I'm preparing a Form 990 for a 501(c)(7) social organization. In addition to regular program revenues, the also received 63,566 of Deferred Revenue representing fees received in advance for programs to be offered in 2006. I assume these fees should not be included in Part I, but shown on the balance sheet as Deferred Revenue (Income). I'm just not sure how to reflect this amount in Part I, Net Assets, in Part IV, line 73. Any suggestions would be appreciated.
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Zee.........
.. I don't know any official answer to your question, but Exempts are basically a source and application of funds. I don't think the 990 needs to match allocated contributions to allocated function. There is a spot on the 990 where you report your programs and the benefit of the programs to your charter.
If I was doing the 990 I would report all funds on page 1 and report on page (?) where you can specify each source, you know the page where interest income is also reported.
Sorry to be so vague, but I think you get my drift.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Bob-
Thanks for trying to help. Since the client uses the cash-basis for tax reporting, I included the Revenues received in Advance as Program Revenues and Prepaids as Program expenditures. Accrual-basis accounting would provide a better matching of the revenue & expenses, but I don't think the client would be interested in electing to change to an accrual basis.Comment
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Deferred Revenue
Deferred revenue is a liability account. So it is indirectly reported on Part I in Net Assets, which is Assets minus liabilities. When you fill out Part IV, you can add the detail under liabilities. On the 990-EZ, it is directly reported in Part II, where you list assets, liabilitities, and then Net Assets.Comment
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