Today TaxMama hears from Guy in Connecticut, with this question. “Our local PTA, a 501c3, runs book fairs with a book company. We collect the receipts in full, then pay the invoice from the book company. Is the income from these activities the gross or net?”
Dear Guy,
The answer is yes, absolutely.
You pick up the gross income on the PTA’s Form 990EZ, as revenues.
Then, you deduct the costs on line 16 of the Form 990EZ other expenses.
https://www.irs.gov/pub/irs-pdf/f990ez.pdf
So, while you report the gross revenues, your “Excess or (deficit) for the year” will take into account the costs of the fundraising events.
And remember, you can find answers to all kinds of questions about non profit organizations and other tax issues, free. Where? Where else? At TaxMama.com.
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- IRS Form 990EZ :: For exempt organizations with gross receipts under $1 million
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