nonprofit financial disclosure

Nonprofit financial disclosure involves publicly sharing a organization's financial activities, such as income, expenses, assets, and liabilities. This transparency helps demonstrate accountability to donors, regulators, and the community. Nonprofits typically file reports like the IRS Form 990 in the U.S., which provides detailed financial and operational information. These disclosures ensure that funds are used appropriately, support trust, and allow stakeholders to assess the organization’s financial health and effectiveness. Clear reporting also helps prevent fraud and mismanagement, maintaining public confidence in the nonprofit sector.