Eligibility: 501(c)(3) vs 990?

Nonprofits
1

Hi Everyone!

We have received inquiries lately about what it takes to be eligible for monday.com for nonprofit’s offerings-Our most asked question: Why not accept a 990 over a 501(c)(3)?

I’m here to help give some insight into why!

SO, WHAT’S THE DIFFERENCE

A 990 is a document that the IRS uses to capture information on tax-exempt organizations. Although nonprofits have to submit 990s during tax season, this form is used for ANY tax-exempt organization, not just nonprofits. These can include social clubs, hobby clubs, sports clubs, fraternal societies, and more!

However, a 501(c)(3) is dedicated to charitable organizations and organizations in the nonprofit sector. Organizations claiming 501(c)(3) status must 1) spend their income on activities that further their exempt purpose, which is a charitable cause, 2) have no earnings inured to any private shareholder or individual and 3) the organization cannot be an action organization.

These are clear delineations between some organizations who have a completed 990, but not a 501(c)(3)!

FULL ELIGIBILTY INFO

Now, a 501(3)(c) is not the only requirement for eligibility to our monday.com for nonprofits offerings. You can find on our website the full requirements for eligibility here: Nonprofits Eligibility | monday.com

And let me know below if you have any questions! :smile:

2

Hi Jasmine,

I was wondering if Monday was making any allowances for nonprofit status validation. We are a relatively new nonprofit (founded in 2020) and our lawyers are currently ushering our application through the IRS process, but we have been warned this could take up to a year with the backlog the IRS is currently working through. Do you have any recommendations on alternate ways that our nonprofit status may also be confirmed while we are waiting on finalization from the IRS?

Thanks,
Elizabeth

3

@elizabeth_upswing Hi Elizabeth! Thank you for reaching out about this. The quick answer is no, our eligibility (which includes successful validation) are required for NPO Pro Plan usage.

However, we understand that this process can be time consuming and we may have plan alternatives that you could use while you wait for the IRS validation! To move forward: We would need to take a look at your monday account to see what we could provide. Would you be able to shoot me an email (jasmineha@monday.com) with your monday.com url and the admin email on your account? We will then take a look at your profile and get you to the right person to help you out!