What are Fundraising events, and how to report them on Form 990?
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Last modified 10/14/2021 3:58:06 AM EST |
Added by ExpressTaxExempt Team
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.
These events also provide an opportunity for donors and other communities to engage with those nonprofits and to make sure the contributions they provide are used in the right way. Some common examples of fundraising events include dinners/dances, door-to-door sales of merchandise, concerts, carnivals, sports events, and auctions.
While filing Form 990, it is necessary to report the contributions received from various fundraising activities.
Reporting contributions received from various fundraising events with ExpressTaxExempt’s Interview-based Filing Style
- Log into your ExpressTaxExempt account.
- On the dashboard, click on the "Start New Return" button.
- Select the "Tax Year" and "Form 990" options on the list of Federal Return.
- Enter your organization details and click "Next."
- On the "Organization Tax Year" page, select the tax year calendar or fiscal, 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 Revenue section, click "Start" in Contributions, Gifts, Grants. Then, on that 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 appears and prompts you to enter the details of your fundraising event. To add more than one fundraising event, click on the Add Another button.
- 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 ExpressTaxExempt’s Form-based Filing Style
While filing your Form 990 with ExpressTaxExempt using the form-based filing style, please go to Part VIII, line 1c of the Contributions, Gifts, Grants and Other Similar Amounts section.
Line 1c requires the following information on the fundraising event, such as
- Gross Income and Contribution in this Event
- Name of the Event
- Total Revenue from the Event
- Total Fair Market Value (FMV) of Noncash Contributions
- Direct Expenses made in this Event, such as
- Cash Prizes
- Food and Beverages
- Noncash Prices
- Rent/Facility Costs
- Other Direct Expenses
Reporting Schedule G, Supplemental Information Regarding Fundraising or Gaming Activities
If your organization reports more than $15,000 total on lines 1c and 8a and answers “Yes” to the question, “Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a?” on Part IV, line 18, then you 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 above-mentioned conditions 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-EZ, click here.