Operating a nonprofit organization involves more than just fulfilling legal requirements. Tactically grabbing every opportunity to enhance transparency, attract supporters, and amplify your mission is essential to sustain. One such vital opportunity lies within Form 990. Form 990 might be a powerful prospect for enhancing your nonprofit’s brand and reputation.
This blog aims to help you with some key strategies to build your organization’s brand.
How Does Form 990 Help You Build Your Organization’s Brand?
As you are likely aware, Form 990 serves as the IRS annual tax reporting requirement for nonprofit and tax-exempt organizations. In addition to its fundamental role in providing financial data to the IRS, Form 990 provides an opportunity to showcase your organization’s achievements, how funds are utilized, and the community impact achieved.
Beyond serving IRS tax compliance, these forms are open for public disclosure, offering a transparent view of your organization’s operations. Embracing this prospect could effectively enhance your organization’s reputation and strengthen your brand in the community.
Optimizing Your 990 Form
When it comes to building a nonprofit brand, one of the key steps is optimizing your Form 990. Here are some strategic ways to utilize Form 990 effectively to enhance your organization’s brand.
Tell Your Story
One of the most compelling aspects of Form 990 is its narrative sections, particularly Part III and Schedule O. Use these sections to tell your nonprofit’s story effectively. Highlight key achievements, innovative programs, and the impact of your initiatives on the community you serve. Instead of merely listing program expenses, describe how these initiatives directly align with your mission. For instance, if your nonprofit focuses on education, instead of merely listing educational programs, describe how your education programs have impacted society.
Highlight Achievements and Impact
Detail the specific benefits and impacts of your initiatives in the narrative section of Schedule O. Quantifying your impact through metrics such as the number of individuals served, and the improvements made might highlight the effectiveness of your organization’s efforts. This approach not only fulfills IRS requirements but also helps to position yourself as a figurehead in creating meaningful change within the community.
Demonstrate Financial Responsibility
Sections like Part VIII, IX, and X help you demonstrate how your nonprofit manages its financial resources. Emphasize your organization’s financial practices, including efficient use of funds and administrative costs. This approach might build trust and confidence among donors, showing them that their contributions are managed responsibly. For example, if you are an education firm, you can use this section to demonstrate how responsibly the funds have been utilized to accomplish your mission.
Showcase Governance and Management
Part VI of Form 990 provides an option to outline your nonprofit’s governance structure and management practices. There you can elucidate your board’s structure, roles, and responsibilities, emphasizing your organization’s stability. Section B of this part includes a designated space for presenting your organization’s policies. While not mandated by the IRS, this section offers an opportunity to highlight your policies effectively. Use this space thoughtfully to reinforce your organization’s commitment to integrity by demonstrating your policies and effective leadership which in turn boosts your organization’s brand.
Use Comparisons and Benchmarks
Utilize Part XI to compare your nonprofit’s financial performance with previous years and similar organizations in your sector. Highlight growth trends, improvements, and financial stability. Benchmarking against peers provides context for your achievements and demonstrates your nonprofit’s effective management and operation. Position your nonprofit as a veteran by sharing insights and lessons learned, thereby enhancing your influence within your sector.
Elevating Your Nonprofit’s Brand Using 990
You can strategically employ Form 990 in building your organization’s brand. Converting Form 990 into a branding opportunity for your nonprofit involves strategic thinking and creative approaches, here are several techniques to achieve this.
Opt to File High-tier 990 Forms Voluntarily
As you may be aware, the IRS provides an option for organizations filing shorter 990 forms to voluntarily choose higher-tier 990 forms. To be specific,
- Organizations eligible to file Form 990-N have the option to file either Form 990-EZ or Form 990.
- Organizations eligible to file 990-EZ can choose to file Form 990.
It’s important to note that vice versa is not possible in both cases.
Additionally, if your organization earns income through unrelated business activities, ensure you report it to the IRS using Form 990-T and pay any applicable taxes.
By taking advantage of this opportunity offered by the IRS, you can level up your organization’s standards and enhance transparency by offering more comprehensive details about your activities. This approach might potentially foster a positive public perception.
Be Accessible and Transparent
Make your Form 990 easily accessible on your website and other platforms. Consider creating a summarized version or infographic to present key information. Ensure that your disclosures are straightforward and understandable, using simple language to communicate complex data. Accessibility and transparency foster trust and engagement with stakeholders seeking insights into your nonprofit’s operations and impact.
Educate Your Stakeholders
Go beyond financial disclosures in Form 990 to educate stakeholders about specific challenges you have confronted and your strategic initiatives to overcome them. Use this opportunity to demonstrate your supremacy to the audience. Providing context and insights enhances stakeholders’ understanding and might invariably contribute to your growth.
Be Consistent
Maintain consistency in engagement across all your communications platforms by including your Form 990 insights on your website and press releases. Align the narratives used to describe your nonprofit’s achievements and goals. Consistency strengthens your brand identity and strengthens your organization’s perception of the public, who may access information through multiple channels.
Keep Your Clients Engaged
Utilize Form 990 as a tool to engage your clients and stakeholders by providing meaningful insights into your nonprofit’s activities and impact. Highlight specific programs, successes, and testimonials that engage with your audience. By showcasing your achievements in a compelling manner, you can obtain continued support and loyalty among your clients and community.
Integrate with Your Posts and Releases
Integrate Form 990 disclosures seamlessly into your organization’s broader communications strategy. Use relevant data and insights from the form to enhance the content of your blog posts, social media updates, and press releases. By incorporating Form 990 information into your social media releases, you reinforce your nonprofit’s transparency, credibility, and commitment to sharing valuable information with the public.
Conclusion
Approach the preparation of your Form 990 as a strategic opportunity rather than a mere obligation. Embrace this chance to showcase your nonprofit’s profile and enhance its reputation within the community. By presenting a clear and compelling Form 990, you can strengthen your nonprofit’s standing and fortify its positive contributions to society.
Stephanie Glanville is the Marketing Manager of Tax990. She has several years of experience with IRS tax forms and the funtionality of Tax990. With a passion to help Nonprofits better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.
