Those interested in nonprofit management know that May 15, 2010 will be a sad day for thousands of nonprofit organizations that have forgotten to file their IRS Form 990 for the third year in a row. (Actually, the date in the problem is May 17, 2010, since the 15th falls on a Saturday this year.)

The purpose of this non-profit tip is not to inform you of the details of the federal regulation that has resulted in this reality (you can research it via the internet), but rather, the idea here is to give you a simple idea and ‘fix’ easy-to-follow file that will keep you safe and sound, every year, by your Form 990 filing deadline.

Tip: Use whatever ‘reminder’ mechanisms are available to you to note the annual due date for filing the 990 for your non-profit organization.

If you use a pocket calendar, write it down! If you use Microsoft OUTLOOK, enter a reminder for the due date. Calendars and reminder features come in so many forms that there’s something for you, no matter your technology preference. Even if your nonprofit is large enough to have a staff member responsible for the 990, or even if you outsource the responsibility to a CPA, you should write it down! In the end, whether you’re the CEO or the Chairman of the Board, the ultimate responsibility for filing the ‘Number One Most Important IRS Document of the Year’ rests on YOUR shoulders!

The IRS guideline is simple and easy to remember, so you can quickly set up your reminder notice: The 990 is due every year on the 15th day of the fifth month after the end of your tax year.

For calendar year-end (December 31) accounting periods, the reporting date is May 15: the 5th month (May) and the 15th day (or the first business day after the 15th if it falls on a weekend like this year). If your accounting period is June 30, it’s still the same rule: the fifth month after the accounting period (November) and it’s still the 15th. This is pretty straightforward. There are options for two extension periods, but both still require you to request the extension (ie, take action) before your original filing date.

Because our organization, CEGA, believes in the importance of ethics, governance, and responsibility as a proactive tool to improve the image of nonprofit organizations, let me remind you of the importance of submitting your 990 on time. Remember that your nonprofit status (as a tax-exempt charity serving your community) is a privilege granted by the IRS. Instead of paying taxes and filing, say, a Form 1040 (as if filing your personal income taxes), your nonprofit must file a Form 990 annually. It’s the law. And, it is your responsibility. While everyone knows that April 15 is the magic deadline for your personal taxes, nonprofit organizations have variable deadlines related to their year-end accounting periods, making it too forgotten.

Recent news tells us that thousands of nonprofit organizations will lose their status because they forgot to file their 990 for three years in a row. Three years?! Good grievance!! I would say they deserve to lose that status: they didn’t keep their end of the deal. And again, based on our recommendations at CEGA, wouldn’t you rather your nonprofit be known as one that met its responsibilities and DID NOT forget to file a return? Doesn’t that say much about who you are?

Be proactive. Don’t trust your memory. Don’t trust anyone else. Take our advice: set a reminder, do it right now, for next year. I assure you that you, and your stakeholders, will be happy (and very proud) that you did.