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You’ve heard of it. The dreaded IRS Form 990, the information return charitable organizations submit anually in order to retain their tax-exempt status. It’s tedious, right?
Only if you let it be. Did you know the From 990 is the primary information source for many funders? By definition, these are more sophisticated givers . . . foundations, corporations, and high net-wealth individuals.
Your 990 says a lot about your organization, good or bad. I’ve been preparing and reading these forms for decades, so today I’m highlighting 3 things I look for as I review 990s. I hope some of what I’ve learned over the years will be helpful to you and your organization.
First, I look for engagement. You have one opportunity to grab the attention of the funder. When they read it, are they thinking “this charity deserves a closer look”? Or will they simply flip the page? The 990 that engages the reader and draws them in deserves special attention. And funders will take notice!
Second, I watch for things that turn me off. One big yellow flag is inconsistency. The form asks for some of the same information in more than one place. If your answers are inconsistent, you will raise questions of credibility for your would-be funders. Donors are looking for organizations with clear, consistent messages. How does yours rate?
And third, I monitor how it makes me feel. Your IRS return can be either mechanical or engaging. Don’t just answer the questions just for the sake of answering the questions. Approach the form as if you were creating a marketing brochure for your organization. When prospective donors read what you have written, what will they think? How will they feel? Don’t allow your preparer to simply give rote answer when you have the opportunity to sell your organization. The reader may be someone you have never met face-to-face. Don’t you want your Form 990 to give them a reason to move closer? Make sure your responses are engaging and impressive.
Your Form 990 can either meet the minimum IRS requirements or it can be a tool to promote the great things your organization is accomplishing. You get to choose! I can tell you this, the decision you make will influence numerous donors, some of whom you’ll never meet. Don’t let them down. If so, they won’t call. They’ll simply turn the page and move on to someone else.
Your friend,
Kent Stroman,
America’s ASKing Coach
PS: If you’d like my assessment of your 990, here’s your chance. I’m offering a complimentary review for the first three organizations to respond. That’s a real-time, voice-to-voice evaluation of your Form 990. If that’s you, email me. Or call my personal cell phone (918) 914-2811.