For nonprofits aiming to grow their funding, visibility and trust are everything. One often overlooked tool that can play a major role in increasing donations with Form 990 is the very document nonprofits file with the IRS each year. When used strategically, Form 990 isn’t just a compliance necessity, it’s also a marketing opportunity.
Why Form 990 Matters to Donors
Form 990 provides a transparent, detailed look into a nonprofit’s operations, governance, and financial health. Donors, especially major ones and institutional funders, often review these forms before deciding where to contribute. You can increase donations with Form 990 by ensuring it is well-prepared. This reassures potential supporters that your organization is responsible, impactful, and worthy of their investment.
Tips for Increasing Donations with Form 990
1. Highlight Your Mission and Programs Clearly
The mission statement and program descriptions are among the first things readers notice. Make sure these sections are concise, powerful, and updated to reflect your current activities and successes. Use them to tell a story about the change your organization is making in the world.
2. Showcase Financial Health
Donors want to know that their money will be used wisely. Clear reporting of your revenue, expenses, and asset management builds confidence. If your organization has a healthy ratio of program spending to administrative costs, Form 990 is the perfect place to show it.
3. Demonstrate Strong Governance
Transparency in governance practices. For example, disclosing board members, and oversight procedures, shows donors that your nonprofit takes accountability seriously. Highlighting these practices can make a big difference when trying to build trust.
4. Use Narrative Sections to Your Advantage
Parts of Form 990, like Schedule O, allow nonprofits to provide additional narrative explanations. Use this space to elaborate on major accomplishments, explain financial changes. Or spotlight innovative programs. A well-crafted story here can turn a passive reader into an enthusiastic donor.
5. Make Your Form 990 Easy to Find
Make sure that your nonprofit is harnessing the potential of increasing donations with Form 990 and not just filing this form away. Instead, post if prominently on your website and link to it in donor communications. Doing so sends a clear signal of transparency, letting potential donors easily see the solid foundation on which your organization is built.
Turning Compliance Into a Fundraising Tool
The reality is that increasing donations with Form 990 isn’t about changing the numbers. It’s about changing how you present the work you’re already doing. A thoughtfully prepared and publicly shared Form 990 can serve as a testament to your nonprofit’s impact, professionalism, and integrity.
Nonprofits that recognize the marketing power of Form 990 will be better positioned to earn trust, attract new donors, and strengthen their funding base for years to come.
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