Program Service Accomplishments

Posted on Wednesday, September 01, 2021

The IRS asks you to describe your organization’s program service accomplishments in Part III of Form 990.  What are you reporting to them?

Program Service Accomplishment Reporting

Information reported in this section of the Form helps the IRS to determine whether your organization’s activities are appropriate for your exempt status.  When the organization initially filed for a tax exemption with the IRS, it had to describe its exempt purpose and activities.  The IRS evaluates these activities each year on your organization’s 990 to make sure that you are following your exempt purpose.  The IRS also compares the information listed on your organization’s website to information on your Form 990.

This is also an opportunity for your organization to communicate to the public what you accomplished during the year.  Grantors and funders often review organizations’ 990s, so this allows you to share all of the great things that you did with their funding during the year.  The activities listed here can exert a positive influence upon a prospective donor or a lack of activities could impact the organization negatively.  Since the answer to this question should really include more than just numbers, it would be beneficial to have your marketing or public relations person assist with the wording.  Your Form 990 should be considered one of your greatest marketing tools, so you want to make sure it is completed accurately. 

Largest Three Service Programs

The IRS asks specifically to describe each of the organization’s three largest program services (measured by expenses).  If your organization has only one significant program, then you would list only one program; however, if you have multiple programs do not lump them all together on one line.  If your organization has more than three programs, the remaining programs can be listed on Schedule O.  Also, do not just repeat your organization’s mission.  The Form already asks for your organization’s mission.  Use specific measurements such number of people served, number of services provided, number of days services were provided, etc.  If you do not have exact figures use reasonable estimates.  Include how your programs impacted the participants and the community.  Describe the program’s objective in the short-term and long-term.  Finally, do not be afraid to use additional space if needed.  Schedule O of Form 990 is used to provide any additional explanations, so you do not have to try and fit all of your accomplishments on the lines available in Part III on page 2. 

Make sure your organization is completing this section properly as it can have a positive or negative impact on the public’s perception of the organization depending on what is reported.

Contributed by: Carrie Minnich, CPA, MAcct | Director | DWD CPAs & Advisors

Posted in Mission Minded Nonprofits

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.