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990 and 990-T Gross Sales of Inventory

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Level 1

I have an Exempt Org. functioning as a social club with sales of inventory to both members and non-members. I need to report member inventory sales and COGS as exempt function revenue to be reported on Part VIII, Row a, Line 10 a & b of the 990 and the non-member inventory sales and COGS on Part VIII, Row b, Line 10 a & b of the 990 as well as the 990-T. How do I separate these amounts? When I enter the sales on screen 26 Inventory Sales, all revenue and COGS is included in unrelated business income. Where is the input for exempt function inventory sales?

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4 Replies 4
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Level 12

Are these the same products? Who you are selling "to" isn't how you determine if it meets the exempt purposes or not.

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Level 15

For a social club it does.

Not for a 501(c)(3).


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Level 1
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Level 12

You stated "inventory." Not food and beverages at a Clubhouse vs running a bar/restaurant open to the public. Or, for instance, advertising in a magazine/newsletter is how the BMW MOA lost their NFP status entirely.

As usual, facts and circumstances matter.

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