Schedule G (Form 990): Instructions and Filing Requirements

Schedule G (Form 990) is used to report supplemental information about professional fundraising services, fundraising events, and gaming. It accompanies Form 990 or 990-EZ. Go to www.irs.gov/Form990 for instructions and the latest information. Filing Schedule G helps ensure transparency and compliance for nonprofits.

Purpose of Schedule G (Form 990)

The primary purpose of Schedule G (Form 990) is to provide the IRS and the public with detailed information about a nonprofit organization’s fundraising activities and gaming operations. This schedule supplements the information reported on Form 990 or Form 990-EZ, offering greater transparency into how the organization raises funds and manages gaming activities.

Specifically, Schedule G requires organizations to report on professional fundraising services they engage, fundraising events they conduct, and any gaming activities they operate. By completing Schedule G, organizations must disclose the revenue generated, expenses incurred, and the individuals or entities involved in these activities.

The information provided on Schedule G helps the IRS assess whether the organization is operating in compliance with tax laws and regulations. It enables the public to understand the organization’s financial practices related to fundraising and gaming, fostering accountability and trust. Schedule G ensures transparency in these areas, allowing stakeholders to make informed decisions about supporting the organization.

Who Must File Schedule G?

Tax-exempt organizations filing Form 990 or 990-EZ may need to attach Schedule G. This applies if they report fundraising events or gaming activities. Also, organizations with significant professional fundraising expenses must file Schedule G.

Organizations Filing Form 990 or 990-EZ

Nonprofit organizations and tax-exempt entities that are required to file either Form 990 or Form 990-EZ might also need to attach Schedule G to their returns. This requirement is triggered when the organization engages in specific activities, primarily related to fundraising and gaming, that necessitate further detailed reporting to the Internal Revenue Service (IRS). Schedule G is designed to provide supplemental information that isn’t fully captured within the main body of Form 990 or 990-EZ, focusing on the financial aspects and operational details of these activities.

The determination of whether an organization must file Schedule G hinges on several factors, including the nature of its fundraising activities, the involvement of professional fundraising services, and the operation of gaming activities. Understanding these criteria is crucial for ensuring compliance with IRS regulations and maintaining the organization’s tax-exempt status. Organizations should carefully review their activities and financial records to ascertain whether they meet the thresholds that require the filing of Schedule G, as outlined in the IRS instructions.

Reporting Fundraising Events or Gaming Activities

Organizations conducting fundraising events or gaming activities must file Schedule G as part of their annual reporting. Fundraising events encompass activities like benefit dinners, auctions, and other solicitations designed to generate revenue. Gaming activities include casino nights, raffles, and similar ventures. Schedule G requires detailed reporting of gross receipts, contributions, gross income, and direct expenses associated with these events. This level of detail ensures transparency regarding the financial performance of these activities.

Accurate tracking of income and expenses is vital for proper reporting on Schedule G. Organizations must maintain meticulous records of all transactions related to fundraising events and gaming. This includes documenting contributions received, revenue generated, and all direct costs incurred in conducting these activities. Clear and comprehensive documentation enables organizations to accurately complete Schedule G and demonstrate compliance with IRS regulations. Incomplete or inaccurate reporting can lead to scrutiny from the IRS, potentially jeopardizing the organization’s tax-exempt status.

Expenses for Professional Fundraising Services Exceeding $15,000

Nonprofits that spend more than $15,000 on professional fundraising services must file Schedule G, providing detailed information about these expenses. This requirement aims to increase transparency regarding how nonprofits utilize external fundraising support. Professional fundraising services encompass activities such as direct mail campaigns, telemarketing, grant writing, and event planning when performed by outside firms or individuals.

Schedule G requires organizations to report the names and addresses of the firms or individuals providing these services, along with a description of the activities performed. Additionally, organizations must disclose whether the fundraiser had custody or control of contributions. This information helps the IRS assess the nature and scope of the fundraising services and ensure that funds are handled appropriately.

Accurate tracking of expenses related to professional fundraising services is crucial for compliance with Schedule G requirements. Nonprofits should maintain detailed records of all payments made to fundraising firms, along with invoices and contracts that outline the scope of services provided. This documentation supports the information reported on Schedule G and demonstrates that the organization has exercised due diligence in managing its fundraising activities.

Schedule G Parts and Reporting Requirements

Schedule G is divided into parts covering fundraising activities, fundraising events, and gaming. Each part has specific reporting requirements to provide detailed information about these activities. Tax-exempt organizations report professional fundraising services, fundraising events, and gaming.

Part I: Fundraising Activities

Part I of Schedule G focuses on reporting fundraising activities. Organizations must complete this section if they reported expenses exceeding $15,000 for professional fundraising services. Form 990-EZ filers are not required to complete Part I. This section requires detailing the name and address of entities or firms involved in fundraising.

It also asks for a description of the activities conducted with these firms. A crucial aspect is indicating whether the fundraiser had custody or control of contributions. The purpose is to ensure transparency regarding fundraising practices and the handling of funds. This part helps the IRS understand the organization’s relationships with professional fundraisers and assess their impact on the organization’s financial activities.

By providing these details, nonprofits demonstrate accountability and compliance with regulations. Accurate and complete reporting in Part I is essential for maintaining the organization’s tax-exempt status and public trust. Understanding these elements is crucial for nonprofit organizations.

Part II: Fundraising Events

Part II of Schedule G addresses fundraising events. This section is essential for nonprofits that conduct events like benefit dinners to raise funds. The form requires detailed information about each event, including gross receipts, contributions, and gross income. It also asks for the direct expenses associated with the event, which helps in determining the net income or loss from the event.

Understanding the financial outcome of these events is crucial for assessing their effectiveness. Form 990 Schedule G might look like the Not-For-Profit organization lost money on the event. Information on Form 990 including an explanation of each line such as gross receipts, less contributions, gross income and direct expenses.

By accurately reporting these details, organizations can demonstrate their efficient use of resources. It allows the IRS and the public to see how fundraising events contribute to the organization’s overall financial health. This transparency builds trust and ensures accountability in the organization’s fundraising efforts.

Part III: Gaming

Part III of Schedule G focuses on gaming activities. This section is specifically designed for organizations that conduct gaming as a fundraising method. Gaming activities can include casino nights, raffles, and other games of chance. The form requires organizations to report detailed information about these activities, including gross revenue, direct expenses, and net income.

It’s essential to accurately track and report all financial aspects of gaming. This includes the total amount of money raised, the costs associated with running the games, and the resulting profit. By providing this information, organizations can demonstrate their compliance with IRS regulations.

Moreover, transparency in gaming operations helps build trust with donors and the public. It assures them that the organization is managing funds responsibly and ethically. Complete and accurate reporting in Part III of Schedule G is therefore critical for maintaining a positive reputation and ensuring the long-term sustainability of the organization.

Where to Find Instructions and the Latest Information

For detailed instructions and the latest updates on Schedule G (Form 990), visit the IRS website at www.irs.gov/Form990. This resource offers comprehensive guidance to ensure accurate and compliant filing for nonprofits and tax-exempt organizations.

IRS Website (www.irs.gov/Form990)

The IRS website, accessible at www.irs.gov/Form990, serves as the primary source for all information related to Form 990 and its schedules, including Schedule G. This dedicated page offers a wealth of resources designed to assist nonprofits and tax-exempt organizations in accurately completing and filing their annual information returns.

Users can find the most up-to-date version of Schedule G, along with detailed instructions that explain each section and line item. These instructions provide clarity on reporting requirements for fundraising activities, fundraising events, and gaming operations. The website also includes frequently asked questions (FAQs), updates on regulatory changes, and other helpful guidance to ensure compliance.

Furthermore, the IRS website offers access to prior years’ forms and instructions, allowing organizations to review past filings and understand any evolving requirements. By regularly consulting this resource, nonprofits can stay informed and avoid potential errors or omissions in their reporting. The IRS website is an invaluable tool for navigating the complexities of Schedule G and maintaining transparency in financial reporting.

Electronic Filing of Schedule G

Submit Schedule G along with Form 990 or Form 990-EZ electronically through the IRS e-file system. E-filing ensures efficient processing and reduces errors. Follow the IRS guidelines for electronic submission to comply with regulations and deadlines.

Submitting with Form 990 or Form 990-EZ via IRS e-file

To submit Schedule G (Form 990) electronically, you must include it with your Form 990 or Form 990-EZ through the IRS e-file system. This method ensures efficient processing and reduces the risk of errors associated with paper filings. Before starting, ensure your organization has obtained the necessary credentials, including an Employer Identification Number (EIN) and an active account with an IRS-approved e-file provider.

The e-filing process involves converting your forms into a digital format that complies with IRS specifications. Work with a qualified tax professional or use tax preparation software to accurately complete Schedule G and the main return. Double-check all entries to prevent discrepancies, particularly those related to fundraising activities and gaming operations. Once finalized, transmit the documents electronically to the IRS through the e-file provider.

Upon successful submission, you will receive an acknowledgment from the IRS, confirming receipt of your forms. Keep this confirmation for your records as proof of timely filing. Remember to adhere to the IRS deadlines for submitting Form 990 and Schedule G to avoid penalties. By using the IRS e-file system, you can streamline your filing process and maintain compliance with federal regulations.