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Determining if Gross Receipts Normally $50,000 or Less

For purposes of IRS Form 990-N filing, a tax-exempt organization’s gross receipts are considered to be $50,000 or less if the organization:

  • Has been in existence for 1 year or less and received, or donors have pledged to give, $75,000 or less during its first taxable year;
  • Has been in existence between 1 and 3 years and averaged $60,000 or less in gross receipts during each of its first two tax years; and
  • Is at least 3 years old and averaged $50,000 or less in gross receipts for the immediately preceding 3 tax years (including the year for which calculations are being made).

Note that for the first year of existence, donor pledges (promises to give) are counted as gross receipts (even though the donation has not actually been received yet). For the subsequent years, the IRS makes no mention of including pledges.

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