What is Form 990 and who files it?

• A. A corporate tax return for all entities.
• B. A state-level charity registration form.
• C. An annual grant report to donors.
• D. A yearly IRS informational return for nonprofits; the organization files Form 990.

Answer: (D)

Form 990 is the annual information return a tax-exempt nonprofit must file with the IRS. It provides details about the organization’s mission, programs, finances, governance, and compliance with tax rules, offering transparency to both the IRS and the public. The return is filed by the nonprofit organization itself, not by donors or outside entities. While many larger nonprofits use Form 990, smaller ones may file Form 990-EZ or Form 990-N (the e-Postcard), and private foundations file Form 990-PF. The key idea is that Form 990 is the yearly IRS informational return for nonprofits, filed by the organization.