A major step in transparency is unfolding in the nonprofit world. The vehicle delivering this change is the newly revised IRS Form 990, "Return of Organization Exempt from Income Tax," which nonprofit organizations have begun filing for the 2008 tax year. The impact that the increased transparency will have on nonprofit organizations has been severely underestimated. It is not sufficient for nonprofit staff and board members simply to be made aware of these changes. They must also be alert to the changes' strategic implications and have tools to manage them successfully. If prepared, nonprofit organizations can capitalize on the opportunities created by the increased transparency. If unprepared, they may be unnecessarily subjected to potentially damaging external risks. The key to strategic use of the new reporting requirements lies in nonprofit organizations' governance practices.