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Showing posts from May 22, 2016

Blog 2: Tips on How to Read Form 990

By Angela Bevacqua, Senior Communications Specialist
We’re back with the second half of our discussion about how to read Form 990. Our first blog explained the purpose and value of Form 990 and how the summary page can give us a quick snapshot of a nonprofit’s financial health. Now we learn how to dig a little deeper.

Q: Beyond the Form 990 summary page, what other sections can help a donor evaluate a nonprofit’s financial health?
The most common areas that are relevant to donors are:
Part VI: Governance, Management & Disclosure Sections A & B. These sections are a series of questions about a nonprofit’s board of directors and its policies. Section A discloses how the nonprofit is managed and governed. Section B discloses the policies the board has adopted. Many of the policies referenced, such as a Conflict of Interest policy, are considered best practices for nonprofits operations.
Part VIII: Statement of Revenue Types of Funding. This section tells you how an organization is fund…