It’s been a tough year for too many reasons to count. From virtual fundraising to online holiday events, nonprofit groups have shown their ability to adapt to a strenuous situation. But not all groups were able to continue when the pandemic hit.
Our support team has received a few inquiries around this topic and we wanted to clear the air for our blog community as well. The question is, even if your group didn’t have any activity in the past fiscal year, do you still need to file taxes?
The answer is yes. You must file a tax return. Why? One of the most important reasons for this is that if you don’t, you risk losing your tax-exempt status. Secondly, even if things were slow, there is still a chance some income could have been recorded (think interest income from your bank). Finally, this is a great exercise to get your organization back on track as things start to return to normal. If you have a new incoming Treasurer, this is a great exercise to get them involved and familiar with your organization.
Taxes are filed based on your financial year. Even if you are late, you should still file.
Check out this helpful knowledgebase article for other tips on getting your “paused” organization back on track within MoneyMinder.
Other tax articles from MoneyMinder: