Question: Recording raffle and food donations

How do you typically show donations of food (supermarket gift certificates, food donations) and donations of raffle items on pto's treasurer report. These also do have to be reported on line 1 of 990ez correct?

Asked by OCCT

Answers:

Community Advice

Critter writes:
An accountant probably has the more proper answer, but from the lay person's perspective...we don't show these donations on our treasurer's report. They should, howeever, be documented in the project binder for the event so future chairpersons know the items were donated, not purchased. Yes, the logical place to report them on the 990EZ is Line 1. However, if the value isn't really substantial (you define substantial vis-a-vis your total budget), you may not need to report them at all. When in doubt, call the IRS and describe your specific situation. 1-800-829-5500.

Community Advice

Critter writes:
Yikes - the phone number above is wrong. The proper number for the IRS Tax-Exempt help line is 1-877-829-5500. Sorry!

Community Advice

Critter writes:
I went ahead and called the IRS (using the right number!) and here is some more info....Yes, the fair market value of non-cash donations like food should be included in Line 1 of Part I of the 990EZ. There is also a new Schedule G to got along with the 990EZ that requires you to list your top fundraising projects. For each project, they ask for Gross Receipts which is intended to include non-cash donations such as donated prizes (line 1, Schedule G), next you back out the value of the non-cash donations (line 2/G). Below that, you list all value of cash prizes and non-cash prizes that you give away as part of that fundraiser. So, if a sponsor gives you money toward your Fun Run t-shirts, that's a cash donation and it's part of Gross Receipts (Line 1/g). If a business gives you a gift card for their store, it's treated like cash so it is in Line 1/G too. However if a store donates a basketball as a prize, its value goes in Line 1 AND Line 2 as a non-cash donation. This would make much more sense if you have the Sched G in front of you. It's a little hard to explain in this format. Hope this helps!

Community Advice

PTOSlave writes:
How do you record Non-cash Contributions on the 990EZ? If we receive $200 in non-cash food donations and record it on Line 1, wouldn't that boost total revenue up by $200, and also trickle down to line 21 and line 27, making net fund balances appear to have $200 more than it should? Help!