Accounting for Non-Profit Organizations
A tax-exempt organization still files. Form 990 is an annual information return that is public, and it is read by donors, grantmakers, and regulators as a statement of how the organization is run. Blue Sage prepares the 990, maintains the functional expense allocation behind it, and keeps restricted fund accounting straight.
What we handle
- Form 990, 990-EZ, or 990-N preparation and filing
- Functional expense allocation across program, management, and fundraising
- Restricted and unrestricted fund accounting
- New York State charitable registration filings
- Unrelated business income analysis and Form 990-T
- Board-ready monthly financial statements
Who this is for
Charities, foundations, religious and community organizations, and associations — from all-volunteer groups to organizations with staff and grant funding.
The 990 is a public document and increasingly a marketing one. Grantmakers read the functional expense split before they read the narrative, which means how expenses are allocated between program and overhead has consequences beyond the filing itself.
Deadlines and rules worth knowing
| Item | What applies |
|---|---|
| Which form | Depends on gross receipts and total assets. Smaller organizations may file 990-EZ or the 990-N electronic notice. |
| Due date | The 15th day of the 5th month after the fiscal year end — May 15 for a calendar-year organization |
| Losing exemption | Failing to file for three consecutive years results in automatic revocation of tax-exempt status |
| Functional expenses | Must be split between program services, management and general, and fundraising |
| Unrelated business income | Income from activity unrelated to the exempt purpose is taxable and reported on Form 990-T |
| State registration | New York requires separate charitable registration and annual filing, distinct from the federal 990 |
How we work
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Review what exists
We read last year’s return and whatever records you have. Most of what needs fixing is visible quickly.
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Fixed quote in writing
Scope and price before anything starts, counting entities, states, and any cleanup needed.
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File and maintain
Returns prepared and filed, notices answered, and a projection before year end.
Questions
Does a non-profit have to file a tax return?
Yes. Most tax-exempt organizations file an annual Form 990, 990-EZ, or 990-N depending on their size. It is an information return rather than a tax return in most cases, but filing is mandatory, and failing to file for three consecutive years causes automatic loss of tax-exempt status.
What is unrelated business income?
Income from a trade or business regularly carried on that is not substantially related to the organization's exempt purpose. It is taxable and reported on Form 990-T. Common examples include advertising revenue and certain rental or service income, and the analysis is fact-specific rather than obvious.
Last reviewed 11 September 2026 by Fahadun Nabi, Founder, Blue Sage Tax and Accounting Inc.. General information, not advice for your specific situation.
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Talk it through before the deadline, not after.
A free consultation call, no obligation, and a fixed quote if you want to go further.