts normally $50,000 or less
- IRS, Exempt Organizations Annual Reporting Requirements - Form 990: Form 990 is the annual information return and is publicly available
- 26 U.S. Code section 6033(j): Automatic revocation of tax-exempt status for failing to file required returns for three consecutive years
- IRS, Rev. Proc. 2014-11: Streamlined retroactive reinstatement process for small organizations eligible to file 990-N or 990-EZ
- IRS, Tax Exempt Organization Search: Tool to confirm whether an organization's tax-exempt status has been revoked