Researching a Nonprofit: Financial Resources

Document

Why it’s important

Where to find it

IRS Publication 78

Confirms that the organization is eligible to receive tax-deductible charitable contributions

http://www.irs.gov/

Annual report

Includes an overview of the organization’s finances, including a breakdown of revenues and expenses, sources of income, and any changes over the past year (such as investments in infrastructure or the sale of assets)

The nonprofit’s website or GuideStar, which curates information such as annual reports and financial documents – but note that this database is not a comprehensive survey of all nonprofits

Form 990, a nonprofit’s tax return

Helps answer questions such as: “How much income did the filer receive and from what sources?” and “Who are the filer’s board members?”

For a guide to interpreting the Form 990, see: How to Read the IRS Form 990 & Find Out What It Means

The nonprofit’s website or GuideStar

The Form 990 is publicly available and required of all organizations with an annual revenue over $50K

Financial audit

Helps you to assess the organization’s financial security based on its cash situation. Footnotes prepared by the auditor can help the reader to interpret the balance sheet, income statement, and cash flow statement.

For more detail on financial audits, click here.

Request from the organization; sometimes included in the annual report