Sch G_Supplemental Information Regarding Fundraising or Gaming Activities

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Instructions for Schedule G (Form 990 or 990-EZ) 15:57 - 5-SEP-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2008

Department of the Treasury
Internal Revenue Service

Instructions for Schedule G
(Form 990 or 990-EZ)
Supplemental Information Regarding Fundraising or Gaming Activities
Section references are to the Internal
Revenue Code unless otherwise noted.

Specific Instructions

General Instructions Part I. Fundraising
Purpose of Schedule
Schedule G (Form 990 or 990-EZ) is
used by an organization that files Form
990 or Form 990-EZ to report
professional fundraising services,
fundraising events, and gaming.

Who Must File
Any organization that answered “Yes”
to Form 990, Part IV, Checklist of
Required Schedules, lines 17, 18, or
19, or entered an amount on Form
990-EZ, Part I, line 6, must complete
the appropriate parts of Schedule G
(Form 990 or 990-EZ) and attach it to
Form 990 or Form 990-EZ, as
applicable.
• Part I. Complete Part I if the
organization answered “Yes” to Form
990, Part IV, line 17, and reported more
than $15,000 on Form 990, Part IX,
Statement of Functional Expenses, line
11(e).
• Part II. Complete Part II if the
organization answered “Yes” to Form
990, Part IV, , line 18, and reported a
total of more than $15,000 on Form
990, Part VIII, Statement of Revenue,
lines 1c and 8a in the aggregate.
• Part III. Complete Part III if the
organization answered “Yes” to Form
990, Part IV, line 19, and reported more
than $15,000 on Form 990, Part VIII,
line 9a.
• Form 990-EZ. Any organization that
reported more than $15,000 from
fundraising events and gaming on
Form 990-EZ, line 6a, must also
complete and attach Schedule G (Form
990 or 990-EZ), Part II or Part III (as
applicable) to Form 990-EZ. Schedule
G (Form 990 or 990-EZ), Part I, is not
required to be completed by Form
990-EZ filers.
If an organization is not required to
file Form 990 or Form 990-EZ, it is not
required to file Schedule G (Form 990
or 990-EZ).

Activities
Complete this part only if the
organization reported more than
$15,000 on Form 990, Part IX, line 11e.
Form 990-EZ filers are not required to
complete Part I.
Line 1. Check the box in front of each
method of fundraising used by the
organization to raise funds during the
taxable year.
Line 2a. Check “Yes” if at any time
during the year the organization had an
agreement with another person or entity
to perform professional fundraising
services. Do not include an officer,
director, trustee, or employee who
conducts professional fundraising
services solely in this capacity as an
officer, director, trustee, or employee
of the organization.
The organization must report all
agreements for professional
fundraising services regardless of the
form of agreement (written or oral). For
example, an organization that had a
written contract with a business to
supply printing and mailing services
would report that agreement here if the
business also provided to the
organization professional fundraising
service such as advice on graphics
design or strategy on mailing.
Line 2b. If “Yes” is checked on line 2a,
list the ten highest paid individuals or
entities who were each paid at least
$5,000 by the organization in the
taxable year for professional
fundraising services in column (i).
Form 990-EZ filers are not

TIP required to complete line 2b.
Column (ii). Enter the type(s) of
fundraising activities with respect to
which the professional fundraiser
performed services.
Report the fundraising activities
consistently with terms used by the
organization in the management of its
fundraising program. For example, if an
organization contracts with a single
Cat. No. 20376H

fundraiser to advise on and coordinate
all of its direct mail fundraising, it might
enter “consults on direct mail program.”
If a consultant were hired to perform
data analysis for all aspects of an
organization’s public solicitation, it
might enter “provides database
consulting for direct mail, telephone,
and email.”
Column (iii). For this purpose,
custody or control means possession of
the funds or the authority to deposit,
direct the use of, or use the funds.
Describe the custody or control
arrangement on Schedule O (Form
990), Supplemental Information to Form
990.
Column (iv). Enter the gross
receipts connected to the services
provided by the fundraiser listed in
column (i) and received by the
organization, or by the fundraiser on
the organization’s behalf, during the
taxable year.
A professional fundraiser may
deliver services during the taxable year
and be properly reported on line 2b but
have no gross receipts to report in
column (iv). For example, an
organization may retain a fundraiser to
conduct a feasibility study for a capital
campaign. The campaign, if there were
to be one, could be conducted in, and
produce receipts in, subsequent taxable
years. Likewise, a fundraiser might be
hired to plan and produce programming
for a media campaign. Fees would be
properly reported in the taxable year,
but there might be no receipts to report
until subsequent years when the
programming actually airs. In each
case, the organization may properly
report a “0” in column (iv).
Column (v). Enter the dollar
amounts in fees paid to or fees withheld
by the fundraiser for its professional
fundraising services.
If the agreement provides for the
payment of fees and also for the
payment of fundraising expenses, such
as printing, paper, envelopes, postage,
mailing list rental, and equipment rental,
the organization must report such
amounts paid during the year on
Schedule O (Form 990) and describe
how the agreement distinguishes

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Instructions for Schedule G (Form 990 or 990-EZ)

15:57 - 5-SEP-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

payments for professional
fundraising services from expense
payments or reimbursements. Also
describe on Schedule O (Form 990)
whether the organization entered into
any arrangements with fundraisers
under which the organization made
payments exclusively for such
expenses but not for professional
fundraising services. If the agreement
does not distinguish between fees for
professional fundraising services
and payment of fundraising expenses,
then the organization must report in
column (v) the gross amount paid to (or
withheld by) the fundraiser.
Column (vi). Subtract column (v)
from column (iv).
Line 3. If the organization is registered
or licensed, or has been notified that it
is exempt from registration or licensing,
in all states requiring registration or
licensing for solicitation, it may answer
“All states.”

Part II. Fundraising
Events
Complete this part only if the
organization reported a total of more
than $15,000 on Form 990, Part VIII,
lines 1c and 8a, or a total of more than
$15,000 on Form 990-EZ, line 6a. List
only fundraising events with gross
receipts greater than $5,000 that the
organization conducted at any time
during the year.
List the two largest fundraising
events with gross receipts greater than
$5,000 each in columns (a) and (b). In
column (c), report the total number of
other events with gross receipts greater
than $5,000 each and report revenues
and expenses from these events in the
aggregate. If no events other than
those listed in columns (a) and (b),
exceeded the $5,000 threshold, state
“None.”

Revenue
Line 1. Enter the total amount the
organization received from column (a)
and column (b) during the taxable year
without subtracting any costs,
expenses, or charitable contributions
received in connection with the event.
Enter in column (c) the total amount the
organization received from all other
events with gross receipts greater than
$5,000 during the taxable year without
subtracting any costs, expenses, or
charitable contributions received in
connection with the events. Enter the
sum of columns (a), (b), and (c) in
column (d).
Line 2. Enter the total amount of
contributions, gifts, and similar amounts
(including the total value of noncash
contributions) received by the
organization for events in columns (a)

and (b) during the taxable year. Enter in
column (c) the total amount of
contributions, gifts, and similar amounts
received by the organization from all
other fundraising events with gross
receipts greater than $5,000 during the
taxable year. Enter the sum of columns
(a), (b), and (c) in column (d).
Line 3. Enter the gross revenue (gross
receipts less contributions) from events
listed without reduction for catering,
entertainment, cost of goods sold,
compensation, fees, or other expenses.
Enter the total of columns (a), (b), and
(c) in column (d).

Direct Expenses
Enter the expense amount in the
appropriate column (a through c) for
events with gross receipts greater than
$5,000 each. Catering and
entertainment expenses should be
included as other direct expenses.
Enter the total of columns (a), (b), and
(c) in column (d).
Line 4. Enter the total amount paid out
as cash prizes.
Line 5. Enter the fair market value of
the noncash prizes paid or given out
for each fundraising event.
Line 6. Enter the expenses paid or
incurred for the rent or lease of property
or facilities.
Line 7. Enter the amount of other
direct expense items, such as catering,
entertainment, labor, etc., not included
in Part II. lines 4 through 6. The
organization should retain in its records
a schedule providing an itemized listing
of all other direct expenses not included
on lines 4 through 6. For labor costs
and wages, include the total amount of
compensation paid to fundraising
event workers or paid to independent
contractors for labor costs.
Line 8. Add lines 4 through 7 in
column (d). Enter the total of columns
(a), (b), and (c) in column (d).
Line 9. Enter the difference between
lines 3d and 8d.

Part III. Gaming
Complete this part only if the
organization reported more than
$15,000 on Form 990, Part VIII, line 9a,
or on Form 990-EZ, line 6a.
Treat all bingo as a single event for
column (a) and all pull tabs as a single
event for column (b).
Include in column (c) all other types
of gaming not included in column (a) or
(b).
Complete Part III for each type of
gaming conducted.

Revenue
Line 1. Enter the gross revenue (gross
receipts less contributions) for each

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type of gaming conducted without
reduction for cash or noncash prizes,
cost of goods sold, compensation, fees,
or other expenses. Enter the total of
columns (a) through (c) in column (d).

Direct Expenses
Enter the expense amount in the
appropriate column (a through c) for
each type of gaming conducted. Enter
the total of columns (a) through (c) in
column (d).
Line 2. Enter the total amount paid out
as cash prizes.
Line 3. Enter the fair market value of
the noncash prizes paid or given out for
each type of gaming conducted.
Line 4. Enter the expenses paid or
incurred for the rent or lease of property
or facilities.
Line 5. Enter the amount of other
direct expense items not included on
lines 2 through 4. The organization
should retain in its records a schedule
providing an itemized listing of all other
direct expenses not included on lines 2
through 4.
The itemized list of direct expenses
should include the following:
• Labor costs and wages, including the
total compensation paid to gaming
workers or independent contractors for
labor costs;
• Employer’s share of federal, state,
and local payroll taxes paid for the year
for gaming workers, including social
security and Medicare taxes, state and
federal unemployment taxes, and other
state and local payroll taxes;
• Excise taxes, including any wagering
tax paid with Form 730, Tax on
Wagering, and any occupational tax
paid with Form 11-C Occupational Tax
and Registration Return for Wagering.
Line 6. If substantially all of the
organization’s work in conducting a
type of gaming is performed by
volunteers, check “Yes” and enter the
percentage of total workers who are
volunteers for each type of gaming
conducted. The percentage is
determined by dividing the number of
volunteers for each type of gaming by
the total number of workers for that
type of gaming, both paid and unpaid.
Line 7. Enter the total of lines 2d
through 5d.
Line 8. Enter the difference between
lines 1d and 7. If line 7 is more than line
1, enter the difference in parentheses.
For Form 990 filers, the

TIP amounts from line 1, column (d);
line 7; and line 8; must equal
the amounts reported on Form 990,
Part VIII, lines 9a, b, and c,
respectively.
Line 9. List all states in which the
organization operated gaming during

Page 3 of 3

Instructions for Schedule G (Form 990 or 990-EZ)

15:57 - 5-SEP-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

the taxable year, if needed. Schedule O
(Form 990) provides additional space.
Line 9a. Check “Yes” only if the
organization is licensed or otherwise
registered to operate gaming in each
state listed on Line 9.
Line 9b. If the organization is not
licensed or otherwise registered to
operate gaming in any state listed on
Line 9, provide a narrative statement of
explanation. Schedule O (Form 990)
provides additional space, if needed.
Line 10a. Check “Yes” or “No.”
Line 10b. Provide a narrative
statement of explanation for each state
in which the organization’s license or
registration has been revoked,
suspended, or terminated during the
taxable year. Schedule O (Form 990)
provides additional space, if needed.
Line 11. If the organization conducted
gaming with nonmembers during the
year, check “Yes.”
Line 12. If the organization is a
grantor, beneficiary, or trustee of a trust
or a member of a partnership or other
entity formed to administer charitable
gaming, check “Yes.” For purposes of
this question, “a partnership or other
entity” means two or more
organizations that are authorized under
state law to conduct bingo or other
gaming at the same location joining
together to account for or share
revenues, authorized expenses, and
inventory related to bingo and gaming
operations.

Line 13a. Enter the percentage of
gaming conducted during the year in a
facility or facilities owned by the
organization. The facility or facilities
need not have been used exclusively
for gaming.
Line 13b. Enter the percentage of
gaming conducted during the year in a
facility or facilities owned by the
organization.
Line 14. Provide the person’s name
and business address (or the
organization’s business address) if the
books and records are kept by such
person at a personal residence. The
organization is not required to provide
the address or telephone number of a
personal residence of an individual.
Line 15a. An organization may pay its
own employees to operate gaming, or
contract with a third party for such
services. Check “Yes” or “No” to
indicate whether the organization has a
contract with a third party from which it
receives gaming revenue.
Line 15b. If the organization checked
“Yes” to line 15a, indicate the gaming
revenue received by the organization
and the gaming revenue amount
retained by the third party. If there is
more than one third party operator,
Schedule O (Form 990) provides space
to report the additional operator(s).
Line 15c. If the organization checked
“Yes” to line 15a, enter the name and
address of the third party. If there is
more than one third party operator,

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Schedule O (Form 990) provides space
to report the additional operator(s).
Line 16. Complete this line for the
person who has overall supervision and
management of the gaming operation.
Generally, this person has
responsibilities that may include
recordkeeping, money counting, hiring
and firing of workers and making the
bank deposits for the gaming operation.
If more than one person shares this
responsibility, Schedule O (Form 990)
provides space to report the additional
person(s).
Line 17a. Some states require that
charitable organizations make
mandatory distributions from gaming
proceeds to obtain and retain a valid
gaming license. Check “Yes” or “No” to
indicate whether the organization is
required to make mandatory
distributions from its gaming proceeds
to retain its gaming license or
registration in any state.
Line 17b. For all states in which the
organization operated gaming, enter
the aggregate amount of distributions
required under state law to be
distributed to other exempt
organizations or spent in the
organization’s own exempt activities
during the taxable year. Provide a
breakdown of required distributions, by
each state, in Schedule O (Form 990).
For more information, see Pub.
3079, Gaming Publication for
Tax-Exempt Organizations.