Nonprofit Annual Filing Requirements by State
Alabama Nonprofit Annual Filing Requirements: A Step-by-Step Guide
At a Glance
Alabama nonprofits must file annual reports with both the IRS and the Alabama Attorney General to maintain compliance. The IRS Form 990 is due by the 15th day of the 5th month after your fiscal year ends, while the Alabama Attorney General annual report is due within 90 days of your fiscal year end. Missing these deadlines can result in penalties, loss of tax-exempt status, and the inability to legally solicit donations.
Introduction
Staying on top of your nonprofit annual filing requirements isn’t just good practice—it’s essential for your organization’s survival in Alabama. When you miss these critical deadlines, you risk hefty penalties, loss of tax-exempt status, and even involuntary dissolution of your organization.
However, navigating the maze of state and federal requirements doesn’t have to be overwhelming. With the right guidance, nonprofit compliance can be streamlined effectively. From IRS Form 990 submissions to Alabama Attorney General reports and fundraising registration renewals, each filing serves a specific purpose in maintaining your nonprofit’s good standing.
This step-by-step guide will walk you through all the annual filings needed to keep your Alabama nonprofit compliant and thriving. We’ll specifically focus on the ongoing requirements for established organizations—not initial formation filings or employment-related obligations. Let’s ensure your nonprofit remains in perfect standing year after year!
Understand Your Annual Filing Obligations
Annual filing obligations form the backbone of nonprofit compliance in Alabama. Maintaining proper documentation ensures transparency and preserves your organization’s legal status. Let’s explore why these filings matter and what happens when requirements aren’t met.
Why annual filings matter for nonprofits
Annual filings serve multiple crucial purposes beyond mere paperwork. First and foremost, they maintain your tax-exempt status at both federal and state levels. These documents also provide transparency to donors, government agencies, and the public about your organization’s financial health and activities.
For Alabama nonprofits, annual filings primarily consist of:
- IRS Form 990 series (federal requirement)
- Alabama Attorney General annual reports (state requirement)
- Charitable organization renewal statements
Your IRS Form 990 essentially functions as the “face of your organization” since it’s a public document containing financial information, compensation disclosures, governance details, and international transactions, as outlined in the Alabama Attorney General’s charitable organization renewal instructions. Furthermore, these filings allow regulatory agencies to verify your nonprofit continues operating according to its stated mission and charitable purpose.
What happens if you miss a deadline
Missing filing deadlines triggers a cascade of increasingly serious consequences. Initially, your organization will face financial penalties that grow steeper over time.
For federal filings, the IRS imposes:
- $20 per day for organizations with gross receipts of $1,000,000 or less (maximum $10,000 or 5% of gross receipts, whichever is less)
- $100 per day for organizations with gross receipts exceeding $1,000,000 (maximum $50,000)
Most alarmingly, failing to file required IRS forms for three consecutive years results in automatic revocation of your tax-exempt status. At the state level, if your charitable organization fails to complete annual renewal while continuing solicitation activities, the Alabama Attorney General (334-242-7300, alabamaag.gov) has the authority to assess fines and civil penalties for each violation.
Nevertheless, many jurisdictions recognize that delays happen and offer grace periods or extension options. Alabama allows you to request a 180-day filing extension through your registration profile. Missing deadlines doesn’t necessarily mean immediate legal trouble, but it certainly puts your registration status at risk.
Who is responsible for filing
Ultimately, your board of directors bears collective responsibility for ensuring timely filings. Although day-to-day preparation may fall to your treasurer, executive director, or contracted accountants, the board remains legally accountable for compliance.
Board members should establish clear protocols determining:
- Who prepares each filing
- Who reviews for accuracy
- Who submits the documents
- Who tracks deadlines and confirmation receipts
Considering the complexity of these forms and the serious consequences of non-compliance, many nonprofits designate specific officers to oversee the filing process or engage compliance specialists. We help organizations manage the preparation and submission of required documents, including Annual Reports and charitable registration renewals. Labyrinth, Inc. tracks filing deadlines and provides personalized guidance throughout the renewal process.
The Form 990 particularly requires careful attention since it contains governance questions, compensation disclosures, and other sensitive information that reflects your organization’s operations, as outlined in the Alabama Attorney General’s charitable organization renewal instructions.
Regardless of who handles the preparation, establish a calendar tracking all filing deadlines and build in buffer time for review before submission. This proactive approach helps prevent last-minute scrambles that often lead to errors or missed deadlines.
Federal Filing: IRS Form 990 Requirements
Every tax-exempt organization in Alabama must file one version of IRS Form 990 annually to maintain federal compliance. This information return provides the IRS with details about your nonprofit’s finances, governance, and activities.
Which version of Form 990 to file
The version of Form 990 your nonprofit files depends primarily on its financial activity (see the IRS guidance on which Form 990 to file):
- Form 990-N (e-Postcard): For organizations with gross receipts normally ≤ $50,000
- Form 990-EZ: For organizations with gross receipts < $200,000 and total assets < $500,000
- Form 990: For organizations with gross receipts ≥ $200,000 or total assets ≥ $500,000
- Form 990-PF: Required for all private foundations regardless of financial status
Additionally, any nonprofit with unrelated business income must file Form 990-T alongside their regular annual return. Note that most nonprofits are now required to file electronically—paper returns are generally not accepted except in special circumstances.
Deadlines and extensions
Your Form 990 is due by the 15th day of the 5th month after your organization’s tax year ends (see the IRS due dates for exempt organization returns). For example, if your fiscal year ends December 31, your filing deadline is May 15 of the following year. When deadlines fall on weekends or holidays, they automatically move to the next business day.
Need more time? You can request an automatic 6-month extension by submitting Form 8868 prior to your original due date (see the IRS annual return due date page). For instance, a calendar-year nonprofit with a May 15 deadline would extend to November 15.
One exception: Form 990-N (e-Postcard) deadlines cannot be extended, though there’s no penalty for late submission unless it’s your third consecutive year without filing.
Common mistakes to avoid
The IRS identifies several common errors that can delay processing or trigger penalties (see IRS tips on common Form 990 errors):
- Incomplete Schedule B (donor information)
- Missing narrative responses in supplemental sections
- Improperly classifying expenses by functional category
- Failure to sign the return by an authorized officer
- Checking “initial” or “final” boxes incorrectly
- Not completing required parts or entering “N/A” where applicable
- Inadequate Program Service Accomplishment descriptions
Moreover, keep detailed records that substantiate all income, deductions, or credits for at least three years from the filing date.
Penalties for late or missed filings
The consequences of failing to file Form 990 are substantial:
- For organizations with gross receipts of $1,000,000 or less: $20 per day late penalty (maximum $10,000 or 5% of gross receipts, whichever is less)
- For organizations with gross receipts over $1,000,000: $100 per day late penalty (maximum $50,000)
Most critically, failing to file any required Form 990 for three consecutive years results in automatic revocation of your tax-exempt status (see IRS penalties for failure to file). Revoked organizations must reapply for exemption, may owe income taxes, and lose eligibility to receive tax-deductible contributions during the lapsed period.
The IRS may abate penalties if you can demonstrate reasonable cause, such as death, serious illness, natural disasters, or unavoidable absence. In such cases, prompt action and written explanation are essential.
State Filing: Alabama Attorney General Annual Report
Beyond federal requirements, Alabama nonprofits must navigate state-level filings with the Attorney General’s office. This regulatory layer helps ensure charitable organizations operate transparently and maintain proper accountability to donors and the public.
Who must file with the Attorney General
In Alabama, the charitable organization filing requirement applies to organizations that solicit contributions in or from the state (see the Alabama Attorney General charitable organization registration). This includes:
- Organizations physically located in Alabama
- Out-of-state charities fundraising within Alabama
- Organizations using third parties to solicit on their behalf
The state defines a charitable organization broadly and may include local chapters with authority to disburse funds independently from parent organizations.
Required documents and attachments
Your annual filing package must include several key components:
- Completed Charitable Organization Renewal Statement form (see Alabama Charitable Organization Renewal Statement instructions)
- Financial statement (usually fulfilled by submitting your most recently filed IRS Form 990)
- $25 filing fee payable to the Office of the Attorney General (see Alabama AG charitable organization page)
If you choose not to submit your Form 990, you must instead provide a written financial report covering the fiscal year that includes:
- Gross income statement
- Expense breakdown
- Net income figures
- Balance sheet as of fiscal year close
- Schedule of charitable activities performed and associated expenditures
Additionally, you must notify the Attorney General within 10 days of any changes to information in your original registration (see Alabama AG charitable organization page).
Filing deadlines and fees
The annual renewal deadline falls 90 days after the close of your organization’s fiscal year. For example, if your fiscal year ends December 31, your renewal is due by March 31 of the following year.
Need more time? You can request a 180-day extension through the Attorney General’s online portal (see Alabama AG charitable organization page). For instance, if your organization operates on a calendar year, an extension would move your deadline from March 31 to late September.
The standard renewal fee remains $25 regardless of organization size (see Alabama AG charitable organization page). This fee must accompany your renewal statement each year to maintain good standing. Labyrinth helps nonprofits prepare and submit their Annual Reports while tracking renewal deadlines to ensure timely submission.
Unlike some states, Alabama does not impose late fees for missed filings. Instead, the Attorney General may mail a 15-day notice of registration cancelation if you fail to renew. During this period, you must cease solicitation activities to avoid penalties. Furthermore, continued unlawful charitable solicitation after non-renewal can result in fines and civil penalties from the Attorney General.
Exemptions from registration
Numerous organizations qualify for exemption from registration requirements, including:
- Educational institutions and their related foundations
- Religious organizations
- Political organizations
- Fraternal, patriotic, benevolent, social, and historical organizations
- Civic leagues soliciting only from their membership
- Relief campaigns for named individuals (collecting $10,000 or less)
- Organizations receiving under $25,000 annually with all-volunteer fundraising
- United Way and community chest recipients (under certain conditions)
- Veterans organizations, volunteer firefighters, and rescue squads
To claim exemption, you must file the Alabama Charitable Organization Registration Exemption form with the Attorney General, explaining which category applies to your organization (see the Alabama Charitable Organization Exemption form). Unlike registration, exemptions don’t expire as long as qualifying conditions continue to be met.
Should your organization exceed the $25,000 threshold during any fiscal year, you must register within 30 days of receiving contributions over that amount (see the Alabama AG charitable organization page).
Renewing Fundraising Registration in Alabama
Maintaining your nonprofit’s fundraising registration is a critical annual task for organizations operating in Alabama. Understanding when and how to complete this process helps your organization avoid issues and maintain its ability to solicit donations.
When and how to renew
Charitable organizations in Alabama must renew their fundraising registration annually within 90 days after the close of their fiscal year (see the Alabama AG charitable organization page).
Fortunately, if you need additional time, the Attorney General allows for an extension request of up to 180 days beyond your original due date. This extension must be submitted through your registration profile.
Two submission options exist:
- Online renewal – Submit through the Alabama Attorney General’s web application (preferred method) (see the Alabama AG charitable organization page)
- Mail submission – Send completed forms to: 501 Washington Avenue, Post Office Box 300152, Montgomery, Alabama 36130-0152
What documents are needed
To complete your fundraising registration renewal, you must submit several key documents:
- Completed Charitable Organization Renewal Statement (see Alabama Charitable Organization Renewal Statement instructions)
- Annual financial report OR a copy of your IRS Form 990 (see the Alabama AG charitable organization page)
- $25.00 renewal fee payable to the Alabama Attorney General’s Office
If submitting a self-created financial report, it must contain:
- Your nonprofit’s gross income
- Expense breakdown
- Net income figures
- Balance sheet as of fiscal year close
- Schedule of mission-related activities and associated expenditures
Remember to notify the Attorney General within 10 days of any changes to information in your original registration.
Consequences of non-renewal
Unlike some states, Alabama doesn’t impose specific late fees for missing renewal deadlines. In place of immediate penalties, the Attorney General may mail a 15-day notice of registration cancelation. During this period, your organization must either:
- Complete the renewal process, or
- Cease all solicitation activities in Alabama
The stakes become much higher if you continue fundraising after registration cancelation. Organizations engaging in unlawful charitable solicitation without completing annual renewal may face significant fines and civil penalties.
If your nonprofit no longer wishes to solicit contributions in Alabama, you must file a “Notice of Non-Renewal for Charitable Organizations” with the Attorney General. This formal notification prevents your organization from being penalized for non-compliance when you’ve intentionally ceased fundraising operations.
Maintaining timely renewals effectively demonstrates your organization’s commitment to transparency and legal compliance—values that matter deeply to donors and regulatory authorities alike.
Maintaining Good Standing and Compliance
Successful compliance for Alabama nonprofits extends beyond simply filing the required forms. Through systematic approaches and modern tools, you can streamline your processes while maintaining good standing year-round.
Keeping your board and bylaws updated
Your bylaws serve as your nonprofit’s rulebook—they outline how decisions are made, meeting frequency, and leadership transition protocols. Subsequently, you must keep them current with both your actual practices and Alabama law. Effective January 1, 2024, the Alabama Nonprofit Corporation Law introduced significant changes affecting governance structures.
Key bylaw elements requiring regular review:
- Director appointment/removal procedures
- Board size limitations
- Electronic communication consent requirements
- Business opportunity provisions
Additionally, maintain an updated registered agent with a physical Alabama address to receive legal documents. When your organization needs to update registered agent information or other corporate details, we handle these update filings as part of our corporate filing services.
Tracking deadlines and using reminders
Develop a consolidated calendar highlighting:
- Form 990 deadline (15th day of 5th month after fiscal year-end)
- Attorney General reports (90 days after fiscal year-end)
- Extension request deadlines
Many nonprofits find success working with specialists who can track these deadlines proactively and manage the submission process. Organizations with experienced partners can access secure portals to monitor filing status and store required documentation throughout the year. Labyrinth provides organized filing details, reminders, and tracks agency correspondence to ensure nothing falls through the cracks.
Yet another effective approach is utilizing the Attorney General’s deadline reference information. For example, organizations ending their fiscal year on December 31 must submit by March 31, with extensions available into late September (see the Alabama AG charitable organization page).
How to stay informed about changes in law
Alabama nonprofit law underwent major revisions effective January 2024, with mandatory application to all nonprofits starting January 2025. Thus, staying informed about regulatory changes is crucial.
Consider these information sources:
- Alabama Nonprofit Association events
- Alabama Secretary of State (334-242-5325, sos.alabama.gov) notifications
- Professional legal advisors
- Industry newsletters and updates
Conclusion
Maintaining compliance with annual filing requirements stands as a fundamental responsibility for your Alabama nonprofit. Throughout this guide, we’ve examined the critical components needed to keep your organization in good standing with both federal and state authorities.
Consequently, you must prioritize timely submission of your IRS Form 990, Alabama Attorney General reports, and fundraising registration renewals. Each filing serves a specific purpose—preserving your tax-exempt status, demonstrating financial transparency, and maintaining legal authority to solicit donations within Alabama.
The stakes certainly remain high. Missed deadlines can result in substantial penalties, ranging from daily fines to potential revocation of your tax-exempt status after three consecutive years of non-filing. Additionally, continued fundraising activities without proper registration might trigger significant fines and civil penalties from the Alabama Attorney General’s office.
Nevertheless, these requirements become entirely manageable with proper planning. Creating a comprehensive calendar that tracks all deadlines, designating responsible board members for each filing, and building buffer time for review significantly reduces risks. Many nonprofits also benefit from partnering with specialists who provide personalized guidance and handle the preparation and submission of Annual Reports and charitable registration renewals. You might also consider setting automated reminders several weeks before each deadline approaches.
Above all, remember that these filings reflect your organization’s commitment to transparency and accountability. Donors, regulators, and the public rely on these disclosures to evaluate your nonprofit’s effectiveness and financial stewardship. Therefore, treat these requirements not merely as bureaucratic hurdles but as opportunities to demonstrate your organization’s integrity.
Lastly, staying informed about regulatory changes through professional advisors and industry associations ensures your nonprofit adapts to evolving requirements. Though annual filing obligations demand attention and resources, they ultimately safeguard your organization’s ability to fulfill its mission for years to come.
Frequently Asked Questions
