If you’re looking for ways to receive tax deductions on your tax return, an effective way of doing that is to donate to nonprofit charities who will use the funds to better their operation. However, before donating to a nonprofit organization, you’ll need to make sure they have a 501(c)3 status, which will mean your contribution can be used as a tax reduction. To find out such information, you’ll need to take advantage of a nonprofit lookup service. By using one you’ll also have access to the below information.
In Part “I” of the first page, you will find several pieces of financial information for the non-profit organization. The total revenue for the organization is displayed in the revenue section numbered “12”. Revenue and investment income information are also displayed in this section for your records, and in several other pages of the 990 form you’ll be able to view income and expenses in more detail, so you know what the organization is spending the funds on.
Name and Address of Principal Officer
Not only will you be able to find the official name of the organization, employer ID number, telephone number, business operating address, and other helpful information, but you’ll also be able to find the name and address of the principal officer so you’ll know who to get in contact with should you wish to discuss partnerships or other concerns you may have regarding the organization.
It’s important you pay close attention to the expenses section that starts from numbers 13 through to 19. The expenses section is the total costs of different expenses such as salaries and grants, so you’ll be able to gain an insight on what income generated is being spent and where. There are many sample 990 forms you can view online to give you a rough idea of how a nonprofit organization works.
One of the important points to lookup when you have access to 990 forms is the tax-exempt status of that nonprofit organization. There is a tax-exempt section with a checkbox located in section “I” on page one of the form. There are four statuses available in this section, 501(c)(3), 501(c) ( 6 ), 4947(a)(1) and 527. Make sure the organization is 501(c)(3) if you want a tax deduction for your contribution.
Other Essential Information
The 990 form provides all information regarding the operation of a nonprofit organization. The expenses and grants will need to be explained in detail so the form itself consists of more than 30 pages of information.
Depending on why you wanted to gain access to 990 forms for a non-profit organization will depend on what information you seek, but you’ll be able to obtain all information of the organization should you require it. The law now makes 990 forms public for non-profit entities because there are many non-profit owners that abuse the system in several ways, usually to avoid paying taxes with their own profit making businesses.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.