Table of Contents
1. What is the Purpose of Form 990 Schedule-B?
Schedule B is used by the Nonprofit Organizations to report information about the contributors who contributed the greater of $5,000 or more than 2% of revenues.
2. Who must file Form 990 Schedule-B?
Eventually, a Non Profit Organization must file Schedule B with Form 990 if it receives contributions of the greater of $5,000 or more than 2% of revenues from any one contributor.
Special rules apply for certain 501(c)(3) Nonprofit Organizations that may raise the reporting threshold above $5,000.
Special rules also apply for Organizations under section 501(c)(7), 501(c)(8), and 501(c)(10) filing Form 990 or 990-EZ, which may require reporting contributions lower than the $5,000 threshold.
3. What Accounting Method to use for calculating Schedule B?
4. Instructions to complete Form 990 Schedule B
Part I of Schedule B - Contributors
Nonprofit Organizations must report the contributors' information such as name, address, total contributions, type of contribution (Person, payroll, Noncash) to the IRS on part I of Schedule B.
Individuals, fiduciaries, partnerships, corporations, associations, trusts, and exempt organizations are considered as Contributors.
In addition, section 509(a)(2), 170(b)(1)(A)(iv), and 170(b)(1)(A)(vi) organizations must also report governmental units as contributors.
Part II - Noncash Property
Enter the Noncash property received from the contributors during the tax year regardless of the value of that noncash contribution.
Also, report the property with readily determinable market value (for instance, market quotations for securities) by listing its fair market value (FMV) and the date you received.
Part III - Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from a single contributor
Organizations under Section 501(c)(7), (8), or (10) that received contributions for religious, charitable, etc., purposes during the tax year must complete Part III of Schedule-B for each person whose gifts totaled more than $1,000 during the tax year.
Amount kept exclusively for religious, charitable, etc., purpose, show how the amount is held. If the organization transferred the gift to another organization, show the Name and address of the transferee organization, and explain the relationship between the two organizations.
5. Other Resources in Form 990 Schedule B
What is the general rule?
Unless one of the Special Rules applies to an organization, it must list every contributor in Part I who gave the organization - directly or indirectly - money, securities, or any other type of property that total $5,000 or more for the organization's filing tax year.
What are special rules?
For an organization described in section 501(c)(3) that meets the 33 and 1/3% support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi), and not just the 10% support test (whether or not the organization is otherwise described in section 170(b)(1)(A)), the following applies:
List in Part I only those contributors whose contribution of $5,000 or more during the tax year is greater than 2% of the amount reported on Form 990-EZ, Line 1 or Form 990, Part VIII, line 1h.
What is considered a contribution?
Contributions are donations, grants, bequests, devices, and gifts of money or property, whether or not for charitable purposes. Any individual who contributes to a tax-exempt organization is considered a contributor.
What is noncash property?
Noncash property is gained through contributions of anything but money. These contributions require an explanation, as well.
What are exclusively religious, charitable contributions?
A religious, charitable contribution means a contribution or gift to or for the use of a corporation, trust, or community chest, fund, or foundation organized and operated exclusively for religious and charitable purposes.
Form 990 Schedule B: Section Information
Section 4947(a)(1) nonexempt charitable trust not treated as a private foundation Charitable trusts which fall under this section are treated as section 501(c)(3) organizations for deductible contributions.
Section 527 Political Organizations
Section 527 defines political organizations, meaning a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for directly or indirectly accepting contributions or making expenditures, or both, for an exempt
Section 170(b)(1)(A)(iv) is an organization formed for the principal purpose of engaging primarily in the conduct of medical research. An organization will be considered to be formed for this reason if it is expressly organized to conduct medical research and is an engaged function, primarily in the conduct of medical research.
Section 501(c)(7), (8), and (10)
Section 501(c)(7) pertains to social clubs. To be exempt, a social club must meet the following requirements:
- Must be organized for exempt purposes.
- Substantially all of its activities must further exempt purposes.
- Must provide an opportunity for personal contact among members, and membership must be limited.
- Must be supported by membership fees, dues, and assessments.
- The organization's net earnings may not inue to the benefit of any person having a personal and private interest in its activities.
- The club's governing instrument may not contain a provision that provides for discrimination against any person based on race, color, or religion.
- May not hold itself out as providing goods and services to the general public.
Section 501(c)(8) defines what actions a fraternal beneficiary society must take to be tax-exempt. The actions include:
- Must have a fraternal purpose
- Must operate under the lodge system
- Must provide for the payment of life, sick, accident, or other benefits
Organizations listed under section 501(c)(10) are considered Domestic Fraternal Societies. In order to remain tax-exempt, these organizations must:
- Be organized in the US
- Operate under the lodge system
- Devote its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes
- Do not provide for the payment of life, sick, accident, or other benefits to its members
501(c)(3) exempt private foundation
A domestic or foreign organization exempt from income tax under 501(a) described in section 501(c)(3); however, it is different from organizations described in sections 509(a)(1) through (4) such as churches, schools, publicly supported organizations, etc.
4947(a)(1) nonexempt charitable trust treated as a private foundation
A trust that isn't exempt from tax under section 501(a), has unexpired interests devoted to religious, charitable, or other purposes described in section 170(c)(2)(B), and charitable deductions that are allowed under section 4947(a)(1).
501(c)(3) taxable private foundation
An organization that previously was recognized as being exempt, but has lost that recognition. Though it may operate as a taxable entity, it will continue to be treated as a private foundation until that status is terminated.
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