What You’re Telling the World When Filing 990

Estimated reading time: 9 minute(s)

For nonprofits, Form 990 is more than just a tax document. With sites like GuideStar and the IRS website hosting your filing information for the world to see, it is important to utilize your Form 990 as much as a public relations document as a requirement. This provides a platform to showcase your nonprofit’s financial responsibility, governance ethics, and program accomplishments. Doing so shapes how donors, reporters, and grant makers perceive the organization, reinforcing its credibility and transparency. How can nonprofits leverage the form, not only to comply with regulations, but to clearly and confidently communicate their mission to the world?

Governance and Ethics Matter

Governance and ethics matter in a nonprofit because they form the foundation of credibility, accountability, and trust. Unlike businesses, which answer to shareholders, nonprofits answer to the public. Here’s why strong governance and ethics are essential:

1. Protects the mission
2. Builds public trust
3. Ensures legal and regulatory compliance 
4. Prevents mismanagement and fraud
5. Drives accountability and transparency
6. Strengthens organizational culture 
7. Enhances donor and grantmaker confidence

Your Form 990 is a Storytelling Opportunity

Journalists, donors, grantmakers, and watchdogs all read your public Form 990. Use it to clearly communicate your mission, values, and impact. Listed below are tips to help ensure you communicate your mission clearly. 

1. Program descriptions: Rather than solely listing numbers, explain the outcomes of contributions and their lasting impact on the community.  
2. Utilize the “Program Service Accomplishments” Section (Part III, Lines 4a-4c):  Turn numbers into impact narratives by including a short story description to accompany metrics.
3. Utilize Schedule O: Use Schedule O to explain growth, challenges, or new directions. Highlight partnerships, volunteer impact, or innovation.
4. Connect Financials to Mission Impact (Part VIII & IX): When explaining how much money was raised, be sure to include what the spending achieved.

Showcase Fiscal Responsibility and Impact

One practical step towards showcasing fiscal responsibility and impact is by demonstrating that in Part IX: Statement of Functional Expenses. This section reveals how well you manage donor dollars. It is also beneficial to show evidence of internal controls and audits in Parts XI-XIII. 

After filing Form 990, highlight your storytelling in your public communications. Link key metrics and quotes from the 990 in your annual report, social posts, or grant proposals.

Stay Compliant and Show Your Impact – File with Tax990

Form 990 is much more than a compliance requirement; it’s a powerful platform for nonprofits to share their story, demonstrate financial stewardship, and showcase ethical leadership. As the November 17th deadline quickly approaches, it is beneficial to your organization to make the most of Tax990’s support and resources. By guiding organizations through each section with user-friendly tools built with compliance checks, Tax990 helps ensure that financial data, governance practices, and mission-driven activities are presented clearly and accurately. 
File Your Form 990 Today!