Fundraising entries on Schedule G are generating a note that I cannot resolve.
In your return, a total on Schedule G Part II, Fundraising Events (screen G2) has produced note 036:
The note tells you that the direct expense summary, line 10 of Schedule G Part II, Fundraising Events, may need to appear on Form 990 Part VIII as direct expenses on line 8b. We do not carry amounts from the Schedule G automatically because the IRS requires that only events that have gross receipts of more than $5,000 must be reported on the Schedule G. The total of all events, including events that generated less than $5,000 of gross receipts, are recorded on Part VIII, so Schedule G and Part VIII amounts may differ. To clarify, part VIII should always be completed for the fundraising events, but Schedule G is only completed in certain cases. You will need to determine under which column fundraising revenue and expenses should be reported. This note can be disregarded if you determine that the return is accurate without additional entries - it is just a suggestion to review the return to ensure that all amounts have been recorded as needed.
To enter direct expenses on line 8b, and clear the note, on screen 8, enter that direct expense on line 8b, Direct Expenses, in either the Unrelated Business Revenue or Revenue Excluded from Tax column, as appropriate.
Entry is not available for line 8b under the Exempt Function Revenue column because IRC Sections 512, 513 and 514 only describe how to classify properly defined “fundraising” activities as “Unrelated Business Revenue” or “Revenue Excluded from Tax.” Generally, the primary purpose of fundraising events is to raise funds for the organization. These activities typically do not substantially accomplish the organization’s exempt purpose and thus, are not reported under the Exempt Function Revenue column.
This entry eliminates the note, however, it generates EF Message 5188:
Correct EF Message 5188 by entering the net income on the balance sheets where appropriate (screens 10A and 10B) so that Form 990, page 11, Part X, line 33, column (B):
Equals Form 990, page 12, Part XI, line 10: