Form 990 is an annual information return that most tax-exempt organizations in the United States are required to file with the Internal Revenue Service (IRS). This form provides the public with financial information about a nonprofit Org, and it’s an essential document for ensuring accountability and transparency in the nonprofit sector.

Key Information in Form 990

Form 990 contains a wealth of information about a nonprofit Org, including:

• Organizational Structure and Governance: Details about the Org’s mission, governance, and operational structure.
• Financial Data: Information on the Org’s revenues, expenses, assets, and liabilities.
• Programs and Accomplishments: Insight into the Org’s program services and achievements.
• Compensation: Data on compensation paid to key employees, officers, directors, and highest-paid employees.
• Compliance and Disclosure: Information regarding adherence to certain tax compliance and governance practices.

Core Sections

Part III, Statement of Program Service Accomplishments: Here, you’ll find detailed information about the programs and services offered by the nonprofit. 

Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors.

Part VIII, Statement of Revenue: This section shows where their funding comes from can provide insights into spending capabilities and investment choices.

Part IX, Statement of Functional Expenses: This part breaks down the expenses of the Org and how they allocate funds.

Future Employee or Donations

Examining a nonprofit Org’s Form 990 can be very important for a potential employee for several reasons:

Understanding the Org’s Financial Health: The Form 990 provides detailed information about the nonprofit’s revenues, expenses, and financial position. As a potential employee, understanding the financial health of the Org is crucial. It gives insights into its stability and long-term viability, which are important factors for job security and career growth.

Mission and Program Effectiveness: The form includes information on the Org’s mission and the programs it operates, and provides a window into how effectively the Org fulfills its mission.

Org Structure and Governance: Form 990 reveals the governance structure of the nonprofit, including its board of directors and key employees. Understanding the leadership and their backgrounds can give you insights into the Org’s culture, management style, and priorities.

Growth and Sustainability Prospects: By analyzing the trends in revenues, expenses, and program investments over several years, you can gauge the Org’s growth and sustainability. This information can indicate potential opportunities for professional growth and development within the Org.

Public Perception and Funding Sources: The Form 990 includes information about the sources of funding. Understanding where the funding comes from and how it’s being used can give you a sense of the Org’s public image, credibility, and the sustainability of its funding model.

Informed Decision-Making

Reviewing a nonprofit’s Form 990 should provide you with a comprehensive understanding of its financial health, operational effectiveness and culture. And it’s the kind of information that is invaluable when making an informed decision about donating and potential employment.