What is the secret tool smart grant writers rely on every day? Form 990-PF (Return of Private Foundation), and if you’re working with GrantWriterTeam, whether you’re a grant writer or a nonprofit, you’ll hear this tip again and again. One of the first things an experienced grant writer check before drafting a proposal is a foundation’s Form 990. Why do grant writers depend on the 990? Because these documents reveal what a funder truly cares about, not just what they say on their website.
If you’re new to 990s, here’s the quick version: they’re detailed financial and organizational reports that private foundations and certain charitable trusts must file with the IRS each year. Think of them as a behind-the-scenes snapshot. A 990 shows where a foundation gets its money, where it sends its money, who sits on its board, how grants are distributed, and even how the organization operates internally. For grant writers, that’s pure gold. The more you understand a foundation’s patterns, priorities, and past giving, the better you can tailor a proposal that lands in their “yes” pile.
The Secret Tool Smart Grant Writers Use to Win Funding
1. Identity and Tax Status: Confirm who the foundation is, how it’s structured, and whether its mission aligns with your nonprofit’s work.
2. Income Sources: See how much income the foundation received and where that money came from. This helps you gauge its stability and potential giving capacity.
3. Expense Breakdown: Review how the foundation spends its money across program work, management, and fundraising. These patterns offer clues about priorities and organizational health.
4. Net Assets: Look at the foundation’s net assets to understand what it can realistically award and how its financial position has changed over time.
5. Programs and Spending: Explore the types of programs the foundation supports and how much it invests in each. This helps you tailor your proposal to what they already care about.
6. Board Members and Compensation: See who serves on the board and how much leadership and key staff are compensated. This aids your understanding of the decision-makers.
7. New Activities and Governance Changes: Check for updates such as new initiatives, governance changes, or unusual financial activity. These cues can signal shifts in mission or stability.
8. Self-Dealing Transactions: Look for any self-dealing issues, which may indicate compliance risks or internal challenges within the foundation.
9. Private Foundation Status: Confirm whether the organization is indeed a private foundation, since this affects eligibility, reporting rules, and grantmaking practices.
10. Lobbying Practices: Review the foundation’s approach to lobbying or advocacy. This helps you determine whether your nonprofit’s work aligns with their policy positions.
Why Smart Grant Writers Use This Secret Tool
There are more than 86,000 grantmaking entities, and 92% are independent foundations. Corporate foundations account for only 3% of grant funding, yet more than 65% offer matching-gift opportunities.
With this many potential funders, knowing how to narrow your search is essential. 990s help you focus your efforts and craft proposals that align with real-world giving patterns.
GrantWriterTeam encourages writers to use this tool to strengthen their proposals and better serve their clients. By pairing expert insight with 990 research, writers can present funders with tailored, well-informed, competitive applications.
Where Can You Find the 990?
Grant writers looking to research potential funders can find a foundation’s Form 990—a key document detailing its finances, giving history, and grant-making priorities—through a few accessible channels. Many nonprofit organizations make their 990s publicly available on their websites, and the IRS provides an online database called Tax Exempt Organization Search for official filings. Third-party sites also compile searchable 990s to make the process easier. These websites they vary in quality. In our experience, the database with the most streamlined experience that grant writers can go to is GrantWatch. On the site, access the Foundation Finder. The foundations are organized, searchable, and ready to explore for relevant funding opportunities; Form 900 mase easy!
The Bottom Line
When it comes to foundation funding, aligning your project with the right funder is key. Reviewing Form 990s gives you the insights you need—highlighting a foundation’s priorities, giving patterns, and capacity to fund projects like yours. If a foundation mainly supports community food banks, submitting a technology proposal likely won’t succeed. By using 990s to guide your research, you increase your chances of matching your project with a funder who shares your mission. Knowledge is power, and with the right information in hand, you can make smarter, more strategic funding requests.
About GrantWriterTeam
Are you a nonprofit or small business in need of some help? If you are searching for grants but are feeling overwhelmed, hiring a grant writer may be the perfect choice for you! Grant writers thoughtfully grant opportunities and consider the pros and cons of applying and the chance of success. Consider your writer an extension of your organization. They will coach you throughout the entire process and curate the project to fit your needs. Your grant-seeking success is our priority at GrantWriterTeam.
Disclaimer: There is no guarantee that grants will be awarded as a result of this information.