At a Glance

Connecticut nonprofits must file annual reports with the Secretary of State and renew charitable registration with the Department of Consumer Protection by the last day of the 11th month following their fiscal year end. Organizations with gross revenue over $500,000 must also submit financial statements prepared by an independent CPA. Missing these deadlines can result in late fees, loss of good standing, or even revocation of tax-exempt status.

Introduction

Staying compliant with Connecticut’s nonprofit filing regulations doesn’t have to be overwhelming. Whether you’re managing a small community organization or a large charitable foundation, understanding your specific obligations is crucial for maintaining good standing. This guide breaks down exactly what you need to file, when to submit your paperwork, and how to avoid common pitfalls.

You’ll discover the essential differences between state and federal requirements, learn which version of Form 990 is right for your organization, and understand when your nonprofit might need an audit versus a review. We’ll walk through the renewal process, explain how to calculate fees based on your organization’s size, and outline special filing scenarios that might apply to your nonprofit.

Understanding Annual Filing Obligations

To maintain your nonprofit’s legal status in Connecticut, you’ll need to navigate multiple filing obligations at both state and federal levels. Keeping track of these requirements helps avoid penalties, maintain tax-exempt status, and ensure your organization remains in good standing.

Who needs to file annually in Connecticut

Every nonprofit corporation registered in Connecticut must submit annual filings regardless of size or activity level. This requirement applies to various business entities including nonstock corporations, limited liability companies, and limited partnerships. Even organizations that are exempt from paying taxes must maintain their annual filing obligations to preserve their corporate status.

Additionally, charities soliciting donations in Connecticut must register with the Department of Consumer Protection and renew this registration annually. This applies to most nonprofits engaged in fundraising activities. Religious organizations may have different requirements, but most secular nonprofits operating in Connecticut fall under these filing mandates.

Furthermore, all registered charities must file an annual Form 990 with the IRS and confirm this filing through attestation during their renewal process (see IRS Form 990-N FAQs). While Connecticut does not require a copy of your 990 with the renewal submission, you must retain these documents for at least three years in case of a potential audit (see IRS Form 990-N FAQs).

Difference between state and federal requirements

Federal and state filing obligations serve different purposes and involve separate agencies. At the federal level, you must file one of the 990 series forms with the IRS annually to maintain tax-exempt status. The specific version depends on your organization’s size:

• Form 990-N: For organizations with gross receipts of $50,000 or less
• Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000
• Form 990: For organizations with gross receipts ≥ $200,000 and total assets ≥ $500,000
• Form 990-PF: Required for private foundations
• Form 990-T: For organizations with unrelated business income of $1,000 or more

At the state level, Connecticut requires an Annual Report filed with the Secretary of State (203-622-2390, www.ct.gov/sots). Filing fees vary by entity type—for example, nonstock corporations pay $50, while other entities have different fees. State tax matters are administered by the Connecticut Department of Revenue Services (860-297-5962, portal.ct.gov/drs). Organizations seeking sales and use tax exemption must apply through the Department of Revenue Services (see Connecticut Department of Consumer Protection charitable registration FAQs).

For nonprofits managing multiple state requirements, Labyrinth, Inc. helps monitor varying renewal dates, reporting schedules, and jurisdiction-specific rules to ensure all deadlines are met.

Key deadlines based on fiscal year

Your nonprofit’s filing deadlines are determined by your fiscal year end date. Here’s the timeline you need to follow:

For federal filings, Form 990 (all versions) must be submitted by the 15th day of the 5th month after your fiscal year ends. For example, if your fiscal year ends December 31, your Form 990 is due May 15.

For state Annual Reports, due dates are set by the Secretary of the State and can be checked in your entity’s record; the state typically sends a reminder about one month before the due date. You can confirm when your next annual report is due by logging into your Business.CT.gov account.

For charitable organizations registered with the Department of Consumer Protection (860-713-6110, portal.ct.gov/dcp), the renewal deadline falls on the last day of the 11th month following your fiscal year end. For example, if your fiscal year ends in December, your renewal would be due by November 30 the following year.

Late filings can result in significant penalties. For charitable registration renewals, Connecticut charges a $25 per-month late fee for every month or portion thereof that the renewal is late (see IRS Form 990-N FAQs). Moreover, if a charity fails to renew within six months of expiration, it must go through the entire reinstatement process.

We help nonprofits track these critical deadlines and organize filing details to prevent costly late fees and maintain good standing across all jurisdictions.

Form 990 and Financial Reporting

Annual tax filings are essential for maintaining your nonprofit’s compliance with both IRS regulations and Connecticut state requirements. Filing the appropriate version of Form 990 serves as the cornerstone of your organization’s financial reporting obligations.

Which version of Form 990 to file

The IRS requires virtually all nonprofits in Connecticut to file Form 990 annually, even those not exempt from federal taxation.

• Form 990-N (e-Postcard): For organizations with gross receipts normally $50,000 or less (see IRS 990-N e-Postcard filing requirements)
• Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000
• Form 990: For organizations with gross receipts $200,000 or more or total assets $500,000 or more
• Form 990-PF: Required for private foundations, regardless of financial status
• Form 990-T: Necessary for reporting unrelated business taxable income of $1,000 or more

Your Form 990 is due by the 15th day of the 5th month following your fiscal year end. For instance, if your fiscal year ends December 31, your filing deadline is May 15 of the following year (see IRS 990-N e-Postcard filing requirements). Missing this deadline for three consecutive years will automatically revoke your tax-exempt status (see IRS Form 990-N FAQs).

What to do if you file Form 990-N

Form 990-N must be completed and filed electronically through the IRS website—there is no paper version available (see IRS Form 990-N FAQs). Although filing Form 990-N is free and relatively simple (requiring only eight basic information items), Connecticut has additional requirements you must consider (see IRS Form 990-N FAQs).

Importantly, for initial registration in Connecticut, if you file Form 990-N with the IRS, you must complete either Form 990 or 990-EZ for state purposes (see Connecticut Department of Consumer Protection charitable registration FAQs). This more detailed financial reporting is mandatory regardless of your organization’s size.

When filing Form 990-N electronically:

1. Use the email address associated with your IRS account (see IRS 990-N e-Postcard filing requirements)
2. Avoid using smartphones or tablets for submission (see IRS 990-N e-Postcard filing requirements)
3. Ensure you have your EIN and tax year information readily available (see IRS 990-N e-Postcard filing requirements)

Although there’s no penalty for late Form 990-N submissions, timely filing is crucial since failing to file for three consecutive years will automatically revoke your tax-exempt status (see IRS Form 990-N FAQs).

Retention and audit readiness

Connecticut requires registered charities to retain copies of Form 990 for at least three years in case they are selected for audit (see Connecticut Department of Consumer Protection charitable registration FAQs). Your organization should establish a formal document retention policy—a governance practice the IRS specifically highlights on Form 990.

Beyond tax filings, Connecticut imposes financial reporting requirements that vary based on your organization’s revenue level:

• Gross revenue over $1,000,000: Submit an audited financial statement prepared by an independent CPA with your charitable registration renewal (see Connecticut Department of Consumer Protection charitable registration FAQs)
• Gross revenue between $500,000 and $1,000,000: You may submit either an audited financial statement OR a review report prepared by an independent CPA (see Connecticut Department of Consumer Protection charitable registration FAQs)
• Gross revenue under $500,000: No audit or review report required

Remember that “gross revenue” means income from all sources without deduction of costs or expenses (see Connecticut Department of Consumer Protection charitable registration FAQs). This distinction is critical when determining which financial reporting requirements apply to your organization.

Maintaining organized financial records throughout the year will make annual filing significantly easier and help ensure your Connecticut nonprofit remains in good standing with both state and federal authorities. We help nonprofits organize these filing details and maintain proper documentation for audit readiness.

Audit and Review Requirements

Connecticut nonprofit organizations face specific audit and review requirements based on their annual revenue. Understanding these obligations is crucial for maintaining state regulatory compliance and preserving your tax-exempt status.

Revenue thresholds for audit vs. review

As of July 1, 2023, Connecticut updated its audit requirements for registered charities:

• Gross revenue over $1,000,000: Must submit an audited financial statement prepared by an independent certified public accountant (see Connecticut Department of Consumer Protection charitable registration FAQs)
• Gross revenue between $500,000 and $1,000,000: May submit either an audited financial statement OR a review report prepared by an independent CPA (see Connecticut Department of Consumer Protection charitable registration FAQs)
• Gross revenue under $500,000: No audit or review report required

These requirements apply to charitable organizations subject to registration with the Connecticut Department of Consumer Protection.

What counts as gross revenue

Calculating your gross revenue correctly is essential for determining which financial reporting requirements apply to your organization. According to Connecticut regulations:

Gross revenue means income of any kind from all sources, without deduction of costs or expenses (see Connecticut Department of Consumer Protection charitable registration FAQs). This includes all amounts received from any solicitation by a paid solicitor (see Connecticut Department of Consumer Protection charitable registration FAQs).

For example, if your nonprofit sells $50,000 worth of raffle tickets and spends $30,000 on prizes, the full $50,000 counts toward your gross revenue threshold—not just the $20,000 net proceeds (see Connecticut Department of Consumer Protection charitable registration FAQs).

Importantly, gross revenue calculations exclude:

• Grants or fees from government agencies
• Revenue derived from funds held in trusts for the benefit of the organization

How to request a waiver

If your nonprofit cannot meet the audit or review requirement, you may request a waiver from the Connecticut Department of Consumer Protection.

1. Be submitted in writing on your organization’s letterhead
2. Provide a specific reason for the request
3. Be emailed to dcp.publiccharities@ct.gov before your registration expiration date (see Connecticut Department of Consumer Protection charitable registration FAQs)

Note that waivers are discretionary and cannot be granted for two consecutive renewal cycles (see Connecticut Department of Consumer Protection charitable registration FAQs). Consequently, you should prepare to meet the standard requirements for future filings.

Difference between audit and review

An audit provides the highest level of assurance that financial statements are free from material misstatements. During an audit, the CPA examines your internal controls and obtains independent confirmation of financial information.

In contrast, a review provides only “limited assurance.” The CPA examines financial statements for consistency with generally accepted accounting principles but doesn’t conduct the same level of investigation. Unlike audits, reviews don’t require auditors to independently validate individual transactions.

Renewal Process and Fees

The timing of your nonprofit’s annual filings in Connecticut directly affects your compliance status. Keeping track of your organization’s renewal dates and understanding the associated fees ensures your nonprofit maintains good standing without incurring unnecessary penalties.

How to calculate your renewal date

Your charity’s renewal date depends on your fiscal year end. The Department of Consumer Protection requires renewals by the last day of the 11th month following your fiscal year end (see Connecticut Department of Consumer Protection charitable registration FAQs). For example, if your fiscal year ends in December, your renewal deadline falls on November 30 of the following year (see Connecticut Department of Consumer Protection charitable registration FAQs). This timing allows your organization to complete its annual financial reporting before submitting renewal documentation.

The Department typically sends renewal notices prior to your expiration date with instructions on how to renew online or by mail. We help nonprofits manage these renewal schedules and track each deadline to prevent missed filings.

Filing the renewal notice

Two methods exist for submitting your annual renewal:

1. Online Renewal: Visit www.ct.gov/dcp and select “Renew a License” (see Connecticut charitable registration renewal instructions (PDF)). The online system provides step-by-step instructions for completing your submission.
2. Mail Renewal: Complete the renewal form sent to your organization, include the $50 renewal fee payable to “Treasurer, State of Connecticut,” and mail to the Department of Consumer Protection (see Connecticut charitable registration renewal instructions (PDF)).

Prior to submitting your renewal, verify that your organization’s IRS Form 990 is completed and filed with the IRS (see Connecticut charitable registration renewal instructions (PDF)). Subsequently, confirm that any required audit or review reports are prepared according to your revenue thresholds.

Late fees and penalties

Submitting your renewal after the expiration date results in a $25 per-month late fee (see Connecticut Department of Consumer Protection charitable registration FAQs). This fee applies to each month or portion of a month that the renewal remains overdue. In addition to these monetary penalties, charities failing to renew within six months of expiration must complete the entire reinstatement process.

Beyond financial costs, noncompliance can lead to cease and desist orders, forced return of donations, taxation of charitable contributions, and even civil or criminal prosecution of officers and directors.

Changing your fiscal year

Organizations can modify their fiscal year end during the standard renewal process. When reporting this change, submit your last 990 prior to the change along with the short-year 990 documenting the transition.

On your short-year Form 990, write “Change in Accounting Period” at the top (see IRS change in accounting period procedures). Note that organizations having changed their fiscal year within the past ten years must file Form 1128 to request another change (see IRS change in accounting period procedures).

Special Filing Scenarios

Beyond standard annual filings, certain nonprofit scenarios require additional reporting. These special cases often come with their own unique requirements that deserve careful attention.

Single audit requirements for state and federal grants

Nonprofits receiving government funding face additional audit obligations based on specific thresholds. For federal awards, an audit is required if expenditures equal or exceed $750,000 (for fiscal years beginning prior to October 1, 2024) or $1,000,000 (for fiscal years beginning on or after October 1, 2024) (see Connecticut Single Audit instructions (PDF)). Likewise, state financial assistance requires an audit when expenditures reach $300,000 (for fiscal years beginning prior to July 1, 2024) or $500,000 (for fiscal years beginning on or after July 1, 2024) (see Connecticut Single Audit instructions (PDF)).

Organizations below these thresholds must submit exemption notifications within sixty days after their fiscal year end (see Connecticut Single Audit instructions (PDF)). Nevertheless, records must remain available for review by appropriate officials (see Connecticut Single Audit instructions (PDF)).

Commercial co-venture agreements

Whenever your nonprofit partners with a for-profit business that donates proceeds from sales to your charity, this qualifies as a commercial co-venture. Such arrangements require a written agreement filed with the Department of Consumer Protection not less than ten days prior to starting the promotion (see Connecticut Department of Consumer Protection charitable registration FAQs).

The contract must outline:

• Description of goods/services offered
• Geographic area and timeframe of the sale
• Provisions for final accounting
• Date and manner of benefit transfer
• How the charity’s name will appear in promotions (see Connecticut Solicitation of Charitable Funds Act guidance)

Filing for religious or financial exemptions

Certain organizations may qualify for exemption from registration requirements. This primarily includes religious corporations, educational institutions, nonprofit hospitals, and governmental units (see Connecticut Solicitation of Charitable Funds Act guidance). Furthermore, organizations receiving less than $50,000 in annual contributions may qualify for exemption, provided they don’t compensate anyone specifically to conduct solicitations (see Connecticut Solicitation of Charitable Funds Act guidance).

Conclusion

Navigating Connecticut’s nonprofit annual filing requirements demands attention to detail and careful planning throughout your fiscal year. Your organization must remain compliant with both state and federal obligations to maintain its tax-exempt status and good standing. Therefore, tracking deadlines based on your fiscal year end becomes essential for avoiding penalties and potential revocation of your nonprofit status.

Remember that Form 990 submissions serve as the foundation of your reporting obligations, though the specific version depends entirely on your organization’s size and revenue. Additionally, Connecticut imposes distinct audit or review requirements based on your gross revenue thresholds, with stricter standards applying as your organization grows financially.

Late filings can result in significant consequences. Accordingly, setting up calendar reminders several months before deadlines gives your team adequate time to prepare necessary documentation. Otherwise, your organization risks facing monthly late fees, reinstatement procedures, or even more severe penalties.

Special scenarios such as government grants, commercial co-ventures, or exemption qualifications require extra attention and specific documentation. Likewise, understanding what counts as gross revenue proves critical when determining which financial reporting requirements apply to your organization.

Your nonprofit’s continued operation depends largely on maintaining these annual filing requirements. Subsequently, establishing proper internal processes for document retention, financial record-keeping, and deadline management will significantly streamline your annual filing experience. For organizations operating in multiple states or managing complex schedules, professional support can help ensure all requirements are met accurately and on time.

Though these requirements might seem overwhelming at first, breaking them down into manageable steps makes the process considerably more approachable. After all, staying compliant protects your mission-driven work and ensures you can continue serving your community without unnecessary disruptions.

Frequently Asked Questions