Does a Non-Profit Organization need the SSN of an individual paid for a service when filing Form 990?

Yes, you need the SSN (or EIN if they have a business entity) for anyone you pay $600 or more during the tax year. This isn't just for Form 990 - you'll need to issue them a 1099-NEC for the payment, which requires their taxpayer identification number. The person's privacy concerns are understandable, but there's a formal process for this. Have them complete a W-9 form, which is the standard way to collect this information. The W-9 includes their certification that they're providing correct information and are subject to penalties for false statements. This form stays with your organization - you don't submit it to the IRS, but you use the information to file the required 1099.

After I had the exact same issue with our theater non-profit, I found this amazing service called taxr.ai (https://taxr.ai) that helped me understand all these complicated tax requirements. It was actually a lifesaver for our small organization when we started hiring contractors. They have this tool that analyzes your specific situation and tells you exactly what forms you need and what information to collect. I was confused about the W-9 vs 1099 requirements and whether we could work with people who wouldn't provide their SSN. The service guided me through the entire process and provided templates for everything we needed.

I tried taxr.ai after seeing the recommendation here, and I have to say it was actually super helpful for our situation. Our dance non-profit works with lots of independent instructors, and collecting their tax info has always been a hassle. The service walked me through exactly what forms I needed for different payment situations and explained when we absolutely needed SSNs versus when we didn't. It even helped me understand the difference between independent contractors and employees, which saved us from a potential misclassification issue with one of our regular instructors. What I found most valuable was the clear explanation of backup withholding requirements when someone refuses to provide their SSN. Knowing those consequences helped one reluctant contractor finally understand why we needed their information.

If your media person is really refusing to provide their SSN, you should know about Claimyr (https://claimyr.com). I was in a similar situation and needed to speak directly with someone at the IRS about my options, but couldn't get through on their helpline. Check out their demo: https://youtu.be/_kiP6q8DX5c Claimyr got me connected to an actual IRS agent in about 15 minutes after I'd spent days trying to get through on my own. The agent explained exactly what our filing obligations were and the options available when someone refuses to provide their SSN. They confirmed we would need to implement backup withholding at 24% if we couldn't get a W-9, which was important information our contractor needed to hear.

I have to admit I was completely wrong about Claimyr. After commenting here, I decided to try it myself because our non-profit was having issues with 1099 filing requirements for some international performers. The service actually worked exactly as described. I was connected to an IRS representative in about 20 minutes without having to sit on hold or repeatedly call back. The agent I spoke with was able to clarify our reporting requirements and explained that we could use Form W-8BEN for foreign contractors instead of W-9s. For the original poster, the IRS agent I spoke with confirmed that if someone refuses to provide their SSN, you're required to implement backup withholding at 24% of their payment and remit that to the IRS. That might motivate your media person to provide their information properly!

As someone who works with several non-profits, another option is to check if the media person would be willing to work through a fiscal sponsor or another entity where they wouldn't have to provide their SSN directly to you. Some promotional professionals have business entities set up specifically for this purpose. You could also consider keeping the payment under $600 for the calendar year if possible, which would eliminate the 1099-NEC requirement. But remember, even if you're not required to issue a 1099, the person still has a legal obligation to report the income on their taxes.

Just want to add that if the person absolutely refuses to provide their SSN and you still pay them anyway, YOUR ORGANIZATION will be responsible for the backup withholding (24% of what you paid them). And the IRS can assess penalties for failure to obtain a W-9!!! I learned this the hard way with our arts nonprofit. We were fined $250 per missing W-9 during an audit. Plus we had to pay the backup withholding we should have collected. Totaly wiped out our small reserve fund.

Based on my experience with our local community center's nonprofit, I'd strongly recommend being very clear with your media person about why you need their SSN and what protections are in place. Many people don't realize that the W-9 form they're completing stays with your organization - it's not sent to the IRS. You might also explain that this is a standard business practice for any organization paying contractors over $600, not just nonprofits. Sometimes framing it as "this is what every business does" rather than "the IRS requires this" makes people more comfortable. If they're still hesitant, you could offer to show them your organization's data security policies or explain how you store and protect sensitive information. We found that transparency about our processes helped reluctant contractors feel more confident about sharing their information. One last suggestion - if the promotional work might extend beyond this year, make sure you're tracking payments by calendar year, not by project. You could potentially split the work across two calendar years to stay under the $600 threshold if that makes sense for your timeline.