Philosophy: Nonprofits that provide information to prospective donors and other constituents promote informed and responsible philanthropy. Donors are better able to make decisions when they can learn a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its mission

Standard: The nonprofit complies with the legal requirements for public disclosure of the following:

• Three years of IRS Form 990, 990-EZ or 990T;
• IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

The nonprofit also provides the following information on an annual basis:

• Mission statement;
• A list of the Board of Directors;
• Annual financial statements, prepared in conformance with Generally Accepted Accounting Principles (GAAP);
• A summary of the total cost of each major program and the nonprofit’s fundraising and administrative costs, as defined by either GAAP or IRS guidance for completing IRS Form 990;
• Descriptions of its programs, activities and accomplishments in relation to its mission for at least the most recent fiscal year;
• Description of the communities or populations and geographic area served.

If the nonprofit has a website, it also includes the above information, preferably in one place.

Read the donor perspective on Public Information and Annual Reporting