Schedule G 2020-2025 Form

Understanding Schedule G for Form 990

Schedule G is a supplemental form required by the IRS for organizations that file Form 990. This form provides detailed information about professional fundraising services and the organization’s fundraising activities. It is essential for transparency and accountability, ensuring that the IRS and the public can assess how organizations raise and spend funds. Organizations must accurately report their fundraising expenses and revenue sources to comply with federal regulations.

Steps to Complete Schedule G

Completing Schedule G involves several key steps:

1. Gather all relevant financial documents, including fundraising contracts and expense records.
2. Fill out Part I, which requires information about the organization’s fundraising activities, including the types of fundraising methods used.
3. Complete Part II, detailing any professional fundraising services used, including their names and the fees paid.
4. Review the information for accuracy, ensuring all figures match your financial statements.
5. Submit Schedule G along with Form 990 by the filing deadline to avoid penalties.

Filing Deadlines for Schedule G

The filing deadline for Schedule G coincides with the due date for Form 990, which is typically the 15th day of the fifth month after the end of the organization’s fiscal year. For organizations with a fiscal year ending December 31, the deadline would be May 15 of the following year. If additional time is needed, organizations can file for an extension, but they must ensure that Schedule G is included with the extended Form 990 submission.

IRS Guidelines for Schedule G

The IRS provides specific guidelines for completing Schedule G, emphasizing the importance of accuracy and transparency. Organizations must adhere to the instructions provided in the IRS Form 990 instructions, which outline how to report fundraising activities and professional services. It is crucial to ensure that all reported figures are consistent with the organization’s financial records to avoid discrepancies that could lead to audits or penalties.

Penalties for Non-Compliance

Failure to file Schedule G or inaccuracies in the information provided can lead to significant penalties. The IRS may impose fines on organizations that do not comply with the filing requirements, which can range from $20 per day for each day the form is late, up to a maximum of $10,000. Additionally, non-compliance may result in increased scrutiny from the IRS and potential audits, which can further complicate an organization’s financial standing.

Digital vs. Paper Version of Schedule G

Organizations have the option to submit Schedule G electronically or via paper forms. Filing electronically is often more efficient and reduces the risk of errors, as e-filing systems typically include built-in checks for common mistakes. However, some organizations may prefer paper submissions for various reasons, including familiarity with physical forms. Regardless of the method chosen, it is essential to ensure that all information is complete and accurate to comply with IRS regulations.