What are Fundraising events, and how to report them on Form 990-EZ?
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Last modified 12/22/2023 2:31:09 AM EST |
A fundraising event is designed to raise awareness and support for an organization’s mission and vision. Nonprofit organizations use fundraising events as a platform to raise money and fuel their missions.
While filing Form 990-EZ, it is necessary to report the contributions received from various fundraising activities.
Reporting contributions received from various fundraising events with Tax 990’s Interview-based Filing
- Log into your Tax 990 account.
- On the dashboard, click on the “Start Return” button
- Select the “Form 990-EZ” option on the list of Federal returns
- Enter your organization details and click “Next.”
- On the “Organization Tax Year” page, select the year you want to file the information return. Once done, the subsequent steps will be to complete the actual parts of the form.
- Under the Revenue section, click "Start" in Contributions, Gifts, Grants and Similar Amounts Received. Then, on the next page, select "Start" for Revenue and Contributions from Fundraising Events.
- Now, select "Yes" for the question, "Did you receive any contribution from fundraising events?" A popup will appear and prompt you to enter the details of your fundraising event. To add more than one fundraising event, click on the “Add Another” button.
- Now click “Next” and follow the subsequent steps as prompted
- Review the details, pay, and click the “Transmit” button to transmit your return to the IRS
Reporting contributions received from various fundraising events with Tax 990’s Form-based Filing
To report contributions received from various fundraising events using the form-based filing, please go to Part I, line 6 of the revenue section. Please be aware, line 6 has several subcategories you will need to complete as well.
- In line 6a, Gaming and fundraising events, enter the gross income from gaming activities.
- In line 6b, enter the gross income from fundraising events without including the contributions from fundraising events reported on part I, line 1.
- In line 6c, enter the direct expenses from gaming and fundraising events.
Based on the values entered in lines 6a, 6b, and 6c, Tax 990 will automatically calculate the net income or (loss) from gaming and fundraising events and enter it in Part I, line 6d.
Reporting Schedule G, Supplemental Information Regarding Fundraising or Gaming Activities
If the organization reports more than $15,000 on lines 6a or 6b of Part I, it must complete Part II of Schedule G, Supplemental Information Regarding Fundraising or Gaming Activities (Form 990 or 990-EZ).
Schedule G Part II will be enabled when both the conditions mentioned above satisfy. In Part II, the filing organization must provide details of the two major gaming events and other events (total) as a single event. In addition, the events must have gross receipts of more than $5,000.
To know how to report Fundraising events in Form 990, click here.