Section 6033 of the Internal Revenue Code requires tax exempt organizations to file an annual report. Form 990 fulfills this requirement. Many citizens utilize the information from Form 990 to evaluate the non-profit organization they donate to annually. The 990 covers much of the information any citizen desires to know about the charity of their choice.
Total assets less liabilities equals net assets. A common term used with non-profit or tax exempt operations. Examples include charitable organizations, homeowner associations, business associations, and recreational partnerships.