Best Free or Cheap Software for Filing Non Profit Form 990-PF?

Thanks for the suggestions! I've never heard of MyFreeTaxes - is this different from the regular Free File Alliance that's mostly for individual returns? And for FileTaxes.com, do they handle the state filing requirements too? Our foundation has to file in two states which makes everything more complicated.

MyFreeTaxes is primarily known for individual returns through their partnership with United Way, but they expanded their services to include some exempt organization returns a couple years ago. It's worth checking their current offerings as their nonprofit options change periodically. For state filings, FileTaxes.com does handle multiple state requirements, though there may be additional fees per state. If you're filing in two states, you might want to compare the all-in cost with your current TaxAct expense. Some states also have their own filing portals that might be more cost-effective than going through a third-party provider.

How does it handle investment reporting? Our foundation has about 15 different investments and manually entering all the transactions and calculating fair market value is what takes me forever each year.

I'm a bit skeptical about newer tax platforms handling specialized forms like the 990-PF correctly. Have you had any issues with the IRS accepting the returns? Our foundation can't afford any compliance headaches.

It has an import function that connects with most major investment platforms and banks, so you don't have to manually input transactions. It automatically calculates the fair market value based on the data imported, which saved me hours of work. You can also upload statements if you prefer, and it extracts the relevant information. Regarding compliance concerns, we've filed for two years using their platform without any issues. The forms are generated according to IRS specifications, and they guarantee acceptance. What impressed me was their built-in compliance check that reviews your return for common mistakes before submission, focusing on the specific areas the IRS frequently questions on foundation returns.

How exactly does this work? I don't understand how they can hold your place in line - doesn't the IRS just have one massive phone system? I need to ask questions about investment reporting on our 990-PF but can never get through.

Yeah right. Nothing gets you through to the IRS faster. I've tried everything and still spend 2+ hours on hold minimum. These services just take your money and you still wait forever. The IRS exempt org department is especially understaffed.

The system works by using their technology to wait in the IRS phone queue for you. You enter your phone number on their website, and when they reach an IRS representative, they connect the call to your phone. It's perfectly legitimate - they're essentially just waiting on hold so you don't have to. Regarding the skepticism, I felt the same way initially. The IRS exempt organization department is definitely understaffed, but that's precisely why this service is valuable. My last call, I would have waited 3+ hours according to the IRS message, but Claimyr got me connected in about 50 minutes. They don't promise instant access - they just save you from being physically tied to your phone for hours.

The IRS does have an e-filing portal for exempt orgs, but it's currently only for 990-N (e-Postcard) which is for very small organizations with gross receipts under $50K. For 990-PF, you still need approved software. I check their website every year hoping for an update but no luck yet.

Thanks for clarifying! That explains why I couldn't find the option on their site. It's frustrating that they require electronic filing but don't provide a free mechanism to do so for all types. Seems like a catch-22 for small foundations.

Wow, that's actually a really good price! Would you mind sharing what general region you're in? I'm in the midwest and most accountants I've talked to want at least $800-1000 for 990-PF preparation.

Thank you for sharing the IRS email subscription tip - that's exactly the kind of resource I never think to look for but would be incredibly useful! I just signed up and noticed they also have specific guidance documents for private foundations that I hadn't seen before. Your point about contacting state attorney general offices directly is spot-on. I've been relying solely on what the software tells me about state requirements, but getting it straight from the source makes so much sense. Do you happen to know if most states have dedicated nonprofit specialists, or is it usually just general inquiry lines? I'm also seriously considering taxr.ai after reading all the positive experiences in this thread. The investment reporting automation alone would probably save me 8-10 hours per year, which more than justifies any cost difference from my current setup. One question for the group - has anyone tried using multiple platforms in the same year to compare results? I'm wondering if it would be worth running a parallel preparation on a cheaper platform to verify accuracy before fully switching over.

Dylan, this is incredibly helpful - thank you for sharing your parallel preparation experience! The fact that you found discrepancies in minimum distribution calculations between platforms is exactly the kind of issue I worry about when switching software. It's reassuring to know both returns were ultimately accepted. Your point about strategic grant timing is something I'd never considered from a tax preparation perspective. Our foundation typically makes most grants in Q4, but spreading them out earlier in the year could definitely simplify our investment reporting. Do you have any specific recommendations on timing to maximize this benefit? I'm also intrigued by the Foundation Center workshops you mentioned. Even though I'm not in the northeast, I wonder if they offer virtual sessions or if similar organizations in other regions provide comparable resources. The idea of group software discounts through professional development opportunities is brilliant. One quick follow-up on taxr.ai - did you find their customer support responsive during filing season? That's always my biggest concern with newer platforms - getting stuck with a technical issue right before the deadline with no one available to help.

Regarding grant timing, I've found that making larger grants in Q1 or Q2 reduces year-end complexity because you're not dealing with as many investment transactions that need to be tracked through December. The key is ensuring you meet your 5% minimum distribution requirement early rather than scrambling at year-end. For taxr.ai customer support, I was pleasantly surprised - they have live chat during business hours and responded to my questions within a few hours even during busy filing season. They also have a pretty comprehensive knowledge base that covers most 990-PF specific scenarios. As for workshops, Candid (formerly Foundation Center) has expanded their virtual offerings significantly. I'd also check with your state's association of nonprofits - many offer foundation-specific training that includes software reviews and group purchasing opportunities. The National Center for Family Philanthropy also hosts webinars that sometimes include practical administrative topics like this. One more tip I forgot to mention: if your foundation has been filing consistently for several years, consider reaching out directly to software companies for volume discounts or loyalty pricing. I was surprised when TaxAct offered me a 30% discount just for being a returning customer when I called to discuss pricing options.

Nina, thanks for mentioning ProConnect Tax Online - I hadn't considered that option! The systematic interview process you described sounds really helpful, especially for those tricky compliance areas that don't come up often for small foundations. I'm particularly interested in your mention of the new cybersecurity requirements. I honestly wasn't aware these had gone into effect for foundation reporting this year. Could you elaborate on what specific requirements these are? Are they related to data protection during the filing process, or broader organizational cybersecurity policies that need to be reported on the 990-PF? This is exactly the kind of regulatory change that smaller foundations can easily miss since we don't have dedicated compliance staff. It sounds like something I should research immediately to make sure we're not inadvertently out of compliance. The Association of Small Foundations membership for group purchasing power is a great tip too - $200 annually is very reasonable if it provides ongoing software discounts plus other resources for foundation management.

Great question about the cybersecurity requirements! I should clarify - I was referring to the general cybersecurity disclosure requirements that apply to larger organizations, but I realize now that most small private foundations (especially those under $10M in assets) aren't subject to these specific reporting requirements on Form 990-PF. However, what I was really thinking about is the increased emphasis on data security when e-filing any tax returns, including 990-PFs. The IRS has been pushing for stronger authentication and secure transmission protocols, which is why I mentioned checking if newer platforms have built-in security features. For small foundations, the main thing to be aware of is ensuring your chosen software provider uses proper encryption for data transmission and storage. Most reputable platforms like TaxAct, taxr.ai, and others mentioned in this thread already meet these standards, but it's worth asking about their security certifications when evaluating options. Sorry for the confusion - I didn't mean to create unnecessary worry about new compliance requirements that don't actually apply to most small foundations! The core focus should remain on finding affordable, reliable software that handles the standard 990-PF requirements well.

Welcome to foundation management! Your timing question is really smart - most tax software providers do adjust pricing throughout the year, with the lowest rates typically in summer months (June-August) when demand is lowest. Since your filing deadline is November, you're actually in a good position to take advantage of off-season pricing. For your first year, I'd honestly recommend getting professional help to establish that baseline you mentioned. Even if you plan to do it yourself going forward, having a CPA prepare your first return gives you a template to follow and helps you understand what red flags to watch for. You can then use that professionally-prepared return as a reference when you transition to software in year two. One hybrid approach to consider: have a professional prepare the return but ask them to walk you through each section so you can learn the process. Many CPAs who work with small foundations are willing to do this for an additional modest fee, and it's like getting personalized training on your foundation's specific situation. Taxr.ai is definitely a solid choice based on what others have shared here, but don't feel pressured to jump into DIY immediately. The learning curve is real, especially for investment reporting, and getting it wrong can be much more expensive than paying for professional preparation in your first year.