2023 Instructions for Form 990 Return of Organization Exempt From

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2023

Instructions for Form 990

Return of Organization

Exempt From Income Tax

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code

(except private foundations)

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless

otherwise noted.

Contents Page

Purpose of Form ............................ 2

Phone Help ............................... 2

Email Subscription .......................... 2

General Instructions ......................... 2

A. Who Must File ........................ 2

B. Organizations Not Required To File Form

990 or 990-EZ ........................ 4

C. Sequencing List To Complete the Form

and Schedules ........................ 4

D. Accounting Periods and Methods ........... 5

E. When, Where, and How To File ............ 6

F. Extension of Time To File ................. 6

G. Amended Return/Final Return ............. 6

H. Failure-To-File Penalties ................. 6

I. Group Return .......................... 7

J. Requirements for a Properly Completed

Form 990 ............................ 7

Specific Instructions ......................... 8

Heading. Items A–M ...................... 8

Part I. Summary ........................ 10

Part II. Signature Block ................... 10

Part III. Statement of Program Service

Accomplishments ..................... 11

Part IV. Checklist of Required Schedules ...... 12

Part V. Statements Regarding Other IRS

Filings and Tax Compliance .............. 15

Part VI. Governance, Management, and

Disclosure .......................... 19

Part VII. Compensation of Officers, Directors,

Trustees, Key Employees, Highest

Compensated Employees, and

Independent Contractors ................ 25

Part VIII. Statement of Revenue ............. 37

Part IX. Statement of Functional Expenses ..... 42

Part X. Balance Sheet .................... 47

Part XI. Reconciliation of Net Assets .......... 50

Part XII. Financial Statements and Reporting ... 50

Business Activity Codes ..................... 52

Glossary ................................ 53

Appendix of Special Instructions to Form 990

Contents ............................. 75

Contents Page

Appendix A. Exempt Organizations Reference

Chart ................................ 76

Appendix B. How To Determine Whether an

Organization's Gross Receipts Are Normally

$50,000 (or $5,000) or Less ................ 77

Appendix C. Special Gross Receipts Tests for

Determining Exempt Status of Section 501(c)

(7) and 501(c)(15) Organizations ............ 77

Appendix D. Public Inspection of Returns ......... 78

Appendix E. Group Returns—Reporting

Information on Behalf of the Group ........... 82

Appendix F. Disregarded Entities and Joint

Ventures—Inclusion of Activities and Items ..... 83

Appendix G. Section 4958 Excess Benefit

Transactions ........................... 85

Appendix H. Forms and Publications To File or

Use ................................. 90

Appendix I. Use of Form 990 or 990-EZ To Satisfy

State Reporting Requirements .............. 92

Appendix J. Contributions .................... 93

Appendix K. Reporting Information for Section

501(c)(21) Black Lung Trusts ............... 95

Index ................................... 97

Future Developments

For the latest information about developments related to Form

990 and its instructions, such as legislation enacted after they

were published, go to

IRS.gov/Form990.

Reminders

Ann. 2021-18 revoked Ann. 2001-33. Ann. 2001-33, 2001-17

I.R.B. 1137, provided tax-exempt organizations with reasonable

cause for purposes of relief from the penalty imposed under

section 6652(c)(1)(A)(ii) if they reported compensation on their

annual information returns in the manner described in Ann.

2001-33 instead of in accordance with certain form instructions.

Ann. 2021-18, 2021-52 I.R.B. 910, revoked Ann. 2001-33 and

instructs affected tax-exempt organizations to follow the specific

instructions for Form 990, Form 990-EZ, and Form 990-PF,

effective for annual information returns required for tax years

beginning on or after January 1, 2022.

Section 501(c)(21) trusts. Form 990-BL, Information and

Initial Excise Tax Return for Black Lung Benefit Trusts and

Certain Related Persons, has been a historical form since tax

year 2021. Section 501(c)(21) trusts can no longer file Form

990-BL and will file Form 990 (or submit Form 990-N, Electronic

Notice (e-Postcard) for Tax-Exempt Organizations Not Required

To File Form 990 or 990-EZ, if eligible) to meet their annual filing

Dec 14, 2023

Cat. No. 11283J

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obligations under section 6033. Some section 501(c)(21) trusts

may also be required to file Form 6069, Return of Certain Excise

Taxes on Mine Operators, Black Lung Trusts, and Other Persons

Under Sections 4951, 4952, and 4953.

Purpose of Form

Forms 990 and 990-EZ are used by tax-exempt organizations,

nonexempt charitable trusts, and section 527 political

organizations to provide the IRS with the information required by

section 6033.

An organization's completed Form 990 or 990-EZ, and a

section 501(c)(3) organization's Form 990-T, Exempt

Organization Business Income Tax Return, are generally

available for public inspection as required by section 6104.

Schedule B (Form 990), Schedule of Contributors, is available

for public inspection for section 527 organizations filing Form

990 or 990-EZ. For other organizations that file Form 990 or

990-EZ, parts of Schedule B (Form 990) can be open to public

inspection. See

Appendix D. Public Inspection of Returns, and

the Instructions for Schedule B (Form 990) for more details.

Some members of the public rely on Form 990 or 990-EZ as

their primary or sole source of information about a particular

organization. How the public perceives an organization in such

cases can be determined by information presented on its return.

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the

National Center for Missing & Exploited Children® (NCMEC).

Photographs of missing children selected by the Center may

appear in instructions on pages that would otherwise be blank.

You can help bring these children home by looking at the

photographs and calling 1-800-THE-LOST (1-800-843-5678) if

you recognize a child.

Phone Help

If you have questions and/or need help completing Form 990,

please call 877-829-5500. This toll-free telephone service is

available Monday through Friday.

Email Subscription

The IRS has established a subscription-based email service for

tax professionals and representatives of tax-exempt

organizations. Subscribers will receive periodic updates from the

IRS regarding exempt organization tax law and regulations,

available services, and other information. To subscribe, go to

IRS.gov/Charities-&-Non-Profits/Subscribe-to-Exempt-

Organization-Update.

General Instructions

Overview of Form 990

Note. Terms in bold are defined in the Glossary of the

Instructions for Form 990.

Form 990 is an annual information return required to be filed with

the IRS by most organizations exempt from income tax under

section 501(a), and certain political organizations and

nonexempt charitable trusts. Parts I through XII of the form

must be completed by all filing organizations and require

reporting on the organization's exempt and other activities,

finances, governance, compliance with certain federal tax filings

and requirements, and

compensation paid to certain persons.

Additional schedules are required to be completed depending

upon the activities and type of the organization. By completing

Part IV, the organization determines which schedules are

required. The entire completed Form 990 filed with the IRS,

except for certain contributor information on Schedule B (Form

990), is required to be made available to the public by the IRS

and the filing organization (see

Appendix D), and can be

required to be filed with state governments to satisfy state

reporting requirements. See Appendix I. Use of Form 990 or

990-EZ To Satisfy State Reporting Requirements.

Reminder: Don't include social security numbers

(SSNs) on publicly disclosed forms. Because the

filing organization and the IRS are required to publicly

disclose the organization's annual information returns, SSNs

shouldn't be included on this form. By law, with limited

exceptions, neither the organization nor the IRS may remove that

information before making the form publicly available.

Documents subject to disclosure include statements and

attachments filed with the form. For more information, see

Appendix D.

Helpful hints. The following hints can help you more efficiently

review these instructions and complete the form.

•

See General Instructions, Section C, later, which provides

guidance on the recommended order for completing the form

and applicable statements.

•

Throughout these instructions, “the organization” and the

“filing organization” both refer to the organization filing Form 990.

•

Unless otherwise specified, information should be provided

for the organization's tax year. For instance, an organization

should answer “Yes” to a question asking whether it conducted a

certain type of activity only if it conducted that activity during the

tax year.

•

The examples appearing throughout the Instructions for Form

990 are illustrative only. They are for the purpose of completing

this form and aren't all-inclusive.

•

Instructions for the Form 990 schedules are published

separately from these instructions.

Organizations that have $1,000 or more for the tax year

of total gross income from all unrelated trades or

businesses must file Form 990-T to report and pay tax

on the resulting unrelated business taxable income (UBTI), in

addition to any required Form 990, 990-EZ, or 990-N.

A. Who Must File

Most organizations exempt from income tax under section

501(a) must file an annual information return (Form 990 or

990-EZ) or submit an annual electronic notice (Form 990-N),

depending upon the organization's

gross receipts and total

assets.

An organization may not file a “consolidated” Form 990

to aggregate information from another organization that

has a different

employer identification number (EIN),

unless it is filing a group return and reporting information from a

subordinate organization or organizations, reporting

information from a joint venture or disregarded entity (see

Appendix E. Group Returns—Reporting Information on Behalf of

the Group, and Appendix F. Disregarded Entities and Joint

Ventures—Inclusion of Activities and Items, later), or as

otherwise provided for in the Code, regulations, or official IRS

guidance. A parent-exempt organization of a section 501(c)(2)

title-holding company may file a consolidated Form 990-T with

the section 501(c)(2) organization, but not a consolidated Form

990.

Form 990 must be filed by an organization exempt from

income tax under section 501(a) (including an organization that

hasn't applied for recognition of exemption) if it has either (1)

gross receipts greater than or equal to $200,000, or (2) total

assets greater than or equal to $500,000 at the end of the tax

year (with exceptions described below for organizations eligible

to submit Form 990-N and for certain organizations described in

Section B. Organizations Not Required To File Form 990 or

990-EZ, later). This includes:

CAUTION

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•

Organizations described in section 501(c)(3) (other than

private foundations), and

•

Organizations described in other 501(c) subsections.

Gross receipts are the total amounts the organization

received from all sources during its tax year, without subtracting

any costs or expenses. See Appendix B. How To Determine

Whether an Organization's Gross Receipts Are Normally

$50,000 (or $5,000) or Less, later, for a discussion of gross

receipts.

For purposes of Form 990 reporting, the term “section 501(c)

(3)”

includes organizations exempt under sections 501(e) and (f)

(cooperative service organizations), 501(j) (amateur sports

organizations), 501(k) (childcare organizations), and 501(n)

(charitable risk pools). In addition, any organization described in

one of these sections is also subject to section 4958 if it obtains

a determination letter from the IRS stating that it is described in

section 501(c)(3).

Form 990-N. If an organization normally has gross receipts of

$50,000 or less, it must submit Form 990-N, if it chooses not to

file Form 990 or 990-EZ (with exceptions described below for

certain section 509(a)(3)

supporting organizations and for

certain organizations described in Section B, later). See

Appendix B for a discussion of gross receipts.

Form 990-EZ. If an organization has gross receipts less than

$200,000 and total assets at the end of the tax year less than

$500,000, it can choose to file Form 990-EZ, Short Form Return

of Organization Exempt From Income Tax, instead of Form 990.

See the Instructions for Form 990-EZ for more information. See

the special rules below regarding

section 501(c)(21) black

lung trusts, controlling organizations under section 512(b)

(13),

and sponsoring organizations of donor advised funds.

If an organization eligible to submit the Form 990-N or file the

Form 990-EZ chooses to file the Form 990, it must file a

complete return.

Foreign and U.S. territory organizations. Foreign

organizations and U.S. territory organizations as well as

domestic organizations must file Form 990 or 990-EZ unless

specifically excepted under Section B, later. Report amounts in

U.S. dollars and state what conversion rate the organization

uses. Combine amounts from inside and outside the United

States and report the total for each item. All information must be

written in English.

Section 501(c)(21) black lung trusts. The trustee of a trust

exempt from tax under section 501(a) and described in section

501(c)(21) must file Form 990 and not Form 990-EZ, unless the

trust normally has gross receipts in each tax year of not more

than $50,000 and can file Form 990-N.

Sponsoring organizations of donor advised funds. If

required to file an annual information return for the year,

sponsoring organizations of donor advised funds must file

Form 990 and not Form 990-EZ.

Controlling organizations described in section 512(b)(13).

A controlling organization of one or more controlled entities,

as described in section 512(b)(13), must file Form 990 and not

Form 990-EZ if it is required to file an annual information return

for the year and if there was any transfer of funds between the

controlling organization and any controlled entity during the year.

Section 509(a)(3) supporting organizations. A section

509(a)(3)

supporting organization must file Form 990 or

990-EZ, even if its gross receipts are normally $50,000 or less,

and even if it is described in Rev. Proc. 96-10, 1996-1 C.B. 577,

or is an affiliate of a governmental unit described in Rev. Proc.

95-48,1995-2 C.B. 418, unless it qualifies as:

1. An integrated auxiliary of a church described in

Regulations section 1.6033-2(h);

The exclusively religious activities of a religious order; or

3. An organization, the gross receipts of which are normally

not more than $5,000, that supports a section 501(c)(3) religious

organization.

If the organization is described in (3) but not in (1) or (2), then it

must submit Form 990-N unless it voluntarily files Form 990 or

990-EZ.

Section 501(c)(7) and 501(c)(15) organizations. Section

501(c)(7) and 501(c)(15) organizations apply the same gross

receipts test as other organizations to determine whether they

must file Form 990, but use a different definition of gross receipts

to determine whether they qualify as tax exempt for the tax year.

See

Appendix C. Special Gross Receipts Tests for Determining

Exempt Status of Section 501(c)(7) and 501(c)(15)

Organizations for more information.

Section 527 political organizations. A tax-exempt political

organization must file Form 990 or 990-EZ if it had $25,000 or

more in gross receipts during its tax year, even if its gross

receipts are normally $50,000 or less, unless it meets one of the

exceptions for

certain political organizations under Section B,

later. A qualified state or local political organization must file

Form 990 or 990-EZ only if it has gross receipts of $100,000 or

more. Political organizations aren't required to submit Form

990-N.

Section 4947(a)(1) nonexempt charitable trusts. A

nonexempt charitable trust described under section 4947(a)

(1) (if it isn't treated as a private foundation) is required to file

Form 990 or 990-EZ, unless excepted under Section B, later.

Such a trust is treated like an exempt section 501(c)(3)

organization for purposes of completing the form. Section

4947(a)(1) trusts must complete all sections of the Form 990 and

schedules that section 501(c)(3) organizations must complete.

All references to a section 501(c)(3) organization in the Form

990, schedules, and instructions include a section 4947(a)(1)

trust (for instance, such a trust must complete Schedule A (Form

990), Public Charity Status and Public Support, unless otherwise

specified). If such a trust doesn't have any taxable income under

subtitle A of the Code,

it can file Form 990 or 990-EZ to meet its

section 6012 filing requirement and doesn't have to file Form

1041, U.S. Income Tax Return for Estates and Trusts.

Returns when exempt status not yet established. An

organization is required to file Form 990 under these instructions

if the organization claims exempt status under section 501(a) but

hasn't established such exempt status by filing Form 1023,

Application for Recognition of Exemption Under Section 501(c)

(3) of the Internal Revenue Code; Form 1023-EZ, Streamlined

Application for Recognition of Exemption Under Section 501(c)

(3) of the Internal Revenue Code; Form 1024, Application for

Recognition of Exemption Under Section 501(a); or Form

1024-A, Application for Recognition of Exemption Under Section

501(c)(4) of the Internal Revenue Code, and receiving an IRS

determination letter

recognizing tax-exempt status. In such a

case, the organization must check the “Application pending”

checkbox on Form 990, item B, page 1 (whether or not a Form

1023, 1023-EZ, 1024, or 1024-A has been filed) to indicate that

Form 990 is being filed in the belief that the organization is

exempt under section 501(a), but that the IRS hasn't yet

recognized such exemption.

To be recognized as exempt retroactive to the date of its

organization or formation, an organization claiming tax-exempt

status under section 501(c) (other than 501(c)(29)) must

generally file an application for recognition of exemption (Form

1023, 1023-EZ, 1024, or 1024-A) within 27 months of the end of

the month in which it was legally organized or formed.

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An organization that has filed a letter application for

recognition of exemption as a qualified nonprofit health

insurance issuer under section 501(c)(29), or plans to do

so, but hasn't yet received an IRS determination letter

recognizing exempt status, must check the “Application pending”

checkbox on the Form 990, item B, page 1 .

B. Organizations Not Required To File

Form 990 or 990-EZ

An organization doesn't have to file Form 990 or 990-EZ even if it

has at least $200,000 of gross receipts for the tax year or

$500,000 of total assets at the end of the tax year if it is

described below (except for section 509(a)(3) supporting

organizations, which are described earlier). See Section A. Who

Must File, earlier, to determine if the organization can file Form

990-EZ instead of Form 990. An organization described in

paragraph 10, 11, or 13 of this Section B is required to submit

Form 990-N unless it voluntarily files Form 990 or 990-EZ, as

applicable.

Certain religious organizations.

1. A church, an interchurch organization of local units of a

church, a convention or association of churches, or an integrated

auxiliary of a church as described in Regulations section

1.6033-2(h) (such as a men's or women's organization, religious

school, mission

society, or youth group).

2. A church-affiliated organization that is exclusively

engaged in managing funds or maintaining retirement programs

and is described in Rev. Proc. 96-10. But see the filing

requirements for section 509(a)(3) supporting organizations in

Section A, earlier.

3. A school below college level affiliated with a church or

operated by a religious order described in Regulations section

1.6033-2(g)(1)(vii).

4. A mission society sponsored by, or affiliated with, one or

more churches or church denominations, if more than half of the

society's activities are conducted in, or directed at, persons in

foreign countries.

5. An exclusively religious activity of any religious order

described in Rev. Proc. 91-20, 1991-1 C.B. 524.

Certain governmental organizations.

6. A state institution whose income is excluded from gross

income under section 115.

7. A governmental unit or affiliate of a governmental unit

described in Rev. Proc. 95-48. But see the filing requirements for

section 509(a)(3) supporting organizations in Section A, earlier.

8. An organization described in section 501(c)(1). A section

501(c)(1) organization is a corporation organized under an Act of

Congress that is an instrumentality of the United States, and

exempt from federal income taxes.

Certain political organizations.

9. A political organization that is:

•

A state or local committee of a political party,

•

A political committee of a state or local candidate,

•

A caucus or association of state or local officials, or

•

Required to report under the Federal Election Campaign Act

of 1971 as a political committee (as defined in section 301(4) of

such Act).

Certain organizations with limited gross receipts.

10.

An organization whose gross receipts are normally

$50,000 or less. Such organizations are generally required to

submit Form 990-N if they choose not to file Form 990 or

990-EZ. To determine what an organization's gross receipts

“normally” are, see

Appendix B .

CAUTION

11.

Foreign organizations

and organizations located in U.S.

territories, whose gross receipts from sources within the

United States are normally $50,000 or less and which didn't

engage in significant activity in the United States (other than

investment activity). Such organizations, if they claim U.S. tax

exemption or are recognized by the IRS as tax exempt, are

generally required to submit Form 990-N if they choose not to file

Form 990 or 990-EZ.

If a foreign organization or U.S. territory organization is required

to file Form 990 or 990-EZ, then its worldwide gross receipts, as

well as assets, are taken into account in determining whether it

qualifies to file Form 990-EZ.

Certain organizations that file different kinds of annual

information returns.

12.

A private foundation (including a private operating

foundation) exempt under section 501(c)(3) and described in

section 509(a). Use Form 990-PF, Return of Private Foundation

or Section 4947(a)(1) Trust Treated as Private Foundation.

Also

use Form 990-PF for a taxable private foundation, a section

4947(a)(1)

nonexempt charitable trust treated as a private

foundation, and a private foundation terminating its status by

becoming a public charity under section 507(b)(1)(B) (for tax

years within its 60-month termination period). If the organization

successfully terminates, then it files Form 990 or 990-EZ in its

final year of termination.

13.

A religious or apostolic organization described in section

501(d). Use Form 1065, U.S. Return of Partnership Income.

14.

A stock bonus, pension, or profit-sharing trust that

qualifies under section 401. Use Form 5500, Annual Return/

Report of Employee Benefit Plan.

Subordinate organizations in a group exemption

which are included in a group return filed by the

central organization for the tax year shouldn't file a

separate Form 990, 990-EZ, or 990-N for the tax year.

C. Sequencing List To Complete the

Form and Schedules

You may find the following list helpful. It limits jumping from one

part of the form to another to make a calculation or determination

needed to complete an earlier part. Certain later parts of the

form must first be completed in order to complete earlier parts. In

general, first complete the

core form, and then complete

alphabetically Schedules A–N and Schedule R, except as

provided below. Schedule O (Form 990), Supplemental

Information to Form 990 or 990-EZ, should be completed as the

core form and schedules are completed. Note that all

organizations filing Form 990 must file Schedule O.

A public charity described in section 170(b)(1)(A)(iv),

170(b)(1)(A)(vi), or 509(a)(2) that isn't within its initial 5

years of existence should first complete Part II or III of

Schedule A (Form 990) to ensure that it continues to qualify as a

public charity for the tax year. If it fails to qualify as a public

charity, then it must file Form 990-PF rather than Form 990 or

990-EZ, and check the box for “Initial return of a former public

charity” on page 1 of Form 990-PF.

1. Complete items A through F and H(a) through M in the

heading of Form 990, on page 1.

2. See the instructions for definitions of related

organization and control and determine the organization's

related organizations required to be listed on Schedule R (Form

990), Related Organizations and Unrelated Partnerships.

3. Determine the organization's officers, directors, trustees,

key employees, and five highest compensated employees

required to be listed on Form 990, Part VII, Section A.

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4. Complete Parts VIII, IX, and X of Form 990.

5. Complete item G in the heading section of Form 990, on

page 1.

6. Complete Parts III, V, VII, XI, and XII of Form 990.

7. See the Instructions for Schedule L (Form 990),

Transactions With Interested Persons, and complete Schedule L

(Form 990) (if required).

8. Complete Part VI of Form 990. Transactions reported on

Schedule L (Form 990) are relevant to determining

independence of members of the governing body under Form

990, Part VI, line 1b.

9. Complete Part I of Form 990 based on information derived

from other parts of the form.

10.

Complete Part IV of Form 990 to determine which

schedules must be completed by the organization.

11.

Complete Schedule O (Form 990) and any other

applicable schedules (for “Yes” boxes that were checked in Part

IV). Use Schedule O (Form 990) to provide required

supplemental information and other narrative explanations for

questions on the core Form 990. For questions on Form 990

schedules, use the narrative part of each schedule to provide

supplemental narrative.

12.

Complete Part II, Signature Block, of Form 990.

D. Accounting Periods and Methods

These are the accounting periods covered under the law.

Accounting Periods

Calendar year. Use the 2023 Form 990 to report on the 2023

calendar year accounting period. A calendar year accounting

period begins on January 1 and ends on December 31.

Fiscal year. If the organization has established a fiscal year

accounting period, use the 2023 Form 990 to report on the

organization's fiscal year that began in 2023 and ended 12

months later. A fiscal year accounting period should normally

coincide with the natural operating cycle of the organization. Be

certain to indicate in item A of Form 990, page 1, the date the

organization's fiscal year began in 2023 and the date the fiscal

year ended in 2024.

Short period. A short accounting period is a period of less than

12 months, which exists when an organization first commences

operations, changes its accounting period, or terminates. If the

organization's short year began in 2023, and ended before

December 31, 2023 (not on or after December 31, 2023), it may

use either 2022 Form 990 or 2023 Form 990 to file for the short

year. If using the 2022 return, provide the information for

designated years listed on the return, other than the tax year

being reported, as if the years shown in the form text and

headings were updated. For example, if filing for a short period

beginning in 2023 on the 2022 Form 990, provide the information

on Schedule A, Part II, for the tax years 2019–2023, rather than

for tax years 2018–2022. Check the “Initial return” box or the

“Final return/terminated” box in item B of the heading if either of

those situations applies.

Accounting period change. If the organization changes its

accounting period, it must file a Form 990 for the short period

resulting from the change. If you are filing a short period return

because you changed your accounting period, use software with

a change of accounting period field to file. Also, include the

reason for the change, either “Form 1128 was approved” or

“Revenue Procedure 85-58 rules apply.”

If the organization has previously changed its annual

accounting period at any time within the 10-calendar-year period

that includes the beginning of the short period resulting from

the current change in accounting period, and it had a Form

990-series filing requirement or income tax return filing

requirement at any time during that 10-year period, it must also

file a Form 1128, Application To Adopt, Change, or Retain a Tax

Year, with the short-period return. See Rev. Proc. 85-58, 1985-2

C.B. 740.

If an organization that submits Form 990-N changes its

accounting period, it must report this change on Form 990, Form

990-EZ, or Form 1128, or by sending a letter to Internal Revenue

Service, 1973 Rulon White Blvd., Ogden, UT 84201.

Accounting Methods

An “accounting method,” for federal income tax purposes, is a

practice a taxpayer follows to determine the tax year in which to

report revenue and expenses for federal income tax purposes.

An accounting method includes not only the overall plan of

accounting for gross income or deductions (for example, an

accrual method or the cash receipts and disbursement method),

but also the treatment of any item that involves the proper time

for the inclusion of an item in income or the taking of an item as a

deduction, or both. However, a practice that does not affect the

timing for reporting an item of income or deduction for purposes

of determining taxable income is not an accounting method. A

taxpayer, including a tax-exempt entity, generally adopts any

permissible accounting method in the first year in which it uses

the method in determining its taxable income. See Rev. Proc.

2015-13, 2015-5 I.R.B. 419, as modified by Rev. Proc. 2021-34

and any successor, for general procedures for obtaining consent

to change an accounting method.

An exempt organization may adopt an accounting

method not only for purposes of calculating taxable

income, but also for purposes of determining whether

taxable income will be subject to federal income tax. For

example, a tax-exempt entity may adopt an accounting method

for an item of income from an unrelated trade or business activity

even if the gross income from such activity is less than $1,000

and is therefore not taxed for federal income tax purposes

pursuant to Regulations section 1.6012-2(e).

An accounting method for an item of income or deduction

may generally be adopted separately for each of the taxpayer’s

trades or businesses. However, in order to be permissible, an

accounting method must clearly reflect the taxpayer’s income.

Unless instructed otherwise, the organization should generally

use the same accounting method on the return (including the

Form 990 and all schedules) to report revenue and expenses

that it regularly uses to keep its books and records.

Accounting method change. Once a taxpayer, including a

tax-exempt entity, adopts an accounting method for federal

income tax purposes, the taxpayer must generally request the

IRS’s consent before it can change its accounting method (even

if the year in which the taxpayer seeks to make the change is a

year in which it generates only tax-exempt income or is

otherwise not taxed on its taxable income). In most cases, a

taxpayer requests consent to change an accounting method by

filing a Form 3115, Application for Change in Accounting

Method. See Rev. Proc. 2015-13, as modified by Rev. Proc.

2021-34 and any successor, for general procedures for obtaining

consent to change an accounting method.

Depending on the specific accounting method change

being requested, the taxpayer may be able to request

“automatic” consent. This means that as long as the

taxpayer follows the applicable procedures, the taxpayer does

not have to wait for formal approval by the IRS before applying

the new accounting method. See Rev. Proc. 2023-24, 2023-8

I.R.B. 1207, or its successor, for a list of accounting method

changes that generally qualify for automatic consent.

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For example, a tax-exempt entity that has adopted an

accounting method for an item of income from an unrelated trade

or business must generally request consent before it can change

its method of accounting for that item in any subsequent year.

This is true regardless of whether gross income from the

unrelated trade or business is greater than or equal to $1,000 in

such subsequent year.

Alternatively, if a taxpayer, including a tax-exempt entity, has

not yet adopted an accounting method for an item of income or

deduction, a change in how the entity reports the item is not a

change in accounting method. In this case, the procedures

applicable to requests for accounting method changes (for

example, the requirement to file a Form 3115) are not applicable.

Thus, a tax-exempt entity that has never taken into account

an item of income or deduction in determining taxable income

does not have to request consent to change its method of

reporting that item on Form 990. Additionally, a tax-exempt entity

that has never been subject to federal income tax on an item of

income or deduction but that is required to file a Form 990-T

solely due to owing a section 6033(e)(2) proxy tax does not have

to request consent to change its method for reporting the item.

Adjustments required when changing an accounting meth-

od. A taxpayer, including a tax-exempt entity, that changes its

accounting method must generally calculate and report an

adjustment to ensure that no portion of the item being changed

is permanently omitted or duplicated (see section 481(a)).

However, depending on the specific method change, the IRS

may provide that an adjustment is not required or permitted. An

organization must report any adjustment required by section

481(a) in Parts VIII through XI and on Schedule D (Form 990),

Parts XI and XII, as applicable, and provide an explanation for

the change on Schedule O (Form 990).

Generally, a taxpayer, including a tax-exempt entity, will

recognize a positive section 481(a) adjustment (such as

an increase to income) ratably over 4 tax years and will

recognize a negative section 481(a) adjustment in full in the year

of change. See Rev. Proc. 2015-13, as modified by Rev. Proc.

2021-34 and any successor, for general procedures for obtaining

consent to change an accounting method.

However, as discussed above, if a tax-exempt entity has not

yet adopted an accounting method for an item, a change in how

the entity reports the item for purposes of the Form 990 is not a

change in accounting method. In this case, an adjustment under

section 481(a) is not required or permitted.

State reporting. Many states that accept Form 990 in place of

their own forms require that all amounts be reported based on

the accrual method of accounting. If the organization prepares

Form 990 for state reporting purposes, it can file an identical

return with the IRS even though the return doesn't agree with the

books of account,

unless the way one or more items are reported

on the state return conflicts with the instructions for preparing

Form 990 for filing with the IRS.

Example 1. The organization maintains its books on the

cash receipts and disbursements method of accounting but

prepares a Form 990 return for the state based on the accrual

method. It could use that return for reporting to the IRS.

Example 2. A state reporting requirement requires the

organization to report certain revenue, expense, or balance

sheet items differently from the way it normally accounts for them

on its books. A Form 990 prepared for that state is acceptable for

IRS reporting purposes if the state reporting requirement doesn't

conflict with the Instructions for Form 990.

An organization should keep a reconciliation of any

differences between its books of account and the Form 990 that

is filed. Organizations with audited financial statements are

CAUTION

required to provide such reconciliations on Schedule D (Form

990), Parts XI through XII.

See Pub. 538, Accounting Periods and Methods, and the

instructions for Forms 1128 and 3115, about reporting

changes to accounting periods and methods.

E. When, Where, and How To File

File Form 990 by the 15th day of the 5th month after the

organization's accounting period ends (May 15th for a

calendar-year filer). If the due date falls on a Saturday, Sunday,

or legal holiday, file on the next business day. A business day is

any day that isn't a Saturday, Sunday, or legal holiday.

If the organization is liquidated, dissolved, or terminated, file

the return by the 15th day of the 5th month after liquidation,

dissolution, or termination.

If the return isn't filed by the due date (including any extension

granted), provide a reasonable-cause explanation giving the

reasons for not filing on time.

Required electronic filing. If you are filing a 2023 Form 990,

you are required to file electronically.

For additional information on the electronic filing requirement,

go to IRS.gov/EOefile.

F. Extension of Time To File

Use Form 8868, Application for Extension of Time To File an

Exempt Organization Return or Excise Taxes Related to

Employee Benefit Plans, to request an automatic extension of

time to file.

G. Amended Return/Final Return

To amend the organization's return for any year, file a new return

including any required schedules. Use the version of Form 990

applicable to the year being amended. The amended return

must provide all the information called for by the form and

instructions, not just the new or corrected information. Check the

“Amended return” box in item B in the heading area of the form.

Also, enter on Schedule O (Form 990) which parts and

schedules of the Form 990 were amended and describe the

amendments.

The organization can file an amended return at any time to

change or add to the information reported on a previously filed

return for the same period. It must make the amended return

available for inspection for 3 years from the date of filing or 3

years from the date the original return was due, whichever is

later.

If the organization needs a complete copy of its previously

filed return, it can file Form 4506, Request for Copy of Tax

Return.

If the return is a final return, the organization must check the

“Final return/terminated” box in item B in the heading area of the

form, and complete Schedule N (Form 990), Liquidation,

Termination, Dissolution, or Significant Disposition of Assets.

Amended returns and state filing considerations. State law

may require that the organization send a copy of an amended

Form 990 return (or information provided to the IRS

supplementing the return) to the state with which it filed a copy of

Form 990 to meet that state's reporting requirement. A state may

require an organization to file an amended Form 990 to satisfy

state reporting requirements, even if the original return was

accepted by the IRS.

H. Failure-To-File Penalties

Against the organization. Under section 6652(c)(1)(A), a

penalty of $20 a day, not to exceed the lesser of $12,000 or 5%

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of the gross receipts of the organization for the year, can be

charged when a return is filed late, unless the organization

shows that the late filing was due to reasonable cause.

Organizations with annual gross receipts exceeding

$1,208,500 are subject to a penalty of $120 for each day failure

continues (with a maximum penalty for any one return of

$60,000). The penalty applies on each day after the due date

that the return isn't filed.

Tax-exempt organizations that are required to file

electronically but don't are deemed to have failed to file the

return. This is true even if a paper return is submitted.

The penalty can also be charged if the organization files an

incomplete return, such as by failing to complete a required line

item or a required part of a schedule. To avoid penalties and

having to supply missing information later:

•

Complete all applicable line items;

•

Unless instructed to skip a line, answer each question on the

return;

•

Make an entry (including a zero when appropriate) on all lines

requiring an amount or other information to be reported; and

•

Provide required explanations as instructed.

Also, this penalty can be imposed if the organization's return

contains incorrect information. For example, an organization that

reports contributions net of related fundraising expenses can be

subject to this penalty.

Use of a paid preparer doesn't relieve the organization of its

responsibility to file a complete and accurate return.

Against responsible person(s). If the organization doesn't file

a complete return or doesn't furnish correct information, the IRS

will send the organization a letter that includes a fixed time to

fulfill these requirements. After that period expires, the person

failing to comply will be charged a penalty of $10 a day. The

maximum penalty on all persons for failures for any one return

shall not exceed $6,000.

There are also penalties (fines and imprisonment) for willfully

not filing returns and for filing fraudulent returns and statements

with the IRS (see sections 7203, 7206, and 7207). States can

impose additional penalties for failure to meet their separate

filing requirements.

Automatic revocation for nonfiling for 3 consecutive years.

The law requires most tax-exempt organizations to file an annual

Form 990, 990-EZ, or 990-PF with the IRS, or to submit a Form

990-N e-Postcard to the IRS. For information on exceptions to

this requirement, go to

Annual Exempt Organization Return:

Who Must File. If an organization fails to file an annual return or

submit a notice as required for 3 consecutive years, its

tax-exempt status is automatically revoked on and after the due

date for filing its third annual return or notice. Organizations that

lose their tax-exempt status may need to file income tax returns

and pay income tax, but may apply for reinstatement of

exemption. For details, go to

IRS.gov/EO.

I. Group Return

A central, parent, or similar organization can file a group return

on Form 990 for two or more subordinate or local organizations

that are:

•

Affiliated with the central organization at the time its tax year

ends,

•

Subject to the central organization's general supervision or

control,

•

Exempt from tax under a group exemption letter that is still in

effect, and

•

Using the same tax year as the central organization.

The central organization can't use a Form 990-EZ for the

group return.

subordinate organization may choose to file a separate

annual information return instead of being included in the group

return.

If the central organization is required to file a return for itself,

it must file a separate return and can't be included in the group

return. See Regulations section 1.6033-2(d)(1). See

Section B,

earlier, for a list of organizations not required to file.

Every year, each subordinate organization must authorize the

central organization in writing to include it in the group return and

must declare, under penalties of perjury,

that the authorization

and the information it submits to be included in the group return

are true and complete.

The central organization should send the annual information

update required to maintain a group exemption ruling (a separate

requirement from the annual return) to:

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0027

For special instructions regarding answering certain Form 990

questions about parts or schedules in the context of a group

return, see

Appendix E.

J. Requirements for a Properly

Completed Form 990

All organizations filing Form 990 must complete Parts I through

XII, Schedule O (Form 990), and any schedules for which a “Yes”

response is indicated in Part IV. If an organization isn't required

to file Form 990 but chooses to do so, it must file a complete

return and provide all of the information requested, including the

required schedules.

Public inspection. In general, all information the organization

reports on or with its Form 990, including schedules and

attachments, will be available for public inspection. Note,

however, the special rules for Schedule B (Form 990), a required

schedule for certain organizations that file Form 990. Make sure

PDF attachments (if any) are clear and legible. For more

information on public inspection requirements, see

Appendix D,

and Pub. 557, Tax-Exempt Status for Your Organization.

Signature. A Form 990 isn't complete without a proper

signature. For details, see the instructions under Part II,

Signature Block, later.

Recordkeeping. The organization's records should be kept for

as long as they may be needed for the administration of any

provision of the Internal Revenue Code. Usually, records that

support an item of income, deduction, or credit must be kept for

a minimum of 3 years from the date the return is due or filed,

whichever is later.

Keep records that verify the organization's

basis in property for as long as they are needed to figure the

basis of the original or replacement property. Applicable law and

an organization's policies can require that the organization retain

records longer than 3 years. Form 990, Part VI, line 14, asks

whether the organization has a document retention and

destruction policy.

The organization should also keep copies of any returns it has

filed. They help in preparing future returns and in making

computations when filing an amended return.

Rounding off to whole dollars. The organization must round

off cents to whole dollars on the returns and schedules, unless

otherwise noted for particular questions. To round, drop amounts

under 50 cents and increase amounts from 50 to 99 cents to the

next dollar. For example, $1.49 becomes $1 and $2.50 becomes

$3. If the organization has to add two or more amounts to figure

the amount to enter on a line, include cents when adding the

amounts and round off only the total.

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Completing all lines. Make an entry (including -0- when

appropriate) on all lines requiring an amount or other information

to be reported. Don't leave any applicable lines blank, unless

expressly instructed to skip that line. If answering a line is

predicated on a “Yes” answer to the preceding line, and if the

organization's answer to the preceding line was “No,” then leave

the “If Yes” line blank.

All filers must file Schedule O (Form 990). Certain questions

require all filers to provide an explanation on Schedule O (Form

990). In general, answers can be explained or supplemented on

Schedule O (Form 990) if the allotted space on the form or other

schedule is insufficient, or if a “Yes” or “No” answer is required

but the organization wishes to explain its answer.

Missing or incomplete parts of the form and/or required

schedules may result in the IRS contacting you to obtain the

missing information. Failure to supply the information may result

in a penalty being assessed to your account. For tips on filing

complete returns, go to IRS.gov/Charities.

Reporting proper amounts. Some lines request information

reported on other forms filed by the organization (such as Forms

W-2, 1099, and 990-T). If the organization is aware that the

amount actually reported on the other form is incorrect, it must

report on Form 990 the information that should have been

reported on the other form (in addition to filing an amended form

with the proper amount).

In general, don't report negative numbers, but use -0- instead

of a negative number, unless the instructions otherwise provide.

Report revenue and expenses separately and don't net related

items, unless otherwise provided.

Inclusion of activities and items of disregarded entities

and joint ventures. An organization must report on its Form

990 all of the revenues, expenses, assets, liabilities, and net

assets or funds of a disregarded entity of which it is the sole

member, and must report on its Form 990 its share of all such

items of a

joint venture or other investment or arrangement

treated as a partnership for federal income tax purposes. This

includes passive investments. In addition, the organization must

generally report activities of a disregarded entity or a joint

venture on the appropriate parts or schedules of Form 990. For

special instructions about the treatment of disregarded entities

and joint ventures for various parts of the form, see Appendix F.

Reporting information from third parties. Some lines

request information that the organization may need to obtain

from third parties, such as compensation paid by

organizations; family and business relationships between

officers, directors, trustees, key employees, and certain

businesses they own or control; the organization's share of the

income and assets of a partnership or joint venture in which it

has an ownership interest; and certain transactions between the

organization and interested persons. The organization should

make reasonable efforts to obtain this information. If it is unable

to obtain certain information by the due date for filing the return,

it should file Form(s) 8868 to request a filing extension. See

Section F. Extension of Time To File, earlier. If the organization is

unable to obtain this information by the extended due date after

making reasonable efforts, and isn't certain of the answer to a

particular question, it may make a reasonable estimate, where

applicable, and explain on Schedule O.

Assembling Form 990, Schedules, and

Attachments

Before filing Form 990, assemble the package of forms,

schedules, and attachments in the following order.

1. Core form with Parts I through XII completed, filed in

numerical order.

Schedules, completed as applicable, filed in alphabetical

order (see Form 990, Part IV, for required schedules).

3. Attachments, completed as applicable. These include (a)

name change amendment to organizing document required by

item B on page 1; (b) list of

subordinate organizations

included in a group return required by item H on page 1; (c)

articles of merger or dissolution, resolutions, and plans of

liquidation or merger required by Schedule N (Form 990); and

(d) for

hospital organizations only, a copy of the most recent

audited financial statements.

Don't attach materials not authorized in the instructions or not

otherwise authorized by the IRS.

To facilitate the processing of your return, don't

password protect or encrypt PDF attachments.

Password protecting or encrypting a PDF file that is

attached to an e-filed return prevents the IRS from opening the

attachment.

Specific Instructions

Heading. Items A–M

Complete items A through M.

Item A. Accounting period. File the 2023 return for calendar

year 2023 and fiscal years that began in 2023 and ended in

2024. For a fiscal year return, fill in the tax year space at the top

of page 1. See

General Instructions, Section D, earlier, for

additional information about accounting periods.

Item B. Checkboxes. The following checkboxes are under Item

Address change. Check this box if the organization changed

its address and hasn't reported the change on its most recently

filed Form 990, 990-EZ, 990-N, or 8822-B, Change of Address or

Responsible Party—Business, or in correspondence to the IRS.

If a change in address occurs after the return is filed, use

Form 8822-B to notify the IRS of the new address.

Name change. Check this box if the organization changed its

legal name (not its “doing business as” name) and if the

organization hasn't reported the change on its most recently filed

Form 990 or 990-EZ or in correspondence to the IRS. If the

organization changed its name, attach the following documents.

IF the organization is . . .

THEN attach . . .

a corporation a copy of the amendment to the

articles of incorporation and proof of

filing with the appropriate state

authority.

a trust a copy of the amendment to the trust

instrument, or a resolution to amend

the trust instrument, showing the

effective date of the change of name

and signed by at least one trustee.

an unincorporated association a copy of the amendment to the

articles of association, constitution, or

other organizations answer “No.”

Line 2. Answer “Yes” if any of the following are satisfied.

•

A section 501(c)(3) organization met the 33

/3% support test

of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi);

checks the box on Schedule A (Form 990), Part II, line 13, 16a,

or 16b; and received from any one contributor, during the year,

contributions of the greater of $5,000 (in money or property) or

2% of the amount on Form 990, Part VIII, line 1h. An organization

filing Schedule B (Form 990) can limit the contributors it reports

on Schedule B (Form 990) using this greater-than-$5,000/2%

threshold only if it checks the box on Schedule A (Form 990),

Part II, line 13, 16a, or 16b.

•

A section 501(c)(3) organization didn’t meet the 33

/3%

support test of the regulations under sections 509(a)(1) and

170(b)(1)(A)(vi), and received during the year contributions of

$5,000 or more from any one contributor.

•

A section 501(c)(7), 501(c)(8), or 501(c)(10) organization

received, during the year, (a) contributions of any amount for

use exclusively for religious, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty to children

or animals; or (b) contributions of $5,000 or more not exclusively

for such purposes from any one contributor.

•

Any other organization that received, during the year,

contributions of $5,000 or more from any one contributor.

Don't attach substitutes for Schedule B (Form 990).

Line 3. All organizations must answer this question, even if they

aren't subject to a prohibition against political campaign

activities. Answer “Yes” whether the activity was conducted

directly or indirectly through a disregarded entity or a joint

venture or other arrangement treated as a partnership for

federal income tax purposes and in which the organization is an

owner.

Line 4. Complete only if the organization is a section 501(c)(3)

organization. Other organizations leave this line blank. Answer

“Yes” if the organization engaged in

lobbying activities or had a

section 501(h) election in effect during the tax year. All section

501(c)(3) organizations that had a section 501(h) election in

effect during the tax year must complete Schedule C (Form 990),

Part II-A, whether or not they engaged in lobbying activities

during the tax year.

CAUTION

Line 5.

Answer “Yes” only if the organization is a section 501(c)

(4), 501(c)(5), or 501(c)(6) organization that receives

membership dues, assessments, or similar amounts as defined

in Rev. Proc. 98-19, 1998-1 C.B. 547. Other organizations

answer “No.”

Line 6. Answer “Yes” if the organization maintained at any time

during the organization's tax year a donor advised fund or

another similar fund or account (that is, any account over which

the donor or a person appointed by the donor had advisory

privileges over the use or investment of any portion of the

account, but which isn't a

donor advised fund). Examples of

other similar funds or accounts include, but aren't limited to, the

types of funds or accounts described as exceptions to the

Glossary definition of a donor advised fund.

Line 7. Answer “Yes” if the organization received or held any

conservation easement at any time during the year, regardless

of how the organization acquired the easement or whether a

charitable deduction was claimed by a donor of the easement.

Line 8. Answer “Yes” if, at any time during the year, the

organization maintained collections of works of art, historical

treasures, and other similar assets as described in ASC

958-360-45, whether or not the organization reported revenue

and assets related to such collections in its financial statements.

Organizations that answer “Yes” on line 8 will often

answer “Yes” on Part IV, line 30, which addresses

current-year

noncash contributions of such items.

Line 9. Answer “Yes” if, at any time during the organization's tax

year, the organization (1) had an escrow or custodial account;

(2) provided credit counseling services and/or debt

management plan services, such as credit repair or debt

negotiations; or (3) acted as an agent, trustee, custodian, or

other intermediary for contributions or other assets not included

in Part X.

Line 10. Answer “Yes” if the organization, a related

organization, or an organization formed and maintained

exclusively to further one or more exempt purposes of the

organization (such as a foundation formed and maintained

exclusively to hold endowment funds to provide scholarships

and other funds for a college or university described within

section 501(c)(3)) held assets in donor-restricted endowment

funds, board designated (quasi), or endowment funds at any

time during the year, whether or not the organization follows ASC

958, or reports endowment funds in Part X, line 31. See the

instructions for Schedule D (Form 990), Part V, for the definitions

of these types of endowment funds.

Line 11. Answer “Yes” if the organization reported an amount for

land, buildings, equipment, or leasehold improvements on Part

X, line 10; an amount for other liabilities on Part X, line 25; or if its

financial statements for the tax year included a footnote that

addresses its liability for uncertain tax positions under FIN 48

(FASB ASC 740) (including a statement that the organization

had no liability for uncertain tax positions). Also, answer “Yes” if

the organization reported in Part X an amount for

investments-other securities, investments-program related, or

other assets, on any of line 12,13, or 15, that is 5% or more of

the total assets reported on Part X, line 16.

Line 12a. Answer “Yes” if the organization received separate,

independent

audited financial statements for the year for

which it is completing this return, or if the organization is

reporting for a short year that is included in, but not identical to,

the period for which the audited financial statements were

obtained. All other organizations answer “No.” Answer “No” if the

organization was included in consolidated audited financial

statements, unless the organization also received separate

audited financial statements.

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An accountant's compilation or review of financial

statements isn't considered to be an audit and doesn't produce

audited financial statements. If the organization answers “No,”

but has prepared, for the year for which it is completing this

return, a financial statement that wasn't audited, the organization

can (but isn't required to) provide the reconciliations contained

on Schedule D (Form 990), Parts XI–XII.

Line 12b. Answer “Yes” if the organization was included in

consolidated, independent audited financial statements for

the year for which it is completing this return. All other

organizations answer “No.” Answer “Yes” if the organization is

reporting for a short year that is included in, but not identical to,

the period for which the audited financial statements were

obtained.

Line 13. Answer “Yes” if the organization checked the box on

Schedule A (Form 990), Part I, line 2, indicating that it is a

school.

Lines 14a–14b. Answer “Yes” on line 14a if the organization

maintained an office, or had employees or agents, or

independent contractors outside the United States. Answer

“Yes” on line 14b if the organization had aggregate revenue or

expenses of more than $10,000 from or attributable to

grantmaking,

fundraising activities, business, investment, and

program service activities outside the United States, or if the

book value of the organization's aggregate investments in foreign

partnerships, foreign corporations, and other foreign entities was

$100,000 or more at any time during the

tax year.

In the case of indirect investments made through investment

entities, the extent to which revenue or expenses are taken into

account in determining whether the $10,000 threshold is

exceeded will depend upon whether the investment entity is

treated as a partnership or corporation for U.S. tax purposes. For

example, an organization with an interest in a foreign partnership

would need to take into account its share of the partnership's

revenue and expenses in determining whether the $10,000

threshold is exceeded. An organization with an investment in a

foreign corporation would need to take into account dividends it

receives from the corporation, but wouldn't need to take into

account or report any portion of the revenues, expenses, or

expenditures of a foreign corporation in which it holds an

investment, provided that the corporation is treated as a

separate corporation for U.S. tax purposes.

Line 15. Answer “Yes” if the organization reported on Part IX,

line 3, column (A), more than $5,000 of

grants and other

assistance to any foreign organization or entity (including a

foreign government), or to a domestic organization or

domestic individual for the purpose of providing grants or other

assistance to a designated

foreign organization or

organizations.

Line 16. Answer “Yes” if the organization reported on Part IX,

line 3, column (A), more than $5,000 of aggregate grants and

other assistance to foreign individuals, or to domestic

organizations or domestic individuals for the purpose of

providing grants or other assistance to a designated foreign

individual or individuals.

Lines 17–18. Answer “Yes” on line 17 if the total amount

reported for

professional fundraising services in Part IX

(line 11e, plus the portion of the line 6 amount attributable to

professional fundraising services) exceeds $15,000.

Answer “Yes” on line 18 if the sum of the amounts reported on

lines 1c and 8a of Form 990, Part VIII, exceeds $15,000. An

organization that answers “No” should consider whether to

complete Schedule G (Form 990) in order to report its

fundraising activities or gaming activities for state or other

reporting purposes.

Line 20a.

Answer “Yes” if the organization, directly or indirectly

through a disregarded entity or joint venture treated as a

partnership for federal income tax purposes, operated one or

more hospital facilities at any time during the tax year. Except

in the case of a

group return, don't include hospital facilities

operated by another organization that is treated as a separate

taxable or tax-exempt corporation for federal income tax

purposes. For group returns, answer “Yes” if any subordinate

included in the group return operated such a hospital facility.

Line 20b. If the organization operated one or more hospital

facilities at any time during the tax year, then it must attach a

copy of its most recent audited financial statements. If the

organization was included in consolidated audited financial

statements but not separate audited financial statements for the

tax year, then it must attach a copy of the consolidated financial

statements, including details of consolidation (whether or not

audited).

Line 21. Answer “Yes” if the organization reported on Part IX,

line 1, column (A), more than $5,000 of

grants and other

assistance to any domestic organization, or to any domestic

government. For instance, answer “No” if the organization made

a $4,000 grant to each of two domestic organizations and no

other grants. Don't report grants or other assistance provided to

domestic organizations or domestic governments for the

purpose of providing grants or other assistance to designated

foreign organizations or foreign individuals.

Section 501(c)(21) trusts. Use Schedule I (Form 990),

Grants and Other Assistance to Organizations, Governments,

and Individuals in the United States, to report amounts over

$5,000 paid by the trust (1) to the Federal Black Lung Disability

Trust Fund pursuant to section 3(b)(3) of Public Law 95-227, or

(2) for insurance exclusively covering liabilities under sections

501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV). For details, see

Regulations section 1.501(c)(21)-1(d).

Line 22. Answer “Yes” if the organization reported on Part IX,

line 2, column (A), more than $5,000 of aggregate grants and

other assistance to or for domestic individuals. Don't report

grants or other assistance provided to or for domestic individuals

for the purpose of providing grants or other assistance to

designated

foreign organizations or foreign individuals.

Section 501(c)(21) trusts. Use Schedule I (Form 990) to

report amounts over $5,000 paid by the black lung trust to or for

the benefit of miners or their beneficiaries other than amounts

included on line 21. Such payments could include direct

payment of medical bills, etc., authorized by the Act and

accident and health benefits for retired miners and their spouses

and dependents.

Line 23. Answer “Yes” if the organization:

•

Listed in Part VII a former officer, director, trustee, key

employee, or highest compensated employee; or

•

Reported for any person listed in Part VII more than $150,000

of reportable compensation and other compensation.

Also answer “Yes” if, under the circumstances described in

the instructions for Part VII, Section A, line 5, the filing

organization had knowledge that any person listed in Part VII,

Section A, received or accrued

compensation from an

unrelated organization for services rendered to the filing

organization.

Line 24. Lines 24a–24d involve questions regarding

tax-exempt bonds. All organizations must answer “Yes” or “No”

on line 24a. Those organizations that answer “Yes” on line 24a

must also answer lines 24b through 24d and complete

Schedule K (Form 990), Supplemental Information on

Tax-Exempt Bonds. Those that answer “No” to line 24a can skip

to line 25a.

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Line 24a. Answer “Yes” and complete Schedule K (Form 990)

for each tax-exempt bond issued by or for the benefit of the

organization after December 31, 2002, (including refunding

bonds) with an outstanding principal amount of more than

$100,000 as of the last day of the organization's tax year. For this

purpose, bonds that have been legally defeased, and as a result

are no longer treated as a liability of the organization, aren't

considered outstanding.

Line 24b. For purposes of line 24b, the organization need not

include the following as investments of proceeds.

•

Any investment of proceeds relating to a reasonably required

reserve or replacement fund as described in section 148(d).

•

Any investment of proceeds properly characterized as

replacement proceeds as defined in Regulations section

1.148-1(c).

•

Any investment of net proceeds relating to a refunding

escrow as defined in Regulations section 1.148-1(b).

Temporary period exceptions are described in section 148(c)

and Regulations section 1.148-2(e). For example, there is a

3-year temporary period applicable to proceeds spent on

expenditures for capital projects and a 13-month temporary

period applicable to proceeds spent on working capital

expenditures.

Line 24c. For purposes of line 24c, the organization is treated

as maintaining an escrow account if such account is maintained

by a trustee for

tax-exempt bonds issued for the benefit of the

organization.

Line 24d. Answer “Yes” if the organization has received a

letter ruling that its obligations were issued on behalf of a state or

local

governmental unit; meets the conditions for issuing

tax-exempt bonds as set forth in Rev. Rul. 63-20, 1963-1 C.B.

24 (see Rev. Proc. 82-26, 1982-1 C.B. 476); or is a constituted

authority organized by a state or local governmental unit to issue

tax-exempt bonds in order to further public purposes (see Rev.

Rul. 57-187, 1957-1 C.B. 65). Also answer “Yes” if the

organization has outstanding qualified scholarship funding

bonds under section 150(d) or bonds of a qualified volunteer fire

department under section 150(e).

Lines 25a–25b. Complete lines 25a and 25b only if the

organization is a section 501(c)(3), 501(c)(4), or 501(c)(29)

organization. If the organization isn't described in section 501(c)

(3), 501(c)(4), or 501(c)(29), skip lines 25a and 25b and leave

them blank. On line 25b, answer “Yes” if the organization

became aware, prior to filing this return, that it engaged in an

excess benefit transaction with a disqualified person in a

prior year, and if the transaction hasn’t been reported on any of

the organization’s prior Forms 990 or 990-EZ.

An excess benefit transaction can have serious

implications for the disqualified person that entered

into the transaction with the organization, any

organization managers that knowingly approved of the

transaction, and the organization itself. A section 501(c)(3),

501(c)(4), or 501(c)(29) organization that becomes aware that it

may have engaged in an excess benefit transaction should

obtain competent advice regarding section 4958, pursue

correction of any excess benefit, and take other appropriate

steps to protect its interests with regard to such transaction and

the potential impact it could have on the organization's continued

exempt status. See

Appendix G, later, for a discussion of section

4958; Schedule L (Form 990), Part I; and Form 4720, Schedule I,

regarding reporting of excess benefit transactions.

Lines 26–28. Lines 26 through 28 ask questions about loans

and other receivables and payables between the organization

and certain interested persons, and certain direct and indirect

business transactions between the organization and governance

and management officials of the organization or their associated

businesses or

family members. All organizations must answer

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these questions. The organization should review carefully the

instructions for Schedule L (Form 990), Parts II–IV, before

answering these questions and completing Schedule L (Form

990).

Line 29. The organization is required to answer “Yes” on line 29

if it received during the year more than $25,000 in fair market

value (FMV) of donations, gifts, grants, or other contributions

of property other than cash, regardless of the manner received

(such as for use in a charity auction). Don't include

contributions of services or use of facilities.

Line 30. The organization is required to answer “Yes” on line 30

if during the year it received as a donation, gift, grant, or other

contribution:

•

Any work of art, historical treasure, historical artifact,

scientific specimen, archaeological artifact, or similar asset,

including a fractional interest, regardless of amount or whether

the organization maintains collections of such items; or

•

Any qualified conservation contributions regardless of

whether the contributor claimed a charitable contribution

deduction for such contribution.

See the instructions for Schedule M (Form 990), Noncash

Contributions, for definitions of these terms.

Lines 31–32. The organization must answer “Yes” if it

liquidated, terminated, dissolved, ceased operations, or

engaged in a

significant disposition of net assets during the

year. See the instructions for Schedule N (Form 990) for

definitions and explanations of these terms and transactions or

events, and a description of articles of dissolution and other

information that must be filed with Form 990.

Note that a significant disposition of net assets may result

from either an expansion or contraction of operations.

Organizations that answer “Yes” on either of these questions

must also check the box in Part I, line 2, and complete

Schedule N (Form 990), Part I or Part II.

Lines 33–34. The organization is required to report on

Schedule R (Form 990) certain information regarding ownership

or control of, and transactions with, its disregarded entities and

tax-exempt and taxable

related organizations. An organization

that answers “Yes” on line 33 or 34 must enter its disregarded

entities and related organizations on Schedule R (Form 990) and

provide specified information regarding such organizations.

Report disregarded entities on Schedule R (Form 990), Part I;

related tax-exempt organizations on Part II; related organizations

taxable as partnerships on Part III; and any related organizations

taxable as C or S corporations or trusts on Part IV.

Lines 35a–35b. If an organization was a controlled entity of

the filing organization under section 512(b)(13) during the

tax

year, the filing organization must answer “Yes” on line 35a. It

must answer “Yes” on line 35b and complete Schedule R (Form

990), Part V, line 2, if it either (1) received or accrued from its

controlled entity any interest, annuities, royalties, or rent,

regardless of amount, during the tax year; or (2) engaged in

another type of transaction (see Schedule R (Form 990) for a list

of transactions) with the controlled entity, if the amounts involved

during the tax year for that type of transaction exceeded

$50,000. See the

Glossary and the Instructions for Schedule R

(Form 990).

Controlled entities are a subset of related organizations.

Answer “No” to line 35a if the organization had no related

organizations during the tax year. If the answer to line 35a is

“No,” leave line 35b blank.

Line 36. Complete line 36 only if the organization is a section

501(c)(3) organization and engaged in a transaction over

$50,000 during the

tax year with a related organization that

was tax exempt under a section other than section 501(c)(3). All

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other organizations leave this line blank and go to line 37. See

the Instructions for Schedule R (Form 990) for more information

on what needs to be reported on Schedule R (Form 990), Part V,

line 2.

Line 37. Answer “Yes” if, at any time during the year, the

organization conducted more than 5% of its activities, measured

by total gross revenue

for the tax year or total assets of the

organization at the end of its tax year, whichever is greater,

through an unrelated organization that is treated as a

partnership for federal income tax purposes, and in which the

organization was a partner or member at any time during the tax

year. The 5% test is applied on a partnership-by-partnership

basis, although direct ownership by the organization and indirect

ownership through disregarded entities or tiered entities treated

as partnerships are aggregated for this purpose. The

organization need not report on Schedule R (Form 990), Part VI,

either (1) the conduct of activities through an organization

treated as a taxable or tax-exempt corporation for federal income

tax purposes, or (2) unrelated partnerships that meet both of the

following conditions.

•

95% or more of the filing organization's gross revenue from

the partnership for the partnership's tax year ending with or

within the organization's tax year is described in sections 512(b)

(1), 512(b)(2), 512(b)(3), and 512(b)(5), such as interest,

dividends, royalties, rents, and capital gains (including unrelated

debt-financed income).

•

The primary purpose of the filing organization's investment in

the partnership is the production of income or appreciation of

property and not the conduct of a section 501(c)(3) charitable

activity such as program-related investing.

Line 38. Answer “Yes” if the organization completed

Schedule O (Form 990).

Schedule O (Form 990) must be completed and filed by

all organizations that file Form 990. All filers must

provide narrative responses to certain questions (for

example, Part VI, lines 11b and 19) on Schedule O (Form 990).

Certain filers must provide narrative responses to other

questions (for example, Part III, line 4d; Part V, line 3b; Part VI,

lines 2–7b, 9, 12c, and 15a–b, for “Yes” responses; Part VI, lines

8a–b and 10b, for “No” responses; and Part XII, line 3b, for a

“No” response). All filers can supplement their answers to other

Form 990 questions on Schedule O (Form 990).

Part V. Statements Regarding Other

IRS Filings and Tax Compliance

Check the box in the heading of Part V if Schedule O (Form 990)

contains any information pertaining to this part.

See the Glossary for definitions of terms used in the

questions in this section.

Some questions in this part pertain to other IRS forms.

Forms are available by downloading from the IRS

website at IRS.gov/OrderForms. Also see Appendix H.

Forms and Publications To File or Use.

Line 1a. The organization must use Form 1096, Annual

Summary and Transmittal of U.S. Information Returns, to

transmit to the IRS paper Forms 1099, 1098, 5498, and W-2G,

which are information returns reporting certain amounts paid or

received by the organization. Report all such returns filed for the

calendar year ending with or within the organization's

tax year. If

the organization transmits any of these forms electronically, add

this number to the total reported. Examples of payments

requiring Form 1099 reporting include certain payments to

independent contractors for services rendered. Report on this

line Forms 1099, 1098, 5498, and W-2G filed by reporting

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agents of the filing organization, including common paymasters

and payroll agents, for the calendar year ending with or within

the organization's tax year. Enter -0- if the organization didn't file

any such forms for the calendar year ending with or within its tax

year, or if the organization is filing for a short year and no

calendar year ended within its tax year.

Line 1b. Form W-2G pertains to certain gambling winnings.

Line 1c. For more information on backup withholding for

missing or incorrect names or taxpayer identification numbers,

see Pub. 1281, Backup Withholding for Missing and Incorrect

Name/TIN(s). If backup withholding rules didn't apply to the

organization because it didn't make a reportable payment to a

vendor or provide reportable gaming (gambling) winnings to a

prize winner, then leave line 1c blank.

Line 2a. Include on this line the number of the organization's

employees (not the number of Forms W-2) reported on a Form

W-3, Transmittal of Wage and Tax Statements, by both the filing

organization and reporting agents of the filing organization,

including common paymasters and payroll agents, for the

calendar year ending with or within the filing organization's

tax

year. Enter -0- if the organization didn't have any employees

during the calendar year ending with or within its tax year, or if

the organization is filing for a short year and no calendar year

ended within its tax year.

Line 2b. If the organization reported at least one employee on

line 2a, answer whether the organization or reporting agents of

the organization filed all required federal employment tax returns

(which include Form 940, Employer's Annual Federal

Unemployment (FUTA) Tax Return; and Form 941, Employer's

QUARTERLY Federal Tax Return) relating to such employees.

For more information, see the discussion of employment taxes in

Pub. 557. The organization may leave line 2b blank if it didn't

report any employees on line 2a.

Line 3a. Check “Yes” on line 3a if the organization's total gross

income from all of its

unrelated trades or businesses is

$1,000 or more for the tax year. See Pub. 598, Tax on Unrelated

Business Income of Exempt Organizations, for a description of

unrelated business income and the Form 990-T filing

requirements for organizations having such income.

Neither Form 990-T nor Form 990 is a substitute for the

other. Report on Form 990 items of income and expense

that are also required to be reported on Form 990-T

when the organization is required to file both forms.

Line 3b. Answer “Yes” if the organization checked “Yes” on

line 3a and filed Form 990-T by the time this Form 990 is filed.

Check “No” if the organization answered “Yes” on line 3a but

hasn’t filed Form 990-T by the time this Form 990 is filed, even if

the organization has applied for an extension to file Form 990-T.

If “No” on line 3b, provide an explanation on Schedule O (Form

990).

All tax-exempt organizations must pay estimated taxes

for their unrelated business income if they expect their

tax liability to be $500 or more.

Line 4a. Answer “Yes” if either (1) or (2) below applies.

1. At any time during the calendar year ending with or within

the organization's tax year, the organization had an interest in,

or signature or other authority over, a financial account

in a

foreign country (such as a bank account, securities account, or

other financial account); and

a. The combined value of all such accounts was more than

$10,000 at any time during the calendar year; and

b. The accounts weren't with a U.S. military banking facility

operated by a U.S. financial institution.

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2. The organization owns more than 50% of the stock in any

corporation that would answer “Yes” to item 1 above.

If “Yes,” electronically file FinCEN Form 114, Report of Foreign

Bank and Financial Accounts (FBAR), with the Department of

the Treasury using FinCEN's BSA E-Filing System. Because

FinCEN Form 114 isn't a tax form, don't file it with Form 990.

See FINCEN.gov for more information.

Line 4b. Enter the name of each foreign country in which a

foreign account described on line 4a is located. Use Schedule O

(Form 990) if more space is needed.

Line 5. Answer “Yes” on line 5a if the organization was party to a

prohibited tax shelter transaction as described in section

4965(e) at any time during the organization's

tax year. A

prohibited tax shelter transaction is any listed transaction, within

the meaning of section 6707A(c)(2), and any prohibited

reportable transaction. A prohibited reportable transaction is a

confidential transaction within the meaning of Regulations

section 1.6011-4(b)(3), and a transaction with contractual

protection within the meaning of Regulations section 1.6011-4(b)

(4). For more information on prohibited tax shelter transactions,

go to

IRS.gov.

An organization that files Form 990 (other than a section 527

political organization) and that is a party to a prohibited tax

shelter transaction must file Form 8886-T, Disclosure by

Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction,

and may also have to file Form 4720, Return of Certain Excise

Taxes Under Chapters 41 and 42 of the Internal Revenue Code,

and pay an excise tax imposed by section 4965.

For more

information, see the instructions for Forms 8886-T and 4720.

Line 6. Answer “Yes” on line 6a only if the organization has

annual gross receipts that are normally greater than $100,000

and if it solicited contributions not deductible under section 170

during the tax year.

Any fundraising solicitation (including solicitation of member

dues) by or on behalf of any section 501(c) or 527 organization

that isn't eligible to receive

contributions deductible as

charitable contributions for federal income tax purposes must

include an explicit statement that contributions or gifts to it aren't

deductible as charitable contributions. The statement must be in

an easily recognizable format whether the solicitation is made in

written or printed form, by television or radio, or by telephone.

Failure to disclose that contributions aren't deductible could

result in a penalty of $1,000 for each day on which a failure

occurs. The maximum penalty for failures by any organization,

during any calendar year, shall not exceed $10,000. See section

6710 for details. In cases where the failure to make the

disclosure is due to intentional disregard of the law, more severe

penalties

apply. No penalty will be imposed if the failure is due to

reasonable cause.

All organizations that qualify under section 170(c) to receive

contributions that are deductible as charitable contributions for

federal income tax purposes (such as domestic section 501(c)

(3) organizations other than organizations that test for public

safety) should answer “No” on line 6a.

Line 7. Line 7 is directed only to organizations that can receive

deductible charitable contributions under section 170(c). See

Pub. 526, Charitable Contributions, for a description of such

organizations. All other organizations should leave lines 7a

through 7h blank and go to line 8.

Lines 7a and 7b. If a donor makes a payment in excess of

$75 partly as a contribution and partly in consideration for goods

or services provided by the organization, the organization must

generally notify the donor of the value of goods and services

provided.

Example.

A donor gives a charity $100 in consideration for a

concert ticket valued at $40 (a quid pro quo contribution). In

this example, $60 would be deductible. Because the donor's

payment exceeds $75, the organization must furnish a

disclosure statement even though the taxpayer's deductible

amount doesn't exceed $75. Separate payments of $75 or less

made at different times of the year for separate fundraising

events won't be aggregated for purposes of the $75 threshold.

See section 6113 and Notice 88-120, 1988-2 C.B. 454.

Lines 7c and 7d. If the organization is required to file Form

8282, Donee Information Return, to report information to the IRS

and to donors about dispositions of certain donated property

made within 3 years after the donor contributed the property, it

must answer “Yes” and indicate the number of Forms 8282 filed.

Lines 7e and 7f. If, in connection with a transfer to or for the

use of the organization, the organization directly or indirectly

pays premiums on any personal benefit contract,

or there is an

understanding or expectation that any person will directly or

indirectly pay such premiums, the organization must report on

Form 8870, Information Return for Transfers Associated With

Certain Personal Benefit Contracts, the premiums it paid, and

the premiums paid by others but treated as paid by the

organization. The organization must report and pay an excise

tax, equal to premiums paid, on Form 4720. A personal benefit

contract is generally any life insurance, annuity, or endowment

contract that benefits, directly or indirectly, the transferor, a

member of the transferor's family, or any other person

designated by the transferor (other than an organization

described in section 170(c)).

Line 7g. Form 8899, Notice of Income From Donated

Intellectual Property, must be filed by certain organizations that

received a charitable gift of qualified intellectual property that

produces net income. The organization should check “Yes” if it

provided all required Forms 8899 for the year for net income

produced by donated qualified intellectual property.

Qualified

intellectual property is any patent, copyright (other than certain

self-created copyrights), trademark, trade name, trade secret,

know-how, software (other than certain “canned” or

“off-the-shelf” software or self-created software), or similar

property, or applications or registrations of such property. If the

organization didn't receive a contribution of qualified intellectual

property, leave line 7g blank.

Line 7h. A donor of (1) a motor vehicle for use on public

roads, (2) a boat, or (3) an airplane can't claim a charitable

contribution deduction in excess of $500 unless the donee

organization provides the donor with a Form 1098-C,

Contributions of Motor Vehicles, Boats, and Airplanes, for the

donation (or a written acknowledgment

with the same

information). See the instructions for Form 1098-C for more

information. If the organization didn't receive a contribution of a

car, boat, airplane, or other vehicle, leave line 7h blank.

Line 8. A sponsoring organization of a donor advised fund

must answer “Yes” if any one of its donor advised funds had

excess business holdings at any time during the organization's

tax year. All other organizations should leave this line blank and

go to line 9. If “Yes,” see the instructions for Schedule C of Form

4720 to determine whether the organization is subject to the

excess business holdings tax under section 4943 and is required

to file Form 4720.

For purposes of the excise tax on excess business holdings

under section 4943, a donor advised fund is treated as a private

foundation.

Line 9. Line 9 is required to be completed by sponsoring

organizations maintaining a donor advised fund. All other

organizations can leave this line blank and go to line 10.

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Line 9a. Answer “Yes” if the organization made any taxable

distributions under section 4966 during the organization's tax

year. If “Yes,” complete and file Form 4720, Schedule K, to

calculate and pay the tax.

Under section 4966, a taxable distribution includes a

distribution from a donor advised fund to an individual. A

taxable distribution also includes a distribution from a donor

advised fund to an estate, partnership, association, company, or

corporation unless:

•

The distribution is for a charitable purpose (for example, a

purpose described in section 170(c)(2)(B)), and

•

The organization exercises expenditure responsibility for the

distribution.

The above doesn't apply to distributions to any organization

described in section 170(b)(1)(A) (other than a disqualified

supporting organization, defined in section 4966(d)(4)), to the

sponsoring organization of such donor advised fund,

or to any

other donor advised fund.

Line 9b. Answer “Yes” if the organization made a distribution

from a donor advised fund to a donor, donor advisor, or

related person during the organization's

tax year. For purposes

of this question, a related person is any family member of the

donor or donor advisor and any 35% controlled entity (as

defined in section 4958(f)) of the donor or donor advisor. If “Yes,”

complete and file Form 4720 , Schedule L (Form 990).

If an organization makes a distribution from a

donor advised fund resulting from the advice of a

donor, donor advisor, family member, or 35%

controlled entity of any of these persons, which

distribution directly or indirectly provides a more than

incidental benefit to one of such persons, section 4967

imposes a tax on (1) the person upon whose advice the

distribution was made, (2) the beneficiary of the

distribution, and (3) the fund manager for knowingly

agreeing to make the distribution. The persons liable for

the section 4967 tax must file Form 4720 to pay the tax. No

section 4967 tax will be imposed on a distribution if a tax

has been imposed for the distribution under section 4958.

If an organization makes a distribution from a donor

advised fund to a donor, donor advisor, family member, or

35% controlled entity of these persons, then the

transaction might be a section 4958 transaction. Such

transactions include any grant, loan, compensation, or

other similar payment to these persons, as well as any

other payment resulting in excess benefit.

Line 10. Answer lines 10a and 10b only if the organization is

exempt under section 501(c)(7).

A section 501(c)(7) organization isn't exempt from

income tax if any written policy statement, including the

governing instrument and bylaws, allows discrimination

on the basis of race, color, or religion.

However, section 501(i) allows social clubs to retain their

exemption under section 501(c)(7) even though their

membership is limited (in writing) to members of a particular

religion if the social club:

1. Is an auxiliary of a fraternal beneficiary society exempt

under section 501(c)(8); and

2. Limits its membership to the members of a particular

religion, or the membership limitation is:

a. A good-faith attempt to further the teachings or principles

of that religion, and

b. Not intended to exclude individuals of a particular race or

color.

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Line 10a.

Enter the amount of initiation fees, capital

contributions, and unusual amounts of income included in Part

VIII. Statement of Revenue, line 12, Total revenue, but not

included in the definition of gross receipts for section 501(c)(7)

exemption purposes as discussed in Appendix C. However, if the

organization is a college fraternity or sorority that charges

membership initiation fees but not annual dues, don't include

such initiation fees.

Line 10b. Enter the amount of gross receipts included in

Part VIII.

Statement of Revenue, line 12, Total Revenue, derived

from the general public for use of the organization's facilities, that

is, from persons other than members or their spouses,

dependents, or guests.

Include the amount entered on line 10b of Form 990 on

the club's Form 990-T if required to be filed. Investment

income earned by a section 501(c)(7) organization isn't

tax-exempt income unless set aside for the following purposes:

religious, charitable, scientific, literary, educational, or prevention

of cruelty to children or animals.

If the combined amount of an organization's gross investment

income, and other gross income from unrelated trades or

businesses, is $1,000 or more for the tax year, the organization

must report the investment income, and other unrelated

business income, on Form 990-T.

Line 11. Answer lines 11a and 11b only if the organization is

exempt under section 501(c)(12).

One of the requirements that an organization must meet to

qualify under section 501(c)(12) is that at least 85% of its gross

income consists of amounts collected from members for the sole

purpose of meeting losses and expenses. For purposes of

section 501(c)(12), the term “gross income” means

gross

receipts without reduction for any cost of goods sold.

Member income for purposes of this 85% Member Income

Test is income derived directly from the members to pay for

services that form the basis for tax exemption under section

501(c)(12), and includes payments for purchases of water,

electricity, and telephone service. Member income doesn't

include interest income, gains from asset or security sales, or

dividends from another cooperative (unless that cooperative is

also a member).

Members are those individuals or entities that have the right

to elect the governing board of the organization, are involved in

the operations of the organization, and receive a share of its

excess operating revenues.

When calculating the member income percentage to

determine whether an organization meets the 85% Member

Income Test, the organization may exclude specific sources of

income from both the numerator and the denominator of the

fraction. For example, if an organization is a corporation and it

receives an amount that qualifies as a contribution to capital

under section 118, then that amount isn't included in either the

numerator or the denominator because it isn't considered to be

income for tax purposes. However, the payment must meet the

following conditions (see Rev. Rul. 93-16, 1993-1 C.B. 26) to

qualify as a contribution to capital.

•

It must become a permanent part of the organization’s

working capital.

•

It must not be compensation for specific quantifiable services.

•

It must be bargained for.

•

It must benefit the organization commensurately with its value.

•

It must ordinarily be used in or contribute to the production of

additional income.

Gross income for mutual or cooperative electric companies is

figured by excluding any income received or accrued from the

following.

1. Qualified pole rentals.

TIP

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2. Any provision or sale of electric energy transmission

services or ancillary services if the services are provided on a

nondiscriminatory, open-access basis under an open-access

transmission tariff; approved or accepted by the Federal Energy

Regulatory Commission (FERC) or under an independent

transmission provider agreement approved or accepted by

FERC (other than income received or accrued directly or

indirectly from a member).

3. The provision or sale of electric energy distribution

services or ancillary services, if the services are provided on a

nondiscriminatory, open-access basis to distribute electric

energy not owned by the mutual or electric cooperative

company:

a. To end-users who are served by distribution facilities not

owned by the company or any of its members (other than income

received or accrued directly or indirectly from a member), or

b. Generated by a generation facility not owned or leased by

the company or any of its members and which is directly

connected to distribution facilities owned by such company or

any of its members (other than income received or accrued

directly or indirectly from a member).

4. From any nuclear decommissioning transaction.

5. From any asset exchange or conversion transaction.

For a mutual or cooperative telephone company, gross

income doesn't include amounts received or accrued either from

another telephone company for completing long distance calls to

or from or between the telephone company's members, from

qualified pole rentals, from the sale of display listings in a

directory furnished to the telephone company's members, or

from prepayment of a loan under section 306A, section 306B, or

section 311 of the Rural Electrification Act of 1936 (as in effect

on January 1, 1987).

If the calculated member income percentage for a

section 501(c)(12) organization is less than 85% for the

tax year, then the organization fails to qualify for

tax-exempt status for that year, and it must file Form 1120, U.S.

Corporation Income Tax Return, in lieu of Form 990 or 990-EZ for

the year. However, failing the 85% Member Income Test in one

year doesn't cause permanent loss of tax-exempt status under

section 501(c)(12). So long as the organization's member

income percentage is equal to or greater than 85% in any

subsequent tax year, the organization may file Form 990 or

990-EZ for that year, even if Form 1120 was filed in a prior year.

Line 12. All organizations that aren't section 4947(a)(1) trusts

are to leave line 12 blank.

If a section 4947(a)(1) nonexempt charitable trust has no

taxable income under subtitle A, its filing of Form 990 can be

used to meet its income tax return filing requirement under

section 6012. Such a trust must, if it answers “Yes” on line 12a,

report its tax-exempt interest received or accrued (if reporting

under the accrual method) during the

tax year on line 12b.

Section 4947(a)(1) trusts must complete all sections of the

Form 990 and schedules that section 501(c)(3) organizations

must complete. All references to a section 501(c)(3) organization

on the Form 990, schedules, and instructions shall include a

section 4947(a)(1) trust (for instance, such a trust must complete

Schedule A (Form 990), unless expressly excepted).

Line 13. Answer lines 13a, 13b, and 13c only if the organization

has received a loan or grant under the Department of Health and

Human Services CO-OP program.

TIP

Line 13a.

If the organization is licensed to issue qualified

health plans in more than one state, check “Yes.” If the

organization is licensed to issue qualified health plans in only

one state, check “No.” In either case, report on Schedule O

(Form 990) each state in which the organization is licensed to

issue qualified health plans, the dollar amount of reserves each

state requires the organization to maintain, and the dollar

amount of reserves the organization maintains and reports to

each state.

Line 13b. Report the highest dollar amount of reserves the

organization is required to maintain by any of the states in which

the organization is licensed to issue qualified health plans.

Line 13c. Report the highest dollar amount of reserves the

organization maintains on hand and reports to a state in which

the organization is licensed to issue qualified health plans.

Line 14a. Answer “Yes” on line 14a if the organization

received any payments during the year for indoor tanning

services. “Indoor tanning services”

are services employing any

electronic product designed to incorporate one or more

ultraviolet lamps and intended for the irradiation of an individual

by ultraviolet radiation, with wavelengths in air between 200 and

400 nanometers, to induce skin tanning.

Line 14b. If an organization received a payment for services

for indoor tanning services during the year, it must collect from

the recipient of the services a tax equal to 10% of the amount

paid for such service, whether paid by insurance or otherwise,

and remit such tax quarterly to the IRS by filing Form 720,

Quarterly Federal Excise Tax Return. If the organization filed

Form 720 during the year, it should check “Yes” on line 14b. If it

answers “No” on line 14b, it should explain on Schedule O (Form

990) why it didn't file Form 720.

Line 15. See the instructions for Form 4720, Schedule N, to

determine if you paid to any covered employee more than $1

million in remuneration or paid an excess parachute payment

during the year. Remuneration paid to a covered employee

includes any remuneration paid by a related organization.

Line 16. Line 16 applies to private colleges and universities

subject to the excise tax on net investment income under section

4968.

All other organizations, including state colleges and

universities described in the first sentence of section 511(a)(2)

(B), aren’t subject to this tax, and therefore check the “No” box

on line 16, and go to Part VI. A private college or university will

be subject to the excise tax on net investment income under

section 4968

only if four threshold tests are met.

1. The organization must be an eligible educational

institution as defined in section 25A(f)(2). Section 25A(f)(2)

defines “eligible educational institution” as an institution that is

described in section 481 of the Higher Education Act of 1965 (20

U.S.C. 1088), as in effect on August 5, 1997, and is eligible to

participate in a program under title IV of such Act (20 USCS

sections 1070 et seq.).

2. The organization must have had at least 500

tuition-paying students, based upon a daily average student

count, during the preceding tax year.

3. More than 50% of those students must have been located

in the United States.

4. The aggregate FMV, at the end of the preceding tax year,

of the assets not used directly in carrying out the organization’s

exempt purpose, held by the organization and related

organizations, must be at least $500,000 per student.

Use the worksheet below to determine whether the

organization meets the last three threshold tests above. Save

this worksheet with the organization’s records.

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Threshold Tests for Section 4968

1. Enter the daily average number of FTE tuition-paying students in all locations. If fewer than 500, check “No” on line 16. If 500 or more, go to line 2.

2. Enter the daily average number of FTE tuition-paying students in the United States.

3. Divide line 2 by line 1. If 50% or less, check “No” on line 16. If greater than 50%, go to line 4.

4. Enter the FMV of assets held by the organization but not used directly in carrying out the

organization’s exempt purpose.

5. Enter the FMV of assets held by one or more related organizations. $

6. Total. Add lines 4 and 5. $

7. Divide line 6 by the daily average number of FTE students. If less than $500,000, check “No” on line 16. If $500,000 or more, check “Yes” on

line 16.

Worksheet line 1. To calculate the number of tuition-paying

students during the preceding tax year (including for purposes of

determining the number of students at a particular location),

enter the daily average number of full-time equivalent (FTE)

tuition-paying students attending the institution, taking part-time

tuition-paying students into account on a full-time student

equivalent basis.

If worksheet line 1 is fewer than 500, the organization is not

subject to the section 4968 excise tax on net investment income.

The organization should answer “No” on line 16. If worksheet

line 1 is 500 or more, continue to line 2.

Worksheet line 2. Enter the number of FTE tuition-paying

students included on line 1 who were located in the United

States during the preceding tax year and enter it on line 2.

Worksheet line 3. Divide line 2 by line 1. If 50% or less, the

organization is not subject to the section 4968 excise tax and the

organization should answer “No” on line 16. If greater than 50%,

continue to line 4.

Worksheet line 4. Calculate the FMV of the organization’s

assets not used directly in carrying out the organization’s exempt

purpose as of the end of the preceding tax year. To determine

which assets are used directly in carrying out the organization’s

exempt purpose, under these instructions, follow the principles of

section 4942(e)(1)(A) and Regulations section 53.4942(a)-2(c)

(3). To determine the FMV of the assets, use any reasonable

method as long as such method is consistently used. Under

these instructions, the principles of Regulations section

53.4942(a)-2(c)(4) will be considered to provide a reasonable

method.

Assets held for the production of income or for

investment aren't considered to be used directly for

charitable functions even though the income from the

assets is used for charitable functions. It is a factual question

whether an asset is held for the production of income or for

investment rather than used directly by the organization for

charitable purposes. For example, an office building used to

provide offices for employees engaged in managing endowment

funds for the organization isn't considered an asset used for

charitable purposes.

Worksheet line 5. Calculate the FMV of the assets of related

organizations (as defined below) using the FMV of assets as of

the end of the preceding tax year that ends with or within the

preceding tax year of the organization.

Section 4968 defines “related organization” to include only:

•

Organizations that control or are controlled by the educational

institution,

•

Organizations that are controlled by one or more of the same

persons who control the educational institution,

•

Supported organizations (as defined in section 509(f)(3)), and

•

Supporting organizations described in section 509(a)(3) that

support the educational institution during the tax year.

CAUTION

When calculating the

FMV of such assets of a related

organization, exclude (1) assets of any related organization to

the extent that such assets are taken into account with respect to

another educational institution; and (2) unless the related

organization is controlled by the educational institution, or unless

the related organization is a supporting organization of the

educational institution, omit assets that are not intended, or are

not available, for the use or benefit of the educational institution.

Worksheet line 6. Add lines 4 and 5.

Worksheet line 7. Divide line 6 by the daily average number

of FTE students.

If line 7 is less than $500,000, the organization is not subject

to the section 4968 excise tax on net investment income and the

organization should answer “No” on line 16. If line 7 is $500,000

or more, the organization is subject to the section 4968 excise

tax on net investment income and the organization should

answer “Yes” on line 16.

Line 17. Did the trust, or any disqualified or other person

engage in any activities that would result in the imposition of an

excise tax under section 4951, 4952, or 4953? See the

Instructions for Form 6069. If “Yes,” complete Form 6069.

Part VI. Governance, Management,

and Disclosure

Check the box in the heading of Part VI if Schedule O (Form 990)

contains any information pertaining to this part. All organizations

must complete Part VI. Use Schedule O (Form 990) to provide

required supplemental information as described in this part, and

to provide any additional information that the organization

considers relevant to this part.

Part VI requests information regarding an organization's

governing body and management, governance policies, and

disclosure practices. Although federal tax law generally doesn't

mandate particular management structures, operational policies,

or administrative practices, every organization is required to

answer each question in Part VI. For example, all organizations

must answer lines 11a and 11b, which ask about the

organization's process, if any, it uses to review Form 990, even

though the governing body isn't required by federal tax law to

review Form 990.

Even though the information on policies and procedures

requested in Section B generally isn't required under the Code,

the IRS considers such policies and procedures to generally

improve tax compliance. The absence of appropriate policies

and procedures can lead to opportunities for

excess benefit

transactions, inurement, operation for nonexempt purposes, or

other activities inconsistent with exempt status. Whether a

particular policy, procedure, or practice should be adopted by an

organization depends on the organization's size, type, and

culture. Accordingly, it is important that each organization

consider the governance policies and practices that are most

appropriate for that organization in assuring sound operations

and compliance with tax law. For more governance information

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relating to charities, go to IRS.gov/Charities and click on

Lifecycle of an Exempt Organization.

Section A. Governing Body and Management

Line 1a. The governing body is the group of one or more

persons authorized under state law to make governance

decisions on behalf of the organization and its shareholders or

members, if applicable. The governing body is, generally

speaking, the board of

directors (sometimes referred to as

“board of

trustees”) of a corporation or association, or the

trustee or trustees of a trust (sometimes referred to as the “board

of trustees”).

Enter the number, as of the end of the organization's tax year,

members of the governing body of the organization with

power to vote on all matters that come before the governing body

(other than when a conflict of interest disqualifies the member

from voting). If members of the governing body don't all have the

same voting rights, explain material differences on Schedule O

(Form 990).

If the organization's governing body or governing documents

delegated authority to act on its behalf to an executive

committee or similar committee with broad authority to act on

behalf of the governing body, and the committee held such

authority at any time during the organization's

tax year, describe

on Schedule O (Form 990) the composition of the committee,

whether any of the committee's members aren't on the governing

body, and the scope of the committee's authority. The

organization need not describe on Schedule O (Form 990)

delegations of authority that are limited in scope to particular

areas or matters, such as delegations to an audit committee,

investment committee, or compensation committee of the

governing body.

Example. A voluntary employees' beneficiary association

(VEBA) is a trust under state law. Bank B is the sole trustee of

the trust. In completing line 1a, the VEBA will report one voting

member of the governing body.

Line 1b. Enter the number of independent voting members

of the governing body as of the end of the organization's tax

year. A member of the governing body is considered

“independent” only if all four of the following circumstances

applied at all times during the organization's tax year.

1. The member wasn't compensated as an officer or other

employee of the organization or of a related organization (see

the Instructions for Schedule R (Form 990)) except as provided

in the religious exception discussed below. Nor was the member

compensated by an unrelated organization or individual for

services provided to the filing organization or to a related

organization, if such compensation is required to be reported in

Part VII, Section A.

2. The member didn't receive total compensation

exceeding $10,000 during the organization's tax year (including

a short year, regardless of whether such compensation is

reported in Part VII) from the organization and related

organizations as an

independent contractor, other than

reasonable compensation for services provided in the

capacity as a member of the governing body. For example, a

person who receives reasonable expense reimbursements and

reasonable compensation as a director of the organization

doesn't cease to be independent merely because she or he also

receives payments of $7,500 from the organization for other

arrangements.

3. Neither the member, nor any family member of the

member, was involved in a transaction with the organization

(whether directly or indirectly through affiliation with another

organization) that is required to be reported on Schedule L (Form

990) for the organization's tax year.

Neither the member, nor any family member of the

member, was involved in a transaction with a taxable or

tax-exempt related organization (whether directly or indirectly

through affiliation with another organization) of a type and

amount that would be reportable on Schedule L (Form 990) if

required to be filed by the related organization.

Note. The independence standard for purposes of Part VI isn't

the same as the “absence of conflict of interest” standard for

purposes of the rebuttable presumption under Regulations

section 53.4958-6, which focuses on conflicts with respect to a

particular transaction.

A member of the governing body isn't considered to lack

independence merely because of the following circumstances.

1. The member is a donor to the organization, regardless of

the amount of the contribution.

2. Religious exception: The member has taken a bona fide

vow of poverty and either (a) receives compensation as an

agent of a religious order or a section 501(d) religious or

apostolic organization, but only under circumstances in which

the member doesn't receive taxable income (see Rev. Rul.

77-290, 1977-2 C.B. 26; and Rev. Rul. 80-332, 1980-2 C.B. 34);

or (b) belongs to a religious order that receives sponsorship or

payments from the organization or a related organization that

don't constitute taxable income to the member.

3. The member receives financial benefits from the

organization solely in the capacity of being a member of the

charitable or other class served by the organization in the

exercise of its exempt function, such as being a member of a

section 501(c)(6) organization, so long as the financial benefits

comply with the organization's terms of membership.

Example 1. B is a voting member of the organization's board

of directors. B is also a partner with a profits and capital interest

greater than 35% in a law firm, C, that charged $120,000 to the

organization for legal services in a court case. The transaction

between C and the organization must be reported on Schedule L

(Form 990) because it is a transaction between the organization

and an entity of which B is a more-than-35% owner, and

because the payment to C from the organization exceeded

$100,000 (see the instructions for Schedule L (Form 990), Part

IV, regarding both factors). Accordingly, B isn't an independent

member of the governing body because the $120,000 payment

must be reported on Schedule L (Form 990) as an indirect

business transaction with B. If B were an associate attorney (an

employee) rather than a partner with a greater-than-35%

interest, and not an officer, director, trustee, or owner of the law

firm, the transaction wouldn't affect B's status as an independent

member of the organization's governing body.

Example 2. D is a voting member of both the organization's

governing body and the governing body of C, a related

organization. D's child, E, received $40,000 in taxable

compensation as a part-time employee of C. D isn't an

independent member of the governing body, because E received

compensation from C, a related organization to D, and the

compensation was of a type (compensation to a family member

of a member of C's governing body) and amount (over $10,000)

that would be reportable on Schedule L (Form 990) if the related

organization, C, were required to file Schedule L (Form 990).

Example 3. C was Board Chair of X school during the tax

year. X's bylaws designate the following as officer positions:

Board Chair, Secretary, and Treasurer. C set the agenda for

board of directors meetings, officiated board meetings,

coordinated development of board policy and procedure, was an

ex-officio member of all committees of the board, conducted

weekly staff meetings, and performed teacher and staff

evaluations. X compensated C during the tax year for C's

services. This compensation was attributable to C's board and

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committee activities, and to C's non-director activities involving

staff meetings and evaluations. Because X compensated C for

services as an officer/employee, C isn't an independent member

of the governing body. See Rev. Rul. 68-597 and Rev. Rul.

57-246 for a description of the distinction between director

services and officer services.

Example 4. The facts are the same as in Example 3, except

that the Board Chair position wasn't designated as an officer

position under X's bylaws, board resolutions, or state law.

Nevertheless, because X compensated C for non-director

activities involving staff meetings and evaluations during the tax

year, C is deemed to have received compensation as an

employee—not as a governing body member—for those

activities. Therefore, C isn't an independent member of the

governing body.

Example 5. The facts are the same as in Example 3, except

that (1) C conducted only director and committee activities

during the tax year; (2) C didn't conduct staff meetings and

evaluations; and (3) X compensated C a reasonable amount for

C's Board Chair services during the tax year, but didn't provide

any other compensation to C in any other capacity. C's

independence as a Board member isn't compromised by

receiving compensation from X as a Board member (and not as

an officer or employee).

Also see Examples 2 and 3 in the instructions for Part VII,

Section A, line 5, later.

Reasonable effort. The organization need not engage in

more than a reasonable effort to obtain the necessary

information to determine the number of independent voting

members of its governing body and can rely on information

provided by such members. For instance, the organization can

rely on information it obtains in response to a questionnaire sent

annually to each member of the governing body that includes the

member's name and title, blank lines for the member's signature

and signature date, and the pertinent instructions and definitions

for line 1b, to determine whether the member is or isn't

independent.

Line 2. Answer “Yes” if any of the organization's current

officers, directors, trustees, or key employees, as reported in

Part VII, Section A, had a family relationship or business

relationship with another of the organization's current officers,

directors, trustees, or key employees, as reported in Part VII,

Section A, at any time during the organization's tax year. For

each family and business relationship, identify the persons and

describe their relationship on Schedule O (Form 990).

It is

sufficient to enter “family relationship” or “business relationship”

without greater detail.

Business relationship. Business relationships between two

persons include any of the following.

1. One person is employed by the other in a sole

proprietorship or by an organization with which the other is

associated as a trustee, director, officer, or greater-than-35%

owner, even if that organization is tax exempt. However, don't

report a person’s employment by the filing organization as a

business relationship.

2. One person is transacting business with the other (other

than in the ordinary course of either party's business on the

same terms as are generally offered to the public), directly or

indirectly, in one or more contracts of sale, lease, license, loan,

performance of services, or other transaction involving transfers

of cash or property valued in excess of $10,000 in the aggregate

during the organization's tax year. Indirect transactions are

transactions with an organization with which the one person is

associated as a trustee, director, officer, or greater-than-35%

owner. Such transactions don't include charitable contributions

to tax-exempt organizations.

The two persons are each a director, trustee, officer, or

greater-than-10% owner in the same business or investment

entity (but not in the same tax-exempt organization).

Ownership is measured by stock ownership (either voting

power or value, whichever is greater) of a corporation, profits or

capital interest in a partnership or an LLC (whichever is greater),

membership interest in a nonprofit organization, or beneficial

interest in a trust. Ownership includes indirect ownership (for

example, ownership in an entity that has ownership in the entity

in question); there may be ownership through multiple tiers of

entities.

Privileged relationship exception. For purposes of line 2, a

business relationship doesn't include a relationship between an

attorney and client, a medical professional (including

psychologist) and patient, or a priest/clergy and penitent/

communicant.

Example 1. B is an officer of the organization, and C is a

member of the organization's governing body. B is C's sister's

spouse. The organization must report that B and C have a family

relationship.

Example 2. D and E are officers of the organization. D is

also a partner in an accounting firm with 300 partners (with a

/300 interest in the firm's profits and capital) but isn't an officer,

director, or trustee of the accounting firm. D's accounting firm

provides services to E in the ordinary course of the accounting

firm's business, on terms generally offered to the public, and

receives $100,000 in fees during the year. The relationship

between D and E isn't a reportable business relationship, either

because (1) it is in the ordinary course of business on terms

generally offered to the public, or (2) D doesn't hold a

greater-than-35% interest in the accounting firm's profits or

capital

Example 3. F and G are trustees of the organization. F is the

owner and CEO of an automobile dealership. G purchased a

$45,000 car from the dealership during the organization's tax

year in the ordinary course of the dealership's business, on

terms generally offered to the public. The relationship between F

and G isn't a reportable business relationship because the

transaction was in the ordinary course of business on terms

generally offered to the public.

Example 4. H and J are members of the organization's

board of directors. Both are CEOs of publicly traded corporations

and serve on each other's board. The relationship between H

and J is a reportable business relationship because each is a

director or officer in the same business entity.

Example 5. K is an officer of the organization, and L is on its

board of directors. L is a greater-than-35% partner of a law firm

that charged $60,000 during the organization's tax year for legal

services provided to K that were worth $600,000 at the law firm's

ordinary rates. Thus, the ordinary course of business exception

doesn't apply. However, the relationship between K and L isn't a

reportable business relationship because of the privileged

relationship of attorney and client.

Reasonable effort. The organization isn't required to provide

information about a family or business relationship between two

officers, directors, trustees, or key employees if it is unable

to secure the information after making a reasonable effort to

obtain it. An example of a reasonable effort would be for the

organization to distribute a questionnaire annually to each such

person that includes the name and title of each person reporting

information, blank lines for those persons' signatures and

signature dates, and the pertinent instructions and definitions for

line 2.

Line 3. Answer “Yes” if, at any time during the organization's tax

year, the organization used a management company

or other

person (other than persons acting in their capacities as officers,

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directors, trustees, or key employees) to perform any

management duties customarily performed by or under the direct

supervision of officers, directors, trustees, or key

employees. Such management duties include, but aren't limited

to, hiring, firing, and supervising personnel; planning or

executing budgets or financial operations; or supervising exempt

operations or unrelated trades or businesses of the organization.

Management duties don't include administrative services (such

as payroll processing) that don't involve significant managerial

decision making. Management duties also don't include

investment management

unless the filing organization conducts

investment management services for others.

If “Yes,” on Schedule O (Form 990), list the name(s) of the

management company or companies or other person(s)

performing management duties; describe the services they

provided to the organization; list any of the organization’s current

or former officers, directors, trustees, key employees, and

highest compensated employees listed in Part VII, Section A,

who were compensated by the management company or

companies or other person(s) during the calendar year ending

with or within the organization's tax year; and list the amounts of

reportable and other compensation they received from the

management company or companies or other person(s) for

services provided to the filing organization and related

organizations during that year.

Line 4. The organization must report significant changes to its

organizing or enabling document by which it was created

(articles of incorporation, association, or organization; trust

instrument; constitution; or similar document), and to its rules

governing its affairs commonly known as bylaws (or regulations,

operating agreement, or similar document). Report significant

changes that weren't reported on any prior Form 990, and that

were made before the end of the

tax year. Don't report changes

to policies described or established outside of the organizing or

enabling document and bylaws (or similar documents), such as

adoption of, or change to, a policy adopted by resolution of the

governing body that doesn't entail a change to the organizing

document or bylaws.

Examples of significant changes to the organizing or enabling

document or bylaws include changes to:

•

The organization's exempt purposes or mission;

•

The organization’s name (also see the instructions under

Specific Instructions, Item B, earlier);

•

The number, composition, qualifications, authority, or duties of

the governing body's voting members;

•

The number, composition, qualifications, authority, or duties of

the organization's officers or key employees;

•

The role of the stockholders or membership in governance;

•

The distribution of assets upon dissolution;

•

The provisions to amend the organizing or enabling document

or bylaws;

•

The quorum, voting rights, or voting approval requirements of

the governing body members or the organization's stockholders

or membership;

•

The policies or procedures contained within the organizing

documents or bylaws regarding

compensation of officers,

directors, trustees, or key employees, conflicts of interest,

whistleblowers, or document retention and destruction; and

•

The composition or procedures contained within the

organizing document or bylaws of an audit committee.

Example. Organization X has a written conflicts of interest

policy that isn't contained within the organizing document or

bylaws. The policy is changed by board resolution. The policy

change doesn't need to be reported on line 4.

Examples of insignificant changes made to organizing or

enabling documents or bylaws that aren't required to be reported

here include changes to the organization's registered agent with

the state and to the required or permitted number or frequency of

governing body or member meetings.

Describe significant changes on Schedule O (Form 990), but

don't attach a copy of the amendments or amended document to

Form 990 (or recite the entire amended document verbatim),

unless such amended documents reflect a change in the

organization's name. See

Specific Instructions, Item B, earlier,

regarding attachments required in the event of a change in the

organization's name.

An organization must report significant changes to its

organizational documents on Form 990, Part VI, rather

than in a letter to EO Determinations. EO Determinations

no longer issues letters confirming the tax-exempt status of

organizations that report significant changes to their

organizational documents, though it will, on request, issue an

affirmation letter confirming an organization's name change. The

IRS will no longer require a new exemption application from a

domestic section 501(c) organization that undergoes certain

changes of form or place of organization described in Rev. Proc.

2018-15, 2018-9 I.R.B. 379.

Line 5. Answer “Yes” if the organization became aware during

the organization's tax year of a significant diversion of its assets,

whether or not the diversion occurred during the year. If “Yes,”

explain the nature of the diversion, dollar amounts and/or other

property involved, corrective actions taken to address the matter,

and pertinent circumstances on Schedule O (Form 990),

although the person or persons who diverted the assets

shouldn't be identified by name.

A diversion of assets includes any unauthorized conversion or

use of the organization's assets other than for the organization's

authorized purposes, including but not limited to embezzlement

or theft. Report diversions by the organization's

officers,

directors, trustees, employees, volunteers, independent

contractors, grantees (diverting grant funds), or any other

person, even if not associated with the organization other than

by the diversion. A diversion of assets doesn't include an

authorized transfer of assets for

FMV consideration, such as to a

joint venture or for-profit subsidiary in exchange for an interest

in the joint venture or subsidiary. For this purpose, a diversion is

considered significant if the gross value of all diversions (not

taking into account restitution, insurance, or similar recoveries)

discovered during the organization's tax year exceeds the lesser

of (1) 5% of the organization's gross receipts for its tax year, (2)

5% of the organization's total assets as of the end of its tax year,

or (3) $250,000.

Note. A diversion of assets can in some cases be inurement of

the organization's net earnings. In the case of section 501(c)(3),

501(c)(4), and 501(c)(29) organizations, it can also be an

excess benefit transaction taxable under section 4958 and

reportable on Schedule L (Form 990).

Line 6. Answer “Yes” if the organization is organized as a stock

corporation, a joint-stock company, a partnership, a joint

venture, or an LLC. Also answer “Yes” if the organization is

organized as a non-stock, nonprofit, or not-for-profit corporation

or association with members. For purposes of Form 990, Part VI,

member means (without regard to what a person, including a

corporation or other legal entity, is called in the governing

documents) any person who, pursuant to a provision of the

organization's governing documents or applicable state law, has

the right to participate in the organization's governance or to

receive distributions of income or assets from the organization.

Members don't include governing body members. For purposes

of Part VI, a membership organization includes members with

the following kinds of rights.

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1. The members elect the members of the governing body

(but not if the persons on the governing body are the

organization's only members) or their delegates.

2. The members approve significant decisions of the

governing body.

3. The members can receive a share of the organization's

profits or excess dues or a share of the organization's net assets

upon the organization's dissolution.

Describe on Schedule O (Form 990) the classes of members or

stockholders with the rights described above.

Line 7a. Answer “Yes” on line 7a if at any time during the

organization's tax year there were one or more persons (other

than the organization's

governing body itself, acting in such

capacity) that had the right to elect or appoint one or more

members of the organization's governing body, whether

periodically, or as vacancies arise, or otherwise. If “Yes,” describe

on Schedule O (Form 990) the class or classes of such persons

and the nature of their rights.

Line 7b. Answer “Yes” on line 7b if at any time during the

organization's tax year any governance decisions of the

organization were reserved to (or subject to approval by)

members, stockholders, or persons other than the

governing

body, whether or not any such governance decisions were

made during the tax year, such as approval of the governing

body's election or removal of members of the governing body, or

approval of the governing body's decision to dissolve the

organization. If “Yes,” describe on Schedule O (Form 990) the

class or classes of such persons, the decisions that require their

approval, and the nature of their voting rights.

Line 8. Answer “Yes” on lines 8a and 8b if the organization

contemporaneously documented by any means permitted by

state law every meeting held and written action taken during the

organization's tax year by its governing body and committees

with authority to act on behalf of the governing body (which

ordinarily don't include advisory boards). Documentation

permitted by state law can include approved minutes, email, or

similar writings that explain the action taken, when it was taken,

and who made the decision. For this purpose,

contemporaneous

means by the later of (1) the next meeting of the governing body

or committee (such as approving the minutes of the prior

meeting), or (2) 60 days after the date of the meeting or written

action. If the answer to either line 8a or 8b is “No,” explain on

Schedule O (Form 990) the organization's practices or policies, if

any, regarding documentation of meetings and written actions of

its governing body and committees with authority to act on its

behalf. If the organization had no committees, answer “No” to

line 8b.

Line 9. The IRS needs a current mailing address to contact the

organization's officers, directors, trustees, or key employees.

The organization can use its official mailing address stated on

the first page of Form 990 as the mailing address for such

persons. Otherwise, enter on Schedule O (Form 990) the mailing

addresses for such persons who are to be contacted at a

different address. Such information will be available to the public.

Section B. Policies

Answer “Yes” to any question in this section that asks whether

the organization had a particular policy or practice only if the

organization's governing body (or a committee of the governing

body, if the governing body delegated authority to that committee

to adopt the policy) adopted the policy by the end of its

tax year,

and if the policy applied to the organization as a whole. If the

policy applied only on a division-wide or department-wide level,

answer “No.” The organization may explain the scope of such

policy on Schedule O (Form 990).

Line 10a.

Answer “Yes” if the organization had during its tax

year any local chapters, local branches, local lodges, or other

similar local units or affiliates over which the organization had the

legal authority to exercise direct or indirect supervision and

control (whether or not in a

group exemption) and local units

that aren't separate legal entities under state law over which the

organization had such authority. An affiliate or unit is considered

“local” for this purpose if it is responsible for a smaller

geographical area than the filing organization is responsible for.

Thus, a regional organization would be considered local for a

national organization.

Example 1. X is a national organization dedicated to the

reform of K. X has affiliates in 15 states that conduct activities to

carry out the purposes of X at the state level. X has the authority

to approve the annual budget of each affiliate. X must answer

“Yes” on line 10a.

Example 2. Y is a section 170(b)(1)(A)(iii) hospital located in

M City. Y appoints a majority of the board of directors of Z, a

section 509(a)(3) supporting organization that invests funds and

makes grants for the benefit of Y. Although Y controls Z, Z isn't a

local affiliate of Y that would require Y to answer “Yes” on

line 10a.

Line 10b. Written policies and procedures governing the

activities of local chapters, branches, and affiliates to ensure

their operations are consistent with the organization's tax-exempt

purposes are documents used by the organization and its local

units to address the policies, practices, and activities of the local

unit. Such policies and procedures can include policies and

procedures similar to those described in lines 11–16 of this

section, whether separate or included as required provisions in

the chapter's articles of organization or bylaws, a manual

provided to chapters, a constitution, or similar documents. If

“No,” explain on Schedule O (Form 990) how the organization

ensures that the local unit's activities are consistent with the

organization's tax-exempt purposes.

Note. The central organization (parent organization) named in

a group exemption letter is required to have general

supervision or control over its subordinate organizations as a

condition of the group exemption.

Line 11a. Answer “Yes” only if a complete copy of the

organization's final Form 990 (including all required schedules),

as ultimately filed with the IRS, was provided to each person who

was a voting member of the governing body at the time the

Form 990 was provided, whether in paper or electronic form,

before its filing with the IRS. The organization can answer “Yes” if

it emailed all of its governing body members a link to a

password-protected website on which the entire Form 990 can

be viewed, and noted in the email that the Form 990 is available

for review on that site. However, answer “No” if the organization

merely informed its governing body members that a copy of the

Form 990 is available upon request. Answer “No” if the

organization redacted or removed any information from the copy

of its final Form 990 that it provided to its governing body

members before filing the form. For example, answer “No” if the

organization, at the request of a donor, redacted the name and

address of that donor from the copy of its Schedule B (Form

990), that it provided to its governing body members. Under

those circumstances, the organization may explain on

Schedule O (Form 990) why it answered “No” to line 11a.

Line 11b. Describe on Schedule O (Form 990) the process, if

any, by which any of the organization's officers, directors,

trustees, board committee members, or management reviewed

the prepared Form 990, whether before or after it was filed with

the IRS, including specifics about who conducted the review,

when they conducted it, and the extent of any such review. If no

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review was or will be conducted, enter “No review was or will be

conducted.”

Example. The return preparer emails a copy of the final

version of Form 990 to each Board member before it was filed.

However, no Board member undertakes any review of the form

either before or after filing. Because such a copy of the final

version of the form was provided to each voting member of the

organization's governing body before it was filed, the

organization can answer “Yes” even though no review took place.

The organization must describe its Form 990 review process (or

lack thereof) on Schedule O (Form 990).

Line 12a. Answer “Yes” if, as of the end of the organization's tax

year, the organization had a written conflict of interest policy.

A conflict of interest policy defines conflicts of interest, identifies

the classes of individuals within the organization covered by the

policy, facilitates disclosure of information that can help identify

conflicts of interest, and specifies procedures to be followed in

managing conflicts of interest. A conflict of interest arises when a

person in a position of authority over an organization, such as an

officer, director, manager, or key employee can benefit

financially from a decision he or she could make in such

capacity, including indirect benefits such as to family members

or businesses with which the person is closely associated. For

this purpose, a conflict of interest doesn't include questions

involving a person's competing or respective duties to the

organization and to another organization, such as by serving on

the boards of both organizations, that don't involve a material

financial interest of, or benefit to, such person.

Example. B is a member of the governing body of X Charity

and of Y Charity, both of which are section 501(c)(3) public

charities with different charitable purposes. X Charity has taken a

public stand in opposition to a specific legislative proposal. At an

upcoming board meeting, Y Charity will consider whether to

publicly endorse the same specific legislative proposal. While B

may have a conflict of interest in this decision, the conflict

doesn't involve a material financial interest of B's merely as a

result of Y Charity's position on the legislation.

Line 12b. Answer “Yes” if the organization's officers, directors,

trustees, and key employees are required to disclose or

update annually (or more frequently) information regarding their

interests and those of their family members that could give rise

to conflicts of interest, such as a list of family members,

substantial business or investment holdings, and other

transactions or affiliations with businesses and other

organizations and those of family members.

Line 12c. If “Yes,” describe on Schedule O (Form 990) the

organization's practices for monitoring proposed or ongoing

transactions for conflicts of interest and dealing with potential or

actual conflicts, whether discovered before or after the

transaction has occurred. The description should include an

explanation of which persons are covered under the policy, the

level at which determinations of whether a conflict exists are

made, and the level at which actual conflicts are reviewed. Also

explain any restrictions imposed on persons with a conflict, such

as prohibiting them from participating in the

governing body's

deliberations and decisions in the transaction.

Lines 13 and 14. A whistleblower policy encourages staff and

volunteers to come forward with credible information on illegal

practices or violations of adopted policies of the organization,

specifies that the organization will protect the individual from

retaliation, and identifies those staff or board members or

outside parties to whom such information can be reported. A

document retention and destruction policy identifies the record

retention responsibilities of staff, volunteers, board members,

and outsiders for maintaining and documenting the storage and

destruction of the organization's documents and records.

Certain federal or state laws provide protection against

whistleblower retaliation and prohibit destruction of

certain documents. For instance, while the federal

Sarbanes-Oxley legislation generally doesn't pertain to

tax-exempt organizations, it does impose criminal liability on

tax-exempt as well as other organizations for (1) retaliation

against whistleblowers that report federal offenses, and (2)

destruction of records with the intent to obstruct a federal

investigation. See 18 U.S.C. sections 1513(e) and 1519. Also

note that an organization is required to keep books and records

relevant to its tax exemption and its filings with the IRS. Some

states provide additional protection for whistleblowers.

Line 15. Answer “Yes” on line 15a if, during the tax year, the

organization (not a related organization or other third party)

used a process for determining compensation (reported on Part

II or Schedule J (Form 990), Compensation Information) of the

CEO, executive director,

or other person who is the top

management official, that included all of the following

elements.

•

Review and approval by a governing body or compensation

committee, provided that persons with a conflict of interest

regarding the compensation arrangement at issue weren't

involved. For purposes of this question, a member of the

governing body or compensation committee has a conflict of

interest regarding a compensation arrangement if any of the

following circumstances apply.

1. The member (or a family member of the member) is

participating in or economically benefitting from the

compensation arrangement.

2. The member is in an employment relationship subject to

the direction or control of any person participating in or

economically benefitting from the compensation arrangement.

3. The member receives compensation or other payments

subject to approval by any person participating in or

economically benefitting from the compensation arrangement.

4. The member has a material financial interest affected by

the compensation arrangement.

5. The member approves a transaction providing economic

benefits to any person participating in the compensation

arrangement, who in turn has approved or will approve a

transaction providing economic benefits to the member. See

Regulations section 53.4958-6(c)(1)(iii).

•

Use of data as to comparable compensation for similarly

qualified persons in functionally comparable positions at similarly

situated organizations.

•

Contemporaneous documentation and recordkeeping for

deliberations and decisions regarding the compensation

arrangement.

Answer “Yes” on line 15b if the process for determining

compensation of one or more officers or key employees other

than the top management official included all of the elements

listed above.

If the answer was “Yes” on line 15a or 15b, describe the

process on Schedule O (Form 990), identify the offices or

positions for which the process was used to establish

compensation of the persons who served in those offices or

positions, and enter the year in which this process was last

undertaken for each such person.

If the organization didn't compensate its CEO, executive

director, or top management official during the tax year, answer

“No” to line 15a. If the organization didn't compensate any of its

other officers or key employees during the tax year, even if such

employees were compensated by a related organization, answer

“No” to line 15b.

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Line 16. Answer “Yes” on line 16a if, at any time during its tax

year, the organization invested in, contributed assets to, or

otherwise participated in a joint venture or similar arrangement

with one or more taxable persons. For purposes of line 16, a joint

venture or similar arrangement (or a “venture or arrangement”)

means any joint ownership or contractual arrangement through

which there is an agreement to jointly undertake a specific

business enterprise, investment, or exempt-purpose activity

without regard to (1) whether the organization controls the

venture or arrangement, (2) the legal structure of the venture or

arrangement, or (3) whether the venture or arrangement is

treated as a partnership for federal income tax purposes, or as

an association, or corporation for federal income tax purposes.

Disregard ventures or arrangements that meet both of the

following conditions.

1. 95% or more of the venture's or arrangement's income for

its tax year ending with or within the organization's

tax year is

described in sections 512(b)(1)–(5) (including unrelated

debt-financed income).

2. The primary purpose of the organization's contribution to,

or investment or participation in, the venture or arrangement is

the production of income or appreciation of property.

Answer “Yes” on line 16b if, as of the end of the organization's

tax year, the organization had both:

1. Followed a written policy or procedure that required the

organization to negotiate, in its transactions and arrangements

with other members of the venture or arrangement, such terms

and safeguards as are adequate to ensure that the

organization's exempt status is protected; and

2. Taken steps to safeguard the organization's exempt status

for the venture or arrangement.

Some examples of safeguards include the following.

•

Control over the venture or arrangement sufficient to ensure

that the venture furthers the exempt purpose of the organization.

•

Requirements that the venture or arrangement give priority to

exempt purposes over maximizing profits for the other

participants.

•

The venture or arrangement not engage in activities that

would jeopardize the organization's exemption (such as political

intervention or substantial lobbying for a section 501(c)(3)

organization).

•

All contracts entered into with the organization be on terms

that are at arm's length or more favorable to the organization.

Section C. Disclosure

Line 17. List the states with which a copy of this Form 990 is

required to be filed, even if the organization hasn't yet filed Form

990 with that state. Use Schedule O (Form 990) if additional

space is necessary.

Some states require or permit the filing of Form 990 to

fulfill state exempt organization or charitable solicitation

reporting requirements.

Line 18. Check the box for “Own website” only if the

organization posted an exact reproduction (other than for

information permitted by law to be withheld from public

disclosure, such as the names and addresses of contributors

listed on Schedule B (Form 990)) of its Form 990, Form 990-T

(for section 501(c)(3) organizations), or application for

recognition of exemption (Form 1023, 1023-EZ, 1024, or

1024-A) on its website during its tax year. Check the box for

“Another's website” only if the organization provided to another

individual or organization and that other individual or

organization posted on its website, an exact reproduction (other

than for information permitted by law to be withheld from public

disclosure, such as the names and addresses of contributors

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listed on Schedule B (Form 990)) of any such forms during the

tax year.

If “Other” is checked, explain on Schedule O (Form 990). Also

explain on Schedule O (Form 990) if the organization didn't make

publicly available upon request any of Forms 1023, 1023-EZ,

1024, 1024-A, 990, or 990-T that are subject to public inspection

requirements. Exempt organizations must make available for

public inspection their Form 1023, 1023-EZ, 1024, or 1024-A

application for recognition of exemption. Applications filed before

July 15, 1987, need not be made publicly available unless the

organization had a copy on July 15, 1987.

Organizations that file Form 990 must make it publicly

available for a period of 3 years from the date it is required to be

filed (including extensions) or, if later, is actually filed.

Organizations aren't required to make publicly available the

names and addresses of contributors (as set forth on

Schedule B (Form 990), and on Form 1023, 1023-EZ, 1024, or

1024-A). Section 501(c)(3) organizations that file Form 990-T are

also required to make their Forms 990-T publicly available for the

corresponding 3-year period for forms filed after August 17, 2006

(unless the form was filed solely to request a refund of telephone

excise taxes). See

Appendix D for more information on public

inspection requirements.

Line 19. Explain on Schedule O (Form 990) whether the

organization made its governing documents (for example,

articles of incorporation, constitution, bylaws, trust instrument),

conflict of interest policy, and financial statements (whether

or not audited) available to the general public during the tax year,

and, if so, how it made them available to the public (for example,

posting on the organization's website, posting on another

website, providing copies on request, inspection at an office of

the organization, etc.). If the organization didn't make any of

these documents available to the public, enter “No documents

available to the public.”

Federal tax law doesn't require that such documents be made

publicly available unless they were included on a form that is

publicly available (such as Form 1023, 1023-EZ, 1024, or

1024-A).

Line 20. Provide the name of the person who possesses the

organization's books and records, and the business address and

telephone number of such person (or of the organization if the

books and records are kept by such person at a personal

residence). If the books and records are kept at more than one

location, provide the name, business address, and telephone

number of the person responsible for coordinating the

maintenance of the books and records. The organization isn't

required to provide the address or telephone number of a

personal residence of an individual. If provided, however, such

information will be available to the public.

Part VII. Compensation of Officers,

Directors, Trustees, Key Employees,

Highest Compensated Employees,

and Independent Contractors

Check the box in the heading of Part VII if Schedule O (Form

990) contains any information pertaining to this part.

Overview. Form 990, Part VII, requires the listing of the

organization's current or former officers, directors, trustees,

key employees, and highest compensated employees, and

current independent contractors, and reporting of certain

compensation information relating to such persons.

All organizations are required to complete Part VII, and when

applicable, Schedule J (Form 990), for certain persons.

Compensation must be reported for the calendar year ending

with or within the organization's tax year. In some cases,

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persons are reported in Part VII or Schedule J (Form 990) only if

their reportable compensation (as explained below) and “other

compensation” (as explained below) from the organization and

related organizations (as explained in the Glossary and in the

Instructions for Schedule R (Form 990)) exceeds certain

thresholds. In some cases, compensation from an unrelated

organization must be reported on Form 990. See the

instructions for Part VII, Section A, line 5, later. The amount of

compensation reported on Form 990, Part VII, for a listed person

may differ from the amount reported on Form 990, Part IX, line 5,

for that person due to factors such as a different accounting

period (calendar vs.

fiscal year) or a different accounting

method.

Form 990, Part VII, relies on definitions of reportable

compensation and other compensation. Reportable

compensation generally refers to compensation reported in

box 1 or 5 (whichever amount is greater) of Form W-2, Wage and

Tax Statement; box 1 of Form 1099-NEC, Nonemployee

Compensation; and box 6 of Form 1099-MISC, Miscellaneous

Information. Organizations must also report other compensation

in Part VII, as discussed in the instructions for Part VII, Section A,

column (F), later.

Organizations must report compensation for both current and

former officers, directors, trustees, key employees, and highest

compensated employees. The distinction between current and

former such persons is discussed below. The determination of

“former” uses a 5-year lookback period.

Organizations must report compensation from themselves

and from related organizations, which generally consist of

parents, subsidiaries, brother/sister organizations, supporting

organizations, supported organizations, sponsoring

organizations of VEBAs, and contributing employers to VEBAs.

See the Instructions for Schedule R (Form 990) for a fuller

discussion of related organizations.

Part VII, Section A, requires reporting of officers, directors,

trustees, key employees, and up to five of the organization's

highest compensated employees. Compensation from related

organizations must also be taken into account in determining a

person's compensation and reported in Part VII, Section A,

columns (E) and (F).

Section B requires reporting of the five highest compensated

independent contractors. Section B doesn't require reporting of

compensation from related organizations.

Section A. Officers, Directors, Trustees, Key

Employees, and Highest Compensated

Employees

Overview. Organizations are required to enter in Part VII,

Section A, the following officers, directors, trustees, and

employees of the organization whose reportable

compensation from the organization and related

organizations (as explained in the Glossary and the

Instructions for Schedule R (Form 990)) exceeded the following

thresholds for the tax year.

•

Current officers, directors, and trustees (no minimum

compensation threshold).

•

Current key employees (over $150,000 of reportable

compensation).

•

Current five highest compensated employees other than

officers, directors, trustees, or listed key employees (over

$100,000 of reportable compensation).

•

Former officers, key employees, and highest compensated

employees (over $100,000 of reportable compensation, with

special rules for former highest compensated employees).

•

Former directors and trustees (over $10,000 of reportable

compensation in the capacity as a former director or trustee).

Special rules apply to

disregarded entities of which the

organization is the sole member. See Disregarded Entities, later.

To determine which persons are current or former officers,

directors, trustees, key employees, or highest compensated

employees, see the instructions for Part VII, Section A, column

(C), later.

Order of reporting. List the persons required to be included in

Part VII, Section A, in order from highest to lowest compensation

based on the sum of columns (D), (E), and (F) for each person.

When the amount of total compensation is the same, list the

persons in the following order: individual trustees or directors,

institutional trustees, officers, key employees, highest

compensated employees, and former such persons.

Fiscal year filers. To determine which persons are listed in Part

VII, Section A, the organization must use the calendar year

ending with or within the organization's fiscal year for some

(those whose compensation must exceed minimum thresholds

in order to be reported) and the fiscal year for others. Report

officers, directors, and trustees that served at any time during

the fiscal year as “current”

officers, directors, and trustees.

Report the following persons based on reportable

compensation and status for the calendar year ending within

the fiscal year.

•

Current key employees (over $150,000 of reportable

compensation from the organization and related

organizations).

•

Current five highest compensated employees (over

$100,000 of reportable compensation from the organization and

related organizations), other than current officers, directors,

trustees, and key employees.

•

Former officers, key employees, and five highest

compensated employees (over $100,000 of reportable

compensation from the organization and related organizations,

with special rules for former highest compensated employees).

•

Former directors and trustees (over $10,000 of reportable

compensation for services in the capacity as director or trustee

of the organization, from the organization and related

organizations).

Report compensation on Form 990, Part VII, for the calendar

year ending within the organization's fiscal year, including that

of current officers, directors, and trustees, even if the fiscal year

is used to determine which such persons must be listed in Part

VII.

Director or trustee. A director or trustee is a member of the

organization's governing body, but only if the member has

voting rights. A director or trustee that served at any time during

the organization's tax year is deemed a current director or

trustee. Members of advisory boards that don't exercise any

governance authority over the organization aren't considered

directors or trustees.

An “institutional trustee” is a trustee that isn't an individual or

natural person but an organization. For instance, a bank or trust

company serving as the trustee of a trust is an institutional

trustee.

Officer. An officer is a person elected or appointed to manage

the organization's daily operations. An officer that served at any

time during the organization's

tax year is deemed a current

officer. The officers of an organization are determined by

reference to its organizing document, bylaws, or resolutions of its

governing body, or as otherwise designated consistent with

state law, but, at a minimum, include those officers required by

applicable state law. Officers can include a president, vice

president, secretary, treasurer, and, in some cases, a Board

Chair. In addition, for purposes of Form 990, including Part VII,

Section A, and Schedule J (Form 990), treat as an officer the

following persons, regardless of their titles.

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1. Top management official. The person who has ultimate

responsibility for implementing the decisions of the governing

body or for supervising the management, administration, or

operation of the organization, for example, the organization's

president, CEO, or executive director.

2. Top financial official. The person who has ultimate

responsibility for managing the organization's finances, for

example, the organization's treasurer or chief financial officer.

If ultimate responsibility resides with two or more individuals (for

example, co-presidents or co-treasurers), who can exercise such

responsibility in concert or individually, then treat all such

individuals as officers.

Key employee. For purposes of Form 990, a current key

employee is an employee of the organization (other than an

officer, director, or trustee) who meets all three of the following

tests, applied in the following order.

1. $150,000 Test: Receives reportable compensation

from the organization and all related organizations in excess of

$150,000 for the calendar year ending with or within the

organization's tax year.

2. Responsibility Test: At any time during the calendar year

ending with or within the organization's tax year:

a. Has responsibilities, powers, or influence over the

organization as a whole that is similar to those of officers,

directors, or trustees;

b. Manages a discrete segment or activity of the

organization that represents 10% or more of the activities,

assets, income, or expenses of the organization, as compared to

the organization as a whole; or

c. Has or shares authority to control or determine 10% or

more of the organization's capital expenditures, operating

budget, or compensation for employees.

3. Top 20 Test: Is one of the 20 employees other than

officers, directors, and trustees who satisfy the $150,000 Test

and Responsibility Test with the highest reportable

compensation from the organization and related organizations

for the calendar year ending with or within the organization's tax

year.

If the organization has more than 20 individuals who meet the

$150,000 Test and Responsibility Test, report as key

employees only the 20 individuals who have the highest

reportable compensation from the organization and related

organizations. Note that any others, up to five, might be

reportable as current

highest compensated employees, with

over $100,000 in reportable compensation. Use the calendar

year ending with or within the organization's tax year for

determining the organization's current key employees.

An individual that isn't an employee of the organization (or of

disregarded entity of the organization) is nonetheless treated

as a key employee if she or he serves as an officer or director of

a disregarded entity of the organization and otherwise meets the

standards of a key employee set forth above. See Disregarded

Entities, later, for treatment of certain employees of a

disregarded entity as key employees of the organization.

If an employee is a key employee of the organization for only

a portion of the year, that person's entire compensation for the

calendar year ending with or within the organization's tax year,

from both the filing organization and related organizations,

should be reported in Part VII, Section A.

Management companies and similar entities that are

independent contractors shouldn't be reported as key

employees. The organization's top management official and

top financial official are deemed officers rather than key

employees.

In the examples set forth below, assume the individual

involved is an employee that satisfies the $150,000 Test and Top

20 Test and isn't an officer, director, or trustee.

Example 1. T is a large section 501(c)(3) university. L is the

dean of the law school of T, which generates more than 10% of

the revenue of T, including contributions from alumni and

foundations. Although L doesn't have ultimate responsibility for

managing the university as a whole, L meets the

Responsibility

Test and is reportable as a key employee of T.

Example 2. S chairs a small academic department in the

College of Arts and Sciences of the same university, T, described

above. As department chair, S supervises faculty in the

department, approves the course curriculum, and oversees the

operating budget for the department. The department represents

less than 10% of the university's activities, assets, income,

expenses, capital expenditures, operating budget, and employee

compensation. Under these facts and circumstances, S doesn't

meet the Responsibility Test and isn't a key employee of T.

Example 3. U is a large acute-care section 501(c)(3)

hospital. U employs X as a radiologist. X gives instructions to

staff for the radiology work X conducts, but X doesn't supervise

other U employees, manage the radiology department, or have

or share authority to control or determine 10% or more of U's

capital expenditures, operating budget, or employee

compensation. Under these facts and circumstances, X doesn't

meet the

Responsibility Test and isn't a key employee of U.

Example 4. W is a cardiologist and head of the cardiology

department of the same hospital, U, described above. The

cardiology department is a major source of patients admitted to

U and consequently represents more than 10% of U's income,

as compared to U as a whole. As department head, W manages

the cardiology department. Under these facts and

circumstances, W meets the

Responsibility Test and is a key

employee of U.

Five highest compensated employees. The organization is

required to enter its current five highest compensated

employees whose reportable compensation combined from

the organization and related organizations is greater than

$100,000 for the calendar year ending with or within the

organization's

tax year and who aren't also current officers,

directors, trustees, or key employees of the organization.

Such individuals are the “current” five highest compensated

employees. These can include persons who meet some but not

all of the tests for key employee status. The organization isn't

required to enter more than the top five such persons, ranked by

amount of reportable compensation. Use the calendar year

ending with or within the organization's tax year for determining

the organization's current five highest compensated employees.

Example. X is an employee of Y University and isn't an

officer, director, or trustee. X's reportable compensation for the

calendar year exceeds $150,000, and X meets the

Responsibility Test. X would qualify as a key employee of Y,

except that 20 employees had higher reportable compensation

and otherwise qualify as key employees. Therefore, those 20 are

listed as the organization's key employees. X has the highest

reportable compensation from the organization and related

organizations of all employees other than the 20 key employees.

X must be listed as one of the organization's five highest

compensated employees.

$10,000 exceptions for reporting compensation. Report

compensation paid or accrued by the filing organization and

related organizations. Special rules apply for reporting

reportable compensation and other compensation.

All reportable compensation paid by the filing organization

must be reported. Reportable compensation paid by a related

organization isn't required to be reported unless (1) it is $10,000

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or more for the calendar year ending with or within the

organization's tax year (the “$10,000-per-related-organization

exception”), or (2) it is paid for past services to the filing

organization in the person's capacity as a former director or

trustee.

A particular item of other compensation (such as listed in the

compensation table, later) paid or accrued by the filing

organization isn't required to be reported unless (1) it is $10,000

or more for the calendar year ending with or within the

organization's tax year (the “$10,000-per-item exception”),

or (2)

it is one of the five types of compensation (generally constituting

deferred compensation (including retirement plan benefits) and

health benefits) that must be reported regardless of amount (see

the instructions for column (F)). The same principles apply to

items of other compensation paid or accrued by a related

organization (applied separately to each related organization).

The $10,000 exceptions don't apply to reporting

compensation on Schedule J (Form 990), Part II.

Reportable compensation. Reportable compensation

consists of:

•

For officers and other employees, amounts required to be

reported in box 1 or 5 of Form W-2 (whichever amount is greater)

(as well as in box 1 of Form 1099-NEC, and/or in box 6 of Form

1099-MISC if the officer or employee is also compensated as an

independent contractor of the filing organization or a related

organization);

•

For directors and individual trustees, amounts required to

be reported in box 1 of Form 1099-NEC; and/or in box 6 of Form

1099-MISC for director and other independent contractor

services to the organization or a related organization, plus

amounts required to be reported in box 1 or 5 of Form W-2

(whichever amount is greater) if also compensated as an officer

or employee of the filing organization or a related organization;

and

•

For institutional trustees, fees for services paid pursuant to

a contractual agreement or statutory entitlement. While the

compensation of institutional trustees must be reported on Form

990, Part VII, it need not be reported on Schedule J (Form 990).

If the organization didn't file a Form 1099-NEC or 1099-MISC

because the amounts paid were below the threshold reporting

requirement, then include and report the amount actually paid.

For a full definition of

reportable compensation, see the

Glossary.

Corporate officers are considered employees for

purposes of Form W-2 reporting, unless they perform no

services as officers, or perform only minor services and

neither receive nor are entitled to receive, directly or indirectly,

any

compensation. Corporate directors are considered

independent contractors, not employees, and director

compensation, if any, is generally required to be reported on

Form 1099-NEC. See Regulations section 31.3401(c)-1(f).

For certain kinds of employees and for retirees, the amount in

box 5 of Form W-2 can be zero or less than the amount in box 1

of Form W-2. For instance, recipients of disability pay, certain

members of the clergy, and religious workers who aren't subject

to social security and Medicare taxes as employees can receive

compensation that isn't reported in box 5. In that case, the

amount required to be reported in box 1 of Form W-2 must be

reported as reportable compensation.

If an officer, director, trustee, key employee, or highest

compensated employee of the organization is a foreign person

who received U.S. source income during the calendar year

ending with or within the organization's tax year from the filing

organization or a related organization, and if such income was

reported in box 2 of Form 1042-S, Foreign Person's U.S. Source

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Income Subject to Withholding, then treat this income as

reportable compensation and report it in Part VII, Section A,

column (D) or (E). For foreign persons for whom compensation

reporting on Form W-2, Form 1099-NEC, Form 1099-MISC, or

Form 1042-S isn't required, treat as reportable compensation in

column (D) or (E) the total value of the compensation paid in the

form of cash or property during the calendar year ending with or

within the organization's tax year. Report other compensation

from foreign organizations as “other compensation” in column

(F).

To determine whether an individual received more than

$100,000 (or $150,000) in reportable compensation in the

aggregate from the filing organization (and, as discussed later,

certain third parties such as common paymasters, payroll/

reporting agents, and certain unrelated organizations,

compensation from which is considered compensation from the

filing organization) and

related organizations, add the following

amounts.

•

The amount reported in box 1 or 5 of Form W-2 (whichever

amount is greater), in box 1 of Form 1099-NEC, and/or in box 6

of Form 1099-MISC, issued to the individual by the organization.

•

Amounts reported in box 1 or 5 of Form W-2 (whichever

amount is greater), in box 1 of Form 1099-NEC, or in box 6 of

Form 1099-MISC, issued to the individual by each related

organization that reported $10,000 or more.

To determine whether an individual received solely in his or

her capacity as a former trustee or director of the organization

more than $10,000 in reportable compensation for the calendar

year ending with or within the organization's tax year, in the

aggregate, from the organization and all related organizations

(and thus must be reported on Form 990, Part VII, and

Schedule J (Form 990), Part II), add the amounts reported in

box 1 of all Forms 1099-NEC, box 6 of all Forms 1099-MISC,

and, if relevant, box 1 or 5 of all Forms W-2 (whichever amount is

greater) issued to the individual by the organization and all

related organizations for the calendar year ending with or within

the organization's tax year. Report such amounts only to the

extent that such amounts relate to the individual's past services

as a trustee or director of the organization, and don't disregard

any payments from a related organization if below $10,000, for

such purpose.

Other compensation. Other compensation includes

compensation other than reportable compensation, including

deferred compensation not currently reportable in box 1 or 5 of

Form W-2, box 1 of Form 1099-NEC, or box 6 of Form

1099-MISC, and certain nontaxable benefits, as discussed in

detail in the instructions for Schedule J (Form 990), Part II. See

the instructions for other compensation reported in column (F),

later, which includes a table to show where and how to report

certain types of compensation in Part VII, Section A, and

Schedule J (Form 990).

Note. Don't report the same item of compensation in more than

one column of Part VII, Section A, for the tax year.

Disregarded entities. Disregarded entities (such as an LLC

that is wholly owned by the organization and not treated as a

separate entity for federal tax purposes) are generally treated as

part of the organization rather than as

related organizations for

purposes of Form 990, including Part VII and Schedule J (Form

990). A person isn't considered an officer or director of the

organization by virtue of being an officer or director of a

disregarded entity, but he or she can qualify as a key employee

or highest compensated employee of the organization. An

officer, director, or employee of a disregarded entity is a key

employee of the organization if she or he meets the

$150,000

Test and Top 20 Test for the filing organization as a whole, and if,

for the Responsibility Test, the person has responsibilities,

powers, or influence over a discrete segment or activity of the

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disregarded entity that represents at least 10% of the activities,

assets, income, or expenses of the filing organization as a

whole, or has or shares authority to control or determine the

disregarded entity's capital expenditures, operating budget, or

compensation for employees that is at least 10% of the filing

organization's respective items as a whole. If an officer or

director of a disregarded entity also serves as an officer, director,

trustee, or key employee of the organization, report this

individual as an officer, director, trustee, or key employee, as

applicable, of the organization, and add the compensation, if

any, paid by the disregarded entity to this individual to the

compensation, if any, paid directly by the organization to this

individual. Report the total aggregate amount in column (D).

A disregarded entity must generally use the EIN of its

sole member. An exception applies to employment

taxes: for wages paid to employees of a disregarded

entity, the disregarded entity must file separate employment tax

returns and use its own EIN on such returns. See Regulations

sections 301.6109-1(h) and 301.7701-2(c)(2)(iv).

Management companies. Management companies, as

independent contractors, are reported on Form 990, Part VII,

(if at all) only in Section B. Independent Contractors, and aren't

reported on Schedule J (Form 990), Part II. If a current or former

officer, director, trustee, or key employee has a relationship

with a management company that provides services to the

organization, then the relationship may be reportable on

Schedule L (Form 990), Part IV. A key employee of a

management company must be reported as a current officer of

the filing organization if he or she is the filing organization's

top

management official or top financial official or is designated

as an officer of the filing organization. However, that person

doesn't qualify as a key employee of the filing organization solely

on the basis of being a key employee of the management

company. If a current or former officer, director, trustee, key

employee, or

highest compensated employee received

compensation from a management company that provided

services to the organization and was a related organization

during the tax year, then the individual's compensation from the

management company must be reported on Form 990, Part VII,

Section A, columns (E) and (F). If the management company

wasn't a related organization during the tax year, the individual’s

compensation from the management company isn't reportable in

Part VII, Section A. Questions pertaining to management

companies also appear on Form 990, Part VI, line 3; and

Schedule H (Form 990), Hospitals, Part IV.

Employee leasing companies and professional employer

organizations. In some cases, instead of hiring a management

company, an exempt organization “leases” one or more

employees from another company, which may be in the business

of leasing employees. Alternatively, the organization may enter

into an agreement with a professional employer organization to

perform some or all of the federal employment tax withholding,

reporting, and payment functions related to workers performing

services for the organization. The organization should treat

employees of an employee leasing company, a professional

employer organization (whether or not certified under the new

Certified Professional Employer Organization), or a management

company as the organization's own employees if such persons

have the status of employees of the filing organization under the

usual common law rules applicable in determining the

employer-employee relationship or who are treated as

employees of the filing organization for federal employment tax

purposes under section 3121(d). See Pub. 1779, Independent

Contractor or Employee, for more information. Otherwise, the

compensation paid to leasing companies and professional

employer organizations should be treated like compensation to a

management company for purposes of Form 990 compensation

reporting.

TIP

Compensation from common paymasters, payroll/reporting

agents, and unrelated organizations or individuals (except for

compensation from management companies or leasing

companies, and compensation described in Taxable

organization employee exception, later) must be treated as

reportable compensation in determining whether the dollar

thresholds are met for reporting (1) current or former employees

as current or former key employees or highest compensated

employees; or (2) former officers, directors, or trustees, on Form

990, Part VII, Section A. If the Form 990, Part VII, thresholds for

reporting are met, then the compensation from the common

paymaster, payroll/reporting agent, or unrelated organization or

individual must be reported as compensation from the filing

organization in Part VII. The compensation may also need to be

reported on Schedule J (Form 990), Part II (see the instructions

for Form 990, Part VII, Section A, line 5).

The use of a leasing company, common paymaster,

payroll/reporting agent, or other payroll service provider

doesn't relieve an employer of its obligation for

employment tax liabilities. The IRS strongly suggests that the

organization doesn't change its address to that of its payroll

service provider or other third-party payer. Doing so could limit

the organization’s ability to stay informed of tax matters, because

the IRS sends correspondence regarding problems with an

employer's account to the employer's address of record.

Alternatively, an employer may grant permission for a third-party

payer to receive copies of IRS correspondence by using Form

8822-B; Form 2848, Power of Attorney and Declaration of

Representative; or Form 8655, Reporting Agent Authorization, as

appropriate.

Compensation from unrelated organizations or individuals.

If a current or former officer, director, trustee, key employee,

or highest compensated employee received or accrued

compensation or payments from an unrelated organization

(other than from management companies or leasing

companies, as discussed above) or an individual for services

rendered to the filing organization in that person's capacity as an

officer, director, trustee, or employee of the filing organization,

then the filing organization must report (subject to the

Taxable

organization employee exception next) such amounts as

compensation from the filing organization if it has knowledge of

the arrangement, whether or not the unrelated organization or

the individual treats the amounts as compensation, grants,

contributions, or otherwise. Report such compensation from

unrelated organizations in Section A, columns (D) and (F), as

appropriate. If the organization can't distinguish between

reportable compensation and other compensation from the

unrelated organization, report all such compensation in column

(D).

Taxable organization employee exception. Don't report as

compensation any payments from an unrelated taxable

organization that employs the individual and continues to pay the

individual's regular compensation while the individual provides

services without charge to the filing organization, but only if the

unrelated organization doesn't treat the payments as a charitable

contribution to the filing organization.

Column (A). For each person required to be listed, enter the

name on the top of each row and the person's title or position

with the organization on the bottom of the row. If more than one

title or position, list all. List persons in the order described under

Order of reporting, earlier. List each person on only one line.

Column (B). For each person listed in column (A), estimate the

average hours per week devoted to the organization during the

year. Entry of a specific number is required for a complete

answer. Enter “-0-” if applicable. Don't include statements such

as “as needed,” “as required,” or “40+.” If the average is less than

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1 hour per week, then the organization can enter a decimal

rounded to the nearest tenth (for example, 0.2 hours per week).

For each person listed in column (A), list below the dotted line

an estimate of the average hours per week (if any) devoted to

related organizations.

Column (C). For each person listed in column (A), check the

box that reflects the person's position with the organization

during the tax year. Don't check more than one box, unless the

person was both an officer and a director/trustee of the

organization during the tax year. For a former

officer, director,

trustee, key employee, or highest compensated employee,

check only the “Former” box and indicate the former status in the

person's title.

“Current” officers, directors, trustees, key employees,

and highest compensated employees. A “current” officer,

director, or trustee is a person that was an officer, director, or

trustee at any time during the organization's tax year. A “current”

key employee or highest compensated employee is a person

who was an employee at any time during the calendar year

ending with or within the organization's tax year, and was a key

employee or highest compensated employee for such calendar

year.

If the organization files Form 990 based on a fiscal year, use

the fiscal year to determine the organization's “current” officers,

directors, and trustees. Whether or not the organization files

Form 990 based on a fiscal year, use the calendar year ending

with or within the organization's tax year to determine the

organization's “current” key employees and five highest

compensated employees.

Don't check the “Former” box if the person was a current

officer, director, or trustee at any time during the organization's

tax year, or a current key employee or among the five highest

compensated employees for the calendar year ending with or

within the organization's tax year. A current employee (other than

a current officer, director, trustee, key employee, or highest

compensated employee) can be reported on Form 990, Part VII,

and Schedule J (Form 990), Part II, as (1) a former director or

trustee because she or he served as a director or trustee within

the last 5 years, and received more than $10,000 in

reportable

compensation for the calendar year ending with or within the

organization’s tax year in his or her capacity as a former director

or trustee; or (2) a former officer or key employee (but not as a

former highest compensated employee) because he or she

served as an officer or key employee within the last 5 years and

received more than $100,000 of reportable compensation for the

calendar year ending with or within the organization’s tax year. In

such a case, indicate the individual's former position in his or her

title (for example, “former president”).

“Former” officers, directors, trustees, key employees,

and highest compensated employees. Check the “Former”

box for former officers, directors, trustees, and key employees

only if both conditions below apply.

•

The organization reported (or should have reported, applying

the instructions in effect for such years) an individual on any of

the organization's Forms 990, 990-EZ, or 990-PF for any 1 or

more of the 5 prior years in one or more of the following

capacities: officer, director, trustee, or key employee.

•

The individual received reportable compensation, from the

organization and/or related organizations, in the calendar year

ending with or within the organization's current tax year in

excess of the threshold amount ($100,000 for former officers and

key employees; $10,000 paid to former directors and trustees for

services rendered in their former capacity as directors or

trustees).

If a person was reported (or should have been reported) as

an officer, director, trustee, or key employee on any of the

organization's prior five Forms 990, 990-EZ, or 990-PF, and if the

person was still employed at any time during the organization's

tax year either (1) by the organization in a lesser capacity other

than as an officer, director, trustee, key employee, or highest

compensated employee; or (2) by a related organization in any

capacity, but not by the filing organization, and if the person

received reportable compensation that exceeded the threshold

amount described above, then check only the “Former” box. For

example, don't check both the “Former” and “Officer” boxes for a

former president of the organization who wasn't an officer of the

organization during the tax year.

Whether or not the organization files Form 990 based on a

fiscal year, use the calendar year ending within the

organization's tax year to determine all “former” officers,

directors, trustees, key employees, and five highest

compensated employees (because their status depends on their

reportable compensation, which is reported for the calendar

year).

Check the “Former” box for the former five highest

compensated employees only if all four conditions below apply.

1. The individual wasn't an employee of the organization at

any time during the calendar year ending with or within the

organization's tax year.

2. The individual was reported (or should have been

reported, under the instructions in effect for such years) on any

of the organization's Forms 990, 990-EZ, or 990-PF for 1 or more

of the 5 prior years as one of the five highest compensated

employees.

3. The individual's reportable compensation exceeded

$100,000 for the calendar year ending with or within the

organization's tax year.

4. The amount of the individual's reportable compensation

for such year would place him or her among the organization's

current five highest compensated employees if the individual

were an employee during the calendar year ending with or within

the organization's tax year.

Example 1. X was reported as one of Y Charity's five highest

compensated employees on one of Y's Forms 990, 990-EZ, or

990-PF from 1 of its 5 prior tax years. During Y’s tax year, X

wasn't a current officer, director, trustee, key employee, or

highest compensated employee of Y. X wasn't an employee of Y

during the calendar year ending with or within Y's tax year.

During this calendar year, X received reportable compensation in

excess of $100,000 from Y for past services and would be

among Y's five highest compensated employees if X were a

current employee. Y must report X as a former highest

compensated employee on Y's Form 990, Part VII, Section A, for

Y's tax year.

Example 2. T was reported as one of Y Charity's five highest

compensated employees on one of Y's Forms 990, 990-EZ, or

990-PF from 1 of its 5 prior tax years. During Y’s

tax year, T

wasn't a current officer, director, trustee, key employee, or

highest compensated employee of Y, although T was still an

employee of Y during the calendar year ending with or within Y's

tax year. T received reportable compensation in excess of

$100,000 from Y and related organizations for such calendar

year. T isn't reportable as a former highest compensated

employee on Y's Form 990, Part VII, Section A, for Y’s tax year

because T was an employee of Y during the calendar year

ending with or within Y's tax year.

Example 3. Z was reported as one of Y Charity's key

employees on Y's Form 990 filed for 1 of its 5 prior tax years.

During Y’s tax year, Z wasn't a current officer, director, trustee,

key employee, or highest compensated employee of Y. For the

calendar year ending with or within Y’s tax year, Z received

reportable compensation of $90,000 from Y as an employee

(and no reportable compensation from related organizations).

Because Z received less than $100,000 reportable

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compensation for the calendar year ending with or within Y’s tax

year from Y and its related organizations, Y isn't required to

report Z as a former key employee on Y's Form 990, Part VII,

Section A, for Y’s tax year.

Columns (D) and (E). Enter the amounts required to be

reported (whether or not actually reported) in box 1 or 5 of Form

W-2 (whichever is greater), box 1 of Form 1099-NEC, and/or

box 6 of Form 1099-MISC, issued to the person for the calendar

year ending with or within the organization's

tax year. Enter an

amount for each person in each of columns (D) and (E). Enter

“-0-” if the person received no

reportable compensation. For

institutional trustees that don't receive a Form 1099-NEC or

1099-MISC, enter the amount that the organization would have

reported in box 1 of Form 1099-NEC or box 6 of Form

1099-MISC if the form(s) had been required.

Reportable compensation paid to the person by a related

organization at any time during the entire calendar year ending

with or within the filing organization's tax year should be reported

in column (E). If the related organization was related to the filing

organization for only a portion of the tax year, then the filing

organization may choose to report only compensation paid or

accrued by the related organization during the time it was

actually related. If the filing organization reports compensation

on this basis, it must explain on Schedule O (Form 990) and

state the period during which the related organization was

related.

$10,000-per-related-organization exception. For purposes

of column (E), the organization need not include payments from

a single related organization if it is less than $10,000 for the

calendar year ending with or within the organization's tax year,

except to the extent paid to a former

director or former trustee

of the filing organization for services as a director or trustee of

the organization. For example, if an officer of the organization

received compensation of $6,000, $15,000, and $50,000 from

three separate related organizations for services provided to

those organizations, the organization needs to report only

$65,000 in column (E) for the officer.

Volunteer exception. The organization need not report in

column (E) or (F) compensation from a related organization paid

to a

volunteer officer, director, or trustee of the filing

organization if the related organization is a for-profit organization;

isn't owned or controlled, directly or indirectly, by the

organization or one or more related tax-exempt organizations;

and doesn't provide management services for a fee to the

organization.

Bank or financial institution trustee. If the organization is a

trust with a bank or financial institution trustee that is also a

trustee of another trust, it need not report in column (E) or (F)

compensation from the other trust for services provided as the

trustee to the other trust, because the other trust isn't a related

organization (see the

Glossary definition of related

organization).

Reasonable effort. The organization isn't required to report

compensation from a related organization to a person listed on

Form 990, Part VII, Section A, if the organization is unable to

secure the information on compensation paid by the related

organization after making a

reasonable effort to obtain it, and if

it is unable to make a reasonable estimate of such

compensation. If the organization makes reasonable efforts but

is unable to obtain the information or provide a reasonable

estimate of compensation from a related organization in column

(E) or (F), then it must report the efforts undertaken on

Schedule O (Form 990). An example of a reasonable effort is for

the organization to distribute a questionnaire annually to each of

its current and former officers, directors, trustees, key

employees, and highest compensated employees that includes

the name and title of each person reporting information, blank

lines for those persons' signatures and signature dates, and the

pertinent instructions and definitions for Form 990, Part VII,

Section A, columns (E) and (F).

Short year and final returns. For a short year return in

which there is no calendar year that ends with or within the short

year, leave columns (D) and (E) blank, and don't report any key

employees, highest compensated employees, or highest

compensated independent contractors (because such

persons are determined according to compensation received in

the calendar year ending with or within the tax year for which the

return is filed), unless the return is a final return. If the return is a

final return, report the compensation that is reportable

compensation on Forms W-2 and 1099 for the short year, from

both the filing organization and related organizations, whether or

not Forms W-2 or 1099 have been filed yet to report such

compensation.

Column (F). Other compensation generally includes

compensation not currently reportable in box 1 or 5 of Form W-2,

in box 1 of Form 1099-NEC, or in box 6 of Form 1099-MISC,

including nontaxable benefits other than disregarded benefits,

discussed under Disregarded benefits, later, and in the

instructions for Schedule J (Form 990), Part II. Treat amounts

paid or accrued under a

deferred compensation plan, or held

by a deferred compensation trust, that is established,

sponsored, or maintained by the organization (or a related

organization) as paid, accrued, or held directly by the

organization (or the related organization). Deferred

compensation to be reported in column (F) includes

compensation that is earned or accrued in one year and deferred

to a future year, whether or not funded, vested, qualified or

nonqualified, or subject to a substantial risk of forfeiture. But

don't report in column (F) a deferral of compensation that causes

an amount to be deferred from the calendar year ending with or

within the tax year to a date that isn't more than 2

/2 months after

the end of the calendar year ending with or within the tax year if

such compensation is currently reported as reportable

compensation.

Enter an amount in column (F) for each person listed in Part

VII, Section A. (Enter “-0-” if applicable.) Report a reasonable

estimate if actual numbers aren't readily available.

Other compensation paid to the person by a related

organization at any time during the calendar year ending with or

within the filing organization's tax year should be reported in

column (F). If the related organization was related to the filing

organization for only a portion of the tax year, then the filing

organization may choose to report only other compensation paid

or accrued by the related organization during the time it was

actually related. If the filing organization reports compensation

on this basis, it must explain on Schedule O (Form 990) and

state the period during which the related organization was

related.

The following items of compensation provided by the filing

organization and related organizations must be reported as

“other compensation” in column (F) in all cases regardless of the

amount, to the extent they aren't included in column (D).

1. Tax-deferred contributions by the employer to a qualified

defined contribution retirement plan.

2. The annual increase or decrease in actuarial value of a

qualified defined benefit plan, whether or not funded or vested.

3. The value of health benefits provided by the employer, or

paid by the employee with pre-tax dollars, that aren't included in

reportable compensation. For this purpose, health benefits

include (1) payments of health benefit plan premiums, (2)

medical reimbursement and flexible spending programs, and (3)

the value of health coverage (rather than actual benefits paid)

provided by an employer's self-insured or self-funded

arrangement. Health benefits

include dental, optical, drug, and

medical equipment benefits. They don't include disability or

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long-term care insurance premiums or allocated benefits for this

purpose.

4. Tax-deferred contributions by the employer and employee

to a funded nonqualified defined contribution plan, and deferrals

under an unfunded nonqualified defined contribution plan,

whether or not such plans are vested or subject to a substantial

risk of forfeiture. See the examples in the Schedule J (Form 990),

Part II, instructions.

5. The annual increase or decrease in actuarial value of a

nonqualified defined benefit plan, whether or not funded, vested,

or subject to a substantial risk of forfeiture.

$10,000-per-item exception. Except for the five items listed

above, neither the organization nor a related organization is

required to report on Form 990, Part VII, Section A, any item of

“other compensation” (as set forth in the compensation table

beginning later) if its total value is less than $10,000 for the

calendar year ending with or within the organization's tax year.

Amounts excluded under the two separate $10,000

exceptions (the $10,000-per-related-organization and

$10,000-per-item exceptions) are to be excluded from

compensation in determining whether an individual's total

reportable compensation and other compensation exceeds

the thresholds set forth on Form 990, Part VII, Section A, line 4. If

the individual's total compensation exceeds the relevant

threshold, then the amounts excluded under the $10,000

exceptions are included in the individual's compensation

reported on Schedule J (Form 990). Thus, the total amount of

compensation reported on Schedule J (Form 990) can be higher

than the amount reported on Form 990, Part VII, Section A.

The $10,000-per-item exception applies separately for each

item of other compensation from the organization and from each

related organization.

Example 1. Organization X provides the following

compensation to its current officer.

$110,000

Reportable compensation (including pre-tax employee

contributions of $5,000 to a qualified defined contribution

retirement plan and $2,500 to a qualified health benefit plan)

5,000 Tax-deferred employer contribution to qualified defined

contribution retirement plan

5,000 Nontaxable employer contributions to health benefit plan

4,000 Nontaxable dependent care assistance

500 Nontaxable group life insurance premium

Organization Y, a related organization, also provides

compensation to the officer as follows.

$21,000

Reportable compensation (including $1,000 pre-tax

employee contribution to qualified defined contribution

retirement plan)

1,000 Tax-deferred employer contribution to qualified defined

contribution retirement plan

5,000 Nontaxable tuition assistance

The officer receives no compensation in the capacity as a

former director or trustee of X, and no unrelated organization

pays the officer for services provided to X. The organization can

disregard as other compensation (a) the $4,500 in dependent

care and group life insurance payments from the organization

(under the $10,000-per-item exception), and (b) the $5,000 in

tuition assistance from the related organization (under the

$10,000-per-item exception

) in determining whether the officer's

total reportable and other compensation from the organization

and related organizations exceeds $150,000. In this case, total

reportable compensation is $131,000, and total other

compensation (excluding the excludable items below $10,000) is

$11,000. Under these circumstances, the officer's dependent

care, group life, and tuition assistance items need not be

reported as other compensation on Form 990, Part VII,

Section A, column (F), and the officer's total reportable and other

compensation ($142,000) isn't reportable on Schedule J (Form

990). If, instead, the officer's reportable compensation from Y

were $30,000 rather than $21,000, then the officer's total

reportable and other compensation ($151,000) would be

reportable on Schedule J (Form 990), including the dependent

care, group life, and tuition assistance items, even though these

items wouldn't have to be reported as other compensation on

Form 990, Part VII.

Example 2. Organization S provides health benefits to B (its

CEO) under a self-insured medical reimbursement plan. The

value of the plan benefits for the tax year is $10,000, which

represents the estimated cost of providing coverage for the year

if the employer paid a third-party insurer for similar benefits, as

determined on an actuarial basis. The actual benefits paid for B

and B's family for the year are $30,000. If the benefits aren't

reportable compensation to B, then Organization S must report

the $10,000 value of plan benefits as other compensation to B

on Form 990, Part VII, Section A, column (F).

Disregarded benefits. Disregarded benefits under Regulations

section 53.4958-4(a)(4) need not be reported in column (F).

Disregarded benefits generally include fringe benefits excluded

from gross income under section 132. These benefits include:

•

No-additional cost service,

•

Qualified employee discount,

•

Working condition fringe,

•

De minimis fringe,

•

Qualified transportation fringe,

•

Qualified retirement planning services, and

•

Qualified military base realignment and closure fringe.

For descriptions of each of these disregarded benefits, see

the Instructions for Schedule J (Form 990).

Short year and final returns. For a short year return in which

there is no calendar year that ends with or within the short year,

leave column (F) blank, unless the return is a final return. If the

return is a final return, report the other compensation for the

short year from both the filing organization and related

organizations.

Compensation table for reporting on Part VII, Section A; or

Schedule J (Form 990), Part II. The following table may be

useful in determining how and where to report items of

compensation on Form 990, Part VII, Section A, and on

Schedule J (Form 990), Part II. The list isn't comprehensive but

covers most items for most organizations. Many items of

compensation may or may not be taxable or currently taxable,

depending on the plan or arrangement adopted by the

organization and other circumstances. The list attempts to take

into account these varying facts and circumstances. The list is

merely a guideline to report amounts for those persons required

to be listed. In all cases, items included in box 1 or 5 of Form

W-2 (whichever is greater), in box 1 of Form 1099-NEC, and/or in

box 6 of Form 1099-MISC are required to be reported on Part

VII, Section A, and, for applicable persons, Schedule J (Form

990), Part II, column (B). Items listed as “taxable” or “taxable in

current year” are currently includible in reportable compensation,

but aren't necessarily subject to federal income tax in the current

year.

Any item listed in the following compensation table that isn't

followed by a star (x) or asterisk (*) in any column shouldn't be

reported on Part VII, Section A; or in Schedule J (Form 990), Part

II.

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Type of Compensation

Where To Report

Form 990, Part VII, Section A, column (D) or (E) Form 990, Part VII, Section A, column

(F)

Schedule J

(Form 990), Part

II, column B(i)

Schedule J (Form

990), Part II,

column B(ii)

Schedule J (Form

990), Part II,

column B(iii)

Schedule J (Form

990), Part II,

column C

Schedule J (Form

990), Part II,

column D

Base salary/wages/fees paid x

Base salary/wages/fees deferred (taxable) x

Base salary/wages/fees deferred (nontaxable) x

Bonus paid (including signing bonus) x

Bonus deferred (taxable in current year) x

Bonus deferred (not taxable in current year) x

Incentive compensation paid x

Incentive compensation deferred (taxable in

current year)

Incentive compensation deferred (not taxable in

current year)

Severance or change of control payments made x

Sick pay paid by employer x

Third-party sick pay x

Other compensation amounts deferred (taxable in

current year)

Other compensation amounts deferred (not

taxable in current year)

Tax gross-ups paid x

Vacation/sick leave cashed out x

Stock options at time of grant x

Stock options at time of exercise x

Stock awards paid by taxable organizations

substantially vested

Stock awards paid by taxable organizations not

substantially vested

Stock equivalents paid by taxable organizations

substantially vested

Stock equivalents paid by taxable organizations

not substantially vested

Loans—forgone interest or debt forgiveness x

Contributions (employer) to qualified retirement

plan

Contributions (employee deferrals) to section

401(k) plan

Contributions (employee deferrals) to section

403(b) plan

Qualified or nonqualified retirement plan defined

benefit accruals (reasonable estimate of increase

or decrease in actuarial value)

Qualified retirement (defined contribution) plan

investment earnings or losses (not reportable or

other compensation)

Taxable distributions from qualified retirement

plan, including section 457(b) eligible

governmental plan (reported on Form 1099-R but

not reportable or other compensation on Form 990)

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Type of Compensation

Where To Report

Form 990, Part VII, Section A, column (D) or (E) Form 990, Part VII, Section A, column

(F)

Schedule J (Form

990), Part II,

column B(i)

Schedule J (Form

990), Part II,

column B(ii)

Schedule J (Form

990), Part II,

column B(iii)

Schedule J (Form

990), Part II,

column C

Schedule J (Form

990), Part II,

column D

Distributions from nongovernmental section 457(b)

plan

Amounts includible in income under section 457(f) x

Amounts deferred by employer or employee (plus

earnings) under section 457(b) plan (substantially

vested)

Amounts deferred by employer or employee under

section 457(b) or 457(f) plan (not substantially

vested)

Amounts deferred under nonqualified defined

contribution plans (substantially vested)

Amounts deferred under nonqualified defined

contribution plans (not substantially vested)

Earnings or losses of nonqualified defined

contribution plan (substantially vested)

Earnings or losses of nonqualified defined

contribution plan (not substantially vested)

Scholarships and fellowship grants (taxable) x

Health benefit plan premiums paid by employer

(taxable)

Health benefit plan premiums paid by the employee

(taxable)

Health benefit plan premiums (nontaxable) x

Medical reimbursement and flexible spending

programs (taxable)

Medical reimbursement and flexible spending

programs (nontaxable)

Other health benefits (taxable) x

Other health benefits (nontaxable) x

Life, disability, or long-term-care insurance (taxable) x

Life, disability, or long-term-care insurance

(nontaxable)

Split-dollar life insurance (see Notice 2002-8, 2002-1

C.B. 398)

Housing provided by employer or ministerial housing

allowance (taxable)

Housing provided by employer or ministerial housing

allowance (nontaxable) (but see Schedule J

instructions regarding working condition fringes)

Personal legal services (taxable) x

Personal legal services (nontaxable) *

Personal financial services (taxable) x

Personal financial services (nontaxable) *

Dependent care assistance (taxable) x

Dependent care assistance (nontaxable) *

Adoption assistance (taxable) x

Adoption assistance (nontaxable) *

Tuition assistance for family (taxable) x

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Type of Compensation

Where To Report

Form 990, Part VII, Section A, column (D) or (E) Form 990, Part VII, Section A, column

(F)

Schedule J (Form

990), Part II,

column B(i)

Schedule J (Form

990), Part II,

column B(ii)

Schedule J (Form

990), Part II,

column B(iii)

Schedule J (Form

990), Part II,

column C

Schedule J (Form

990), Part II,

column D

Tuition assistance for family (nontaxable) *

Cafeteria plans (nontaxable health benefit) x

Cafeteria plans (nontaxable benefit other than health) *

Liability insurance (taxable) x

Employer-provided automobile (taxable) x

Employer-subsidized parking (taxable) x

Travel (taxable) x

Moving (taxable) x

Meals and entertainment (taxable) x

Social club dues (taxable) x

Spending account (taxable) x

Gift cards x

Disregarded benefits under Regulations section

53.4958-4(a)(4) (see Schedule J, Part II, instructions)

Note. Items marked with an asterisk (*) instead of a star (x) are

excludable from Form 990, Part VII, Section A, column (F), if

below $10,000.

Line 1b. Report the subtotals of compensation from the

Section A, line 1a, table in line 1b, columns (D), (E), and (F).

Line 1c. Report the subtotals of compensation from duplicate

Section A tables for filers that report more than 25 persons in the

Section A, line 1a, table in line 1c, columns (D), (E), and (F).

Line 1d. Add the totals of lines 1b and 1c in line 1d for columns

(D), (E), and (F).

Line 2. Report the total number of individuals, both those listed

in the Part VII, Section A, table, and those not listed, to whom the

filing organization (not

related organizations) paid over

$100,000 in reportable compensation during the tax year.

Line 3. Complete Schedule J (Form 990) for each of the

following persons.

•

Each individual listed in Part VII, Section A, as a former

officer, former key employee, or former highest

compensated employee. To determine whether an individual

received more than $100,000 in reportable compensation in

the aggregate from the organization and

related organizations,

add the amounts reported in box 1 or 5 of all Forms W-2

(whichever is greater), in box 1 of all Forms 1099-NEC, and/or in

box 6 of all Forms 1099-MISC issued to the individual by the

organization and all related organizations (disregarding amounts

from a related organization if below $10,000) for the

calendar

year ending with or within the organization's tax year.

•

Each individual that received, solely in the capacity as a

former director or former trustee of the organization, more than

$10,000 of reportable compensation (Part VII, Section A,

columns (D) and (E)) during the year from the organization or

related organizations. To determine whether an individual

received or accrued more than $10,000 in reportable

compensation solely in the capacity as a former trustee or

director of the organization, add the amounts reported in box 1 of

all Forms 1099-NEC, and, if applicable, box 1 or 5 of all Forms

W-2 (whichever is greater), and/or issued to the individual by the

organization and all related organizations, to the extent that such

amounts relate to the individual's past services as a trustee or

director of the organization and not of a related organization. The

$10,000-per-related-organization exception doesn't apply for this

purpose.

Line 4. Complete Schedule J (Form 990) for each individual

listed in Section A who received or accrued more than $150,000

of reportable and other compensation from the organization and

related organizations. To determine whether any listed individual

received or accrued more than $150,000 of reportable and other

compensation, add all

compensation included in Part VII,

Section A, columns (D), (E), and (F), but disregard any

decreases in the actuarial value of defined benefit plans.

The following chart explains which officers, directors,

trustees, key employees, and highest compensated

employees must be reported on Form 990, Part VII, Section A,

and on Schedule J (Form 990). See also Line 5, later, for

additional individuals who must be reported on Schedule J

(Form 990), Part II.

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Matrix for Part VII, Section A, Lines 3 and 4

Position Current or former

Enter on Form 990, Part VII,

Section A . . .

Enter on Schedule J (Form 990),

Part II . . .

Directors and Trustees

Current All

If reportable and other compensation is

greater than $150,000 in the aggregate

from organization and related

organizations (don't report institutional

trustees)

Former

If reportable compensation in capacity

as former director or trustee is greater

than $10,000 in the aggregate from

organization and related organizations

If listed on Form 990, Part VII, Section A

(don't report institutional trustees)

Officers

Current All

If reportable and other compensation is

greater than $150,000 in the aggregate

from organization and related

organizations

Former

If reportable compensation is greater

than $100,000 in the aggregate from

organization and related organizations

If listed on Form 990, Part VII, Section A

Key Employees

Current All All

Former

If reportable compensation is greater

than $100,000 in the aggregate from

organization and related organizations

If listed on Form 990, Part VII, Section A

Other Five Highest Compensated

Employees

Current

If reportable compensation is greater

than $100,000 in the aggregate from

organization and related organizations

If reportable and other compensation is

greater than $150,000 in the aggregate

from organization and related

organizations

Former

If reportable compensation is greater

than $100,000 in the aggregate from

organization and related organizations

If listed on Form 990, Part VII, Section A

Line 5. Complete Schedule J (Form 990) for any individual

listed on Form 990, Part VII, Section A, if the person receives or

accrues compensation from an unrelated organization (other

than from management companies and leasing companies, as

discussed earlier) for services rendered to the filing organization

in the person's capacity as an

officer, director, trustee, or

employee of the filing organization. Also, specify on Schedule J

(Form 990), Part III, the name of the unrelated organization, the

type and amount of compensation it paid or accrued, and the

person receiving or accruing such compensation. See

Compensation from unrelated organizations or individuals,

earlier.

For purposes of line 5, disregard:

1. Payments from a deferred compensation trust or plan

established, sponsored, or maintained by the organization (or a

related organization), and deferred compensation held by such

trust or plan;

2. Payments from a common paymaster for services

provided to the organization (or to a related organization); or

3. Payments from an unrelated taxable organization that

employs the individual and continues to pay the individual's

regular compensation while the individual provides services

without charge to the filing organization, but only if the unrelated

organization doesn't treat the payments as a charitable

contribution to the filing organization.

Example 1. A is the CEO (and the top management

official) of the organization. In addition to compensation paid by

the organization to A, A receives payments from B, an unrelated

corporation (using the definition of relatedness on Schedule R

(Form 990)), for services provided by A to the organization. B

also makes rent payments for A's personal residence. The

organization is aware of the compensation arrangement between

A and B, and doesn't treat the payments as paid by the

organization for Form W-2 reporting purposes. A, as the top

management official of the organization, must be listed as an

officer of the organization in Part VII, Section A. However, the

amounts paid by B to A require that the organization answer

“Yes” on line 5 and complete Schedule J (Form 990) about A.

Example 2. C is an attorney employed by a law firm that isn't

a related organization to the organization. The organization and

the law firm enter into an arrangement where C serves the

organization, a section 501(c)(3) legal aid society pro bono, on a

full-time basis as its vice president and as a board member while

continuing to receive her regular compensation from the law firm.

The organization doesn't provide any compensation to C for the

services provided by C to the organization, and doesn't report

C's compensation on Form W-2, Form 1099-NEC, or Form

1099-MISC. The law firm doesn't treat any part of C's

compensation as a charitable contribution to the legal aid

society. Under these circumstances, the amounts paid by the law

firm to C don't require that the organization answer “Yes” on

line 5 about C. Also, nothing in these facts would prevent C from

qualifying as an independent member of the organization's

governing body for purposes of Form 990, Part VI, line 1b.

Example 3. D, a volunteer director of the organization, is

also the sole owner and CEO of M management company (an

unrelated organization), which provides management services to

the organization. The organization pays M an annual fee of

$150,000 for management services. Under the circumstances,

the amounts paid by M to D (in the capacity as owner and CEO

of M) don't require that the organization answer “Yes” on line 5

regarding D. However, the organization must report the

transaction with M, including the relationship between D and M,

on Schedule L (Form 990), Part IV. Also, D doesn't qualify as an

independent member of the organization's governing body

because D receives indirect financial benefits from the

organization through M that are reportable on Schedule L (Form

990), Part IV.

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Section B. Five Highest Compensated

Independent Contractors

Complete this table for the five highest compensated

independent contractors that received more than $100,000 in

compensation for services, whether professional or other

services, from the organization. Independent contractors include

organizations as well as individuals and can include professional

fundraisers, law firms, accounting firms, publishing companies,

management companies, and investment management

companies. Don't report public utilities or insurance providers as

independent contractors. See Pub. 1779,

and Pub. 15-A,

Employer's Supplemental Tax Guide, for distinguishing

employees from independent contractors.

Column (C). Enter the amount the organization paid, whether

reported in box 1 of Form 1099-NEC, in box 6 of Form

1099-MISC, or paid under the parties' agreement or applicable

state law, for the calendar year ending with or within the

organization's tax year.

For a short year return in which there is no calendar year that

ends with or within the short year, don't report any information in

columns (A) through (C), unless the return is a final return. If the

return is a final return, report the compensation paid to the

independent contractor(s) under the parties' agreement during

the short year or the compensation that is reportable

compensation on Form 1099 for the short year, whether or not

Form 1099 has been filed yet to report such compensation.

Compensation includes fees and similar payments to

independent contractors but not reimbursement of expenses

unless incidental to providing the service. However, for this

purpose, the organization must report gross payments to the

independent contractor that include expenses and fees if the

expenses aren't separately reported to the organization.

Form 1099-NEC and/or Form 1099-MISC may be

required to be issued for payments to an independent

contractor, with compensation reported in box 1 of Form

1099-NEC and/or box 6 of Form 1099-MISC.

Part VIII. Statement of Revenue

Check the box in the heading of Part VIII if Schedule O (Form

990) contains any information pertaining to this part.

Column (A). All organizations must complete column (A),

reporting their gross receipts for all sources of revenue. All

organizations (except section 527 political organizations) must

complete columns (B) through (D), which must add up to the

amount in column (A) for each line in Part VIII. Refer to the

specific instructions in this part for completing each column.

If the organization enters an amount in column (A) for

lines 2a through 2e or lines 11a through 11c, it must also

enter a corresponding business activity code from

Business Activity Codes, later. If none of the listed codes, or

other 6-digit codes listed on the North American Industry

Classification System (NAICS) website at 2022 NAICS Census

Chart, accurately describe the activity, enter “900099.” Use of

these codes doesn't imply that the business activity is unrelated

to the organization's exempt purpose. For nonstore retailers,

select the principal business activity (PBA) code by the primary

product that your establishment sells. For example,

establishments primarily selling prescription and

non-prescription drugs, select PBA code 456110

Pharmacies

and drug retailers.

Column (B). In column (B), report all revenue from activities

substantially related to the organization's exempt purposes. Use

of revenue for the organization's exempt purposes doesn't make

the activity that produced the income (for example, fundraising

activity) substantially related to the organization's exempt

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purposes. Also report here any revenue that is excludable from

gross income other than by section 512, 513, or 514, such as

interest on state and local bonds that is excluded from tax by

section 103.

Column (C). In column (C), report any unrelated business

revenue received by the organization during the tax year from

unrelated trade or business, unless that revenue is

reportable in Part VIII, column (D). See Pub. 598 and the

Instructions for Form 990-T for more information.

A section 501(c)(3) organization that is an S corporation

shareholder must treat all allocations of income from the

S corporation as

unrelated business income. Gain on

the disposition of stock is also treated as unrelated business

income. See section 512(e).

Column (D). In column (D), report any revenue excludable from

unrelated business income by section 512, 513, or 514.

Examples of such revenue include receipts from the sale of

donated merchandise, interest (unless debt-financed), and

receipts from bingo games.

Neither Form 5500 nor DOL Forms LM-2 or LM-3, Labor

Organization Annual Report, should be substituted for the Form

990, Part VIII or IX.

Line 1. In General

On lines 1a through 1f, report cash and noncash amounts

received as voluntary contributions, gifts, grants, or other

similar amounts from the general public, governmental units,

foundations, and other exempt organizations. The general public

includes individuals, corporations, trusts, estates,

and other

entities. Voluntary contributions are payments, or the part of any

payment, for which the payer (donor) doesn't receive fair market

value (

FMV) from the recipient (donee) organization.

Contributions are reported on line 1 regardless of whether they

are deductible by the contributor. The noncash portion of

contributions reported on lines 1a through 1f is also reported on

line 1g.

Report gross amounts of contributions collected in the

organization's name by fundraisers.

Report all expenses of raising contributions on Part IX,

column (D), Fundraising expenses. The organization must enter

on Part IX, line 11e, fees for professional fundraising services

relating to the gross amounts of contributions collected in the

organization's name by professional fundraisers.

Report on line 1 assets contributed to the organization by

another entity in the course of the entity's liquidation, dissolution,

or termination.

Report the value of noncash contributions at the time of the

donation. For example, report the FMV of a donated car at the

time the car was received as a donation.

Don't net losses from uncollectible pledges from prior years,

refunds of contributions and service revenue from prior years, or

reversal of grant expenses from prior years on line 1. Rather,

report any such items as “Other changes in net assets or fund

balances” on Part XI, line 9, and explain on Schedule O (Form

990).

The organization must report any contributions of

conservation easements and other qualified conservation

contributions consistently with how it reports revenue from

such contributions in its books, records, and financial

statements.

Reporting on line 1 according to ASC 958 is generally

acceptable (though not required) for Form 990 purposes, but the

value of donated services or use of materials, equipment, or

facilities may not be reported. An organization that receives a

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grant to be paid in future years should, according to ASC 958,

report the grant's present value on line 1. Accruals of present

value increments to the unpaid grant should be reported on

line 1 in future years.

Contributions don't include the following.

•

Grants, fees, or other support from governmental units,

foundations, or other exempt organizations that represent a

payment for a service, facility, or product that primarily gives

some economic or physical benefit to the payer.

•

The portion of any fundraising solicitation representing

payment for goods, services, or anything else at retail value.

•

Unreimbursed expenses of officers, employees, or

volunteers. (See the explanations of charitable contributions

and employee business expenses in Pub. 526 and Pub. 463,

respectively.)

•

Payments received from employers for welfare benefits under

plans described in sections 501(c)(9), (17), and (18). Report

these amounts on line 2, Program Service Revenue.

•

Donations of services such as the value of donated

advertising space, broadcast air time (including donated public

service announcements), or discounts on services or donations

of use of materials, equipment, or facilities, even though

reporting donated services and facilities as items of revenue and

expense is called for in certain circumstances by GAAP. The

optional reporting of donated services and facilities is discussed

in the instructions for Form 990, Part III.

Example 1. A hotel in a city's entertainment district donates

100 “right to use” certificates covering 15 hotel rooms a night to

disaster relief organization B. B then uses these certificates as

emergency housing in furtherance of its exempt purposes. B

shouldn't report the value of this contribution on line 1 (or on any

other line in Part VIII), because this is a donation of services and

use of facilities to B. Similarly, if B were to auction off the

certificates as part of a fundraising event, B shouldn't report the

value of the contributed certificates on line 1 (or on any other line

in Part VIII). Rather, it should report gross income from the

auction on Part VIII, line 8a.

Example 2. Organization C purchases 100 “right to use”

certificates (as described in

Example 1 above) from the hotel,

then contributes them to disaster relief organization B and

designates that they be used for disaster relief purposes. B

should report the FMV of these certificates on line 1. If B were to

auction off the certificates as part of a fundraising event, then

use the proceeds for disaster relief purposes, B should report the

gross income from the auction on Part VIII, line 8a; report the

FMV of the contributed certificates on line 8b; and report the

difference between lines 8a and 8b on line 8c.

Line 1a. Enter on line 1a the total amount of contributions

received indirectly from the public through solicitation campaigns

conducted by federated fundraising agencies and similar

fundraising organizations (such as from a United Way

organization). Federated fundraising agencies normally conduct

fundraising campaigns within a single metropolitan area or some

part of a particular state, and allocate part of the net proceeds to

each participating organization on the basis of the donors'

individual designations and other factors.

Federated fundraising agencies must, like all other filers,

identify the sources of contributions made to them on

lines 1a through 1g.

Line 1b. Report on line 1b membership dues and assessments

that represent contributions from the public rather than

payments for benefits received or payments from affiliated

organizations.

Example. M is an organization whose primary purpose is to

support the local symphony orchestra. Members have the

privilege of purchasing subscriptions to the symphony's annual

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concert series before they go on sale to the general public, but

must pay the same price as any other member of the public.

They are also entitled to attend a number of rehearsals each

season without charge. Under these circumstances, M's receipts

from members are contributions reported on line 1b.

Membership dues that aren't contributions because they

compare reasonably with available benefits are reported on

line 2,

Program Service Revenue.

Membership dues can consist of both contributions and

payment for goods and services. In that case, the portion of the

membership dues that is a payment for goods or services should

be reported on line 2,

Program Service Revenue. The portion

that exceeds the FMV of the goods or services provided should

be reported on line 1b.

The portion of membership dues attributable to certain

membership benefits that are considered to be insubstantial (for

example, low-cost articles, free or discounted admission to the

organization's activities, discounts on purchases from the

organization's gift shop, free or discounted parking) may be

reported as contributions on line 1, rather than as payments for

goods or services on line 2. See Pub. 1771, Charitable

Contributions—Substantiation and Disclosure Requirements, for

more information on insubstantial membership benefits that

need not be valued or reported.

Line 1c. Enter the total amount of contributions received from

fundraising events, which includes, but isn't limited to, dinners,

auctions, and other events conducted for the sole or primary

purpose of raising funds for the organization's exempt activities.

Report contributions received from gaming activities on line 1f,

not on line 1c.

Example. An organization holds a dinner, charging $400 per

person for the meal. The dinner has a retail value of $160. A

person who purchases a ticket is really purchasing the dinner for

$160 and making a contribution of $240. The contribution of

$240, which is the difference between the buyer's payment and

the retail value of the dinner, would be reported on line 1c and

again on line 8a (within parentheses). The revenue received

($160 retail value of the dinner) would be reported in the

right-hand column on line 8a.

If a contributor gives more than $160, that person would be

making a contribution of the difference between the dinner's

retail value of $160 and the amount actually given. Rev. Rul.

67-246, 1967-2 C.B. 104, as distinguished by Rev. Rul. 74-348,

1974-2 C.B. 80, explains this principle in detail. See also the

instructions for lines 8a through 8c and Pub. 526.

Organizations that report more than $15,000 total on lines 1c

and 8a must also answer “Yes” on Part IV, line 18, and complete

Part II of Schedule G (Form 990).

Line 1d. Enter on line 1d amounts contributed to the

organization by related organizations. Don't report amounts

reportable on line 1a.

Line 1e. Enter the total amount of contributions in the form of

grants or similar payments from local, state, or federal

government sources, as well as foreign governments. Include

grant amounts from U.S. territories.

Whether a payment from a governmental unit is labeled a

“grant” or a “contract” doesn't determine where the payment

should be reported on Part VIII. Rather, a grant or other payment

from a governmental unit is reported here if its primary purpose

is to enable the organization to provide a service to, or maintain

a facility for, the direct benefit of the public rather than to serve

the direct and immediate needs of the governmental unit. In

other words, the payment is recorded on line 1e if the general

public receives the primary and direct benefit from the payment

and any benefit to the governmental unit is indirect and

insubstantial as compared to the public benefit.

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The following are examples of governmental grants and other

payments that are treated as contributions and reported on

line 1e.

•

Payments by a governmental unit for the construction or

maintenance of library or museum facilities open to the public.

•

Payments by a governmental unit to nursing homes to provide

care to their residents (but not Medicare/Medicaid or similar

payments made on behalf of the residents).

•

Payments by a governmental unit to child placement or child

guidance organizations under government programs to better

serve children in the community.

Line 1f. Enter all other contributions, gifts, and similar

amounts the organization received from sources not reported

separately on lines 1a through 1e. This amount includes

contributions from donor advised funds (unless the

sponsoring organization is a related organization) and from

gaming activities. For a section 501(c)(21) trust, enter the total

contributions received under section 192 from the coal mine

operator who established the trust. Contributions to the trust

must be in cash or property of the type in which the trust is

permitted to invest (for example, public debt securities of the

United States, obligations of a state or local government that are

not in default as to principal or interest, or time and demand

deposits in a bank or insured credit union as described in section

501(c)(21)(D)(ii)).

Line 1g. Enter on line 1g the value of noncash contributions

included on lines 1a through 1f. If this amount exceeds $25,000,

the organization must answer “Yes” on Part IV, line 29, and

complete and attach Schedule M (Form 990).

Noncash contributions are anything other than cash, checks,

money orders, credit card charges, wire transfers, and other

transfers and deposits to a cash account of the organization.

Value noncash donated items, like cars and securities, as of the

time of their receipt, even if they were sold immediately after they

were received.

Example. A charity receives a gift of stock from an unrelated

donor. The stock is delivered to the charity's broker, who sells it

on the same day and remits the sales proceeds, net of

commissions, to the charity. The value of the stock at the time of

the contribution must be reported on line 1f and also on line 1g.

The sale of the stock, and the related sales expenses (including

the amounts reported on lines 1f and 1g), must be reported on

lines 7a through 7d.

Museums and other organizations that elect not to

capitalize their collections (according to ASC

958-360-45) shouldn't report an amount on line 1g for

works of art and other collection items donated to them.

For more information on noncash contributions, see the

instructions for Schedule M (Form 990).

Line 1h. Enter on line 1h the total of lines 1a through 1f (but not

line 1g).

The organization may also need to attach Schedule B

(Form 990) to report certain contributors and their

contributions. See the instructions for Schedule B

(Form 990) for more information.

Line 2. On lines 2a through 2e, enter the organization's five

largest sources of program service revenue. Program services

are primarily those that form the basis of an organization's

exemption from tax. For a more detailed description of program

service revenue, refer to the instructions for Part IX, column (B).

On line 2f, enter the total received from all other sources of

program service revenue not listed individually on lines 2a

through 2e. On line 2g, enter the total of column (A), lines 2a

through 2f.

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Program service revenue.

Program service revenue includes

income earned by the organization for providing a government

agency with a service, facility, or product that benefited that

government agency directly rather than benefiting the public as a

whole. Program service revenue also includes tuition received by

a school; revenue from admissions to a concert or other

performing arts event or to a museum; royalties received as

author of an educational publication distributed by a commercial

publisher; interest income

on loans a credit union makes to its

members; payments received by a section 501(c)(9)

organization from participants or employers of participants for

health and welfare benefits coverage; insurance premiums

received by a fraternal beneficiary society; and registration fees

received in connection with a meeting or convention.

Program-related investments. Program service revenue also

includes income from program-related investments. These

investments are made primarily to accomplish an exempt

purpose of the investing organization rather than to produce

income. Examples are scholarship loans and low-interest loans

to charitable organizations, indigents, or victims of a disaster.

Rental income from an exempt function is another example of

program-related investment income. For purposes of this return,

report all rental income from an affiliated organization on line 2.

Unrelated trade or business activities. Unrelated trade or

business activities (not including any fundraising events or

fundraising activities) that generate fees for services can also

be program service activities. A social club, for example, should

report as program service revenue the fees it charges both

members and nonmembers for the use of its tennis courts and

golf course.

Sales of inventory items by hospitals, colleges, and univer-

sities. Books and records maintained according to GAAP for

hospitals, colleges, and universities are more specialized than

books and records maintained according to those accounting

principles for other types of organizations that file Form 990.

Accordingly,

hospitals, colleges, and universities can report, as

program service revenue on line 2, sales of inventory items

otherwise reportable on line 10a. In that event, enter the

applicable cost of goods sold as program service expenses in

column (B) of Part IX. No other organizations should report sales

of inventory items on line 2.

Common types of program service revenue.

•

Medicare and Medicaid payments, and other government

payments made to pay or reimburse the organization for medical

services provided to individuals who qualify under a government

program for the services provided, and who select the service

provider. See Rev. Rul. 83-153, 1983-2 C.B. 48.

•

Payments for medical services by patients and their

guarantors.

•

Fees and contracts from government agencies for a service,

facility, or product that primarily benefited the government

agencies.

Example 1. A payment by a governmental agency to a

medical clinic to provide vaccinations to the general public is a

contribution reported on line 1e. A payment by a governmental

agency to a medical clinic to provide vaccinations to employees

of the agency is program service revenue reported on line 2.

Example 2. A payment by a governmental agency to an

organization to provide job training and placement for disabled

individuals is a contribution reported on line 1e. A payment by a

governmental agency to the same organization to operate the

agency's internal mail delivery system is program service

revenue reported on line 2.

•

Income from program-related investments. Report interest,

dividends, and other revenues from those investments made

primarily to accomplish the organization's exempt purposes

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rather than to produce income. Examples of program-related

investments include student loans and notes receivable from

other exempt organizations that borrowed the funds to pursue

the filing organization's exempt function.

•

Membership dues and assessments received that compare

reasonably with the membership benefits provided by the

organization.

Organizations described in section 501(c)(5), (6),

or (7) generally provide benefits that have a reasonable

relationship with dues.

Examples of membership benefits include:

•

Subscriptions to publications,

•

Newsletters (other than one only about the organization's

activities),

•

Free or reduced-rate admissions to events sponsored by the

organization,

•

Use of the organization's facilities, and

•

Discounts on articles or services that members and

nonmembers can buy.

For each amount entered on lines 2a through 2e, the

organization must also enter a corresponding business

activity code

from Business Activity Codes, later. If you

don't see a code for the activity you are trying to categorize,

select the appropriate code from the NAICS website at 2022

NAICS Census Chart. Select the most specific 6-digit code

available that describes the activity producing the income. Note

that most codes describe more than one type of activity. Avoid

using codes that describe the organization rather than the

income-producing activity. For example, a credit union reporting

income from consumer lending activities should use code

522291. Sales revenue from a museum gift shop should be

reported with code 459420. An organization providing credit

counseling services should use code 541990. If none of the

listed codes accurately describe the activity, enter “900099.” Use

of these codes doesn't imply that the activity is unrelated to the

organization's exempt purpose.

Line 3. Enter the gross amount of interest income from savings

and temporary cash investments, dividend and interest income

from equity and debt securities (stocks and bonds), and

amounts received from payments on securities loans, as defined

in section 512(a)(5), as well as interest from notes and loans

receivable.

Don't include unrealized gains and losses on

investments carried at FMV. Don't deduct investment

management fees from this amount, but report these fees on

Part IX, line 11f.

Section 501(c)(21) trusts. Use line 3 to report income from

“qualified investments” as defined in section 501(c)(21)(D)(ii)

(public debt securities of the United States; obligations of a state

or local government which are not in default as to principal or

interest; and time or demand deposits in a bank (as defined in

section 581) or an insured credit union (within the meaning of

section 101(7) of the Federal Credit Union Act, 12 U.S.C.

1752(7)) located in the United States).

Line 4. Enter all investment income actually or constructively

received from investing the proceeds of a tax-exempt bond

issue, which are under the control of the organization. For this

purpose, don't include any investment income received from

investing proceeds that are technically under the control of the

governmental issuer. For example, proceeds deposited into a

defeasance escrow that is irrevocably pledged to pay the

principal and interest (debt service) on a bond issue isn't under

the control of the organization.

Line 5. Enter on line 5 royalties received by the organization

from licensing the ongoing use of its property to others. Typically,

royalties are received for the use of intellectual property, such as

patents and trademarks. Royalties also include payments to the

owner of the property for the right to exploit natural resources on

the property, such as oil, natural gas, or minerals.

CAUTION

Line 6a.

Enter on line 6a the rental income received for the year

from investment property and any other real property rented by

the organization. Allocate revenue to real property and personal

property in the spaces provided. Don't include on line 6a rental

income related to the filing organization's exempt function

(program service). Report such income on line 2. For example,

an exempt organization whose exempt purpose is to provide

low-rental housing to persons with low income would report that

rental income as program service revenue on line 2.

Only for purposes of completing this return, the filing

organization must report any rental income received from an

affiliated exempt organization as program service revenue on

line 2.

Rental revenue can be from an activity that is related or

unrelated to the organization's exempt purpose. In general, rents

from real property are excluded in computing unrelated

business income, while rental income from personal property is

included. There are special rules when rents are received from

personal property leased with real property (a mixed lease). In

general, rental revenue from real property is excluded from

unrelated business revenue when:

•

The determination of the amount of such rents isn't based on

income or net profits derived by any person from the property

leased other than an amount based on a fixed percentage of the

gross receipts or sales;

•

The lease doesn't include personal services other than

customary ones such as trash removal and cleaning of public

areas;

•

Any portion attributable to personal property is 10% or less of

the total rent; and

•

The real property isn't debt-financed within the meaning of

section 512, 513, or 514. (Rent from debt-financed real property

is generally includible in unrelated business income, but there

can be exceptions based on use of the property. See Pub. 598.)

Rent received from leased personal property is generally

taxable except when leased with real property, and the rent

attributable to the personal property doesn't exceed 10% of the

total rents from all leased property.

Line 6b. Enter on line 6b the expenses paid or incurred for the

income reported on line 6a. Include interest related to rental

property and depreciation if it is recorded in the organization's

books and records. If the organization reported on line 2 any

rental income reportable as program service revenue, report any

rental expense allocable to such activity on the applicable lines

of Part IX, column (B).

Line 6c. Subtract line 6b from line 6a for both columns (i) and

(ii) and enter on line 6c. Show any loss in parentheses.

Line 6d. Add line 6c, columns (i) and (ii), and enter on line 6d.

Show any loss in parentheses.

Lines 7a through 7d. Enter on lines 7a through 7c all sales of

securities in column (i). Use column (ii) to report sales of all

other types of investments (such as real estate, royalty interests,

or partnership interests) and all other non-inventory assets (such

as program-related investments and fixed assets used by the

organization in its related and unrelated activities).

On line 7a, for each column, enter the total gross sales price

of all such assets. Total the cost or other basis (less

depreciation) and selling expenses and enter the result on

line 7b. On line 7c, enter the gain or loss. Show any loss in

parentheses.

On lines 7a and 7c, also report capital gains dividends, the

organization's share of capital gains and losses from a joint

venture, and capital gains distributions from trusts.

Combine the gain or loss figures reported on line 7c, columns

(i) and (ii), and report that total on line 7d. Show any loss in

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parentheses. Don't include any unrealized gains or losses on

securities carried at FMV in the books of account.

For reporting sales of securities on Form 990, the

organization can use the more convenient average cost basis

method to figure the organization's gain or loss. When a security

is sold, compare its sales price with the average cost basis of the

particular security to determine gain or loss. However, for

reporting sales of securities on Form 990-T, don't use the

average cost basis to determine gain or loss.

The organization should maintain books and records to

substantiate information about any securities or other assets

sold for which market quotations weren't published or weren't

otherwise readily available. The recorded information should

include:

•

A description of the asset;

•

Date acquired;

•

Whether acquired by donation or purchase;

•

Date sold and to whom sold;

•

Gross sales price;

•

Cost, other basis, or, if donated, value at time acquired;

•

Expense of sale and cost of improvements made after

acquisition; and

•

Depreciation since acquisition, if depreciable property.

Line 8a. Enter in the line 8a box the gross income from

fundraising events, not including the amount of contributions

from fundraising events reported on line 1c. Report the line 1c

amount in the line 8a parenthetical. If the sum of the amounts

reported on line 1c and the line 8a box exceeds $15,000, then

the organization must answer “Yes” on Part IV, line 18, and

complete Schedule G (Form 990), Part II. If gaming is conducted

at a fundraising event, the income and expenses must be

allocated between the gaming and the fundraising event on Form

990, Part VIII; report all income from gaming on line 9a.

Compute the organization's gross income from fees, ticket

sales, or other revenue from

fundraising events.

Fundraising events include:

Fundraising events don't include:

• Dinners/dances, • Sales or gifts of goods or services of

only nominal value,

• Door-to-door sales of merchandise, • Raffles or lotteries in which prizes

have only nominal value, and

• Concerts, • Solicitation campaigns that generate

only contributions.

• Carnivals,

• Sports events, and Proceeds from these activities are

considered contributions and should

be reported on line 1f.

• Auctions.

Fundraising events don't include events or activities that

substantially further the organization's exempt purpose even if

they also raise funds. Revenue from such program service

activities is reported on line 2.

Example. An organization formed to promote and preserve

folk music and related cultural traditions holds an annual folk

music festival featuring concerts, handcraft demonstrations, and

similar activities. Because the festival directly furthers the

organization's exempt purpose, income from ticket sales should

be reported on line 2 as program service revenue.

Fundraising events sometimes generate both contributions

and income, such as when an individual pays more than the

retail value for the goods or services furnished. Report in

parentheses the total amount from fundraising events that

represents contributions rather than payment for goods or

services.

Treat the following as contributions.

•

Amounts paid in excess of retail value of goods or services

furnished. See Example, earlier, under Line 1c.

•

Amounts received from fundraising events when the

organization gives items of only nominal value to recipients. See

Pub. 1771.

Example. In return for a contribution of any amount, donors

receive a keychain with the organization's logo. All amounts

received should be reported as contributions on line 1f and all

associated expenses on the appropriate lines in Part IX, column

(D). In such a case, no amounts would be reported on line 8.

Line 8b. Enter on this line both the cost or other basis of any

items sold at the events and the expenses that relate directly to

the production of the revenue portion of the fundraising

activity,

whether incurred before, during, or after the event. In the line 1c

dinner example referred to earlier, the cost of the food and

beverages served and invitation to the dinner would be among

the items reported on line 8b. Indirect fundraising expenses,

such as certain advertising expenses associated with raising

these

contributions, must be reported on the appropriate lines

in Part IX, column (D), and not on line 8b.

Line 8c. Enter on line 8c the difference between lines 8a and

8b. Show any loss in parentheses. The organization must report

net income from fundraising events as unrelated business

revenue (column (C)) or as revenue excluded from tax under

section 512, 513, or 514 (column (D)).

Example 1. If an organization receives a donation of a home

theater system with an FMV of $5,000 at the time of donation;

sells the system for $7,500 at an auction, after having displayed

the system and its FMV (which remains $5,000) at and before

auction so that its value was known to the bidders; and incurs

$500 in costs related to selling the system at auction, it should

report the following amounts in Part VIII.

Line 1c (

contributions from

fundraising events): $2,500

Line 1f (all other contributions): $5,000

Line 1g (noncash contributions): $5,000

Line 8a (gross income from

fundraising events): $5,000

Line 8a parenthetical (contributions

reported on line 1c): $2,500

Line 8b (direct expenses: $5,000 FMV

on donation date + $500 in auction

costs): $5,500

Line 8c (net income from fundraising

event, line 8a minus line 8b): ($500)

Example 2. If the home theater system in Example 1 sold at

auction for $2,500 instead of $7,500, and all other facts in

Example 1 remain the same, then the organization should report

the following amounts in Part VIII.

Line 1c (

contributions from

fundraising events): $0

Line 1f (all other contributions): $5,000

Line 1g (noncash contributions): $5,000

Line 8a (gross income from

fundraising events): $2,500

Line 8a parenthetical (contributions

reported on line 1c): $0

Line 8b (direct expenses: $5,000 FMV

on donation date + $500 in auction

costs): $5,500

Line 8c (net income from fundraising

event, line 8a minus line 8b): ($3,000)

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In both Example 1 and Example 2, the organization would

need to report the $5,000 value of this contribution on

Schedule M (Form 990) if it received over $25,000 in total

noncash contributions during the tax year.

Line 9a. Line 9a should include only gross income from

gaming activities. It shouldn't include contributions from

gaming activities, which should be reported on line 1f.

Organizations that report more than $15,000 on line 9a must

also answer “Yes” on Part IV, line 19, and complete Part III of

Schedule G (Form 990).

Types of gaming include, but aren't limited to:

- Bingo - Nevada Club tickets

- Pull tabs - Certain Casino nights

- Instant bingo - Certain Las Vegas nights

- Raffles - Coin-operated

gambling devices

including:

- Scratch-offs • Slot machines

- Charitable gaming tickets • Electronic video

slot or line games

- Break-opens • Video poker

- Hard cards • Video blackjack

- Banded tickets • Video keno

- Jar tickets • Video bingo

- Pickle cards • Video pull tab

games

Many games of chance are taxable. Income from bingo

games isn’t generally subject to the tax on unrelated business

income if the games meet the legal definition of bingo. For a

game to meet the legal definition of bingo, wagers must be

placed, winners must be determined, and prizes or other

property must be distributed in the presence of all persons

placing wagers in that game.

A wagering game that doesn't meet the legal definition of

bingo doesn't qualify for the exclusion, regardless of its name.

For example, instant bingo, in which a player buys a

pre-packaged bingo card with pull tabs that the player removes

to determine if she or he is a winner, doesn't qualify. See Pub.

598.

Line 9b. Enter on this line the expenses that relate directly to

the production of the revenue portion of the gaming activity.

Direct expenses of gaming include:

•

Cash prizes;

•

Noncash prizes;

•

Compensation to bingo callers and workers;

•

Rental of gaming equipment; and

•

Cost of gaming supplies such as pull tabs, bingo cards, etc.

Line 9c. Enter the difference between lines 9a and 9b. Show

any loss in parentheses.

Line 10a. Enter the organization's gross income from sales of

inventory items, less returns and allowances. Sales of inventory

items reportable on line 10a are sales of items that are donated

to the organization, that the organization makes to sell to others,

or that it buys for resale. Sales of inventory don't, however,

include the sale of goods related to a

fundraising event, which

must be reported on line 8. Sales of investments on which the

organization expected to profit by appreciation and sale aren't

reported here. Report sales of investments on line 7.

The organization must report the sales revenue regardless of

whether the sales activity is an exempt function of the

organization or an unrelated trade or business.

Line 10b. Enter the cost of goods sold related to the sales of

inventory. The usual items included in cost of goods sold are

direct and indirect labor, materials and supplies consumed,

freight-in, and a portion of overhead expenses. Marketing and

distribution costs aren't included in the cost of goods sold but are

reported as expenses in Part IX. For purposes of Part VIII, the

organization may include as cost of donated goods their FMVs

at the time of acquisition.

Line 10c. Enter in the appropriate columns (A) through (D) the

net income or (loss) from the sale of inventory items. Show any

loss in parentheses.

Line 11. Enter all other types of revenue not reportable on lines

1 through 10. Enter the three largest sources on lines 11a

through 11c and all other revenue on line 11d.

For each amount entered on lines 11a, 11b, and 11c, the

organization must also enter a corresponding business

activity code from Business Activity Codes, later. If you

don't see a code for the activity you are trying to categorize,

select the appropriate code from the NAICS website at

2022

NAICS Census Chart. Select the most specific 6-digit code

available that describes the activity producing the income. Note

that most codes describe more than one type of activity. Avoid

using codes that describe the organization rather than the

income-producing activity. If none of the listed codes accurately

describe the activity, enter “900099.” Use of these codes doesn't

imply that the activity is unrelated to the organization's exempt

purpose.

Line 12. For column (A), add lines 1h, 2g, 3 through 5, 6d, 7d,

8c, 9c, 10c, and 11e. For columns (B) through (D), add lines 2a

through 2f, 3, 4, 5, 6d, 7d, 8c, 9c, 10c, and 11a through 11d. The

amounts reported on line 12 in columns (B), (C), and (D), plus

the amount reported on line 1h, should equal line 12, column (A).

Part IX. Statement of Functional

Expenses

Check the box in the heading of Part IX if Schedule O (Form 990)

contains any information pertaining to this part.

Use the organization's normal accounting method to

complete this section. If the organization's accounting system

doesn't allocate expenses, the organization can use any

reasonable method of allocation. The organization must report

amounts accurately and document the method of allocation in its

records. Report any expense described on lines 1–23 on the

appropriate line; don't report such expense on line 24. Don't

report in Part IX expenses that must be reported on line 6b, 7b,

8b, 9b, or 10b in Part VIII.

Column (A)—Total

Section 501(c)(3) and 501(c)(4) organizations must complete

columns (A) through (D).

All other organizations must complete column (A) but can

complete columns (B), (C), and (D).

State reporting requirements can be different from IRS

reporting requirements applicable to Part IX.

Column (B)—Program Services

Program services are mainly those activities that further the

organization's exempt purposes. Fundraising expenses shouldn't

be reported as program service expenses even though one of

the organization's purposes is to solicit contributions.

Include lobbying expenses in this column if the lobbying is

directly related to the organization's exempt purposes.

Example. Foundation M, an organization exempt under

section 501(c)(3), has the exempt purpose of improving health

care for senior citizens. Foundation M operates in State N. The

legislature of State N is considering legislation to improve

funding of health care for senior citizens. Foundation M lobbies

TIP

CAUTION

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state legislators in support of the legislation. Since this lobbying

is directly related to Foundation M's exempt purpose, it would be

considered an exempt function expense, and would be included

under column (B).

Program services can also include the organization's

unrelated trade or business activities. Publishing a magazine

is a program service even though the magazine contains both

editorials and articles that further the organization's exempt

purpose as well as advertising, the income from which is taxable

unrelated business income.

Also include costs to secure a grant, or contract, to conduct

research, produce an item, or perform a program service, if the

activities are conducted to meet the grantor’s or other

contracting party’s specific needs.

Don't report these costs as

fundraising expenses in column (D). Costs to solicit restricted or

unrestricted grants to provide services to the general public

should be reported in column (D).

Column (C)—Management and General

Use column (C) to report expenses that relate to the

organization's overall operations and management, rather than

to fundraising activities or program services. Overall

management usually includes the salaries and expenses of the

organization's CEO and his or her staff, unless a part of their

time is spent directly supervising program services or

fundraising activities. In that case, their salaries and expenses

should be allocated among management, fundraising, and

program services.

Expenses incurred to manage investments must be reported

in column (C).

Lobbying expenses should be reported in this

column if they don't directly relate to the organization's exempt

purposes.

Organizations must also report the following in column (C):

costs of board of directors meetings; committee meetings and

staff meetings (unless they involve specific program services or

fundraising activities); general legal services; accounting

(including patient accounting and billing); general liability

insurance; office management; auditing, human resources, and

other centralized services; preparation, publication, and

distribution of an annual report; and management of

investments.

However, report expenses related to the production of

program-related income in column (B) and expenses related to

the production of rental income on Part VIII, line 6b. Rental

expenses incurred for the organization's office space or facilities

are reported on line 16.

Don't use this column to report costs of special meetings or

other activities that relate to fundraising or specific program

services.

Column (D)—Fundraising

Fundraising expenses are the expenses incurred in soliciting

cash and noncash contributions, gifts, and grants. Report as

fundraising expenses all expenses, including allocable overhead

costs, incurred in (a) publicizing and conducting fundraising

campaigns; and (b) soliciting bequests and grants from

individuals, foundations, other organizations, or governmental

units that are reported on Part VIII, line 1. This includes

expenses incurred in participating in federated fundraising

campaigns; preparing and distributing fundraising manuals,

instructions, and other materials; and preparing to solicit or

receive contributions. Report direct expenses of fundraising

events on Part VIII, line 8b, rather than in Part IX, column (D).

However, report indirect expenses of fundraising events, such as

certain advertising expenses, in Part IX, column (D), rather than

on Part VIII, line 8b.

Example.

For an employee who works on fundraising 40% of

the time and program management 60% of the time, an

organization must allocate that employee's salary 40% to

fundraising and 60% to program service expenses. It can’t report

the 100% of salary as program expenses simply because the

employee spent over 50% of his time on program management.

Allocating Indirect Expenses

Direct costs are expenses that can be identified specifically with

an organization's activity or project, and can be assigned to an

activity or project with a high degree of accuracy. Indirect costs

are costs that can't be identified specifically with an activity or

project. For example, a computer bought by a university

specifically for a research project is a direct cost. In contrast, the

costs of software licensing for programs that run on all the

university's computers are indirect costs.

Colleges, universities, hospitals, and other organizations that

incur indirect expenses in various cost centers (such as

organizational memberships, books and subscriptions, and

regular telecommunications costs) can allocate and report such

expenses in the following manner.

1. Report the expenses of all indirect cost centers in column

(C), lines 5 through 24.

2. As a separate line item of line 24, enter “Allocation of

[name of indirect cost center] expenses.”

a. If any of the cost center's expenses are allocated to

expenses listed in Part VIII such as the expenses attributable to

fundraising events and activities, enter such expenses as a

negative figure in columns (A) and (C).

b. Allocate expenses to column (B) or (D) as positive

amounts.

c. Add the amounts in columns (B) and (D) and enter the

sum as a negative offsetting amount in column (C). Don't make

any entries in column (A) for these offsetting entries.

Example. An organization reports in column (C) $50,000 of

its actual management and general expenses and $100,000 of

expenses of an indirect cost center that are allocable in part to

other functions. The total of lines 5 through 24 of column (C)

would be $150,000 before the indirect cost center allocations

were made. Assume that of the $100,000 total expenses of the

cost center, $10,000 was allocable to fundraising; $70,000 to

various program services; $15,000 to management and general

functions; and $5,000 to special events and activities. To report

this in Part IX under this optional method:

1. Indicate the cost center, the expenses of which are being

allocated, on line 24 as “Allocation of [specify the indirect cost

center] expenses”;

2. Enter a decrease of $5,000 on the same line in column

(A), Total expenses, representing the fundraising event

expenses that were already reported in Part VIII, line 8b;

3. Enter $70,000 on the same line in column (B), Program

service expenses;

4. Enter $10,000 on the same line in column (D),

Fundraising expenses; and

5. Enter a decrease of $85,000 on the same line in column

(C), Management and general expenses, to represent the

allocations to functional areas other than management and

general.

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After making these allocations, the column (C), line 25, total

functional expenses would be $65,000, consisting of the

$50,000 actual management and general expense amount and

the $15,000 allocation of the aggregate cost center expenses to

management and general.

The above is an example of a one-step allocation that shows

how to report the allocation in Part IX. This reporting method

would actually be more useful to avoid multiple-step allocations

involving two or more cost centers. Without this optional

reporting method, the total expenses of the first cost center

would be allocated to the other functions and might include an

allocation of part of these expenses to another cost center. The

expenses of the second cost center would then be allocated to

other functions and, perhaps, to other cost centers, and so on.

The greater the number of these cost centers that are allocated

out, the more difficult it is to preserve the object classification

identity of the expenses of each cost center (for example,

salaries, interest, supplies, etc.). Using the reporting method

described above avoids this problem.

The intent of the above instructions is only to facilitate

reporting indirect expenses by both object classification

and function. These instructions don't authorize the

allocation to other functions of expenses that should be reported

as management and general expenses.

Grants and Other Assistance to

Governments, Organizations, and

Individuals

Organizations should report the amount of grants and other

assistance on lines 1 through 3. Report expenses incurred in

selecting recipients or monitoring compliance with the terms of a

grant or award on lines 5 through 24. See the following

instructions.

Note. Organizations can report this information according to

ASC 958 but aren't required to do so. For example, an

organization that follows ASC 958 and makes a grant during the

tax year to be paid in future years should report the grant's

present value on this year's Form 990 and report accruals of

additional value increments in future years.

Line 1. Enter the amount that the organization, at its own

discretion, paid in grants to domestic organizations and

domestic governments. United Way and similar federated

fundraising organizations

should report grants to member or

participating agencies on line 1. Organizations must report

voluntary grants to state or local affiliates for specific (restricted)

purposes or projects on line 1.

If the organization reported on line 1 more than $5,000 of

grants or other assistance to any domestic organization or

to any

domestic government, the organization must complete

Parts I and II of Schedule I (Form 990).

Section 501(c)(21) trusts. Use line 1 to report amounts paid

by the trust to:

•

The Federal Black Lung Disability Trust Fund pursuant to

section 3(b)(3) of Public Law 95-227, or

CAUTION

•

For insurance exclusively covering liabilities under sections

501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV). For details, see

Regulations section 1.501(c)(21)-1(d).

Line 2. Enter the amount paid by the organization to domestic

individuals in the form of scholarships, fellowships, stipends,

research grants, and similar payments and distributions.

Also include grants and other assistance paid to third-party

providers for the benefit of specified

domestic individuals. For

example, a grant payment to a hospital to cover the medical

expenses of a specific patient must be reported on line 2. By

comparison, a grant to the same hospital to provide services to

the general public or to unspecified charity patients must be

reported on line 1.

If line 2 exceeds $5,000, the organization must complete

Parts I and III of Schedule I (Form 990).

Section 501(c)(21) trusts. Use line 2 to report amounts paid

by the trust to or for the benefit of miners or their beneficiaries.

Line 3. The organization must enter the total amount of grants

and other assistance made to foreign organizations, foreign

governments, and foreign individuals, and to domestic

organizations or domestic individuals for the purpose of

providing grants or other assistance to designated foreign

organizations or foreign individuals.

If line 3 exceeds $5,000, the organization may have to

complete Part II and/or Part III of Schedule F (Form 990),

Statement of Activities Outside the United States. See the

Instructions for Schedule F (Form 990) for more information.

Line 4. Enter the payments made by the organization to provide

benefits to members (such as payments made by an

organization exempt under section 501(c)(8), 501(c)(9), or

501(c)(17) to obtain insurance benefits for members, or

patronage dividends paid by section 501(c)(12) organizations to

their members). Don't report on this line the cost of

employment-related benefits such as health insurance, life

insurance, or disability insurance provided by the organization to

its

officers, directors, trustees, key employees, and other

employees. Report such costs for officers, directors, trustees,

and key employees on Part IX, line 5; report such costs for other

disqualified persons on Part IX, line 6; and report such costs for

other employees on Part IX, lines 8 and 9.

Line 5. Enter the total compensation paid to current officers,

directors, trustees, and key employees (as defined under Part

VII, earlier) for the organization's tax year. Compensation

includes all forms of income and other benefits earned or

received from the filing organization, common paymasters, and

payroll/reporting agents in return for services rendered to the

filing organization, including compensation reported on Forms

W-2 and 1099, pension plan contributions and accruals, and

other employee benefits, but doesn't include non-compensatory

expense reimbursements or allowances. Report all

compensation amounts relating to such an individual, including

those related to services performed in a capacity other than as

an officer, director, trustee, or key employee.

Allocating Indirect Expenses—Example

Line (A) (B) (C) (D)

5–24a $150,000 - $150,000 -

24b Allocation of $100,000 indirect cost center expenses reported in

25 $145,000 $70,000 $65,000 $10,000

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Compensation for Part IX is reported based on the

accounting method and tax year used by the

organization, rather than the definitions and calendar

year used to complete Part VII or Schedule J (Form 990)

regarding compensation of certain officers, directors,

trustees, and other employees.

Note. To the extent the following examples discuss allocation of

expenses in columns (B), (C), and (D), they apply only to filers

required to complete those columns.

Line 6. Section 501(c)(3), 501(c)(4), and 501(c)(29)

organizations must report the total compensation and other

distributions

provided to disqualified persons and persons

described in section 4958(c)(3)(B) to the extent not included on

line 5. See Appendix G.

Compensation includes all forms of income and other

benefits earned or received from the filing organization, common

paymasters, and payroll/reporting agents in return for services

rendered to the filing organization, including compensation

reported on Forms W-2 and 1099, pension plan contributions

and accruals, and other employee benefits, but doesn't include

non-compensatory expense reimbursements or allowances.

Line 7. Enter the total amount of employee salaries, wages,

fees, bonuses, severance payments, and similar amounts paid

or provided from the filing organization, common paymasters,

and payroll/reporting agents in return for services rendered to

the filing organization that aren't reported on line 5 or 6.

Line 8. Enter the employer's share of contributions to, or

accruals under, qualified and nonqualified pension and deferred

compensation plans for the year. The organization should

include contributions made by the filing organization, common

paymasters, and payroll/reporting agents to the filing

organization's sections 401(k) and 403(b) pension plans on

behalf of

employees. However, it shouldn't include contributions

to qualified pension, profit-sharing, and stock bonus plans under

section 401(a) solely for the benefit of current or former

officers,

directors, trustees, key employees, or disqualified persons,

which are reportable on line 5 or 6.

Complete Form 5500 for the organization's plan and file

it as a separate return. If the organization has more than

one pension plan, complete a Form 5500 for each plan.

File the form by the last day of the 7th month after the plan year

ends.

Line 9. Other employee benefits. Enter contributions by the

filing organization, common paymasters, and payroll/reporting

agents to the filing organization's employee benefit programs

(such as insurance, health, and welfare programs that aren't an

incidental part of a pension plan included on line 8), and the cost

of other employee benefits.

For example, report expenses for employee events such as a

picnic or holiday party on line 9. Don't include contributions on

behalf of current or former officers, directors, trustees, key

employees, or other persons that were included on line 5 or 6.

Line 10. Payroll taxes. Enter the amount of federal, state, and

local payroll taxes for the year but only those taxes that are

imposed on the organization as an employer. This includes the

employer's share of social security and Medicare taxes, the

federal unemployment tax (FUTA), state unemployment

compensation taxes, and other state and local payroll taxes.

Don't include on line 10 taxes withheld from employees' salaries

and paid to various governmental units such as federal, state,

and local income taxes and the employees' shares of social

security and Medicare taxes.

Such withheld amounts are

reported as compensation.

TIP

Line 11. Fees for services paid to nonemployees (inde-

pendent contractors). Enter on lines 11a through 11g

amounts for services provided by independent contractors for

management, legal, accounting, lobbying, professional

fundraising services, investment management, and other

services, respectively. Include amounts whether or not a Form

1099 was issued to the independent contractor. Don't include

on line 11 amounts paid to or earned by

employees, officers,

directors, trustees, or disqualified persons for these types of

services, which must be reported on lines 5 through 7.

If the organization is able to distinguish between fees paid for

independent contractor services and expense payments or

reimbursements to the contractor(s), report the fees paid for

services on line 11 and the expense payments or

reimbursements on the applicable lines in Part IX (including

line 24 if no other line is applicable). If the organization is unable

to distinguish between service fees and expense payments or

reimbursements, report all such amounts on line 11.

Line 11a. Management fees. Enter the total fees charged for

management services provided by outside firms and individuals.

Line 11b. Legal fees. Enter the total legal fees charged by

outside firms and individuals. Don't include any penalties, fines,

settlements, or judgments imposed against the organization as a

result of legal proceedings. Report those expenses on line 24.

Report any amounts for lobbying services provided by attorneys

on line 11d.

Line 11c. Accounting fees. Enter the total accounting and

auditing fees charged by outside firms and individuals.

Line 11d. Lobbying fees. Enter amounts for activities intended

to influence foreign, national, state, or local legislation, including

direct

lobbying and grassroots lobbying.

Line 11e. Professional fundraising fees. Enter amounts paid

for professional fundraising services, including solicitation

campaigns and advice or other consulting services supporting

in-house fundraising campaigns.

If the organization is able to

distinguish between fees paid for professional fundraising

services and amounts paid for fundraising expenses such as

printing, paper, envelopes, postage, mailing list rental, and

equipment rental, then fees paid for professional fundraising

services should be reported on line 11e and amounts paid for

fundraising expenses should be reported on line 24 as other

expenses. If the organization is unable to distinguish between

these amounts, it should report all such fees and amounts on

line 11e.

Line 11f. Investment management fees. Enter amounts for

investment counseling and portfolio management. Monthly

account service fees are considered portfolio management

expenses and must be reported here. Don't include transaction

costs such as brokerage fees and commissions, which are

considered sales expenses and are included on Part VIII, line 7b.

Line 11g. Other fees for services. Enter amounts for other

independent contractor services not listed on lines 11a

through 11f. For example, amounts paid to an independent

contractor for advocacy services that don't constitute lobbying

should be reported here. For health care organizations,

payments to health care professionals who are independent

contractors are reported on line 11g. Report on line 11g

payments to payroll agents, common paymasters, and other

third parties for services provided by those third parties to the

filing organization. Report on lines 5–10, as appropriate,

payments that reimburse third parties for compensation to the

organization's

officers, directors, trustees, key employees, or

other employees. Report payments to contractors for

information technology services on line 14, rather than on

line 11g.

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If the amount on line 11g exceeds 10% of the amount in

line 25, column (A), the organization must list the type and

amount of each line 11g expense on Schedule O (Form 990).

Line 12. Advertising and promotion expenses. Enter

amounts paid for advertising. Include amounts for print and

electronic media advertising. Also include Internet site link costs,

signage costs, and advertising costs for the organization's

in-house fundraising campaigns. Include fees paid to

independent contractors for advertising, except for fees paid to

independent contractors for conducting professional

fundraising services or campaigns, which are reported on

line 11e.

Line 13. Office expenses. Enter amounts for supplies (office,

classroom, or other supplies); telephone (cell phones and

landlines) and facsimile; postage (overnight delivery, parcel

delivery, trucking, and other delivery expenses) and mailing

expenses; shipping

materials; equipment rental; bank fees; and

other similar costs. Also include printing costs of a general

nature. Printing costs that relate to conferences or conventions

must be reported on line 19.

Line 14. Information technology. Enter amounts for

information technology, including hardware, software, and

support services such as maintenance, help desk, and other

technical support services. Also include expenses for

infrastructure support, such as website design and operations,

virus protection and other information security programs and

services to keep the organization's website operational and

secured against unauthorized and unwarranted intrusions, and

other information technology contractor services. Report

payments to information technology employees on lines 5

through 10. Report depreciation/amortization related to

information technology on line 22.

Line 15. Royalties. Enter amounts for royalties, license fees,

and similar amounts that allow the organization to use

intellectual property such as patents and copyrights.

Line 16. Occupancy. Enter amounts for the use of office space

or other facilities, including rent; heat, light, power, and other

utilities expenses; property insurance; real estate taxes;

mortgage interest; and similar occupancy-related expenses.

Don't include on line 16 expenses reported as office expenses

(such as telephone expenses) on line 13.

Don't net any rental income received from leasing or

subletting rented space against the amount reported on line 16

for occupancy expenses. If the tenant's activities are related to

the organization's exempt purpose, report rental income as

program service revenue on Part VIII, line 2, and allocable

occupancy expenses on line 16. However, if the tenant's

activities aren't program related, report the rental income on Part

VIII, line 6a, and related rental expenses on Part VIII, line 6b.

Don't include employee salaries or depreciation as

occupancy expenses. These expenses are reported on lines 5

through 7 and 22, respectively.

Line 17. Travel. Enter the total travel expenses, including

transportation costs (fares, mileage allowances, and automobile

expenses), meals and lodging, and per diem payments. Travel

costs include the expenses of purchasing, leasing, operating,

and repairing any vehicles owned by the organization and used

for the organization's activities. However, if the organization

leases vehicles on behalf of its executives or other employees as

part of an executive or employee compensation program, the

leasing costs are considered employee compensation and are

reported on lines 5 through 7.

Line 18. Payments of travel or entertainment expenses for

any federal, state, or local public officials. Enter total

amounts for travel or entertainment expenses (including

reimbursement for such costs) for any federal, state, or local

public officials (as determined under section 4946(c)) and their

family members (as determined under section 4946(d)). Report

amounts for a particular public official only if aggregate

expenditures for the year relating to such official (including family

members of such official) exceed $1,000 for the year.

For expenditures that aren't specifically identifiable to a

particular individual, the organization can use any reasonable

allocation method to estimate the cost of the expenditure to an

individual. Amounts not described above can be included in the

reported total amount for line 18 or can be reported on line 24.

The organization is responsible for keeping records of all travel

and entertainment expenses related to a

government official

whether or not the expenses are reported on line 18 or line 24.

Line 19. Conferences, conventions, and meetings. Enter the

total expenses incurred by the organization in conducting

meetings related to its activities. Include such expenses as

facility rentals, speakers' fees and expenses, and printed

materials. Include the registration fees (but not travel expenses)

paid for sending any of the organization's staff to conferences,

conventions, and meetings conducted by other organizations.

Travel expenses incurred by

officers, directors, and

employees attending such conferences, conventions, and

meetings must be reported on line 17.

Line 20. Interest. Enter the total interest expense for the year.

Don't include any interest attributable to rental property (reported

on Part VIII, line 6b) or any mortgage interest

(reported as an

occupancy expense on line 16).

Line 21. Payments to affiliates. Enter certain types of

payments to organizations affiliated with (closely related to) the

filing organization.

Payments to affiliated state or national organizations.

Dues paid by a local organization to its affiliated state or national

(parent) organization are reported on line 21. Report on this line

predetermined quota support and dues (excluding membership

dues of the type described below) by local agencies to their state

or national organizations for unspecified purposes, that is,

general use of funds for the national organization's own program

and support services.

Purchases from affiliates. Purchases of goods or services

from affiliates aren't reported on line 21 but are reported as

expenses in the usual manner.

Expenses for providing goods or services to affiliates. In

addition to payments made directly to affiliated organizations,

expenses for providing goods or services to affiliates can be

reported on line 21 if:

•

The goods or services provided aren't related to the program

services conducted by the organization furnishing them (for

example, when a local organization incurs expenses in the

production of a solicitation film for the state or national

organization); and

•

The costs involved aren't connected with the management

and general or fundraising functions of the filing organization. For

example, when a local organization gives a copy of its mailing list

to the state or national organization, the expense of preparing

the copy provided can be reported on line 21, but not the

expenses of preparing and maintaining the local organization's

master list.

Voluntary awards or grants to affiliates. Don't report on

line 21 voluntary awards or grants made by the organization to its

state or national organizations for specified purposes.

Membership dues paid to other organizations. Report

membership dues paid to obtain general membership benefits

from other organizations, such as regular services, publications,

and other materials, on line 24. This is the case if a charitable

organization pays dues to a trade association comprised of

otherwise unrelated members.

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Properly distinguishing between payments to affiliates

and grants and allocations is especially important if the

organization uses Form 990 for state reporting purposes.

If the organization uses Form 990 only for reporting to the IRS,

payments to affiliated or national organizations that don't

represent membership dues reportable as miscellaneous

expenses on line 24 can be reported on either line 21 or line 1.

Line 22. Depreciation, depletion, and amortization. If the

organization records depreciation, depletion, amortization, or

similar expenses, enter the total on line 22. Include any

depreciation or amortization of leasehold improvements and

intangible assets. An organization isn't required to use the

Modified Accelerated Cost Recovery System (MACRS) to

compute depreciation reported on Form 990. For an explanation

of acceptable methods for computing depreciation, see Pub.

946, How To Depreciate Property. If an amount is reported on

this line, the organization is required to maintain books and

records to substantiate any amount reported.

Line 23. Insurance. Enter total insurance expenses other than

insurance attributable to rental property (reported on Part VIII,

line 6b). Don't report on this line payments made by

organizations exempt under section 501(c)(8), (9), or (17) to

obtain insurance benefits for members. Report those expenses

on line 4. Don't report on this line the cost of employment-related

benefits such as health insurance, life insurance, or disability

insurance provided by the organization to or for its

officers,

directors, trustees, key employees, and other employees.

Report the costs for officers, directors, trustees, and key

employees on Part IX, line 5; report the costs for other

disqualified persons on Part IX, line 6; and report the costs for

other employees on Part IX, line 9. Report the costs for members

on Part IX, line 4, not on Part IX, line 23. Don't report on this line

property or occupancy-related insurance. Report those

expenses on line 16.

Line 24. Other expenses. Enter the types and amounts of

expenses which weren't reported on lines 1 through 23. Include

expenses for medical supplies incurred by health care/medical

organizations. Include payments by the organization to

professional fundraisers of fundraising expenses such as

printing, paper, envelopes, postage, mailing list rental, and

equipment rental, if the organization is able to distinguish these

expense amounts from fees for professional fundraising services

reportable on line 11e. Enter the four largest dollar amounts on

lines 24a through 24d and the total of all remaining

miscellaneous expenses on line 24e. Don't include a separate

entry for “miscellaneous expenses,” “program expenses,” “other

expenses,” or a similar general category on lines 24a–d. If the

amount on line 24e exceeds 10% of the amount on line 25,

column (A), the organization must list the type and amount of

each line 24e expense on Schedule O (Form 990).

The organization must separately report the amount, if any, of

unrelated business income taxes that it paid or accrued during

the tax year on line 24.

Line 25. Total functional expenses. Section 501(c)(3) and

501(c)(4) organizations. Add lines 1 through 24e and enter

the totals on line 25 in columns (A), (B), (C), and (D).

All other organizations. Add lines 1 through 24e and enter the

total on line 25 in column (A).

Line 26. Joint costs. Organizations that included in program

service expenses (column (B) of Part IX) any joint costs from a

combined educational campaign and fundraising solicitation

must disclose how the total joint costs of all such combined

activities were allocated in Part IX between education and

fundraising. For instance, if the organization spent $100,000 on

joint costs and allocated 10% to education, it would report

$100,000 in line 26, column (A); $10,000 in column (B); and

TIP

$90,000 in column (D). Any costs reported here aren't to be

deducted from the other lines in Part IX on which they are

reported. Don't check the box unless the organization followed

SOP 98-2 (FASB ASC 958-720) in allocating such costs.

An organization conducts a combined educational campaign

and fundraising solicitation when it solicits contributions (by

mail, telephone, broadcast media, or any other means) and

includes, with the solicitation, educational material or other

information that furthers a bona fide non-fundraising exempt

purpose of the organization.

Expenses attributable to providing information regarding the

organization itself, its use of past contributions, or its planned

use of contributions received are fundraising expenses and must

be reported in column (D). Don't report such expenses as

program service expenses in column (B).

Any method of allocating joint costs between columns (B) and

(D) must be reasonable under the facts and circumstances of

each case. Most states with reporting requirements for charitable

organizations and other organizations that solicit contributions

either require or allow reporting of joint costs under AICPA

Statement of Position 98-2 (SOP 98-2), Accounting for Costs of

Activities of Not-for-Profit Organizations and State and Local

Governmental Entities That Include Fundraising,

now codified in

FASB Accounting Standards Codification 958-720, Not-for-Profit

Entities—Other Expenses (FASB ASC 958-720).

Part X. Balance Sheet

Check the box in the heading of Part X if Schedule O (Form 990)

contains any information pertaining to this part.

Section 501(c)(21) trusts. Use Schedule O (Form 990) to

report the FMV of the trust's assets at the beginning of the mine

operator's tax year within which the trust's tax year begins.

All organizations must complete Part X. No substitute balance

sheet will be accepted. All references to Schedule D are to

Schedule D (Form 990).

Column (A)—Beginning of year. In column (A), enter the

amount from the preceding year's Form 990, column (B). If the

organization was excepted from filing Form 990 for the preceding

year, enter amounts the organization would have entered in

column (B) for that year. If this is the organization's first year of

existence, enter zeros on lines 16, 26, 32, and 33 in column (A).

Column (B)—End of year. When Schedule D (Form 990)

reporting is required for any item in Part X, it is only for the

end-of-year balance sheet figure reported in column (B). If this is

the organization's final return, enter zeros on lines 16, 26, 32,

and 33 in column (B).

Line 1. Cash (non-interest-bearing). Enter the total funds that

the organization has in cash, including amounts held as “petty

cash” at its offices or other facilities, and amounts held in banks

in non-interest-bearing accounts. Don't include cash balances

held in an investment account with a financial institution and

reported on lines 11 through 13.

Line 2. Savings and temporary cash investments. Enter the

combined total of amounts held in interest-bearing checking and

savings accounts, deposits in transit, temporary cash

investments (such as money market funds, commercial paper,

and certificates of deposit), and U.S. Treasury bills or other

governmental obligations that mature in less than a year. Don't

include cash balances held in an investment account with a

financial institution and reported on lines 11 through 13. Don't

include advances to

employees or officers or refundable

deposits paid to suppliers or other independent contractors.

Report the income from these investments on Part VIII, line 3.

Line 3. Pledges and grants receivable, net. Enter the total of

(a) all pledges receivable, less any amounts estimated to be

uncollectible, including pledges made by officers, directors,

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trustees, key employees, and highest compensated

employees; and (b) all grants receivable.

Organizations that follow ASC 958 can report the present

value of the grants receivable as of each balance sheet date.

Line 4. Accounts receivable, net. Enter the organization's

total accounts receivable (reduced by any allowance for doubtful

accounts) from the sale of goods and the performance of

services. Report claims against vendors or refundable deposits

with suppliers or others here, if not significant in amount.

Otherwise, report them on line 15, Other assets. Report the net

amount of all receivables due from

officers, directors,

trustees, or key employees on line 5. Report receivables

(including loans and advances) due from other disqualified

persons on line 6. Receivables (including loans and advances)

from

employees who aren't current or former officers, directors,

trustees, key employees, or disqualified persons must be

reported on line 7.

Lines 5 and 6. Loans and other receivables from current

and former officers, directors, trustees, key employees,

and creator or founder, substantial contributor, or 35%

controlled entity or family member of any of these persons.

Report on line 5 loans and other receivables due from current or

former

officers, directors, trustees, key employees, and

creator or founder, substantial contributor, or 35%

controlled entity or family member of any of these persons.

Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must

also report on line 6 receivables due from other

disqualified

persons (for purposes of section 4958, see Appendix G), and

from persons described in section 4958(c)(3)(B). Include all

amounts owed on secured and unsecured loans made to such

persons. Report interest from such receivables on Part VIII,

line 11. Don't report on line 5 or 6 (a) pledges or grants

receivable, which are to be reported on line 3; or (b) receivables

that are excepted from reporting on Schedule L (Form 990), Part

II (except for

excess benefit transactions involving

receivables). If the organization must report loans and other

receivables on either line 5 or 6, it must answer “Yes” on Part IV,

line 26.

Line 7. Notes and loans receivable, net. Enter the net

amount of all notes receivable and loans receivable not listed on

lines 5 and 6, including receivables from unrelated third parties.

The term “unrelated third parties” includes independent

contractors providing goods or services and employees who

aren't current or former

officers, directors, trustees, key

employees, highest compensated employees, or

disqualified persons. Don't include the following.

•

Receivables reported on line 4.

•

Program-related investments reported on line 13.

•

Notes receivable acquired as investments reported on line 12.

Line 8. Inventories for sale or use. Enter the amount of

materials, goods, and supplies held for future sale or use,

whether purchased, manufactured by the organization, or

donated.

Line 9. Prepaid expenses and deferred charges. Enter the

amount of short-term and long-term prepayments of expenses

attributable to one or more future accounting periods. Examples

include prepayments of rent, insurance, or pension costs, and

expenses incurred for a solicitation campaign to be conducted in

a future accounting period.

Line 10a. Land, buildings, equipment, and leasehold im-

provements. Enter the cost or other basis of all land, buildings,

equipment, and leasehold improvements held at the end of the

year. Include both property held for investment purposes and

property used for the organization's exempt functions. If an

amount is reported here, answer “Yes” on Part IV, line 11a, and

complete Schedule D (Form 990), Part VI. The amount reported

on line 10a must equal the total of Schedule D, Part VI, columns

(a) and (b).

Line 10b. Accumulated depreciation. Enter the total amount

of accumulated depreciation for the assets reported on line 10a.

The amount reported on line 10b must equal the total of

Schedule D (Form 990), Part VI, column (c).

Line 10c. Column (A)—Beginning of year. Enter the cost or

other basis of land, buildings, and equipment, net of any

accumulated depreciation, as of the beginning of the year.

Line 10c. Column (B)—End of year. Enter line 10a minus

line 10b. The amount reported must equal the total of

Schedule D (Form 990), Part VI, column (d).

Line 11. Investments—publicly traded securities. Enter the

total value of

publicly traded securities held by the

organization as investments. Publicly traded securities include

common and preferred stocks, bonds (including governmental

obligations such as bonds and Treasury bills), and mutual fund

shares that are listed and regularly traded in an over-the-counter

market or an established exchange and for which market

quotations are published or are otherwise readily available.

Report dividends and interest from these

securities on Part VIII,

line 3.

Don't report on line 11 publicly traded stock for which the

organization holds 5% or more of the outstanding shares of the

same class or publicly traded stock in a corporation that

comprises more than 5% of the organization's total assets.

Report these investments on line 12.

Line 12. Investments—other securities. Enter on this line the

total value of all securities, partnerships, or funds that aren't

publicly traded. This includes stock in a closely held company

whose stock isn't available for sale to the general public or which

isn't widely traded. Other securities reportable on line 12 also

include publicly traded stock for which the organization holds 5%

or more of the outstanding shares of the same class, and

publicly traded stock in a corporation that comprises more than

5% of the organization's

total assets. Don't include

program-related investments.

If an amount is reported on this line that is 5% or more of the

amount reported on Part X, line 16, answer “Yes” on Part IV,

line 11b, and complete Schedule D (Form 990), Part VII. The

amount reported in Part X, line 12, column (B), must equal the

total of Schedule D (Form 990), Part VII, column (b).

Line 13. Program-related investments. Report here the total

book value

of all investments made primarily to accomplish the

organization's exempt purposes rather than to produce income.

Examples of program-related investments include student loans

and notes receivable from other exempt organizations that

obtained the funds to pursue the filing organization's exempt

function.

If the amount reported on this line is 5% or more of the

amount reported on Part X, line 16, answer “Yes” on Part IV,

line 11c, and complete Part VIII of Schedule D (Form 990). The

amount reported in Part X, line 13, column (B), must equal the

total of Schedule D (Form 990), Part VIII, column (b).

Line 14. Intangible assets. Report on this line the total value

of all non-monetary, non-physical assets such as copyrights,

patents, trademarks, mailing lists, or goodwill.

Line 15. Other assets. Report on this line the total book value

of all assets held and not reported on lines 1 through 14.

If an amount is reported on this line that is 5% or more of the

amount reported on Part X, line 16, answer “Yes” on Part IV,

line 11d, and complete Schedule D (Form 990), Part IX. The

amount reported in Part X, line 15, column (B), must equal the

total of Schedule D, Part IX, column (b).

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Line 16. Total assets. Add the totals in columns (A) and (B) of

lines 1 through 15. The amounts on line 16 must equal the

amounts on line 33 for both the beginning and end of the year.

The organization must enter a zero or a dollar amount on this

line.

Line 17. Accounts payable and accrued expenses. Enter

the total of accounts payable to suppliers, service providers,

property managers, and other

independent contractors, plus

accrued expenses such as salaries payable, accrued payroll

taxes, and interest payable.

Section 501(c)(21) trusts. Include accrued trustee fees, etc.

Do not include the present value of payments for approved

claims, or the estimated liability for future claims.

Line 18. Grants payable. Enter the unpaid portion of grants

and awards that the organization has committed to pay other

organizations or individuals, whether or not the commitments

have been communicated to the grantees.

Section 501(c)(21) trusts. Include payments for approved

black lung claims that are due but not paid. Do not include

amounts for black lung claims being contested.

Line 19. Deferred revenue. Report revenue that the

organization has received but not yet earned as of the balance

sheet date under its method of accounting.

Line 20. Tax-exempt bond liabilities. Enter the amount of

tax-exempt bonds (or other obligations) for which the

organization has a direct or indirect liability that were either

issued by the organization on behalf of a state or local

governmental unit,

or by a state or local governmental unit on

behalf of the organization, and for which the organization has a

direct or indirect liability. Tax-exempt bonds include state or local

bonds and any obligations, including direct borrowing from a

lender, or certificates of participation, the interest on which is

excluded from the gross income of the recipient for federal

income tax purposes under section 103.

See also Part IV, line 24a, and Schedule K (Form 990).

Line 21. Escrow or custodial account liability. Enter the

amount of funds or other assets held in an escrow or custodial

account for other individuals or organizations. Enter these

amounts only if the related assets (such as cash) are reported

on lines 1 through 15 of this part. If an amount is reported on this

line, the organization must also answer “Yes” on Part IV, line 9,

and complete Schedule D (Form 990), Part IV. If the organization

has signature authority over, or another interest in, an

escrow or

custodial account for which it doesn't report the assets or

liabilities, it must also answer “Yes” on Part IV, line 9, and

complete Schedule D, Part IV.

Example. A credit counseling organization collects amounts

from debtors to remit to creditors and reports the amounts

temporarily in its possession as cash on line 1 of the balance

sheet. It must then report the corresponding liability (the

amounts to be paid to the creditors on the debtors' behalf) on

line 21.

Lines 22–24. Enter on line 22 the unpaid balance of loans and

other payables (whether or not secured) to current and former

officers, directors, trustees, key employees, creator or

founder, substantial contributor, or 35% controlled entity

or family member of any of these persons, and persons

described in section 4958(c)(3)(B). If the organization reports a

loan payable on this line, it must answer “Yes” on Part IV, line 26.

Don't report on line 22 accrued but unpaid compensation owed

by the organization. Don't report on line 22 loans and payables

excepted from reporting on Schedule L (Form 990), Part II

(except for excess benefit transactions involving receivables).

On line 23, enter the total amount of secured mortgages and

notes payable to unrelated third parties that are secured by the

organization's assets as of the end of the

tax year. Report on

line 25 (and not line 23) any secured mortgages and notes

payable to related organizations.

On line 24, enter the total amount of notes and loans that are

payable to unrelated third parties but aren't secured by the

organization's assets. Report on line 25 (and not line 24) any

unsecured payables to related organizations.

Line 25. Other liabilities. Enter the total amount of all liabilities

not properly reportable on lines 17 through 24. Items properly

reported on this line include federal income taxes payable and

secured or unsecured payables to

related organizations. The

organization must also answer “Yes” on Part IV, line 11e, and

complete Schedule D (Form 990), Part X.

Line 26. Total liabilities. Add the totals in columns (A) and (B),

lines 17 through 25. The organization must enter a zero or a

dollar amount on this line.

Net Assets and Fund Balances

FASB Accounting Standards Codification 958, Not-for-Profit

Entities (ASC 958) provides standards for external financial

statements certified by an independent accountant for certain

types of nonprofit organizations. ASC 958-10-15-5 doesn't apply

to credit unions, VEBAs, supplemental unemployment benefit

trusts, section 501(c)(12) cooperatives, and other member

benefit or mutual benefit organizations.

While some states may require reporting according to FASB

ASC 958, the IRS doesn't. However, a Form 990 return prepared

according to ASC 958 will be acceptable to the IRS.

Organizations that follow ASC 958. If the organization follows

ASC 958, check the box above line 27, and complete lines 27

through 28 and lines 32 and 33. Classify and report net assets in

two groups in Part X (unrestricted, donor-restricted) based on

the existence or absence of donor-imposed restrictions and the

nature of those restrictions. Enter the sum of the two classes of

net assets on line 32. On line 33, add the amounts on lines 26

and 32 to show total liabilities and net assets. The amount on

line 33 must equal the amount

on line 16.

Effective for reporting years ending after December 15,

2017, ASC 958-205, Not-for-Profit

Entities—Presentation of Financial Statements

(ASC

958), addresses reporting of donor-restricted endowments

and board-designated (quasi) endowments. Further, most

states have enacted the Uniform Prudent Management of

Institutional Funds Act (UPMIFA). If the organization is subject to

UPMIFA or

ASC 958, it may affect the amounts reported on lines

27 through 28.

Line 27. Net assets without donor restrictions. Enter the

balance per books of net assets without donor restrictions. All

funds without donor-imposed restrictions must be reported on

line 27, regardless of the existence of any board designations or

appropriations.

Line 28. Net assets with donor restrictions. Enter the

balance per books of net assets with donor restrictions.

Donors' restrictions may require that resources be used after a

specified date (time restrictions), or that resources be used for a

specified purpose (purpose restrictions), or both. Donors may

also stipulate that assets, such as land or works of art, be used

for a specified purpose, be preserved, and not be sold or

donated with stipulations that they be invested to provide a

permanent source of income.

Organizations that don't follow ASC 958. If the organization

doesn't follow ASC 958, check the box above line 29 and

complete lines 29 through 33. Report capital stock, trust

principal, or current funds on line 29. Report paid-in capital

surplus or land, building, or equipment funds on line 30. Report

CAUTION

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retained earnings, endowment, accumulated income, or other

funds on line 31.

Line 29. Capital stock or trust principal, or current funds.

For corporations, enter the balance per books of capital stock

accounts.

Show par or stated value (or for stock with no par or

stated value, total amount received on issuance) of all classes of

stock issued and not yet canceled. For trusts, enter the amount

in the trust principal or corpus. For organizations using the fund

method of accounting, enter the fund balances for the

organization's current restricted and unrestricted funds.

Line 30. Paid-in or capital surplus, or land, building, and

equipment fund. Enter the balance of paid-in capital in excess

of par or stated value for all stock issued and not yet canceled,

as recorded on the corporation's books. If stockholders or others

made donations that the organization records as paid-in capital,

include them here. Enter the fund balance for the land, building,

and equipment fund on this line.

Line 31. Retained earnings, endowment, accumulated in-

come, or other funds. For corporations, enter the balance of

retained earnings as recorded on the corporation's books, or

similar account, minus the cost of any corporate treasury stock.

For trusts, enter the balance in the accumulated income or

similar account. For those organizations using the fund method

of accounting, enter the total of the fund balances for the net

assets without donor restrictions funds, and the net assets

with donor restrictions funds, as well as balances of any other

funds not reported on lines 29 and 30.

Line 32. Total net assets or fund balances. For organizations

that follow ASC 958, enter the total of lines 27 through 28. For all

other organizations, enter the total of lines 29 through 31. All

filers must enter a zero or a dollar amount on this line.

Line 33. Total liabilities and net assets/fund balances.

Enter the total of line 26 and line 32. This amount must equal the

amount on line 16. The organization must enter a zero or a dollar

amount on this line.

Part XI. Reconciliation of Net Assets

Check the box in the heading of Part XI if Schedule O (Form 990)

contains any information pertaining to this part.

Line 1. Enter the amount of total revenue reported in Part VIII,

line 12, column (A).

Line 2. Enter the amount of total expenses reported in Part IX,

line 25, column (A).

Line 3. Enter the difference between lines 1 and 2.

Line 4. Enter the amount of net assets or fund balances at the

beginning of year reported in Part X, line 32, column (A). This

amount should be the same amount reported in Part X, line 32,

column (B), for the prior year’s return.

Line 5. Report the net unrealized gains or losses on investments

reported in the organization's audited financial statements (or

other financial statements). This amount represents the change

in market value of investments that weren't sold or exchanged

during the tax year.

Line 6. Report the value of services or use of facilities donated

to the organization (net of services or use of facilities donated by

the organization) reported as income or expense in the financial

statements.

Line 8. Report the net prior period adjustments during the tax

year reported in the financial statements. Prior period

adjustments are corrections of errors in financial statements of

prior years, or changes in accounting principles applied to such

years. The errors may include math errors, mistakes in applying

accounting principles, or oversight or misuse of facts that existed

at the time the financial statements were prepared.

Line 9. Enter the total amount of other changes in net assets or

fund balances during the year. Amounts to report here include

losses on uncollectible pledges, refunds of contributions and

program service revenue, reversal of grant expenses, any

difference between

FMV and book value of property given as an

award or grant, and any other changes in net assets or fund

balances not listed on lines 5–8. Itemize these changes on

Schedule O (Form 990) and check the box in the heading of Part

XI.

Line 10. Combine the amounts on lines 3 through 9. The total

must equal the amount reported in Part X, line 32, column (B).

Part XII. Financial Statements and

Reporting

Check the box in the heading of Part XII if Schedule O (Form

990) contains any information pertaining to this part.

Line 1. Accounting method. Indicate the method of

accounting used in preparing this return. See

Part D, earlier.

Provide an explanation on Schedule O (Form 990) (1) if the

organization changed its method of accounting from a prior year,

or (2) if the organization checked the “Other” accounting method

box.

Line 2. Financial statements and independent accountant.

Answer “Yes” or “No” to indicate on line 2a or line 2b whether the

organization's financial statements for the tax year were

compiled, reviewed, or audited by an independent

accountant. An accountant

is independent if he or she meets the

standards of independence set forth by the American Institute of

Certified Public Accountants (AICPA), the Public Company

Accounting Oversight Board (PCAOB), or another similar body

that oversees or sets standards for the accounting or auditing

professions.

If “Yes” on either line 2a or 2b, answer “Yes” or “No” on line 2c

to indicate whether the organization has a committee that is

responsible under its governing documents or through

delegation by its governing body for (i) overseeing the

compilation, review, or audit of the financial statements; and (ii)

the selection of an independent accountant that compiled,

reviewed, or audited the statements. Answer “Yes” only if both (i)

and (ii) apply. If this process has changed from the prior year,

describe on Schedule O (Form 990).

Line 3a. Uniform Guidance, 2 C.F.R. Part 200, Subpart F.

Answer “Yes” if, during the year, the organization was required

under the Uniform Guidance, 2 C.F.R. Part 200, Subpart F, to

undergo an audit or audits because of its receipt of federal

contract awards. The Uniform Guidance, 2 C.F.R. Part 200,

Subpart F, requires states, local governments, and nonprofit

organizations that spend $750,000 or more of federal awards in

a year to obtain an annual audit.

Line 3b. Required audits. If “Yes” on line 3a, indicate whether

the organization has undergone the required audit or audits.

Answer “Yes” if the audit was completed or in progress during the

organization's tax year. If the answer to line 3b is “No,” explain on

Schedule O (Form 990) why the organization hasn't undergone

any required audits and describe any steps taken to undergo

such audits.

Paperwork Reduction Act Notice. We ask for the information

on these forms to carry out the Internal Revenue laws of the

United States. You are required to give us the information. We

need it to ensure that you are complying with these laws and to

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allow us to figure and collect the right amount of tax. You are not

required to provide the information requested on a form that is

subject to the Paperwork Reduction Act unless the form displays

a valid OMB control number. Books or records relating to a form

or its instructions must be retained as long as their contents may

become material in the administration of any Internal Revenue

law. Generally, tax returns and return information are

confidential, as required by section 6103. However, certain

returns and return information of tax-exempt organizations and

trusts are subject to public disclosure and inspection, as

provided by section 6104.

Estimates of taxpayer burden. These include forms in the

990 series and attachments and Forms 1023, 1024, 1028, 5578,

5884-C, 8038, 8038-B, 8038-CP, 8038-G, 8038-GC, 8038-R,

8038-T, 8038-TC, 8328, 8718, 8282, 8453-TE, 8453-X, 8868,

8870, 8871, 8872, 8879-TE, 8886-T, and 8899 and their

schedules and all the forms tax-exempt organizations attach to

their tax returns. Time spent and out-of-pocket costs are

presented separately. Time burden includes the time spent

preparing to file and to file, with recordkeeping representing the

largest component. Out-of-pocket costs include any expenses

incurred by taxpayers to prepare and submit their tax returns.

Examples include tax return preparation and submission fees,

postage and photocopying costs, and tax preparation software

costs. Note that these estimates don't include burden associated

with post-filing activities. IRS operational data indicate that

electronically prepared and filed returns have fewer arithmetic

errors, implying lower post-filing burden.

Reported time and out-of-pocket cost burdens are national

averages and include all associated forms and schedules,

across all preparation methods and taxpayer activities. As a

result, the averages don't necessarily reflect a "typical" case.

Most taxpayers experience lower-than-average burden, with

taxpayer burden varying considerably by taxpayer type.

Fiscal Year 2024 Form 990 Series Taxpayer

Compliance Cost Estimates

Table 1—Fiscal Year 2024 Form 990 Series Taxpayer Compliance Cost Estimates

Type of Return

Form 990 Form 990-EZ Form 990-PF Form 990-T Form 990-N

Projections of

the Number of

Returns to be

Filed with IRS 351,100 251,000 130,100 233,200 733,100

Estimated

Average Total

Time (Hours) 107 69 53 42 5

Estimated

Average Total

Out-of-Pocket

Costs $2,900 $600 $2,200 $2,200 $20

Estimated

Average Total

Monetized

Burden $9,900 $1,700 $4,600 $5,700 $100

Estimated Total

Time (Hours) 37,710,000 17,400,000 6,940,000 9,790,000 3,660,000

Estimated Total

Out-of-Pocket

Costs $1,023,200,000 $152,200,000 $282,600,000 $506,400,000 $14,000,000

Estimated Total

Monetized

Burden $3,466,900,000 $425,200,000 $594,600,000 $1,324,000,000 $71,400,000

Note. Amounts above are for FY2024. Reported time and cost burdens are national averages and do not

necessarily reflect a “typical” case. Most taxpayers experience lower-than-average burden, with taxpayer burden

varying considerably by taxpayer type. Detail may not add due to rounding.

Comments and suggestions. We welcome your comments

concerning the accuracy of these time estimates or suggestions

for future editions. You can send us comments through

IRS.gov/

FormComments. Or you can write to the Internal Revenue

Service, Tax Forms and Publications Division, 1111 Constitution

Ave. NW, IR-6526, Washington, DC 20224.

Although we can't respond individually to each comment

received, we do appreciate your feedback and will consider your

comments and suggestions as we revise our tax forms,

instructions, and publications.

Don't send your return to the

above address. Instead, see General Instructions, Section E,

earlier, for the location for filing your return.

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Business Activity Codes

The codes listed in this section are a

selection from the North American

Industry Classification System (NAICS)

that should be used in completing Form

990, Part VIII, lines 2 and 11. If you don't

see a code for the activity you are trying

to categorize, select the appropriate code

from the NAICS website at 2022 NAICS

Census Chart. Select the most specific

6-digit code available that describes the

activity producing the income being

reported. Note that most codes describe

more than one type of activity. Avoid

using codes that describe the

organization rather than the

income-producing activity.

Business Activity Codes

Agriculture, Forestry, Fishing

and Hunting

Code

110000 Agriculture, forestry, fishing and

hunting

111000 Crop production

Mining

Code

211100 Oil and gas extraction

211120 Crude petroleum extraction

211130 Natural gas extraction

212000 Mining (except oil and gas)

Utilities

Code

221000 Utilities

Construction

Code

230000 Construction

236000 Construction of buildings

Manufacturing

Code

310000 Manufacturing

323100 Printing and related support

activities

339110 Medical equipment and supplies

manufacturing

Wholesale Trade

Code

423000 Merchant wholesalers, durable

goods

424000 Merchant wholesalers,

nondurable goods

Retail Trade

Code

441100 Automobile dealers

444100 Building material and supplies

dealers

445100 Grocery and convenience

retailers

445200 Specialty food retailers

449100 Furniture and home furnishings

retailers

449210 Electronics and appliance

retailers (including computers)

455000 General merchandise retailers

456110 Pharmacies and drug retailers

456199 All other health and personal

care retailers

458000 Clothing, clothing accessories,

shoe, and jewelry retailers

459110 Sporting goods retailers

459120 Hobby, toy, and game retailers

459130 Sewing, needlework, and piece

goods retailers

459140 Musical instrument and supplies

retailers

459210 Book retailers and news dealers

(including newsstands)

459310 Florists

459410 Office supplies and stationery

retailers

459420 Gift, novelty, and souvenir

retailers

459510 Used merchandise retailers

459900 Other miscellaneous retailers

Note

Note for Nonstore Retailers

Nonstore retailers sell all types of

merchandise using such

methods as Internet, mail-order

catalogs, interactive television, or

direct sales. These types of

retailers should select the PBA

associated with their primary line

of products sold. For example,

establishments primarily selling

prescription and non-prescription

drugs, select PBA code

456110

Pharmacies and drug

retailers.

Transportation and

Warehousing

Code

480000 Transportation

485000 Transit and ground passenger

transportation

493000 Warehousing and storage

Information

Code

512000 Motion picture and sound

recording industries

513110 Newspaper publishers

513120 Periodical publishers

513130 Book publishers

513140 Directory and mailing list

publishers

513190 Other publishers

516100 Radio and television

broadcasting stations

516210 Media streaming, social

networks, and other content

providers

517000 Telecommunications (including

wired, wireless, satellite, cable

and other program distribution,

resellers, agents, other

telecommunications, and internet

service providers)

Data Processing, Web Search

Portals, and Other Information

Services

Code

518210 Computing infrastructure

providers, data processing, web

hosting, and related services

519200 Web search portals, libraries,

archives, and other information

services

Finance and Insurance

Code

522100 Depository credit intermediation

(including commercial banking,

savings institutions, and credit

unions)

522200 Nondepository credit

intermediation

522210 Credit card issuing

522220 Sales financing

522291 Consumer lending

522292 Real estate credit

522299 International, secondary market,

and all other nondepository

credit intermediation

523000 Securities, commodity contracts,

and other financial investments

and related activities

523940 Portfolio management and

investment advice

524113 Direct life insurance carriers

524114 Direct health and medical

insurance carriers

524126 Direct property and casualty

insurance carriers

524130 Reinsurance carriers

524292 Pharmacy benefit management

and other third party

administration of insurance and

pension funds

524298 All other insurance-related

activities

525100 Insurance and employee benefit

funds

525920 Trusts, estates, and agency

accounts

525990 Other financial vehicles

(including mortgage REITs)

Real Estate and Rental and

Leasing

Code

531110 Lessors of residential buildings

and dwellings (including equity

REITs)

531120 Lessors of nonresidential

buildings (except

miniwarehouses) (including

equity REITs)

531130 Lessors of miniwarehouses and

self-storage units (including

equity REITs)

531190 Lessors of other real estate

property (including equity REITs)

531310 Real estate property managers

531320 Offices of real estate appraisers

531390 Other activities related to real

estate

532000 Rental and leasing services

532289 All other consumer goods rental

532420 Office machinery and equipment

rental and leasing

533110 Lessors of nonfinancial

intangible assets (except

copyrighted works)

Professional, Scientific, and

Technical Services

Code

541100 Legal services

541200 Accounting, tax preparation,

bookkeeping, and payroll

services

541300 Architectural, engineering, and

related services

541380 Testing laboratories and services

541511 Custom computer programming

services

541519 Other computer-related services

541610 Management consulting services

541700 Scientific research and

development services

541800 Advertising, public relations, and

related services

541860 Direct mail advertising

541900 Other professional, scientific,

and technical services

541990 Consumer credit counseling

services

Management of Companies and

Enterprises

Code

551111 Offices of bank holding

companies

551112 Offices of other holding

companies

Administrative and Support

Services

Code

561000 Administrative and support

services

561300 Employment services

561439 Other business service centers

(including copy shops)

561499 All other business support

services

561500 Travel arrangement and

reservation services

561520 Tour operators

561700 Services to buildings and

dwellings

Waste Management and

Remediation Services

Code

562000 Waste management and

remediation services (sanitary

services)

Educational Services

Code

611420 Computer training

611430 Professional and management

development training

611600 Other schools and instruction

(other than elementary and

secondary schools or colleges

and universities, which should

select a code to describe their

unrelated activities)

611710 Educational support services

Health Care and Social

Assistance

Code

621110 Offices of physicians

621300 Offices of other health

practitioners

621400 Outpatient care centers

621500 Medical and diagnostic

laboratories

621610 Home health care services

621910 Ambulance services

621990 All other ambulatory health care

services

623000 Nursing and residential care

facilities

623990 Other residential care facilities

624100 Individual and family services

624110 Child and youth services

624200 Community food and housing,

and emergency and other relief

services

624210 Meal delivery programs, soup

kitchens, or food banks

624310 Vocational rehabilitation services

624410 Childcare services

Arts, Entertainment, and

Recreation

Code

711110 Theater companies and dinner

theaters

711120 Dance companies

711130 Musical groups and artists

711190 Other performing arts companies

711210 Spectator sports (including

sports clubs and racetracks)

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Business Activity Codes (Continued)

711300

Promoters of performing arts,

sports, and similar events

713110 Amusement and theme parks

713200 Gambling industries

713910 Golf courses and country clubs

713940 Fitness and recreational sports

centers

713990 All other amusement and

recreation industries (including

skiing facilities, marinas, and

bowling centers)

Accommodation and Food

Services

Code

721000 Accommodation

721110 Hotels (except casino hotels)

and motels

721210 RV (recreational vehicle) parks

and recreational camps

721310 Rooming and boarding houses,

dormitories, and workers’ camps

722320 Caterers

722410 Drinking places (alcoholic

beverages)

722511 Full-service restaurants

722513 Limited-service restaurants

722514 Cafeterias, grill buffets, and

buffets

722515 Snack and non-alcoholic

beverage bars

Other Services

Code

811000 Repair and maintenance

812300 Drycleaning and laundry

services

812900 Other personal services

812930 Parking lots and garages

Other

Code

900001 Investment activities of section

501(c)(7), (9), or (17)

organizations

900002 Rental of personal property

900003 Passive income activities with

controlled organizations

900004 Exploited exempt activities

900099 Other activity

Glossary

NOTES:

•

Words in bold within a definition are defined elsewhere within the Glossary.

•

All section references are to the Internal Revenue Code (title 26 of U.S. Code) or

regulations under title 26, unless otherwise specified.

•

Definitions are for purposes of filing Form 990 (and schedules) only.

35% controlled entity An entity that is owned, directly or indirectly (for example, under constructive

ownership rules of section 267(c)), by a given person, such as the

organization's current or former officers, directors, trustees, or key

employees listed on Form 990, Part VII, Section 1, or the family members

thereof (listed persons) as follows.

1. A corporation in which listed persons own more than 35% of the total

combined voting power.

2. A partnership in which listed persons own more than 35% of the profits

interest.

3. A trust or estate in which listed persons own more than 35% of the

beneficial interest.

Accountable plan A reimbursement or other expense allowance arrangement that satisfies the

requirements of section 62(c) by meeting the requirements of business

connection, substantiation, and returning amounts in excess of substantiated

expenses. See Regulations section 1.62-2(c)(2).

Activities conducted outside the United States For purposes of Schedule F (Form 990), Statement of Activities Outside the

United States, include grantmaking, fundraising, unrelated trade or

business, program services, program-related investments, other

investments, or maintaining offices, employees, or agents in particular

regions outside the United States.

Applicable tax-exempt organization A section 501(c)(3), 501(c)(4), or 501(c)(29) organization that is tax exempt

under section 501(a), or that was such an organization at any time during the

5-year period ending on the day of the excess benefit transaction.

Art See Works of art.

ASC 740 See FIN 48 (ASC 740).

ASC 958 Financial Accounting Standards Board, Accounting Standards Codification 958

(ASC 958) provides standards for external financial statements certified by an

independent accountant for certain types of nonprofit organizations. ASC 958

doesn't apply to credit unions, voluntary employees' beneficiary associations,

supplemental unemployment benefit trusts, section 501(c)(12) cooperatives,

and other member benefit or mutual benefit organizations.

While some states may require reporting according to ASC 958, the IRS

doesn't. However, a Form 990 return prepared according to ASC 958 will be

acceptable to the IRS.

ASC 2016-14 Accounting Standards Update 2016-14 is codified in Accounting Standards

Codification 958, Not-for-Profit Entities (ASC 958).

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Audit A formal examination of an organization's financial records and practices by an

independent, certified public accountant with the objective of issuing a report

on the organization's financial statements as to whether those statements are

fairly stated according to generally accepted accounting principles (or other

recognized comprehensive basis of accounting).

Audited financial statements Financial statements accompanied by a formal opinion or report prepared by an

independent, certified public accountant with the objective of assessing the

accuracy and reliability of the organization's financial statements.

Audit committee A committee, generally established by the governing body of an organization,

with the responsibilities to oversee the organization's financial reporting

process, monitor choice of accounting policies and principles, monitor internal

control processes, or oversee hiring and performance of any external auditors.

Bingo A game of chance played with cards that are generally printed with five rows of

five squares each. Participants place markers over randomly called numbers on

the cards in an attempt to form a pre-selected pattern such as a horizontal,

vertical, or diagonal line, or all four corners. The first participant to form the

pre-selected pattern wins the game. To be a bingo game, the game must be of

the type described in which wagers are placed, winners are determined, and

prizes or other property are distributed in the presence of all persons placing

wagers in that game. Satellite, Internet, and progressive or event bingo aren't

bingo, because they are conducted in many different places simultaneously,

and the winners aren't all present when the wagers are placed, the winners are

determined, and the prizes are distributed. Thus, all revenue and expenses

associated with satellite, Internet, and progressive or event bingo should

generally be included under pull tabs. Certain bingo games within a hybrid

gaming event (such as progressive or event bingo) can also qualify as bingo if

the individual game meets the preceding definition of bingo.

Board-designated endowment See Quasi-endowment.

Bond issue An issue of two or more bonds that are:

1. Sold at substantially the same time,

2. Sold under the same plan of financing, and

3. Payable from the same source of funds.

See Regulations section 1.150-1(c).

Business relationship For purposes of Part VI, line 2, business relationships between two persons

include the following.

1. One person is employed by the other in a sole proprietorship or by an

organization with which the other is associated as a

trustee, director, officer,

or greater-than-35% owner.

2. One person is transacting business with the other (other than in the

ordinary course of either party's business on the same terms as are generally

offered to the public), directly or indirectly, in one or more contracts of sale,

lease, license, loan, performance of services, or other transaction involving

transfers of cash or property valued in excess of $10,000 in the aggregate

during the organization's tax year. Indirect transactions are transactions with an

organization with which the one person is associated as a trustee, director,

officer, or greater-than-35% owner. Such transactions don't include charitable

contributions to tax-exempt organizations.

3. The two persons are each a director, trustee, officer, or

greater-than-10% owner in the same business or investment entity (but not in

the same tax-exempt organization).

Ownership is measured by stock ownership (either voting power or value) of

a corporation, profits or capital interest in a partnership or limited liability

company, membership interest in a nonprofit organization, or beneficial interest

in a trust. Ownership includes indirect ownership (for example, ownership in an

entity that has ownership in the entity in question); there can be ownership

through multiple tiers of entities.

Cash contributions Contributions received in the form of cash, checks, money orders, credit card

charges, wire transfers, and other transfers and deposits to a cash account of

the organization.

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Central organization The organization, sometimes referred to as the “parent organization,” that holds

a group exemption letter for one or more subordinate organizations under

its general supervision and control.

CEO, executive director, or top management

official

See Top management official. “CEO” stands for chief executive officer.

Certified historic structure Any building or structure listed in the National Register of Historic Places as

well as any building certified as being of historic significance to a registered

historic district. See section 170(h)(4)(B) for special rules that apply to

contributions made after August 17, 2006.

Church Certain characteristics are generally attributed to churches. These attributes of

a church have been developed by the IRS and by court decisions. They include

distinct legal existence; recognized creed and form of worship; definite and

distinct ecclesiastical government; formal code of doctrine and discipline;

distinct religious history; membership not associated with any other church or

denomination; organization of ordained ministers; ordained ministers selected

after completing prescribed courses of study; literature of its own; established

places of worship; regular congregations; regular religious services; Sunday

schools for the religious instruction of the young; and schools for the

preparation of its ministers. The IRS generally uses a combination of these

characteristics, together with other facts and circumstances, to determine

whether an organization is considered a church for federal tax purposes. A

convention or association of churches is generally treated like a church for

federal tax purposes. See Pub. 1828, Tax Guide for Churches and Religious

Organizations.

Closely held stock Generally, shares of stock in a closely held company that isn't available for sale

to the general public or which isn't widely traded (see further explanation in the

instructions for Part X, line 12, and Schedule M (Form 990), Noncash

Contributions, line 10).

Collectibles Include autographs, sports memorabilia, dolls, stamps, coins, books (other than

books and publications reported on line 4 of Schedule M (Form 990)), gems,

and jewelry (other than costume jewelry reportable on line 5 of Schedule M

(Form 990)).

Collections of works of art, historical

treasures, and other similar assets

Include collections, as described in ASC 958-360-45, of works of art,

historical treasures, and other similar assets held for public exhibition,

education, or research in furtherance of public service.

Compensation Unless otherwise provided, all forms of cash and noncash payments or benefits

provided in exchange for services, including salary and wages, bonuses,

severance payments, deferred payments, retirement benefits, fringe benefits,

and other financial arrangements or transactions such as personal vehicles,

meals, housing, personal and family educational benefits, below-market loans,

payment of personal or family travel, entertainment, and personal use of the

organization's property. Compensation includes payments and other benefits

provided to both employees and independent contractors in exchange for

services. See also Deferred compensation, Nonqualified deferred

compensation, and Reportable compensation.

Compilation (compiled financial statements) A compilation is a presentation of financial statements and other information

that is the representation of the management or ownership of an organization

and which hasn't been reviewed or audited by an independent accountant.

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Conflict of interest policy A policy that defines conflict of interest, identifies the classes of individuals

within the organization covered by the policy, facilitates disclosure of

information that can help identify conflicts of interest, and specifies procedures

to be followed in managing conflicts of interest. A conflict of interest arises

when a person in a position of authority over an organization, such as an

officer, director, or manager, can benefit financially from a decision she or he

could make in such capacity, including indirect benefits such as to family

members or businesses with which the person is closely associated. For this

purpose, a conflict of interest doesn't include questions involving a person's

competing or respective duties to the organization and to another organization,

such as by serving on the boards of both organizations, that don't involve a

material financial interest of, or benefit to, such person. For a description of

“conflict of interest” for purposes of determining whether governing body

members who are reviewing a potential excess benefit transaction have a

conflict of interest, pursuant to Regulations section 53.4958-6(c)(1)(iii), see the

instructions for Part VI, line 15.

Conservation easement A restriction (granted in perpetuity) on the use that may be made of real

property granted exclusively for conservation purposes. Conservation purposes

include preserving land areas for outdoor recreation by, or for the education of,

the general public; protecting a relatively natural habitat of fish, wildlife, or

plants, or a similar ecosystem; preserving open space, including farmland and

forest land, where such preservation will yield a significant public benefit and is

either for the scenic enjoyment of the general public or pursuant to a clearly

defined federal, state, or local governmental conservation policy; and

preserving a historically important land area or a certified historic structure. For

more information, see section 170(h) and Notice 2004-41, 2004-1 C.B. 31.

Contributions Unless otherwise provided, includes donations, gifts, bequests, grants, and

other transfers of money or property to the extent that adequate consideration

isn't provided in exchange and that the contributor intends to make a gift,

whether or not made for charitable purposes. A transaction can be partly a sale

and partly a contribution, but discounts provided on sales of goods in the

ordinary course of business shouldn't be reported as contributions. Neither

donations of services (such as the value of donated advertising space,

broadcast air time, or discounts on services) nor donations of use of materials,

equipment, or facilities should be reported as contributions. For purposes of

Form 990, a distribution to a section 501(c)(3) organization from a split-interest

trust (for example, charitable remainder trust, charitable lead trust) is reportable

as a contribution. See also Cash contributions and Noncash contributions.

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Control For purposes of determining related organizations:

Control of a nonprofit organization (or other organization without owners or

persons having beneficial interests, whether the organization is taxable or tax

exempt)

One or more persons (whether individuals or organizations) control a nonprofit

organization if they have the power to remove and replace (or to appoint, elect,

or approve or veto the appointment or election of, if such power includes a

continuing power to appoint, elect, or approve or veto the appointment or

election of, periodically or in the event of vacancies) a majority of the nonprofit

organization's directors or trustees, or a majority of members who elect a

majority of the nonprofit organization's directors or trustees. Such power can be

exercised directly by a (parent) organization through one or more of the (parent)

organization's officers, directors, trustees, or agents, acting in their capacities

as officers, directors, trustees, or agents of the (parent) organization. Also, a

(parent) organization controls a (subsidiary) nonprofit organization if a majority

of the subsidiary's directors or trustees are trustees, directors, officers,

employees, or agents of the parent.

Control of a stock corporation

One or more persons (whether individuals or organizations) control a stock

corporation if they own more than 50% of the stock (by voting power or value) of

the corporation.

Control of a partnership or limited liability company

One or more persons control a partnership if they own more than 50% of the

profits or capital interests in the partnership (including a limited liability

company treated as a partnership or disregarded entity for federal tax

purposes, regardless of the designation under state law of the ownership

interests as stock, membership interests, or otherwise). A person also controls

a partnership if the person is a managing partner or managing member of a

partnership or limited liability company which has three or fewer managing

partners or managing members (regardless of which partner or member has

the most actual control), or if the person is a general partner in a limited

partnership which has three or fewer general partners (regardless of which

partner has the most actual control). For this purpose, a “managing partner” is a

partner designated as such under the partnership agreement, or regularly

engaged in the management of the partnership even though not so designated.

Control of a trust with beneficial interests

One or more persons control a trust if they own more than 50% of the beneficial

interests in the trust. A person's beneficial interest in a trust shall be determined

in proportion to that person's actuarial interest in the trust as of the end of the

tax year. See Regulations sections 301.7701-2, -3, and -4 for more information

on classification of corporations, partnerships, disregarded entities, and trusts.

Control can be indirect. See the Schedule R (Form 990) instructions for a

description of indirect control.

Controlled entity An organization controlled by a controlling organization under section

512(b)(13). A controlled entity may be a nonprofit organization. For the

definition of control in this context, see section 512(b)(13)(D) and Regulations

section 1.512(b)-1(l)(4) (substituting “more than 50%” for “at least 80%” in the

regulation, for purposes of this definition). Controlled entities are a subset of

related organizations. For purposes of Form 990, controlled entities don't

include disregarded entities of the filing organization.

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Controlling organization under section 512(b)

(13)

An exempt organization that controls a controlled entity. Section 512(b)(13)

treats payments of interest, annuity, royalties, and rent from a controlled entity

to a controlling organization as unrelated business taxable income under

certain circumstances. Control in this context means (i) in the case of a

corporation, ownership (by vote or value) of more than 50% of the stock in such

corporation; (ii) in the case of a partnership, ownership of more than 50% of the

profits interests or capital interests in such partnership; or (iii) in any other case,

ownership of more than 50% of the beneficial interests in the entity. Section 318

(relating to constructive ownership of stock) shall apply for purposes of

determining ownership of stock in a corporation. Similar principles shall apply

for purposes of determining ownership of interests in any other entity.

Core form The Form 990, Return of Organization Exempt From Income Tax. It doesn't

include any schedules that may be attached to Form 990.

Credit counseling services Include the providing of information to the general public on budgeting,

personal finance, and saving and spending practices, or assisting individuals

and families with financial problems by providing them with counseling. See

section 501(q)(4)(A).

Current year The tax year for which the Form 990 is being filed; see also Fiscal year.

Debt management plan services Services related to the repayment, consolidation, or restructuring of a

consumer's debt, including the negotiation with creditors of lower interest rates,

the waiver or reduction of fees, and the marketing and processing of debt

management plans. See section 501(q)(4)(B).

Defeasance escrow An irrevocable escrow established to redeem the bonds on their earliest call

date in an amount that, together with investment earnings, is sufficient to pay all

the principal of, and interest and call premiums on, bonds from the date the

escrow is established to the earliest call date. See Regulations section

1.141-12(d)(5).

Deferred compensation Compensation that is earned or accrued in, or is attributable to, one year and

deferred to a future year for any reason, whether or not funded, vested,

qualified or nonqualified, or subject to a substantial risk of forfeiture. However, a

deferral of compensation that causes an amount to be deferred from the

calendar year ending with or within the tax year to a date that isn't more than

/2 months after the end of the calendar year ending with or within the tax year

isn't treated as deferred compensation for purposes of Form 990, if such

compensation is currently reported as reportable compensation. Deferred

compensation may or may not be included in reportable compensation for

the current year.

Director See Director or trustee.

Director or trustee Unless otherwise provided, a member of the organization's governing body at

any time during the tax year, but only if the member has any voting rights. A

member of an advisory board that doesn't exercise any governance authority

over the organization isn't considered a director or trustee.

Disqualified person A. For purposes of section 4958; Form 990, Parts IX and X; and Schedule L

(Form 990), Transactions With Interested Persons, Parts I and II, any person

(including an individual, a corporation, or other entity) who was in a position to

exercise substantial influence over the affairs of the applicable tax-exempt

organization at any time during a 5-year period ending on the date of the

transaction. If the 5-year period ended within the organization's tax year, the

organization may treat the person as a disqualified person for the entire tax

year. Persons who hold certain powers, responsibilities, or interests are among

those who are in positions to exercise substantial influence over the affairs of

the organization.

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A disqualified person includes:

•

A disqualified person's family member;

•

A 35% controlled entity of a (1) disqualified person, and/or (2) family members

of the disqualified person;

•

A donor or donor advisor to a donor advised fund; or

•

An investment advisor of a sponsoring organization.

The disqualified persons of a supported organization include the

disqualified persons of a section 509(a)(3) supporting organization that

supports the supported organization.

See Appendix G for more information on disqualified persons and section

4958 excess benefit transactions.

B. Under section 4946, a disqualified person includes the following.

1. A substantial contributor, which is any person who gave an aggregate

amount of more than $5,000, if that amount is more than 2% of the total

contributions the foundation or organization received from its inception

through the end of the year in which that person's contributions were received.

If the organization is a trust, a substantial contributor includes the creator of the

trust (without regard to the amount of contributions the trust received from the

creator and related persons). Any person who is a substantial contributor at any

time generally remains a substantial contributor for all future periods even if

later contributions by others push that person's contributions below the 2%

figure discussed above. Gifts from the contributor's spouse are treated as gifts

from the contributor. Gifts are generally valued at

FMV as of the date the

organization received them.

2. A foundation manager, defined as an officer, director, or trustee of the

organization or any individual having powers or responsibilities similar to those

of officers, directors, or trustees.

3. An owner of more than 20% of the voting power of a corporation, profits

interest of a partnership, or beneficial interest of a trust or an unincorporated

enterprise that is a substantial contributor to the organization.

4. A family member of an individual in the first three categories. For this

purpose, “family member” includes only the individual's spouse, ancestors,

children, grandchildren, and great-grandchildren, and the spouses of children,

grandchildren, and great-grandchildren.

5. A corporation, partnership, trust, or estate in which persons described in

(1) through (4) above own more than 35% of the voting power, profits interest,

or beneficial interest.

For purposes of section 509(a)(2), as referenced in Schedule A (Form 990),

Public Charity Status and Public Support, a disqualified person is defined in

section 4946, except that it doesn't include an organization described in section

509(a)(1).

For purposes of section 509(a)(3), as referenced in Schedule A (Form 990),

a disqualified person is defined in section 4946, except that it doesn't include a

foundation manager or an organization described in section 509(a)(1) or 509(a)

(2).

Disregarded entity or entities An entity wholly owned by the organization that is generally not treated as a

separate entity for federal tax purposes (for example, single-member limited

liability company of which the organization is the sole member). See

Regulations sections 301.7701-2 and -3. A disregarded entity must generally

use the EIN of its sole member. An exception applies to employment taxes: for

wages paid to employees of a disregarded entity, the disregarded entity must

file separate employment tax returns and use its own EIN on such returns. See

Regulations sections 301.6109-1(h) and 301.7701-2(c)(2)(iv).

Domestic government See Governmental unit.

Domestic individual An individual who lives or resides in the United States and isn't a foreign

individual.

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Domestic organization A corporation or partnership is domestic if created or organized in the United

States or under the law of the United States or of any state or territory. A trust is

domestic if a court within the United States or a U.S. territory is able to

exercise primary supervision over the administration of the trust, and one or

more U.S. persons (or persons in territories of the United States) have the

authority to control all substantial decisions of the trust.

Donor advised fund A fund or account:

1. That is separately identified by reference to contributions of a donor or

donors,

2. That is owned and controlled by a sponsoring organization, and

3. For which the donor or donor advisor has or reasonably expects to

have advisory privileges in the distribution or investment of amounts held in the

donor advised funds or accounts because of the donor's status as a donor.

A donor advised fund doesn't include any fund or account:

1. That makes distributions only to a single identified organization or

governmental entity; or

2. In which a donor or donor advisor gives advice about which individuals

receive grants for travel, study, or other similar purposes, if:

a. The donor or donor advisor's advisory privileges are performed

exclusively by such person in his or her capacity as a committee member in

which all of the committee members are appointed by the sponsoring

organization;

b. No combination of donors or donor advisors (and related persons as

defined below) directly or indirectly controls the committee; and

c. All grants from the fund or account are awarded on an objective and

nondiscriminatory basis following a procedure approved in advance by the

board of directors of the sponsoring organization. The procedure must be

designed to ensure that all grants meet the requirements of section 4945(g)(1),

(2), or (3); or

3. That the IRS exempts from being treated as a donor advised fund

because either such fund or account is advised by a committee not directly or

indirectly controlled by the donor or donor advisor or such fund benefits a single

identified charitable purpose. For example, see section 5.01 of Notice

2006-109, 2006-51 I.R.B. 1121, and any future related guidance.

Donor advisor Any person appointed or designated by a donor to advise a sponsoring

organization on the distribution or investment of amounts held in the donor's

donor advised fund.

Donor-imposed restriction A donor stipulation (donors include other types of contributors, including

makers of certain grants) that specifies a use for a contributed asset that is

more specific than broad limits resulting from:

•

The nature of the not-for-profit entity,

•

The environment in which it operates, or

•

The purposes specified in its articles of incorporation or bylaws or comparable

documents for an unincorporated association.

Some donors impose restrictions that are temporary in nature, for example,

stipulating that resources may be used only after a specified date, for particular

programs or services, or to acquire buildings and/or equipment. Other donors

impose restrictions that are perpetual in nature, for example, stipulating that

resources be maintained in perpetuity.

Donor-restricted endowment fund An endowment fund created by a donor stipulation (donors include other types

of contributors, including makers of certain grants) requiring investment of the

gift in perpetuity or for a specified term. Some donors or laws may require that a

portion of income, gains, or both be added to the gift and invested subject to

similar restrictions.

EIN Employer identification number, a nine-digit number. Use Form SS-4 to apply

for an EIN.

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Employee Any individual who, under the usual common law rules applicable in

determining the employer-employee relationship, has the status of an

employee, and any other individual who is treated as an employee for federal

employment tax purposes under section 3121(d). See Pub. 1779 for more

information.

Endowment fund An established fund of cash, securities, or other assets to provide income for

the maintenance of a not-for-profit entity. The use of the assets of the fund may

be with or without donor-imposed restrictions. Endowment funds are generally

established by donor-restricted gifts and bequests to provide a source of

income in perpetuity or for a specified period. Alternatively, a not-for-profit's

governing board may earmark a portion of its net assets (see

Quasi-endowment).

Escrow or custodial account Refers to an account (whether a segregated account at a financial institution or

a set-aside on the organization's books and records) over which the

organization has signature authority, in which the funds are held for the benefit

of other organizations or individuals, whether or not the funds are reported on

Part X, line 21, and whether or not the account is labeled as “escrow account,”

“custodial account,” “trust account,” or some similar term. An escrow or

custodial account doesn't include a split-interest trust (or the beneficial interest

in such trust) described in section 4947(a)(2) for which the filing organization is

a trustee, other than a trust in the trade or business of lending money; repairing

credit; or providing debt management plan services, payment processing, or

similar services.

Excess benefit transaction In the case of an applicable tax-exempt organization, any transaction in

which an excess benefit is provided by the organization, directly or indirectly to,

or for the use of, any disqualified person, as defined in section 4958. Excess

benefit generally means the excess of the economic benefit received from the

applicable organization over the consideration given (including services) by a

disqualified person, but see the special rules below regarding donor advised

funds and supporting organizations. See Appendix G for more information.

Donor advised fund. For a donor advised fund, an excess benefit

transaction also includes a grant, loan, compensation, or similar payment from

the fund to a:

•

Donor or donor advisor,

•

Family member of a donor or donor advisor,

•

35% controlled entity of a donor or donor advisor, or

•

35% controlled entity of a family member of a donor or donor advisor.

The excess benefit in this transaction is the amount of the grant, loan,

compensation, or similar payments.

For additional information, see the Instructions for Form 4720.

Supporting organization. For any supporting organization, defined in

section 509(a)(3), an excess benefit transaction also includes grants, loans,

compensation, or similar payments provided by the supporting organization to

•

Substantial contributor,

•

Family member of a substantial contributor,

•

35% controlled entity of a substantial contributor, or

•

35% controlled entity of a family member of a substantial contributor.

For this purpose, the excess benefit is defined as the amount of the grant, loan,

compensation, or similar payments. Additionally, an excess benefit transaction

includes any loans provided by the supporting organization to a disqualified

person (other than an organization described in section 509(a)(1), (2), or (4)).

Exempt bond See Tax-exempt bond.

Fair market value (FMV) The price at which property, or the right to use property, would change hands

between a willing buyer and a willing seller, neither being under any compulsion

to buy, sell, or transfer property or the right to use property, and both having

reasonable knowledge of relevant facts.

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Family member, family relationship Unless specified otherwise, the family of an individual includes only his or her

spouse (see Rev. Rul. 2013-17 regarding same-sex marriage), ancestors,

brothers and sisters (whether whole or half blood), children (whether natural or

adopted), grandchildren, great-grandchildren, and spouses of brothers, sisters,

children, grandchildren, and great-grandchildren.

FIN 48 (FASB ASC 740) Financial Accounting Standards Board (FASB) Interpretation No. 48,

Accounting for Uncertainty in Income Taxes, an interpretation of FASB

Statement No. 109, now codified in FASB Accounting Standards Codification

740, Income Taxes (ASC 740). The organization can be required to provide in

Schedule D (Form 990), Supplemental Financial Statements, the text of the

footnote to its financial statements regarding the organization's liability for

uncertain tax positions under FIN 48 (ASC 740).

Financial statements An organization's statements of revenue and expenses and balance sheet, or

similar statements prepared regarding the financial operations of the

organization.

Fiscal year An annual accounting period ending on the last day of a month other than

December. See also Tax year and Current year.

Foreign government A governmental agency or entity, or a political subdivision thereof, that isn't

classified as a United States agency or governmental unit, regardless of

where it is located or operated.

Foreign individual A person, including a U.S. citizen or resident, who lives or resides outside the

United States. For purposes of Form 990, Part IX, and Schedule F (Form 990),

Statement of Activities Outside the United States, a person who lives or resides

outside the United States at the time the grant is paid or distributed to the

individual is a foreign individual.

Foreign organization An organization that isn't a domestic organization. A foreign organization

includes an affiliate that is organized as a legal entity separate from the filing

organization, but doesn't include any branch office, account, or employee of a

domestic organization located outside the United States.

Fundraising See Fundraising activities.

Fundraising activities Activities undertaken to induce potential donors to contribute money, securities,

services, materials, facilities, other assets, or time. They include publicizing and

conducting fundraising campaigns; maintaining donor mailing lists;

conducting fundraising events; preparing and distributing fundraising

manuals, instructions, and other materials; professional fundraising

services; and conducting other activities involved with soliciting contributions

from individuals, foundations, governments, and others. Fundraising activities

don't include gaming, the conduct of any trade or business that is regularly

carried on, or activities substantially related to the accomplishment of the

organization's exempt purpose (other than by raising funds).

Fundraising events Include dinners and dances, door-to-door sales of merchandise, concerts,

carnivals, sports events, auctions, casino nights (in which participants can play

casino-style games but the only prizes or auction items provided to participants

are noncash items that were donated to the organization), and similar events

not regularly carried on that are conducted for the primary purpose of raising

funds. Fundraising events don't include:

1. The conduct of a trade or business that is regularly carried on;

2. Activities substantially related to the accomplishment of the

organization's exempt purposes (other than by raising funds);

3. Solicitation campaigns that generate only contributions, which may

involve gifts of goods or services from the organization of only nominal value, or

sweepstakes, lotteries, or raffles in which the names of contributors or other

respondents are entered in a drawing for prizes of only nominal value; and

4. Gaming.

GAAP See Generally accepted accounting principles.

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Gaming Includes (but isn't limited to) bingo, pull tabs/instant bingo (including satellite

and progressive or event bingo), Texas Hold-Em Poker, 21, and other card

games involving betting, raffles, scratch-offs, charitable gaming tickets,

break-opens, hard cards, banded tickets, jar tickets, pickle cards, Lucky Seven

cards, Nevada Club tickets, casino nights/Las Vegas nights (other than events

not regularly carried on in which participants can play casino-style games but

the only prizes or auction items provided to participants are noncash items that

were donated to the organization, which events are fundraising events), and

coin-operated gambling devices. Coin-operated gambling devices include slot

machines, electronic video slot or line games, video poker, video blackjack,

video keno, video bingo, video pull tab games, etc. See Pub. 3079, Tax-Exempt

Organizations and Gaming.

Generally accepted accounting principles/

GAAP

The accounting principles set forth by the Financial Accounting Standards

Board (FASB) and the American Institute of Certified Public Accountants

(AICPA) that guide the work of accountants in reporting financial information

and preparing audited financial statements for organizations.

Governing body The group of one or more persons authorized under state law to make

governance decisions on behalf of the organization and its shareholders or

members, if applicable. The governing body is, generally speaking, the board of

directors (sometimes referred to as “board of trustees”) of a corporation or

association, or the trustee or trustees of a trust (sometimes referred to as the

“board of trustees”).

Government official A federal, state, or local official described within section 4946(c).

Governmental issuer A state or local governmental unit that issues a tax-exempt bond.

Governmental unit A state, a territory of the United States, or a political subdivision of a state

or U.S. territory, the United States, or the District of Columbia. See section

170(c)(1).

Grants and other assistance For purposes of Part IX, lines 1–3; Schedule F (Form 990); and Schedule I

(Form 990), includes awards, prizes, contributions, noncash assistance, cash

allocations, stipends, scholarships, fellowships, research grants, and similar

payments and distributions made by the organization during the tax year. It

doesn't include salaries or other compensation to employees or payments to

independent contractors if the primary purpose is to serve the direct and

immediate needs of the organization (such as legal, accounting, or fundraising

services); the payment of any benefit by a section 501(c)(9) voluntary

employees' beneficiary association (VEBA) to employees of a sponsoring

organization or contributing employer, if such payment is made under the terms

of the VEBA and in compliance with section 505; or payments or other

assistance to affiliates or branch offices that aren't organized as legal entities

separate from the filing organization.

Gross proceeds For purposes of Schedule K (Form 990), Supplemental Information on

Tax-Exempt Bonds, generally any sale proceeds, investment proceeds,

transferred proceeds, and replacement proceeds of an issue. See Regulations

sections 1.148-1(b) and -1(c).

Gross receipts The total amounts the organization received from all sources during its tax year,

without subtracting any costs or expenses. See Appendix B. How To Determine

Whether an Organization's Gross Receipts Are Normally $50,000 (or $5,000)

or Less and Appendix C. Special Gross Receipts Tests for Determining Exempt

Status of Section 501(c)(7) and 501(c)(15) Organizations.

Group exemption Tax exemption of a group of organizations all exempt under the same Code

section, applied for and obtained by a central organization on behalf of

subordinate organizations under the central organization's general

supervision or control. See Rev. Proc. 80-27, 1980-1 C.B. 677; Rev. Proc.

96-40, 1996-2 C.B. 301; and Appendix E. Group Returns—Reporting

Information on Behalf of the Group, for more information.

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Group return A Form 990 filed by the central organization of a group exemption for two or

more of the subordinate organizations. See General Instructions, Section I.

Group Return, earlier, and Appendix E. Group Returns—Reporting Information

on Behalf of the Group, for more information.

Highest compensated employee One of the five highest compensated employees of the organization (including

employees of a disregarded entity of the organization), other than current

officers, directors, trustees, or key employees, whose aggregate

reportable compensation from the organization and related organizations

is greater than $100,000 for the calendar year ending with or within the

organization's tax year. These employees should be reported on Part VII,

Section A, of Form 990.

Historical treasure A building, structure, area, or property (real or personal) with recognized

cultural, aesthetic, or historical value that is significant in the history,

architecture, archaeology, or culture of a country, state, or city.

Hospital/hospital facility For purposes of Schedule H (Form 990), Hospitals, a hospital, or hospital

facility, is a facility that is, or is required to be, licensed, registered, or similarly

recognized by a state as a hospital. This includes a hospital facility that is

operated through a disregarded entity or a joint venture treated as a

partnership for federal income tax purposes. It doesn't include hospital facilities

that are located outside the United States. It also doesn't include hospital

facilities that are operated by entities organized as separate legal entities from

the organization that are taxable as a corporation for federal tax purposes

(except for members of a group exemption included in a group return filed by

an organization).

Hospital organization An organization which operates one or more hospital facilities.

Hospital (or cooperative hospital service

organization)

For purposes of Schedule A (Form 990), Public Charity Status and Public

Support, a hospital (or cooperative hospital service organization) is an

organization whose main purpose is to provide hospital or medical care. For

purposes of Schedule A, a rehabilitation institution or an outpatient clinic can

qualify as a hospital if its principal purposes or functions are the providing of

hospital or medical care, but the term doesn't include medical schools, medical

research organizations, convalescent homes, homes for children or the aged,

animal hospitals, or vocational training institutions for handicapped individuals.

Household goods Include furniture, furnishings, electronics, appliances, linens, and other similar

items. They don't include food, paintings, antiques and other objects of art,

jewelry and gems (other than costume jewelry), and collections.

Independent contractor An individual or organization that receives compensation for providing services

to the organization but who isn't treated as an employee. See Pub. 1779 for

more information.

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Independent voting member of governing

body

A voting member of the governing body, if all four of the following

circumstances applied at all times during the organization's tax year.

1. The member wasn't compensated as an officer or other employee of

the organization or of a

related organization (see the Instructions for

Schedule R (Form 990), Related Organizations and Unrelated Partnerships),

except as provided in the religious exception discussed in the instructions for

Form 990, Part VI.

2. The member didn't receive total compensation or other payments

exceeding $10,000 during the organization's tax year from the organization or

from related organizations as an independent contractor, other than

reasonable compensation for services provided in the capacity as a member

of the governing body. For example, a person who receives reasonable

expense reimbursements and reasonable compensation as a director of the

organization doesn't cease to be independent merely because he or she also

received payments of $7,500 from the organization for other arrangements.

3. Neither the member, nor any family member of the member, was

involved in a transaction with the organization (whether directly or indirectly

through affiliation with another organization) required to be reported on

Schedule L (Form 990), Transactions With Interested Persons, for the

organization's tax year.

4. Neither the member, nor any family member of the member, was

involved in a transaction with a taxable or tax-exempt related organization of a

type and amount that would be reportable on Schedule L (Form 990) if required

to be filed by the related organization.

A member of the governing body isn't considered to lack independence merely

because of any of the following circumstances.

1. The member is a donor to the organization, regardless of the amount of

the contribution.

2. The member has taken a bona fide vow of poverty and either:

a. Receives compensation as an agent of a religious order or a section

501(d) religious or apostolic organization, but only under circumstances in

which the member doesn't receive taxable income (for example, Rev. Rul.

77-290, 1977-2 C.B. 26; and Rev. Rul. 80-332, 1980-2 C.B. 34); or

b. Belongs to a religious order that receives sponsorship or payments from

the organization that don't constitute taxable income to the member.

3. The member receives financial benefits from the organization solely in

the capacity of being a member of the charitable or other class served by the

organization in the exercise of its exempt function, such as being a member of a

section 501(c)(6) organization, so long as the financial benefits comply with the

organization's terms of membership.

Initial contract A binding written contract between an applicable tax-exempt organization

and a person who wasn't a disqualified person immediately before entering

into the contract.

Instant bingo See Pull tabs.

Institutional trustee A trustee that isn't an individual or natural person but an organization. For

instance, a bank or trust company serving as the trustee of a trust is an

institutional trustee.

Joint venture Unless otherwise provided, a partnership, limited liability company, or other

entity treated as a partnership for federal tax purposes, as described in

Regulations sections 301.7701-1 through 301.7701-3.

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Key employee For purposes of Form 990, an employee of an organization (other than an

officer, director, or trustee) who meets all three of the following tests applied

in the following order.

1. $150,000 Test. Receives reportable compensation from the

organization and all

related organizations in excess of $150,000 for the

calendar year ending with or within the organization's tax year.

2. Responsibility Test. The employee:

a. Has responsibilities, powers or influence over the organization as a whole

similar to those of officers, directors, or trustees;

b. Manages a discrete segment or activity of the organization that represents

10% or more of the activities, assets, income, or expenses of the organization,

as compared to the organization as a whole; or

c. Has or shares authority to control or determine 10% or more of the

organization's capital expenditures, operating budget, or compensation for

employees.

3. Top 20 Test. Is one of the 20 employees (that satisfy the $150,000 Test

and Responsibility Test) with the highest reportable compensation from the

organization and related organizations for the calendar year ending with or

within the organization's tax year.

See the instructions for Part VII for examples of key employees.

Legislation Includes action by Congress, any state legislature, any local council, or similar

governing body about acts, bills, resolutions, or similar items, or action by the

public in referenda, ballot initiatives, constitutional amendments, or similar

procedures. It doesn't include actions by executive, judicial, or administrative

bodies.

Lobbying See Lobbying activities.

Lobbying activities All activities intended to influence foreign, national, state, or local legislation.

Such activities include direct lobbying (attempting to influence the legislators)

and grassroots lobbying (attempting to influence legislation by influencing the

general public).

Maintaining offices, employees, or agents For purposes of Schedule F (Form 990), Statement of Activities Outside the

United States, includes principal, regional, district, or branch offices, such

offices maintained by agents, independent contractors, and persons situated at

those offices paid wages for services performed. “Agent” is defined under

traditional agency principles (but doesn't include volunteers).

Management company An organization that performs management duties for another organization

customarily performed by or under the direct supervision of the other

organization's officers, directors, trustees, or key employees. These

management duties include, but aren't limited to, hiring, firing, and supervising

personnel; planning or executing budgets or financial operations; and

supervising exempt operations or unrelated trades or businesses. When a

management company is used, the employees may be employed by either the

management company or the exempt organization. Whether the management

company or the exempt organization is the employer will be determined by the

facts and circumstances.

Medical research For purposes of a medical research organization operated in conjunction with a

hospital (see Schedule A (Form 990), Public Charity Status and Public

Support), medical research means investigations, studies, and experiments

performed to discover, develop, or verify knowledge relating to physical or

mental diseases and impairments and their causes, diagnoses, prevention,

treatments, or control.

Member of the governing body A person who serves on an organization's governing body, including a

director or trustee, but not if the person lacks voting power.

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Net assets with donor restrictions Includes endowment funds established by donor-restricted gifts that are

maintained to provide a source of income for either a specified period of time or

until a specific event occurs (see ASC 958-205-45), as well as all other

temporarily restricted net assets held in a donor-restricted endowment,

including unappropriated income from permanent endowments that isn't

subject to a permanent restriction. After Accounting Standards Update

2016-14, ASC 958 uses two classifications, instead of three—net assets with

donor restrictions and net assets without donor restrictions. ASC 958 no longer

uses the term “temporarily-restricted endowment.”

The part of net assets of a not-for-profit entity that is subject to donor-imposed

restrictions.

Net assets without donor restrictions Part of net assets of a not-for-profit entity that is not subject to donor-imposed

restrictions.

Noncash contributions Contributions of property, tangible or intangible, other than money. Noncash

contributions include, but aren't limited to, stocks, bonds, and other securities;

real estate; works of art; stamps, coins, and other collectibles; clothing and

household goods; vehicles, boats, and airplanes; inventories of food, medical

equipment or supplies, books, or seeds; intellectual property, including patents,

trademarks, copyrights, and trade secrets; donated items that are sold

immediately after donation, such as publicly traded stock or used cars; and

items donated for sale at a charity auction. Noncash contributions don't include

volunteer services performed for the reporting organization or donated use of

materials, facilities, or equipment.

Nonexempt charitable trust A trust that meets the following conditions.

•

Isn't exempt from tax under section 501(a).

•

All of its unexpired interests are devoted to charitable purposes.

•

A charitable deduction was allowed for contributions to the trust under section

170, section 545(b)(2), section 642(c), section 2055, section 2106(a)(2), or section

2522, or for amounts paid by or permanently set aside by the trust under section

642(c).

Nonqualified deferred compensation Deferred compensation that is earned pursuant to a nonqualified plan or

nongovernmental section 457 plan. Different rules can apply for purposes of

identifying arrangements subject to sections 83, 409A, 457(f), and 3121(v).

Earned but unpaid incentive compensation can be deferred pursuant to a

nonqualified deferred compensation plan.

Officer Unless otherwise provided (for example, Signature Block, principal officer in

Heading), a person elected or appointed to manage the organization's daily

operations at any time during the tax year, such as a president, vice president,

secretary, treasurer, and, in some cases, Board Chair. The officers of an

organization are determined by reference to its organizing document, bylaws, or

resolutions of its governing body, or as otherwise designated consistent with

state law, but at a minimum include those officers required by applicable state

law. For purposes of Form 990, treat the organization's top management

official and top financial official as officers.

“On behalf of” issuer A corporation organized under the general nonprofit corporation law of a state

whose obligations are considered obligations of a state or local governmental

unit. See Rev. Proc. 82-26, 1982-1 C.B. 476, for a description of the

circumstances under which the IRS will ordinarily issue an advance ruling that

the obligations of a nonprofit corporation were issued on behalf of a state or

local governmental unit. See also Rev. Rul. 63-20, 1963-1 C.B. 24; Rev. Rul.

59-41, 1959-1 C.B. 13; and Rev. Rul. 54-296, 1954-2 C.B. 59. An “on behalf of”

issuer also includes any corporation organized by a state or local governmental

unit specifically to issue tax-exempt bonds to further public purposes. See

Rev. Rul. 57-187, 1957-1 C.B. 65.

Organization manager For purposes of section 4958, any officer, director, or trustee of an

applicable tax-exempt organization, or any individual having powers or

responsibilities similar to officers, directors, or trustees of the organization,

regardless of title.

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Political campaign activities All activities that support or oppose candidates for elective federal, state, or

local public office. It doesn't matter whether the candidate is elected. A

candidate is one who offers himself or herself or is proposed by others for

public office. Political campaign activity doesn't include any activity to

encourage participation in the electoral process, such as voter registration or

voter education, provided that the activity doesn't directly or indirectly support

or oppose any candidate.

Political subdivision A division of any state or local governmental unit which is a municipal

corporation or which has been delegated the right to exercise part of the

sovereign power of the unit. Sovereign power includes the power to make and

enforce laws.

Principal officer For purposes of the Heading on page 1 of Form 990 (but not for the purposes of

the Signature Block or other parts of the Form 990), an officer of the

organization who, regardless of title, has ultimate responsibility for

implementing the decisions of the organization's governing body, or for

supervising the management, administration, or operation of the organization.

Private business use For purposes of Schedule K (Form 990), Supplemental Information on

Tax-Exempt Bonds, use by the organization or another 501(c)(3) organization in

an unrelated trade or business. Private business use also generally includes

any use by a nongovernmental person, other than a section 501(c)(3)

organization, unless otherwise permitted through an exception or safe harbor

provided under the regulations or a revenue procedure.

Private foundation An organization described in section 501(c)(3) that isn't a public charity.

Some private foundations are classified as operating foundations (also known

as private operating foundations) under section 4942(j)(3) or exempt operating

foundations under section 4940(d)(2). A private foundation retains its private

foundation status until such status is terminated under section 507. Thus, a

tax-exempt private foundation becomes a taxable private foundation if its

section 501(c)(3) status is revoked.

Proceeds For purposes of Schedule K (Form 990), Supplemental Information on

Tax-Exempt Bonds, generally the sale proceeds of an issue (other than those

sale proceeds used to retire bonds of the issue that aren't deposited in a

reasonably required reserve or replacement fund). Proceeds also include any

investment proceeds from investments that accrue during the project period

(net of rebate amounts attributable to the project period). See Regulations

section 1.141-1(b).

Professional fundraising services Services performed for the organization requiring the exercise of professional

judgment or discretion consisting of planning, management, preparation of

materials (such as direct mail solicitation packages and applications for grants

or other assistance), provision of advice and consulting regarding solicitation of

contributions, and direct solicitation of contributions, such as soliciting

restricted or unrestricted grants to provide services to the general public.

However, professional fundraising doesn't include services provided by the

organization's employees in their capacity as employees (except as provided

in the instructions for Part I, line 16a), nor does professional fundraising include

purely ministerial tasks, such as printing, mailing services, or receiving and

depositing contributions to a charity, such as services provided by a bank or

caging service.

Program-related investment Investments made primarily to accomplish the organization's exempt purposes

rather than to produce income. Examples of program-related investments

include student loans and notes receivable from other exempt organizations

that obtained the funds to pursue the filing organization's exempt function.

Public charity An organization described in section 501(c)(3) and that is excepted from private

foundation status because it is described in section 509(a)(1) (which

cross-references sections 170(b)(1)(A)(i) through (vi), and (ix)), 509(a)(2),

509(a)(3), or 509(a)(4).

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Publicly traded securities Generally, include common and preferred stocks, bonds (including

governmental obligations such as bonds and Treasury bills), mutual fund

shares, and other investments listed and regularly traded in an over-the-counter

market or an established exchange and for which market quotations are

published or are otherwise readily available. (See further explanation in the

instructions for Part X, line 11; and Schedule M (Form 990), Noncash

Contributions, line 9).

Pull tabs Includes games in which an individual places a wager by purchasing preprinted

cards that are covered with pull tabs. Winners are revealed when the individual

pulls back the sealed tabs on the front of the card and compares the patterns

under the tabs with the winning patterns preprinted on the back of the card.

Included in the definition of pull tabs are “instant bingo,” “mini bingo,” and other

similar scratch-off cards. Satellite, Internet, and progressive or event bingo are

games conducted in many different places simultaneously and the winners

aren't all present when the wagers are placed, the winners are determined, and

the prizes are distributed. Revenue and expenses associated with satellite,

Internet, and progressive bingo should be included under this category.

However, certain bingo games within a hybrid gaming event (such as

progressive or event bingo) can also qualify as bingo if the individual game

meets the preceding definition of bingo.

Qualified 501(c)(3) bond A tax-exempt bond, the proceeds of which are used by a section 501(c)(3)

organization to advance its charitable purpose. Requirements generally

applicable to a qualified section 501(c)(3) bond under section 145 include the

following.

1. All property financed by the bond issue is to be owned by a section

501(c)(3) organization or a

governmental unit.

2. At least 95% of net proceeds of the bond issue are used either by a

governmental unit or a section 501(c)(3) organization in activities that aren't

unrelated trades or businesses (determined by applying section 513).

Qualified conservation contribution Any contribution of a qualified real property interest to a qualified organization

exclusively for conservation purposes. A “qualified real property interest”

means any of the following interests in real property.

1. The entire interest of the donor.

2. A remainder interest.

3. A restriction (such as an easement), granted in perpetuity, on the use

which may be made of the real property.

A “qualified organization” means an organization which is:

a. A governmental unit described in section 170(c)(1),

b. A publicly supported charitable organization described in sections 509(a)(1)

and 170(b)(1)(A)(vi) or section 509(a)(2) (see the instructions for Parts II and III

of Schedule A (Form 990)), or

c. A supporting organization described in sections 501(c)(3) and 509(a)(3)

that is controlled by a governmental unit or a publicly supported charitable

organization.

In addition, a qualified organization must have a commitment to protect the

conservation purposes of a qualified conservation contribution, and have the

resources to enforce the restrictions.

A “conservation purpose” means:

1. The preservation of land areas for outdoor recreation by, or for the

education of, the general public;

2. The protection of a relatively natural habitat of fish, wildlife, plants, or

similar ecosystems;

3. The preservation of open space (including farm and forest land) where

such preservation will yield a significant public benefit and is for the scenic

enjoyment of the general public or is pursuant to a clearly delineated federal,

state, or local governmental conservation policy; or

4. The preservation of a historically important land area or a certified

historic structure.

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See section 170(h) for additional information, including special rules about the

conservation purpose requirement for buildings in registered historic districts.

See also Conservation easement.

Qualified state or local political organization A type of political organization that meets the following requirements.

•

It limits its exempt function to the selection process relating solely to any state or

local public office or office in a state or local political organization.

•

It is required under a state law to report to a state agency (and does report)

information that would otherwise be required to be reported on Form 8872, Political

Organization Report of Contributions and Expenditures, or it is required to report

under state law (and does report) at least the following information.

1. The name and address of every person who contributes a total of $500 or

more during the calendar year and the amount of each contribution.

2. The name and address of every person to whom the organization makes

expenditures aggregating $800 or more during the calendar year, and the amount

of each expenditure.

3. Any additional information specified in section 527(j)(3), if state law requires

the reporting of that information to the state agency.

•

The state agency makes the reports filed by the organization publicly available.

•

The organization makes the reports filed with the state agency publicly available

in the manner described in section 6104(d).

•

No federal candidate or office holder controls or materially participates in the

direction of the organization, solicits contributions to the organization, or directs

any of the organization's disbursements.

Quasi-endowment Net assets without donor restrictions designated by an entity's governing board

to be invested to provide income for generally a long but not necessarily

specified period. A board-designated endowment, which results from an

internal designation, is generally not donor-restricted and is classified as net

assets without donor restrictions. The governing board has the right to decide

at any time to expend such funds. Also referred to as a “board-designated

endowment.”

Reasonable compensation The value that would ordinarily be paid for like services by like enterprises

under like circumstances.

Reasonable effort A reasonable amount of effort in information gathering that the organization is

expected to undertake in order to provide information requested on Form 990.

See the specific instructions for Part VI, lines 1b and 2; Part VII, Section A

(compensation from related organizations); and Schedule L (Form 990), Parts

III and IV, for examples of reasonable efforts.

Refunding escrow One or more funds established as part of a single transaction or a series of

related transactions, containing proceeds of a refunding issue and any other

amounts to provide for payment of principal or interest on one or more prior

issues. See Regulations section 1.148-1(b).

Refunding issue An issue of obligations, the proceeds of which are used to pay principal,

interest, or redemption price on another issue (a prior issue), including the

issuance costs, accrued interest, capitalized interest on the refunding issue, a

reserve or replacement fund, or similar costs, if any, properly allocable to that

refunding issue. A current refunding issue is a refunding issue that is issued not

more than 90 days before the last expenditure of any proceeds of the refunding

issue for the payment of principal or interest on the prior issue. An advance

refunding issue is a refunding issue that isn't a current refunding issue. See

Regulations sections 1.150-1(d)(1), 1.150-1(d)(3), and 1.150-1(d)(4).

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Related organization An organization, including a nonprofit organization, a stock corporation, a

partnership or limited liability company, a trust, and a governmental unit or

other government entity, that stands in one or more of the following

relationships to the filing organization at any time during the tax year.

•

Parent: an organization that controls the filing organization.

•

Subsidiary: an organization controlled by the filing organization.

•

Brother/Sister: an organization controlled by the same person or persons that

control the filing organization. However, if the filing organization is a trust that has a

bank or financial institution trustee that is also the trustee of another trust, the other

trust isn't a Brother/Sister related organization of the filing organization on the

ground of common control by the bank or financial institution trustee.

•

Supporting/Supported: an organization that claims to be at any time during the

tax year, or that is classified by the IRS at any time during the tax year, as (i) a

supporting organization of the filing organization within the meaning of section

509(a)(3), if the filing organization is a supported organization within the meaning

of section 509(f)(3); or (ii) a supported organization, if the filing organization is a

supporting organization.

•

Sponsoring Organization of a VEBA: an organization that establishes or

maintains a section 501(c)(9) voluntary employees’ beneficiary association (VEBA)

during the tax year. A sponsoring organization of a VEBA also includes an

employee organization, association, committee, joint board of trustees, or other

similar group of representatives of the parties which establish or maintain a VEBA.

Although a VEBA must report a sponsoring organization as a related organization,

a sponsoring organization shouldn't report a VEBA as a related organization,

unless the VEBA is related to the sponsoring organization in some other capacity

described in this definition.

•

Contributing Employer of a VEBA: an employer that makes a contribution or

contributions to the VEBA during the tax year. Although a VEBA must report a

contributing employer as a related organization, a contributing employer shouldn't

report a VEBA as a related organization, unless the VEBA is related to the

contributing employer in some other capacity described in this definition.

The organization must determine its related organizations for purposes of

completing Form 990, Parts VI (Governance), VII (Compensation), VIII

(Statement of Revenue), and X (Balance Sheet); Schedule D (Form 990);

Schedule J (Form 990); and Schedule R (Form 990). See the instructions for

those parts and schedules for related organization reporting requirements.

Religious order An organization described in Rev. Proc. 91-20, 1991-1 C.B. 524.

Reportable compensation In general, the aggregate compensation that is reported (or required to be

reported, if greater) in box 1 or 5 of Form W-2 (whichever amount is greater);

box 1 of Form 1099-NEC; and/or in box 6 of Form 1099-MISC, for the calendar

year ending with or within the organization's tax year. For foreign persons who

receive U.S. source income, reportable compensation includes the amount

reportable in box 2 of Form 1042-S. For persons for whom compensation

reporting on Form W-2, 1099-NEC, 1099-MISC, or 1042-S isn't required

(certain foreign persons, institutional trustees, and persons whose

compensation was below the $600 reporting threshold for Form 1099-NEC or

1099-MISC), reportable compensation includes the total value of the

compensation paid in the form of cash or property during the calendar year

ending with or within the organization's tax year.

Review of financial statement An examination of an organization's financial records and practices by an

independent accountant with the objective of assessing whether the financial

statements are plausible, without the extensive testing and external validation

procedures of an audit.

School An organization, the primary function of which is the presentation of formal

instruction, and which has a regular faculty, a curriculum, an enrolled body of

students, and a place where educational activities are regularly conducted.

Security/securities Any bond, debenture, note, or certificate or other evidence of indebtedness

issued by a corporation, government or political subdivision, share of stock,

voting trust certificate, or any certificate of interest or participation in, certificate

of deposit or receipt for, temporary or interim certificate for, or warrant or right to

subscribe to or purchase, any of the foregoing.

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Short accounting period An accounting period of less than 12 months, which exists when an

organization changes its annual accounting period, and which can exist in its

initial or final year of existence (see Tax year).

Short period See Short accounting period.

Significant disposition of net assets A disposition of net assets, consisting of a sale, exchange, disposition, or other

transfer of more than 25% of the FMV of the organization's net assets during

the year, whether or not the organization received full or adequate

consideration. A significant disposition of net assets involves:

1. One or more dispositions during the organization's tax year, amounting

to more than 25% of the

FMV of the organization's net assets as of the

beginning of its tax year; or

2. One of a series of related dispositions or events begun in a prior year

that, when combined, comprise more than 25% of the FMV of the

organization's net assets as of the beginning of the tax year when the first

disposition in the series was made. Whether a significant disposition of net

assets occurred through a series of related dispositions depends on the facts

and circumstances in each case.

Examples of the types of transactions that are “a significant disposition of net

assets” required to be reported on Schedule N (Form 990), Liquidation,

Termination, Dissolution, or Significant Disposition of Assets, Part II, include:

•

Taxable or tax-free sales or exchanges of exempt assets for cash or other

consideration (a social club described in section 501(c)(7) selling land or an

exempt organization selling assets it had used to further its exempt purposes);

•

Sales, contributions, or other transfers of assets to establish or maintain a

partnership,

joint venture, or corporation (for-profit or nonprofit) whether or not the

sales or transfers are governed by section 721 or section 351, whether or not the

transferor received an ownership interest in exchange for the transfer;

•

Sales of assets by a partnership or joint venture in which the exempt partner has

an ownership interest; and

•

Transfers of assets pursuant to a reorganization in which the organization is a

surviving entity.

The following types of situations aren't considered significant dispositions of net

assets for purposes of Schedule N, Part II.

•

The change in composition of publicly traded securities held in an exempt

organization's passive investment portfolio.

•

Asset sales made in the ordinary course of the organization's exempt activities to

accomplish the organization's exempt purposes, for example, gross sales of

inventory.

•

Grants or other assistance made in the ordinary course of the organization's

exempt activities to accomplish the organization's exempt purposes, for example,

the regular charitable distributions of a United Way or other federated fundraising

organization.

•

A decrease in the value of net assets due to market fluctuation in the value of

assets held by the organization.

•

Transfers to a disregarded entity of which the organization is the sole member.

Sponsoring organization Any organization which is all of the following.

•

Described in section 170(c), other than governmental units described in section

170(c)(1) and without regard to section 170(c)(2)(A).

•

Not a private foundation as defined in section 509(a).

•

Maintains one or more donor advised funds.

State of legal domicile For a corporation, the state of incorporation (country of incorporation for a

foreign corporation formed outside the United States). For a trust or other entity,

the state whose law governs the organization's internal affairs (the foreign

country whose law governs for a foreign organization other than a corporation).

Subordinate organization One of the organizations, typically local in nature, that is recognized as exempt

in a group exemption letter and subject to the general supervision and control

of a central organization.

Supported organization A public charity described in section 509(a)(1) or 509(a)(2) supported by a

supporting organization described in section 509(a)(3).

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Supporting organization A public charity claiming status on Form 990 or otherwise under section 509(a)

(3). A supporting organization is organized and operated exclusively to support

one or more supported organizations. A supporting organization that is

operated, supervised, or controlled by one or more supported organizations is

a Type I supporting organization. The relationship of a Type I supporting

organization with its supported organization(s) is comparable to that of a

parent-subsidiary relationship. A supporting organization supervised or

controlled in connection with one or more supported organizations is a Type II

supporting organization. A Type II supporting organization is controlled or

managed by the same persons that control or manage its supported

organization(s). A supporting organization that is operated in connection with

one or more supported organizations is a Type III supporting organization. A

Type III supporting organization is further considered either functionally

integrated with its supported organization(s) or not functionally integrated with

its supported organization(s) (Type III other). Finally, a supporting organization

can't be controlled directly or indirectly by one or more disqualified persons

(as defined in section 4946), other than foundation managers and other than

one or more public charities described in section 509(a)(1) or (2).

Tax-exempt bond An obligation issued by or on behalf of a governmental issuer on which the

interest paid is excluded from the holder's gross income under section 103. For

this purpose, a bond can be any form of indebtedness under federal tax law,

including a bond, note, loan, or lease-purchase agreement.

Tax year The annual accounting period for which the Form 990 is being filed, whether

the calendar year ending December 31 or a fiscal year ending on the last day of

any other month. The organization may have a short tax year in its first year of

existence, in any year when it changes its annual accounting period (for

example, from a December 31 year-end to a June 30 year-end), and in its last

year of existence (for example, when it merges into another organization or

dissolves). See also Current year, Fiscal year, and Short period.

Term endowment An endowment fund established to provide income for a specified period.

Territory of the United States Includes the Commonwealth of Puerto Rico, the Commonwealth of the

Northern Mariana Islands, Guam, American Samoa, and the U.S. Virgin

Islands.

Top financial official The person who has ultimate responsibility for managing the organization's

finances, for example, the treasurer or chief financial officer.

Top management official A person who has ultimate responsibility for implementing the decisions of the

organization's governing body or for supervising the management,

administration, or operation of the organization (for example, the organization's

president, CEO, or executive director).

Total assets The amount reported on Form 990, Part X, line 16, column (B).

Trustee See Director or trustee.

United States Unless otherwise provided, includes the 50 states, the District of Columbia, the

Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana

Islands, Guam, American Samoa, and the U.S. Virgin Islands.

Unrelated business See Unrelated trade or business.

Unrelated business income Income from an unrelated trade or business as defined in section 513.

Unrelated business gross income Gross income from an unrelated trade or business as defined in section 513.

Unrelated organization An organization that isn't a related organization to the filing organization.

Unrelated trade or business Any trade or business, the conduct of which isn't substantially related to the

exercise or performance by the organization of its charitable, educational, or

other purpose or function constituting the basis for its exemption. See Pub. 598

and the Instructions for Form 990-T for a discussion of what is an unrelated

trade or business.

U.S. territory See Territory of the United States.

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Volunteer A person who serves the organization without compensation, for example, a

member of the organization's governing body who serves the organization

without compensation. “Compensation” for this purpose includes tips and

noncash benefits, except for:

•

Reimbursement of expenses under a reimbursement or other expense

allowance arrangement in which there is adequate accounting to the organization,

•

Working condition fringe benefits described in section 132,

•

Liability insurance coverage for acts performed on behalf of the exempt

organization, and

•

De minimis fringe benefits.

Voting member of the governing body A member of the organization's governing body with power to vote on all

matters that may come before the governing body (other than a conflict of

interest that disqualifies the member from voting).

Works of art Include paintings, sculptures, prints, drawings, ceramics, antiques, decorative

arts, textiles, carpets, silver, photography, film, video, installation and

multimedia arts, rare books and manuscripts, historical memorabilia, and other

similar objects. Art doesn't include collectibles.

Year of formation The year in which the organization was created or formed under applicable

state law (if a corporation, the year of incorporation).

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Appendix of Special

Instructions to Form

990

Contents

A Exempt Organizations Reference Chart

B How To Determine Whether an Organization's Gross Receipts Are Normally $50,000 (or $5,000) or Less

C Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and Section 501(c)(15) Organizations

D Public Inspection of Returns

E Group Returns—Reporting Information on Behalf of the Group

F Disregarded Entities and Joint Ventures—Inclusion of Activities and Items

G Section 4958 Excess Benefit Transactions

H Forms and Publications To File or Use

I Use of Form 990 or 990-EZ To Satisfy State Reporting Requirements

J Contributions

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Appendix A. Exempt

Organizations

Reference Chart

Type of Organization Internal Revenue Code Section

Corporations Organized Under Act of Congress 501(c)(1)

Title Holding Corporations 501(c)(2)

Charitable, Religious, Educational, Scientific, etc., Organizations 501(c)(3)

Civic Leagues and Social Welfare Organizations 501(c)(4)

Labor, Agricultural, and Horticultural Organizations 501(c)(5)

Business Leagues, etc. 501(c)(6)

Social and Recreation Clubs 501(c)(7)

Fraternal Beneficiary and Domestic Fraternal Societies and Associations 501(c)(8) & (c)(10)

Voluntary Employees' Beneficiary Associations 501(c)(9)

Teachers' Retirement Fund Associations 501(c)(11)

Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies,

Mutual or Cooperative Telephone Companies, etc.

501(c)(12)

Cemetery Companies 501(c)(13)

State-Chartered Credit Unions, Mutual Reserve Funds 501(c)(14)

Insurance Companies or Associations Other Than Life 501(c)(15)

Cooperative Organizations to Finance Crop Operations 501(c)(16)

Supplemental Unemployment Benefit Trusts 501(c)(17)

Employee Funded Pension Trusts (created before June 25, 1959) 501(c)(18)

Organizations of Past or Present Members of the Armed Forces 501(c)(19) & (c)(23)

Black Lung Benefit Trusts 501(c)(21)

Withdrawal Liability Payment Funds 501(c)(22)

Trusts described in section 4049 of the Employer Retirement Income Security

Act

501(c)(24)

Title Holding Corporations or Trusts 501(c)(25)

State-Sponsored Organizations Providing Health Coverage for High-Risk

Individuals

501(c)(26)

State-Sponsored Workmen's Compensation and Insurance and Reinsurance

Organizations

501(c)(27)

National Railroad Retirement Investment Trust 501(c)(28)

Qualified Nonprofit Health Insurance Issuers 501(c)(29)

Religious and Apostolic Associations 501(d)

Cooperative Hospital Service Organizations 501(e)

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Cooperative Service Organizations of Operating Educational Organizations 501(f)

Amateur Sports Organizations 501(j)

Child Care Organizations 501(k)

Charitable Risk Pools 501(n)

Political Organizations 527

Appendix B. How To

Determine Whether an

Organization's Gross

Receipts Are Normally

$50,000 (or $5,000) or

Less

To figure whether an organization has to

file Form 990-EZ (or Form 990), apply the

$50,000 (or $5,000) gross receipts test

(below) using the following definition of

gross receipts and information in Figuring

Gross Receipts below.

Gross Receipts

Gross receipts are the total amounts the

organization received from all sources

during its annual tax year (including short

years) without subtracting any costs or

expenses.

Don't use the definition of gross

receipts described in Appendix

C. Special Gross Receipts Tests

for Determining Exempt Status of Section

501(c)(7) and 501(c)(15) Organizations

to figure gross receipts for this purpose.

Those tests are limited to determining the

exempt status of section 501(c)(7) and

501(c)(15) organizations.

Gross receipts when acting as an

agent. If a local chapter of a section

501(c)(8) fraternal organization collects

insurance premiums for its parent lodge

and merely sends those premiums to the

parent without asserting any right to use

the funds or otherwise deriving any

benefit from them, the local chapter

doesn't include the premiums in its gross

receipts. The parent lodge reports them

instead. The same treatment applies in

other situations in which one organization

collects funds merely as an agent for

another.

Figuring Gross Receipts

Figure gross receipts for Form 990 and

990-EZ as follows.

Form 990. Gross receipts are the sum of

lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b,

and 12 (column (A)) of Form 990, Part

VIII.

CAUTION

Form 990-EZ.

Gross receipts are the

sum of lines 5b, 6c, 7b, and 9 of Form

990-EZ, Part I.

Example. Organization M reported

$50,000 as total revenue on line 9 of its

Form 990-EZ. M added back the costs

and expenses it had deducted on lines

5b ($2,000), 6c ($1,500), and 7b ($500)

to its total revenue of $50,000 and

determined that its gross receipts for the

tax year were $54,000.

$50,000 Gross Receipts

Test

To determine whether an organization's

gross receipts are normally $50,000 or

less, apply the following test. An

organization's gross receipts are

considered to be normally $50,000 or

less if the organization is:

1. Up to a year old and has received,

or donors have pledged to give, $75,000

or less during its first tax year;

2. Between 1 and 3 years old and

averaged $60,000 or less in gross

receipts during each of its first 2 tax

years; or

3. Three years old or more and

averaged $50,000 or less in gross

receipts for the immediately preceding 3

tax years (including the year for which the

return would be filed).

If the organization's gross receipts are

normally $50,000 or less, it must submit

Form 990-N, Electronic Notice

(e-Postcard) for Tax-Exempt

Organizations Not Required to File Form

990 or 990-EZ, if it chooses not to file

Form 990 or 990-EZ. In general,

organizations excepted from filing Form

990 or 990-EZ because of low gross

receipts must submit Form 990-N. See

filing exceptions described under

General

Instructions, Section B, earlier.

$5,000 Gross Receipts

Test

To determine whether an organization's

gross receipts are normally $5,000 or

less, apply the following test. An

organization's gross receipts are

considered to be normally $5,000 or less

if the organization is:

Up to a year old and has received,

or donors have pledged to give, $7,500 or

less during its first tax year;

2. Between 1 and 3 years old and

averaged $6,000 or less in gross receipts

during each of its first 2 tax years; or

3. Three years old or more and

averaged $5,000 or less in gross receipts

for the immediately preceding 3 tax years

(including the year for which the return

would be filed).

Appendix C. Special

Gross Receipts Tests

for Determining Exempt

Status of Section 501(c)

(7) and 501(c)(15)

Organizations

Section 501(c)(7) organizations (social

clubs) and section 501(c)(15)

organizations (insurance companies)

apply the same gross receipts test as

other organizations to determine whether

they must file Form 990 or 990-EZ.

However, section 501(c)(7) and section

501(c)(15) organizations are also subject

to separate gross receipts tests to

determine whether they qualify as tax

exempt for the tax year. The following

tests use a special definition of gross

receipts for purposes of determining

whether these organizations are exempt

for a particular tax year.

Section 501(c)(7). A section 501(c)(7)

organization can receive up to 35% of its

gross receipts, including investment

income, from sources outside its

membership and remain tax exempt. Part

of the 35% (up to 15% of gross receipts)

can be from public use of a social club's

facilities.

Gross receipts, for purposes of

determining the tax-exempt status of

section 501(c)(7) organizations, are the

club's income from its usual activities and

include:

•

Charges;

•

Admissions;

•

Membership fees;

•

Dues;

•

Assessments; and

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•

Investment income (dividends, rents,

and similar receipts), and normal

recurring capital gains on investments.

Gross receipts for this purpose don't

include capital contributions (see

Regulations section 1.118-1), initiation

fees,

or unusual amounts of income (the

sale of the clubhouse).

College fraternities or sororities

or other organizations that

charge membership initiation

fees, but not annual dues, must include

initiation fees in their gross receipts.

Section 501(c)(15). If any section

501(c)(15) insurance company (other

than life insurance) meets both parts of

the following test, then the company can

file Form 990 (or Form 990-EZ, if

applicable).

1. The company's gross receipts

must be equal to or less than $600,000.

2. The company's premiums must be

more than 50% of its gross receipts.

If the company didn't meet this test and

the company is a mutual insurance

company, then it must meet the

Alternate

test next to qualify to file Form 990 (or

Form 990-EZ, if applicable). Insurance

companies that don't qualify as tax

exempt must file Form 1120-PC, U.S.

Property and Casualty Insurance

Company Income Tax Return, or Form

1120, U.S. Corporation Income Tax

Return, as taxable entities for the year.

See Notice 2006-42, 2006-19 I.R.B. 878.

Alternate test. If any section 501(c)

(15) insurance company (other than life

insurance) is a mutual insurance

company and it didn't meet the above

test, then the company must meet both

parts of the following alternate test.

1. The company's gross receipts

must be equal to or less than $150,000.

2. The company's premiums must be

more than 35% of its gross receipts.

If the company doesn't meet either test,

then it must file Form 1120-PC or Form

1120 (if the company isn't entitled to

insurance reserves) instead of Form 990

or 990-EZ.

The alternate test doesn't apply if

any employee of the mutual

insurance company or a member

of the employee's family is an employee

of another company that is exempt under

section 501(c)(15) (or would be exempt if

this provision didn't apply).

Gross receipts. To determine

whether a section 501(c)(15)

organization satisfies either of the above

tests described in Appendix C, figure

gross receipts by adding:

1. Premiums (including deposits and

assessments) without reduction for return

CAUTION

premiums or premiums paid for

reinsurance;

2. Gross investment income of a

non-life insurance company (as

described in section 834(b)); and

3. Other items that are included in

the filer's gross income under subchapter

B, chapter 1, subtitle A, of the Code.

This definition doesn't, however, include

contributions to capital. For more

information, see Notice 2006-42.

Premiums. Premiums consist of all

amounts received as a result of entering

into an insurance contract.

They are

reported on Form 990, Part VIII, line 2, or

on Form 990-EZ, Part I, line 2.

Anti-abuse rule. The anti-abuse rule,

found in section 501(c)(15)(C), explains

how gross receipts (including premiums)

from all members of a controlled group

are aggregated in figuring the above

tests.

Appendix D. Public

Inspection of Returns

Some members of the public rely on

Form 990, or 990-EZ, as the primary or

sole source of information about a

particular organization. How the public

perceives an organization in those cases

may be determined by the information

presented on its returns.

An organization's completed Form 990

or 990-EZ is available for public

inspection as required by section 6104.

Schedule B (Form 990), Schedule of

Contributors, is open for public inspection

for section 527 organizations filing Form

990 or 990-EZ. For other organizations

that file Form 990 or 990-EZ, the names

and addresses of contributors listed on

Schedule B aren't required to be made

available for public inspection. All other

information reported on Schedule B,

including the amount of contributions, the

description of noncash contributions, and

any other information, is required to be

made available for public inspection

unless it clearly identifies the contributor.

Form 990-T filed after August 17, 2006,

by a section 501(c)(3) organization to

report any unrelated business income is

also available for public inspection and

disclosure.

Through the IRS

Use Form 4506-A, Request for a Copy of

Exempt or Political Organization IRS

Form, to request:

•

A copy of an exempt or political

organization's return, report, notice, or

exemption application; or

•

An inspection of a return, report,

notice, or exemption application at an IRS

office.

Complete information is available on

the IRS website at IRS.gov/Charities-

Non-Profits/Copies-of-EO-Returns-

Available.

The IRS can't disclose portions of an

exemption application relating to any

trade secrets, etc. Additionally, the IRS

generally can't disclose the names and

addresses of contributors. See the

Instructions for Schedule B (Form 990)

for more information about the disclosure

of that schedule.

Notice 2008-49, 2008-20 I.R.B. 979,

provides interim guidance regarding the

requirement that section 501(c)(3)

organizations and the IRS make available

for public inspection Form 990-T.

Form 990 or 990-EZ can only be

requested for section 527 organizations

for tax years beginning after June 30,

2000.

A return, report, notice, or exemption

application can be inspected at an IRS

office free of charge. Copies of these

items can also be obtained through the

organization as discussed in the following

section.

Through the

Organization

Public inspection and distribution of

certain returns of unrelated business

income. Section 501(c)(3) organizations

that are required to file Form 990-T after

August 17, 2006, must make Form 990-T

available for public inspection under

section 6104(d)(1)(A)(ii).

Public inspection and distribution of

returns and reports for a political or-

ganization. Section 527 political

organizations required to file Form 990 or

990-EZ must, in general, make their

Forms 8871, 8872, 990, or 990-EZ

available for public inspection in the same

manner as annual information returns of

section 501(c) organizations are made

available. See

Public inspection and

distribution of applications for tax

exemption and annual information returns

of tax-exempt organizations, later.

Generally, Form 8871 and Form 8872 are

available for inspection and printing at

IRS.gov/Charities-and-Nonprofits.

Note that a section 527 political

organization (and an organization

filing Form 990-PF) must disclose

their Schedule B (Form 990). See the

Instructions for Schedule B. The

penalties discussed in General

Instructions, Section H, Failure-To-File

Penalties, earlier, also apply to section

527 political organizations (Rev. Rul.

2003-49, 2003-20 I.R.B. 903).

Public inspection and distribution of

applications for tax exemption and

annual information returns of

tax-exempt organizations. Under

TIP

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Regulations sections 301.6104(d)-1

through -3, a tax-exempt organization

must:

•

Make its application for recognition of

exemption and its annual information

returns available for public inspection

without charge at its principal, regional,

and district offices during regular

business hours;

•

Make each annual information return

available for a period of 3 years beginning

on the date the return is required to be

filed (determined with regard to any

extension of time for filing) or is actually

filed, whichever is later; and

•

Provide a copy without charge (for

Form 990-T, this requirement applies only

to Forms 990-T filed after August 17,

2006), other than a reasonable fee

for

reproduction and actual postage costs, of

all or any part of any application or return

required to be made available for public

inspection to any individual who makes a

request for a copy in person or in writing

(except as provided in Regulations

sections 301.6104(d)-2 and -3).

Definitions

Tax-exempt organization is any

organization that is described in section

501(c) or (d) and is exempt from taxation

under section 501(a). The term

“tax-exempt organization” also includes

any section 4947(a)(1) nonexempt

charitable trust or nonexempt private

foundation that is subject to the reporting

requirements of section 6033.

Application for tax exemption

includes:

•

Any prescribed application form (Form

1023, 1023-EZ, 1024, or 1024-A),

•

All documents and statements the IRS

requires an applicant to file with the form,

•

Any statement or other supporting

document submitted in support of the

application, and

•

Any letter or other document issued by

the IRS concerning the application.

Application for tax exemption

doesn't include:

•

Any application for tax exemption filed

before July 15, 1987, unless the

organization filing the application had a

copy of the application on July 15, 1987;

•

In the case of a tax-exempt

organization other than a private

foundation, the name and address of any

contributor to the organization; or

•

Any material that isn't available for

public inspection under section 6104.

If there is no prescribed

application form, see Regulations

section 301.6104(d)-1(b)(3)(ii).

Annual information return includes:

•

An exact copy of the Form 990 or Form

990-EZ filed by a tax-exempt organization

as required by section 6033,

CAUTION

•

Any amended return the organization

files with the IRS after the date the

original return is filed (both the original

and amended return are subject to the

public inspection requirements), or

•

An exact copy of Form 990-T if one is

filed by a section 501(c)(3) organization.

The copy must include all information

furnished to the IRS on Form 990,

990-EZ, or 990-T as well as all

statements, attachments, and supporting

documents, except for the name and

address of any contributor to the

organization. See the Instructions for

Schedule B (Form 990). However,

statements, attachments, and supporting

documents filed with Form 990-T that

don't relate to the imposition of unrelated

business income tax aren't required to be

made available for public inspection and

copying.

See Notice 2008-49.

Annual returns more than 3 years

old. An annual information return doesn't

include any return after the expiration of 3

years from the date the return is required

to be filed (including any extension of

time that has been granted for filing the

return) or is actually filed, whichever is

later.

If an organization files an amended

return, however, the amended return

must be made available for a period of 3

years beginning on the date it is filed with

the IRS.

Local or subordinate organizations.

For rules relating to annual information

returns of local or subordinate

organizations, see Regulations section

301.6104(d)-1(f)(2).

Regional or district offices. A

regional or district office is any office of a

tax-exempt organization, other than its

principal office, that has paid employees,

whether part-time or full-time, whose

aggregate number of paid hours a week

is normally at least 120.

A site isn't considered a regional or

district office, however, if:

•

The only services provided at the site

further exempt purposes (daycare, health

care, scientific or medical research); and

•

The site doesn't serve as an office for

management staff, other than managers

who are involved solely in managing the

exempt function activities at the site.

Special Rules Relating

to Public Inspection

Permissible conditions on public

inspection. A tax-exempt organization:

•

Can have an employee present in the

room during an inspection;

•

Must allow the individual conducting

the inspection to take notes freely during

the inspection; and

•

Must allow the individual to photocopy

the document at no charge, if the

individual provides photocopying

equipment at the place of inspection.

Organizations that don't maintain

permanent offices. A tax-exempt

organization with no permanent office:

•

Must make its application for tax

exemption and its annual information

returns available for inspection at a

reasonable location of its choice;

•

Must permit public inspection within a

reasonable amount

of time after receiving

a request for inspection (normally not

more than 2 weeks) and at a reasonable

time of day;

•

Can mail, within 2 weeks of receiving

the request, a copy of its application for

tax exemption and annual information

returns to the requester instead of

allowing an inspection; and

•

Can charge the requester for copying

and actual postage costs only if the

requester consents to the charge.

An organization that has a permanent

office, but has no office hours, or very

limited hours during certain times of the

year, must make its documents available

during those periods when office hours

are limited, or not available, as though it

were an organization without a

permanent office.

Special Rules Relating

to Copies

Time and place for providing copies

in response to requests made in

person. A tax-exempt organization

must:

•

Provide copies of required documents

under section 6104(d) in response to a

request made in person at its principal,

regional, and district offices during

regular business hours; and

•

Provide copies to a requester on the

day the request is made, except for

unusual circumstances (explained next).

Unusual circumstances. In the case

of an in-person request, where unusual

circumstances exist so that fulfilling the

request on the same business day

causes an unreasonable burden

to the

tax-exempt organization, the organization

must provide the copies no later than the

next business day following the day that

the unusual circumstances cease to

exist, or the 5th business day after the

date of the request, whichever occurs

first.

Unusual circumstances include:

•

Requests received that exceed the

organization's daily capacity to make

copies;

•

Requests received shortly before the

end of regular business hours that require

an extensive amount of copying; or

•

Requests received on a day when the

organization's managerial staff capable of

fulfilling the request is conducting special

duties (student registration or attending

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an off-site meeting or convention), rather

than its regular administrative duties.

Agents for providing copies. For

rules relating to use of agents to provide

copies, see Regulations sections

301.6104(d)-1(d)(1)(iii) and -1(d)(2)(ii)

(C).

Request for copies in writing. A

tax-exempt organization must honor a

written request for a copy of documents

(or the requested part) required under

section 6104(d) if the request:

1. Is addressed to (and delivered by

mail, electronic mail, facsimile, or a

private delivery service, as defined in

section 7502(f)) a principal, regional, or

district office of the organization; and

2. Sets forth the address to which the

copy of the documents should be sent.

Time and Manner of Fulfilling Written Requests

IF the organization... THEN the organization...

receives a written request for a copy must mail the copy of the requested documents (or the requested parts) within 30

days from the date it receives the request.

mails the copy of the requested document is deemed to have provided the copy on the postmark date or private delivery

mark (if sent by certified or registered mail, the date of registration or the date of

the postmark on the sender's receipt).

requires payment in advance is required to provide the copies within 30 days from the date it receives payment.

receives a request or payment by mail is deemed to have received it 7 days after the date of the postmark, absent

evidence to the contrary.

receives a request transmitted by email or facsimile is deemed to have received it the day the request is transmitted successfully.

receives a written request without payment or with an insufficient payment, when

payment in advance is required

must notify the requester of the prepayment policy and the amount due within 7

days from the date of the request's receipt.

receives consent from an individual making a request can provide a copy of the requested document exclusively by email (the material

is provided on the date the organization successfully transmits the email).

Request for a copy of parts of a

document. A tax-exempt organization

must fulfill a request for a copy of the

organization's entire application for tax

exemption or annual information return or

any specific part or schedule of its

application or return. A request for a copy

of less than the entire application or less

than the entire return must specifically

identify the requested part or schedule.

Fees for copies. A tax-exempt

organization can charge a reasonable fee

for providing copies. Before the

organization provides the documents, it

can require that the individual requesting

copies of the documents pay the fee. If

the organization has provided an

individual making a request with notice of

the fee, and the individual doesn't pay the

fee within 30 days, or if the individual

pays the fee by check and the check

doesn't clear upon deposit, the

organization can disregard the request.

Form of payment.

a. Request made in person. If a

tax-exempt organization charges a fee for

copying, it must accept payment by cash

and money order for requests made in

person. The organization can accept

other forms of payment, such as credit

cards and personal checks.

b. Request made in writing. If a

tax-exempt organization charges a fee for

copying and postage, it must accept

payment by certified check, money order,

and either personal check or credit card

for requests made in writing. The

organization can accept other forms of

payment.

Avoidance of unexpected fees.

Where a tax-exempt organization doesn't

require prepayment and a requester

doesn't enclose payment with a request,

an organization must receive consent

from a requester before providing copies

for which the fee charged for copying and

postage exceeds $20.

Documents to be provided by

regional and district offices. Except as

otherwise provided, a regional or district

office of a tax-exempt organization must

satisfy the same rules as the principal

office for allowing public inspection and

providing copies of its application for tax

exemption and annual information

returns.

A regional or district office isn't

required, however, to make its annual

information return available for inspection

or to provide copies until 30 days after the

date the return is required to be filed

(including any extension of time that is

granted for filing the return) or is actually

filed, whichever is later.

Documents Provided by

Local and Subordinate

Organizations

Applications for tax exemption.

Except as otherwise provided, a

tax-exempt organization that didn't file its

own application for tax exemption

(because it is a local or subordinate

organization covered by a group

exemption letter)

must, upon request,

make available for public inspection, or

provide copies of, the application

submitted to the IRS by the central or

parent organization to obtain the group

exemption letter and those documents

which were submitted by the central or

parent organization to include the local or

subordinate organization in the group

exemption letter.

However, if the central or parent

organization submits to the IRS a list or

directory of local or subordinate

organizations covered by the group

exemption letter, the local or subordinate

organization is required to provide only

the application for the group exemption

ruling and the pages of the list or

directory that specifically refer to it. The

local or subordinate organization must

permit public inspection, or comply with a

request for copies made in person, within

a reasonable amount of time (normally

not more than 2 weeks) after receiving a

request made in person for public

inspection or copies and at a reasonable

time of day. See Regulations section

301.6104(d)-1(f) for further information.

Annual information returns. A local

or subordinate organization that doesn't

file its own annual information return

(because it is affiliated with a central or

parent organization that files a group

return) must, upon request, make

available for public inspection, or provide

copies of, the group returns filed by the

central or parent organization.

However, if the group return includes

separate statements for each local or

subordinate organization included in the

group return, the local or subordinate

organization receiving the request can

omit any statements relating only to other

organizations included in the group

return.

The local or subordinate organization

must permit public inspection, or comply

with a request for copies made in person,

within a reasonable amount of time

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(normally not more than 2 weeks) after

receiving a request made in person for

public inspection or copies and at a

reasonable time of day.

When a requester seeks inspection,

the local or subordinate organization can:

•

Mail a copy of the applicable

documents to the requester within the

same time period instead of allowing an

inspection; and

•

Charge the requester for copying and

actual postage costs, if the requester

consents to the charge.

If the local or subordinate organization

receives a written request for a copy of its

annual information return, it must fulfill the

request by providing a copy of the group

return in the time and manner specified

under

Request for copies in writing,

earlier.

The requester has the option of

requesting from the central or parent

organization, at its principal office,

inspection or copies of group returns filed

by the central or parent organization. The

central or parent organization must fulfill

the requests in the time and manner

specified under

Special Rules Relating to

Public Inspection and Special Rules

Relating to Copies, earlier.

Failure to comply. Any person who

doesn't comply with the public inspection

requirements will be assessed a penalty

of $20 for each day that inspection wasn't

permitted, up to a maximum of $10,000

for each return. Organizations with gross

receipts exceeding $1 million will be

assessed a penalty of $100 for each day,

not to exceed $50,000 for each return.

The penalties for failure to comply with

the public inspection requirements for

applications are the same as those for

annual returns, except that the $10,000

limitation doesn't apply (sections 6652(c)

(1)(C) and (D)). Any person who willfully

fails to comply with the public inspection

requirements for annual returns or

exemption applications will be subject to

an additional penalty of $5,000 (section

6685).

Making Applications and

Returns Widely Available

A tax-exempt organization isn't required

to comply with a request for a copy of its

application for tax exemption or an

annual information return if the

organization has made the requested

document widely available (see below).

An organization that makes its

application for tax exemption and/or

annual information return widely available

must also make the document available

for public inspection, as required under

Regulations section 301.6104(d)-1(a).

A tax-exempt organization makes its

application for tax exemption and/or an

annual information return widely available

if the organization complies with the

Internet posting requirements and the

notice requirements given below.

Internet posting. A tax-exempt

organization can make its application for

tax exemption and/or an annual

information return widely available by

posting the document on a web page that

the tax-exempt organization establishes

and maintains, or by having the

document posted, as part of a database

of similar documents of other tax-exempt

organizations, on a web page established

and maintained by another entity. The

document will be considered widely

available only if:

•

The web page through which it is

available clearly informs readers that the

document is available and provides

instructions for downloading it;

•

The document is posted in a format

that, when accessed, downloaded,

viewed, and printed in hard copy, exactly

reproduces the image of the application

for tax exemption or annual information

return as it was originally filed with the

IRS, except for any information permitted

by statute to be withheld from public

disclosure; and

•

Any individual with access to the

Internet can access, download, view, and

print the document without special

computer hardware or software required

for that format (other than software that is

readily available to members of the public

without payment of any fee) and without

payment of a fee to the tax-exempt

organization or to another entity

maintaining the web page.

Reliability and accuracy. In order for

the document to be widely available

through an Internet posting, the entity

maintaining the web page must have

procedures for ensuring the reliability and

accuracy of the document that it posts on

the page and must take reasonable

precautions to prevent alteration,

destruction, or accidental loss of the

document when posted on its page. In

the event that a posted document is

altered, destroyed, or lost, the entity must

correct or replace the document.

Notice requirement. If a tax-exempt

organization has made its application for

tax exemption and/or an annual

information return widely available, it

must notify any individual requesting a

copy where the documents are available

(including the address on the Internet, if

applicable). If the request is made in

person, the organization must provide the

notice to the individual immediately. If the

request is made in writing, the notice

must be provided within 7 days of

receiving the request.

Tax-Exempt Organization

Subject to Harassment

Campaign

Under section 6104(d)(4), if the Office of

Associate Chief Counsel (Tax Exempt

and Government Entities) determines

that the organization is being harassed, a

tax-exempt organization isn't required to

comply with any request for copies that it

reasonably believes is part of a

harassment campaign.

Whether a group of requests is a

harassment campaign depends on the

relevant facts and circumstances such

as:

•

A sudden increase in requests,

•

An extraordinary number of requests

by form letters or similarly worded

correspondence,

•

Hostile requests,

•

Evidence showing bad faith or

deterrence of the organization's exempt

purpose,

•

Prior provision of the requested

documents to the purported harassing

group, and

•

A demonstration that the organization

routinely provides copies of its

documents upon request.

A tax-exempt organization can

disregard any request for copies of all or

part of any document beyond the first two

received within any 30-day period or the

first four received within any 1-year period

from the same individual or the same

address, whether or not the Office of

Associate Chief Counsel (Tax Exempt

and Government Entities) has

determined that the organization is

subject to a harassment campaign.

A tax-exempt organization can apply

for a determination that it is the subject of

a harassment campaign and that

compliance with requests that are part of

the campaign wouldn't be in the public

interest by submitting a signed

application to the Office of Associate

Chief Counsel (Tax Exempt and

Government Entities). See Rev. Proc.

2023-1, 2023-1 I.R.B. 1, or as updated

annually.

In addition, the organization can

suspend compliance with any request it

reasonably believes to be part of the

harassment campaign until it receives a

response to its application for a

harassment campaign determination.

However, if the Office of Associate Chief

Counsel (Tax Exempt and Government

Entities) determines that the organization

didn't have a reasonable basis for

requesting a determination that it was

subject to a harassment campaign or

reasonable belief

that a request was part

of the campaign, the officer, director,

trustee, employee, or other responsible

individual of the organization remains

liable for any penalties for not providing

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the copies in a timely fashion. See

Regulations section 301.6104(d)-3.

Appendix E. Group

Returns—Reporting

Information on Behalf of

the Group

Except where otherwise instructed,

where a line calls for a dollar amount or

numerical data, the

central organization

filing the group return must aggregate

the data from all the subordinate

organizations included in the group

return and report the aggregate number.

For example, in answering Form 990, Part

I, line 6, the total number of volunteers for

all of the subordinate organizations would

be reported.

For purposes of Form 990, Part III,

summarize the mission and activities of

all of the subordinate organizations as if

all of the subordinate organizations were

one entity.

In general, if a line requires a “Yes” or

“No” answer and the answer isn't the

same for all subordinate organizations to

which the line applies, then check “Yes”

and explain the answer in the schedule's

supplemental information section (if

applicable) or on Schedule O (Form 990).

For the following lines, however, check

“No” if the answer is “No” for any of the

subordinates to which the line applies,

and explain on Schedule O.

•

Form 990, Part V, lines 1c, 2b, 3b, 5c,

6b, 7b, 7g, and 7h.

•

Form 990, Part VI, lines 8a, 8b, 10b,

12b, and 12c.

•

Schedule C (Form 990), Political

Campaign and Lobbying Activities, Part

I-B, lines 3 and 4a.

•

Schedule C (Form 990), Part I-C,

line 4.

•

Schedule C (Form 990), Part II-A,

line 1j.

•

Schedule C (Form 990), Part II-B,

line 2d.

•

Schedule C (Form 990), Part III-A,

lines 1–3.

•

Schedule D (Form 990), Supplemental

Financial Statements, Part I, lines 5 and

•

Schedule D (Form 990), Part II, lines 5

and 8.

•

Schedule E (Form 990), Schools, lines

1–4d and 7.

•

Schedule F (Form 990), Statement of

Activities Outside the United States, Part

I, line 1.

•

Schedule G (Form 990), Supplemental

Information Regarding Fundraising or

Gaming Activities, Part III, line 9a.

•

Schedule I (Form 990), Grants and

Other Assistance to Organizations,

Governments, and Individuals in the

United States, Part I, line 1.

•

Schedule J (Form 990), Compensation

Information, Part I, lines 1b and 2.

•

Schedule M (Form 990), Noncash

Contributions, Part I, line 31.

•

Schedule N (Form 990), Liquidation,

Termination, Dissolution, or Significant

Disposition of Assets, Part I, lines 3, 4a–

b, 5, and 6a–c.

The following is a list of other special

instructions for group returns.

1. Item B. Final return/terminated.

If the central organization is terminating

its group exemption and filing its final

group return, don't check the “Final

return/terminated” box. Refer to Rev.

Proc. 80-27, 1980-1 C.B. 677, as

modified, for procedures for terminating

the group exemption.

2. Item C. Name. Enter the name of

the group exemption. Note that the group

exemption may have a different name

than the central organization's name.

3. Item D. EIN. Use the special EIN

(separate from the central organization's

EIN) that is issued solely for the purposes

of the group return. The central

organization must have received a group

exemption letter before it can file a group

ruling.

4. Items E, F, and J. Enter

information for the central organization

only.

5. Item H. Group returns. If the

organization answers “Yes” to item H(a)

but “No” to item H(b) (not all subordinate

organizations are included in the group

return), then attach a list (not on

Schedule O (Form 990)) showing the

name, address, and EIN of each

subordinate organization included in the

group return. Additionally, attach a list

(not on Schedule O (Form 990)) showing

the name, address, and EIN of each

subordinate organization not included in

the group return. See Regulations section

1.6033-2(d)(2)(ii).

6. Item K. Form of organization.

Check “Other” if the group has more than

one form of organization.

7. Item L. Year of formation. Leave

blank for group return.

8. Item M. State of legal domicile.

Leave blank for group return.

9. Part IV, lines 14b–19, 21–22,

and 29, dollar thresholds. Apply the

dollar thresholds for the aggregate data

for the group as a whole, not subordinate

by subordinate.

10.

Part IV, line 20. Hospitals.

Answer “Yes” if any affiliate included

within the group return operated a

hospital facility.

11.

Part VI, line 2. Relationships

among officers, directors, trustees,

and key employees. Describe on

Schedule O (Form 990) only relationships

between

officers, directors, trustees,

and key employees of the same

subordinate organization, not

relationships between officers, directors,

trustees, and key employees of one

subordinate and officers, directors,

trustees, and key employees of another

subordinate.

12.

Part VI, line 4. Significant

changes to organizational

documents. Report only changes to

standardized organizational documents

maintained by the central organization

that subordinates are required to adopt.

13.

Part VI, line 5. Significant

diversion of assets. In determining

whether a diversion of a subordinate’s

assets meets the 5%/$250,000 reporting

threshold, consider only the total assets

and gross receipts of that subordinate,

not of the parent or other subordinates.

14.

Part VI, line 20. Person who

possesses books and records. Identify

the person who possesses the

information furnished by the subordinate

organizations used in compiling the group

return.

15.

Part VII. Compensation of

officers, directors, trustees, key

employees, and highest compensated

employees. File a single consolidated

Form 990, Part VII, showing the officers,

directors, trustees, and key employees of

each subordinate included in the group

return, and a single consolidated

Schedule J (Form 990), Part II, for all

officers, directors, trustees, and key

employees above the compensation

thresholds. Report the five

highest

compensated employees and

independent contractors above

$100,000 for the whole group of

subordinates, not for each subordinate. If

one or more officers, directors, trustees,

key employees, or highest compensated

employees received compensation from

more than one organization in the group,

the person's compensation from the

several organizations must be reported in

column (D).

16.

Part VII. Compensation from

related organizations. Report

compensation from an organization that

is included in the group ruling but that

isn't among the subordinates included in

the group return as compensation from a

related organization in column (E), even if

the related organization isn't required to

be reported on Schedule R (Form 990),

Related Organizations and Unrelated

Partnerships.

17.

Part XII, lines 2a–2b. Compiled,

reviewed, or audited financial

statements. Answer “Yes” only if all the

subordinates in the group had their

financial statements compiled, reviewed,

or audited individually (rather than on a

consolidated basis).

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18.

Schedule A (Form 990), Part I.

Reason for public charity status. If the

subordinates don't all have the same

public charity status, then check the

public charity status box for the largest

number of subordinates in the group, and

explain on Schedule A (Form 990), Public

Charity Status and Public Support, Part

IV. However, if any section 509(a)(3)

organizations are among the

subordinates in the group return, also

answer lines 12e through 12g.

19.

Schedule A (Form 990), Parts II

and III. Support statements. Report

aggregate data for all subordinates with

the public charity status corresponding to

Part II or III.

20.

Schedule A (Form 990), Parts

IV through VI. In addition to Part I in

paragraph 18 above, if any section 509(a)

(3) organizations are among the

subordinates in the group return, also

complete the relevant sections of Parts IV

and V. If an answer in Part IV requires

more information with respect to any

section 509(a)(3) organizations, then

answer with respect to those

organizations and provide that additional

information in Part VI. For instance, if the

group includes 50 section 509(a)(3)

organizations, and one of them doesn't

list all of its supported organizations by

name in its governing documents, then

answer “No” to Part IV, Section A, line 1,

and explain in Part VI. If the group

includes more than one Type III

non-functionally-integrated supporting

organization, then provide aggregate

data in Part V.

21.

Schedule B (Form 990).

Contributors. Report a consolidated

Schedule B (Form 990) for all

subordinates included in the group

return. Apply the dollar and percentage

thresholds (including the greater of

$5,000 or 2% threshold for section 501(c)

(3) organizations described in sections

509(a)(1) and 170(b)(1)(A)(vi))

subordinate by subordinate, not on a

group basis.

22.

Schedule C (Form 990), Part

II-A. Lobbying expenditures and

affiliated groups. Complete Part II-A,

column (b), for the group as a whole. In

column (a), except on lines 1g and 1h,

include the amounts that apply to all

electing members of the group if they are

included in the group return. If the group

return includes organizations that belong

to more than one affiliated group, enter in

column (b) the totals for all the groups.

23.

Schedule D (Form 990), Part X.

Other liabilities. The filing organization

can summarize that portion, if any, of the

FIN 48 (ASC 740) footnote that applies to

the liability of multiple organizations

including the organization (for example,

as a member of a group with

consolidated financial statements), to

describe the filing organization's share of

the liability.

24.

Schedule H (Form 990).

Hospitals. Complete one Schedule H for

all of the hospitals operated by

subordinates in the group, and report

aggregate data from all the hospitals. In

Part V, Section A, list each of the

organization’s

hospital facilities

separately. List in Section A the name

and EIN of the subordinate hospital

organization that operates the hospital

facility. Complete separate Sections B

and C for each of the hospital facilities or

facility reporting groups listed in

Section A.

25.

Schedule J (Form 990).

Compensation from related

organizations. See Part VII instructions,

earlier, in this Appendix.

26.

Schedule L (Form 990).

Transactions with interested persons.

On Schedule L (Form 990), Part IV, report

only transactions between a subordinate

organization and its interested

persons—not transactions between a

subordinate organization and the

interested persons of other subordinates.

In determining whether a transaction

between the subordinate and its

interested persons meets the financial

reporting thresholds of Schedule L, Part

IV, consider only the payments between

the subordinate and its interested

persons, not payments between

interested persons and the parent or

other subordinates.

27.

Schedule N (Form 990).

Liquidation or significant disposition

of assets. Explain on Schedule N (Form

990), Part III, which of the subordinates

have undergone a liquidation,

termination, dissolution, or significant

disposition of assets during the tax year.

28.

Schedule R (Form 990). Related

organizations. See the Instructions for

Schedule R (Form 990) to determine

when related organizations of a member

of a group exemption must be included

on Schedule R (Form 990). In general,

central organizations and subordinate

organizations of a group exemption

aren't required to be listed as related

organizations on Schedule R (Form

990), Part II; and all other related

organizations of the central organization

or of a subordinate organization are

required to be listed on Schedule R

(Form 990) in the applicable part. Even if

a related organization isn't required to be

listed in Part II of Schedule R (Form 990),

the organization must report its

transactions with the related organization

in Part V, as described in the instructions

for that Part.

Appendix F.

Disregarded Entities

and Joint

Ventures—Inclusion of

Activities and Items

Disregarded Entities

A disregarded entity, as described in

Regulations sections 301.7701-1 through

301.7701-3, is generally treated as a

branch or division of its parent

organization for federal tax purposes (but

see the

TIP next for treatment of

disregarded entities as separate entities

for employment tax purposes). Therefore,

financial and other information applicable

to a disregarded entity must be reported

as the parent organization's information,

except on Form 990, Part VI, lines 10a

and 10b, and on Schedule R (Form 990),

in which disregarded entities must be

separately reported.

An organization must report on its

Form 990, including Parts VIII through X,

all of the revenues, expenses, assets,

liabilities, and net assets or funds of a

disregarded entity of which it is the sole

member. The disregarded entity is

deemed to have the same accounting

period as its parent for federal tax

purposes. The organization must also

report the activities of a disregarded

entity in the appropriate parts (including

schedules) of the Form 990. For example,

support of a disregarded entity must be

taken into account by the filing

organization for purposes of the public

support tests set forth on Schedule A

(Form 990). Similarly,

political

campaign activity or lobbying activity

conducted by a disregarded entity of

which the organization is the sole

member must be reported on Schedule C

(Form 990).

A disregarded entity is treated as

a separate entity for purposes of

employment tax and certain

excise taxes. For wages paid after

January 1, 2009, a disregarded entity is

required to use its name and EIN for

reporting and payment of employment

taxes.

A single-member LLC is treated

generally as a disregarded entity

of its sole member/owner unless

it elects to be treated as a separate

association. It may elect to be treated

separately by filing Form 8832, Entity

Classification Election, or by claiming

tax-exempt status in its own right (by filing

a Form 1023, 1023-EZ, 1024, or 1024-A,

application for recognition of tax-exempt

status, or a Form 990, 990-EZ, 990-N, or

990-T, using its own name and EIN).

TIP

CAUTION

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Once the IRS determines a

single-member LLC to be exempt, it is no

longer eligible to be treated as a

disregarded entity until the determination

of exemption is revoked and the LLC

subsequently files a Form 8832 electing

disregarded entity status. Similarly, a

single-member LLC that claims

exemption but hasn't been determined to

be exempt isn't eligible to be treated as

disregarded until the claim is withdrawn

or rejected and the LLC files a Form 8832

electing disregarded entity status. See

Regulations section 301.7701-3(c)(1)(v)

(A).

The following is a list of special

instructions for the form and schedules

regarding the reporting of a disregarded

entity of which the organization is the sole

member. These items are described to

illustrate special applications of the rule

described above that a disregarded

entity's activities and items must be

reported on the organization's Form 990

and applicable schedules.

1. Part I, line 5. Number of

employees. See the instructions for Part

V, lines 1 and 2, below.

2. Part I, line 6. Number of

volunteers. The total number of

volunteers to be reported can, but isn't

required to, include

volunteers of any

disregarded entity.

3. Part III. Program service

accomplishments. Consider activities

and accomplishments of all disregarded

entities when answering this part.

4. Part IV, line 12. Audited

financial statements. The organization

shouldn't answer “Yes” to this question

merely because it received audited

financial statements of one or more

disregarded entities, if the audited

financial statements of the organization

weren't audited.

5. Part IV, lines 31–32. Liquidation

or significant disposition of assets.

See the instructions for Schedule N

(Form 990) in this Appendix, later.

6. Part IV, lines 35–36.

Transactions with related

organizations. See the instructions for

Schedule R (Form 990) in this Appendix,

later.

7. Part V, lines 1–2. Forms 1096

and W-3. The total number of information

returns and employees to be reported,

and compliance with backup withholding

rules, includes all backup withholding,

information returns, and employees of

any disregarded entity, whether or not the

disregarded entity

has a separate EIN for

employment tax and information

reporting purposes.

8. Part V, line 7. Organizations that

can receive deductible contributions.

For purposes of Form 990 reporting, lines

7a through 7h are to be answered by

taking into account any contributions

made to a disregarded entity.

9. Part VI, lines 1a–9. Members of

the governing body, officers, directors,

trustees, and employees of a disregarded

entity won't be treated as

governing

body members, officers, directors, or

trustees of the filing organization, but a

person can be a

key employee or

highest compensated employee of the

filing organization by virtue of

compensation paid by the disregarded

entity, or the person's responsibilities and

authority over operations of the

disregarded entity when compared to the

filing organization as a whole. See

Disregarded entities under Part VII,

Section A, earlier.

10.

Part VI, Section B, lines 10a–

16b. Policies. The organization should

check “Yes” or “No” based on the filing

organization's policies, but for each “Yes”

response, they must report on

Schedule O (Form 990) whether the

policy applies to all of the organization's

disregarded entities (if any).

11.

Part VII, line 1a. Definitions of

key employee and highest

compensated employee. An officer,

director, trustee, and employee of a

disregarded entity can constitute a key

employee or highest compensated

employee of the filing organization by

virtue of compensation paid by the

disregarded entity, or the person's

responsibilities and authority over

operations of the disregarded entity when

compared to the filing organization as a

whole. See the instructions for Form 990,

Part VII, Section A.

12.

Part XII, lines 2a–2b. Financial

statements. If the organization included

financial information from its disregarded

entity or entities in its financial

statements, but didn't consolidate any

other entity's information in its financial

statements, it should check the box for

“Separate basis” but not the box for

“Consolidated basis” or “Both

consolidated and separate basis.”

13.

Part XII, line 3. Uniform

Guidance, 2 C.F.R. Part 200, Subpart

F. The organization must check “Yes” if a

disregarded entity was required to

undergo an

audit or audits.

Note. The Single Audit Act of 1984 and

OMB Circular A-133 are superseded by

Uniform Guidance, 2 C.F.R. Part 200,

Subpart F, and now requires states, local

governments, and nonprofit organizations

that spend $750,000 (previously

$500,000) or more of federal awards in a

year to obtain an annual audit.

14.

Schedule L (Form 990).

Transactions with interested persons.

Reportable transactions include

transactions involving interested persons

who have such status because of their

relationship with a disregarded entity

(such as an employee of the disregarded

entity who qualifies as a key employee of

the organization as a whole). A

transaction between an interested person

and a disregarded entity of the

organization is reportable on Schedule L.

15.

Schedule N (Form 990).

Liquidation or significant disposition

of assets. The organization shouldn't

prepare Part I to report a termination,

liquidation, or dissolution of a

disregarded entity if the filing organization

continues to operate. Transfers to (or by)

a filing organization by (or to) its

disregarded entity aren't to be reported in

Part II, but transfers by or contractions of

a disregarded entity are to be taken into

account to determine whether a

reportable event (based on 25% of the

filing organization's net assets, including

those of its disregarded entities) has

occurred.

16.

Schedule R (Form 990), Part V,

line 2. Transactions with related

organizations. Specified payments to a

disregarded entity by a controlled entity

of the filing organization, and transfers by

a disregarded entity to an exempt

noncharitable entity, are to be reported

on Schedule R (Form 990), Part V, line 2.

Joint Ventures Treated

as a Partnership for

Federal Income Tax

Purposes

If the organization participates as a

partner or member of a

joint venture,

partnership, LLC, or other entity treated

as a partnership for federal tax purposes

(referred to here as a “joint venture”), as

described in Regulations sections

301.7701-1 through 301.7701-3, then the

organization in general must report the

activities of the joint venture as its own

activities, and report the joint venture’s

revenue, expenses, and assets, to the

extent of the organization's proportionate

interest in the joint venture. For example,

a proportionate share of the

political

campaign activity or lobbying activity

conducted by a joint venture of which the

organization is a member must be

reported on Schedule C (Form 990). If

the joint venture is a member of a second

joint venture, which is a member of a third

joint venture, etc., the activities similarly

pass through all joint ventures to the

organization, according to the

organization's proportionate share in

each of the joint ventures.

The following is a list of special

instructions for the form and schedules

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regarding the reporting of a joint venture

of which the organization is a member.

1. Part I, line 2. Disposition of 25%

of assets. See the instructions for

Schedule N in this Appendix, later.

2. Part I, lines 7a–7b. Unrelated

business income. Include the

organization's distributive share (whether

or not distributed) of income or loss of the

joint venture that is unrelated business

income in determining the organization's

gross and net unrelated business

income.

3. Part IV, lines 3–5. Political

campaign and lobbying activities. See

the instructions for Schedule C in this

Appendix, later.

4. Part IV, line 7. Conservation

easements. See the instructions for

Schedule D in this Appendix, later.

5. Part IV, lines 14–16. Activities

outside the United States. See the

instructions for Schedule F in this

Appendix, later.

6. Part IV, lines 17–19. Fundraising

and gaming. See the instructions for

Schedule G in this Appendix, later.

7. Part IV, line 20. Hospitals. See

the instructions for Schedule H in this

Appendix, later.

8. Part IV, lines 21–22. Grants in

the United States. See the instructions

for Schedule I in this Appendix, later.

9. Part IV, lines 26–28. Loans,

grants, and business transactions

involving interested persons. See the

instructions for Schedule L in this

Appendix, later.

10.

Part IV, line 32. Disposition of

25% of assets. See the instructions for

Schedule N in this Appendix, later.

11.

Part IV, lines 34–37. Related

organizations and unrelated

partnerships. See the instructions for

Schedule R in this Appendix, later.

12.

Part V, line 3a. Unrelated

business income. Include the

organization's distributive share (whether

or not distributed) of income or loss of the

joint venture that is

unrelated business

income in determining the organization's

gross unrelated business income.

13.

Part VI. Governance,

management, and disclosure. Don't

take into account a joint venture for

purposes of Part VI (except for lines 16a

and 16b).

14.

Part VII. Compensation. See the

instructions for Schedule J in this

Appendix, later.

15.

Parts VIII, IX, and X. Financial

statements. Report in accordance with

the organization's books and records.

16.

Part XII. Financial statements

and reporting. Disregard a joint venture.

17.

Schedule C (Form 990).

Political campaign and lobbying

activities. Report the organization's

share of political campaign or lobbying

activities conducted by a joint venture.

18.

Schedule D (Form 990), Part II.

Conservation easements. Include

conservation easements held by a joint

venture formed for the purpose of holding

the easements.

19.

Schedule F (Form 990).

Activities outside the United States.

Include activities of a joint venture,

including grants to organizations or

individuals outside the United States.

20.

Schedule G (Form 990).

Fundraising and gaming. Include

activities of a joint venture and the

organization's share of revenues and

expenses. On Part III, line 12, check “Yes”

if the joint venture was formed to

administer charitable gaming.

21.

Schedule H (Form 990).

Hospitals. Report activities, expenses,

and revenue of

hospital facilities and

other programs operated by any joint

venture, to the extent of the organization's

proportionate interest in the joint venture.

See the instructions for Schedule H, Part

IV, to determine how to report an

organization's interest in joint ventures

and management companies.

22.

Schedule I (Form 990). Grants

in the United States. Include grants

from a joint venture to organizations,

governments, or individuals in the United

States.

23.

Schedule J (Form 990).

Compensation. If an officer, director,

trustee, or employee of the organization

receives compensation from a joint

venture, the compensation isn't treated

as paid pro rata by the organization. The

compensation may need to be reported,

however, as compensation from a related

organization if the joint venture is a

related organization.

24.

Schedule K (Form 990), Part III,

line 1. Private business use. Report

certain joint ventures that owned property

financed by tax-exempt bonds.

25.

Schedule L (Form 990), Parts

II–IV. Loans, grants, and business

transactions involving interested

persons. Report loans, grants, and

business transactions between the

organization and a joint venture, if the

joint venture is an interested person for

purposes of Schedule L, and if the

transaction meets the applicable

reporting thresholds described in the

Schedule L instructions. Also report

certain joint ventures with interested

persons as provided in the Schedule L,

Part IV, instructions as business

transactions themselves.

26.

Schedule N (Form 990), Part II.

Disposition of 25% of assets. In

determining whether the organization

made a disposition of more than 25% of

its assets, take into account its share of

dispositions by a joint venture.

27.

Schedule R (Form 990). Related

organizations. Report relationships with

certain joint ventures in Parts III and VI,

and certain transactions with joint

ventures in Part V.

Appendix G. Section

4958 Excess Benefit

Transactions

The intermediate sanction regulations are

important to the exempt organization

community as a whole, and for ensuring

compliance in this area. The rules

provide a roadmap by which an

organization can steer clear of situations

that may give rise to inurement.

Under section 4958, any disqualified

person who benefits from an excess

benefit transaction with an applicable

tax-exempt organization is liable for a

25% tax on the excess benefit. The

disqualified person is also liable for a

200% tax on the excess benefit if the

excess benefit isn't corrected by a certain

date. Also, organization managers who

participate in an excess benefit

transaction knowingly, willfully, and

without reasonable cause are liable for a

10% tax on the excess benefit, not to

exceed $20,000 for all participating

managers on each transaction.

Applicable Tax-Exempt

Organization

These rules only apply to certain

applicable section 501(c)(3), 501(c)(4),

and 501(c)(29) organizations.

applicable tax-exempt organization is

a section 501(c)(3), 501(c)(4), or 501(c)

(29) organization that is tax exempt under

section 501(a), or was an organization at

any time during a 5-year period ending on

the day of the

excess benefit

transaction.

An applicable tax-exempt

organization doesn't include:

•

A private foundation, as defined in

section 509(a);

•

A governmental entity that is exempt

from (or not subject to) taxation without

regard to section 501(a) or relieved from

filing an annual return under Regulations

section 1.6033-2(g)(6); and

•

Certain foreign organizations.

An organization isn't treated as a

section 501(c)(3), 501(c)(4), or 501(c)

(29) organization for any period covered

by a final determination that the

organization wasn't tax exempt under

section 501(a), so long as the

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determination wasn't based on private

inurement or one or more excess benefit

transactions.

Disqualified Person

Most section 501(c)(3), 501(c)(4), or

501(c)(29) organization employees and

independent contractors won't be

affected by these rules. Only the few

influential persons within these

organizations are covered by these rules

when they receive benefits, such as

compensation, fringe benefits, or

contract payments. The IRS calls this

class of covered individuals

disqualified

persons.

A disqualified person, regarding any

transaction, is any person who was in a

position to exercise substantial influence

over the affairs of the applicable

tax-exempt organization at any time

during a 5-year period ending on the date

of the transaction. Persons who hold

certain powers, responsibilities, or

interests are among those who are in a

position to exercise substantial influence

over the affairs of the organization. This

would include, for example,

voting

members of the governing body, and

persons holding the power of the

following.

•

Presidents, CEOs, or chief operating

officers.

•

Treasurers and chief financial officers.

A disqualified person also includes

certain family members of a disqualified

person, and 35% controlled entities of

a disqualified person.

The following persons are considered

disqualified persons for the following

organizations, along with certain family

members and 35% controlled entities

associated with them.

•

For a transaction involving a donor

advised fund, a donor or donor advisor

of that donor advised fund.

•

For a donor advised fund sponsoring

organization, an investment advisor of the

sponsoring organization.

•

For a supported organization of a

section 509(a)(3) supporting

organization, the disqualified persons of

the section 509(a)(3) supporting

organization.

See the instructions for Form 4720,

Schedule I, for more information

regarding these disqualified persons.

Who isn't a disqualified person? The

rules also clarify which persons aren't

considered to be in a position to exercise

substantial influence over the affairs of an

organization. They include:

•

An employee who receives benefits

that total less than the highly

compensated amount ($120,000 in

2015–2018, $125,000 in 2019, $130,000

in 2020–2021, $135,000 in 2022, and

$150,000 in 2023) and who doesn't hold

the executive or voting powers just

mentioned, isn't a family member of a

disqualified person, and isn't a

substantial contributor;

•

Tax-exempt organizations described in

section 501(c)(3); and

•

Section 501(c)(4) organizations for

transactions engaged in with other

section 501(c)(4) organizations.

Who else can be considered a dis-

qualified person? Other persons not

described above can also be considered

disqualified persons, depending on all the

relevant facts and circumstances.

Facts and circumstances tending to

show substantial influence.

•

The person founded the organization.

•

The person is a substantial contributor

to the organization under the section

507(d)(2)(A) definition, only taking into

account contributions to the organization

for the past 5 years.

•

The person's compensation is

primarily based on revenues derived from

the activities of the organization that the

person controls.

•

The person has or shares authority to

control or determine a substantial portion

of the organization's capital expenditures,

operating budget, or compensation for

employees.

•

The person manages a discrete

segment or activity of the organization

that represents a substantial portion of

the activities, assets, income, or

expenses of the organization, as

compared to the organization as a whole.

•

The person owns a controlling interest

(measured by either vote or value) in a

corporation, partnership, or trust that is a

disqualified person.

•

The person is a nonstock organization

controlled directly or indirectly by one or

more disqualified persons.

Facts and circumstances tending to

show no substantial influence.

•

The person is an independent

contractor whose sole relationship to the

organization is providing professional

advice (without having decision-making

authority) for transactions from which the

independent contractor won't

economically benefit.

•

The person has taken a vow of poverty.

•

Any preferential treatment the person

receives based on the size of the

person's donation is also offered to

others making comparable widely

solicited donations.

•

The direct supervisor of the person

isn't a disqualified person.

•

The person doesn't participate in any

management decisions affecting the

organization as a whole or a discrete

segment of the organization that

represents a substantial portion of the

activities, assets, income, or expenses of

the organization, as compared to the

organization as a whole.

What about persons who staff affili-

ated organizations? In the case of

multiple affiliated organizations, the

determination of whether a person has

substantial influence is made separately

for each applicable tax-exempt

organization. A person may be a

disqualified person for more than one

organization in the same transaction.

Excess Benefit

Transaction

An excess benefit transaction is

generally a transaction in which an

economic benefit is provided by an

applicable tax-exempt organization,

directly or indirectly, to or for the use of

any

disqualified person, and the value

of the economic benefit provided by the

applicable tax-exempt organization

exceeds the value of the consideration

(including the performance of services)

received for providing the benefit, but see

the special rules below for

donor

advised funds and supporting

organizations. An excess benefit

transaction can also occur when a

disqualified person embezzles from the

exempt organization.

To determine whether an excess

benefit transaction has occurred, all

consideration and benefits exchanged

between a disqualified person and the

applicable tax-exempt organization, and

all entities it controls, are taken into

account.

For purposes of determining the value

of economic benefits, the value of

property, including the right to use

property, is the

FMV. FMV is the price at

which property, or the right to use

property, would change hands between a

willing buyer and a willing seller, neither

being under any compulsion to buy, sell,

or transfer property or the right to use

property, and both having reasonable

knowledge of relevant facts.

Donor advised funds. For a donor

advised fund, an excess benefit

transaction includes a grant, loan,

compensation, or similar payment from

the fund to a:

•

Donor or donor advisor,

•

Family member of a donor or donor

advisor,

•

35% controlled entity of a donor or

donor advisor, or

•

35% controlled entity of a family

member of a donor or donor advisor.

For these transactions, the excess

benefit is defined as the amount of the

grant, loan, compensation, or similar

payment. For additional information, see

the Instructions for Form 4720.

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Supporting organizations. For any

supporting organization defined in

section 509(a)(3), an excess benefit

transaction includes grants, loans,

compensation, or similar payment

provided by the supporting organization

to a:

•

Substantial contributor,

•

Family member of a substantial

contributor,

•

35% controlled entity of a substantial

contributor, or

•

35% controlled entity of a family

member of a substantial contributor.

Additionally, an excess benefit

transaction includes any loans provided

by the supporting organization to a

disqualified person (other than an

organization described in section 509(a)

(1), (2), or (4)).

A substantial contributor is any person

who contributed or bequeathed an

aggregate of more than $5,000 to the

organization, if that amount is more than

2% of the total contributions and

bequests received by the organization

before the end of the tax year of the

organization in which the contribution or

bequest is received by the organization

from the person. A substantial contributor

includes the grantor of a trust.

The excess benefit for substantial

contributors and parties related to those

contributors includes the amount of the

grant, loan, compensation, or similar

payment. For additional information, see

the Instructions for Form 4720.

When does an excess benefit transac-

tion usually occur? For federal income

tax purposes, an excess benefit

transaction occurs on the date the

disqualified person receives the

economic benefit from the organization.

However, when a single contractual

arrangement provides for a series of

compensation payments

or other

payments to a disqualified person during

the disqualified person's tax year, any

excess benefit transaction for these

payments occurs on the last day of the

disqualified person’s tax year.

In the case of the transfer of property

subject to a substantial risk of forfeiture,

or in the case of rights to future

compensation or property, the transaction

occurs on the date the property, or the

rights to future compensation or property,

isn't subject to a substantial risk of

forfeiture. Where the disqualified person

elects to include an amount in gross

income in the tax year of transfer under

section 83(b), the excess benefit

transaction occurs on the date the

disqualified person receives the

economic benefit for federal income tax

purposes.

Section 4958 applies only to

post-September 1995 transactions.

Section 4958 applies the general rules to

excess benefit transactions occurring on

or after September 14, 1995. Section

4958 doesn't apply to any transaction

occurring pursuant to a written contract

that was binding on September 13, 1995,

and at all times thereafter before the

transaction occurs. The special rules

relevant to transactions with donor

advised funds and supporting

organizations apply to transactions

occurring after August 17, 2006, except

that taxes on certain transactions

between supporting organizations and

their substantial contributors apply to

transactions occurring on or after July 25,

2006.

What Is Reasonable

Compensation?

Reasonable compensation is the

valuation standard that is used to

determine if there is an excess benefit in

the exchange of a

disqualified person's

services for compensation. Reasonable

compensation is the value that would

ordinarily be paid for like services by like

enterprises under like circumstances.

This is the section 162 standard that will

apply in determining the reasonableness

of compensation. The fact that a bonus or

revenue-sharing arrangement is subject

to a cap is a relevant factor in determining

the reasonableness of compensation.

For determining the reasonableness of

compensation, all items of compensation

provided by an applicable tax-exempt

organization in exchange for the

performance of services are taken into

account in determining the value of

compensation (except for certain

economic benefits that are disregarded,

as discussed in

What benefits are

disregarded? in this Appendix, later).

Items of compensation include the

following.

•

All forms of cash and noncash

compensation, including salary, fees,

bonuses, severance payments, and

deferred and noncash compensation.

•

The payment of liability insurance

premiums for, or the payment or

reimbursement by the organization of

taxes or certain expenses under section

4958, unless excludable from income as

a de minimis fringe benefit

under section

132(a)(4). (A similar rule applies in the

private foundation area.) Inclusion in

compensation for purposes of

determining reasonableness under

section 4958 doesn't control inclusion in

income for income tax purposes.

•

All other compensatory benefits,

whether or not included in gross income

for income tax purposes.

•

Taxable and nontaxable fringe

benefits, except fringe benefits described

in section 132.

•

Foregone interest on loans.

Written intent required to treat bene-

fits as compensation. An economic

benefit isn't treated as consideration for

the performance of services unless the

organization providing the benefit clearly

indicates its intent to treat the benefit as

compensation when the benefit is paid.

An applicable tax-exempt organization

(or entity that it controls) is treated as

clearly indicating its intent to provide an

economic benefit as compensation for

services only if the organization provides

written substantiation that is

contemporaneous with the transfer of the

economic benefits under consideration.

Ways to provide contemporaneous

written substantiation of its intent to

provide an economic benefit as

compensation include the following.

•

The organization produces a signed

written employment contract.

•

The organization reports the benefit as

compensation on an original Form W-2,

Form 1099, or Form 990, or on an

amended form filed before the start of an

IRS examination.

•

The disqualified person reports the

benefit as income on the person's original

Form 1040 or 1040-SR or on an

amended form filed before the start of an

IRS examination.

Exception. To the extent the economic

benefit is excluded from the disqualified

person's gross income for income tax

purposes, the applicable tax-exempt

organization isn't required to indicate its

intent to provide an economic benefit as

compensation for services, for example,

employer-provided health benefits and

contributions to qualified plans under

section 401(a).

What benefits are disregarded? The

following economic benefits are

disregarded

for purposes of section

4958.

•

Nontaxable fringe benefits. An

economic benefit that is excluded from

income under section 132.

•

Benefits to volunteers. An economic

benefit provided to a volunteer for the

organization if the benefit is provided to

the general public in exchange for a

membership fee or contribution of $75 or

less per year.

•

Benefits to members or donors. An

economic benefit provided to a member

of an organization due to the payment of

a membership fee, or to a donor as a

result of a deductible contribution, if a

significant number of nondisqualified

persons make similar payments or

contributions and are offered a similar

economic benefit.

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•

Benefits to a charitable beneficiary. An

economic benefit provided to a person

solely as a member of a charitable class

that the applicable tax-exempt

organization intends to benefit as part of

the accomplishment of its exempt

purpose.

•

Benefits to a governmental unit. A

transfer of an economic benefit to or for

the use of a governmental unit, as

defined in section 170(c)(1), if exclusively

for public purposes.

Is there an exception for initial con-

tracts? Section 4958 doesn't apply to

any fixed payment made to a person

pursuant to an initial contract. This is a

very important exception, because it

would potentially apply, for example, to all

initial contracts with new, previously

unrelated officers and contractors.

An initial contract is a binding written

contract between an applicable

tax-exempt organization and a person

who wasn't a disqualified person

immediately before entering into the

contract.

A fixed payment is an amount of cash

or other property specified in the

contract, or determined by a fixed formula

that is specified in the contract, which is

to be paid or transferred in exchange for

the provision of specified services or

property.

A fixed formula can, in general,

incorporate an amount that depends

upon future specified events or

contingencies, as long as no one has

discretion when calculating the amount of

a payment or deciding whether to make a

payment (such as a bonus).

Treatment as new contract. A binding

written contract, providing that it can be

terminated or canceled by the applicable

tax-exempt organization without the other

party's consent (except as a result of

substantial nonperformance) and without

substantial penalty, is treated as a new

contract, as of the earliest date that any

termination or cancellation would be

effective. Also, a contract in which there

is a material change, which includes an

extension or renewal of the contract

(except for an extension or renewal

resulting from the exercise of an option by

the disqualified person), or a more than

incidental change to the amount payable

under the contract, is treated as a new

contract as of the effective date of the

material change. Treatment as a new

contract can cause the contract to fall

outside the initial contract exception, and

it would thus be tested under the

FMV

standards of section 4958.

Rebuttable Presumption

of Reasonableness

Payments under a compensation

arrangement are presumed to be

reasonable and the transfer of property

(or right to use property) is presumed to

be at

FMV, if the following three

conditions are met.

1. The transaction is approved by an

authorized body of the organization (or an

entity it controls), which is composed of

individuals who don't have a conflict of

interest concerning the transaction.

2. Before making its determination,

the authorized body obtained and relied

upon appropriate data as to

comparability. There is a special safe

harbor for small organizations. If the

organization has gross receipts of less

than $1 million, appropriate comparability

data includes data on compensation paid

by three comparable organizations in the

same or similar communities for similar

services.

3. The authorized body adequately

documents the basis for its determination

concurrently with making that

determination. The documentation

should include:

a. The terms of the approved

transaction and the date approved;

b. The members of the authorized

body who were present during debate on

the transaction that was approved and

those who voted on it;

c. The comparability data obtained

and relied upon by the authorized body

and how the data was obtained;

d. Any actions by a member of the

authorized body having a conflict of

interest; and

e. Documentation of the basis for the

determination before the later of the next

meeting of the authorized body or 60

days after the final actions of the

authorized body are taken, and approval

of records as reasonable, accurate, and

complete within a reasonable time

thereafter.

Special rebuttable presumption rule

for nonfixed payments. As a general

rule, in the case of a nonfixed payment,

no rebuttable presumption arises until the

exact amount of the payment is

determined, or a fixed formula for

calculating the payment is specified, and

the three requirements creating the

presumption have been satisfied.

However, if the authorized body approves

an employment contract with a

disqualified person that includes a

nonfixed payment (for example,

discretionary bonus)

with a specified cap

on the amount, the authorized body can

establish a rebuttable presumption as to

the nonfixed payment when the

employment contract is entered into by, in

effect, assuming that the maximum

amount payable under the contract will be

paid, and satisfying the requirements

giving rise to the rebuttable presumption

for that maximum amount.

An IRS challenge to the presumption

of reasonableness. The IRS can refute

the presumption of reasonableness only

if it develops sufficient contrary evidence

to rebut the probative value of the

comparability data relied upon by the

authorized body. This provision gives

taxpayers added protection if they

faithfully find and use contemporaneous

persuasive comparability data when they

provide the benefits.

Organizations that don't establish a

presumption of reasonableness. An

organization can still comply with section

4958 even if it didn't establish a

presumption of reasonableness. In some

cases, an organization may find it

impossible or impracticable to fully

implement each step of the rebuttable

presumption process. In those cases, the

organization should try to implement as

many steps as possible, in whole or in

part, in order to substantiate the

reasonableness of benefits as timely and

as well as possible. If an organization

doesn't satisfy the requirements of the

rebuttable presumption of

reasonableness, a facts and

circumstances approach will be followed,

using established rules for determining

reasonableness of compensation and

benefit deductions in a manner similar to

the established procedures for section

162 business expenses.

Section 4958 Taxes

Tax on disqualified persons. An excise

tax equal to 25% of the excess benefit is

imposed on each excess benefit

transaction between an

applicable

tax-exempt organization and a

disqualified person. The disqualified

person who benefited from the

transaction is liable for the tax. If the 25%

tax is imposed and the excess benefit

transaction isn't corrected within the tax

period, an additional excise tax equal to

200% of the excess benefit is imposed.

If a disqualified person makes a

payment of less than the full correction

amount, the 200% tax is imposed only on

the unpaid portion of the correction

amount. If more than one disqualified

person received an excess benefit from

an excess benefit transaction, all the

disqualified persons are jointly and

severally liable for the taxes.

To avoid the imposition of the 200%

tax, a disqualified person must correct

the excess benefit transaction during the

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tax period. The tax period begins on the

date the transaction occurs and ends on

the earlier of the date the statutory notice

of deficiency is issued or the section

4958 taxes are assessed. This 200% tax

can be abated if the excess benefit

transaction is subsequently corrected

during a 90-day correction period.

Tax on organization managers. An

excise tax equal to 10% of the excess

benefit can be imposed on the

participation of an organization manager

in an excess benefit transaction between

an applicable tax-exempt organization

and a disqualified person. This tax, which

can't exceed $20,000 for any single

transaction, is only imposed if the 25%

tax is imposed on the disqualified person,

the organization manager knowingly

participated in the transaction, and the

manager's participation was willful and

not due to reasonable cause. There is

also joint and several liability for this tax.

An organization manager can be liable for

both the tax on disqualified persons and

on organization managers in appropriate

circumstances.

An organization manager is any

officer, director, or trustee of an

applicable tax-exempt organization, or

any individual having powers or

responsibilities similar to officers,

directors, or trustees of the organization,

regardless of title. An organization

manager isn't considered to have

participated in an excess benefit

transaction where the manager has

opposed the transaction in a manner

consistent with the fulfillment of the

manager's responsibilities to the

organization. For example, a director who

votes against giving an excess benefit

would ordinarily not be subject to this tax.

A person participates in a transaction

knowingly if the person has actual

knowledge of sufficient facts so that,

based solely upon the facts, the

transaction would be an excess benefit

transaction. Knowing doesn't mean

having reason to know. The organization

manager won’t ordinarily be considered

knowing if, after full disclosure of the

factual situation to an appropriate

professional, the organization manager

relied on the professional's reasoned

written opinion on matters within the

professional's expertise or if the manager

relied on the fact that the requirements for

the rebuttable presumption of

reasonableness have been satisfied.

Participation by an organization manager

is willful if it is voluntary, conscious, and

intentional. An organization manager's

participation is due to reasonable cause if

the manager has exercised responsibility

on behalf of the organization with

ordinary business care and prudence.

Correcting an Excess

Benefit Transaction

A disqualified person corrects an

excess benefit transaction by undoing

the excess benefit to the extent possible,

and by taking any additional measures

necessary to place the organization in a

financial position not worse than that in

which it would be if the disqualified

person were dealing under the highest

fiduciary standards. The organization isn't

required to rescind the underlying

agreement; however, the parties may

need to modify an ongoing contract for

future payments.

A disqualified person corrects an

excess benefit by making a payment in

cash or cash equivalents equal to the

correction amount to the applicable

tax-exempt organization. The correction

amount equals the excess benefit plus

the interest on the excess benefit; the

interest rate can be no lower than the

applicable federal rate. There is an

anti-abuse rule to prevent the disqualified

person from effectively transferring

property other than cash or cash

equivalents.

Exception. For a correction of an excess

benefit transaction described under

Donor advised funds, earlier, no amount

repaid in a manner prescribed by the IRS

can be held in a donor advised fund.

Property. With the agreement of the

applicable tax-exempt organization, a

disqualified person can make a payment

by returning the specific property

previously transferred in the excess

benefit transaction. The return of the

property is considered a payment of cash

(or cash equivalent) equal to the lesser

of:

•

The FMV of the property on the date

the property is returned to the

organization, or

•

The FMV of the property on the date

the excess benefit transaction occurred.

Insufficient payment. If the payment

resulting from the return of the property is

less than the correction amount, the

disqualified person must make an

additional cash payment to the

organization equal to the difference.

Excess payment. If the payment

resulting from the return of the property

exceeds the correction amount described

above, the organization can make a cash

payment to the disqualified person equal

to that difference.

Churches and Section

4958

The regulations make it clear that the IRS

will apply the procedures of section 7611

when initiating and conducting any

inquiry or examination into whether an

excess benefit transaction has occurred

between a church and a disqualified

person.

Revenue-Sharing

Transactions

Proposed intermediate sanction

regulations were issued in 1998. The

proposed regulations had special

provisions covering “any transaction in

which the amount of any economic

benefit provided to or for the use of a

disqualified person is determined in

whole or in part by the revenues of one or

more activities of the organization” —

so-called revenue-sharing transactions.

Rather than setting forth additional rules

on revenue-sharing transactions, the final

regulations reserve this section.

Consequently, until the IRS issues new

regulations for this reserved section on

revenue-sharing transactions, these

transactions will be evaluated under the

general rules (for example, the

FMV

standards) that apply to all contractual

arrangements between applicable

tax-exempt organizations and their

disqualified persons.

Revocation of

Exemption and Section

4958

Section 4958 doesn't affect the

substantive standards for tax exemption

under section 501(c)(3), 501(c)(4), or

501(c)(29), including the requirements

that the organization be organized and

operated exclusively for exempt

purposes, and that no part of its net

earnings inure to the benefit of any

private shareholder or individual. The

legislative history indicates that in most

instances, the imposition of this

intermediate sanction will be in lieu of

revocation. The IRS has indicated that

the following factors will be considered

(among other facts and circumstances) in

determining whether to revoke an

applicable tax-exempt organization's

exemption status where an

excess

benefit transaction has occurred.

•

The size and scope of the

organization's regular and ongoing

activities that further exempt purposes

before and after the excess benefit

transaction or transactions occurred.

•

The size and scope of the excess

benefit transaction or transactions

(collectively, if more than one) in relation

to the size and scope of the

organization's regular and ongoing

activities that further exempt purposes.

•

Whether the organization has been

involved in multiple excess benefit

transactions with one or more persons.

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•

Whether the organization has

implemented safeguards that are

reasonably calculated to prevent excess

benefit transactions.

•

Whether the excess benefit transaction

has been corrected, or the organization

has made good faith efforts to seek

correction from the disqualified person(s)

who benefited from the excess benefit

transaction.

Appendix H. Forms and

Publications To File or

Use

How To Get Forms and

Publications

Internet. You can access the IRS

website at IRS.gov 24 hours a

day, 7 days a week to:

•

Download forms, including talking tax

forms, instructions, and publications;

•

Order IRS products online;

•

Research your tax questions online;

•

Search publications online by topic or

keyword;

•

Use the online Internal Revenue Code,

regulations, or other official guidance;

•

View Internal Revenue Bulletins (IRBs)

published in the last few years; and

•

tax news by email.

How To Get Tax Help

Coronavirus. Go to IRS.gov/

Coronavirus for links to information on the

impact of the coronavirus, as well as tax

relief available for individuals and

families, small and large businesses, and

tax-exempt organizations.

Getting answers to your tax ques-

tions. On IRS.gov, you can get

up-to-date information on current events

and changes in tax law.

•

IRS.gov/Help: A variety of tools to help

you get answers to some of the most

common tax questions.

•

IRS.gov/ITA: The Interactive Tax

Assistant, a tool that will ask you

questions and, based on your input,

provide answers on a number of tax law

topics.

•

IRS.gov/Forms: Find forms,

instructions, and publications. You will

find details on the most recent tax

changes and interactive links to help you

find answers to your questions.

•

The Online EIN Application (IRS.gov/

EIN) helps you get an employer

identification number (EIN) at no cost.

•

You may also be able to access tax law

information in your electronic filing

software.

Getting tax forms and publications.

Go to IRS.gov/Forms to view, download,

or print all of the forms, instructions, and

publications you may need. Or, you can

go to IRS.gov/OrderForms to place an

order.

Getting tax publications and instruc-

tions in eBook format. You can also

download and view popular tax

publications and instructions (including

the Instructions for Form 1040) on mobile

devices as eBooks at

IRS.gov/eBooks.

Note. IRS eBooks have been tested

using Apple's iBooks for iPad. Our

eBooks haven’t been tested on other

dedicated eBook readers, and eBook

functionality may not operate as

intended.

Phone. If you have questions and/or

need help completing Form 990 or

990-EZ, call 877-829-5500. This toll-free

telephone service is available Monday

through Friday.

Other Forms That May Be

Required

Schedule A (Form 990). Public Charity

Status and Public Support.

Schedule B (Form 990). Schedule of

Contributors.

Schedule C (Form 990). Political

Campaign and Lobbying Activities.

Schedule D (Form 990). Supplemental

Financial Statements.

Schedule E (Form 990). Schools.

Schedule F (Form 990). Statement of

Activities Outside the United States.

Schedule G (Form 990). Supplemental

Information Regarding Fundraising or

Gaming Activities.

Schedule H (Form 990). Hospitals.

Schedule I (Form 990). Grants and

Other Assistance to Organizations,

Governments, and Individuals in the

United States.

Schedule J (Form 990). Compensation

Information.

Schedule K (Form 990). Supplemental

Information on Tax-Exempt Bonds.

Schedule L (Form 990). Transactions

With Interested Persons.

Schedule M (Form 990). Noncash

Contributions.

Schedule N (Form 990). Liquidation,

Termination, Dissolution, or Significant

Disposition of Assets.

Schedule O (Form 990). Supplemental

Information to Form 990 or 990-EZ.

Schedule R (Form 990). Related

Organizations and Unrelated

Partnerships.

Forms W-2 and W-3.

Wage and Tax

Statement; and Transmittal of Wage and

Tax Statements.

Form W-9. Request for Taxpayer

Identification Number and Certification.

Form 720. Quarterly Federal Excise Tax

Return.

The Patient-Centered Outcomes

Research fee is imposed on

issuers of specified health

insurance policies (section 4375) and

plan sponsors of applicable self-insured

health plans (section 4376) for policy and

plan years ending on or after October 1,

2012. See Form 720 and section 4376 for

more information.

In addition to various federal excise taxes

that are paid with the filing of Form 720,

the Patient-Centered Outcomes

Research fee that is imposed on issuers

of specified health insurance policies and

plan sponsors of applicable self-insured

health plans is payable annually and

reported on the Form 720 that is filed for

the second quarter of each year, which is

due no later than July 31 of the calendar

year immediately following the last day of

the policy year or plan year to which the

fee applies.

Form 926. Return by a U.S. Transferor of

Property to a Foreign Corporation.

Form 940. Employer's Annual Federal

Unemployment (FUTA) Tax Return.

Form 941. Employer's QUARTERLY

Federal Tax Return. Used to report social

security, Medicare, and income taxes

withheld by an employer and social

security and Medicare

taxes paid by an

employer.

Form 943. Employer's Annual Federal

Tax Return for Agricultural Employees.

Form 990-T. Exempt Organization

Business Income Tax Return. Filed

separately for organizations subject to

UBTI that have total gross income from all

of their

unrelated trades or businesses

of $1,000 or more for the tax year. The

Form 990-T is also filed to pay the section

6033(e)(2) proxy tax. For Form 990, see

Part V, line 3, and its instructions; for

Form 990-EZ, see Part V, line 35, and its

instructions.

Form 1023. Application for Recognition

of Exemption Under Section 501(c)(3) of

the Internal Revenue Code.

Form 1023-EZ. Streamlined Application

for Recognition of Exemption Under

Section 501(c)(3) of the Internal Revenue

Code.

Form 1024. Application for Recognition

of Exemption Under Section 501(a).

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Form 1024-A. Application for

Recognition of Exemption Under Section

501(c)(4) of the Internal Revenue Code.

Form 1040. U.S. Individual Income Tax

Return.

Form 1040-SR. U.S. Tax Return for

Seniors.

Form 1041. U.S. Income Tax Return for

Estates and Trusts. Required of section

4947(a)(1) nonexempt charitable trusts

that also file Form 990 or 990-EZ.

However, if the trust doesn't have any

taxable income under subtitle A of the

Code, it can file Form 990 or 990-EZ, and

doesn't have to file Form 1041 to meet its

section 6012 filing requirement. If this

condition is met, complete Form 990 or

990-EZ, and don't file Form 1041.

Form 1096. Annual Summary and

Transmittal of U.S. Information Returns.

Form 1098 series. Information returns

to report mortgage interest, student loan

interest, qualified tuition and related

expenses received, and a contribution of

a qualified vehicle that has a claimed

value of more than $500.

Form 1099 series. Information returns

to report acquisitions or abandonments of

secured property; proceeds from broker

and barter exchange transactions;

cancellation of debt; dividends and

distributions; certain government and

state qualified tuition program payments;

taxable distributions from cooperatives;

interest payments; payments of long-term

care and accelerated death benefits;

miscellaneous income payments;

distributions from an HSA, Archer MSA,

or Medicare Advantage MSA; original

issue discount; distributions from

pensions, annuities, retirement or

profit-sharing plans, IRAs, insurance

contracts, etc.; and proceeds from real

estate transactions. Also, use certain of

these returns to report amounts that were

received as a nominee on behalf of

another person.

Form 1120-POL. U.S. Income Tax

Return for Certain Political Organizations.

Form 1128. Application To Adopt,

Change, or Retain a Tax Year.

Form 2848. Power of Attorney and

Declaration of Representative.

Form 3115. Application for Change in

Accounting Method.

Form 3520. Annual Return To Report

Transactions With Foreign Trusts and

Receipt of Certain Foreign Gifts.

Form 4506. Request for Copy of Tax

Return.

Form 4506-A. Request for a Copy of

Exempt or Political Organization IRS

Form.

Form 4562.

Depreciation and

Amortization.

Form 4720. Return of Certain Excise

Taxes Under Chapters 41 and 42 of the

Internal Revenue Code.

Form 5471. Information Return of U.S.

Persons With Respect to Certain Foreign

Corporations.

Form 5500. Annual Return/Report of

Employee Benefit Plan. Employers who

maintain pension, profit-sharing, or other

funded deferred compensation plans are

generally required to file Form 5500. This

requirement applies whether or not the

plan is qualified under the Internal

Revenue Code and whether or not a

deduction is claimed for the current tax

year.

Form 5578. Annual Certification of

Racial Nondiscrimination for a Private

School Exempt From Federal Income

Tax.

Form 5768. Election/Revocation of

Election by an Eligible Section 501(c)(3)

Organization To Make Expenditures To

Influence Legislation.

Form 7004. Application for Automatic

Extension of Time To File Certain

Business Income Tax, Information, and

Other Returns.

Form 8038 series. Tax-exempt bonds.

Form 8274. Certification by Churches

and Qualified Church-Controlled

Organizations Electing Exemption From

Employer Social Security and Medicare

Taxes.

Form 8282. Donee Information Return.

Required of the donee of charitable

deduction property who sells, exchanges,

or otherwise disposes of donated

property within 3 years after receiving it.

The form is also required of any

successor donee who disposes of the

charitable deduction property within 3

years after the date that the donor gave

the property to the original donee. It

doesn't matter who gave the property to

the successor donee. It may have been

the original donee or another successor

donee.

Form 8283. Noncash Charitable

Contributions.

Form 8300. Report of Cash Payments

Over $10,000 Received in a Trade or

Business. Used to report cash amounts

in excess of $10,000 that were received

in a single transaction (or in two or more

related transactions) in the course of a

trade or business (as defined in section

162).

However, if the organization receives a

charitable cash contribution in excess of

$10,000, it isn't subject to the reporting

requirement since the funds weren't

received in the course of a trade or

business.

Form 8328. Carryforward Election of

Unused Private Activity Bond Volume

Cap.

Form 8718. User Fee for Exempt

Organization Determination Letter

Request.

Form 8821. Tax Information

Authorization.

Form 8822-B. Change of Address or

Responsible Party—Business

. Used to

notify the IRS of a change in mailing

address that occurs after the return is

filed.

Form 8868. Application for Extension of

Time To File an Exempt Organization

Return or Excise Taxes Related to

Employee Benefit Plans.

Form 8870. Information Return for

Transfers Associated With Certain

Personal Benefit Contracts. Used to

identify those personal benefit contracts

for which funds were transferred to the

organization, directly or indirectly, as well

as the transferors for, and beneficiaries

of, those contracts.

Form 8871. Political Organization Notice

of Section 527 Status.

Form 8872. Political Organization

Report of Contributions and

Expenditures.

Form 8886. Reportable Transaction

Disclosure Statement.

Form 8886-T. Disclosure by Tax-Exempt

Entity Regarding Prohibited Tax Shelter

Transaction.

Form 8899. Notice of Income From

Donated Intellectual Property. Used to

report net income from qualified

intellectual property to the IRS and the

donor.

Form 8940. Request for Miscellaneous

Determination.

Form 8976. Notice of Intent to Operate

Under Section 501(c)(4).

Form SS-4. Application for Employer

Identification Number.

FinCEN Form 114. Report of Foreign

Bank and Financial Accounts.

Helpful Publications

Pub. 15. (Circular E), Employer's Tax

Guide.

Trust fund recovery penalty. If

certain excise, income, social

security, and Medicare taxes that

must be collected or withheld aren't

collected or withheld, or these taxes

aren't paid to the IRS, the trust fund

recovery penalty can apply. The trust

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fund recovery penalty can be imposed on

all persons (including volunteers) who the

IRS determines were responsible for

collecting, accounting for, and paying

over these taxes, and who acted willfully

in not doing so.

This penalty doesn't apply to volunteer

unpaid members of any board of trustees

or directors of a tax-exempt organization,

if these members are solely serving in an

honorary capacity, don't participate in the

day-to-day or financial activities of the

organization, and don't have actual

knowledge of the failure to collect,

account for, and pay over these taxes.

However, the preceding sentence doesn't

apply if it results in no person being liable

for the penalty.

The penalty is equal to the unpaid trust

fund tax. See Pub. 15 (Circular E) for

more details, including the definition of

responsible persons.

Pub. 15-A. Employer's Supplemental

Tax Guide.

Pub. 463. Travel, Gift, and Car

Expenses.

Pub. 525. Taxable and Nontaxable

Income.

Pub. 526. Charitable Contributions.

Pub. 538. Accounting Periods and

Methods.

Pub. 557. Tax-Exempt Status for Your

Organization.

Pub. 561. Determining the Value of

Donated Property.

Pub. 598. Tax on Unrelated Business

Income of Exempt Organizations.

Pub. 892. How to Appeal an IRS

Decision on Tax-Exempt Status.

Pub. 946. How To Depreciate Property.

Pub. 1771. Charitable

Contributions—Substantiation and

Disclosure Requirements.

Pub. 1828. Tax Guide for Churches and

Religious Organizations.

Pub. 3079. Tax-Exempt Organizations

and Gaming.

Pub. 3386. Tax Guide for Veterans'

Organizations.

Pub. 3833. Disaster Relief, Providing

Assistance Through Charitable

Organizations.

Pub. 4220. Applying for 501(c)(3)

Tax-Exempt Status.

Pub. 4221-PC. Compliance Guide for

501(c)(3) Public Charities.

Pub. 4221-PF. Compliance Guide for

501(c)(3) Private Foundations.

Pub. 4302.

A Charity's Guide to Vehicle

Donation.

Pub. 4303. A Donor's Guide to Vehicle

Donation.

Pub. 4386. Compliance Checks.

Pub. 4573. Group Exemptions.

Appendix I. Use of Form

990 or 990-EZ To Satisfy

State Reporting

Requirements

Some states and local governmental

units will accept a copy of Form 990 or

990-EZ in place of all or part of their own

financial report forms. The substitution

applies primarily to section 501(c)(3)

organizations, but some other types of

section 501(c) organizations are also

affected. If the organization uses Form

990 or 990-EZ to satisfy state or local

filing requirements, such as those under

state charitable solicitation acts, note the

following discussions.

Determine state filing requirement.

The organization can consult the

appropriate officials of all states and

other jurisdictions in which it does

business to determine their specific filing

requirements. Doing business in a

jurisdiction can include:

•

Soliciting contributions or grants by

mail or otherwise from individuals,

businesses, or other charitable

organizations;

•

Conducting programs;

•

Having employees within that

jurisdiction;

•

Maintaining a checking account; or

•

Owning or renting property there.

Monetary tests can differ. Some or all

of the dollar limitations applicable to Form

990 or 990-EZ when filed with the IRS

may not apply when using Form 990 or

990-EZ in place of state or local report

forms. Examples of the IRS dollar

limitations that don't meet some state

requirements are the normally $50,000

gross receipts minimum that creates an

obligation to file with the IRS and the

$100,000 minimum for listing

independent contractors on Form 990,

Part VII, Section B.

Additional information may be re-

quired. State or local filing requirements

can require the organization to attach to

Form 990 or 990-EZ one or more of the

following.

•

Additional financial statements, such

as a complete analysis of functional

expenses or a statement of changes in

net assets.

•

Notes to financial statements.

•

Additional financial statements.

•

A report on the financial statements by

an independent accountant.

•

Answers to additional questions and

other information.

Each jurisdiction can require the

additional material to be presented on

forms they provide. The additional

information shouldn't be submitted with

the Form 990 or 990-EZ filed with the

IRS, unless included on Schedule O

(Form 990).

Even if the Form 990 or 990-EZ that

the organization files with the IRS is

accepted by the IRS as complete, a copy

of the same return filed with a state won't

fully satisfy that state's filing requirement

if (1) required information isn't provided,

including any of the additional information

discussed in this Appendix; or (2) the

state determines that the form wasn't

completed by following the applicable

Form 990 or 990-EZ instructions or

supplemental state instructions. In that

case, the state may ask the organization

to provide the missing information or to

submit an amended return.

Use of audit guides may be required.

To ensure that all organizations report

similar transactions uniformly, many

states require that contributions, gifts,

grants, similar amounts, and functional

expenses be reported according to the

AICPA Audit and Accounting Guide,

Not-for-Profit Entities (2018),

supplemented, as applicable, by the

Standards of Accounting and Financial

Reporting for Voluntary Health and

Welfare Organizations issued jointly by

the National Health Council, Inc., the

National Assembly of Voluntary Health

and Social Welfare Organizations, and

the United Way of America (1998).

Donated services and facilities. Even

though donated services and facilities

may be reported as items of revenue and

expense in certain circumstances, many

states and the IRS don't permit the

inclusion of those amounts in Parts VIII

and IX of Form 990, Part I of Form

990-EZ, or (except for donations by a

governmental unit) Schedule A (Form

990). The optional reporting of donated

services and facilities is discussed in the

instructions for Part III of Form 990.

Amended returns. If the organization

submits supplemental information or files

an amended Form 990 or 990-EZ with

the IRS, it must also send a copy of the

information or amended return to any

state with which it filed a copy of Form

990 or 990-EZ originally to meet that

state's filing requirement. If a state

requires the organization to file an

amended Form 990 or 990-EZ to correct

conflicts with the Form 990 or 990-EZ

instructions, the organization must also

file an amended return with the IRS.

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Method of accounting. Most states

require that all amounts be reported

based on the accrual method of

accounting. See also General Instruction

D, earlier.

Time for filing can differ. The deadline

for filing Form 990 or 990-EZ with the IRS

differs from the time for filing reports with

some states.

Public inspection. The Form 990 or

990-EZ information made available for

public inspection by the IRS can differ

from that made available by the states.

Appendix J.

Contributions

This Appendix discusses certain federal

tax rules that apply to exempt

organizations and donors for

contributions. See also Pub. 526,

Charitable Contributions; and Pub. 1771,

Charitable Contributions—Substantiation

and Disclosure Requirements.

Schedule B (Form 990). Many

organizations that file Form 990, 990-EZ,

or 990-PF must file Schedule B to report

on tax-deductible and non-tax-deductible

contributions. See Schedule B and its

instructions to determine whether

Schedule B must be filed, and for the

public inspection rules applicable to that

form.

Solicitation of nondeductible contri-

bution. See the instructions for Form

990, Part V, lines 6a and 6b, for rules on

public notice of nondeductibility when

soliciting nondeductible contributions.

Keeping fundraising records for

tax-deductible contributions. A

section 501(c) organization that is eligible

to receive tax-deductible contributions

under section 170(c) must keep sample

copies of its fundraising materials, such

as:

•

Dues statements,

•

Fundraising solicitations,

•

Tickets,

•

Receipts, or

•

Other evidence of payments received

in connection with fundraising activities.

IF...

THEN...

the

organization

advertises its

fundraising

events

it must keep samples of the

advertising copy.

the

organization

uses radio,

television, or

Internet to

solicit

contributions

it must keep samples of scripts,

transcripts, printouts of emails

and web pages, or other

evidence of solicitations in the

media.

the

organization

uses outside

fundraisers

it must keep samples of the

fundraising materials used by

the outside fundraisers.

For each fundraising event, the

organization must keep records to show

the portion of any payment received from

patrons that isn't deductible, that is, the

retail value of the goods or services

received by the patrons. See

Disclosure

statement for quid pro quo contributions,

later.

Noncash contributions. Form 990

schedules. An organization may be

required to file Schedule M to report

certain noncash (property) contributions;

see the instructions for Schedule M on

who must file. Also, an organization that

files Schedule B must report certain

information on noncash contributions.

Dispositions of donated property.

If an organization receives a charitable

contribution of property and within 3

years sells, exchanges, or otherwise

disposes of the property, the organization

may need to file Form 8282,

Donee

Information Return. See Form 990, Part

V, lines 7c and 7d.

Donated property over $5,000. If the

organization received from a donor a

partially completed Form 8283,

Noncash

Charitable Contributions, the donee

organization should generally complete

the Form 8283 and return it so the donor

can get a charitable contribution

deduction. The organization should keep

a copy for its records. See Form 8283 for

more details.

Qualified intellectual property. An

organization described in section 170(c)

(except a private foundation) that

receives or accrues net income from a

qualified intellectual property contribution

must file Form 8899,

Notice of Income

From Donated Intellectual Property. See

Form 990, Part V, line 7g. The

organization must file Form 8899 for any

tax year that includes any part of the

10-year period beginning on the date of

contribution but not for any tax years in

which the legal life of the qualified

intellectual property has expired or the

property failed to produce net income.

A donee organization reports all

income from donated qualified

intellectual property as income other than

contributions (for example, royalty income

from a patent). A donee isn't required to

report as contributions on Form 990

(including statements) any of the

additional deductions claimed by donors

under section 170(m)(1). See Pub. 526.

Motor vehicles, boats, and

airplanes. Special rules apply to

charitable contributions of motor vehicles,

boats, or airplanes with a claimed value

of more than $500. See Form 990, Part V,

line 7h; section 170(f)(12); Pub. 4302, A

Charity’s Guide to Vehicle Donation; and

the Instructions for Form 1098-C,

Contributions of Motor Vehicles, Boats,

and Airplanes.

Substantiation and disclosure

requirements for charitable

contributions.

Recordkeeping for cash, check, or

other monetary charitable gifts. To

deduct a contribution of a cash, check, or

other monetary gift (regardless of the

amount), a donor must maintain a bank

record or a written communication from

the donee organization showing the

donee's name, date, and amount of the

contribution. See section 170(f)(17) and

Regulations section 1.170A-15 for more

information. In the case of a text message

contribution, the donor's phone bill meets

the section 170(f)(17) recordkeeping

requirement of a reliable written record if

it shows the name of the donee

organization and the date and amount of

contribution.

Acknowledgment to substantiate

charitable contributions. A donee

organization should be aware that a

donor of a charitable contribution of $250

or more (including a contribution of

unreimbursed expenses) can't take an

income tax deduction unless the donor

obtains the organization’s

acknowledgment to substantiate the

charitable contribution. See section

170(f)(8) and Regulations section

1.170A-13(f). A charitable organization

that receives a payment made as a

contribution is treated as the donee

organization for this purpose even if the

organization (according to the donor’s

instructions or otherwise) distributes the

amount received to one or more charities.

The organization's acknowledgment

must:

1. Be written;

2. Be contemporaneous;

3. State the amount of any cash it

received;

4. State:

a. Whether the organization gave the

donor any intangible religious benefits

(no valuation needed), and

2023 Instructions for Form 990

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

b. Whether the organization gave the

donor any goods or services in return for

the donor’s contribution (a quid pro quo

contribution); and

5. Describe goods or services the

organization:

a. Received (no valuation needed),

and

b. Gave (good faith estimate of value

needed).

If the organization accepts a

contribution in the name of one of its

activities or programs, then indicate the

organization's name in the

acknowledgment as well as the

program's name. For example: “Thank

you for your contribution of $300 to

(organization's name) made in the name

of our Special Relief Fund program. No

goods or services were provided in

exchange for your contribution.”

Similarly, if a domestic organization

owns and controls a domestic

disregarded entity, and the disregarded

entity receives a contribution, then

indicate the organization's name in the

acknowledgment as well as the

relationship with the disregarded entity.

For example: “Thank you for your

contribution of $300 to (organization's

name) made in the name of (name of

disregarded entity), which is treated as a

disregarded entity of (organization's

name) for federal tax purposes. No goods

or services were provided in exchange for

your contribution.” See Notice 2012-52,

2012-35 I.R.B. 317.

Exception. The written

acknowledgment need not include a

good faith estimate of value for goods or

services given to the donor if they are:

1. Goods or services with

insubstantial value,

2. Certain membership benefits,

3. Goods or services described in (1)

or (2) given to the employees of a donor

organization or the partners of a donor

partnership, or

4. Intangible religious benefits.

These exceptions are defined below.

Disclosure statement for quid pro quo

contributions. If the organization

receives a quid pro quo contribution of

more than $75, the organization must

provide a disclosure statement to the

donor. See section 6115.

The organization’s disclosure

statement must:

1. Be written;

2. Estimate in good faith the value of

the organization’s goods or services

given in return for the donor’s

contribution;

Describe, but need not value,

certain goods or services given to the

donor’s employees or partners; and

4. Inform the donor that a charitable

contribution deduction is limited as

follows.

Donor’s contribution

Less

The organization’s money, goods, and

services given in return

Equals

Donor’s deductible charitable

contribution.

Exceptions. No disclosure statement

is required if the organization gave only:

1. Goods or services with

insubstantial value,

2. Certain membership benefits,

3. Goods or services described in (1)

or (2) given to the employees of a donor

organization or the partners of a donor

partnership, or

4. Intangible religious benefits.

These exceptions are defined below.