New Year, new opportunities to ensure your Massachusetts nonprofit stays compliant and future-ready! From annual filing thresholds to maintaining tax-exempt status, start the year off right with our guide to navigating the rules for charitable organizations in 2025.

Annual filing requirements- All MA nonprofits are required to file an annual report with the Attorney General’s Nonprofit and Public Charities Division. Every public charity organized or operating in Massachusetts (MA), or soliciting funds in MA is required to file Form PC with the Nonprofit Organizations/Public Charities Division. Effective September 1, 2023, all nonprofits are required to e-file Form PC, as we reported in our blog, MA Charities Now Required to E-file Form PC.

• Know the filing thresholds - MA nonprofits (organization) with a gross receipt and revenue of $25,000 or less (as reported on Form PC, page 2, line 5B) is not required to attach a federal return with the PC. Organizations with gross receipts and revenue greater than $25,000 must attach Form 990 or Form 990-EZ to Form PC. Form 990-N is not permitted to be filed with Form PC.
• In addition, if gross receipts and revenue for your organization exceeds $1,000,000, you must submit an audited financial statement prepared by an independent certified public accountant. If gross receipts and revenue is between $500,000 and $1,000,000, you must submit a reviewed financial statement prepared by an independent certified public accountant. If gross receipts and revenue is $500,000 or less, you can submit a compiled financial statement prepared by a CPA or a copy of your organization’s Form 990
  

Maintain tax-exempt status- Most nonprofits are required to provide information to the IRS under IRC reporting requirements to indicate that they continue to be tax-exempt. Public charities typically file one of the following forms annually, depending on their financial activity:

• Form 990 – Return of Organization Exempt from Income Tax (for larger organizations with gross receipts generally over $200,000 or total assets over $500,000).
• Form 990-EZ – Short Form Return of Organization Exempt from Income Tax (for smaller organizations with gross receipts less than $200,000 and total assets less than $500,000).
• Form 990-N (e-Postcard) – Electronic Notice for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ (for very small organizations with gross receipts normally $50,000 or less).

Maintain strong governance practices- Make sure you maintain robust policies, including conflict of interest and whistleblower policies, and always document board meeting minutes.

Register & Renew your fundraising status- Before solicitating donations in MA, nonprofits are required to register and renew your status annually with the Attorney General’s office. You don’t want to be tacked with penalties for noncompliance!