990 Second Look

Sample report

What a Second Look looks like

This report was produced from a real, publicly filed Form 990. The organization's name, EIN and people have been removed. No client document is ever shown here.

Second Look: national education nonprofitFY2023 ยท Form 990

Summary

$10.4M in revenue against $9.9M in expenses, so the year ended about $566,000 ahead. Spending was 86.8% program, 10.4% management, 2.7% fundraising. The pressure is not on the spending side: it is that half the money came from one funder and the public support percentage dropped 14 points in a single year.

Findings

Needs attention: Public support fell from 49.9% to 35.4% in one year, about two points above the one-third floor a public charity has to hold.

Watch: One foundation gave about $5.2M, roughly half of all revenue for the year. Cash on hand covers about 3.5 months.

In good shape: Program spending was 86.8% of expenses, and the return reports an independent board with conflict of interest, whistleblower and compensation review policies in place.

Questions for the board

  1. What is the plan to widen the donor base before public support drops below the one-third floor?
  2. Does our largest funder have a multi-year commitment, and what happens to the budget if that grant shrinks?
  3. How much of our restricted cash is expected to be released for general operations in the next twelve months?
Real report from a public Form 990, with the organization's name, EIN and people removed. Coverage depends on the form, schedules and information provided.

What the report covers

  • Revenue mixWho funds you, how concentrated that is, and what it means if the biggest source walks.
  • Functional expensesProgram versus management versus fundraising, whether the split is defensible, and how it moved.
  • Public support testYour percentage, the trend, and how many years of runway you have before status is at risk.
  • Schedule L and related partiesLoans, transactions, and family relationships that funders and journalists look for first.
  • Governance answersThe Part VI questions where a "no" quietly costs you grants.
  • CompensationOfficer and key employee pay in context, and whether the approval process is documented.
  • Balance sheet healthMonths of cash, reserves, liabilities that deserve a question.
  • Three questions to askSpecific, in plain language, ready for the next board meeting.

Coverage depends on the form filed, the schedules included and the information provided. Not every section applies to every return.

Choose My ReviewCompare packages