How to read a Form 990
Start with Part I, the Summary, then read the detail behind it: Part VIII, the Statement of Revenue; Part IX, the Statement of Functional Expenses, which splits spending into program services, management and general, and fundraising; and Part X, the Balance Sheet, with beginning- and end-of-year columns. Part VII lists the compensation of officers, directors, trustees, key employees and the highest-paid employees and contractors. Smaller organisations file the shorter Form 990-EZ or the 990-N postcard instead, and private foundations file Form 990-PF.
By New Odyssey · Published · Markdown
The parts that hold the finances
| Part | What to read it for |
|---|---|
| Part I. Summary | The first page: a summary of the return, with the detail in the parts below |
| Part VIII. Statement of Revenue | Where the money comes from, line by line |
| Part IX. Statement of Functional Expenses | Total expenses split into Column (B) Program Services, Column (C) Management and General and Column (D) Fundraising |
| Part X. Balance Sheet | Assets, liabilities and net assets: Column (A) beginning of year, Column (B) end of year |
| Part VII. Compensation | Officers, directors, trustees, key employees, highest compensated employees and independent contractors |
Which form an organisation files
| Form | Who files it |
|---|---|
| Form 990-N (e-Postcard) | Gross receipts normally ≤ $50,000 |
| Form 990-EZ | Gross receipts < $200,000 and total assets < $500,000 |
| Form 990 | Gross receipts ≥ $200,000 or total assets ≥ $500,000 |
| Form 990-PF | Private foundations, regardless of financial status |
Churches, integrated auxiliaries of churches and certain other religious organisations are not required to file. The return is due by the 15th day of the 5th month after the end of the organisation's accounting period (15 May for a calendar year), with an automatic 6-month extension on Form 8868.
What is public
An exempt organisation "must make available for public inspection and copying its annual return" (for three years), under section 6104 of the Internal Revenue Code. For organisations other than private foundations and section 527 political organisations, the names and addresses of contributors do not have to be disclosed.
Getting the figures by EIN
The IRS publishes returns through its Tax Exempt Organization Search and bulk downloads. The Olympus US Nonprofit Financial Data API returns an organisation's revenue, expenses, assets and liabilities from Forms 990, 990-EZ and 990-PF by EIN, as the IRS SOI extracts carry them; see Is there an API for IRS Form 990 data?.
Questions
Which part of Form 990 shows how much goes to programs?
Part IX, the Statement of Functional Expenses: Column (B) is program services, Column (C) management and general, Column (D) fundraising.
Who has to file Form 990?
Exempt organisations with gross receipts of $200,000 or more, or total assets of $500,000 or more. Smaller organisations can file the 990-EZ or 990-N, private foundations file the 990-PF, and churches are not required to file.
Is a nonprofit's Form 990 public?
Yes. Exempt organisations must make their annual returns available for public inspection, though most do not have to disclose contributors' names and addresses.
Sources
- IRS: Instructions for Form 990
- IRS: Form 990 series: which forms do exempt organizations file?
- IRS: Annual exempt organization return: who must file
- IRS: Annual exempt organization return: due date
- IRS: Public disclosure and availability of exempt organizations returns
- Legal Information Institute: 26 U.S. Code § 6104