990 and 990-T Gross Sales of Inventory

[sward]

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?

[qbteachmt]

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

[sjrcpa]

For a social club it does.

Not for a 501(c)(3).

[sward]

https://www.irs.gov/charities-non-profits/other-non-profits/examples-of-unrelated-business-income-ta...

My understanding is who you sell "to" does matter for a 501(c)(7).

[qbteachmt]

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.

[sward]

Merely using the terms on the form. If you have any helpful information that might address my original question rather than nit-picking your preference of terms that I use, I really would appreciate it.

[sjrcpa]

I end up dividing it between exempt function and UBIT and entering as two different items to get them to the correct places on 990 and 990-T.

[qbteachmt]

"rather than nit-picking your preference of terms"

It isn't nitpicking; it's trying to get more context from you. Only you know, for instance, if this is Club products that would not be sold to the general public vs meals and beverage served via a public space vs private functions and events. We cannot help you come up with an allocation method, since we are not getting any input here.