Mastering Form 990 Schedule G: Reporting Fundraising and Gaming Activities for Nonprofits, UBTI Rules

Recording of a 110-minute CPE video webinar with Q&A

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Conducted on Tuesday, September 21, 2021

Recorded event now available

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Course Materials

This course will provide accounting and tax professionals advising tax-exempt organizations with the tools and understanding to properly report fundraising and gaming activities on Schedule G of Form 990 or Form 990-EZ. The panel will perform a deep dive of the accounting calculations and tax reporting rules for special events, including the dollar thresholds of professional fundraising costs, contributions, and gross gaming event income, as well as discuss the nuances of unrelated business taxable income (UBTI) and referencing Schedule G entries to other parts and schedules of Form 990.

Description

One of the more complex tasks for tax professionals advising nonprofit organizations is how to report net income from fundraising activities, special events, and gaming activities. Many tax-exempt organizations conduct fundraisers through raffles, bingo nights, and other types of gaming activities. Nonprofit reporting rules for gaming and fundraising income and expenses are complex, requiring separate accounting and reporting on a dedicated portion of Form 990, Schedule G.

There are three components to Schedule G; receipts and expenses from each activity class require separate reporting of income and expenses. Expenditures for fundraising activities over the statutory limit require a detailed schedule of the entities or persons the nonprofit paid. Fundraising events, reported on Part II of Schedule G, have separate reporting thresholds and requirements. Tax advisers must know the reporting thresholds and details of fundraising activities to report those activities on Schedule G.

Nonprofits who conduct gaming activities also have their own accounting and reporting requirements and come with the risk of entity-level taxes on UBTI. Nonprofits that earn UBTI over the stated threshold must pay tax (UBIT) on that income; excess UBTI can jeopardize an organization's tax-exempt status.

Listen as our experienced panel provides a comprehensive guide to completing Form 990 Schedule G and discusses the tax traps nonprofits must avoid in fundraising events and activities.

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Outline

  1. What activities qualify as fundraising events that must be reported on Schedule G
    1. Fundraising activities
    2. Fundraising events
    3. Gaming
  2. Schedule G reporting by activity
  3. UBTI issues with fundraising and gaming activities
  4. Other information reporting obligations

Benefits

The panel will discuss these and other critical questions:

  • How to differentiate between fundraising activities, fundraising events, and gaming events
  • Allocating expenses to fundraising events and activities
  • Reporting the respective activities on Part I, Part II, and Part III of Schedule G
  • Reconciling Schedule G information with other parts of Form 990
  • How to determine whether receipts from gaming activities qualify as UBTI
  • Advising exempt organizations on avoiding UBTI traps

Faculty

Czerniawski, Magdalena
Magdalena M. Czerniawski, CPA, MBA
Managing Director
CBIZ Marks Paneth

Ms. Czerniawski is a member of the firm’s Nonprofit, Government & Healthcare Group. With over 15 years of...  |  Read More

Fortsch, Zack
Zack Fortsch
Tax Partner
RSM US

Mr. Fortsch is a lead specialist with regards to tax-exempt issues for the firm. From a national perspective , he...  |  Read More

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