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!