The financial eligibility requirement applies ONLY to organizations that have been in operation for less than 5 years. If your organization is more than 5 years old you are eligible based on Longevity.
What is Longevity Eligibility?
Here is the requirement:
- Reporting at least one entire previous year of financials with $50,000 in annual revenue or $25,000 in net assets as shown on most recent 990, 990EZ, third-party audit, third-party review or third-party compilation.
Break it down:
What is one year? This means that at least one year must have passed from the time you received your Letter of Determination, and you have that one year accounted for in the accepted financial statements.
What are the accepted financial statements?
What if I file a 990N? A 990N is the Exempt Form for organizations and unfortunately includes no financial information. To supplement for this a third-party audit, third-party review or third-party compilation is required.
This article does a great job of explaining what these are and compares them. We will take any of these formats.
What if I had a fiscal sponsor? If you had a fiscal sponsor and recently received your determination letter, you can prove financial eligibility if your sponsor conducted an Audit that SPECIFICALLY mentioned your program with a breakout of your Revenues, Expenses, and Assets.
For other questions, please call Jenni Foxworth at 720.898.5920