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California - Income Tax: New Form to Be Filed by Nonprofit Organizations to Report Funds Received and Used for Campaign Activity

12.19.14

If you run a California nonprofit organization that engages in campaign activity, you may be required to file the new Form FTB 3589 with the California Franchise Tax Board.

Nonprofit organizations must file a Form FTB 3589 if:

  • They engage in campaign activity;
  • They receive public resources from a single or multiple local agencies, and those resources account for more than 20 percent of their annual gross revenue in the current fiscal year, or either of the previous two fiscal years; and,
  • They are not exempt under Internal Revenue Code Section 501(c)(3).

Form FTB 3589 must be filed on a quarterly or biennial basis. Quarterly reports are required when the nonprofit organization engages in campaign activity of at least $50,000 related to statewide candidates or ballot measures, or campaign activity of at least $2,500 related to local candidates or ballot measures. Biennial reports must be filed if the nonprofit organization engages in campaign activity of at least $100,000 on the state level or $10,000 on the local level.

It is necessary to file a Form FTB 3589 regardless of whether the nonprofit participates in campaign activity directly, or through the control of another entity. Quarterly reports must be filed 30 days after the end of each quarter and biennial reports 30 days after the end of each even year.

Form FTB 3589 is available for download at the FTB’s and can be mailed to Exempt Organizations Unit MS F120, Franchise Tax Board, P.O. Box 1286, Rancho Cordova, CA 95741-1286.

For more information contact at or 408-961-6362.