If you’ve ever been confused by your organization’s Form 990, you’re not alone. The Form 990 is the annual return most tax-exempt nonprofits file with the Internal Revenue Service (IRS) to report their finances, governance, and programs. Financial documents like these can feel dense, technical, and a bit removed from your mission. It’s easy to treat the 990 as a task to complete, file, and move on from.
But your 990 is more than a required filing for the IRS. It is probably the most visible document your organization produces. Donors, grantmakers, journalists, and others may review it through sites like GuideStar or ProPublica. It does more than report numbers; it shapes how people understand your mission and priorities
This guide walks through how to navigate the 990 with more confidence, and how to use it to better reflect your story and impact.
Read Along With Your Own 990
Pull up your organization’s most recent Form 990 and follow along as you read. You’ll get more out of each section below if you’re also referencing the real thing.
Picking the Right Form: 990-N, EZ, or Full
To begin, you need to know which version of the form the IRS expects. This depends on your gross receipts (total revenue) and total assets:
- If your gross receipts are normally $50,000 or less, you can file Form 990-N (the Postcard).
- If you’re a bit larger—generally under $200,000 in gross receipts and $500,000 in assets—you can usually file the shorter Form 990-EZ.
- Beyond that, you’ll file the full Form 990.
One important update to keep in mind: the IRS now requires e-filing for most organizations. A paper return could be treated as “not filed” at all. Most organizations must file by the 15th day of the fifth month after their fiscal year ends—May 15th for calendar-year filers.
The “Three Strikes” Rule: Miss your required filing—even the 990-N—for three consecutive years, and the IRS automatically revokes your tax-exempt status. Getting reinstated takes time, so set a yearly reminder now.
The “Three Strikes” Rule: Miss your required filing—even the 990-N—for three consecutive years, and the IRS automatically revokes your tax-exempt status. Getting reinstated takes time, so set a yearly reminder now.
The Stage is Yours (Parts I & III)
The first page of Form 990 provides a high-level summary, but Part III is where readers get the clearest picture of your work. It describes your program service accomplishments, which is your opportunity to explain what your organization actually does.
For arts organizations, Part III of Form 990 is especially important. The IRS treats revenue from performances, exhibitions, and similar activities as program service revenue. Reporting it reinforces that your artistic work is the core engine of your mission.
So rather than listing activities in general terms, focus on the results and who you served. Instead of noting you held five concerts, highlight the 2,000 students who attended, or how a community mural project brought new energy to a neighborhood. These details help readers connect your work to real impact.
The Director’s Commentary (Part VI & Schedule O)
Part VI covers governance—board oversight, key policies, and how your Form 990 is reviewed before filing. The IRS doesn’t require a particular governance structure, but many readers view these answers as indicators of accountability and strong internal practices. This section can help build confidence with donors and other stakeholders.
Schedule O gives you space to explain answers throughout the return. If something unusual shows up— say, a one-time jump in expenses—Schedule O lets you explain it, so readers aren’t left guessing what’s behind the numbers.
Add Your “Director’s Cut” with Schedule O: Anywhere a number might raise a question, add a short note here. A little context now saves your readers from guessing later.
Add Your “Director’s Cut” with Schedule O: Anywhere a number might raise a question, add a short note here. A little context now saves your readers from guessing later.
Follow the Money (Parts VIII & IX)
Part VIII shows how your organization brings in revenue, and Part IX shows how those resources are used. For many arts organizations, that’s a mix of grants, donations, ticket sales, and sometimes classes, workshops, or other program-related income.
Readers often look at art IX to see how much of every dollar goes to the art versus “overhead” (management and fundraising). Every organization has overhead, but it’s still worth aligning spending with mission. If a year looks different—because of new systems, added staff, or expanded programming—a bit of context in Schedule O makes the numbers much easier to understand.
Public Support: Proving You’re a Public Charity (Schedule A)
Schedule A is easy to skip, but it does important work: it shows the IRS that you still qualify as a public charity, rather than a private foundation.
Most organizations will complete either Part II or Part III of Schedule A, depending on how you’re funded. Some arts organizations rely mainly on donations; others mix contributions, memberships, ticket sales, and workshops. The formulas differ and can get technical, but the takeaway is the same: a meaningful portion of your support needs to come from the public, measured over five years. Under Part II, that usually means at least one-third of your support comes from donations and other public sources. Under Part III, public support also counts program revenue alongside contributions.
This is where it can get tricky. A few large gifts can look strong overall, but they don’t always count fully toward the public support percentage. So, while a major donor is always good news, a steady mix of smaller gifts, grants, and earned revenue can matter just as much.
For arts organizations, this is where mission and math come together. The same concerts, exhibitions, classes, and performances that serve your community also show that your organization is supported by the people it serves.
Special Forms for Special Circumstances
A few situations bring extra schedules into play. If your organization hosts a gala or auction that raises more than $15,000, you’ll likely need to complete Schedule G. One key detail: separating the donation portion of a ticket from the value of what the attendee receives, like dinner or entertainment).
If you maintain a collection or receive valuable donated items, such as artwork valued over $25,000, you may also need to complete Schedule M and provide additional disclosures.
These requirements can feel overly detailed, but they show that your organization handles funds and assets thoughtfully and transparently.
Protecting Sensitive Information: Remember that Form 990 is a public document. Before filing, take a careful look to make sure no personal information, such as Social Security numbers, has been included. The IRS generally won’t remove that information after the fact.
Protecting Sensitive Information: Remember that Form 990 is a public document. Before filing, take a careful look to make sure no personal information, such as Social Security numbers, has been included. The IRS generally won’t remove that information after the fact.
One Last Look: The Board’s Review
Before submitting your Form 990, give your board a chance to review it. The IRS asks about this process in Part VI, and it’s considered a strong governance practice. Beyond compliance, it helps ensure the year’s information—including how your organization is described in Part III—matches how leadership sees the year.
For the Artists You Work With
Individual artists file differently than organizations. Point them to our companion guide to make tax time less taxing for artists.
Start With One Page
Form 990 is a required filing, but it plays a larger role: it explains your work, your finances, and your accountability to the public. Your next step is simple. Take a fresh look at your most recent Form 990, especially the descriptions in Part III. If someone new to your organization read those sections, would they understand what you do and why it matters? If not, that is a great place to start next year. Once demystified, your 990 stops being a chore and becomes a story worth telling.