Schalke have been fined £42,124 (€50,000) for racist chants made by their fans during last week's German Cup win against Hertha Berlin.
Hertha defender Jordan Torunarigha said he was targeted by Schalke fans repeatedly during the game.
The German FA (DFB) said the player was racially abused in the 85th minute by a group of Hertha supporters. Torunarigha was then sent off in extra time for a second bookable offence.
"There were monkey chants made," the DFB said in a statement. It also warned Schalke of tougher sanctions if another incident occurs.
It added Schalke could use up to £13,480 (€16,000) for anti-racism and anti-discrimination projects with the amount deducted from their fine.
This is not the first time Schalke have been in the spotlight for racism. Schalke president Clemens Toennies stepped down for three months last year over comments the DFB said were racist. He later apologised.