If you’re searching for grant opportunities, starting with a tax form might not seem obvious. However, IRS Form 990, the annual return that most tax-exempt organizations must file, contains valuable information for anyone wanting to understand foundation giving. Whether you’re a grant writer, nonprofit leader, or community development professional, learning to use 990s for grant prospecting can help you find new funders, see how they’ve funded similar projects, and tailor your proposals more effectively.
When it comes to grant research, IRS Form 990 filings often provide details that complement what is available on foundation websites. While funder guidelines outline intended focus areas, Form 990s reveal actual grantmaking patterns, helping nonprofits identify funders whose past giving aligns with their work.
What is IRS Form 990?
IRS Form 990 is the annual informational return filed with the IRS by most tax-exempt organizations. It provides a detailed snapshot of a nonprofit’s finances, operations, board members, and operations.
Private foundations are required to file Form 990-PF, a version of the 990 specifically for foundations. Form 990 PF includes information such as:
- Grants awarded in a given year
- Grant amounts and recipient organizations
- Geographic patterns of giving
- Board members and key decision makers
- Assets and overall grantmaking capacity
Because this information is required by the IRS, Form 990 PF is one of the few public sources that allows nonprofits to evaluate funder behavior using consistent, verified data.
Why use Form 990s for grant prospecting
Form 990 PF filings help answer a core grant-readiness question: Is this funder likely to support this organization or project?
Form 990-PF lists every grant a foundation has awarded in the past year, along with how much they gave, who they gave it to, and sometimes even a short description of the purpose. Reviewing several years of 990s can reveal which causes a foundation supports, typical grant sizes, and giving trends over time.
How to find Form 990s for free
Accessing Form 990 PF filings does not require a paid subscription. One of the most user friendly tools for locating Form 990 filings is ProPublica Nonprofit Explorer. To use this tool,
- Search by foundation name or keyword
- Select the organization
- Scroll to the “Form 990 documents” section
- Open PDFs from multiple years to identify trends
Another searchable tool is the IRS Tax Exempt Organization Search, which is the official IRS database for tax exempt organizations. This tool is authoritative and comprehensive, though some find it to be less intuitive than ProPublica Nonprofit Explorer. To use the tool,
- Search by organization name or EIN
- Select “Form 990 Series Returns”
- Download available filings
What to look for in a Form 990 PF
Form 990 PF filings can be lengthy, but only a few sections are essential for grant prospecting, such as:
Part I & II – Analysis of Revenue and Expenses: This section provides a high-level view of the foundation’s financial capacity. Key indicators include total grants paid during the year (line 25) and fair market value of assets (line 16). This helps determine whether a foundation typically makes small, mid-range, or larger grants and whether grantmaking appears stable over time.
Part VII – Officers, Directors, Trustees, and Key Employees: This section lists board members and key leadership. It can help nonprofits understand governance structure, identify community leadership and networks, and recognize potential shared affiliations. This information should be used to understand context and relationships, not to bypass formal application processes.
Part VIII-A – Summary of Direct Charitable Activities describes the charitable work a foundation carries out directly rather than through grants to other organizations. This section lists the foundation’s largest direct activities during the tax year and may include quantitative details, such as the number of individuals or organizations served, events convened, or research produced, which can help nonprofits understand whether the foundation operates programs alongside or instead of grantmaking..
Part XIV, 2 – Supplementary Information answers one of the most important questions in grant prospecting: How does the foundation selects grantees? This section indicates whether the foundation makes contributions only to preselected charitable organizations, accepts unsolicited applications, and/or requires proposals to be submitted through a specific contact, address, or process. This section may also list the name or title of the individual who receives applications, a mailing address or other submission instructions, and any limitations or conditions related to grant requests.
Not all private foundations operate with public websites, published guidelines, or open application processes, and some foundations intentionally limit grantmaking to invited or preselected organizations. Part XIV, line 2, is often the only public source that clarifies this.
Understanding Part XIV, line 2 helps nonprofits avoid wasting time on foundations that do not accept unsolicited proposals. It can also help grant seekers identify when relationship building is necessary before applying, confirm the correct contact for submitting proposals, and document due diligence during prospect research.
When reviewing Part XIV, line 2, nonprofits should look for:
- Language indicating preselected grantees only. This signals that unsolicited applications are unlikely to be successful without an introduction or existing relationship
- Application contact information. This may include a name, role, or mailing address, even when no website exists
- Submission instructions. Some foundations specify whether applications must be submitted in writing, by mail, or through a representative
When building a prospect list, note the language used in Part XIV, line 2 for each foundation. Label prospects as “invitation only”, “limited access”, or “open to proposals.” This simple step improves a nonprofit’s grant-seeking strategy, respects funder boundaries, and strengthens overall grant readiness.
Part XIV, 3 – Grants and Contributions Paid During the Year or Approved for Future Payment: In the Form 990 PF, the grants list appears in Part XIV. This section includes the names of grantee organizations, city and state locations, grant amounts, and brief descriptions of the grant purpose. This is often the most important section of the 990 for grant prospecting. Reviewing Part XIV, 3 helps grant seekers identify organizations doing similar work, common grant sizes, programmatic and geographic priorities, and repeat grantees versus one-time awards.
Looking at multiple years of Part XIV data is especially helpful for identifying patterns rather than one-year anomalies such as federal funding specifically to lessen the impact of Covid-19.
Supplemental information: Additional narrative or explanations may appear in supplemental sections. These can provide context for changes in giving, unusual grants, or shifts in strategy.
Using paid tools strategically
Free tools are sufficient for many nonprofits, especially early in prospect research. Nonprofits may also be able to access some paid tools, like Candid’s 990 Finder and Foundation Directory Online, for free through libraries, community foundations, or nonprofit support organizations.
Examples of paid tools may include, but are not limited to:
- Find Grants for Nonprofits | Foundation Directory | Candid: This is the gold standard for grant prospecting. Paid tiers give you searchable grant records (not just PDFs); filters by location, issue area, population served; funder profiles with giving trends, average grant sizes, and contact info; and lists of similar funders. Some Kentucky libraries and community foundations offer free access to Foundation Directory.
- Instrumentl: A powerful all-in-one grant research and tracking tool. Features include funder search based on project description; 990 data embedded in searchable profiles; email alerts when new opportunities arise; and tools to manage deadlines and reporting.
- GrantStation, GrantWatch, or Grantscape: These platforms vary in cost and features but generally include searchable databases, funder profiles, and access to 990 summaries. GrantStation is free if you are a Grant Professionals Association member. Additionally, Bluegrass Community Foundation provides access to the GrantStation Newsletter.
Turning 990 research into action
After reviewing multiple Form 990 PF filings, grant seekers should:
- Build a prospect list of foundations that fund similar organizations or projects
- Note typical grant sizes and align request amounts accordingly
- Review funder websites to confirm current priorities and application processes
- Reference alignment thoughtfully in outreach or proposals
Tracking findings in a spreadsheet or grant management system supports continuity and reduces duplicated effort.
Quick Form 990 prospecting checklist
- Confirm the document is a Form 990 PF
- Review at least three years of filings
- Start with Part XIV (grants list)
- Check geographic patterns
- Note grant size ranges
- Review board and leadership
- Cross reference with current funder guidance
Why this matters for grant readiness
Using Form 990 PF filings strengthens grant readiness by grounding prospect research in evidence rather than assumptions. Funders expect applicants to demonstrate alignment, awareness of funding patterns, and realistic request amounts. Form 990 PF data provides the foundation for doing that well.
Other Grant Prospecting Resources
Grant Prospect Research Part II
Grant Research Part III: Cultivation & Engagement
Disclaimer
Grant Ready Kentucky provides educational resources and practical examples to support nonprofit capacity building and grant readiness. Grant Ready Kentucky is not a law firm or an accounting firm and does not provide legal, tax, or financial advice. The information and sample materials shared through this resource are for general informational purposes only and should not be relied upon as a substitute for professional advice. Nonprofits are encouraged to consult qualified legal, financial, or accounting professionals to address specific legal, regulatory, or financial circumstances.