Nonprofits

Ensure your tax documents are prepared. 

• ⬆️ UPLOAD an IRS form 990 or 990EZ 

• 🚫WE CANNOT ACCEPT a postcard 

• Ensure the EIN (Employer Identification Number) also known as the Federal Tax ID number, is viewable as it is required, as it is required, and should not be redacted 

• Include the organization Secretary of State registration number  

  Understanding Business-Like Revenue

  What is business-like revenue?  

  • Business-like revenue is income a nonprofit organization generated from activities that are central to the organization's mission and tax-exempt purpose. This is distinct from donations, gifts, or investment income. Needs to be reflected on the organization’s taxes 

  
  Examples of Business-Like Revenue:  

  • This could include membership fees at a nonprofit gym, tuition fees at a school/daycare, payments from patients for medical services at a nonprofit hospital, ticket sales and admission fees for events. 

    Business-like revenue is 🚫NOT: 

    • Grants, fundraising income, organization membership fees, etc.

      How to calculate (Business-Like Revenue / Total Revenue) x 100

    • 30% of the total revenue needs to be program service revenue 

    • Or 10% of the total revenue needs to be business-like revenue and they need to maintain in-person operations 

    You can see DEEDs guidelines around business-like revenue here if you would more information: 🔗 https://mn.gov/deed/business/financing-business/deed-programs/promise-grant/  

    You can check the status of your taxes here: 🔗https://www.irs.gov/

    Reach out to your tax accountant if you have questions regarding your tax information.