How to Access and Analyze 990 Forms: A Guide for Grantmakers and Philanthropists
As a grantmaker or philanthropist, it’s crucial to have a deep understanding of the organizations you fund. One vital source of information for nonprofit organizations in the United States is the 990 form, a document that provides key financial and operational characteristics of such organizations. When accessed and analyzed correctly, the 990 forms can help grantmakers and philanthropists make more informed funding decisions. Here’s a guide to accessing and analyzing 990 forms.
Introduction
The 990 form is a reporting tool used by nonprofit organizations to report financial and operational information to the Internal Revenue Service (IRS). It is an essential tool for grantmakers and philanthropists to assess the viability and efficiency of nonprofits that they fund. However, it is essential to have the right approach to access and analyze the 990 forms correctly.
Accessing the 990 Forms
The 990 forms are publicly available on the IRS website, where you can search for them using the organization’s name or its Employer Identification Number (EIN). Alternatively, you can use third-party platforms like Guidestar, Foundation Center, and Charity Navigator, which offer search tools of searchable 990 forms databases for free.
It’s best to have a broad-based approach to access the 990 forms of nonprofits in your areas of interest. You could gather 990 forms of organizations that align with your mission or focus area. This helps you identify trends, spot opportunities for collaboration, and identify potential grantees.
Analyzing 990 Forms
After accessing the 990 forms, the next step is analyzing them. Here are some key aspects to analyze:
1. Revenue and Expenses: Check the organization’s revenue and expenses section to know its funding sources and how it allocates its resources. This information helps you understand if the nonprofit is dependent on one source of funding or balances its income streams.
2. Governance: Review the governance section of the 990 form to know the organization’s structure, leadership, policies, and key committees. A well-governed organization with a strong board and policies assures you of better management and accountability.
3. Programmatic Information: Analyze the programmatic section of the form to understand the organization’s mission, goals, and how it measures its impact. This information will help you decide if the nonprofit aligns with your mission and objectives.
4. Conflict of Interest: The conflict of interest section of the 990 form helps you know if officers, directors, or key employees have any conflict of interest. This information can guide you on whether to engage or not with the organization.
Conclusion
Accessing and analyzing the 990 forms is an essential step in understanding an organization’s financial picture, governance, and programmatic activity. This information helps grantmakers and philanthropists make informed funding decisions, understand what drives success or failure, and better manage their resources. With the right approach and tools, accessing and analyzing the 990 forms becomes less arduous and more value-adding.
In summary, access the 990 forms of nonprofits in your areas of interest through the IRS website or third-party databases. Analyze the revenue and expenses, governance, programmatic information, and conflict of interest sections of the form. This way, you can make informed funding decisions, align your giving with your mission, and measure impact.
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