How to Report Fundraising Event Income on Form 990-EZ? 

Introduction 

When you conduct any form of fundraising for your tax-exempt organization, you must report the income and expenses from it properly on your IRS Form 990-EZ. Depending on the type of fundraising conducted, an additional Schedule G needs to be filed along with the tax return.  
 
In this article, you will learn how to report your income from fundraising events on IRS Form 990-EZ, where to report it, when to use Schedule G, and the IRS guidelines. 

What Is a Fundraising Event on Form 990-EZ? 

A fundraising event is an activity arranged by a nonprofit to raise funds to advance its purpose or programs. Such fundraising events usually entail payments made by the participants through tickets, registration, sponsorship, or purchases, which will then be used for the benefit of the organization.  
Examples of fundraising events:  

• Charity dinner or gala  
• Auction (either live or silent)  
• Golf tournament  
• Walkathon or charity run  
• Benefit concert or performance  
• Raffles or fairs and other fundraising events  

In completing Form 990 EZ, the organization should include in its tax return the gross income, direct expenses, and profit/loss of the fundraising events. In case the organization has fundraising activities that fall within the filing threshold of the IRS, it will have to complete Schedule G also. 

Where to Report Fundraising Event Income on Form 990-EZ? 

Report fundraising event income in Part I – Revenue of Form 990-EZ using the following lines: 

• Line 6a – Gaming Revenue: Report the gross income from gaming activities. 
• Line 6b – Fundraising Events: Report the gross receipts from all fundraising events before any expenses are deducted. Exclude income from gaming activities, which must be reported on Line 6a. 
• Line 6c – Direct Expenses: Report direct expenses incurred in connection with the conduct of fundraising events such as venue rentals, event materials, entertainment, and other related expenses. 
• Line 6d – Net Income (or Loss): Deduct direct expenses from line 6c from gross receipts from line 6b and report the net income (loss). 

Reporting the correct amounts on these lines helps ensure your organization accurately reflects the financial results of its fundraising activities. If your organization meets the IRS filing requirements for Schedule G, you’ll also need to provide additional information about your fundraising events along with 990-EZ. 

Understanding Fundraising Event Reporting Terms  

Before reporting fundraising event income on Form 990-EZ, it’s important to understand the key terms used by the IRS. The table below explains what each reporting term means and where it is reported. 

Understanding these terms will help you accurately report fundraising event income on Form 990-EZ. 

When Is Schedule G Required for Form 990-EZ? 

• If your organization files Form 990-EZ, you may also need to include Schedule G if you had fundraising events or gaming activities during the year. 
• In general, Schedule G is required when your organization reports more than $15,000 in gross income from fundraising events or gaming activities for the tax year. This schedule gives the IRS a closer look at those activities, including gross receipts, direct expenses, and the number of events your organization held. 
• If you’re not sure whether your organization meets this requirement, it’s wise to review the IRS instructions carefully before filing Form 990-EZ. 

📝 Note: If Schedule G is required, you’ll need to provide additional details about your fundraising events, including the gross receipts, direct expenses, and net income (or loss) for the tax year. This information should be consistent with the amounts reported on Form 990-EZ, Part I. 

How to Report Fundraising Event Income on Form 990-EZ 

Follow these steps to report fundraising event income on Form 990-EZ: 

Step 1: Report Gross Receipts (Line 6b) 

Enter the total gross receipts from all fundraising events before deducting any expenses. This includes: 

• Ticket sales (up to the fair market value) 
• Dinner or event admission fees 
• Auction item purchases (up to the item’s retail value or the winning bid, whichever is lower) 
• Other event-related revenue, excluding sponsorships and raffles 

Do not include income from gaming activities, as it should be reported separately on Line 6a. 

Step 2: Report Direct Expenses (Line 6c) 

Enter the expenses directly associated with conducting the fundraising events, such as venue rental, catering, entertainment, decorations, and event supplies. 

Step 3: Calculate Net Income or Loss (Line 6d) 

Subtract the direct expenses reported on Line 6c from the gross receipts reported on Line 6b. Report the resulting amount as the net income or loss from fundraising events. 

Review all amounts before filing to ensure they are accurate and consistent with your organization’s financial records. If your organization is required to file Schedule G, the information reported there should match the amounts reported on Form 990-EZ. 

Common Mistakes to Avoid  

When reporting fundraising event income on Form 990-EZ, avoid these common mistakes: 

• Reporting net income instead of gross receipts on Line 6b. 
• Reporting employee salaries or advertising costs as direct fundraising event expenses instead of reporting them under the appropriate expense categories. 
• Making calculation errors when figuring net income or loss on Line 6d. 
• Reporting amounts that do not match Schedule G when required. 
• Failing to keep records for fundraising income and expenses. 

Review your financial records carefully before filing to make sure the amounts reported on Form 990-EZ are complete, accurate, and consistent with any required schedules.