What is the purpose of Internal Revenue Service Form 990?

The purpose of Internal Revenue Service Form 990 is to serve as an annual information return for tax-exempt organizations. This form provides the IRS and the public with important details about the financial activities, governance, and compliance of non-profit organizations. It is a critical tool for maintaining transparency, as it requires organizations to disclose their revenue, expenses, executive compensation, and program services, thereby allowing stakeholders to assess the organization's financial health and adherence to its tax-exempt status.

The completion of Form 990 helps ensure that tax-exempt organizations operate in compliance with IRS regulations and can demonstrate their accountability to the public and their donors. By making this information publicly accessible, stakeholders can make informed decisions about their support and engagement with these organizations.