How to Read a 990 Like It’s Your Job

HayDay Services is bringing you a series of “how-to” articles related to successful grant prospect research.

Part 5: Reading a 990

For the first 15 years of my career, I worked in local government. I could bore you for hours with my knowledge about federal grant processes, but even though I had heard of 990s, I had never paid attention to ‘em.

When I made the switch to consulting, I had a crash course in figuring out the private side of grant funding, and it wasn’t pretty. It took me forever to figure out what information I should seek out in the 990, and what parts I could zoom right on by during my initial research. Looking back, I wish I had asked someone to walk me through the document, step by step, as if I was a brand-new grant professional.

PART I

I always take a quick peak at this section, as it shows the overall revenue and expenses of a foundation. If you’re worried this foundation has closed up shop, this is the quickest way to help determine that by checking to see if their revenue total is now at $0. You can also quickly see how much money they disbursed during the fiscal year – and how much went to their own salaries and other expenses versus to nonprofits through contributions, gifts, and grants.

PART VII

Yes, I skipped a whole bunch of sections. You can always peruse in detail if needed later, but it’s not what I check at first glance. Part 7 lists all the board members and their five highest-paid employees, if they have employees. I don’t check this list for me, but rather copy this information to share with my client (or your own organization’s board and key staff). A great way to build a relationship with a funder is for someone within your organization who knows a foundation board member to reach out and introduce the nonprofit to said board member.

I learned growing up that it is often who you know that gets you a seat at the table – and that’s often true with foundation funding. I work for a client who gets a check every year from a foundation – not because we are a perfect match for that foundation, but because the chairman of the nonprofit has a brother who sits on the foundation board. I’m not saying that close of a relationship is necessary, but just pointing out how things sometimes work.

PART XIV

To me, this is the most helpful section. At least it can be, if a foundation fills it out well. In section 2 of this part of the 990, you can find:

• If the funder accepts unsolicited requests for funds – there is a box to check if they DO NOT accept unsolicited funding requests. Now, if this box is checked, it does not mean you are totally out of luck. It simply means that sending an application will likely get you nowhere. You’ll first have to get an invitation, which goes back to the “who does your organization know” at this foundation question. Or do you both know a third party willing to make an introduction. Or can your organization build a relationship – but that’s a post for another day.
• Contact information for the foundation – if the funder accepts applications, then you will usually find an address, contact name, and phone number for the foundation. Sometimes there is also an email address – which always makes me happy.
• How to submit an application – sometimes this section will include a link to a website with more details, which I find to be the most helpful. Other times they give detailed instructions on what to mail. Or sometimes they simply say to “mail a letter.” Your mileage varies with how helpful the information provided here may be, but for foundations with no websites, it’s the best you’re going to get unless you can reach a program officer.
• What the deadlines are – some funder’s have an annual application, some review applications quarterly, and others say they have no deadlines. If that’s the case, you can submit your application at any point during the year.
• If there are any restrictions on applicants – this is where funders might list geographic restrictions (like they only fund work in Texas), types of organizations they fund (only arts organizations), or specific focus areas (such as education or health and human services). More often than not, funders don’t get very specific here. For instance, they say they restrict funding to Texas, but when you look at their list of awardees you see they are all located in Houston – so clearly the restriction is more concentrated than the entire state.

Overall, this section can be extremely helpful or give you a vague sense of what the funder is looking for. There is no rhyme or reason to how much or how little information is here – it varies from funder to funder. In my experience, it is usually on the light side of details, but we take what we can get. (And if you are frustrated with a funder, or find one you love, remember you can review them on Grant Advisor so others know how it is to deal with said foundation.)

Section 3 of this section of the 990 is where the really juicy details are. It lists every organization that received funds during the year, the purpose of the grant/contribution, and the amount.

You get the name and address of each grantee. This helps you narrow down the funder’s geographic preference(s) and if your organization fits in the model. It also shows you the type of organizations they fund. For example, if you are a nonprofit K-12 school system and find a foundation in your area who says they fund education, you are going to be very interested. But if you review this section of their 990 and see that every grantee is a university, then it’s probably not the best fit after all.

Some funders list the purpose of the grant as a simple “general support” or “program support”, which honestly, doesn’t do any of us grant pros any good. But every now and then you get a foundation who gives some serious details. They may say something like – capital campaign investment for a new hospital in a rural community. Or maybe – program funding for a pilot project to provide mental health counseling to disabled veterans in Harris County.

I always like to look at the list of grantees to not only see if my organization fits the lineup, but to see if my organization knows anyone on the list. If I know someone who got a grant from a funder I’m interested in, I have no shame in calling them up and asking for the inside scoop. Most grant professionals are willing to help because they understand that together we make our community (and world) a better place. Sure, sometimes you get those who don’t want to play nice in the sandbox, but you never know until you ask.

THE PROBLEMS WITH 990s

990s can provide some helpful information, but they aren’t the greatest thing on earth. Here are a few downsides to be aware of as you are digging into your research.

Often, what you are looking at is a few years in the past. This blog is posted in May 2026 – and I’m still seeing many foundations that only have a 2023 990, but nothing newer. Yes, it is 2026, but foundations are just now working on audits of their 2025 year (depending on when their fiscal years begin and end) and it takes a while to get the documents from the IRS and out into the world.

Sometimes vital information is missing. If I had a dollar for every time I’d find the section of grant awards only to see the words “See Attachment X” but said attachment is nowhere in the document. I’ve looked at 990s from foundations who have that same issue going back 5 plus years. It’s hard to know if they’re a fit if you don’t have the relevant details.

Not every foundation uses the same 990 form. There is a version that does not include the details in Part XIV, Section 2 – detailing how to submit an application, restrictions, deadlines, etc. It’s beyond frustrating when you stumble across a funder with a 990 like this. If you want to learn more about this document, check out the article I wrote for the Grant Professionals Association’s blog HERE.

990s AND YOU

If you’re new to the world of private funding, I hope this was a helpful guide. If you know someone who could use this information, please share this article. Before you can find success with grant writing, you need to know which funders align with your organization’s mission and programs. A great way to understand that connection is through the details found in the 990.