IRS Instruction 990 (Schedule B)

IRS Instruction 990 (Schedule B) – In the complex world of nonprofit tax reporting, understanding the IRS instructions for Schedule B (Form 990) is essential for ensuring compliance and avoiding penalties. Schedule B, also known as the Schedule of Contributors, is a critical attachment to Form 990, Form 990-EZ, or Form 990-PF. It details significant contributions received by tax-exempt organizations, helping the IRS track funding sources and maintain transparency. Whether you’re a section 501(c)(3) charity, a social club under 501(c)(7), or a political organization under section 527, this guide breaks down the key requirements, rules, and best practices based on the latest IRS guidelines. For the most accurate details, always refer to the official IRS document.

This article is optimized for those searching for “IRS Schedule B instructions,” “Form 990 Schedule B requirements,” or “who must file Schedule B Form 990.” We’ll cover everything from filing thresholds to reporting noncash contributions, drawing from trusted IRS sources to provide up-to-date information as of 2026.

What Is the Purpose of Schedule B (Form 990)?

Schedule B (Form 990) serves as a detailed disclosure tool for contributions reported on your organization’s primary tax return. Specifically, it captures information from:

  • Form 990, Part VIII, line 1
  • Form 990-EZ, Part I, line 1
  • Form 990-PF, Part I, line 1

The schedule includes various types of contributions, such as grants, bequests, devises, and gifts—whether in cash or property. Importantly, it encompasses both charitable and non-charitable contributions, like those to political organizations under section 527. However, it excludes fees received for performing services, focusing instead on true donations.

By requiring this schedule, the IRS aims to promote accountability and prevent misuse of funds in tax-exempt entities. For organizations, it’s a way to demonstrate transparency in funding sources, which can be crucial for maintaining public trust and donor confidence.

Who Must File Schedule B? Thresholds and Exceptions Explained?

Not every organization filing Form 990 needs to complete Schedule B in full, but most must attach it unless they qualify for an exemption. Here’s a breakdown:

  • General Requirement: All organizations filing Form 990, 990-EZ, or 990-PF must include Schedule B unless they certify they don’t meet the filing criteria. This is done by answering “No” on Form 990, Part IV, line 2; checking the box on Form 990-EZ, line H; or on Form 990-PF, Part I, line 2.
  • Voluntary Filers: If your organization isn’t required to file but chooses to, you must submit a complete return, including Schedule B if applicable.
  • Accounting Method: Use the same method (cash or accrual) as on your main form to ensure consistency.

Key Thresholds for Reporting Contributors

  • Report contributors who gave $5,000 or more in money or property during the tax year (under general rules).
  • Aggregate separate gifts: Include independent contributions of $1,000 or more to reach the total; ignore those under $1,000.
  • For accrual-basis filers, include pledged amounts in calculations, even if not yet received.

Exceptions and Special Cases

  • Non-501(c)(3) and Non-527 Organizations: These (including section 4947(a)(1) trusts and private foundations) don’t need to report names and addresses. Enter “N/A” in Part I, column (b), but maintain records for IRS inspection.
  • Section 501(c)(3) Organizations Meeting Support Tests: If you pass the 33 1/3% public support test under sections 509(a)(1) and 170(b)(1)(A)(vi), report only contributors exceeding the greater of $5,000 or 2% of total contributions (Form 990, Part VIII, line 1h, or Form 990-EZ, line 1).
  • Section 501(c)(7), (8), or (10) Organizations: Different rules apply based on the purpose of contributions (e.g., charitable vs. non-charitable).

If you’re unsure about your organization’s status, consult the IRS support test on Schedule A (Form 990) or seek professional tax advice.

General Rules for Completing Schedule B (Form 990)

Filling out Schedule B requires precision to avoid errors. Follow these steps:

  1. Part I: Contributors: List those meeting the $5,000 threshold. Number them consecutively in column (a). Include names/addresses (if required), total amounts in column (c), and check boxes in column (d) for type (e.g., Person, Payroll, Noncash).
  2. Duplication: If needed, copy Parts I, II, and III, numbering pages clearly (e.g., “Page 2 of 5”).
  3. Indirect Contributions: Report payroll deductions as “Payroll” and aggregate employer totals if applicable.
  4. Section 527 Specifics: If contributions aren’t reported on Form 8872 and section 527(j)(1) payments were made, note it accordingly.

Avoid attaching substitutes or extra sheets—stick to the form’s structure. All contributions from Form 990’s revenue section must be accounted for here.

Special Rules for Different Types of Organizations

Tailored rules ensure Schedule B fits various nonprofit structures:

  • Section 501(c)(3) Filers: Use the 2% threshold if qualifying under public support tests. New organizations in their first five years may check specific boxes on Schedule A.
  • Social and Fraternal Organizations (501(c)(7), (8), (10)):
    • For non-exclusive charitable purposes: Report $5,000+ contributors.
    • For exclusive charitable/religious purposes: List those over $1,000; total smaller amounts in Part III. Enter “N/A” for names/addresses in Part I.
  • Other Entities: Default to general rules unless otherwise specified.

These distinctions help organizations like clubs or foundations report accurately without over-disclosing sensitive information.

Key Definitions: Contributors and Contributions

Understanding terms is crucial for compliance:

  • Contributors: Includes individuals, partnerships, corporations, trusts, exempt organizations, and even government units for certain public charities.
  • Contributions: Encompasses direct or indirect gifts of money, securities, or property. Excludes service fees but includes pledges (for accrual filers) and political donations.

Reporting Different Types of Contributions: Cash vs. Noncash

  • Cash Contributions: Mark as “Person” for direct gifts (checks, credit cards) or “Payroll” for employer deductions. Report totals accurately.
  • Noncash Contributions: Check “Noncash” in Part I and detail in Part II:
    • Describe the property in column (b).
    • Use fair market value (FMV) in columns (c)-(d): Average quotes for marketable securities; appraisals for others.
    • Subtract debts; report net proceeds if sold immediately.
    • Align with Schedule M (Form 990) for consistency; complete Form 8283 if needed.

For conservation easements or unique items, ensure valuations match IRS standards.

Privacy, Disclosure, and Penalties

Schedule B balances transparency with privacy:

  • Disclosure Rules: Names/addresses are public for 990-PF and section 527 filers. For others, they’re redacted in public inspections, but amounts and descriptions may be viewable.
  • State Filings: Avoid including Schedule B unless required by the state, as it could become public.
  • Penalties: Failure to maintain records or provide info upon IRS request can lead to fines. Always keep contributor details on file.

Omit Social Security numbers to protect privacy.

Recent Updates and Changes to Schedule B Instructions

As of the 2024 tax year (relevant through 2026 unless superseded), Schedule B is a “continuous-use” form, no longer revised annually. Key change: Many tax-exempt organizations aren’t required to report contributor names/addresses on the form itself (per T.D. 9898), but must retain them in records. Check IRS.gov/Form990SchB for the latest developments.

Final Tips for Filing Schedule B (Form 990)

To optimize your filing process:

  • Double-check thresholds and support tests.
  • Use software or consult a tax professional for complex contributions.
  • Download the official instructions from the IRS website for forms and examples.

By following these IRS Schedule B instructions, your organization can stay compliant and focus on its mission. If you have specific questions about Form 990 Schedule B requirements, reach out to the IRS or a qualified advisor.