Revised IRS Form 990 for Fundraising Activities - Part 2

Fundraising Requirements for Schedule G 

  • Schedule G Reporting if the Organization had the following:
    • Greater than $15,000 in:
      1. Professional Fundraising Fees
      2. Contributions Received from Fundraising Events
      3. Gross income from Gaming Activities

IRS Form 990 Fundraising Reporting 

  • 1. Greater than $15,000 in Professional Fundraising Fees
    • Includes solicitation campaigns and advice or other consulting services supporting in-house fundraising campaigns
    • Distinguish between fees paid for professional fundraising fees and for fundraising expenses (such as printing and postage) which should be classified as other expenses
      • if unable to distinguish, all expenses should be included as professional fundraising expenses
    • This amount is reported on Part IX (Statement of Functional Expenses), Line 11e
    • Schedule G, Part I-Fundraising Activities

Schedule G, Part I-Fundraising Activities 

  • Schedule G, Part I Requirements
    • List 10 highest paid professional fundraisers paid at least $5,000 for professional fundraising services
    • Items Required:
      • Report gross receipts connected to the services provided and,
      • Dollar amount in fees paid to the fundraiser for its professional fundraising services
        • List all states in which the organization is registered/licensed to solicit funds

IRS Form 990 Fundraising Reporting 

  • 2. Greater than $15,000 in Contributions Received from Fundraising Events
    • includes but not limited to gaming events, dinners, auctions, or any other event conducted for the sole purpose of raising funds for the organization’s exempt activities
    • Example: Organization holds a dinner event and charges $500 per person. Dinner has a retail value of $100. Therefore, $400, the amount of the contribution would be reported as contributions received from Fundraising Events
    • This amount is reported on Part VIII, Statement of Revenue, Line 1c and Line 8a (contributions received from fundraising events)
    • Schedule G, Part II, Fundraising Events

Schedule G, Part II-Fundraising Events 

  • Schedule G, Part II Requirements
    • List the two largest fundraising events with gross receipts greater than $5,000 and report the total number of all other events with gross receipts greater than $5,000
    • For each event, report:
    • Revenue
      • Gross Receipts and Charitable Contributions
    • Direct Expenses
      • Amount paid for cash prizes
      • FMV of noncash prizes paid or given out for each event
      • Expenses paid or incurred for the rent of lease of property/facilities
      • Other direct expenses, such as catering, entertainment, labor, etc..
  • Fundraising Events Include:
    • Dinners/Dances
    • Door-to-door sales of merchandise
    • Concerts
    • Carnivals
    • Sports Events
    • Auctions
  • Fundraising Events Do Not Include:
    • Sales or gifts of goods or services of only nominal value
    • Raffles or lotteries in which prizes have only nominal value
    • Solicitation campaigns that generate only contributions
      • Proceeds from these activities are considered contributions (reported on Line 1f (all other contributions)

IRS Form Form 990 – Schedule G, Part III Gaming 

  • 3. Greater than $15,000 of Gross Income from Gaming Activities Schedule G-Part III Gaming Required
    • Three categories of Gaming Activities Bingo, Pull Tabs, and Other
    • Items to Report (for each category of gaming activities)
      • Gross Revenue (Gross Receipts less Contributions)
      • Direct Expenses
        • Cash Prizes
        • Noncash Prizes
        • Compensation to workers
        • Rental of Gaming Equipment
        • Cost of supplies

Types of Gaming 

  • Include-but not limited to…
    • Bingo
    • Pull Tabs
    • Instant Bingo
    • Raffles
    • Scratch-offs
    • Charitable Gaming Tickets
    • Break-opens
    • Hard Cards
    • Banded Tickets
    • Jar Tickets
    • Pickle Cards
    • Casino Nights

**Remember-Many games of chance are taxable (unrelated business income)

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