At a Glance

In Massachusetts, most nonprofits must file Form PC annually with the Attorney General’s Office by 4.5 months after their fiscal year ends, along with their IRS Form 990 and applicable financial statements. Additionally, all Massachusetts nonprofit corporations must submit an annual report to the Secretary of the Commonwealth by November 1st each year. Missing these deadlines can result in penalties and potential loss of good standing.

Introduction

Staying compliant with Massachusetts state regulations isn’t just about paperwork—it’s about protecting your organization’s mission and tax-exempt status. Fortunately, understanding and following the proper filing procedures can save you from unnecessary headaches, penalties, and potential loss of nonprofit status.

As a Massachusetts nonprofit leader, you need to navigate various annual filings to maintain your organization’s good standing. Specifically, these include state regulatory filings, state tax documentation, and federal tax requirements that must be submitted correctly and on time. With the right guidance and compliance support, nonprofit filing requirements can be managed effectively.

This step-by-step guide will walk you through everything you need to know about maintaining your nonprofit’s compliance. You’ll discover which forms are required, when they must be filed, and how to avoid common pitfalls that could jeopardize your organization’s standing. Additionally, you’ll learn about Form PC, financial statement requirements, and the Massachusetts Charity Portal that streamlines your filing process.

For nonprofits operating across multiple states, specialized compliance services can provide coordinated support for tracking deadlines, managing renewals, and ensuring consistent filing across different jurisdictions. This comprehensive approach helps organizations maintain compliance while focusing on their core mission activities.

Determine If Your Organization Must File

Understanding Massachusetts nonprofit filing obligations starts with determining which organizations must file. The Commonwealth has specific requirements based on your organization’s type, structure, and activities.

Which nonprofits are required to file annually

Nearly all nonprofit corporations operating in Massachusetts must meet annual filing requirements. Every nonprofit corporation organized under Massachusetts law must submit a nonprofit annual report to the Corporations Division on or before November 1st each year. This requirement applies regardless of your organization’s size or income level.

Furthermore, all public charities conducting business in Massachusetts must register with the Non-Profits/Public Charities Division of the Attorney General’s Office (617-727-2200, mass.gov/ago) and file annual financial reports thereafter, as outlined in the Massachusetts public charities guidance.

After completing the first year of activity, charitable organizations must file Form PC annually along with the appropriate IRS Form 990, correct filing fee based on annual revenue, and any required audit or review. These annual filings are due four and a half months after your fiscal year ends.

The filing requirements include:

• Form PC submission through the Massachusetts Charity Portal
• Attachment of your federal tax form (990 series)
• Payment of filing fees calculated based on gross support and revenue
• Financial statements (with audit or review when required)

Despite federal tax-exempt status, your organization still has state-level obligations to maintain compliance. Organizations managing filings across multiple states can benefit from coordinated deadline tracking and renewal management services that ensure consistent compliance across all jurisdictions.

Exempt organizations and special cases

Although most nonprofits must file annually, certain organizations are exempt from these requirements. The Massachusetts General Laws specifically exempt two categories of charitable organizations from registering and filing with the AGO:

1. The Red Cross and specific veterans organizations
2. Certain religious organizations primarily religious in purpose

Notably, fraternal groups such as police and fire associations/unions generally aren’t considered public charities and thus don’t have to register and file annually with the Division. However, if their fundraising appeals state that donations will benefit a charitable purpose (like scholarship funds), then these groups must register and file.

Additionally, organizations that don’t raise or receive public contributions exceeding $25,000 during a calendar year or receive contributions from more than ten persons during a calendar year may qualify for exemption—provided all functions are performed by unpaid volunteers and no assets or income benefit officers or members (see Massachusetts public charities exemptions).

Out-of-state nonprofits operating in Massachusetts

For nonprofits formed outside Massachusetts but operating within the state, additional requirements apply. A foreign corporation must register with the Corporations Division of the Secretary of the Commonwealth (617-727-9640, sec.state.ma.us) within 10 days of commencing business in Massachusetts. This registration involves filing a certificate of legal existence from your home state along with a minimum filing fee of $250.

Beyond this registration, out-of-state charitable organizations must also register with the Attorney General’s Office before engaging in charitable work or fundraising within Massachusetts. The registration process requires submitting copies of your articles of organization, bylaws, board of directors list, and federal tax exemption determination letter.

Annual reporting requirements for foreign nonprofits include filing an annual report with the Secretary of the Commonwealth within 2.5 months after your fiscal year closes, with a $100 filing fee plus potential additional fees based on filing method (see Secretary of the Commonwealth guidance for foreign nonprofits).

Consequently, both domestic and foreign nonprofits must carefully monitor their filing obligations to maintain good standing in Massachusetts. We recommend establishing a centralized tracking system to monitor varying renewal dates and reporting schedules, especially for organizations operating in multiple jurisdictions.

Understand the Annual Form PC Filing

Form PC serves as the cornerstone of Massachusetts nonprofit annual filing requirements. This state-specific form, along with its attachments, creates the framework for maintaining your organization’s compliance with state regulations. Let’s explore the details of this essential filing.

What is Form PC and who needs to file it

Form PC is the annual financial report that virtually every public charity organized, operating, or fundraising in Massachusetts must file with the Attorney General’s Non-Profit Organizations/Public Charities Division. This form captures crucial information about your organization’s mission, contact details, compensation information, financial data, related party transactions, and solicitation activities.

Only organizations holding property exclusively for religious purposes and certain federally chartered organizations are exempt from filing Form PC. Importantly, as of September 1, 2023, the Division requires all charitable registrations and annual filings to be made through the Massachusetts Charity Portal; paper submissions are no longer accepted.

The filing deadline for Form PC is 4.5 months after your nonprofit’s fiscal year end (see the Massachusetts Charity Portal). For instance, if your fiscal year ends December 31, your Form PC is due by May 15. Organizations registered and in compliance with annual reporting requirements automatically receive a 6-month extension without submitting a request (see the AGO FAQs for charitable organizations).

Required attachments: IRS Form 990 and financial statements

Several attachments must accompany your Form PC submission to be considered complete:

1. IRS Form 990/990-EZ/990-PF: Nearly all charitable nonprofits operating in Massachusetts must submit their annual 990 IRS information return with their Form PC. As of recent changes, organizations with gross support and revenue under $25,000 are exempt from submitting Form 990.
2. Financial statements: The financial statement requirements depend on your organization’s annual revenue:
   • For nonprofits with gross revenue between $500,000 and $1,000,000: Either audited or reviewed financial statements must be submitted (see the AGO FAQs for charitable organizations and the Massachusetts Charity Portal).
   • For nonprofits with gross revenue exceeding $1,000,000: Only audited financial statements are acceptable (see the AGO FAQs for charitable organizations and the Massachusetts Charity Portal).

All audited financial statements must comply with Generally Accepted Accounting Principles (GAAP), whereas reviewed financial statements may be prepared according to GAAP or another comprehensive accounting basis (see AGO FAQs for charitable organizations).

Filing fees and how they are calculated

The filing fee for Form PC varies based on your organization’s gross support and revenue. As of November 2024, the fee structure is as follows:

Gross Support and Revenue Filing Fees:

• Less than $100,000: $35
• $100,001 to $250,000: $70
• $250,001 to $500,000: $125
• $500,001 to $1 million: $250
• $1,000,001 to $10 million: $500
• $10,000,001 to $100 million: $1,000
• Over $100 million: $2,000

The appropriate fee must be paid through the Massachusetts Charity Portal at the time of filing. Ensure your organization’s identifying information is accurate in the Charity Portal when submitting payment.

First-time registrants should note that there’s a one-time initial registration fee of $100 in addition to the annual filing fee based on gross support and revenue. This initial fee is separate from any other fees associated with your nonprofit’s formation and registration.

Failing to file Form PC and its attachments on time may result in legal action by the Attorney General, including potential civil penalties against your organization or its officers (see the Massachusetts public charities guidance).

Know the Financial Statement Requirements

Financial statement requirements form a vital component of Massachusetts nonprofit annual filing requirements. Recent changes to these requirements have made compliance easier for smaller organizations while maintaining accountability for larger ones.

When a CPA review is required

Financial statement reviews became mandatory for organizations with different revenue thresholds following recent legislation. Currently, nonprofits with gross support and revenue between $500,000 and $1,000,000 must submit CPA-reviewed financial statements with their Form PC. This represents a significant increase from the previous threshold of $200,000.

• Examining supporting documentation for reported amounts
• Making management inquiries
• Performing analytical procedures to identify unusual financial ratios

The review provides reasonable, though limited, confidence in your financial reporting without the expense of a full audit. Organizations preparing for their first required review should allow adequate time to select a qualified CPA and coordinate the review process with their regular bookkeeping and financial reporting schedules.

When a full audit is required

Organizations with gross support and revenue exceeding $1,000,000 must submit fully audited financial statements (see Massachusetts audits and reviews requirements). This threshold doubled from the previous $500,000 requirement, offering welcome relief to mid-sized nonprofits.

Unlike reviews, audits provide an opinion on whether financial statements are presented fairly in accordance with accepted accounting principles. The process involves more rigorous examination of your organization’s financial records, internal controls, and supporting documentation. Moreover, only an independent certified public accountant can perform this audit (see the AGO FAQs for charitable organizations).

The Massachusetts Attorney General’s Office requires that all financial statements be complete, in final form, unbound, and accompanied by an opinion letter signed by the CPA. Importantly, draft statements are not acceptable, nor are compilations (see audits and reviews for charitable organizations).

Planning for your audit should begin several months before your fiscal year end to ensure adequate time for fieldwork, management responses, and final report preparation. We recommend establishing a relationship with your audit firm early in the process to streamline documentation requirements and scheduling.

Accepted accounting standards (GAAP and others)

Audited financial statements must adhere strictly to Generally Accepted Accounting Principles (GAAP) and be audited according to generally accepted auditing standards applicable to nonprofit organizations (see Massachusetts audits and reviews requirements). Unlike audits, reviewed financial statements offer more flexibility in accounting methods.

While GAAP remains the standard for reviewed statements as well, your organization can alternatively use another comprehensive basis of accounting (OCBOA), particularly:

• Modified cash basis
• Income tax basis

Should you choose an alternative basis, your financial statements must disclose and describe how that basis differs from GAAP (see audits and reviews for charitable organizations). This flexibility potentially reduces both time and cost for financial statement preparation while maintaining transparency.

The legislative changes effectively balance regulatory oversight with practical considerations for nonprofits of varying sizes, ultimately streamlining Massachusetts nonprofit annual filing requirements while preserving accountability for stakeholders and the public.

Meet State and Federal Tax Filing Obligations

Maintaining proper tax-exempt status requires simultaneous compliance with both federal and state tax filings. Beyond the Form PC discussed earlier, your nonprofit has additional tax reporting obligations to fulfill each year.

Filing IRS Form 990 with the state

The IRS Form 990 series serves as the federal government’s primary tool for gathering information about tax-exempt organizations. This form must be filed annually with the IRS by the 15th day of the fifth month following your fiscal year end. For organizations operating on a calendar year, this deadline falls on May 15.

Which version of Form 990 you’ll file depends on your organization’s financial activity:

• Form 990-N (e-Postcard) for smaller organizations
• Form 990-EZ for mid-sized nonprofits
• Full Form 990 for larger organizations

Importantly, Massachusetts requires you to submit a copy of your federal Form 990 alongside your Form PC filing. This requirement creates an integrated compliance system where your federal tax information simultaneously satisfies part of your state obligations.

For organizations filing in multiple states, coordinating federal and state submission deadlines becomes crucial. We recommend establishing a master calendar that tracks both federal and state requirements to ensure consistent, timely filing across all jurisdictions.

Massachusetts Department of Revenue tax exemption

Unlike some other states, Massachusetts does not require renewal of corporate income tax exemptions for nonprofits. Once established, your corporate tax exemption status remains in place without annual renewal requirements, provided you maintain your federal 501(c)(3) status.

Similarly, sales tax exemption in Massachusetts doesn’t require annual renewal. Nevertheless, your organization must keep its information current with the Department of Revenue (617-887-6367, mass.gov/dor). Organizations with 501(c)(3) status must present both a valid Certificate of Exemption (Form ST-2) and a properly completed Sales Tax Exempt Purchaser Certificate (Form ST-5) when making tax-exempt purchases (see Massachusetts AP 101: organizations exempt from sales tax).

Form ST-2 certificates remain valid for ten years (see Massachusetts AP 101). Approximately thirty days before expiration, the Department of Revenue will issue a new certificate if there are no changes in your organization’s status.

Common mistakes in tax filings

The IRS automatically revokes tax-exempt status after three consecutive years of non-filing (see IRS penalty and filing guidance for exempt organizations).

Additional common errors include:

• Submitting incomplete returns or missing required schedules
• Incorrectly classifying expenses by function
• Providing outdated or incomplete narrative responses
• Missing board member information
• Improper reporting of unrelated business income
• Failing to file consistently across multiple states for multi-jurisdictional organizations

Each mistake carries potential consequences, from monetary penalties to loss of tax-exempt status. For federal Form 990, penalties generally accrue at $20 per day, with higher per-day rates for larger organizations (amounts adjusted periodically by the IRS and subject to annual maximums) (see IRS penalty and filing guidance).

Establishing robust internal controls and documentation systems helps prevent these common errors. We recommend implementing a checklist system that covers all required elements and deadlines, particularly for organizations managing filings across multiple states with varying requirements.

Use the Right Filing Tools and Meet Deadlines

Successfully meeting Massachusetts filing requirements hinges on using the right tools and respecting crucial deadlines. Properly managing these aspects helps maintain your nonprofit’s compliance status and avoid costly penalties.

Using the Massachusetts Charity Portal

As of September 1, 2023, all charitable registrations and annual filings must be submitted through the Massachusetts Charity Portal; paper submissions are no longer accepted. The portal centralizes:

• Initial charity registrations
• Annual Form PC filings with attachments
• Payment processing
• Submission of additional documentation

First, create a free Charity Portal account using your individual email address. Subsequently, you’ll gain access to complete the Form PC online, provide electronic signatures, and submit required payments. Remember that Charity Portal accounts are linked to individual email addresses rather than organizations.

For nonprofits managing multiple filings and deadlines across different jurisdictions, specialized compliance services can provide centralized deadline tracking and filing management through secure client portals, ensuring consistent and timely submissions while coordinating various state requirements and renewal schedules.

Annual deadlines and automatic extensions

Form PC is due within 4.5 months after your fiscal year end. Organizations with a calendar year-end (December 31) typically face a May 15 deadline. Currently, charitable organizations registered and in compliance with annual reporting requirements receive an automatic 6-month extension without needing to file a written request (see the AGO FAQs for charitable organizations).

The annual nonprofit corporate report must be filed with the Secretary of the Commonwealth by November 1st each year. Foreign nonprofits (those incorporated outside Massachusetts) must file within 2.5 months after their fiscal year closes.

Compliance specialists can help organizations track these varying deadlines and coordinate filings across multiple states, particularly valuable for nonprofits operating in several jurisdictions with different requirements and schedules. We recommend establishing automated reminder systems to ensure deadlines are never missed.

Consequences of missing deadlines

Failure to file Form PC on time results in a late fee of $25 per month. For federal Form 990, penalties generally accrue at $20 per day, with higher per-day rates for larger organizations (amounts adjusted periodically by the IRS and subject to annual maximums). Organizations failing to file Form 990 for three consecutive years will automatically lose their federal tax-exempt status (see IRS penalty and filing guidance for exempt organizations).

Nonprofits that fail to file required annual reports with the Secretary of the Commonwealth may face administrative penalties, including potential revocation; reinstatement typically requires bringing filings current and paying applicable fees.

Beyond monetary penalties, missed deadlines can damage your organization’s reputation with donors, grantmakers, and the communities you serve. Maintaining timely compliance demonstrates responsible stewardship and organizational competency.

Conclusion

Maintaining compliance with Massachusetts nonprofit filing requirements remains essential for protecting your organization’s tax-exempt status and mission. Throughout this guide, you’ve learned the critical components necessary to keep your nonprofit in good standing with both state and federal authorities.

Timely submission of Form PC stands as your primary responsibility, accompanied by the appropriate IRS Form 990 and financial statements. The recent threshold changes now require CPA-reviewed statements for nonprofits with revenue between $500,000 and $1,000,000, while organizations exceeding $1,000,000 must submit fully audited financial statements. Additionally, you must file your annual corporate report with the Secretary of the Commonwealth by November 1st each year.

The Massachusetts Charity Portal significantly streamlines your filing process, though missing deadlines can result in substantial penalties. Late Form PC filings incur $25 monthly fees, while federal Form 990 penalties can accrue daily. Therefore, marking these critical dates on your calendar prevents potentially devastating consequences for your organization.

Many nonprofits benefit from the automatic six-month extension for Form PC filings without needing to submit a request. This extra time allows you to thoroughly prepare all required documentation and ensure accuracy across your submissions.

Remember that compliance isn’t merely about paperwork—it represents your commitment to transparency and responsible stewardship. When you consistently meet your filing obligations, you safeguard your organization’s reputation and ensure uninterrupted pursuit of your mission.

For nonprofits managing complex filing obligations across multiple states, working with experienced compliance specialists can provide valuable peace of mind. Professional filing services offer dedicated support for annual reports, charitable registrations, and deadline management. We help track varying renewal dates across jurisdictions and coordinate submission schedules, allowing your team to focus on mission-critical activities while maintaining full regulatory compliance.

Your nonprofit’s continued success depends on staying informed about these requirements and building reliable systems for timely compliance. This step-by-step guide serves as your roadmap to navigating Massachusetts nonprofit annual filing requirements effectively and confidently.

Frequently Asked Questions