Nonprofit organizations are responsible for recording all fundraising transactions and reporting activities. This is done with Schedule G, Supplemental Information Regarding Fundraising or Gaming Activities. Schedule G has is broken down into 4 sections and it allows nonprofits to give the IRS and the public a clear picture of their fundraising activities.
Here is an overview of Schedule G to help understand how to report your organization’s fundraising and gaming activities:
Fundraising activities are undertaken to induce potential donors to contribute money, securities, services, materials, facilities, time, or other assets. Typical fundraising activities include dinners, dances, concerts, sporting events, auctions, or door-to-door sales.
Fundraising events do not include gaming activities such as bingo, pull tabs, or card games, the conduct of a trade or business that is regularly carried on, or activities substantially related to the accomplishment of the organization’s exempt purpose.
Who must file Form 990/990-EZ Schedule G?
Nonprofit and tax-exempt organizations filing Form 990 and marking “Yes” to lines 17, 18, or 19 in Part IV, Checklist of Required Schedules, must file Schedule G.
In this section, you will need to provide specific information about the fundraising activities your organization participated in. These details include:
The method of fundraising
Fundraiser or individual details such as the name, address, activity, and gross receipts.
If the organization works with a professional fundraising service, they should include the amount paid to that person/entity.
The state in which the organization registered or licensed to solicit contributions
Part II. Fundraising Events
Form 990 filers with reporting amounts exceeding $15,000 Part VIII lines 1c and 8a, must complete Part II.
Form 990-EZ filers with reporting total amounts exceeding $15,000 on Part I lines 6b must complete Part II.
To complete this section, the organization should list the two largest fundraising events with gross receipts greater than $5,000 in each column (a) and (b). In column (c) enter the total number of other events with gross recipients greater than $5,000 each and report revenue and expenses from these events in the total.
There are two sections in Part II, revenue and direct expenses of the fundraising event.
To complete this portion of Part II, enter the total amount received from the two largest fundraising events with gross receipts greater than $5,000. This includes the total amount of money, contributions, gifts, or similar amounts received for fundraising events.
In the expenses section, organizations should report all of the money they spent on events with gross receipts greater than $5,000. This includes cash and non-cash prizes, renting a venue, entertainment, food and beverages, and any other direct expenses.
Lastly, organizations should enter the net income from their fundraising activities. Net income is gross profit minus all other expenses and costs as well as any other income and revenue sources that are not included in gross income.
Part III. Gaming
If filing a Form 990, organizations should complete Part III if they reported more than $15,000 from gaming on Part VIII, line 9a.
If filing a Form 990-EZ, organizations should complete Part III line 6a for gaming events such as bingo or pull tabs.
Organizations should complete Part III for each type of gaming conducted. The organization will need to provide information about where they conduct gaming activities, gaming manager information, and more.
Organizations should enter the gross revenue for each type of gaming event conducted.
The itemized list of direct expenses should include:
Labor costs and wages, including the total compensation paid to gaming workers or independent contractors for labor costs
Employer’s share of federal, state, and local payroll taxes paid for the tax year for gaming workers, including social security and Medicare taxes, state and federal unemployment taxes, and other state and local payroll taxes.
Excise taxes, including any wagering tax paid with Form 730, Monthly Tax Return for Wagers, and any occupational rax paid with Form 11-C, Occupational Tax and Registration Return for Wagering.
Lastly, organizations should provide the net income from their gaming activities.
Part IV. Supplemental Information
Organizations should use part IV to provide the narrative explanations required, if applicable, to supplement responses to Part I, line 2b, columns (iii) and (v), and Part III, line 9, 9b, 10b, 15b, 15c, 16, and 17b. Part IV may also be used to supplement other responses to questions on Form 990 Schedule G.
When you start filing Form 990/990-EZ with ExpressTaxExempt, Schedule G will generate automatically based on the information you provided on the Form. ExpressTaxExempt’s internal audit will review your form for any IRS instruction errors. After you’ve reviewed the form, you can transmit it securely to the IRS with ExpressTaxExempt. ExpressTaxExempt is here to help nonprofit and tax-exempt organizations meet their annual filing requirements easily and remain tax compliant.