Nonprofit Tax Tidbits: Form 990 Schedule M

Form 990

Written by Sandy Jensen

February 13, 2020

In continuing with our series on the schedules of the IRS Form 990, this quarter we will focus on Schedule M: Noncash Contributions.

The purpose of this schedule is to provide information about the contributions the Organization has received during the year that consist of property other than money. This includes stocks, bonds, works of art, vehicles, real estate, etc. Noncash contributions not included are donated services or donated use of property.

Schedule M is required to be completed if the Organization has received noncash contributions, in the aggregate, greater than $25,000. Noncash items are reported on Schedule M even if they are received and sold immediately.

The schedule lists different types of categories to describe the donated property. Information as to the number of contributions of that type of property, the value of the contribution, as well as the method used to determine the property’s value, is detailed.

The bottom section of the form has a series of yes and no questions that give the reader further information about the contributions, such as:

  • If the contributions are required to be held by the Organization for at least three years.
  • Whether the Organization has a gift acceptance policy that requires a review of nonstandard contributions.
  • If the Organization hires or uses a third party to solicit or process the sale of noncash contributions.
  • If the Organization did not report a value for one of the donated items listed on the schedule.

As with most schedules that support IRS Form 990, there is a section that allows the preparer to explain any portion of the form that requires further explanation or detail.

A question on Form 990 Part IV Checklist of Required Schedules asks the preparer if they have received noncash property greater than $25,000. If the answer is yes, Schedule M is required to be completed and attached and submitted as a supporting schedule of the 990. The sum of all the property reported on Schedule M should correspond to the amount recorded on Federal Form 990 Part VIII Statement of Revenue line 1f.

If you receive noncash property during the year, take the time to keep a list of the type of property received, the date and value of the property. So you have one less thing to gather at year-end, keep a folder to hold all supporting documentation regarding the noncash contribution.

If you have any questions regarding Schedule M or any of the other schedules, please contact your Hawkins Ash CPAs representative.

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Sandy Jensen
I joined Hawkins Ash CPAs in 2001 and am a partner in the firm's La Crosse office. I have extensive experience providing audit services to nonprofits and educational agencies. I am chair of the firm’s nonprofit service group and a member of the firm’s Audit and Accounting Committee.

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