This area of the Form 990 (on both the 990 and 990-EZ) is a great opportunity for readers of the 990 to get an idea of how your organization is spending its money. The description you provide for each program service should include the program name and a succinct description of the program. The three largest program services info on the Form 990 can also be used to highlight some of your organization’s accomplishments over the past year. Did you ever have over one million people attend? Did you reach a donation goal? Did you help 1,500 kids/dogs/widows, etc.? If something major happened for one of your programs, be sure to include this in the description. A potential investor looking at your 990 might see that, and think it’s a wonderful accomplishment and want to support an organization that can achieve something so significant. They also may see it as something they would like to challenge you to do more with and back that challenge with financial support.

This description should also be reviewed each year to ensure that the information provided is current and relevant. The other part of the section of the Form 990 is the related grants and expenses. If you received a grant specifically to support the program, please be sure to make this information readily available to your accountant to ensure proper reporting on the 990. Also, when listing associated expenses, any directly related expenses to the program, including grants, should be segregated to improve the ease of compiling the information necessary for the 990.

Katie Thomas, CPA