Form 990 schedule M – Noncash contributions

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Schedule M of the Form 990 is required to be filled out by tax exempt organizations who received $25,000 or more in noncash contributions (in total) or received ‘contributions of art, historical treasures or other similar assets, or qualified conservation contributions.’ For the noncash contribution, the following information needs to be reported:

  • the type of property received
  • the quantity of the number of items that were contributed
  • the value of the contributions, as well as how the value of the contribution was determined by the organization

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Organizations can also provide additional details in the supplemental information section of the schedule. Types of contributions that should be included on the schedule are art, vehicles, securities, intellectual property, real estate, etc. The value of these donations may be valued at the cost, selling price, replacement cost or the cost determined by an expert (such as an appraiser).

Any contribution that was received during the year that meets the above criteria needs to be reported, regardless of whether the entity still has the noncash contributed item on hand. Noncash contributions received in prior years should not be included on this schedule. Donations of services and use of facilities are not reported on Schedule M.

At the end of the schedule, organizations are asked if they have a gift policy in place for ‘non-standard’ contributions. As a part of best practices, organizations should establish a gift acceptance policy. Also, at the end of the schedule, it asks if the organization hires a third party to solicit or sell noncash contributions.

Please contact your Henry+Horne nonprofit adviser with any questions.

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