Key Takeaways

  • Nonprofit tax returns (IRS Form 990) are public records that must be disclosed upon request to promote transparency and accountability.
  • These filings reveal key financial details, including revenue, expenses, executive compensation, grants, and mission-related activities.
  • Nonprofits must provide the three most recent Form 990 filings and their initial exemption application (Form 1023) to anyone who requests them.
  • Form 990 filings help donors, regulators, and watchdog groups assess how effectively a nonprofit uses its resources.
  • Accessing these records can be done through the nonprofit directly, the IRS, state agencies, or online databases like ProPublica’s Nonprofit Explorer.

Making nonprofit tax returns public record is a requirement of forming this type of legal entity. A nonprofit that fails to provide financial information when requested runs the risk of losing its legal status.

Are the Finances of a Nonprofit Public Record?

Nonprofits are required to provide the IRS several pieces of information to maintain their status. In addition to submitting financial statements, nonprofits must report the salaries of important employees such as officers and directors. The public is allowed to request financial information about nonprofits by submitting Form 990. Both the nonprofit itself and the IRS are legally required to provide this information once it has been requested.

During normal business hours, nonprofits must allow any member of the public who asks to inspect their records. The financial information of nonprofits should be public record for many important reasons. First, and most importantly, nonprofits should be scrutinized closely, despite their charitable works.

Many investigations have found nonprofits working contrary to their mission, using the donations that the receive for purposes other than charities by:

  • Transferring donations to fundraisers in pay-for-profit schemes.
  • Making questionable contributions to political campaigns with donations.
  • Gaining improper access to taxpayer funds by bribing officials with donations.

Making nonprofit tax returns public record allows watchdog organizations to detect corruption so that bad actors can be held accountable. Although the tax records of nonprofit organizations are generally required to be made available to the public, the IRS will not post this information on its site. These documents are only provided after a request has been made.

On the IRS website, it is possible to find a complete list of tax-exempt entities. Financial documents, however, must be accessed elsewhere. Subscription services are available that will allow people to access years' worth of nonprofit financial reports. You could also choose one of the many free solutions for accessing these records:

  • Visiting the nonprofit in person and inspecting their records.
  • Using the ProPublica Nonprofit Explorer.
  • Contacting the IRS and requesting copies of the documents.

By filing Form 990, it's possible to learn the compensation for different people in a nonprofit, including directors and trustees. It's also possible to learn which officer in the nonprofit is the most highly compensated. In nonprofit filings, there will also be information about the donations and grants that the organization has provided.

Other information that can be found in these filings includes the nonprofit's expenses, what investments the organization has made, and whether the nonprofit holds any property. Before 2015, the IRS was reluctant to publish the tax returns of nonprofit organizations. After a court ruling required the IRS to publish this information publicly, however, these 990 forms were published electronically in a format that is machine readable.

It's important to note that this information isn't actually hosted on the IRS website. Instead, the agency decided to publish this data via Amazon Web Services. By giving the public access to nonprofit tax returns, the IRS was able to comply with a component of the U.S. National Action Plan for Open Government.

Why Nonprofit Transparency Matters

The question of “are nonprofit tax returns public record” is rooted in the principle of public trust. Because nonprofits are tax-exempt organizations that rely heavily on public contributions and government support, they are held to higher standards of transparency. Making their tax filings accessible allows donors, regulators, and the general public to verify how funds are used and whether the organization is fulfilling its stated mission.

Transparency requirements also serve as an important safeguard against misuse of resources. By reviewing Form 990s, stakeholders can identify issues such as excessive executive compensation, unusual fundraising expenses, or unrelated business activities that could jeopardize an organization’s tax-exempt status. Public disclosure thus ensures nonprofits maintain their accountability not only to the IRS but also to their communities and donors.

What Information Nonprofit Tax Returns Reveal

Form 990 provides a comprehensive look into a nonprofit’s operations and financial health. The following information is typically available in these public filings:

  • Revenue sources: Breakdown of income from donations, grants, membership dues, program services, and investments.
  • Expenses: Details on program-related spending, administrative costs, and fundraising expenditures.
  • Executive compensation: Salaries, benefits, and other compensation paid to officers, directors, and key employees.
  • Grants and contributions: Recipients of grants and the amounts distributed.
  • Mission and activities: A narrative explaining how the nonprofit’s work aligns with its stated mission and public benefit goals.
  • Governance policies: Information about board members, conflict-of-interest policies, and organizational governance structures.

This detailed insight helps potential donors evaluate a nonprofit’s efficiency and impact, while journalists and watchdog organizations use the data to identify fraud or misuse of funds.

Where to Find Form 990 for a Nonprofit

IRS rules for disclosure dictate that nonprofit organizations must make available their annual Form 990 returns for the most recent three years. This disclosure requirement also applies to Form 1023. A nonprofit must file this form to achieve its status as a tax-exempt organization.

If you wish to inspect a nonprofit's Form 990, there are several options you can choose. You should be aware, however, that there is typically a delay between the end of a fiscal year and when the tax return will be published online. This delay can be from a year to 18 months.

The simplest solution for accessing Form 990 returns is to visit the Attorney General or Secretary of state website for the state where the nonprofit was originally formed. In some states, these documents are published online as soon as they are available. In other states, you will need to request these forms individually.

If you live in the same state as the nonprofit, you may want to request their 990 returns directly. If you make a request in person, the nonprofit is required to comply right away. Written request will be fulfilled in 30 days.

Legal Requirements for Disclosure

IRS regulations mandate that nonprofits provide copies of their three most recent Form 990 returns and their original exemption application (Form 1023) to anyone who requests them, either in person or in writing. Organizations must make these documents available immediately upon an in-person request or within 30 days of a written request.

Failure to comply with these disclosure requirements can lead to financial penalties and reputational damage. In addition, the IRS can revoke a nonprofit’s tax-exempt status if it fails to file Form 990 for three consecutive years.

Some exemptions exist. Certain religious organizations and smaller nonprofits may not be required to file Form 990, but most 501(c)(3) entities are subject to these transparency laws. Even for exempt organizations, maintaining voluntary disclosure practices can strengthen donor confidence and public credibility.

How to Use Form 990 Data Effectively

For donors, journalists, and nonprofit professionals, Form 990 is more than a legal requirement—it’s a valuable analytical tool. By reviewing a nonprofit’s revenue and expense trends over several years, stakeholders can assess its financial sustainability and program effectiveness. Large discrepancies between revenue and program spending, for example, may raise concerns about operational efficiency.

Additionally, many grantmakers and foundations require applicants to submit their most recent Form 990 as part of the vetting process. Understanding how to read and interpret this data can therefore improve a nonprofit’s chances of securing funding and demonstrate its commitment to accountability.

Frequently Asked Questions

  1. Are nonprofit tax returns public record?
    Yes. Most nonprofits must make their IRS Form 990 filings and exemption applications available to anyone who requests them.
  2. What details are included in a nonprofit’s Form 990?
    Form 990 shows financial data such as revenue, expenses, executive compensation, grants, and mission-related activities.
  3. How far back can I request a nonprofit’s tax returns?
    Nonprofits are legally required to provide their three most recent Form 990 filings and their initial Form 1023 upon request.
  4. Are any nonprofits exempt from filing Form 990?
    Certain religious organizations and smaller nonprofits may be exempt, but most 501(c)(3) entities must file annually.
  5. How can I access nonprofit tax returns online?
    You can request them directly from the nonprofit, obtain them from the IRS, or search public databases like ProPublica’s Nonprofit Explorer.

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