My 4 Shortcuts for Reviewing a Funder’s 990-PF

Too busy to read a funder’s entire 990-PF? Here are my favorite shortcuts.

What is a 990-PF? Where do I find them?

A 990-PF is a tax document filed by a private foundation (PF) to report on its investment activities. Although the 990-PF is primarily a tax document, nonprofit organizations have found it to be an increasingly important element of their grant strategy: few private foundations have websites, and even fewer have competitive processes for their grants (and the number of foundations that accept applications is dwindling). By reviewing a foundation’s public tax document, nonprofits can gauge whether a funder is the right fit geographically, programmatically, and financially.

It’s helpful to have the foundation’s EIN (employer identification number) since that can ensure you’re looking at the correct funder. Using the EIN and/or the foundation’s name, use the IRS’s Tax Exempt Organization Search (free to use, no login required), ProPublica’s Nonprofit Explorer (free to use, no login required), Candid’s Foundation Directory (requires a login), or Instrumentl (affiliate link; requires a subscription). Be aware that some services have more recent 990s than others (I find ProPublica usually is the most up-to-date), and the IRS has been working through a backlog of tax documents since the start of the pandemic.

There are many explainers on 990-PFs out there (including a great one by Candid), and I encourage you to do additional research if you’re curious to learn more. Here are the top four things I review in each 990 I open. Note this isn’t in order of appearance on the form, but rather in the order I usually review each form. [And pro tip: if you use Instrumentl, most of this information is easily accessible on the funder’s profile, removing the steps required to download and scroll each 990-PF.]

#1 Basic information about the foundation

This information is at the top of page 1. In addition to the funder’s address and EIN, I find it helpful to know the foundation’s fiscal year and the fair market value of all the funder’s assets. If the foundation has a rolling deadline, take their fiscal year into account when submitting your LOI or proposal. A foundation is less likely to have time or financial capacity to fund your proposal toward the end of its fiscal year. The fair market value of the funder’s assets gives you a sense for how large the foundation is. $12 million in assets? Great. $12,000 in assets? Not so appealing.

#2 How to apply

On page 10, Part XIV, look for whether the box in section 2 is checked. If it is, this means the foundation “only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds.” While this doesn’t mean you can’t eventually be funded by this foundation, it will require relationship-building (if you have a connection - see #4 Contacts below). If the box isn’t checked, this indicates there’s an open application process, and there’s likely to be contact information for the foundation’s board or staff. If you’re lucky, it will even include a website address (if not, try page 5, Part VI-A). If there’s no contact information listed, it’s very possible the foundation doesn’t want solicitations at all.

#3 Past grantees

You can get an at-a-glance grant total on page 1, Part I, line 25, which gives a total for all contributions, gifts, and grants a foundation paid during the year. However, I go ahead to page 11, Part XIV, which lists all the grants and contributions paid during the year (section 3a; this matches the total on page 1) and those approved for future payment (section 3b).

You’re looking for geographic, programmatic, and financial fit for your nonprofit or programs. Look for organizations that are in your city or area and are doing the same type of work as your nonprofit. If it’s listed, review the purpose of the award (this isn’t always specified; often it just reads “charitable purposes” or something generic). Look at the funding amount: if most of the awards are $1,000 and your project needs a $25,000 grant, this might not be a good fit.

Because of technical glitches in the IRS system in recent years, some foundations’ grant contributions that are noted as “attached” aren’t actually included in IRS public data. If this is the case and a foundation’s granting history isn’t listed on their website, get creative: search for press releases, nonprofit Facebook pages, and so on to see what the foundation has funded in recent years.

#4 Contacts

Unlike government grants that prioritize transparent grantmaking and relationships won’t give you a leg up, foundations typically value relationship-building with grantees and aren’t required to be transparent in their decision-making process. Especially if the foundation says it doesn’t accept unsolicited funding requests (#2 How to apply), it’s important to make a connection between your staff/board and the foundation’s. If you can’t find a website for the foundation (which might be listed on page 5, Part VI-A), do the next best thing and go to page 6, Part VII in the most recent 990-PF for a list of the foundation’s trustees and highly-paid staff. Send the list to your board members, asking them to initiate a conversation if they have an existing relationship.

Remember: the 990-PF is a good place to start, but…

If a foundation doesn’t have an online presence, the 990-PF is a great place to start. You can get a sense of what the foundation has funded in the past, and comparing several years of 990 data can reveal giving trends. However! It’s not the be-all, end-all. Always confirm the application process with a trustee or staff member if possible, and trust the foundation’s website (if it has one) over the 990. Keep in mind you’re looking at a document prepared by a tax professional that is sometimes 1-2 years (or more) old.

Cover photo by New York Public Library on Unsplash