University of San Diego’s Caster Family Center for Nonprofit Research California Nonprofit Compliance Quick Check Major Legal Requirements for Most* California Registered 501(c)(3) entities ANNUALLY Nonprofits with Revenue or Assets $25,000 or more Internal Revenue Service: File form 990, 990-PF or 990EZ State Attorney General: File Annual Registration Renewal Fee Report (Form RRF-1) to office of Charitable Trusts. A fee will be assessed based on budget. Nonprofits with gross revenue or assets over $25,000 must include IRS form 990, 990-PF or 990EZ with this filing. California Franchise Tax Board: form 199 and or form 109. Note: not all organizations are required to file with these forms. Please visit the website listed in the toolbox for a detailed explanation of who must file. Form 1099 for any non-employee service providers filed with Federal and State Governments Nonprofits with Fiscal Year Gross Revenues of over $2,000,000 In addition to the requirements listed above, organizations at this level are subject to certain rules under The Nonprofit Integrity Act of 2004 (California SB 1262). Those requirements include: Preparing annual financial statements in accordance with the G.A.A.P.1 (Generally Accepted Accounting Principles) which will in turn be audited by an independent auditor. Mandatory creation of an “Audit Committee” CEO/CFO Compensation. The Board of Directors must ensure that compensation for the CEO, COO, and CFO of the nonprofit is “just and reasonable” Nonprofits With Employees W-2 Forms Filed by the employer with Federal and State Governments Quarterly Federal employment tax deposits to the IRS (F.I.C.A) Quarterly employment deposits to the California Employment Development Department.
*This list is a compilation of the most usual filing and reporting requirements for California charities. It is by no means exhaustive and organizations are strongly encouraged to familiarize themselves with all aspects of reporting that may or may not be unique to their specific organizations.