There are quite a few differences between GAAP accounting and the rules for reporting on the Form 990. I was recently reviewing the rules on reporting contributions on the 990 and thought I would share a few that are often overlooked.
Contributions that are not reported on the Form 990:
- Unreimbursed expenses of officers, employees, or volunteers
- Donation of services
- Advertising space
- Broadcasting airtime (including public service announcements)
- Discounts on services
- Donations of use of materials, equipment, or facilities
You can however report these donations in the narrative description of the appropriate program service. Although this information is not required to be reported including it in the program description will give a better understanding to a potential or current donor of how a program is being operated and supported.
If you have any of these types of contributions, be sure to let your tax preparer know.
By Kristin Cullen, CPA