schedule g 990 instructions
Schedule G (Form 990) is a crucial supplement for nonprofits required to report fundraising and gaming activities. It ensures transparency and compliance with IRS guidelines.
1.1 Overview of Schedule G
Schedule G (Form 990) is a supplemental form required for nonprofits to report fundraising and gaming activities. It ensures transparency by disclosing expenses, revenue, and details about professional fundraising services and gaming events. Organizations must file Schedule G if they meet specific thresholds, such as expenses exceeding $15,000 for professional fundraising or generating income from gaming. The form is divided into three parts: professional fundraising expenses, special events and gaming, and supplemental information. It helps the IRS and the public understand the financial aspects of these activities, ensuring compliance with tax-exempt reporting requirements. Accurate completion is essential for maintaining tax-exempt status.
1.2 Importance of Schedule G in Nonprofit Reporting
Schedule G is vital for nonprofits as it enhances transparency and accountability in fundraising and gaming activities. It ensures compliance with IRS regulations, providing detailed disclosures about expenses, revenue, and professional services. This schedule helps stakeholders assess financial management and governance practices. By reporting accurately, nonprofits demonstrate adherence to tax-exempt requirements, maintaining public trust and integrity. Schedule G is essential for organizations exceeding specific financial thresholds, ensuring they meet regulatory standards and avoid penalties. Its importance lies in promoting accountability and transparency, which are critical for maintaining tax-exempt status and public confidence.
1.3 Purpose of Supplemental Information Regarding Fundraising or Gaming Activities
The purpose of Schedule G is to provide transparency into a nonprofit’s fundraising and gaming activities. It requires detailed reporting of expenses, revenue, and professional services related to these activities. This ensures compliance with IRS regulations and promotes accountability. Organizations must disclose agreements with fundraisers, including compensation details, and report income and expenses from gaming activities like bingo or raffles. Supplemental information helps stakeholders assess financial practices and ensures nonprofits meet tax-exempt requirements. Accurate reporting is crucial for maintaining public trust and avoiding penalties. Schedule G ensures nonprofits operate transparently and ethically in their fundraising efforts.
Eligibility Criteria for Filing Schedule G
Organizations must file Schedule G if they report over $15,000 in fundraising expenses or answer “Yes” on Form 990, Part IV, lines 17, 18, or 19.
2.1 Organizations Required to File Schedule G
Nonprofits required to file Schedule G include those reporting over $15,000 in professional fundraising expenses or gaming income. Additionally, organizations answering “Yes” on Form 990, Part IV, lines 17, 18, or 19 must complete Schedule G. This includes charities and exempt organizations engaged in substantial fundraising or gaming activities. The IRS mandates this to ensure transparency and accountability in financial reporting.
2.2 Threshold for Reporting Professional Fundraising Services
Organizations must file Schedule G if they report more than $15,000 in professional fundraising expenses on Form 990, Part IX. This threshold applies to both Form 990 and Form 990-EZ filers. The IRS mandates this to ensure transparency in fundraising activities. If the total expenses exceed $15,000, the organization must complete Part I of Schedule G to provide detailed information about these services. This requirement helps the IRS and the public assess the efficiency and compliance of fundraising practices.
2.3 Specific Lines on Form 990 That Trigger Schedule G Filing
Filing Schedule G is triggered if an organization answers “Yes” on Form 990, Part IV, lines 17, 18, or 19. These lines pertain to fundraising activities, gaming, and professional fundraising services. Additionally, if the organization reports over $15,000 in fundraising expenses on Form 990, Part IX, Schedule G is required. For Form 990-EZ filers, exceeding $15,000 on line 6a also mandates Schedule G. These specific lines ensure that nonprofits accurately disclose their fundraising and gaming-related financial activities, promoting transparency and accountability.
Parts of Schedule G (Form 990)
Schedule G consists of three parts: Part I for professional fundraising expenses, Part II for special events and gaming activities, and Part III for supplemental information.
3.1 Part I: Professional Fundraising Expenses
Part I of Schedule G requires nonprofits to report expenses related to professional fundraising services. Organizations must disclose fees paid to fundraisers and other related costs if total expenses exceed $15,000. This section ensures transparency by detailing payments for services aimed at securing contributions. It also mandates reporting fees withheld by fundraisers and requires descriptions of agreements with professional fundraisers. The purpose is to provide clear insight into how funds are allocated for fundraising efforts, ensuring accountability and compliance with IRS regulations.
3.2 Part II: Special Events and Gaming Activities
Part II of Schedule G focuses on reporting income and expenses from special events and gaming activities. Nonprofits must disclose gross income, direct expenses, and net income from these events. This section also requires reporting revenue and expenses related to gaming activities, such as bingo or raffles. The purpose is to ensure transparency in fundraising practices and to distinguish between event-related earnings and other sources of income. Accurate reporting helps maintain accountability and compliance with IRS guidelines for tax-exempt organizations engaged in such activities.
3.3 Part III: Supplemental Information
Part III of Schedule G requires nonprofits to provide additional details about their fundraising or gaming activities. This includes a narrative explanation of the activities, ensuring clarity and transparency. It also mandates disclosure of any conflicts of interest related to these activities. Furthermore, organizations must report any other information the IRS deems necessary for understanding their operations. This section complements Parts I and II by offering contextual insights, ensuring comprehensive reporting and adherence to IRS requirements for tax-exempt organizations.
Instructions for Completing Schedule G
The IRS provides detailed instructions for completing Schedule G, ensuring nonprofits accurately report fundraising and gaming activities. Organizations must review guidelines carefully to ensure compliance and avoid errors.
4.1 Understanding the IRS Guidelines for Schedule G
Understanding IRS guidelines for Schedule G is essential for accurate reporting. The IRS mandates that nonprofits disclose all fundraising and gaming activities, ensuring transparency and compliance. Organizations must familiarize themselves with specific reporting thresholds, such as expenses exceeding $15,000 for professional fundraising services. Additionally, the guidelines require detailed disclosures about agreements with fundraisers and the allocation of expenses. Proper understanding of these rules helps nonprofits avoid penalties and ensures their filings are complete and accurate, maintaining public trust and regulatory compliance. Adhering to these guidelines is crucial for maintaining tax-exempt status and operational integrity.
4.2 Step-by-Step Guide to Filling Out Schedule G
Filling out Schedule G requires careful attention to detail. Start by reviewing eligibility criteria and ensuring the organization meets the thresholds for reporting. Begin with Part I to report professional fundraising expenses, including fees paid to fundraisers. Disclose details of fundraising agreements, such as compensation and terms. Move to Part II for special events and gaming activities, itemizing income and expenses. Finally, complete Part III with supplemental narratives and conflict-of-interest disclosures. Ensure all data aligns with Form 990 and adhere to IRS guidelines for accuracy and compliance. Reviewing the form thoroughly before submission is essential to avoid errors or omissions.
4.3 Common Mistakes to Avoid When Completing Schedule G
Common mistakes include failing to report all professional fundraising expenses accurately or omitting required disclosures. Ensure thresholds for reporting are met, such as expenses over $15,000 for fundraising services. Avoid misclassifying income or expenses related to gaming activities. Properly detail fundraising agreements, including compensation terms. Ensure narrative explanations are clear and concise. Verify that all data aligns with Form 990 and avoid incomplete or inconsistent information. Double-check mathematical calculations and adhere to IRS guidelines to prevent errors. Timely review and correction of mistakes are crucial to ensure compliance and avoid potential penalties or delays in processing.
Reporting Professional Fundraising Services
Organizations exceeding $15,000 in fundraising expenses must report detailed professional services, including fees and agreements, ensuring transparency and compliance with IRS disclosure requirements.
5.1 Definition of Professional Fundraising Services
Professional fundraising services involve hiring external experts to plan, manage, or conduct fundraising activities. These services include soliciting contributions, managing campaigns, or advising on strategies to enhance donations. They are typically provided by third-party consultants or firms specializing in nonprofit fundraising. The IRS requires clear disclosure of these services to ensure transparency and accountability. Organizations must report fees paid for such services if they exceed $15,000 annually. This definition excludes volunteer or in-house efforts, focusing solely on paid professional assistance aimed at increasing philanthropic support. Accurate reporting is essential for compliance with IRS guidelines and maintaining public trust in nonprofit operations.
5.2 Expenses Related to Professional Fundraising
Expenses related to professional fundraising include fees paid to third-party consultants or firms for services like campaign management, donor solicitation, or strategy development. These costs are reportable if they exceed $15,000 annually. Organizations must detail these expenses in Part I of Schedule G, ensuring clarity on amounts paid and services rendered. The IRS mandates this disclosure to promote transparency and accountability in nonprofit operations. Accurate reporting helps maintain public trust and demonstrates compliance with regulatory requirements. Proper documentation and categorization of these expenses are essential for a complete and accurate filing.
5.3 Disclosure Requirements for Fundraising Agreements
Organizations must disclose fundraising agreements if they paid more than $15,000 for professional fundraising services. Details to report include the fundraiser’s name, services provided, and total fees paid. Additionally, nonprofits must disclose if the fundraiser controls contribution receipts or has authority over funds. This ensures transparency and accountability, aligning with IRS requirements to prevent conflicts of interest. Proper documentation and clear disclosure are essential for compliance and maintaining public trust in the organization’s financial practices.
Reporting Gaming Activities
Schedule G requires reporting of gaming activities, such as bingo, raffles, or lotteries, to ensure transparency. Organizations must disclose income, expenses, and compliance with state regulations to meet IRS standards.
6.1 Types of Gaming Activities Reportable on Schedule G
Nonprofits must report gaming activities like bingo, raffles, lotteries, and pull-tabs. These activities are subject to specific income and expense reporting rules. Additionally, any games of chance conducted by the organization must be detailed, ensuring compliance with all applicable state and local regulations. The IRS requires clear disclosure of revenue generated and expenses incurred from these activities to maintain transparency and accountability. Proper documentation and adherence to reporting guidelines are essential to avoid penalties and ensure accurate representation of gaming-related financials in Schedule G.
6.2 Income and Expenses Related to Gaming
Nonprofits must report all income and expenses from gaming activities on Schedule G. This includes gross revenue from games like bingo, raffles, and lotteries, as well as expenses such as prizes, rent, and security. Expenses must be directly tied to gaming operations and not include unrelated costs. Organizations should separate gaming expenses from other fundraising costs to ensure accurate reporting. Additionally, any net profit from gaming activities must be allocated to tax-exempt purposes. Proper documentation and compliance with state gaming laws are essential for maintaining transparency and fulfilling IRS requirements.
6.3 State and Local Regulations on Gaming Activities
Nonprofits conducting gaming activities must comply with state and local laws, which vary by jurisdiction. Many states require licenses or permits for gaming events like raffles or bingo. Organizations must report gaming income and expenses accurately, adhering to both IRS guidelines and local regulations. Failure to comply can result in legal penalties or loss of tax-exempt status. It is essential to maintain detailed records and ensure gaming activities align with the organization’s tax-exempt purpose. Proper documentation and adherence to regulations help maintain transparency and public trust.
Supplemental Information and Disclosures
This section requires nonprofits to provide additional details about fundraising or gaming activities, ensuring transparency and compliance with IRS guidelines. It also mandates disclosure of conflicts of interest.
7.1 Narrative Explanation of Fundraising or Gaming Activities
Nonprofits must provide a detailed narrative explaining their fundraising or gaming activities. This includes describing events, methods, and purposes, ensuring clarity and transparency for public and IRS review. The explanation should cover the nature of activities, participation levels, and how proceeds were allocated. It’s essential to align this narrative with financial data reported elsewhere in Schedule G to maintain consistency and accuracy, facilitating understanding of the organization’s compliance with regulations and its commitment to ethical practices.
7.2 Disclosure of Conflicts of Interest
Nonprofits must disclose any conflicts of interest arising from fundraising or gaming activities. This includes transactions with disqualified persons or private dealings that benefit individuals rather than the organization. The disclosure should detail the nature of the conflict, parties involved, and measures taken to address it. Transparency in such matters is crucial for maintaining public trust and ensuring compliance with IRS regulations. Proper documentation and board oversight are essential to manage conflicts effectively and demonstrate accountability.
7.3 Additional Information Required by the IRS
Nonprofits may need to provide additional information beyond standard disclosures in Schedule G. This includes attachments or explanations for specific activities, such as detailed narratives for fundraising events or gaming operations. The IRS may request further documentation to clarify reported data or ensure compliance. Organizations must maintain accurate records to support all disclosures and be prepared to furnish supplementary materials if required. This ensures transparency and satisfies regulatory expectations, helping to avoid delays or issues during IRS reviews.
Relationship Between Schedule G and Other Forms
Schedule G integrates with Form 990 and 990-EZ, providing supplemental details on fundraising and gaming activities. It ensures consistent reporting across all forms, maintaining compliance and transparency.
8.1 Integration with Form 990
Schedule G is a supplement to Form 990, providing detailed information about fundraising and gaming activities. It is attached to Form 990 when certain thresholds are met, such as expenses exceeding $15,000 for professional fundraising services or significant income from gaming. The schedule ensures consistency by referencing specific lines on Form 990, like Part IV, lines 17, 18, or 19. By integrating with Form 990, Schedule G enhances transparency and compliance, offering a comprehensive view of an organization’s financial activities for IRS review.
8.2 Connection to Form 990-EZ
Schedule G is also connected to Form 990-EZ, which is a streamlined version of Form 990 for smaller organizations. If an organization meets specific criteria, such as reporting more than $15,000 on Form 990-EZ, line 6a, it must complete and attach Schedule G. This ensures consistency in reporting fundraising or gaming activities, even for organizations eligible to file the simplified Form 990-EZ. The integration allows the IRS to maintain oversight while accommodating smaller nonprofits with reduced reporting burdens.
8.3 Relevance to Other Schedules and Attachments
Schedule G is closely integrated with other schedules and attachments in the Form 990 series, ensuring comprehensive reporting. It supplements Schedule B (Schedule of Contributors) and Schedule I (Grants and Other Assistance) by providing detailed insights into fundraising and gaming activities. Additionally, organizations must ensure consistency between Schedule G and other parts of the return, such as Part IX of Form 990, which reports expenses. This interconnectedness helps the IRS assess compliance and transparency, making it essential for nonprofits to maintain accurate and aligned disclosures across all forms and schedules;
Filing Requirements and Deadlines
The deadline for submitting Schedule G with Form 990 is the same as the form’s due date, typically May 15th or November 15th for extended filings. Late submissions may incur penalties.
9.1 Deadlines for Submitting Schedule G
The deadline for submitting Schedule G is the same as the deadline for filing Form 990 or Form 990-EZ. For most organizations, this is the 15th day of the 5th month after the tax year ends (e.g., May 15th for a calendar-year organization). If the due date falls on a weekend or federal holiday, the deadline is the next business day. Organizations can request an automatic 6-month extension by filing Form 8868. Late filing may result in penalties, so timely submission is crucial to avoid IRS issues and maintain compliance.
9.2 Consequences of Late or Incomplete Filing
Failing to file Schedule G on time or submitting it incomplete can result in penalties. The IRS may impose a daily late filing fee, calculated based on the organization’s gross receipts. Incomplete filings may lead to additional penalties or requests for corrected forms. Repeated noncompliance can jeopardize an organization’s tax-exempt status. Late or inaccurate submissions may also attract scrutiny, potentially delaying processing or leading to audits. Organizations must prioritize timely and accurate filing to avoid these consequences and maintain compliance with IRS regulations. Proper record-keeping and professional guidance are essential to prevent such issues.
9.4 Extensions and Amendments
Organizations can request an extension to file Schedule G using Form 8868, which provides an automatic six-month extension. A second extension may be requested but requires reasonable cause. Amendments to Schedule G must be filed with Form 990 or 990-EZ and clearly indicate changes. An amended return should include a detailed explanation of corrections. Failure to properly amend may result in penalties or compliance issues. Extensions and amendments should be handled promptly to avoid delays or IRS scrutiny. Always attach the corrected Schedule G to the amended return and ensure accuracy to maintain tax-exempt status.
Best Practices for Preparing Schedule G
Ensure accuracy in reporting expenses and activities. Maintain detailed records for compliance. Review IRS guidelines thoroughly. Consider professional review for precision. Submit timely to avoid penalties.
10.1 Maintaining Accurate Records
Maintaining accurate records is essential for preparing Schedule G. Ensure all fundraising and gaming activities are documented, including expenses, revenue, and agreements. Keep detailed financial statements, contracts, and event records. Accurate records help comply with IRS guidelines and avoid errors. Regularly review and organize documents to ensure accessibility and clarity. This practice supports transparency and accountability, reducing the risk of audits or penalties. Proper record-keeping also aids in preparing timely and precise filings, fostering trust with stakeholders and the public.
10.2 Ensuring Compliance with IRS Guidelines
Compliance with IRS guidelines is critical when preparing Schedule G. Familiarize yourself with the instructions for reporting fundraising and gaming activities. Ensure all expenses, revenue, and agreements are accurately disclosed. Verify that your organization meets the thresholds for reporting professional fundraising services (over $15,000) or gaming income. Review IRS resources, such as the Instructions for Form 990, to understand specific requirements. Non-compliance can result in penalties or delayed processing. Regularly update your knowledge of IRS changes to maintain adherence and avoid issues during filing. Professional advice can also help ensure accurate and compliant submissions.
10.3 Consulting Professional Advisors
Consulting professional advisors is essential for ensuring accurate and compliant preparation of Schedule G. Tax professionals, such as CPAs or attorneys specializing in nonprofit law, can provide guidance on complex reporting requirements. They can help interpret IRS guidelines, ensure proper disclosure of fundraising and gaming activities, and verify that all expenses and revenue are correctly reported. Professionals can also assist with understanding thresholds for reporting professional fundraising services and gaming income. Their expertise minimizes errors and ensures compliance, reducing the risk of audits or penalties. Regular consultations can also help organizations stay updated on IRS changes and maintain best practices for transparency and accountability.
Schedule G is an essential tool for nonprofit transparency, ensuring accurate reporting of fundraising and gaming activities. It aids in compliance with IRS guidelines and maintains public trust.
11.1 Summary of Key Points
Schedule G (Form 990) is essential for nonprofits reporting fundraising and gaming activities. It ensures transparency and compliance with IRS requirements, detailing expenses, income, and disclosures. Organizations must file Schedule G if they meet specific thresholds, such as expenses over $15,000 for professional fundraising or significant gaming income. The schedule includes three parts: professional fundraising expenses, special events and gaming, and supplemental information. Accurate and timely reporting is crucial to maintain public trust and avoid penalties. Proper record-keeping and adherence to IRS guidelines ensure compliance and simplify the filing process.
11.2 Final Tips for Accurate and Timely Filing
Ensure accuracy by thoroughly reviewing IRS guidelines and seeking professional advice if needed. Maintain detailed records of fundraising and gaming activities to support Schedule G disclosures. Double-check calculations and ensure all required parts are completed. Submit Schedule G with Form 990 or 990-EZ by the designated deadline to avoid penalties. Verify compliance with state and local regulations for gaming activities. Transparently disclose all required information to maintain public trust and ensure compliance with IRS requirements. Timely filing demonstrates accountability and adherence to nonprofit reporting standards.
Additional Resources
Access IRS publications for detailed guidelines. Utilize nonprofit sector resources for practical guidance. Consult professional associations for expert support and updates.
12.1 IRS Publications and Guidelines
The IRS provides comprehensive resources for understanding Schedule G requirements. Visit the IRS website for Form 990 instructions, including specific guidance on fundraising and gaming activities. Review Publication 557 for insights into tax-exempt organizations. Additionally, consult the Form 990 Instructions for detailed explanations of each part of Schedule G. The IRS also offers webinars and workshops to help nonprofits navigate reporting obligations. Ensure compliance by referencing these official IRS materials, which cover topics like professional fundraising expenses and gaming income reporting. These resources are essential for accurate and timely filing of Schedule G.
12.2 Nonprofit Sector Resources
Nonprofit organizations can access valuable resources to navigate Schedule G requirements. The National Council of Nonprofits offers detailed guides and webinars on tax compliance. Additionally, the Urban Institute provides insights and tools for accurate reporting. Many state nonprofit associations also host workshops and provide templates. Professional accounting firms specializing in nonprofit tax law often publish step-by-step guides. These resources help ensure compliance with IRS guidelines for fundraising and gaming activities. Utilize these tools to understand and accurately complete Schedule G, ensuring transparency and adherence to regulatory standards for tax-exempt organizations.
12.3 Professional Associations and Support
Professional associations like the American Institute of Certified Public Accountants (AICPA) and the National Association of Nonprofit Accountants & Consultants (NANAC) offer extensive support for nonprofits. These organizations provide webinars, training sessions, and forums focused on tax compliance, including Schedule G. They often publish guides and checklists to help nonprofits navigate complex reporting requirements. Additionally, professional advisors with expertise in nonprofit tax law can assist with completing Schedule G accurately. Leveraging these resources ensures organizations meet IRS standards and maintain transparency in their fundraising and gaming activities, fostering trust and accountability within the nonprofit sector.