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Property rental
How do you report in 990 property user fee from a property owned by a nonprofit? Can it be classified under the broader line item “Donations”?
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4 Replies
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Hi Jerry — When you say “property user fee” do you mean rental fees of some kind? If the property the nonprofit owns is integral to its mission, I would say that’s program income (if, for example, a part of their mission is to provide space for xyz), but if they just happen to own a piece of property that they are maintaining and getting income from, that’s likely “other income” that needs to be itemized in Part VIII, Lines 6a-d. If you’re using the 990-EZ, then Other Revenue that you need to describe in Schedule O. Note that owning a building usually, but not always, pushes your total assets into the full 990, even if your revenue is in the $50,001-$199,999 range for the EZ.
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Thanks Jerry, for your question, and Cheryl, for participating in the forum! We just want to be sure that you mean rental as an income or an expense?
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@Jerry Just tagging Jerry as I’m curious about this question (and responses) as well.
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Property use fees would not normally be treated as donations simply because the property is nonprofit-owned. I’d look at whether the payment is actually rental income, program service revenue, or something else. The Form 990 instructions are worth checking carefully here, as the classification can affect reporting.