Top Nine Reasons to E-file

1. Desktop990: Small nonprofits that fill out their own Forms 990 will have access to the same features that cost CPA firms thousands of dollars. CPA firms may use Desktop990, to see how it compares to their current software, and to try out e-filing.
2. Peace of mind: When you e-file, no critical documents get "lost in the mail." As soon as you submit your return, you receive an emailed receipt. You can also track the progress of your return and payment using a secure password.
3. Greater ease in multi-state filing: Regional and national charities that must register to solicit in more than one state can use Desktop990 to enter all the required information, and automatically fill out all the forms for participating states. Eventually, registration in multiple states will occur in one easy transaction, with one authorized wire transfer for registration fees.
4. Automatic error checks: Desktop990 will not allow a return to be submitted if any mandatory fields are left blank, or if there are arithmetic errors or inconsistencies.
5. Increased public trust: The public is more aware of the 990 than ever before. By increasing the accuracy and timeliness of returns filed, the nonprofit sector will also increase its own credibility.
6. Better regulation of 'bad apples': State charity officials and IRS agents spend 50% of their efforts on paperwork associated with charitable registration and filing. If e-filing becomes widespread, regulators will have more resources for law enforcement against fraudulent 'charities' and egregious behavior among a tiny fraction of nonprofits.
7. Advocacy: Timely, accurate electronic data on the nonprofit sector will allow state and industry umbrella groups to do their jobs better — advocating for public policies that benefits all nonprofits.
8. Research: Timely, accurate electronic data on the nonprofit sector will allow nonprofit sector scholars to conduct better studies and disseminate research reports on nonprofit trends and issues that more closely reflect reality.
9. Measuring Performance: Nonprofit organizations will be able to import timely, accurate IRS data into their own databases for analysis, including benchmarking and best practices. This valuable management information will lead to greater sophistication and progress in measuring outcomes, pockets of greater need in the community, gaps in local program service, salary and other expense comparison figures, best practices, etc.

Comments and questions may be sent via email to NCCS@ui.urban.org