Why the return needs more than a bank statement
The 990-EZ and 990 ask for gross income and expenses separately, by category. The 2025 Instructions for Form 990-EZ warn that reporting contributions net of fundraising expenses can itself lead to a penalty for incorrect information. A bank balance that went up by $4,000 does not tell a preparer how much came in and went out.
The same instructions treat an incomplete return as a failure to file. The records below are what a preparer needs to complete every applicable line.
The core record set
- Bank statements for every account for the full year, with reconciliations
- The general ledger or transaction list, categorized
- Income by source: dues, contributions, sponsorships, program fees, sales, events, gaming, grants, interest
- Expenses by type and by program, fundraising and administration
- Year-end balances: cash, money owed to and by the club, equipment, and restricted funds
- Names, titles and addresses of officers and directors, and any compensation (usually none)
- Governing documents and any changes during the year
- Last year's return, for comparison and carryovers
Booster-specific records preparers ask for
These are the items that most often send a return back for more work.
| Record | Why the return needs it |
|---|---|
| Each fundraising event: gross receipts, contributions above value, direct costs | 990-EZ line 6b to 6d; Schedule G, Part II if event income plus contributions is over $15,000 |
| Each raffle: ticket sales, prize costs, lottery tax paid | 990-EZ line 6a (raffles are gaming); Schedule G, Part III if over $15,000 |
| Concession and product sales: gross sales and cost of goods | Sales of inventory are reported gross with cost shown separately |
| Sponsor and donor list with amounts | Contribution totals and any schedule of contributors |
| Written acknowledgments for gifts of $250 or more | Supports the donor's deduction; shows the club followed IRS rules |
| Quid pro quo disclosures for payments over $75 | Dinners, golf outings and ad packages where the payer received something back |
| Contractor payments and 1099 copies | Expense detail and information-return questions |
| Prize winners and any W-2G copies | Gaming questions and information-return questions |
Acknowledgments and quid pro quo receipts
Two IRS rules generate the paperwork preparers look for. First, a donor needs a written acknowledgment from the club to deduct any single contribution of $250 or more. Second, when a payment of more than $75 is partly a gift and partly for something the donor receives, such as a banquet ticket, the club must give a written disclosure with a good-faith estimate of the value received. The penalty for missing a required disclosure is $10 per contribution, capped at $5,000 per fundraising event or mailing.
Keep copies of the letters or receipts you sent. They are part of the club's records even though they go to donors.
Illustrative: a family pays $150 for two golf outing tickets that include a dinner the club estimates at $60 in value. The payment is more than $75 and partly a gift, so the receipt should say that $90 is the deductible portion and $60 was the value of goods and services received.
When to start gathering
For a club with a June 30 year-end and a November 15 due date, the records work belongs in July and August. That leaves September and October for questions, preparation and an officer's review, and it avoids filing an extension only because a spreadsheet was missing.
The best time of all is during the year. Summarize each event within a week of holding it, while the volunteers still remember what the receipts were for, and file acknowledgment copies as you send them.
How to hand records to a preparer
- 1.Close the year and reconcile every account first.
- 2.Export the transaction list and the year-end reports from your bookkeeping software, or organize the spreadsheet by month.
- 3.Put event and raffle summaries in one folder, one file per event.
- 4.Add donor acknowledgment copies and quid pro quo receipts.
- 5.Include the officer list, governing documents and last year's return.
- 6.Write a short note of anything unusual: new programs, a big one-time gift, money held for next year's trip.
Where we come in
Murphy prepares Form 990-EZ and Form 990 for small nonprofits and booster clubs, and can do the bookkeeping or catch-up work that gets the records to this point. We give you a scope and a price in writing before anything starts.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
