Hi Carol,
Thanks to your wonderful services in the past we have gone from a ministry under a church to an informal non profit support group within the community. Thanks so much for what you do for homeschool groups!
I was just reading through the list of FAQ’s and have one that has a little twist to what is already there about EIN’s so I thought I would run it past you
As the current director (board leader), I had been the person to apply for the EIN for our group. I am nearing my finish on the board and we will have new board leaders. Do we have to have a new EIN issued? I know this current one was opened with my name as the responsible party, so I don’t know if that would “tie” me to the non profit for any thing down the road if I am no longer on the board?
Thanks so much for your help and/or direction.
Blessings,
Shawna B, CA
Shawna,
Thank you for your kind words. It was my pleasure. You do not have to apply for a new EIN just because of a switch in officers. Nonprofits change leadership frequently. You can have your name on the EIN replaced with the new leader by filling out IRS Form 8822-B
If you are a 501c3 tax exempt organization with more than $50,000 in gross revenues annually, you should be filing the annual form 990-EZ or 990 with the IRS. On the form 990-EZ and 990, you list the new officers’ names.
If your organization makes less than $50,000 per year then you should be filing the 990-N, an electronic postcard, with the IRS. The 990-N requests only the name of the “principle officer” not the entire board.
For more information on the 990-N, visit the IRS website.
For more information on running a board, you can see my resource board member manual or my webinar on tax filings for homeschool nonprofits.
Carol Topp, CPA
HomeschoolCPA.com
We are hesitant about linking personal social security numbers to the group EIN. What legal ramifications does putting personal ssn info on the group form have for that individual – after reading the comments about needing to operate with a group account and not out of personal accounts. I do realize the IRS needs a way to contact us, but not having a background in accounting, I wasn’t sure why the ssn was needed on the form. Thanks in advance. Tasha
Any leader, officer or director of a nonprofit has some responsibilities. As a guideline, your board should remember their fiduciary duty (duty of care and duty of loyalty) to manage the organization and its funds within the purpose/mission of the organization in mind and not for private gain or benefit. The board’s job is to govern the organization, be responsible for the management of funds, and be responsible for its programs. Those are the “legal ramifications” of leadership.
You asked a good question and my answer is rather vague. I think I’ll write a separate blog post about board responsibilities.
Carol Topp, CPA