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?”
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.
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.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Form 990EZ :: For exempt organizations with gross receipts under $1 million