How public should the finances of a nonprofit be?
Central to a nonprofits creditability is public trust and therefore its finances should be transparent and available not only to the board in the form of regular statements described above but also to the public in the form of an annual report. Every board member must have full access to financial reports and continued service on the board should be dependent upon getting timely credible reports of the organizations financial position. In addition, the Federal government has stepped in requiring more openness of nonprofit finances through the requirement of filing an annual report entitled Internal Revenue Service – Form 990. Once filed, this Form becomes a public record accessible to the general public on Guidestar.org. and to anyone who asks.
