Unless you are starting an unusual type of nonprofit such as a school or hospital, your expected annual revenues will likely determine which path you’ll take.
Confused? Chances are, if you have paid staff, rent a space, or a significant funding source you’ll break above $50,000, but most organizations remain below it in the first three years.
Many customers ask, “What if we raise more or less than $50,000?”
Don’t worry! The IRS relies on a "scouts' honor" system here - there is no penalty for actual revenues or expenses being higher or lower than what you estimate. You will simply report the amount raised to the IRS in May of the following year.
Other differences include: