Understanding the File Form 990: A Comprehensive Guide
When it comes to understanding the financial health and operations of a non-profit organization, the File Form 990 is a crucial document. This form, filed annually with the IRS, provides a detailed look into the financial activities, governance, and programs of the organization. In this article, we will delve into the various aspects of the File Form 990, helping you gain a deeper understanding of its significance and how to interpret its contents.
What is the File Form 990?
The File Form 990 is an informational return that must be filed by most tax-exempt organizations in the United States. It is designed to provide the IRS and the public with a comprehensive overview of the organization’s financial activities, governance, and programs. The form is divided into several sections, each focusing on a different aspect of the organization’s operations.
Structure of the File Form 990
The File Form 990 is divided into several sections, each with its own set of questions and requirements. Here is a brief overview of the main sections:
| Section | Description |
|---|---|
| Part I | Basic information about the organization, including its name, address, and tax-exempt status. |
| Part II | Financial information, including revenue, expenses, and assets. |
| Part III | Information about the organization’s governance, including its board of directors, officers, and key employees. |
| Part IV | Details about the organization’s programs and activities. |
| Part V | Information about the organization’s fundraising and related activities. |
| Part VI | Additional information, such as a list of the organization’s top five contributors and any related organizations. |
Financial Information
One of the most important sections of the File Form 990 is Part II, which provides a detailed breakdown of the organization’s financial activities. This section includes information on the organization’s revenue, expenses, and assets, as well as any changes in its financial position over the reporting period. Here are some key elements to look for in this section:
- Revenue: This includes contributions, grants, investment income, and any other sources of income for the organization.
- Expenses: This includes salaries, benefits, program expenses, and other operating expenses.
- Assets: This includes cash, investments, property, and any other assets owned by the organization.
- Net Assets: This is the difference between the organization’s assets and liabilities, and it provides an indication of the organization’s financial health.
Governance and Management
Part III of the File Form 990 focuses on the organization’s governance and management. This section includes information about the organization’s board of directors, officers, and key employees, as well as any related party transactions. Here are some key elements to look for in this section:
- Board of Directors: This includes the names, titles, and compensation of the board members.
- Officer and Key Employee Compensation: This includes the compensation of the organization’s officers and key employees.
- Related Party Transactions: This includes any transactions between the organization and its board members, officers, or key employees.
Programs and Activities
Part IV of the File Form 990 provides details about the organization’s programs and activities. This section includes information on the organization’s mission, its programs, and the outcomes of its work. Here are some key elements to look for in this section:
- Mission Statement: This provides an overview of the organization’s purpose and goals.
- Programs and Activities: This includes a description of the organization’s programs and activities, as well as any outcomes or impact assessments.
