Is revenue from program advertising for a performing arts group considered to be donations or misc income or other income? The income is not a material part of its revenues and isn't UBTI. This is the first year the group had had programs!
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990 Question
I would definitely pick it up as Fundraising Income.
It's not donations because the contributors are receiving SOMETHING in exchange for their money.
It's not Miscellaneous because the revenue generated from the advertising does or should promote the organization's exempt purposes.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
Where would you put that? I don't see a line in Part VII, or on page 1.Comment
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990 Question
Line 11 P. 1, refers you to Part VII line 103.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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So it is just a part of 'other income'. OK.Comment
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If I understand the original post correctly, I believe you should treat the income as a contribution.
The way I read the post is that an individual gives $x to the organization and their name goes into the program. Thus, the individual receives nothing of value (other than a recognition factor - I see no quid pro quo factor here) in return for their money. That is a contribution and it is important to put it on line 1of the 990 to demonstrate the amount of public support for the organization.
In the instructions for Form 990 it says fundraising activities relate to the solicitation and receiving of contributions. Sounds to me that "putting your name" in the program results in a contribution.Comment
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