Understanding nonprofit organizations and their financial operations can be crucial, whether you're a donor, researcher, or simply curious. The 990 form is a key document that provides insights into a nonprofit's mission, programs, and finances. In this article, we'll explore how to easily perform a 990 form lookup, helping you access valuable information about these organizations.

What is a 990 Form?

The 990 form is an annual information return that most tax-exempt organizations in the United States must file with the Internal Revenue Service (IRS). It's essentially a comprehensive report card for nonprofits, detailing their activities, governance, and financial performance. This form allows the IRS and the public to evaluate whether the organization continues to qualify for its tax-exempt status and operates in accordance with applicable laws and regulations.

The primary purpose of the 990 form is to provide transparency and accountability in the nonprofit sector. By making this information publicly available, it encourages responsible stewardship of resources and helps donors make informed decisions about where to contribute. Think of it as a window into the inner workings of a nonprofit, offering a glimpse into its programs, leadership, and financial health.

Key sections of the 990 form include:

• Summary: Provides an overview of the organization's mission and activities.
• Governance: Details the organization's leadership structure, policies, and practices.
• Financial Information: Presents a detailed breakdown of the organization's revenues, expenses, assets, and liabilities.
• Program Service Accomplishments: Describes the organization's programs and their impact on the community.
• Compensation: Lists the compensation of the organization's officers, directors, and key employees.

Why Perform a 990 Form Lookup?

There are numerous reasons why you might want to perform a 990 form lookup. Whether you're a potential donor, a researcher, or someone interested in the nonprofit sector, accessing these forms can provide valuable insights. Here are some key reasons:

• Donor Due Diligence: Before donating to a nonprofit, it's essential to ensure that the organization is reputable and uses its funds effectively. Reviewing the 990 form can help you assess the organization's financial health, program effectiveness, and administrative efficiency. Look for information such as fundraising expenses, program expenses, and executive compensation to determine if the organization aligns with your values and expectations.
• Research and Analysis: Researchers and analysts often use 990 forms to study trends in the nonprofit sector, analyze financial data, and evaluate the impact of nonprofit programs. The 990 form provides a wealth of information that can be used to gain insights into the operations, challenges, and successes of nonprofit organizations.
• Competitive Analysis: Nonprofits can use 990 forms to benchmark their performance against similar organizations. By reviewing the 990 forms of their competitors, nonprofits can identify areas for improvement, learn about best practices, and gain a better understanding of the competitive landscape.
• General Curiosity: Sometimes, you might simply be curious about a particular nonprofit and want to learn more about its activities and finances. The 990 form provides a comprehensive overview of the organization, allowing you to satisfy your curiosity and gain a deeper understanding of its mission and operations.

How to Perform a 990 Form Lookup

Performing a 990 form lookup is easier than you might think. Thanks to online resources and databases, you can access these forms from the comfort of your own home. Here's a step-by-step guide:

1. Identify the Organization: Make sure you have the correct name and Employer Identification Number (EIN) of the nonprofit you're interested in. The EIN is a unique nine-digit number assigned by the IRS to identify tax-exempt organizations.
2. Choose a Reputable Source: Several online resources offer 990 form lookup services. Some popular options include:
   • IRS Website: The IRS provides a search tool on its website that allows you to find 990 forms filed by tax-exempt organizations. This is a reliable source, as the IRS is the official repository of these forms.
   • Guidestar: Guidestar is a comprehensive database of nonprofit information, including 990 forms. It offers both free and paid subscription options, with the paid option providing access to more detailed information.
   • ProPublica: ProPublica's Nonprofit Explorer is a user-friendly tool that allows you to search for 990 forms and other information about nonprofit organizations. It's a great option for those who want a simple and intuitive search experience.
   • Foundation Center: The Foundation Center provides access to 990 forms through its Foundation Directory Online service. This service is geared towards grantmakers and those interested in the philanthropic sector.
3. Enter the Organization's Information: Once you've chosen a source, enter the organization's name or EIN into the search bar. Be sure to double-check the spelling and accuracy of the information you enter.
4. Review the Search Results: The search results will typically display a list of organizations that match your search criteria. Click on the organization you're interested in to view its 990 form.
5. Download and Review the Form: You can usually download the 990 form as a PDF file. Once you've downloaded the form, take the time to review it carefully. Pay attention to the key sections mentioned earlier, such as the summary, governance, financial information, and program service accomplishments.

Tips for Analyzing a 990 Form

Once you've obtained a 990 form, it's important to know how to analyze it effectively. Here are some tips to help you make sense of the information presented:

• Focus on Key Metrics: Instead of trying to understand every detail of the form, focus on key metrics that are most relevant to your interests. For example, if you're a donor, you might want to focus on the organization's fundraising efficiency, program expenses, and executive compensation.
• Compare to Similar Organizations: To get a better sense of an organization's performance, compare its 990 form to those of similar organizations. This will help you identify strengths and weaknesses and assess whether the organization is operating efficiently.
• Look for Trends: Reviewing multiple years of 990 forms can help you identify trends in the organization's financial performance, program activities, and governance practices. This can provide valuable insights into the organization's long-term sustainability and impact.
• Pay Attention to Red Flags: Be on the lookout for red flags that could indicate potential problems. These might include excessive executive compensation, high fundraising expenses, or a lack of transparency in governance practices.
• Consult with Experts: If you're not sure how to interpret certain information on the 990 form, don't hesitate to consult with experts, such as accountants, financial advisors, or nonprofit consultants. They can provide valuable insights and help you make informed decisions.

Common Mistakes to Avoid

When performing a 990 form lookup and analyzing the results, it's important to avoid common mistakes that could lead to inaccurate conclusions. Here are some pitfalls to watch out for:

• Relying on a Single Year's Data: It's crucial to review multiple years of 990 forms to get a comprehensive understanding of an organization's performance. Relying on a single year's data can be misleading, as it may not reflect long-term trends or unusual circumstances.
• Ignoring the Qualitative Information: The 990 form includes both quantitative (financial) and qualitative (programmatic) information. Don't focus solely on the numbers; be sure to read the descriptions of the organization's programs and activities to get a full picture of its impact.
• Failing to Consider the Organization's Mission: When evaluating a nonprofit, it's important to consider its mission and the context in which it operates. An organization that serves a high-need population may have higher expenses or lower revenues than one that serves a more affluent community.
• Making Assumptions About Overhead: It's a common misconception that low overhead is always a sign of a well-run nonprofit. In reality, some organizations may intentionally underinvest in overhead functions, such as fundraising and administration, which can ultimately harm their long-term sustainability. Its very important to understand the overhead of the firm your looking for.
• Overlooking Related Organizations: Nonprofits often have related organizations, such as foundations or supporting organizations. Be sure to research these related entities as well, as they can provide additional insights into the organization's activities and finances.

Conclusion

Performing a 990 form lookup is a valuable tool for anyone interested in the nonprofit sector. By accessing and analyzing these forms, you can gain insights into an organization's mission, programs, finances, and governance practices. Whether you're a donor, researcher, or simply curious, the 990 form provides a wealth of information that can help you make informed decisions and support responsible stewardship of resources. So, go ahead and start exploring the world of nonprofit transparency – you might be surprised at what you discover!