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Understanding Non-Profit Financial Reporting Requirements in New York State

Non-profit organizations in New York State must adhere to strict financial reporting requirements to maintain compliance, transparency, and credibility. These regulations ensure that charitable organizations operate ethically, manage funds responsibly, and provide accurate financial disclosures to stakeholders, donors, and government agencies.

There are three primary types of financial reporting non-profit organizations must complete in New York. Read on to learn more about the New York State reporting your non-profit entity may be required to complete.

NYS Non-Profit Annual Financial Reporting (CHAR500 Form)

All charitable organizations operating in New York must file an Annual Financial Report (CHAR500) with the New York State Attorney General’s Charities Bureau. This requirement applies to any organization that solicits donations, holds charitable assets, or conducts charitable activities within the state.

The following are answers to frequently asked questions about the requirements for the Annual Financial Report (CHAR500) filing:

  1. Who must file? Non-profits registered under Article -A of the Executive Law or the Estates, Powers & Trusts Law
  2. What documents are needed? IRS Form 990, 990-EZ, or 990-PF, audited financial statements (if revenue exceeds $1 million), Schedule B (if applicable)
  3. What is the filing deadline? Typically 4.5 months after the close of the fiscal year, with extensions available
  4. Are there any exemptions? Certain religious organizations and small charities may be exempt

Failure to file CHAR500 can result in penalties, loss of tax-exempt status, and legal consequences. Non-profits should ensure timely submission to maintain compliance.

Funding and Financial Disclosure Reports for NYS Non-Profits

Non-profits engaged in advocacy or public communications may need to file additional financial reports with the New York State Department of State. These reports ensure transparency in funding sources and expenditures related to lobbying or public influence efforts.

Fast facts about non-profit funding disclosure reports in New York State:

  1. Who must file the funding disclosure reports?501(c)(3) organizations that provide in-kind donations (e.g., office space, staff time) to 501(c)(4) advocacy groups
  2. What is the reporting threshold for non-profits? The non-profit funding disclosure report must be filed If donations exceed $10,000 in a reporting period.
  3. What documents are required?The annual financial report and Schedule B detailing contributions must be filed.
  4. What is the filing deadline?The filing deadline is within 30 days of the close of the reporting period.

Financial disclosure reports are required for certain non-profit organizations including:

  • 501(c)(4) organizations that spend over $10,000 on public communications advocating for or against legislation or government actions.
  • These organizations must file an annual financial report and a breakdown of expenditures related to their advocacy.
  • The filing deadline is within 30 days of the close of the reporting period.

These reports help prevent undisclosed financial influence in legislative matters and ensure accountability.

IRS Tax Filings (Form 990 Series) for New York State Non-Profits

Non-profits must also comply with federal tax reporting requirements by filing IRS Form 990, which provides financial transparency and ensures tax-exempt organizations operate within legal guidelines. There are four different Form 990s for non-profits. These include:

  • Form 990:Required for non-profits with gross receipts over $200,000 or assets over $500,000
  • Form 990-EZ:Simplified version for organizations with gross receipts under $200,000
  • Form 990-N (e-Postcard):For small non-profits with gross receipts under $50,000
  • Form 990-PF:Required for private foundations

Important details for NYS non-profits filing Form 990:

  • The deadline for NYS non-profit Form 990 filing is May 15 or 4.5 months after fiscal year-end.
  • Public disclosure is necessary. Non-profits must make Form 990 available to the public.
  • Penalties for non-compliance include fines for late filing and loss of tax-exempt status as well as IRS audits.

Proper IRS reporting ensures financial accountability and helps donors assess an organization’s fiscal health.

Best Practices for Financial Compliance for NYS Non-Profit Organizations

To maintain compliance and avoid penalties, non-profits should implement strong financial management practices, including:

  • Accurate recordkeeping to maintain detailed financial records, including revenue, expenses, and donor contributions.
  • Professional accounting support by working with a CPA specialized in NYS non-profits to ensure compliance with state and federal regulations.
  • Regular audits should be conducted internally to verify financial accuracy and prevent discrepancies.

Contact MEDOWS CPA for assistance with New York State non-profit financial reporting

Financial reporting is a critical responsibility for non-profits in New York State. By adhering to the New York State Attorney General’s Charities Bureau’s CHAR500 filing requirements, funding disclosure rules, and IRS tax obligations, non-profit organizations can maintain transparency, build donor trust, and ensure long-term sustainability. Non-profits should prioritize timely and accurate financial reporting to avoid penalties and uphold their mission effectively. For assistance with these filings contact us.