Part I summarizes your organization’s revenue, expenses, and changes in net assets for the year. Below is a simplified explanation of each line. While this is a general overview, more detailed instructions can be found by visiting https://www.irs.gov/forms-pubs/about-form-990-ez and selecting the 990EZ instructions link.
Revenue
This is where you will enter the amount of revenue generated as contributions, gifts, program service revenue, membership dues and assessments, net income, or loss from gaming and fundraising events and from other sources (described in Schedule O).
Line 1 — Contributions and Grants
Enter the gross amounts of contributions, gifts, grants, and bequests that the organization received from individuals, trusts, corporations, estates, affiliates, foundations, public charities, and other exempt organizations, or raised by an outside professional fundraiser. Report the value of noncash contributions at the time of the donation.
Line 2 — Program Service Revenue including government fees and contracts.
Enter fees or payments received for activities that directly support your mission (e.g., class fees, program admissions, government contracts)
Line 3 — Membership Dues
Enter members' and affiliates' dues and assessments that aren’t contributions on line 1.
Line 4 — Investment Income
Interest, dividends, and other investment earnings.
Line 5 — Gain or Loss from Asset Sales Other Than Inventory
Net gains or losses from selling investments or other property.
Line 6a — Gross income from Gaming
Includes but not limited to: Coin-operated gambling devices include slot machines, electronic video slot or line games, video poker, video blackjack, video keno, video bingo, video pull tab games, bingo, pull tabs, instant bingo (including satellite and progressive bingo), Texas Hold-Em Poker and other card games, raffles, scratch-offs, charitable gaming tickets, break-opens, hard cards, banded tickets, jar tickets, pickle cards, Lucky Seven cards
Line 6b — Gross income from fundraising events not including contributions on Line 1
When an organization receives payments for goods or services offered through a fundraising event, enter the following.
Line 6c — Less: direct expenses from gaming and fundraising events.
Report on line 6c direct expenses related to gaming activities and direct expenses attributable to the organization's provision of goods or services from which it derived gross income at a fundraising event
Line 7a — Gross sales of inventory, less returns and allowances.
Include on line 7a the gross sales (less returns and allowances) of inventory items, whether the sales activity is an exempt function or an unrelated trade or business
Line 7b — Less: cost of goods sold
On line 7b, report the cost of goods sold related to sales of such inventory.
Line 7c — Gross profit (or loss) from sales of inventory. (Subtract line 7b from line 7a)
(Auto-totaled field on File990)
Line 8 — Other Revenue (Describe in Schedule O)
Examples of line 8 income are interest on notes receivable not held as investments or as program-related investments (defined in the line 2 instructions); interest on loans to officers, directors, trustees, key employees, and other employees; and royalties that aren’t investment income or program service revenue.
Line 9 — Total Revenue
Add Lines 1–8 (Auto-totaled field on File990)
Expenses
This is where you will enter expenses incurred as grants and similar amounts paid, as well as members’ benefits, salaries, other compensation, employee benefits, printing, publications, postage, shipping, and other expenses (Must be described in Schedule O)
Line 10 — Grants Paid
Amounts given to individuals or organizations as assistance or support.
Line 11 — Benefits for Members
Payments made specifically because an individual is a member. For an organization that gives benefits to members or dependents (such as organizations exempt under section 501(c) (8), (9), or (17)), enter the amounts paid for or paid to obtain insurance that provides:
• Death, sickness, hospitalization, or disability benefits; Unemployment compensation benefits; Other benefits, including patronage dividends paid by 501(c) (12) organizations to their members.
Line 12 — Salaries, other compensation, and employee benefits.
Compensation paid to employees and officers.
Line 13 — Professional fees and other payments to independent contractors.
Enter the total amount of legal, accounting, auditing, other professional fees (such as fees for fundraising or investment services), and related expenses charged by outside firms and individuals who aren’t employees of the organization.
Line 14 — Occupancy, rent, utilities, and maintenance.
Enter the total amount paid or incurred for the use of office space or other facilities, including rent; mortgage interest; heat, light, power, and other utilities; outside janitorial services; real estate taxes and property insurance attributable to rental property; and similar expenses
Line 15 — Printing, publications, postage, and shipping.
Enter the printing and related costs of producing the filing organization's own newsletters, leaflets, films, and other informational materials, as well as the cost of outside mailing services on line 15
Line 16 — Other Expenses
All remaining allowable expenses not listed above (attach details if over $4,000).
Line 17 — Total Expenses
Combine lines 10 through 16. (Auto-summed field on File990)
Net Assets
Line 18 — Excess (or deficit) for the year.
Subtract line 17 from line 9 (Auto-totaled field on File990)
Line 19 — Net assets or fund balances at beginning of year. (from line 27, (A)) (Must agree with end-of-year figure reported on prior year's return)
IMPORTANT NOTE: FOR PART II TO BALANCE, THE BEGINNING OF YEAR BALANCE MUST BE ENTERED ON LINE 19
Line 20 — Other changes in net assets or fund balances. (Describe in Schedule O)
Explain in Schedule O (Form 990) any changes in net assets or fund balances between the beginning and end of the organization's tax year that aren’t accounted for by the amount on line 18
Line 21 — Net assets or fund balances at end of year. (Combine lines 18 through 20)
Combine lines 18 through 20 (Auto-totaled field on File990)
Summary:
Part I summarizes your Total Revenue (Line 9) minus Total Expenses (Line 17) = Excess or deficit (Line 18); This is then added to Lines 19 and 20 to determine Net assets or fund balances at end of year (Line 21).