A 990 is the tax return that nonprofits file instead of a 1040

A Form 990 is the annual tax return filed by tax-exempt organizations — mostly nonprofits, charities, and foundations. The IRS requires it instead of the standard business or individual tax return. It reports the organization's revenue, expenses, programs, and how leadership is paid. Unlike a 1040, a 990 is public: anyone can request and read it.

The form exists because tax-exempt organizations don't pay federal income tax, so the IRS uses the 990 to verify they're actually operating for their stated charitable, educational, or religious purpose and not funneling money to insiders. It's also how donors, grantmakers, and the public check whether an organization is spending money responsibly.

Most people encounter a 990 when they want to research a charity before giving, or when they work for a nonprofit and need to understand the organization's finances. If you volunteer or donate, you don't file a 990 yourself — the organization does.

Key Takeaways

  • Form 990 is filed by tax-exempt organizations to report income, expenses, and programs to the IRS, and it becomes public record.
  • Organizations with less than $50,000 in annual revenue typically file a simpler form called a 990-N (e-postcard) instead of the full 990.
  • The 990 shows how much the organization spent on its stated mission versus administrative costs and fundraising, which donors use to evaluate the charity.
  • You can search for any nonprofit's 990 on GuideStar (now part of Candid), the IRS website, or directly from the organization itself.
  • The important date to file is usually May 15 of the year after the fiscal year ends, though organizations can request an extension.

Who has to file a 990

Most organizations with 501(c)(3) status — the most common tax-exempt designation for charities — must file a 990 if they have gross receipts of $50,000 or more in a year. This includes donations, grants, membership fees, and revenue from programs or events.

Other tax-exempt organizations also file: 501(c)(4) social welfare groups, 501(c)(5) labor unions, 501(c)(6) trade associations and chambers of commerce, 501(c)(7) social clubs, and others. The threshold and form type vary by category.

Organizations below $50,000 in annual revenue file a much simpler form called a 990-N (the e-postcard), which takes minutes to complete online. They report only their name, address, website, and confirmation that they're still operating.

Religious congregations, government agencies, and certain other groups are exempt from filing altogether. If an organization claims it doesn't have to file, that claim is itself public information.

What information appears on a 990

The full 990 is typically 10 to 15 pages and covers several categories. The first section lists the organization's mission statement, the programs it runs, and how many people it served. It also shows whether the organization is still pursuing its original tax-exempt purpose.

The financial section reports total revenue (broken down by source: donations, grants, program revenue, investment income), total expenses, and the net change in the organization's assets for the year. It also shows how much was spent on the organization's primary mission versus administrative overhead and fundraising.

Part VII lists the five highest-paid employees and contractors, including their job titles and compensation. This is where donors and the public can see whether executives are paid market rates or whether money is being diverted to insiders.

The form also discloses related organizations, conflicts of interest, loans to officers, and whether the organization lobbied or engaged in political activity — all things the IRS monitors to may support tax-exempt status isn't being abused.

The difference between a 990, 990-EZ, and 990-N

The IRS offers three versions depending on the organization's size and complexity. The 990-N (e-postcard) is for organizations with less than $50,000 in annual revenue. It's filed online only and asks only for basic information: name, address, website, and confirmation the organization is still active.

The 990-EZ is for organizations with $50,000 to $200,000 in revenue and less complex finances. It's shorter than the full 990 (about 4 pages) and asks for revenue, expenses, and basic program information, but skips some of the detailed disclosures about executive pay and related organizations.

The full 990 is required for organizations with more than $200,000 in revenue or $500,000 in assets. It includes all the detailed sections: full financial statements, executive compensation, related-party transactions, and program descriptions. Some organizations file the full 990 even if they don't have to, because donors and grantmakers expect the transparency.

How to find a nonprofit's 990

The easiest place to search is GuideStar (now part of Candid), a free database where you can look up any nonprofit by name or location. The site displays the organization's mission, financials, and a link to read the actual 990 PDF.

You can also search the IRS Tax Exempt Organization Search tool on the IRS website. It confirms whether an organization has 501(c)(3) or other tax-exempt status, but doesn't always display the full 990 — you may need to request it directly from the organization or through a FOIA request.

Many nonprofits post their own 990 on their website under "About Us" or "Financials." If you can't find it online, you can contact the organization directly and ask for a copy — they're required to provide it within 30 days.

Some states also maintain their own nonprofit databases. If you're researching a local charity, your state's attorney general office or secretary of state may have additional financial filings.

What the 990 tells you about a charity's spending

The 990 shows the ratio of program spending to overhead, which many donors use to judge whether a charity is efficient. If an organization spent 80% of its budget on its stated mission and 20% on administration and fundraising, that's generally considered healthy. If it's 50-50, donors may question whether the organization is top-heavy.

However, the ratio alone doesn't tell the whole story. A small organization might need to spend more on overhead to function. A large organization with low overhead might be underfunding its programs. The 990 also doesn't show whether the programs actually work — only how much was spent on them.

The form does show whether the organization is growing, shrinking, or stable year to year. If revenue is declining but the executive director's salary is rising, that's a red flag. If the organization is building reserves (assets), that's sometimes good planning and sometimes a sign it's not spending money on its mission.

The 990 also reveals whether the organization has conflicts of interest — for example, whether board members or executives are also vendors or contractors to the organization, or whether the organization does business with related entities at inflated prices.

When and how nonprofits file the 990

The important date is usually May 15 of the year following the fiscal year end. Most nonprofits use a calendar year (January 1 to December 31), so they file by May 15 of the next year. Some use a different fiscal year and file accordingly.

Organizations can request an automatic extension, which pushes the important date to August 15. If they need more time, they can request an additional extension, but the IRS expects a reason.

Nonprofits file electronically through IRS Form 990-N/EZ/990 using approved software or a tax professional. The form is then made public within a few months — the IRS publishes it on its website and it appears in databases like GuideStar.

If an organization misses the important date without an extension, it faces penalties and can lose its tax-exempt status if it fails to file for three consecutive years. This is why the 990 important date is taken seriously by nonprofit boards and finance teams.

Frequently Asked Questions

Can I see how much a nonprofit's CEO makes?

Yes. The 990 lists the five highest-paid employees by name, title, and total compensation (salary, bonuses, benefits). If the CEO is one of the top five earners, their pay is public. If the organization has more than five highly paid staff, only the top five appear on the form.

What if a nonprofit doesn't file a 990?

If an organization is required to file and doesn't, the IRS can revoke its tax-exempt status. The organization then owes back taxes and loses the ability to accept tax-deductible donations. You can check whether an organization has lost status by searching the IRS Tax Exempt Organization Search tool.

Is the 990 the same as a nonprofit's annual report?

No. The 990 is a legal tax document filed with the IRS. An annual report is a narrative document the nonprofit publishes for donors and the public, often with photos and stories. Many nonprofits publish both, but the 990 is the official financial record.

Can a nonprofit hide information on the 990?

No. The 990 is a standardized form with required fields. However, nonprofits can sometimes provide minimal detail in narrative sections. If you have questions about what you see on a 990, contact the organization directly — they're required to explain their finances to donors and the public.

Do I need to file a 990 if I donate to a nonprofit?

No. Only the nonprofit files a 990. As a donor, you keep your own records of donations for your personal tax return, but you don't file a 990 yourself.