Question: Completing Ma form PC

Our pto holds a "special event" Christmas Marketplace/fundraiser. How are we supposed to record the cost of the items we purchase to sell on the MA Attorney Generals Form PC? Is the cost considered a "fundraising expense" (Line D) or a "Management and general expense" (line E)?

Asked by OCCT

Answers:

Advice from PTO Today

Craig writes:
It sounds like you're purchasing items to sell in order to raise funds. If that's the case, it would be a fundraising expense.

Community Advice

OCCT writes:
Craig, Yes, we are selling the items to raise funds. So, now I am thinking about the IRS 990EZ....Should I be recording the cost of the items on line 16 "other expenses" rather than 6b "special event direct expenses?" Which would mean that I record the revenue as a special event on 6a, but no direct expense on line 6b associated with it.....the expense would belong on line 16 (other expenses)?

Community Advice

gjcoram writes:
I believe MA and the IRS have slightly different definitions of "fundraising expenses." The IRS's definition appears to deal mostly with fees paid to fundraising companies -- telemarketing operators, etc. So, when I've filled out these forms, I have put the cost of items on Line D of form PC, but 6b of 990EZ. MA gets a copy of 990EZ, and they haven't told me I've done anything wrong, for the 4 years of forms I've filed.