Which report is required to be filed by not-for-profit organizations to demonstrate transparency regarding financial activities?

The correct report that not-for-profit organizations are required to file to demonstrate financial transparency is Form 990. This form is specifically designed for tax-exempt organizations, allowing them to provide detailed information about their financial activities, governance, and programs. By filing Form 990, these organizations disclose their revenues, expenses, and operational details, thereby promoting accountability to donors, the public, and regulatory authorities.

Form 990 serves several vital purposes: it helps ensure compliance with tax regulations, offers insights into how funds are used, and enables stakeholders to evaluate the organization’s effectiveness and efficiency. This form is publicly accessible, further enhancing transparency and allowing potential donors and grant-making organizations to make informed decisions about their contributions.