Form 990 Schedule B

Introduction

Schedule B is necessary for organizations striving to maintain transparency and compliance with the IRS. It is generally filed by tax-exempt organizations and Private foundations to report contributions they received.

In this resource article, we help you understand IRS Schedule B by explaining who must file, outlining the filing requirements, and highlighting key Schedule B instructions along with answers to commonly asked questions.

What is Schedule B?

Schedule B, Schedule of Contributors is a supplementary schedule filed annually by tax-exempt organizations ( Form 990/ 990-EZ) and private foundations (Form 990-PF) for reporting significant contributions received by the organization during the tax year.

It contains detailed information about donors who contribute $5,000 or more during the reporting period, including their names, addresses, and contribution amounts and to ensure proper reporting, organizations should carefully review the Form 990 Schedule B instructions before filing.

Who must file Schedule B?

Not all tax-exempt organizations are mandated to file IRS Schedule B. However, those falling under section 501(c)(3) of the Internal Revenue Code, encompassing charitable, educational, and religious organizations, must adhere to this requirement.

If your exempt organization or private foundation receives substantial contributions meeting or exceeding the $5,000 threshold from a single donor, Schedule B becomes a necessary filing obligation. You must be attached along with your information return.

Schedule B filing Requirements

All Section 501(c)(3) and Section 527 organizations that file Form 990/ 990-EZ or Form 990-PF must complete and attach Schedule B along with their information return.

Organization Information

Name of the Organization

Enter your organization’s full legal name exactly as it appears on your Form 990, 990-EZ, or 990-PF.

Organization Type

You’ll need to check the box that matches your organization type:

Form 990 or 990-EZ

• 501(c) ( ) Organization - Enter the correct subsection number (for example, 501(c)(3), 501(c)(4), etc.).
• 4947(a)(1) Nonexempt Charitable Trust (Not Treated as a Private Foundation)
• 527 Political Organization

Form 990-PF

• 501(c)(3) Exempt Private Foundation (Form 990-PF Filers)
• 4947(a)(1) Nonexempt Charitable Trust (Treated as a Private Foundation)
• 501(c)(3) Taxable Private Foundation

This part of Schedule B helps you figure out whether your organization is required to report certain contributors. The filing requirement is based on how much your organization received from individual donors during the year and the type of exempt organization you are.

General Rule

For most organizations that file Form 990, 990-EZ, or 990-PF, Schedule B is required if a single donor gave $5,000 or more during the year, whether the contribution was cash or property. When that happens, you’ll need to complete Parts I and II of Schedule B. Be sure to total all donations from the same person or entity before deciding whether the $5,000 limit has been reached.

Special Situations

Some organizations follow different limits.

• If you are a 501(c)(3) public charity that qualifies under the public support test, Schedule B is required when one contributor gives more than $5,000 or more than 2% of your total annual contributions (whichever is higher). In this case, you complete Parts I and II.
• If your organization is classified under 501(c)(7), 501(c)(8), or 501(c)(10), you must file Schedule B if any one contributor gave more than $1,000 strictly for religious, charitable, educational, scientific, literary, or similar purposes. When this applies, complete Part I (enter “N/A” instead of the contributor’s name), Part II, and Part III.
• If no individual donor gave more than $1,000 for those specific purposes, you only need to report the total amount received for those purposes. You do not complete the remaining parts unless the general $5,000 rule also applies.

When It’s Not Required

If your organization does not meet any of these thresholds, Schedule B is not required. However, you must confirm this on your main Form 990, 990-EZ, or 990-PF by indicating that Schedule B does not apply.

Part I - Contributors

To complete this section, organizations should provide details about the contributors who contributed more than $5000 in the tax year.

Column (a)

List each contributor in order. Start with No. 1 for the first donor, No. 2 for the second, and continue numbering consecutively.

Column (b)

• Section 501(c)(3) and Section 527 organizations must enter the contributor’s name, address, and ZIP code.
• If the donor’s identity is truly unknown, enter“Anonymous”.
• If your organization type is not required to disclose donor details, enter “N/A.”

Column (c)

Enter the total amount the contributor gave during the tax year.

Column (d)

Check the box that applies:

• Person – Direct cash donations (cash, check, credit card, wire transfer, etc.).
• Payroll – Donations given through an employer’s payroll deduction program.
• Noncash – Donations of property (such as equipment, supplies, or other goods).

Part II - NonCash Property

If the organization reported any NonCash type of contributions in Part I (Contributors), they should provide more details about those non-cash contributions in this part.

The details include:

• Description of noncash property, which are the details about the property received from the contributor.
• Fair Market Value (FMV)
• Date received - the date on which the property was received from the contributor.

Part III - Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from a single contributor

Only Section 501(c)(7), (8), or (10) organizations that received contributions (gifts) exclusively for religious, charitable, etc., purposes should report that information in this part.

Column (a)

Enter the contributor number that matches the same donor listed in Part I.

Column (b)

Briefly state why the donation was given (for example, for religious, charitable, educational, or similar purposes).

Column (c)

Explain how the organization actually used or plans to use the donated amount.

Column (d)

Describe how the funds are being held, for example, kept in a separate account or combined with other organizational funds.

Column (e)

If the donation was transferred to another organization, provide the transferee’s name, address, ZIP+4, and explain the relationship between your organization (transferor) and the receiving organization.

Choose TaxZerone to complete your Schedule B filing

TaxZerone is an IRS-authorized e-file service provider, offering more than just a seamless filing experience.

By filing with us, you get instant updates on your return's filing status, ensuring you're always in the loop.
At TaxZerone, we've designed a user-friendly platform that not only simplifies the e-filing process but also provides comprehensive support at every step.

Here's how your Form 990/990-EZ or Form 990-PF return with Schedule B attachment is transmitted to the IRS in 3 simple steps!

1. Provide Organization/Foundation Details - Choose the tax year for which you want to file a return, and provide the required details.
2. Preview the Return - Complete Schedule B and preview the information provided in the return for accuracy before transmitting.
3. Transmit to the IRS - Transmit Schedule B along with your Form 990/990-EZ or Form 990-PF return to the IRS and get the acceptance in just a few hours.

In case of IRS rejection for your information return, worry not! TaxZerone has your back. We offer a hassle-free correction and retransmission process, absolutely free of charge!