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.
Here's how to report the grant amount paid to other organizations in ExpressTaxExempt:
- Log into your ExpressTaxExempt 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"
- In the "Organization Tax Year" page, select the year for which you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form.
- Under the Expenses section, select "Start" for Grants & Similar Amounts Paid.
- Report all the grant amounts paid to individuals and organizations.
- Click Next.
- Now, follow the subsequent steps as prompted.
- Review the details, Pay, and click the Transmit button to transmit your return to the IRS.
Also, for every grant amount paid to the grantee organization, the filing organization must attach Schedule O, Supplemental information and list out the following information
- Class of activity of the grantee organization.
- Grantee organization's name and address (not grantee individual's)
- The amount which is given in the form of grants to the grantee organization.
- 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 as a grantee organization