“Whoever is kind to the poor lends to the Lord, and He will reward them for what they have done.” Proverbs 19:17
Four Things Every Donor Should Check on a Form 990
A Quick Guide to Understanding Nonprofit Finances.
The IRS Form 990 is a public document that reports a nonprofit’s sources of funds and expenditures in a format that is revealing in some ways and begs questions in other ways.
When completed honestly and correctly, donors can learn most of what they need by reviewing a few key sections. You don’t need to read the entire document—just a few quick checks can reveal a great deal about how a charity manages its funds.
Like most tax returns, revenues and expenditures may be disguised, but at the same time, important information to donors is available. Further, as a public document, people may seek additional information from the organization.
We will provide links that help you locate a nonprofit’s Form 990 and review important details such as executive compensation, revenue, expenses, and other financial information.
Finally, for donors or employees who suspect potential misuse of charitable funds, there are lawful ways to report concerns. We will outline practical steps and resources to help guide you if you encounter such a situation.
1. How Much Money Does the Charity Recieve?
Part I – Summary
Look at:
Line 12 – Total Revenue
This shows the organization’s total income for the year and helps you understand the scale of its operations.
2. How Is the Money Spent?
Also in Part I – Summary,
Compare:
Line 13 – Program Service Expenses
Line 14 – Benefits to Members
Line 15 – Salaries and Compensation
Line 16 – Fundraising Expenses
A well-run charity typically directs the substantial majority of its spending toward program services rather than administration or fundraising.
3. What Are the Leaders Paid?
Part VII – Compensation of Officers, Directors, Trustees, and Key Employees
This section lists the compensation for senior leadership. Ask yourself whether the pay appears reasonable relative to the organization’s size and mission.
4. Are There Family or Business Relationships on the Board?
Part VI – Governance, Line 2
This line discloses whether board members or officers have family or business relationships with each other. Such relationships are not necessarily improper, but transparency helps donors understand how the organization is governed.
A Simple Rule
Follow the money. If most funds support the mission, leadership pay is reasonable, governance is transparent, and donors can give with greater confidence. When service remains the priority, stewardship is transparent, and donors stay informed, charitable work can fulfill its true purpose—helping those in need.
Where to Find a Charity’s Form 990
Form 990 filings are public records and can be viewed online for free. Two of the most widely used resources are:
Candid (GuideStar) – https://www.guidestar.org
Search by the charity’s name to view financial information and Form 990 filings.
ProPublica – Nonprofit Explorer – https://projects.propublica.org/nonprofits
This site provides free access to Form 990 filings and allows users to search by organization name or location. These tools allow donors to review a charity’s revenue, spending, executive compensation, and governance disclosures before making a contribution.
Charities Have No Owners
Keep in mind that charitable organizations are not owned by any individual or private group; rather, they exist to serve the public good. In this sense, a charity can be understood as being held in trust for the public.
Because a charity has no private owner, it cannot be inherited, sold, or passed down to family members. Instead, its mission and resources remain dedicated to the public benefit it was created to serve. The board of directors, along with all staff and volunteers, therefore serve as stewards of the organization’s mission and resources.
When Concerns Arise: Reporting Possible Misuse of Charitable Funds
Donors and employees who observe potential misuse of charitable funds should understand that there are lawful ways to report concerns. Responsible oversight helps protect both the public and the integrity of the charitable sector.
Start With the Organization
Many nonprofits maintain internal policies for reporting concerns. In some cases, issues can be resolved by bringing them to the attention of the organization’s board of directors or audit committee. Well-governed organizations typically maintain whistleblower policies that allow employees or volunteers to report concerns without fear of retaliation.
Reporting to the IRS
If there is reason to believe a tax-exempt organization is misusing funds, engaging in private benefit, or violating tax laws, concerns may be reported to the Internal Revenue Service. Reports may be submitted using Form 13909, Tax-Exempt Organization Complaint (Referral), which allows individuals to provide information about potential violations by a nonprofit organization.
Reporting to State Authorities
Charitable organizations are also overseen at the state level. Concerns about fraud, misuse of charitable assets, or deceptive fundraising practices may often be reported to the state Attorney General’s office, which typically regulates charitable organizations and fundraising activities.
Protecting the Public Trust
Whistleblowing is not about punishing organizations—it is about preserving accountability. Charities depend on public confidence, and transparency helps ensure that donor contributions are used for the purposes they were intended to serve. When donors remain informed and willing to ask questions, they help strengthen the integrity of the entire charitable sector.
JOLEE-JAFFA FOUNDATION FOR GOOD, INC is a nonprofit organization recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code. EIN: 41-3393578.
We are a 100% volunteer led organization. No board member, officer, or volunteer receives compensation of any kind. Donations are used exclusively to support those we serve, with only minimal administrative and operational expenses—such as insurance, compliance, or essential services—paid when necessary to responsibly carry out our mission.
All expenses are reviewed and approved by the volunteer board and are fully disclosed.