Tax990 Knowledge Base

What are the program service revenues that must be listed in Form 990-EZ?

Program service is a primary objective of a tax-exempt organization to fulfill the purpose or mission under which it was started. These organizations generally perform activities like adoptions, recreation for the elderly, rehabilitation, or publication of journals or newsletters.
The various program service revenues that must be included in Form 990-EZ are

Program-related investment income

The primary purpose of a program-related investment income for an organization is to accomplish a tax-exempt status rather than to gain a profit. Scholarship loans and low-interest loans to charitable organizations are common examples of program-related investment income.

Unrelated trade or business activities

Organizations that seldom conduct activities and generate fees (program service revenue) for the services provided are also considered program service activities. A common example is an outdoor club where the members and nonmembers are charged for using the club’s premises.

Government fees and contracts

An organization that provides a service, facility, or product to a government agency, and the payment received for those services, will be considered a program service revenue.

Reporting program services conducted by the organization 

• If you choose Interview-based Filing Style

Navigate to the Revenue tab, and click ‘Start’ next to Program Service Revenues.

• If you choose Form-based Filing Style

Navigate to Part I, Revenue, Expenses, and Changes in Net Assets or Fund Balances. Then, in line 2, enter the Program service revenue, including government fees and contracts.