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Funds paid for member's funeral

gfpstaxes
Level 3

 A non-profit Little League association paid $5,124 for the funeral of one of their members. Can this be entered on line 10 of the 990-EZ, "Grants and similar amounts paid", even though technically it was not a grant, but simply benevolence?

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qbteachmt
Level 15

Benevolence is not a tax term nor a not-for-profit program for a Little League operation. If they are 501(c)(3), nothing is supposed to benefit a single member directly. If they are covered under group exemption, I would contact their parent organization and ask for guidance.

It would be helpful if they had raised and used funds earmarked for this event.

This one can get messy.

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gfpstaxes
Level 3

By Parent Organization, you mean like "Little League International" ?

 

qbteachmt
Level 15

Yep.

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sjrcpa
Level 15

What does "one of their members" mean? A player, a coach, umpire, director?


ex-AllStar
gfpstaxes
Level 3

I was mistaken about the details, but now I've got the story. The death was of a 3 or 4 year old girl who came to a game. A bottle rolled under a car and the girl went to retrieve it and the car moved and killed her.  Does that give some clarity as to where the expense goes. I don't believe it was anything formal like a lawsuit, the League just paid for part of the funeral expense.

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qbteachmt
Level 15

That's good, then, to clarify it's not a member. Also, it's over $5k, so you are going to need Schedule O. This assumes they paid the family; or, they paid the Funeral Director operation? Or? And paid for Funeral, not Burial costs?

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gfpstaxes
Level 3

$5,000 was paid to the funeral home and there was also a flower arrangement purchased for $124.

So you're saying I can put this on line 10 even though it's not technically a grant? How would I describe it on Schedule O?

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qbteachmt
Level 15

"$5,000 was paid to the funeral home and there was also a flower arrangement purchased for $124."

Then you don't need Sched O for this, for Feds. From Form 990-EZ instructions:

"List on Schedule O (Form 990 or 990-EZ) each grantee organization or individual to whom the organization made grants (or paid similar amounts) in excess of $5,000 during the organization's tax year."

"I can put this on line 10 even though it's not technically a grant?

It is not programmatic, so I think I would use line 16. Somewhere I have a Form = Line = Chart of Accounts reference, but cannot find it right now. I would control this with UCOA 7050, if that helps.

The flowers would be non-program supplies. And your State might have different financial reporting limits for needing to provide details.

 

 

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qbteachmt
Level 15

Ha! I found it. It was provided to me by United Way; they have Form 990, 990EZ, OMB A-122, and United Way of America Accounting Guide, all columns as cross-referenced. I see the 7XXX expenses are still identified as personnel related direct assistance (that's grants, scholarships and specific assistance to/for/on behalf of members) and that's Line 10. Line 16 is Other, and includes "business" expenses (not management and admin, and not programmatic).

Here's a similar reference table:

http://help.sage50.na.sage.com/en-us/2017/sage50us/Content/GL01/the_unified_chart_of_accounts_and_fo...

 

 

 

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gfpstaxes
Level 3

Thanks, that makes sense. Although I'm still concerned because that's not part of their "mission statement," so to speak. It's certainly a defensible position though.

 

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