Special Fundraising Events: Reporting and Disclosure Requirements, Unrelated Business Income, Gaming Activities

Fundraising activities, as defined in the IRS Audit Technique Guide (ATG), are those "… undertaken to induce potential donors to contribute money, securities, services, materials, facilities, other assets, or time." Dinners and dances, auctions, carnivals, and concerts are a few examples provided in the APG of these types of activities.

Activities that are (1) unrelated to an organization's tax-exempt purpose, (2) regularly carried on, and (3) considered a trade or business may be deemed unrelated to the organization's tax-exempt purpose. These events could require the organization to file Form 990-T, Exempt Organization Income Tax Return, and remit unrelated business income tax. 

Additionally, the nonprofit organization must comply with IRS guidelines for reporting "quid pro quo" receipts, those that are partly contributions and partly for goods and services. Payments greater than $75 must be disclosed, and the disclosure must separate the tax-deductible and non-deductible portions of the payment. Making this determination can be problematic. 

Similarly, for contributions of $250 or more, the nonprofit organization must provide a written acknowledgment to the donor that meets IRS guidelines. Nonprofits and their advisers must understand the compliance requirements for fundraising events to ensure that donor contributions are deductible and that they remain in good standing with the IRS.

Listen as our nonprofit tax consultant explains how to identify special fundraising events and comply with IRS reporting guidelines.

I. Special fundraising events: introduction

II. Identifying fundraising events for tax purposes

III. Reporting fundraising on Form 990, Schedule G

IV. Donor substantial requirements

V. Unrelated business tax

VI. Gaming activities

The panel will cover these and other critical issues:

• Recognizing special fundraising events
• Special considerations for gaming activities
• Disclosing and separating quid pro quo donations
• When fundraising events are considered unrelated business income

Learning Objectives

After completing this course, you will be able to:

• Identify activities that are fundraising events
• Determine how and when fundraising activities are reported on Form 990, Schedule G
• Decide when special events could be subject to unrelated business income tax
• Ascertain special considerations for gaming activities

• Field of Study: Accounting
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of cost allocation principles; familiarity with government standards for nonprofit organizations receiving federal grant monies.

  
  

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IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).