Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities

2011

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

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding Fundraising or Gaming Activities
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
Note. Terms in bold are defined in the
Glossary of the Instructions for Form
990.

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
An organization that answered “Yes” to
Form 990, Part IV, Checklist of
Required Schedules, line 17, 18, or 19,
or meets the criteria for Form 990-EZ
filers described below, must complete
the appropriate parts of Schedule G
(Form 990 or 990-EZ) and attach
Schedule G 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, because the
organization reported a total of more
than $15,000 of expenses for
professional fundraising services on
Form 990, Part IX, Statement of
Functional Expenses, lines 6 and 11(e).
Form 990-EZ filers are not required to
complete Part I.
• Part II. Complete Part II if the
organization (1) answered “Yes” to
Form 990, Part IV, line 18, because the
organization reported a total of more
than $15,000 of fundraising event gross
income and contributions on Form 990,
Part VIII, Statement of Revenue, lines
1c and 8a, or (2) reported more than
$15,000 of fundraising event
contributions and gross income on
Form 990-EZ, Part I, lines 1 and 6b.
• Part III. Complete Part III if the
organization (1) answered “Yes” to
Form 990, Part IV, line 19, because the
organization reported more than
$15,000 of gross income from gaming
activities on Form 990, Part VIII, line
9a, or (2) reported more than $15,000
of gross income from gaming on Form
990-EZ, Part I, line 6a.
Dec 22, 2011

If an organization is not required to
file Form 990 or Form 990-EZ but
chooses to do so, it must file a
complete return and provide all of the
information requested, including the
required schedules.

Specific Instructions
Part I. Fundraising
Activities
Complete this part if the organization
reported a total of more than $15,000 of
expenses for professional fundraising
services on Form 990, Part IX, lines 6
and 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
tax year.
Line 2a. Check “Yes” if at any time
during the tax year the organization had
an agreement with another person or
entity in connection with professional
fundraising services. Do not include
an officer, director, trustee, or
employee who conducts professional
fundraising services solely in his or her
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
services such as strategy on mailing.
Line 2b. If “Yes” is checked on line 2a,
list in column (i) the ten highest paid
individuals or entities who were each to
be compensated at least $5,000 by the
organization for professional
fundraising services provided during
the tax year, and the business address
of each individual or entity.
Form 990-EZ filers are not
TIP required to complete line 2b.
Cat. No. 20376H

Column (ii). Enter the type(s) of
fundraising activities for 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
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,
internet 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 in Part IV.
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 tax
year.
A professional fundraiser can deliver
services during the tax 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 tax years.
Likewise, a fundraiser might be hired to
plan and produce programming for a
media campaign. Fees would be
properly reported in the tax year, but
there might be no receipts to report
until subsequent years when the
programming actually airs. In each
case, the organization can 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 in Part IV
and describe how the agreement
distinguishes payments for professional
fundraising services from expense
payments or reimbursements. Also
describe in Part IV 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. List all states in which the
organization is registered or licensed to
solicit contributions, or has been
notified that it is exempt from such
registration or licensing.

Part II. Fundraising
Events
Complete this part if the sum of the
amounts reported on Form 990, Part
VIII, lines 1c and 8a exceeds $15,000,
or if the sum of the amounts reported
on Form 990-EZ, line 6b and the line 6b
parenthetical exceeds $15,000. List
only fundraising events with gross
receipts greater than $5,000 that the
organization conducted at any time
during the tax year.
List the two largest fundraising
events with gross receipts greater than
$5,000 each in columns (a) and (b). In
column (c), enter 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, enter
“None.”

Revenue
Line 1. Enter the total amount the
organization received from column (a)
and column (b) during the tax 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 tax 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 tax 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
tax year. Enter the sum of columns (a),
(b), and (c) in column (d).
Line 3. Enter the gross income (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. 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 expenses paid or
incurred for food and beverages.
Include all direct expenses such as
catering.
Line 8. Enter the expenses paid or
incurred for entertainment, including
direct expenses for labor and wages.
Line 9. Enter the amount of other
direct expense items not included in
Part II, lines 4 through 8. The
organization should retain in its records
an itemized list of all other direct
expenses not included on lines 4
through 8. For labor costs and wages,
include the total amount of
compensation paid to fundraising
event workers or paid independent
contractors for labor costs.
Line 10. Add lines 4 through 9 in
column (d).
Line 11. Enter the difference between
line 3, column (d) and line 10. If line 10
is more than line 3, column (d), enter
the difference in parentheses.

Part III. Gaming
Complete this part if the organization
reported more than $15,000 from
gaming on Form 990, Part VIII, line 9a,
or 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).

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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
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 an itemized
list of all other direct expenses not
included on lines 2 through 4.
Mandatory distributions should be
shown on line 17.
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 tax
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, Monthly Tax
Return for Wagers, 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 2
through 5, in column (d).

Line 8. Enter the difference between
line 1, column (d), and line 7. If line 7 is
more than line 1, column (d), enter the
difference in parentheses.
For Form 990 filers, the
TIP amounts reported on 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. Enter all states in which the
organization operated gaming during
the tax year. If the organization needs
more space, use Part IV.
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, explain in the space provided. If
the organization needs more space,
use Part IV.
Line 10a. Check “Yes” if any of the
organization’s gaming licenses were
revoked, suspended, or terminated
during the tax year.
Line 10b. Provide an explanation for
each state in which the organization’s
license or registration was revoked,
suspended, or terminated during the tax
year. If the organization needs more
space, use Part IV.
Line 11. If the organization conducted
gaming with nonmembers during the
year, check “Yes.” Membership is
determined in accordance with the
organization’s organizing documents
and applicable law. For purposes of this
question, bona fide guests of members
attending with them should also be
treated as members. “Bona fide guests”
are individuals whom the member
invites and for whom the member pays.
If, for example, a nonmember pays for
his or her own wagers in gaming
activities, he or she is considered a
nonmember, even though he or she
may have entered the organization’s
premises with a member. Also, if an
organization requires only a nominal
payment to join as a “member,”
individuals making such a payment to
gain admission to the organization’s
facilities or activities are not considered
members or bona fide guests. See Pub.

3079, Tax-Exempt Organizations and
Gaming, for more information.
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 tax 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 not owned by the
organization.
Line 14. Enter 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 of
a personal residence of an individual.
Line 15a. An organization can 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, enter the gaming
revenue amount received by the
organization and the gaming revenue
amount retained by the third party. If
there is more than one third-party
operator, report the additional
operator(s) in Part IV.
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,
report the additional operator(s) in Part
IV.
Line 16. Complete this line for the
person who has overall supervision and

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management of the gaming operation.
Generally, this person has
responsibilities that can include
recordkeeping, money counting, hiring
and firing of workers, and making the
bank deposits for the gaming operation.
If the gaming manager is a director,
officer, or employee of the
organization, report only the portion of
that person’s compensation that is
allocable to gaming management. If
more than one person shares this
responsibility, report the additional
person(s) in Part IV.
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 tax year. Provide a
breakdown of required distributions, by
each state, in Part IV.
For more information, see Pub.
3079, Tax-Exempt Organizations and
Gaming.

Part IV. Supplemental
Information
Use Part IV to provide the narrative
explanations required, if applicable, to
supplement responses to Part I, line 2b,
columns (iii) and (v), and Part III, lines
9, 9b, 10b, 15b, 15c, 16, and 17b. Part
IV may also be used to supplement
other responses to questions on
Schedule G (Form 990 and 990-EZ). In
Part IV, identify the specific part and
line number that each response
supports, in the order in which those
parts and lines appear on Schedule G
(Form 990 or 990-EZ). Part IV can be
duplicated if more space is needed.