IRS Form 990: Your Guide to Nonprofit Financials, Grants, and Compensation
The IRS Form 990, filed by tax-exempt organizations in the US, offers a wealth of information. Here's a breakdown of key sections, focusing on financials, grants, and compensation.
Part 7 reveals details about the position, average hours per week, and compensation of current and former executives earning over $100,000. Part 10, the Balance Sheet, provides a snapshot of assets, liabilities, pledges, loans, investments, and net assets or fund balances. Part 11, the Reconciliation of Net Assets, shows revenue minus expenses and fund balances at year's end. Part 12 indicates if financial statements were compiled, reviewed, or audited by an independent accountant. Schedules filed with Form 990 offer further insights into past five years of public support, donations, political activity, lobbying, fundraising, and compensation. Part 9, the Statement of Functional Expenses, breaks down grants and assistance paid, fundraising services, and other expenses. Finally, Part 8, the Statement of Revenue, outlines how the organization raised money and if it gained or lost money from fundraising events.
IRS Form 990 provides a comprehensive overview of a nonprofit's financial health, grants, and executive compensation. Understanding these sections can help donors, stakeholders, and the public make informed decisions.
