Rethinking Your 990: It’s a Marketing Tool, Too!

Wrong. Your 990 filing tells a story – and lots more folks are reading it than you may realize.

Did you know that your 990 tax filing is immediately posted online for everyone to see once you file it with the IRS? Did you know that you are legally required to provide it to any member of the public who may ask for it and you cannot ask why? Did you know that it has become standard protocol for foundation and corporate donors, government contractors, prospective board members, and financial institutions to view your 990 before investing in or partnering with your organization?

In their article, “Telling the Not-for-Profit Story Through Form 990,”  Marian Butler, CPA, Ph.D. and Brian Butler, identify four (yes, 4!) sections of the 990 and 990EZ that allow nonprofits to write narratives to better convey the value and importance of their mission and programs. Unfortunately, most of the CPAs who prepare the tax forms are not well versed in their clients missions and programs and many will simply copy a few lines of text from a website or re-enter language that has been used in your organization’s filings for years and is no longer relevant or accurate.

Remember, it is a best management practice that all nonprofit board members review and approve their organization’s tax filing prior to finalizing and submitting it to the IRS. When reviewing this year’s tax forms, read the narrative sections carefully and, if necessary, provide your CPA with more accurate or compelling language that will resonate with a wider audience. (And, if the language in the form is outdated and was taken from your website, make sure to update the website, too!) If possible, ask a marketing professional to assist you in crafting the narratives and never miss another opportunity to educate your community on the importance of the work you do!

For more tips on how to better market your organization through your Form 990 tax filing, read the full article here. 

NOTE: Only the 990 EZ and 990 include the narrative sections. If your nonprofit generates less than $50,000 in revenue per year, you will use the 990N. However, you have an opportunity to tell a story with your tax filing, too. Your 990N will automatically be uploaded to guidestar.org and you may logon to the website and post narrative information that enhances the limited information included in your abbreviated tax filing. Contact Spokes if you have questions on how to update your guidestar.org profile.