Form 990 Schedules A and B: what they ask and what to keep

This guide is for the treasurer or bookkeeper who has moved past the 990-N and now faces two schedules that come with the 990-EZ or 990: Schedule A, about why you're a public charity, and Schedule B, about your larger donors. Both trip up first-time filers. After reading, you'll know what each schedule asks, who has to file it, which records to keep through the year, and which parts the public can and can't see.

The math behind Schedule A's support tests is in our guide to the public support test. This page is about the forms themselves.

Schedule A: why you're a public charity

Who files it

The Schedule A instructions say any section 501(c)(3) organization "(or organization treated as such) that files a Form 990-EZ must complete and attach this schedule." Form 990 filers attach it when they answer "Yes" on Part IV, line 1, which 501(c)(3) organizations do. Certain nonexempt charitable trusts file it too.

What's in it

Most small community charities check line 7 (170(b)(1)(A)(vi)) or line 10 (509(a)(2)) in Part I and complete Part II or Part III. Your IRS determination letter is a good starting point, but the instructions say the box shows your reason for the tax year, which "can be the same as" the letter "or it can be different." If you qualify for more than one reason, check one box and explain the others in Part VI.

The five-year window

The support schedules use "a 5-year computation period that includes the current and 4 prior tax years." So you need five years of support figures, by year and by type, every time you file. Keep a running spreadsheet rather than rebuilding it each spring.

The instructions also say Schedule A must use the same accounting method (cash or accrual) that you checked on Form 990, Part XII, line 1. If you change methods, ask your accountant how to handle the earlier years.

Your first five years

A new 501(c)(3) in its first five years checks a box (Part II, line 13, or Part III, line 14). The instructions say an organization that checks it "should stop here and shouldn't complete the rest of Part II." Do the calculation anyway, on a copy you keep, so year six holds no surprises. Our public support test guide explains why.

Schedule B: your larger donors

Who files it

The Schedule B instructions say "every organization must complete and attach Schedule B to its Form 990, 990-EZ, or 990-PF" unless it certifies that it doesn't meet the filing requirements. You certify that by answering "No" on Form 990, Part IV, line 2, or by checking the box on Form 990-EZ, line H. Doing neither makes your return incomplete.

Who you list

• The general rule: list every contributor who gave $5,000 or more during the tax year, in money or other property.
• Adding up gifts: total each contributor's separate gifts of $1,000 or more. The instructions say smaller gifts can be left out of the total.
• The special rule for many 501(c)(3)s: a 501(c)(3) that meets the 33 1/3% support test lists only contributors whose gifts were $5,000 or more and more than 2% of its total contributions (Form 990, Part VIII, line 1h, or Form 990-EZ, line 1). In effect, the threshold is the greater of $5,000 or 2%. The IRS's example: with $700,000 in total contributions, the threshold is $14,000.
• Who counts as a contributor: individuals, fiduciaries, partnerships, corporations, associations, trusts and exempt organizations. Organizations described in sections 170(b)(1)(A)(iv), 170(b)(1)(A)(vi) or 509(a)(2) also report governmental units.
• Noncash gifts go in Part II, described "regardless of the value."

What stays private

Your Form 990 is public, but donor identities on Schedule B generally aren't. The IRS says exempt organizations other than private foundations and political organizations are "generally not required to disclose publicly the names or addresses of its contributors set forth on its annual return." So when someone asks for your return, black out names and addresses on Schedule B before you share it. The Schedule B instructions add that everything else, including the amounts and descriptions of noncash gifts, must be made available unless it "clearly identifies the contributor." Our guide to public disclosure covers the rest of what you must share.

Your state may differ

The Schedule B instructions say that if you file a copy of your Form 990 or 990-EZ with a state, you shouldn't include Schedule B "unless a schedule of contributors is specifically required by the state," because states that don't need it might make it public with the rest of the return. Check what your state's charity office requires, and keep both a full and a public copy.

A year-round routine

• Each month: record every gift with the donor's name, address, date, amount and type (cash, stock, goods), and flag gifts of $1,000 or more.
• Each year end: add up each donor's flagged gifts and check them against the $5,000 or 2% line.
• For Schedule A: add this year's support, by type, to your five-year spreadsheet.
• Before filing: confirm your Part I box reflects your status for this year, and explain any difference from your determination letter in Part VI.
• After filing: keep a full copy, and a public copy with Schedule B names and addresses removed.

Schedules A and B checklist

• We know which Part I box reflects our public charity status this year
• We keep five years of support figures, by year and type
• Schedule A uses the same accounting method as our Form 990
• Our donor records flag gifts of $1,000 or more with full names and addresses
• We've worked out whether the $5,000 general rule or the 2% special rule applies to us
• We attach Schedule B, or answer Part IV line 2 (Form 990) or check line H (Form 990-EZ)
• Our public copy has donor names and addresses blacked out
• We send Schedule B to our state only if the state specifically requires it