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The IRS form 990 is required to be completed by most tax-exempt organizations (Form 990, 2005). Form 990s function to provide information about an organization’s programs and activities. This form helps to verify that organizations are operating in accordance with their purpose for being tax-exempt (Form 990, 2005). There have been changes made to the IRS form 990. Some of these changes are improving oversight, moving sections around, having clarity on some questions, and drilling down (Scot, 2009). I found the drilling down approach to be a positive change that was made to the form 990. This approach is the best to explain finances to those inquiring about the organization (Scot, 2009). The first page of the form 990 is summary information. This summary information tells the mission of the organization and what the organization is about.The following pages of the form 990 give more detail into the organization (Scot, 2009).

Transparency of nonprofit organizations can be enhanced, using the form 990 (Scot, 2009). Organizations should be transparent about what they are doing and how. Transparency can be shown by the organization being honest and open, when completing the form 990. The IRS Form 990 has a section about governance, management, and disclosure (Scot, 2009). This section shows whether or not the organization is doing what it should be doing. Whether or not the organization accomplishes its mission, is also found in this section.If organizations are honest, when filling the section out about governance, management, and disclosure, transparency can be enhanced (Scot, 2009).

References

Form 990, IRS e-file for charities and non-profits [electronic resource]. (2005). Washington,

D.C.: Dept. of the Treasury, Internal Revenue Service.

LaurenceScot. (2009, October 30). Excerpt from 2009 990 Seminar [Video File]. Retrieved from

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