What is a 990?
A Form 990 is the IRS-required tax return for nonprofits—and yes, it’s public. Think of it as your organization’s financial highlight reel. Donors, watchdogs, and curious supporters use it to see how responsibly you’re spending and whether your mission matches your money.
Do I need to File a 990?
If you’re a nonprofit, the odds are: yes. Annual filing applies to many organizations, including:
Common Filers
- 501(c)(3) charities (public charities & foundations)
- 501(c)(4) social welfare organizations
- 501(c)(5) labor unions
- 501(c)(6) trade associations
- 501(c)(7) recreational clubs
- 501(c)(15) small insurance groups
- Section 527 political organizations
- How many people are employed for the Fiscal Year(FY)?
- Key personnel: names, titles, compensation and benefits
- Officers and Board members – Any changes- include Name, title, addresses and hours worked. Note if voting or non-voting
- Donors giving $5,000+ (name, address, amount)
- Non-cash / in-kind donations
- Functional expense allocation (Program, Fundraising, Admin)
- Prior Year 990 diling
- Statement of Financial Position (Balance Sheet)
- Statement of Activity (P&L)
- Trial Balance
- General Ledger (detailed)
- Bank & investment statements
- W-2s and W-3
- 1099 NEC, MISC and 1096 filing documentation
Skipping it isn’t just risky—it can cost you your tax-exempt status. Yikes.
Your Year-End 990 Prep Checklist
Before your CPA starts asking questions (they will), gather this:
Key Organizational Info
Donor & Contribution Details
Financial Breakdown
The Functional Expense Worksheet classifies your expenses into Program, Fundraising, and Administrative categories using your Statement of Activity. Expenses are allocated based on how they support each function, often using percentages for shared costs like salaries or overhead. This breakdown helps demonstrate how resources are used, with a common benchmark of 65–75% of total expenses directed toward program activities to reflect strong mission alignment.
Financial Documents
Final Thoughts
A clean, accurate 990 tells your story—and builds trust faster than any marketing campaign. If your records feel… less “organized” and more “creative chaos,” now’s the time to act.
Contact BudgetEase today—because your 990 is already public… let’s make sure it’s also impressive.
