Tax Preparation Checklists To Help You Get Your Tax Documentation In Order

Schedule M (Form 990)
Noncash Contributions
Tax Preparation Checklist

Schedule M (Form 990) is used by organizations to report various types of noncash contributions they receive throughout the tax year to report required information for these contributions.

Form 990 coordinates with Schedule M, as a support tool for those organizations that are required to report non-cash contributions.

If you check YES to Question 29 or 30 Part IV of tax Form 990, you will file Schedule M along with Schedule B.

Who Needs To Prepare Schedule M Tax Form?

Additional Reporting for Non-Cash Contributions

Schedule M may create an additional burden for many organizations. However, question 29 determines that if you reported more than $25,000 in non cash contributions, you may be released from this burden.

This is the threshold amount that may release some smaller organizations with lower annual noncash contributions from being required to prepare schedule M. Museums and some other organizations may qualify for reporting relief for these contributions.

Organizations that acquire over $25,000 in non cash contributions and who are not museums or have collections will be subjected to additional record keeping. With that said, Schedule M provides a virtual checklist of twenty-four specific types of non-cash contributions or gifts.

Common complains assert that Schedule M is redundant to Schedule B. However, while Schedule M requires a lot of the same information found on Schedule B, the fact is, Schedule M focuses on different areas of taxation. This included disclosing how these items have been reported, and the method used for valuating these items.

IRS Schedule M ensures that non-cash contributions get reported properly for those organizations who are required to use it.

Schedule M Non-Cash Contributions

Form 990, Schedules A: and B: Reporting In-Kind Contributions of Property

In-kind property contributions (not services) are reported on:

  • Line 1, Parts II and III of Schedule A
  • Form 990, Part VIII line 1g
  • Schedule B, Part II
  • Schedule M, column (c) if applicable

Form 990 filers should use a reasonable method for estimating the value of non-cash contributions. Schedule B requires proper procedures be used for valuing marketable securities. Schedule M requires disclosure of the method used to determine revenue attributable variable categories for non-cash contributions.

Qualified Conservation Contributions

A qualified contribution of real property interest made to a qualified organization, exclusively for conservation purposes. To be eligible for a deduction under this section, the conservation purpose must be protected in perpetuity.

Schedule M Form 990 Reporting Checklist

Schedule M Form 990 Tax Prep Checklist

click to print schedule m form 990 tax preparation checklist

Adequate staffing and recordkeeping systems are imperative for obtaining proper documentation required for financial accounting and Form 990 reporting for property donations and dispositions.

  • Name of Organization
  • Charitable solicitation licenses
  • State solicitation agency disclosure
  • State or local sales taxes collected on:
    • Event admissions
    • Auction sales
    • Special occasion permit for alcoholic beverages
  • Unrelated business income:
    • Intermittent activity
    • Activity conducted with volunteer labor
    • Sale of donated merchandise
    • Sponsor cash or in-kind contributions to unrelated business
    • Written IRS required contribution acknowledgments
  • Donor requested documentation including:
    • Form 8283, Noncash Charitable Contributions
    • Source of good faith value estimate for auction items
    • Auction item values distributed to auction participants
    • Cost of token donor benefits
    • Good faith estimate of donor benefits
    • Purchased admissions that include donor benefits
  • Auction purchases for sale of auction property
  • Form 1098-C, Contributions of Vehicles, Boats, and Airplanes
  • Form 8899, Notice of Income from Donated Intellectual Property
  • Form 990 inclusions:
    • Schedule B, Schedule of Contributors
    • Schedule G, Supplemental Fundraising or Gaming
    • Schedule M, Noncash Contributions
    • Schedule N, Asset Liquidation, Distribution, or Disposition
    • Form 990-T, Exempt Organization Business Tax Return