Do Sororities Have to File Taxes? What Chapter Officers Need to Know
Many sorority officers are surprised to learn that they are typically required to file an annual return with the IRS. Because officer transitions usually occur every year, it is very common for this responsibility to fall through the cracks.
Failure to File Can Have SERIOUS Tax Implications
Failure to file can put your chapter at risk of IRS audits, revocation, and paying back taxes on revenue received during a period when your chapter’s operations were not considered tax-exempt.
Both social and professional sororities are typically required to file an annual Form 990-series return to report basic financial and organizational information to the IRS.
For most sorority chapters, that filing may be Form 990-N, also called the e-Postcard. Larger chapters may need to file Form 990-EZ or the full Form 990.
The important thing to remember is this: being tax-exempt does not mean you don’t have to file. A simple Form 990-N filing submitted once each year could help your chapter avoid late-filing penalties, reinstatement fees, or other tax consequences.
What IRS Form Does a Sorority Need to File?
The form your sorority files usually depends on the chapter’s gross receipts, total assets, and tax-exempt status. To begin answering this question, you need to know how much your chapter collects during the school year from dues, donations, fundraisers, and other sources.
Form 990-N for Small Sorority Chapters
Form 990-N, also called the e-Postcard, is generally used by small tax-exempt organizations with gross receipts normally $50,000 or less. Simply put, if your chapter brings in $50,000 or less from dues, donations, “pass-the-hat” collections, events, and other sources, it may only be required to complete a basic Form 990-N e-Postcard. This form does not contain detailed financial information and is not a traditional tax return. Think of it as an annual notice that lets the IRS know your chapter is still operating and wishes to maintain its tax-exempt status.
Form 990-EZ or 990 for Medium to Large Sorority Chapters
This is where things can get complex. If your chapter typically brings in more than $50,000 in a single year from dues, donations, fundraisers, and other sources, it may be required to file a more extensive return. Click Here to review the filing thresholds and determine which form your chapter may need to file.
How to File Your Sorority’s Taxes
1. Confirm Your Sorority’s Status
Start by finding out whether your chapter has its own EIN and tax-exempt status, or whether it is covered under a national sorority’s group exemption.
If your chapter is included in a parent organization’s group return, you may not need to file separately. If your chapter operates independently, it will likely need to file its own annual Form 990-series return.
Search your chapter’s EIN to determine whether it is eligible to file using our Free EIN Lookup Tool.
2. Choose the Correct IRS Form
Your sorority will usually file one of the following:
- Form 990-N: For small organizations with gross receipts normally $50,000 or less.
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000.
- Form 990: For larger organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more.
Choosing the right form is important because filing the wrong return can delay compliance or create issues for future officers.
3. Gather Your Financial Records
Before filing, collect your sorority’s financial information for the year, including:
- Member dues
- Fundraising income
- Event income
- Bank statements
- Expenses
- Vendor payments
- Officer information
- Beginning and ending balances
Keeping organized records makes filing easier and helps protect your chapter if questions come up later.
4. File by the Deadline
The due date for your organization’s annual filing is determined by its tax period. You can review our Filing Deadline page to determine when your organization’s return is due. You can also look up your EIN to determine the filing period on file with the IRS.
