Hi, I'm wondering whether government grants are considered part of "Contributions, gifts, and grants," or "Program service fees including government fees and contracts"?
Good Morning Leslie,
After talking to our Data Ops Department, you are reading the information correctly, if the support you receive is as stated above, it should be included under Contributions, Gifts, and Grants.
GuideStar is unable to give 990 filing advice, however, it you need further assistance or have further questions about government grants, we recommend you contact an accountant who specializes in nonprofit organizations or the IRS.
You may contact the Nonprofit Division of the IRS for more information at: (877) 829-5500 (toll-free number). The IRS call center is open 8:00 am to 5:00 pm Eastern Time.
Please let us know if you need any further assistance.
Welcome to the GuideStar Community.
When organization's update their GuideStar profile, there is a Financial section under Revenue for organization's to include "Contributions, gifts and grants". However, it is quite possible that whatever money they get from the government is incorrectly being lumped in with other contributions. Government grants would include state, local, and federals grants.
The below link is to the instructions for filing and reporting of Governmental contributions on the 990. On page 37 there is IRS instruction on how that field should be used: https://www.irs.gov/pub/irs-pdf/i990.pdf.
Hope this helps. Please let me know if you need any other assistance.
Community Support Specialist
Hi Robin, Thank very much. I've seen that part in the 990 instructions. However those instructions about what is NOT considered a contribution seem to refer only to grants and support from governmental units "that represent a payment for a service, facility, or product that primarily gives some economic or physical benefit to the payer." In that case, you are correct that the support should be included with Program Service Revenue. However the support I receive from governmental units is to enable my organization "to provide a service to, or maintain a facility for, the direct benefit of the public rather than to serve the direct and immediate needs of the governmental unit", which the instructions state should be included as part of "Contributions, Gifts, and Grants." (See also on page 37, in reference to Line 1e, which is part of total in Part VIII, Statement of Revenue). As the instructions state, "In other words, the payment is recorded on line 1e if the general public receives the primary and direct benefit from the payment and any benefit to the governmental unit is indirect and insubstantial as compared to the public benefit." Am I reading this correctly?
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