How to Check a Nonprofit's Finances Before You Donate — Read the 990
A charity's mission is on the homepage. Where the money actually goes is on the 990. Read the second one.
Before you give, you can read almost any U.S. charity's books. Tax-exempt organizations file an annual IRS Form 990 — a public document listing total revenue, program versus overhead spending, the highest-paid people, and any related-party dealings. It is free, and it tells you far more than the donate button.
Find the 990 in one search
ProPublica's Nonprofit Explorer is the fastest way in: search the organization's name, and it shows years of filed 990s, revenue trends, and top salaries. The IRS Tax Exempt Organization Search confirms the group's current exempt status and whether donations are deductible. Candid/GuideStar adds context.
What to actually read on the 990
- Program vs. overhead: Part IX splits spending into program services, management, and fundraising. A healthy charity spends most on programs — but judge by mission, not a single ratio.
- Executive pay: Part VII lists officers and their compensation. Big pay is not automatically wrong, but it should match the organization's size and results.
- Related-party transactions: Schedule L flags loans or deals with insiders — a common place self-dealing hides.
- Revenue trend: a sudden spike or collapse is worth a question.
One year is a snapshot; three years is a story. Read the trend, not the headline number.
Confirm the group actually exists as claimed
Scam "charities" borrow the name of a real one. Confirm the exact legal name and EIN in the IRS search, and be wary of a group that will not share its EIN. This is the charity version of verifying a business is real — match the name to the official record before you trust the pitch.
The takeaway
The 990 turns "trust us" into a document you can check. ProPublica for the filings, the IRS search for status, Schedule L for insider deals. A few minutes there beats a glossy appeal every time.