For tax-exempt organizations, the IRS Form 990 serves as more than just an annual filing. It’s a key communication tool that reflects your mission, financial health, and accountability to the public. Especially considering recent tax reforms under the OBBBA, stakeholders are paying even closer attention.
1. Donors and Funders
Philanthropic partners use the 990 to evaluate whether your organization is financially stable and aligned with its stated mission. They focus on areas like:
- Revenue, expenses, and assets (Part I Summary)
- Allocation of resources to programs (Part III Program Service Accomplishments)
- Donor base diversity and reliance on major funders (Schedule A)
2. Regulators and Policymakers
Regulatory bodies review the 990 to ensure compliance with tax-exempt rules and to detect potential misuse.
3. Researchers, Journalists, and the Public
Beyond donors and regulator, the broader public relies on 990 data to assess transparency and accountability. Common focal points include:
- Leadership compensation and benefits (Part VII and Schedule J)
- Fundraising costs compared to returns (Schedule G)
- Broader trends in nonprofit governance and spending
Why This Matters Now
With tax reform changes raising the profile of nonprofit compliance, how you present your 990 has never been more critical. It’s a tool for building trust, securing funding, and demonstrating good stewardship.
A well-prepared 990 tells your story beyond the numbers. It signals credibility, responsibility, and alignment with your mission.
If you would like help reviewing how your 990 communicates your organization’s strengths, our team is here to support you.