The Core Form: Parts VIII–XII

Part VIII: statement of revenue

• Line 1a, contributions received through federated campaigns (United Way), which allocate by donor designation. 1b, membership dues that are contributions rather than purchases; dues that roughly match benefits go to line 2; split mixed dues (value of benefits on line 2, excess on 1b). A symphony member who can buy tickets early at the same price and attend rehearsals free is a contributor (Ex. 2.12). 1c, the contribution part of fundraising-event receipts — also shown in parentheses on line 8a. 1d, from related organizations. 1e, government grants. 1f, everything else.
• 1g, noncash: anything other than cash, checks, money orders, card charges and wires, valued at receipt even if sold the same day; a stock gift delivered to the broker and sold is a contribution on 1f/1g and a sale on 7a–7d (Ex. 2.14). Over $25,000 → Part IV line 29 “Yes” and Schedule M. Donated services and donated use of facilities are never revenue even under GAAP. Uncollectible pledges, refunds and grant reversals go to Part XI line 9, not here.
• Line 2, program service revenue: the five largest sources by name with NAICS code, then all other — tuition, admissions, fees from a government agency for services to the agency, program-related investment income, exempt-function rents, royalties on an educational publication. An unrelated fee activity can also sit here (with its revenue in column C).
• Lines 3–7: investment income, bonds, royalties, gross rents less expenses, other investment income, gains and losses on sales (securities and other property, with cost and expenses). Line 8, fundraising events: dinners, concerts, carnivals, auctions, door-to-door sales — not nominal-value items, not raffles with nominal prizes, not solicitation campaigns that only produce gifts (those are contributions). The retail value of what the donor gets is event revenue on 8a; the excess is a contribution on 1c and in the parentheses. A $40 gift that comes with a $16 book is $16 on 8a and $24 on 1c (Ex. 2.13); a logo keychain for every donor is all contribution (Ex. 2.16). 8b direct expenses; indirect fundraising costs (advertising) go to Part IX column D. Fundraising generates two kinds of revenue: contributions and income. [Final Q22, A; Q26, C; marked]
• Line 9, gaming, gross less direct expenses. Line 10, sales of inventory less cost of goods sold. Line 11, miscellaneous revenue with business codes. Line 12, total.

Part IX: functional expenses

• Column A total; B program services; C management and general; D fundraising. (c)(3)s and (c)(4)s must complete all four columns; others only column A. There is no UBTI column — UBTI expenses are wherever they fall by function. [Final Q23, B; marked]
• Lines 1–3 grants (domestic organizations, individuals, foreign — the Schedule I and F triggers at $5,000). Line 5 compensation of current officers, directors, trustees and key employees on the fiscal-year, book basis, including pay for services in other capacities; line 6 compensation to other disqualified persons under §4958(f)(1) ((c)(3)s and (c)(4)s); 7 other salaries; 8–10 pension, benefits, payroll taxes; 11a–g fees for management, legal, accounting, lobbying, professional fundraising (the $15,000 Schedule G Part I trigger), investment management, other (payroll services and PEOs go on 11g, not line 7); 12 advertising and promotion including fundraising printing; 13 office expenses including general printing and bank fees; 14 information technology; 16 occupancy; 17 travel; 22 depreciation; 23 insurance; 24a–e other, itemized on Schedule O if 24e exceeds 10% of line 25; 25 total; 26 joint costs (SOP 98-2 / ASC 958-720 allocation of combined educational-and-fundraising mailings, which the instructions and watchdogs both look at).
• Allocation: a key employee who spends 90% of her time on the program and 10% on administration is 90/10 between B and C (Ex. 2.17); an unpaid director employed part-time as a fundraiser is 100% D (Ex. 2.18). Fundraising expense is everything that goes into soliciting gifts, grants and bequests, with overhead — including the cost of events whose receipts land on 1c and 8a.

Parts X–XII: balance sheet, reconciliation, financial statements

• Part X: beginning and end of year. Lines 5–6 receivables from insiders and disqualified persons (Schedule L); lines 10a–c fixed assets (Schedule D Part VI); 11–13 investments (Schedule D Parts VII–VIII if 5% of assets); 15 other assets; 22 loans to insiders (Schedule L); 25 other liabilities (Schedule D Part X with the FIN 48 footnote verbatim). Line 12 partnership interests at the ending capital account on the K-1. Net assets: without donor restrictions (27) and with donor restrictions (28) under ASC 958 as amended by ASU 2016-14 — restrictions are the donor’s, not the board’s. Line 32 must equal Part XI line 10.
• Part XI: revenue less expenses, beginning net assets, unrealized gains, donated services and facilities (here, not in revenue), investment expenses, prior-period adjustments, other changes (uncollectible pledges, refunds, grant reversals) → ending net assets.
• Part XII: cash, accrual or other; compiled, reviewed or audited by an independent accountant and whether a committee oversees the audit and chooses the auditor; whether a Single Audit (Uniform Guidance) was required for federal awards and done. Colorado’s charitable-solicitation renewal asks for the same financial figures; a Colorado nonprofit with over $750,000 of federal awards needs the Single Audit check.

Form 990-EZ

• Gross receipts under $200,000 and total assets under $500,000 at year-end; not for DAF sponsors, hospitals, or controlling organizations with controlled-entity transfers. A 990-N-eligible organization may use it. Four pages: Part I revenue, expenses and net assets (line 6 special events and gaming with the $15,000 Schedule G trigger); Part II balance sheet; Part III program services; Part IV officers, directors, trustees and key employees (all, with compensation); Part V other information (line 46 political activity → Schedule C); Part VI for (c)(3)s only: 47 lobbying and the §501(h) election; 48 school → Schedule E; 49 transactions with non-(c)(3) exempts; 50 five highest-paid employees over $100,000; 51 five highest-paid contractors over $100,000; 52 Schedule A attached.
• Schedules used: A, B, C, E, G, L, N, O. No Schedule D, J, M or R — which is one reason to let an organization near the thresholds stay on the EZ. The e-filing mandate applies.
• Schedule A for an EZ filer is the full Schedule A: the public support test is not simplified by the smaller form. [SQ 11, C]

Form 990-N

• Gross receipts normally $50,000 or less (a three-year average; a first-year organization with receipts up to $75,000 still qualifies, under $60,000 average for the first two years). Eight items: EIN, tax year, legal name and mailing address, other names, principal officer, website, confirmation that receipts are normally $50,000 or less, and whether terminated. Filed only on IRS.gov with a Login.gov or ID.me account; no extension, no penalty, no amendment, but it counts toward the three strikes. A pending applicant calls 877-829-5500 to be set up. [SQ 13, C]

Private reference, not client advice. Notes taken from a continuing-education course, Form 990: A Practical Guide (Thomson Reuters Checkpoint Learning, 12 hours, 2022 edition written on 2021 law and the 2021 forms). Figures and rules brought current to 2026 in October 2026 (P.L. 119-21, Rev. Proc. 2025-32, T.D. 9933, T.D. 9898, the 2025 form instructions). Items tagged check are to be confirmed against primary sources before they are relied on.