Form 990 Schedule M

Introduction

Schedule M, "Noncash Contributions," is used by tax-exempt organizations to report non-cash contributions received during the tax year. Understanding Schedule M is crucial for organizations to accurately report their financial activities and maintain compliance with IRS regulations.

In this resource guide, we will learn about the key aspects of Schedule M, from its purpose to filing requirements and commonly asked questions.

What is Schedule M?

Schedule M (Form 990) is used by an organization that files Form 990 to report the types of noncash contributionsreceived during the year by the organization and certain information regarding such contributions.

It also requires reporting of the quantity and the reported financial statement amount of noncash contributions received by type of property.

Who must file Schedule M?

An organization that answered “Yes” to Form 990, Part IV,lines 29 or 30, must complete Schedule M (Form 990) and attach it to Form 990.

Two main scenarios trigger the requirement to file Schedule M:

1. Aggregate Non-Cash Contributions: If the total value of non-cash contributions received during the tax year exceeds $25,000 on Form 990, Part VIII, line 1g, you must file Schedule M.
2. Specific Assets: Even with non-cash contributions below the $25,000 threshold, you still need to file Schedule M if your organization receives any of the following contributions in Form 990 Part VIII:
   1. Artwork, historical treasures, or similar valuable assets.
   2. Qualified conservation contributions (land or easements for conservation purposes).

Schedule M Filing Requirements

Below, we have provided Schedule M filing requirements for each part.

Part I - Types of Property

Provide information on the non-cash contributions you received and complete the information asked in the respective columns

Column (a)

Check if applicable

Column (b)

Number of contributions or items contributed

Column (c)

Noncash contribution amounts reported on Form 990, Part VIII, line 1g

Column (d)

Method of determining noncash contribution amounts

Line 1

Report donated art items such as paintings, sculptures, photos, antiques, textiles, rare books, and similar objects.

Line 2

Report donated buildings or properties that have recognized historical, cultural, or architectural importance.

Line 3

Report when a donor gives partial ownership of a work of art instead of the full piece. List the percentage of ownership received each year.

Line 4

Report donated books and publications. Don’t include rare books already reported as art or archival records reported elsewhere.

Line 5

Report donated clothing or household items only if they are in good used condition or better. Items not in good condition must be reported separately under “Other.”

Line 6

Report donated cars or other vehicles mainly used on public roads. The organization must issue and file Form 1098-C for these donations.

Line 7

Report donated boats and airplanes (also requires Form 1098-C).

Line 8

Report donated patents, copyrights, trademarks, trade secrets, or similar rights. The organization may need to file Form 8899.

Line 9

Report donations of stocks or investment interests that are traded on an established public market.

Line 10

Report donated shares of a company that is not publicly traded.

Line 11

Report donations of ownership interests in private partnerships, LLCs, or trusts that are not publicly traded.

Line 12

Report donated securities not already listed in Lines 9–11. Each separate gift is reported individually.

Line 13

Report donations where a donor gives a permanent restriction (easement) on the exterior of a certified historic building or structure to help preserve its historical appearance or value.

Line 14

Report other qualified conservation donations, such as land or easements given permanently to protect nature or public benefit purposes

Line 15

Report donations of homes or personal residences, including partial interests (like remainder interests). This includes vacation homes or cooperative housing units used as a residence.

Line 16

Report donations of business properties, such as office buildings, or farmland used for crops or livestock, including buildings or improvements on the farm.

Line 17

Report real estate donations not covered in Lines 15 or 16, such as land or other property interests.

Line 18

Report donated collectibles like coins, stamps, sports memorabilia, autographs, gems, jewelry, or similar items

Line 19

Report the value of donated food or food inventory, including food contributions received from businesses or companies.

Line 20

Report donated medicines, medical supplies, or similar items given by companies that manufacture or distribute them.

Line 21

This is for any donated mounts or displays that use real animal part

Line 22

Use this for antique household goods or decor, like vintage furniture, textiles, or old home fixtures. Just remember to keep artwork or ancient archaeological finds out of this specific box

Line 23

This covers items used for learning or research. It includes things like plant and animal samples, or geological finds like rocks and minerals

Line 24

This is the spot for ancient objects recovered through excavations, as well as cultural pieces from traditional or tribal communities that carry significant historical weight

Line 25-28

Use these lines for donated items not listed earlier, such as clothing or household goods not in good condition, nonqualified conservation easements, self-created materials or items used at charity auctions. Donated services or use of equipment or space shouldn’t be included here.

Line 29

Enter how many Form 8283s your organization received during the year for noncash donations that you reviewed and signed, as required by the Internal Revenue Service (IRS).

Line 30a

Select “Yes” if a donated noncash item must be kept for at least three years because of donor conditions or another agreement.

Line 30b

If you answered “Yes” on Line 30a, briefly explain in Part II why the property must be held and any rules attached to the donation.

Line 31

Answer “Yes” if the organization reviews unusual or difficult donations, such as items that don’t support its mission, are hard to sell, or have an uncertain value.

Line 32a

Answer “Yes” if your organization works with outside groups or related organizations to collect, process, or sell donated items. Answer “No” if the only outside help is a broker selling donated publicly traded securities. If “Yes,” briefly explain the arrangement in Part II.

Line 32b

If you answered “Yes” on 32a, use Part II to describe how these third parties handle the donations.

Line 33

If any donation type didn’t show revenue in column (c), explain in Part II why it wasn’t reported.

Part II - Supplemental Information

Use this part to provide narrative information required in Part I, column (b), and Part I, lines 30b, 32b, and 33, and whether the organization is reporting in Part I, column (b), the number of contributions, the number of items received, or a combination of both.

Also use Part II to provide other narrative explanations and descriptions, as needed. Identify the specific line number that the response supports. This part can be duplicated in case of space requirements.

Choose TaxZerone to complete your Schedule M filing

We at TaxZerone help to revolutionize your tax filing experience, making it as simple and stress-free as possible.

Here’s how your Form 990 return with Schedule M attachment is transmitted to the IRS in 3 simple steps!

1. Provide Organization Details - Choose the tax year for which you want to file a return, and provide your organization’s details.
2. Preview the Return - Complete Schedule M and preview the information provided in the return for accuracy before transmitting.
3. Transmit to the IRS - Transmit Schedule M and your 990 return to the IRS and get the acceptance in just a few hours.

In the unlikely event of an IRS rejection, we'll help you identify and correct any errors in your Form 990 information return, ensuring a swift and cost-free resubmission.