Filing Form 990 is an important compliance requirement for nonprofits , but the work doesn’t stop once the return is submitted. The period following a Form 990 filing provides an opportunity to strengthen governance, improve financial management, and enhance transparency with donors, board members, and stakeholders.

By taking a proactive approach after filing, nonprofits can remain compliant, prepare for future audits, and build greater trust within their communities.

Why Post-Filing Activities Matter

Form 990 serves as more than a tax filing. It provides the IRS, donors, grantors, and the public with insight into a nonprofit organization’s financial health, governance practices, and mission-related activities.

Using the information reported on Form 990 can help nonprofit leaders identify risks, improve operations, and support long-term sustainability.

1. Review the Filed Form 990 with Leadership

Once Form 990 has been submitted, nonprofit management and board members should carefully review the final version.

Areas to evaluate include:

• Revenue and expense trends
• Program accomplishments
• Governance disclosures
• Executive compensation reporting
• Public support calculations

A post-filing review helps leadership understand the organization’s financial position and identify opportunities for improvement.

2. Share Key Information with the Board

Board members have a responsibility to oversee the organization’s financial management and compliance activities.

After filing Form 990, provide directors with:

• A copy of the completed return
• Financial statement summaries
• Budget comparisons
• Compliance updates
• Significant operational changes

Strong board oversight contributes to better nonprofit governance and accountability.

3. Prepare for Potential Audit Requirements

Many nonprofits that receive grants or significant funding may be subject to independent audits or other financial reviews.

Organizations should:

• Organize supporting documentation
• Maintain financial records
• Reconcile accounts regularly
• Address any reporting inconsistencies
• Review internal controls

Proper preparation can reduce future audit findings and improve compliance.

Internal Controls for Nonprofit Organizations

4. Evaluate Internal Controls

The post-filing period is a good time to assess whether financial controls are working effectively.

Key areas to review include:

• Segregation of duties
• Cash handling procedures
• Expense approvals
• Payroll controls
• Access to accounting systems

Strong internal controls help protect assets and reduce fraud risk.

 Preventing Fraud in Nonprofit Organizations

5. Update Donors and Stakeholders

Transparency helps strengthen donor confidence and community support.

Consider sharing:

• Annual impact reports
• Financial highlights
• Program achievements
• Upcoming initiatives
• Stewardship updates

Communicating how donations are used can encourage future giving and improve donor retention.

6. Address Any Audit Findings or Compliance Concerns

If the organization recently completed a nonprofit audit, management should review any recommendations and create an action plan.

Focus on:

• Correcting control weaknesses
• Updating financial policies
• Improving documentation procedures
• Strengthening governance practices

Resolving issues promptly demonstrates a commitment to accountability.

Common Nonprofit Audit Findings and Solutions

7. Begin Planning for the Next Reporting Cycle For Nonprofits

Successful nonprofit organizations view compliance as an ongoing process rather than a once-a-year obligation.

Best practices include:

• Monthly financial reviews
• Ongoing budget monitoring
• Regular board reporting
• Grant compliance tracking
• Documentation of major financial decisions

Consistent record-keeping makes future Form 990 preparation significantly easier.

Leverage Form 990 as a Strategic Tool

Rather than viewing Form 990 solely as a regulatory requirement, nonprofits can use it to evaluate performance and support strategic planning.

Leadership should analyze:

• Revenue diversification
• Program efficiency
• Administrative cost trends
• Fundraising effectiveness
• Financial sustainability

These insights can support better decision-making and long-term organizational growth.

National Council of Nonprofits

Internal Revenue Service (IRS)

Conclusion

Filing Form 990 is a significant milestone, but effective nonprofit management requires continued attention after the return is submitted. Reviewing financial information, strengthening internal controls, addressing compliance issues, and maintaining transparency with stakeholders can help organizations operate more effectively and achieve their missions.

By treating Form 990 as a strategic resource rather than just a compliance obligation, nonprofit organizations can improve governance, support donor trust, and position themselves for long-term success.