3 Annual Filings Nonprofits Must Complete by January 31

Happy New Year! As your team jumps into January, it’s important to remember that the IRS filing calendar starts right away. For nonprofits, three major filings are due by January 31 each year. Missing these deadlines can cause penalties and create headaches for your team, so now is the time to prepare.

1. W-2s for Employees

Every nonprofit with employees must file W-2 forms to report wages paid during the prior year. Copies go both to the IRS and to your employees.

If you use a payroll service, they likely handle this filing for you. But don’t wait until the last minute—errors, printing problems, or technical glitches are common in January. Sending W-2s early is both good stewardship and good service to your staff.

2. 1099s for Contractors

If your nonprofit paid independent contractors $600 or more during the year (by cash, check, or ACH), you may need to issue them a 1099-NEC form. The same January 31 deadline applies.

Contractors could include guest speakers, event musicians, IT consultants, or janitorial services run by individuals. Payments made by credit card or PayPal are reported by the payment processor, not by your organization.

If you haven’t collected W-9 forms from your contractors, reach out now. You’ll need this information to issue their 1099 correctly.

We’ll be publishing a deep dive into 1099 rules this Thursday, January 8th, so stay tuned for a complete guide. For now, make sure you review your contractor payments and request any missing W-9s.

3. Donor Contribution Statements

Finally, nonprofits must provide donors with annual contribution statements so they can claim charitable deductions on their personal tax returns.

These statements should include:

• The total amount of cash contributions.
• Descriptions of non-cash gifts.
• Whether any goods or services were provided in exchange for the gift. If so, include the fair market value.

For example, if a donor bought a gala ticket that included dinner, you must reduce the reported donation by the fair market value of the meal. If nothing was provided in exchange, include the phrase: “No goods or services were provided in exchange for this donation.”

Don’t miss the opportunity to say thank you. Include a personal note or a story about the impact of their gift. This turns a compliance task into a chance to strengthen donor relationships.

Moving Forward With Confidence

January doesn’t have to feel overwhelming. With the right systems, you can meet your filing deadlines and start the year strong.

If your leadership team could use more guidance, I want to invite you to download 5 Steps for Nonprofit Leaders to Thrive. It’s free, and it gives you practical tools to build clarity, protect your team, and lead with confidence.

And if your nonprofit is facing bigger financial decisions—whether that’s setting contractor policies, deciding between a VA or staff hire, or preparing for a capital project—these are exactly the kinds of forward-looking decisions our team specializes in.

As Fractional CFOs, we help churches and nonprofits:

• Create more resources to do more good
• Translate vision into attainable financial reality
• Make strategic decisions based on actionable, real-time financial data

To share your mission with us and start the conversation, visit terisaclark.com/you.