For many charitable-minded people, the fall holiday season is a time for giving thanks and for giving donations. Many nonprofits tend to hold their largest fundraising events during this season of giving. We’ve put together a list of tips for reporting your event revenue and expenses when filing your Form 990.
You might find it helpful to create a spreadsheet or event folder that will help you keep track of required information until it is time to prepare the annual return.
What information will be required?
- Nonprofit organizations with fundraising revenue that exceeds $15,000 must report the information on Form 990.
- When reporting fundraising events, you will be asked to report events that raised $5,000 or more.
- You will be asked to include the revenue received from your two largest fundraising events held during the tax year.
What types of expenses will be reported?
- Any prizes your nonprofit awarded during the event must be reported. You will be asked to report the fair market value of any noncash prizes paid or given out. You can ask the manufacturer or vendor for this information or use the purchase price, if you purchased the prize.
- Rental expenses for renting or leasing a facility to hold the event.
- Expenses for food and beverages, including all direct expenses such as catering.
- Expenses for entertainment, including direct expenses for labor and wages.
What types of revenue will be reported?
- The total amount of revenue received from the event, without subtracting any expenses or costs.
- The total amount of contributions, gifts, and similar amounts (including the total value of noncash contributions) received by the organization for the event.
- The gross income (gross receipts less contributions) from events listed without reduction for catering, entertainment, cost of goods sold, compensation, fees, or other expenses.
If you need to file a Form 990-EZ, or Form 990-N for your nonprofit, we invite you to consider Aplos Software – you can check us out here or call us at 888-274-1316.
Below are also a few of our most popular accounting blogs and tax blogs that you may find helpful:
- Which Form 990 should my nonprofit submit
- Free Year-end Accounting Procedures Checklist
- Free Month-End Accounting Checklist
- Accountants Review Aplos Nonprofit Accounting Software
Good luck and remember this blog is not meant to be a substitute for professional accounting services, just a helpful resource. Always consult a CPA or trusted professional if you seek tax or accounting advice.