What are Program Services?

Program services are the activities conducted by a nonprofit entity in the fulfillment of its mission. An efficient nonprofit will expend the bulk of its funds on program services. Donors are more likely to contribute funds to nonprofits that spend the bulk of their income on program services, since they perceive a greater value being generated as a result of their donations.

Program Services Documentation in Tax Filings

The Form 990 is a long and detailed form that must be filed with the IRS by larger nonprofit entities. The form requires a nonprofit to include its organizational mission statement, as well as program service accomplishments. The intent of this requirement is to spot any organizations that gained tax-exempt status under a different mission statement, and then altered their missions.