Every foundation must complete an annual “information return” for the IRS, which holds a wealth of information for the grant seeker. Called the 990-PF form (PF stands for “private foundation”), this form can be found easily. Both the Foundation Center (foundationcenter.org) and GuideStar (guidestar.org) websites provide access to this form as a public service, as do other charity associations and, on occasion, foundations themselves.

Why do you want to look at their IRS returns? After all, they pay no taxes, and it’s just an informational return. Are you kidding? There’s gold in those forms! For instance, you can find …

The information in the IRS returns might be more complete and up-to-date than the listings in some directories, even though the IRS return might be 18 months old.

Because looking at the 990-PF is such an important part of research, let’s look at some examples and take some time to go through it together. (I’ve blacked out the name and other identifiers of this large foundation. Even though the 990s are part of the public record, some foundations still get sensitive about revealing themselves, and who knows, I might send them a proposal one day.)

The first page resembles your own IRS return. It starts out asking for name, address, and tax ID number. The address here will be the foundation’s legal address, which might be different from the address used for grant applications. Cross-check with other references before mailing anything to this address.

Form 990PF Part XV Line 3a - Grants and Contributions Paid During the Year

On the first line below the heading, the foundation will fill in dates of its fiscal year. This foundation apparently uses the calendar year because no dates appear here. Knowing the fiscal year can guide you as to when to apply. Frequently, foundations (especially corporate ones) budget a set amount for grants for the year (and most do operate on a calendar year). If you apply late in the year, less money will be available.

After the address, the form asks for any income received during the past year. A number of foundations receive additional income from their donor(s), and corporate foundations frequently receive a major donation from the company each year. This explains how (as noted in Foundation Center directory summaries) it’s possible for a foundation with $100,000 in assets to make $2,000,000 in grants. Its expenses are summarized, and it ends with net income, after detailing income from investments and expenses.

The rest of the form definitely does not resemble your IRS return. Section VIII asks for a list of its board of trustees and for how much anyone was paid. This will probably be on an attached schedule. Part IX-B lets you know if this foundation makes program-related investments (PRIs).

Part XV should contain a list of the grants it has made, but usually these appear in an attached sheet because most foundations make more grants than would fit on the page. This section should also tell you the purposes for which the grants were made. This foundation gave a brief description for each of hundreds of grants, a few of which are listed.

Sometimes, trustee addresses will be given (business or even home addresses). The addresses help you identify if the John Jones who is a trustee is the same one as on your mailing list or the one who went to college with your board president. A business address can help you discover connections; for instance, if one of your board members works at the same law firm, or knows someone who does, you’ve found your connection.