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

This webinar will review how to recognize special events held by nonprofit organizations and satisfy the IRS guidelines for required disclosures to donors. Our tax-exempt expert will also discuss reporting these events on Form 990, Schedule G, and the criteria for determining when these fundraising activities are subject to unrelated business income tax.

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.