Purpose of Schedule B
Form 990 Schedule B is used by nonprofit organizations to report their significant contributors and certain information about donations received. The primary purposes of Schedule B are to enhance transparency and accountability by providing the IRS and the public with details about large donations that help support the organization's activities.
Key aspects of Schedule B include:
1. Identifying Major Donors: It lists individuals, foundations, or corporations that contributed above a specified threshold during the year.
2. Ensuring Transparency: By disclosing these contributions, nonprofits help ensure that their funding sources are transparent, which can build trust with the public and stakeholders.
3. Compliance: Nonprofits must comply with IRS regulations regarding reporting substantial donations, and Schedule B helps fulfill that requirement.
Overall, Schedule B is crucial for maintaining the integrity of the nonprofit sector and providing insights into the funding landscape of an organization.
How to open Schedule B
Form 990, Part IV, Line 2, must be set to 'Yes'
IRS Schedule B Form - https://www.irs.gov/pub/irs-pdf/f990ezb.pdf
IRS Schedule B Instructions - https://www.irs.gov/charities-non-profits/form-990-schedules-with-instructions