"I'm considering a $25,000 year-end gift to your organization. Can you send me your latest financials?"

That inbox notification arrives in late November.

For many nonprofit leaders, this moment triggers either confidence or panic. Because sophisticated donors don't just write checks based on emotional appeals anymore. They do their homework. And in the final weeks of the year, when major giving decisions happen, they're reviewing specific financial documents to assess whether your organization deserves their trust.

Here are the five documents savvy donors examine before making significant year-end contributions, and what they're really looking for in each one.

1. Form 990: Your Public Report Card

What donors look for: Your Form 990 is the first stop for any serious donor. They're not reading every line, but they're zeroing in on specific sections that reveal organizational health.

Smart donors check your program expense ratio on Part IX. They want to see at least 65-75% of expenses going to programs rather than overhead. They're also scanning Part VII for executive compensation, looking for reasonable salaries that match your budget size, not red flags like a CEO making $300K at a $1M organization.

But here's what catches many nonprofits off guard: donors read the narrative sections. Part III asks you to describe your mission accomplishments. If this section is vague or clearly copied from last year with minimal updates, donors notice. It signals that you're checking boxes rather than managing intentionally.

The donor's question: "Is this organization well-managed and transparent about how money is used?"

Your action step: Review your most recent 990 through a donor's eyes before year-end. If you spot concerning ratios or weak narratives, be prepared to address them proactively when donors ask.

2. Audited Financial Statements: The Trust Builder

What donors look for: For gifts above $10,000-$25,000, many donors want to see audited financials. They're not necessarily financial experts, but they know what clean audit opinions look like.

The audit opinion letter is the first thing they read. They want to see "unmodified opinion" (the accounting equivalent of a clean bill of health), not qualified opinions or going concern warnings. Then they flip to the notes section, particularly the note about liquidity and the one about net assets.

Donors are increasingly sophisticated about restricted vs. unrestricted funds. They often look for healthy unrestricted reserves, commonly benchmarked at 3 to 6 months of operating expenses. If your unrestricted net assets are negative or barely positive, that's a red flag suggesting financial fragility or over-reliance on restricted funding.

The donor's question: "Will this organization still exist next year, and do independent accountants trust their numbers?"

Your action step: If you don't have an audit and your budget exceeds $500K, consider getting one. If you have an audit with concerns noted, address them before soliciting major gifts, or be prepared to explain your remediation plan.

3. Current Year Budget vs. Actual Report

What donors look for: Sophisticated donors want to see how you're tracking against your annual budget as of October or November. They're not looking for flawless execution, they're assessing whether you can manage resources effectively.

They're looking for reasonable variance explanations. If revenue is tracking at 60% of budget in November, that's concerning unless you can explain that 45% of annual revenue typically comes in December. If expenses are wildly over budget in certain categories, they want to know why and what you're doing about it.

Major donors also look at this report to understand your year-end funding gap. If you're projecting a $100K shortfall but asking for $500K in new funding, the math doesn't add up. This document helps them understand if their gift fills a real need or pads an already healthy surplus.

The donor's question: "Does leadership know what's happening financially right now, or are they flying blind?"

Your action step: Generate a clean budget vs. actual report through October or November. Add brief narrative explanations for any line items with variance greater than 15%. Make this available within 24 hours when donors request it.

4. Program Impact Reports with Financial Context

What donors look for: This is where financial transparency meets mission impact. Donors want to see how specific programs performed both in outcomes and in financial terms.

A strong program report shows the cost per outcome for your key programs. For example: "Our youth mentoring program served 127 students at a cost of $1,850 per student, with 89% showing improved academic performance." This connects dollars to impact in concrete terms.

Donors also look for honesty about what didn't work. If you piloted a program that flopped, acknowledge it and explain what you learned. This builds credibility. Organizations that only report success after success seem either dishonest or not ambitious enough in their goals.

The donor's question: "Does my money actually accomplish something measurable, and is this organization learning and improving?"

Your action step: Create a one-page program snapshot for each major initiative showing participants served, key outcomes, and total program cost. Update these quarterly so you have current data for year-end conversations.

5. Board-Approved Financial Policies

What donors look for: This surprises many nonprofit leaders, but major donors increasingly ask to see your financial policies before making large gifts. They want evidence of governance and internal controls.

Key policies donors look for include: conflict of interest policy, expense reimbursement policy, fund balance/reserve policy, and gift acceptance policy. The existence of these policies signals that your board takes fiduciary responsibility seriously.

Donors also pay attention to dates. If your financial policies were last updated in 2012, that suggests board complacency. Current policies reviewed within the past 2-3 years demonstrate active governance.

The donor's question: "Is there adult supervision here, or could my gift be mismanaged or wasted?"

Your action step: Compile your key financial policies into a single PDF labeled "Financial Policies and Governance Documents." Have your board review and re-approve them annually. Make this packet available on request.

The Transparency Advantage

This is what strong organizations understand: organizations that proactively share these documents raise more money, not less. Transparency doesn't scare away good donors, it attracts them.

When a donor asks for financials and you can send comprehensive, clean documents within hours, you’ve just put yourself ahead of organizations that react instead of prepare. When you can explain your financial position clearly and confidently, you're building the trust that converts interested donors into committed partners.

As you head into the final weeks of year-end fundraising, ask yourself: if your top prospect asked for these five documents today, could you send them confidently by tomorrow morning? If not, that's your most important task before December 31st.

Because in the end, major donors don't just give to compelling missions. They give to compelling missions backed by financial credibility. Make sure you can demonstrate both.