Does an organization need to report the amount paid to other organizations as a grant in Form 990-EZ?
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Generally, an organization that paid a grant amount over $5,000 to any individual or a grantee organization during the tax year must report those amounts in Form 990-EZ.

Reporting grant amount paid to other organizations with Tax 990’s Interview-based Filing Style

  1. Log into your Tax 990 account.
  2. On the dashboard, click on the "Start Return" button.
  3. Select the "Form 990-EZ" option on the list of Federal returns.
  4. Enter your organization details and click "Next."
  5. On the "Organization Tax Year" page, select the year you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form. 
  6. Under the Expenses section, select "Start" for Grants and Similar Amounts Paid.
  7. You will be directed to the Statement of Functional Expenses page. Here select "Yes" for the question, “Did you pay any grants and similar amounts to individuals and organizations?
  8. A popup appears in which you must report all the grant amounts paid to individuals and organizations. To add more than Grants & Similar Amounts, click on the Add Another button.
  9. Now, click Next and follow the subsequent steps as prompted.
  10. Review the details, Pay, and click the Transmit button to transmit your return to the IRS.

Reporting grant amount paid to other organizations with Tax 990’s Form-based Filing Style

To report grants paid to other organizations using our form-based filing, please go to Part I, Expenses section. Then, in line 10, enter the Grants and similar amounts your organization paid to other organizations.

Reporting Schedule O, Supplemental information

Also, the filing organization must attach Schedule O, Supplemental Information, and list the following information for every grant amount paid to the grantee organization.

  1. Class of activity of the grantee organization.
  2. Grantee organization's name and address (not grantee individual's)
  3. The amount which is given in the form of grants to the grantee organization.
  4. Relationship of the grantee individual with the filing organization. The relationship can be anything by blood, marriage, adoption, or employment (including employees’ children), control, or ownership, to any person or corporation with an interest in the filing organization, such as a creator, donor, director, trustee, officer, key employee, a related organization, etc.

Note - The organization that received a grant from a filing organization is called a grantee organization

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