Form 990 Nonprofit Transparency
A nonprofit is like a house made of only windows and with no curtains. Everything done should be made known to the public in some way. The IRS Form 990 or Return of Organization Exempt From Income Tax Form, was designed to enhance transparency and promote tax compliance while minimizing the burden for the filing organization.
Prior to beginning work on this discussion forum,
· Read Chapter 4 from your textbook.
· Review Demystifying the 990-PF Links to an external site. .
· Find two Form 990 filed by different nonprofits using one of the following websites:
· GuideStar Links to an external site.
· This website is free but requires you to sign up to use. For help navigating this website, review this video: US IRS Form 990 Nonprofits Guidestar SearchLinks to an external site. .
· Nonprofit Explorer: Research Tax-Exempt Organizations Links to an external site.
· Watch Form 990 Tutorial – Full Links to an external site. .
Form 990 Nonprofit Transparency
In your initial discussion forum post,
· Include the links to the two Form 990s you found.
· Describe what each Form 990 tells you about the two companies you chose.
· Discuss your thoughts about whether you would consider donating to these nonprofits based on their Form 990 and why.
· Explain some of the benefits and drawbacks of Form 990 in terms of financial transparency, trust, and accountability.
Reminder:
Form 990 Nonprofit Transparency
Support your argument with at least two credible sources. For help finding and citing your sources, review the Scholarly, Peer-Reviewed and Other Credible Sources Links to an external site. tip sheet and APA Style Links to an external site. webpage.
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What are the links to the two Form 990s selected?,
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What information does each Form 990 reveal about the nonprofits?,
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Would you consider donating to these nonprofits based on their Form 990? Why or why not?,
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What are the benefits of Form 990 in promoting transparency trust and accountability?,
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What are the drawbacks or limitations of Form 990 in these areas?
Comprehensive General Response:
Links to Two Form 990s:
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American Red Cross — Form 990 Link
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Feeding America — Form 990 Link
Form 990 Insights for Each Nonprofit:
American Red Cross (ARC):
The ARC’s Form 990 highlights its vast national operations, substantial revenue through contributions, grants, and program service revenue, and detailed expense allocation. A significant portion of expenses goes towards program services, with detailed disclosure of executive compensation and governance policies. ARC’s investments in disaster relief, blood services, and community programs are well-documented, portraying a large-scale humanitarian organization with structured financial oversight.