A practical guide to the 990, budgets, audit reports, and more.
Transparency isn’t just a buzzword in the nonprofit sector, it’s a foundation for trust, accountability, and lasting impact. But for many organizations, knowing what and how to share can feel overwhelming.
In this guide, we’ll break down the top five financial documents every nonprofit should consider making accessible, especially to donors, board members, and the public. Whether you're just getting started or looking to refine your approach, these tools will help build clarity and confidence around your finances.
1. IRS Form 990
Why it matters:
The Form 990 isn’t just a tax document, it’s your organization’s financial snapshot and story, all in one. It shows how funds are raised, spent, and governed.
What to share:
- Most recent Form 990
- Prior years for context, if possible
- Include a brief explanation for donors or supporters unfamiliar with it
How to share it:
- Post on your website (ideally under an “Accountability” or “Financials” page)
- Include links in donor communications or annual reports
- Upload to nonprofit databases like GuideStar and Charity Navigator
2. Annual Budget
Why it matters:
A clear, well-organized budget communicates your priorities. It shows where resources go and how they support your mission.
What to share:
- Final approved budget for the current fiscal year
- Narrative or notes highlighting key programs and allocations
- Comparison to actual results, if available
How to share it:
- As part of an annual report or stewardship letter
- In board packets and donor presentations
- Simplified version for public viewing on your website
3. Audited Financial Statements (or Reviewed/Compiled Statements)
Why it matters:
Audits and reviewed statements offer third-party assurance that your records are accurate and compliant with accounting standards.
What to share:
- Most recent audited or reviewed financial statements
- Auditor’s report and notes (especially if clean)
- Management response to any findings, if applicable
How to share it:
- Publicly on your website for larger organizations
- Privately with major donors, grant makers, or partners
- Include highlights or visuals in donor impact reports
4. Statement of Financial Position & Activities
Why it matters:
Also known as the nonprofit balance sheet and income statement, these documents provide a real-time look at your financial health.
What to share:
- Condensed versions that are easy to read
- Year-over-year comparisons to show trends
- Brief commentary or context (e.g., new grant received, lower program costs)
How to share it:
- In quarterly newsletters to key stakeholders
- As part of a “financial dashboard” for board members
- Internally to foster a culture of openness among staff
5. Annual Report or Impact Report
Why it matters:
This is your opportunity to combine narrative and numbers, showing the difference your financial stewardship is making.
What to share:
- Program accomplishments linked to budget spending
- Donor acknowledgments and revenue summaries
- Visuals like charts, infographics, and testimonials
How to share it:
- As a downloadable PDF or interactive webpage
- Include links in donation receipts and thank-you emails
- Share on social media with graphics and short excerpts
Final Thoughts: Start Simple, Stay Consistent
You don’t have to post every report under the sun but sharing a few key documents, consistently and clearly, can significantly boost your credibility and connection with supporters. If you're unsure where to begin, start with your 990 and budget, then build from there.
Want help organizing your nonprofit’s financial reports or preparing board-ready documents?
Anchor Hill Accounting offers fractional accounting services tailored to small and mid-sized nonprofits. Reach out for a free financial check-in. No pressure, just clarity.