Form 990-EZ: Who Files and How to Complete It

Form 990-EZ is the mid-tier annual information return for tax-exempt organizations. It provides more detail than the 990-N e-Postcard but is significantly simpler than the full Form 990. For many small to mid-size nonprofits, it is the right balance between compliance and effort.

Who Files Form 990-EZ

Your organization qualifies for Form 990-EZ if BOTH conditions are met:

Gross receipts are less than $200,000 for the tax year

Total assets are less than $500,000 at the end of the tax year

If either threshold is exceeded, you must file the full Form 990. If gross receipts are normally $50,000 or less, you may file the simpler 990-N instead.

Organizations that CANNOT file 990-EZ regardless of size:

• Private foundations (file 990-PF)
• Section 509(a)(3) supporting organizations
• Section 527 political organizations

Section-by-Section Guide

Part I: Revenue, Expenses, and Changes in Net Assets

Report all revenue (contributions, program service revenue, investment income, other), all expenses (broken into program, management/general, and fundraising), and calculate the change in net assets. This is essentially a condensed income statement.

Part II: Balance Sheet

Total assets, liabilities, and net assets at the beginning and end of the year. Keep this consistent with your accounting records.

Part III: Statement of Program Service Accomplishments

Describe your three largest programs by expense. For each: describe what the program does, who it serves, and what it achieved. Include quantitative measures when possible.

This section matters more than you think. Funders read it. Donors check it on Candid. Write it with the same care you would write a grant report.

Part IV: List of Officers, Directors, Trustees, and Key Employees

Report name, title, hours per week, and compensation for each. Even if compensation is zero, list all board members.

Part V: Other Information

A series of yes/no questions about governance, policies, and activities. Questions cover: changes to organizing documents, activities not previously reported, termination or dissolution, and significant changes in activities.

Part VI: Section 501(c)(3) Organizations Only

Questions about lobbying activity, political campaign activity, public charity status, and whether you made grants to organizations or individuals.

Common Mistakes

Wrong form. Filing 990-EZ when you exceeded the thresholds requires refiling the full 990.

Incomplete officer list. Every board member must be listed, even if unpaid and working zero hours. Report zero compensation, not blank.

Weak Part III. "We provided services to the community" tells a funder nothing. Quantify: "We provided after-school tutoring to 120 students across 3 sites, with 87% improving at least one grade level."

Misallocated expenses. If all expenses are listed under program services, it looks like you are hiding overhead. Honest functional allocation is expected.

Inconsistency with prior years. Dramatic unexplained changes in revenue, expenses, or officer compensation trigger IRS attention. Use Schedule O to explain material changes.

When to Upgrade to Full Form 990

Beyond the mandatory thresholds ($200K revenue or $500K assets), consider filing the full 990 voluntarily when:

• You are applying for significant grants (many foundations prefer the full 990)
• Your organization is growing and will likely exceed thresholds soon
• You want to demonstrate maximum transparency
• Your financial situation is complex (multiple programs, restricted funds, investment portfolios)

See our Form 990 filing guide for comprehensive guidance on the full return.

Tangible Takeaway

If you file 990-EZ, invest 30 minutes in Part III. Write specific, quantified program descriptions that a funder could read and understand your impact. This single improvement transforms your 990-EZ from a compliance obligation into a fundraising asset. Example: instead of "youth development programs," write "provided 240 hours of STEM mentoring to 45 high school students, with 91% graduating on time and 73% enrolling in post-secondary education."

Frequently Asked Questions

Can I file 990-EZ electronically? Yes. The IRS accepts electronic filing through approved e-file providers. Many CPA firms file electronically.

What if we filed the wrong form? File the correct form as soon as possible. Contact the IRS Exempt Organizations line (877-829-5500) for guidance on your specific situation.

Do we need a CPA for 990-EZ? Not required, but recommended for first-time filers or organizations with complex finances. A CPA familiar with nonprofit returns typically charges $500-$2,500 for 990-EZ preparation.

How long does preparation take? With organized records, an experienced preparer can complete a 990-EZ in 4-8 hours. Without organized records, significantly longer.

Is 990-EZ public? Yes. Like the full 990, Form 990-EZ is a public document available on Candid and through the IRS.

What schedules might we need to attach? Common attachments: Schedule A (public charity status), Schedule B (contributor information -- not public), Schedule G (supplemental information regarding fundraising), Schedule O (supplemental information).

About the Author

Drew Giddings is the Founder and Principal Consultant of Giddings Consulting Group, with more than 30 years of experience in organizational development and strategic planning.

Contact Giddings Consulting Group to discuss nonprofit compliance, financial management, or organizational development.