Form 990 Part IV line 2 asks, "Is the organization required to complete Schedule B, Schedule of Contributors?". Determining the answer to this question depends on several factors, including the paragraph under section 501(c) that exempts the organization from tax, the public support test on Schedule A, and a test of the largest contributor.
Public Support Test (33-1/3%)
Before you can determine whether or not Schedule B is needed you first need to complete Schedule A to determine whether or not the organization qualifies as a public charity. (If the organization isn't a public charity, it probably needs to file Form 990-PF rather than Form 990.)
An important aspect of being considered a public charity is the 33-1/3% support test. An organization meets this test if at least one-third of its total support comes from governmental agencies, contributions from the general public, and contributions or grants from other public charities. An organization in its first through fifth years is exempt from meeting this test, and an organization that met the test in its previous year, irrespective of whether or not it meets the test in the current year, is considered to have met the test of being a public charity.
When is Schedule B required?
Schedule B must be prepared if the organization meets any of the following:
- It is a section 501(c)(3) organization that met the 33-1/3% support test or was exempt from the test (as determined on Schedule A) and also received from any one contributor contributions of greater than (a) $5,000 (cash or property) or (b) 2% or more of the organization's total contributions, gifts, and grants (as reported in Part VIII line 1h).
- It is a section 501(c)(3) organization that didn't meet the 33-1/3% support test, and it also received from any one contributor contributions of greater than $5,000 (cash or property).
- It is a section 501(c)(7), 501(c)(8), or 501(c)(10) organization and during the year it received either (a) contributions of any amount for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals; or (b) contributions of $5,000 or more not exclusively for such purposes from any one contributor.
- Any other organization that received contributions during the year of $5,000 or more from any one contributor.
If the organization doesn't meet any of the above tests then the return doesn't need to include Schedule B.
Additional Information: