In this series, we will explore the various sections of the Form 990 to point out opportunities to apply best practices and highlight your organization’s impact and accomplishments. This series will increase your understanding of how the Form 990 information is used by the IRS and your resource providers.
Completing and filing the Form 990 is an important aspect of a tax-exempt organization's life cycle because it serves two functions for two important audiences.
- Informs the public -- The Form 990 informs the public about crucial aspects of your nonprofit. Most of the pages and tables are available for public inspection, including those describing executive compensation and program expenditures. Potential donors and grantors can, and many routinely do, look at an organization's Form 990 before making decisions about charitable giving. The media and nonprofit-watchdog groups may also check out 990s.
- Informs the IRS -- The Form 990 provides the IRS with information about your nonprofit's activities and financial status in order to demonstrate that your nonprofit still meets the qualifications for tax-exemption.
In this series, we will explore the various sections of the Form 990 to alert you of your opportunities and increase your understanding of how the information on this form is used by the IRS and your resource providers.