Reporting Fundraising and Gaming Event Income on Form 990

Estimated reading time: 16 minute(s)

Every year, thousands of nonprofits host galas, auctions, walkathons, and dinners that generate significant revenue for their missions. But when it comes time to fill out Form 990, many organizations stumble over how to properly classify and report that income. Misreporting fundraising events can trigger IRS scrutiny, jeopardize tax-exempt status, and mislead donors about an organization’s financial health.

What is a Fundraising/Gaming Event for Form 990 Purposes?

The IRS defines a fundraising event as any activity in which the organization provides goods or services to participants in exchange for contributions. The key element is the exchange transaction. Attendees receive something of value (a meal, entertainment, an auction item), while also making a contribution that exceeds the fair market value of what they receive.

Common examples include: 

• Gala dinners and charity balls
• Silent and live auctions 
• Golf tournaments with entry fees above fair market value
• Charity walks, runs, or bike-a-thons with pledged donations 
• Casino nights and bingo events
• Annual banquets with ticket sales 

A donation solicitation, such as a direct mail campaign or online crowdfunding drive where donors receive nothing in return, are also classified as a fundraising event.

Where on Form 990 Does This Get Reported?

Part VIII – Statement of Revenue 

Fundraising event income is reported on Part VIII, Lines 8a through  8c of Form 990. This section is specifically labeled “Fundraising events” and requires you to report three components:

Schedule G – Supplemental Information Regarding Fundraising 

If your organization received more than $15,000 in gross receipts from any combination of fundraising events during the year, you must complete Schedule G, Part II. This is where the IRS gets the detailed breakdown of each event.

Here are the details you’ll need for each event:

• Fundraiser names/addresses
• Gross receipts 
• Contributions
• Cash/non-cash prizes
• Rent
• Food/beverage expenses
• Entertainment costs

Schedule G requires individual line-by-line detail for the two largest events by gross receipts, plus a combined “Other events” column for all remaining events. Organizations that host events annually should build internal systems to capture this data as they are happening, rather than reconstructing it at year-end.

The Distinction Between Contributions vs Revenue

One of the most consequential concepts in fundraising event reporting is correctly separating the contribution element from the exchange element of each transaction. Consider a gala dinner where tickets cost $300 per person. If a comparable dinner at a hotel would cost $80 per person, then: 

• $80 per ticket = fair market value of goods/services received (exchange element)
• $220 per ticket = charitable contribution (deductible by the donor)
• The organization must provide a written disclosure to donors of this split.

On Schedule G, the entire $300 is included in gross receipts on line 1. The $220 is removed on line 2 as a contribution. Line 3 is what is leftover as gross income. This division matters both for the organization’s reporting and for donors claiming deductions on their personal tax returns.

Learn more about the distinction between contributions versus program revenue in our recent blog.

What Counts as a Direct Expense?

Direct expenses on Line 8b and Schedule G Part II are costs that are directly attributable to the fundraising event itself. The IRS is specific about what may be deducted here: 

Part IX and the Financial Statements

The net income from fundraising events flows into the organization’s total revenue, which must reconcile with audited financial statements (if applicable) and the organization’s books. A common reconciliation issue arises when:

• Sponsorships are received for fundraising events. These are often contributions, not event revenue.
• Multi-year events span fiscal years, creating timing differences.

A note on event sponsorships: Corporate sponsorships where the sponsor receives only an acknowledgment (logo on materials, mentioned in program) are generally treated as contributions, not advertising revenue. But if the sponsor receives a substantial return benefit — a booth, speaking time, a featured ad — a portion may be classified as unrelated business income, and a Form 990-T may be required. Find more information about this here.

The Bottom Line

Reporting fundraising event income correctly on Form 990 requires more than just adding up receipts. It requires a clear understanding of the contribution/exchange distinction, tracking of direct expenses, proper treatment of donated and auctioned items, and timely disclosure to donors. The IRS scrutinizes nonprofit financial reporting closely, and Schedule G is one of the most detail-intensive portions of the return.

In recognition of National Volunteer Week, we have put together a dedicated set of guides and resources to help nonprofits accurately report event and volunteer-related income and activity on their Form 990. Discover our National Volunteer Week Checklist!