● Foreign organizations with $25,000 or less

Department of the Treasury in gross receipts from U.S. sources are now
exempt from filing Form 990.
Internal Revenue Service ● The law that allowed group legal services
plan benefits to qualify for exclusion under

Instructions for Form 990 section 120 and for group legal services
trusts to qualify for recognition of exemption
under section 501(c)(20) expired for tax years
Return of Organization Exempt From Income Tax beginning after June 30, 1992, and was not
reinstated as of the date this form was
Under section 501(c) of the Internal Revenue Code (except black lung printed.
benefit trust or private foundation) or section 4947(a)(1) nonexempt ● The Office of Personnel Management
charitable trust (OPM) requests a completed Form 990, and
not a Form 990-EZ, from any organization
Section references are to the Internal Revenue Code unless otherwise indicated. applying to participate in a Combined Federal
Campaign.
Paperwork Reduction Act Notice.—We ask for the information on this form to carry out the ● The Revenue Reconciliation Act of 1993
Internal Revenue laws of the United States. You are required to give us the information. We made the following changes effective January
need it to ensure that you are complying with these laws. 1, 1994. (See General Instruction S and the
The time needed to complete and file this form and related schedules will vary depending on instructions for line 85 in Part VI.)
individual circumstances. The estimated average times are: 1. To obtain a section 170 deduction,
Copying, donors who contribute $250 or more in cash
Learning about Preparing assembling, and or property must obtain a contemporaneous
the law or the the sending the form written acknowledgment from the donee
Form Recordkeeping form form to the IRS organization.
990 87 hr., 32 min. 17 hr., 17 min. 22 hr., 16 min. 48 min. 2. Organizations that gave a donor
something in return for a contribution of more
Schedule A 44 hr., 58 min. 9 hr., 8 min. 10 hr., 17 min. -0- than $75 (a quid pro quo situation) must
(Form 990) inform the contributor of the amount
If you have comments concerning the accuracy of these time estimates or suggestions for deductible for Federal income tax purposes.
making these forms more simple, we would be happy to hear from you. You can write to both 3. Certain organizations must inform their
the Internal Revenue Service, Attention: Reports Clearance Officer, PC:FP, Washington, DC membership of the portion of their dues
20224; and the Office of Management and Budget, Paperwork Reduction Project allocable to the organization’s lobbying and
(1545-0047), Washington, DC 20503. DO NOT send the form to either of these offices. Instead, political activities and thus not deductible on
see When and Where To File. a member’s tax return.
These organizations may be subject to a
proxy tax if they fail to provide their
Contents Page Contents Page membership with an estimate of the
● General Instructions 1–7 Part I—Statement of Revenue, relationship of dues to lobbying expenses or
A Who Must File 1 Expenses, and Changes in Net if the organizations actually exceed their
Assets or Fund Balances 8 estimated lobbying expenses.
B Exempt Organization Reference
Chart 2 Part II—Statement of Functional 4. Exclusion codes for sections 512(b)(1)
Expenses 13 and 512(b)(5) were modified.
C Organizations Not Required To File
Part III—Statement of Program
Form 990 2
Service Accomplishments 16 General Instructions
D Forms and Publications To File or Use 3
Part IV—Balance Sheets 16 Note: An organization’s completed Form 990
E Use of Form 990 To Satisfy State (except for the schedule of contributors) is
Reporting Requirements 3 Part V—List of Officers, Directors,
available for public inspection as required by
Trustees, and Key Employees 18
F Other Forms as Partial Substitutes section 6104.
for Form 990 4 Part VI—Other Information 19
G Accounting Period Covered 4 Part VII—Analysis of Income- Purpose of Form
Producing Activities 22 Form 990 is used by tax-exempt
H When and Where To File 4
Part VIII—Relationship of Activities organizations and nonexempt charitable
I Extension of Time To File 5 trusts to provide the IRS with the information
to the Accomplishment of
J Amended Return/Final Return 5 Exempt Purposes 22 required by section 6033.
K Penalties 5 Part IX—Information Regarding This form may be used to transmit
L Public Inspection of Completed Taxable Subsidiaries 23 elections that are required to be submitted to
Exempt Organization Returns and Exclusion Codes 24 the IRS, such as the election to capitalize
Approved Exemption Applications 5 costs under section 266.
M Solicitations of Nondeductible Items To Note A. Who Must File
Contributions 6 ● A separate entry line for reporting
1. Filing tests
N Disclosures Regarding Certain tax-exempt bond liabilities was added to the
Information and Services Furnished 6 balance sheet. Organizations with such If the organization does not meet any of the
O Disclosures Regarding Certain obligations must also attach a schedule to exceptions listed in General Instruction C and
Transactions and Relationships 6 describe these liabilities. its annual gross receipts are normally more
● For all types of filers, revenue from sales of than $25,000 (see General Instruction C11
P Erroneous Backup Withholding 6 below), it must file Form 990. If the
program-related inventory items is now
Q Group Return 6 organization’s gross receipts during the year
reportable on line 2 and the related cost of
R Organizations in Foreign Countries goods sold is reportable on line 43. are less than $100,000 and its total assets at
and U.S. Possessions 6 the end of the year are less than $250,000, it
● Separate totals for cash and noncash may file Form 990-EZ, Short Form Return of
S Substantiation, Disclosure, and Lobbying contributions, etc., received have to be
Requirements of the Revenue Organization Exempt From Income Tax,
reported on line 1; and separate totals for instead of Form 990. Even if the organization
Reconciliation Act of 1993 6 cash and noncash grants, etc., made have to meets this test, it can still file Form 990. See
● Specific Instructions 7-8 be shown on line 22.

Cat. No. 11283J

also Items To Note for Combined Federal B. Exempt Organization 5. A state institution whose income is
Campaign filing information. excluded from gross income under section
Reference Chart 115.
2. Section 501(a), (e), (f), and (k)
organizations Type of 6. An organization described in section
Organization I.R.C. section 501(c)(1). Section 501(c)(1) organizations are
Except for those types of organizations listed corporations organized under an Act of
Corporations organized under Act of
in General Instruction C, an annual return on Congress 501(c)(1) Congress that are:
Form 990 (or Form 990-EZ) is required from
every organization exempt from tax under
Title Holding Corporations 501(c)(2) ● Instrumentalities of the United States, and
Charitable, Religious, Educational,
section 501(a), including foreign organizations Scientific, etc., Organizations 501(c)(3)
● Exempt from Federal income taxes.
and cooperative service organizations Civic Leagues and Social Welfare 7. A private foundation exempt under
described in sections 501(e) and (f), and child Organizations 501(c)(4) section 501(c)(3) and described in section
care organizations described in section Labor, Agricultural, and Horticultural 509(a). (Required to file Form 990-PF, Return
501(k). Section 501(c)(3), (e), (f), and (k) Organizations 501(c)(5) of Private Foundation.)
organizations must also attach a completed Business Leagues, etc. 501(c)(6)
8. A black lung benefit trust described in
Schedule A (Form 990) to their Form 990 (or Social and Recreation Clubs 501(c)(7)
section 501(c)(21). (Required to file Form
Form 990-EZ). Fraternal Beneficiary and Domestic
990-BL, Information and Initial Excise Tax
Fraternal Societies and Associations 501(c)(8) & (10)
3. Section 4947(a)(1) nonexempt charitable Voluntary Employees’ Beneficiary Return for Black Lung Benefit Trusts and
trusts Associations 501(c)(9) Certain Related Persons.)
Any nonexempt charitable trust (described in
Teachers’ Retirement Fund Associations 501(c)(11) 9. A stock bonus, pension, or profit-sharing
section 4947(a)(1)) not treated as a private
Benevolent Life Insurance Associations, trust that qualifies under section 401. (See
Mutual Ditch or Irrigation Companies, Form 5500, Annual Return/Report of
foundation is also required to file Form 990 Mutual or Cooperative Telephone
(or Form 990-EZ), along with a completed Companies, etc. 501(c)(12)
Employee Benefit Plan.)
Schedule A (Form 990). See General Cemetery Companies 501(c)(13) 10. A religious or apostolic organization
Instruction D7 for exceptions to filing Form State Chartered Credit Unions, Mutual described in section 501(d). (Required to file
1041, U.S. Fiduciary Income Tax Return. Reserve Funds 501(c)(14) Form 1065, U.S. Partnership Return of
Mutual Insurance Companies or Income.)
4. If an organization’s exemption Associations 501(c)(15)
application is pending 11. An organization whose annual gross
Cooperative Organizations To Finance Crop
Operations 501(c)(16) receipts are normally $25,000 or less (but see
If the organization’s application for exemption General Instruction A5 if the organization
Supplemental Unemployment Benefit
is pending, check the “Application pending” Trusts 501(c)(17) received a Form 990 Package).
box in the heading of the return (item F) and Employee Funded Pension Trusts (created a. Calculating gross receipts.—Gross
complete the return. before 6/25/59) 501(c)(18) receipts are the sum of lines 1d, 2, 3, 4, 5,
5. If the organization received a Form 990 Organizations of Past or Present 6a, 7, 8a (both columns), 9a, 10a, and 11 of
Members of the Armed Forces 501(c)(19) & (23)
Package Part I. The organization’s gross receipts are
Prepaid Group Legal Services Plans 501(c)(20)
the total amount it received from all sources
If the organization received a Form 990 Black Lung Benefit Trusts 501(c)(21)
during its annual accounting period, without
Package with a preaddressed label, we ask Withdrawal Liability Payment Funds 501(c)(22)
subtracting any costs or expenses.
that the organization file a return even if it is Title Holding Corporations or Trusts 501(c)(25)
not required to do so. Attach the label to the Religious and Apostolic Associations 501(d) b. Gross receipts when acting as
name and address space on the return (see Cooperative Hospital Service Organizations 501(e) agent.—If a local chapter of a section
Specific Instructions). Check the box in item Cooperative Service Organizations of 501(c)(8) fraternal organization collects
K in the heading of the Form 990 to indicate Operating Educational Organizations 501(f) insurance premiums for its parent lodge and
that the organization’s gross receipts are Child Care Organizations 501(k) merely sends those premiums to the parent
normally not more than $25,000; sign the without asserting any right to use the funds
return; and send it to the service center for C. Organizations Not Required or otherwise deriving any benefit from
the organization’s area. You do not have to To File collecting them, the local chapter should not
complete Parts I through IX of the return. include the premiums in its gross receipts.
Note: Organizations not required to file this The parent lodge should report them instead.
Following this instruction will help us to form with the IRS may wish to use it to satisfy
update our records, and we will not have to The same treatment applies in other
state reporting requirements. For details, see situations in which one organization collects
contact the organization later to ask why no General Instruction E.
return was filed. If the organization files a funds merely as an agent for another.
return this way, it will not be mailed a Form The following types of organizations c. $25,000 gross receipts test.—An
990 Package in later years and need not file exempt from tax under section 501(a) do not organization’s gross receipts are considered
Form 990 (or Form 990-EZ) again until its have to file Form 990 (or Form 990-EZ) with normally to be $25,000 or less if the
gross receipts are normally more than the IRS: organization is:
$25,000, or it terminates or undergoes a 1. A church, an interchurch organization of 1. Up to a year old and has received, or
substantial contraction as described in the local units of a church, a convention or donors have pledged to give, $37,500 or less
instructions for line 79. association of churches, an integrated during its first tax year;
auxiliary of a church (such as a men’s or
6. Failure to file and its effect on women’s organization, religious school, 2. Between 1 and 3 years old and averaged
contributions mission society, or youth group), or an $30,000 or less in gross receipts during each
Organizations that are eligible to receive tax internally supported, church-controlled of its first 2 tax years; or
deductible contributions are listed in organization described in Rev. Proc. 86-23, 3. Three (3) years old or more and averaged
Publication 78, Cumulative List of 1986-1 C.B. 564. $25,000 or less in gross receipts for the
Organizations described in Section 170(c) of 2. A school below college level affiliated immediately preceding 3 tax years (including
the Internal Revenue Code of 1986. An with a church or operated by a religious the year for which the return would be filed).
organization may be removed from this listing order. 12. A foreign organization whose annual
if our records show that it is required to file gross receipts from sources within the U.S.
3. A mission society sponsored by, or
Form 990 (or Form 990-EZ), but it does not are normally $25,000 or less (Rev. Proc
affiliated with, one or more churches or
file a return or advise us that it is no longer 94-17, 1994-5 I.R.B. 24). See $25,000 gross
church denominations, if more than half of
required to file. However, contributions to receipts test in 11c. See also General
the society’s activities are conducted in, or
such an organization may continue to be Instruction A5 if the organization received a
directed at persons in, foreign countries.
deductible by the general public until the IRS Form 990 Package.
publishes a notice to the contrary in the 4. An exclusively religious activity of any
Internal Revenue Bulletin. religious order.

Page 2
D. Forms and Publications To B. Applicable check boxes property within 2 years after the date that the
C. Name and address donor gave the property to the original donee.
File or Use It does not matter who gave the property to
D. Employer identification number the successor donee. It may have been the
1. Schedule A (Form 990)
G. Section 4947(a)(1) nonexempt charitable original donee or another successor donee.
Organization Exempt Under Section 501(c)(3) trust box. (Also, complete question 92 and
(Except Private Foundation), 501(e), 501(f), the signature block on page 5.) 18. Form 8300
501(k), or Section 4947(a)(1) Nonexempt
8. Form 1096 Report of Cash Payments Over $10,000
Charitable Trust. Filed with Form 990 (or Form
Received in a Trade or Business. Used to
990-EZ) for a section 501(c)(3) organization Annual Summary and Transmittal of U.S. report cash amounts in excess of $10,000
that is not a private foundation (and including Information Returns. that were received in a single transaction (or
an organization described in section 501(e),
9. Form 1099 Series in two or more related transactions) in the
501(f), or 501(k)). Also filed with Form 990 (or
course of a trade or business (as defined in
Form 990-EZ) for a section 4947(a)(1) Information returns for reporting payments section 162).
nonexempt charitable trust that is not treated such as dividends, interest, miscellaneous
as a private foundation. An organization is not However, if the organization receives a
income (including medical and health care
required to file Schedule A (Form 990) if its charitable cash contribution in excess of
payments and nonemployee compensation), $10,000, it is not subject to the reporting
gross receipts are normally $25,000 or less original issue discount, patronage dividends,
(see General Instruction C11). requirement since the funds were not
real estate transactions, acquisition or received in the course of a trade or business.
2. Forms W-2 and W-3 abandonment of secured property, and
distributions from annuities, pensions, and 19. Form 8822
Wage and Tax Statement, and Transmittal of profit-sharing and retirement plans.
Income and Tax Statements. Change of Address. Used to notify the IRS of
10. Form 1120-POL a change in mailing address that occurs after
3. Form 940 the return is filed.
U.S. Income Tax Return for Certain Political
Employer’s Annual Federal Unemployment Organizations. 20. Forms 8038, 8038-G, and 8038-GC
(FUTA) Tax Return.
11. Form 1128 Information Return for Tax-Exempt Private
4. Form 941 Activity Bond Issues; Information Return for
Application To Adopt, Change, or Retain a
Employer’s Quarterly Federal Tax Return. Tax-Exempt Governmental Obligations; and
Tax Year. Information Return for Small Tax-Exempt
Used to report social security, Medicare, and
income taxes withheld by an employer and 12. Form 2758 Governmental Bond Issues, Leases, and
social security and Medicare taxes paid by an Installment Sales, respectively.
Application for Extension of Time To File
employer. Certain Excise, Income, Information, and Publication 525
If income, social security, and Medicare Other Returns.
Taxable and Nontaxable Income.
taxes that must be withheld are not withheld
or are not paid to the IRS, a Trust Fund 13. Form 4506-A Publication 598
Recovery Penalty may apply. The penalty is Request for Public Inspection or Copy of Tax on Unrelated Business Income of Exempt
100% of such unpaid taxes. Exempt Organization Tax Form.
Organizations.
This penalty may be imposed on all 14. Form 4720
persons (including volunteers) whom the IRS Publication 910
determines to be responsible for collecting, Return of Certain Excise Taxes on Charities Guide to Free Tax Services.
accounting for, and paying over these taxes, and Other Persons Under Chapters 41 and 42
and who willfully did not do so. of the Internal Revenue Code. Section Publication 1391
501(c)(3) organizations that file Form 990 (or Deductibility of Payments Made to Charities
5. Form 990-T Form 990-EZ), as well as the managers of
Conducting Fund-Raising Events.
Exempt Organization Business Income Tax these organizations, use this form to report
their tax on political expenditures and certain These forms and publications are available
Return. Filed separately for organizations with
lobbying expenditures. free at many IRS offices or by calling
gross income of $1,000 or more from
1-800-TAX-FORM (1-800-829-3676).
business unrelated to the organization’s 15. Form 5500, 5500-C/R
exempt purpose; also filed to pay the section
Employers who maintain pension,
E. Use of Form 990 To Satisfy
6033(e)(2) proxy tax (see line 85 and its
instructions). profit-sharing, or other funded deferred State Reporting Requirements
compensation plans are generally required to Some states and local government units will
6. Form 990-W file one of the 5500 series forms specified accept a copy of Form 990 and Schedule A
Estimated Tax on Unrelated Business Taxable below. This requirement applies whether or (Form 990) in place of all or part of their own
Income for Tax-Exempt Organizations. not the plan is qualified under the Internal financial report forms. The substitution
Revenue Code and whether or not a applies primarily to section 501(c)(3)
7. Form 1041 deduction is claimed for the current tax year. organizations, but some of the other types of
U.S. Fiduciary Income Tax Return. Required Plans with 100 or more participants must section 501(c) organizations are also affected.
of section 4947(a)(1) nonexempt charitable file Form 5500, Annual Return/Report of If you use Form 990 to satisfy state or local
trusts that also file Form 990 (or Form Employee Benefit Plan. filing requirements, such as those under state
990-EZ). However, if such a trust does not Plans with fewer than 100 participants must charitable solicitation acts, note the following:
have any taxable income under Subtitle A of file Form 5500-C/R, Return/Report of
the Code, it can file Form 990 (or Form Determine state filing requirements
Employee Benefit Plan.
990-EZ) and need not file Form 1041 to meet You should consult the appropriate officials of
its section 6012 filing requirement. If this 16. Form 5768 all states and other jurisdictions in which the
condition is met, complete Form 990 and do Election/Revocation of Election by an Eligible organization does business to determine their
not file Form 1041. A section 4947(a)(1) Section 501(c)(3) Organization To Make specific filing requirements. “Doing business”
nonexempt charitable trust that normally has Expenditures To Influence Legislation. in a jurisdiction may include any of the
gross receipts of not more than $25,000 (see following: (a) soliciting contributions or grants
General Instruction C11) and has no taxable 17. Form 8282 by mail or otherwise from individuals,
income under Subtitle A must complete only Donee Information Return. Required of the businesses, or other charitable organizations;
the following items in the heading of Form donee of “charitable deduction property” who (b) conducting programs; (c) having
990: sells, exchanges, or otherwise disposes of the employees within that jurisdiction;
Item property within 2 years after receiving the (d) maintaining a checking account; or
property. (e) owning or renting property there.
A. Tax year (fiscal year or short period, if
applicable) Also, the form is required of any successor
donee who disposes of charitable deduction
Page 3
Monetary tests may differ with which it filed a copy of Form 990 4. The organization’s accounting year and
originally to meet that state’s filing the employee plan year are the same. If they
Some or all of the dollar limitations applicable
requirement. are not, you may want to change the
to Form 990 when filed with the IRS may not
apply when using Form 990 in place of state If a state requires the organization to file an organization’s accounting year, as explained
or local report forms. Examples of the IRS amended Form 990 to correct conflicts with in General Instruction G, so it will coincide
dollar limitations that do not meet some state Form 990 instructions, it must also file an with the plan year.
requirements are the $25,000 gross receipts amended return with the IRS. Allowable substitution areas
minimum that creates an obligation to file Method of accounting
with the IRS (see General Instruction C11) Whether an organization files Form 990 for a
and the $30,000 minimum for listing Most states require that all amounts be labor organization or for an employee benefit
professional fees in Part II of Schedule A reported based on the accrual method of plan, the areas of Form 990 for which other
(Form 990). accounting. (See also Specific Instructions, forms can be substituted are the same. These
item J.) areas are:
Additional information may be required ● Part I, lines 13 through 15 (but complete
Time for filing may differ
State or local filing requirements may require lines 16 through 21);
you to attach to Form 990 one or more of the The deadline for filing Form 990 with the IRS ● Part II; and
following: (a) additional financial statements, differs from the time for filing reports with
some states. ● Part IV (but complete lines 59, 66, and 74,
such as a complete analysis of functional columns (A) and (B)).
expenses or a statement of changes in Public inspection
financial position; (b) notes to financial If an organization substitutes Form LM-2 or
statements; (c) additional financial schedules; The Form 990 information made available for LM-3 for any of the Form 990 parts or line
(d) a report on the financial statements by an public inspection by the IRS may differ from items mentioned above, it must attach a
independent accountant; and (e) answers to that made available by the states. See the reconciliation sheet to show the relationship
additional questions and other information. Caution in the instructions for line 1d. between the amounts on the DOL forms and
Each jurisdiction may require the additional the amounts on Form 990. This is particularly
State registration number true of the relationship of disbursements
material to be presented on forms they
provide. The additional information does not Enter the applicable state or local jurisdiction shown on the DOL forms and the total
have to be submitted with the Form 990 filed registration or identification number in item E expenses on line 17, Part I, of Form 990. The
with the IRS. (in the heading of the return) for each organization must make this reconciliation
jurisdiction in which the organization files because the cash disbursements section of
Even if the Form 990 the organization files the DOL forms includes nonexpense items. If
Form 990 in place of the state or local form. If
with the IRS is accepted by the IRS as the organization substitutes Form LM-2, be
filing in several jurisdictions, prepare as many
complete, a copy of the same return filed with sure to complete its separate schedule of
copies as needed with item E blank. Then
a state will not fully satisfy that state’s filing expenses.
enter the applicable registration number on
requirement if required information is not
the copy to be filed with each jurisdiction.
provided, including any of the additional G. Accounting Period Covered
information discussed above, or if the state F. Other Forms as Partial
determines that the form was not completed Use the 1993 Form 990 to report on the 1993
by following the applicable Form 990 Substitutes for Form 990 calendar year accounting period. A calendar
instructions or supplemental state year accounting period begins on January 1
Except as provided below, the Internal
instructions. If so, the organization may be and ends on December 31.
Revenue Service will not accept any form as
asked to provide the missing information or to a substitute for one or more parts of Form If the organization has established a fiscal
submit an amended return. 990. year accounting period, use the 1993 Form
990 to report on the organization’s fiscal year
Use of audit guides may be required Labor organizations (section 501(c)(5)) that began in 1993 and ended 12 months
To ensure that all organizations report similar A labor organization that files Form LM-2, later. A fiscal year accounting period should
transactions uniformly, many states require Labor Organization Annual Report, or the normally coincide with the natural operating
that contributions, gifts, and grants on lines shorter Form LM-3, Labor Organization cycle of the organization. Be certain to
1a through 1d in Part I and functional Annual Report, with the U.S. Department of indicate in item A (in the heading of Form
expenses on lines 13, 14, and 15, and in Part Labor (DOL) can attach a copy of the 990) the date the organization’s fiscal year
II, be reported according to the AICPA completed DOL form to Form 990 to provide began in 1993 and the date the fiscal year
industry audit guide, Audits of Voluntary some of the information required by Form ended in 1994.
Health and Welfare Organizations (New York, 990. This substitution is not permitted if the When affiliated organizations authorize their
NY, AICPA, 1993), as supplemented by organization files a DOL report that central organization to file a group return for
Standards of Accounting and Financial consolidates its financial statements with them, the accounting period of the affiliated
Reporting for Voluntary Health and Welfare those of one or more separate subsidiary organizations and the central organization
Organizations (New York, NY, National Health organizations. must be the same. See General Instruction Q.
Council, Inc. (Washington, DC), 1988 3rd
Employee benefit plans (section 501(c)(9), Use the 1993 Form 990 to report on a short
edition), and by Accounting and Financial
(17), (18), or (20)) accounting period (less than 12 months) that
Reporting—A Guide for United Ways and
began in 1993 and ended November 30,
Not-for-Profit Human Service Organizations An employee benefit plan may be able to 1994, or earlier.
(Alexandria, VA, United Way Institute, 1989). substitute Form 5500 or Form 5500-C/R for
part of Form 990. The substitution can be If the organization changes its accounting
Donated services and facilities period, it must file a return on Form 990 for
made if the organization filing Form 990 and
Even though reporting donated services and the plan filing Form 5500 or 5500-C/R meet the short period resulting from the change.
facilities as items of revenue and expense is all the following tests: Write “Change of Accounting Period” at the
called for in certain circumstances by the top of this short-period return.
1. The Form 990 filer is organized under
three publications named above, many states section 501(c)(9), (17), (18), or (20); If the organization changed its accounting
and the IRS do not permit the inclusion of period within the 10-calendar-year period that
those amounts in Parts I and II of Form 990. 2. The Form 990 filer and Form 5500 filer includes the beginning of the short period,
The instructions for line 82 discuss the are identical for financial reporting purposes and it had a Form 990 filing requirement at
optional reporting of donated services and and have identical receipts, disbursements, any time during that 10-year period, it must
facilities in Parts III and VI. assets, liabilities, and equity accounts; also attach a Form 1128 to the short-period
3. The employee benefit plan does not return. See Rev. Proc. 85-58, 1985-2 C.B.
Amended returns include more than one section 501(c) 740.
If the organization submits supplemental organization, and the section 501(c)
information or files an amended Form 990 organization is not a part of more than one H. When and Where To File
with the IRS, it must also send a copy of the employee benefit plan; and File Form 990 by the 15th day of the 5th
information or amended return to any state month after the organization’s accounting

Page 4
period ends. If the regular due date falls on a box in the heading of the return, or, if the portions of an application relating to any
Saturday, Sunday, or legal holiday, file on the version of the form being used does not have trade secrets, etc., nor can the IRS disclose
next business day. A business day is any day such a box, write “Amended Return” at the the schedule of contributors required as an
that is not a Saturday, Sunday, or legal top of the return. attachment for line 1 of Forms 990 and
holiday. The organization may file an amended 990-EZ (section 6104).
Note: Because of delays in the printing and return at any time to change or add to the A request for inspection must be in writing
mailing of the 1993 Form 990 Packages, information reported on a previously filed and must include the name and address (city
some organizations may have difficulty in return for the same period. It must make the and state) of the organization that filed the
preparing their 1993 exempt organization amended return available for public inspection return or application. A request to inspect a
returns by the due date. Therefore, the filing for 3 years from the date of filing or 3 years return should indicate the type (number) of
due dates for Forms 990, 990-EZ, 990-T, and from the date the original return was due, the return and the year(s) involved. The
4720 have been extended to the LATER of whichever is later. request should be sent to the District Director
the 15th day of the 5th month after the end of Use Form 4506-A to obtain a copy of a (Attention: Disclosure Officer) of the district in
the organization’s tax year OR July 15, 1994. previously filed return. You can obtain blank which the requester desires to inspect the
If the forms are filed by the above dates, forms for prior years by calling return or application. If inspection at the IRS
the IRS will not assess penalties for failure to 1-800-TAX-FORM (1-800-829-3676). National Office is desired, the request should
file a tax return or to pay tax under section be sent to the Commissioner of Internal
If the return is a final return, see the
6651 or for failure to file certain information Revenue, Attention: Freedom of Information
specific instructions for line 79, Part VI, Other
returns under section 6652. However, the law Reading Room, 1111 Constitution Avenue,
Information.
does not permit the waiver of interest N.W., Washington, DC 20224.
applicable to the income tax liability reported K. Penalties Form 4506-A can be used to request a
on Form 990-T, and the excise taxes reported copy or to inspect an exempt organization
on Form 4720, which must be charged from Against the Organization return through the IRS. There is a fee for
the original due date until the taxes are paid Under section 6652(c), a penalty of $10 a photocopying.
(Announcement 94-37, 1994-11 I.R.B.). day, not to exceed the smaller of $5,000 or
5% of the gross receipts of the organization
Through the Organization
If the organization is liquidated, dissolved,
or terminated, file the return by the 15th day for the year, may be charged when a return is Annual return
of the 5th month after the liquidation, filed late, unless the organization can show
An organization must, during the 3-year
dissolution, or termination. that the late filing was due to reasonable
period beginning with the due date (including
If the return is not filed by the due date cause. The penalty begins on the due date
extensions, if any), of the Form 990 (or Form
(including any extension granted), attach a for filing the Form 990. The penalty may also
990-EZ), make its return available for public
statement giving the reasons for not filing on be charged if the organization files an
inspection upon request. All parts of the
time. incomplete return or furnishes incorrect
return and all required schedules and
information. To avoid having to supply
If the principal office Send the return to attachments, other than the schedule of
missing information later, be sure to complete
is located in: the Internal Revenue contributors to the organization, must be
Service all applicable line items; answer “Yes,” “No,”
made available. Inspection must be permitted
Center below: or “N/A” (not applicable) to each question on
during regular business hours at the
Ä Ä the return; make an entry (including a zero
organization’s principal office and at each of
when appropriate) on all total lines; and enter
Alabama, Arkansas, Florida, its regional or district offices having three or
Georgia, Louisiana, “None” or “N/A” if an entire part does not
Atlanta, GA 39901 more employees.
Mississippi, North Carolina, apply.
South Carolina, Tennessee This provision applies to any organization
Against Responsible Person(s) that files Form 990 (or Form 990-EZ),
Arizona, Colorado, Kansas,
If the organization does not file a complete regardless of the size of the organization and
New Mexico, Oklahoma, Austin, TX 73301
Texas, Utah, Wyoming return or does not furnish correct information, whether or not it has any paid employees.
the IRS will send the organization a letter that If an organization furnishes additional
Indiana, Kentucky, Michigan,
Ohio, West Virginia
Cincinnati, OH 45999 includes a fixed time to fulfill these information to the IRS to be made part of its
requirements. After that period expires, the return, as a result of an examination or
Alaska, California, Hawaii, person failing to comply will be charged a correspondence from the service center
Idaho, Nevada, Oregon, Fresno, CA 93888
Washington
penalty of $10 a day, not to exceed $5,000, processing the return, it must also make that
unless he or she shows that not complying information part of the return it provides for
Connecticut, Maine, was due to reasonable cause. If more than public inspection.
Massachusetts, New one person is responsible, they are jointly and
Holtsville, NY 00501 If the organization does not maintain a
Hampshire, New York, Rhode
Island, Vermont individually liable for the penalty. permanent office, it must provide a
There are also penalties—fines and reasonable location for a requester to inspect
Illinois, Iowa, Minnesota,
Missouri, Montana, Nebraska, imprisonment—for willfully not filing returns the organization’s annual returns. The
Kansas City, MO 64999 and for filing fraudulent returns and organization may mail the information to a
North Dakota, South Dakota,
Wisconsin statements with the IRS (sections 7203, 7206, requester. However, the organization can
and 7207). There are also penalties for failure charge for copying and postage only if the
Delaware, Maryland, New
Jersey, Pennsylvania, Virginia, to comply with public disclosure requirements requester gives up the right to a free
Philadelphia, PA 19255 as discussed in General Instruction L. States inspection (Notice 88-120, 1988-2 C.B. 454).
District of Columbia, any U.S.
possession, or foreign country may impose additional penalties for failure to Any person who does not comply with the
meet their separate filing requirements. public inspection requirement will be
I. Extension of Time To File L. Public Inspection of assessed a penalty of $10 for each day that
Use Form 2758 to request an extension of inspection was not permitted, up to a
time to file.
Completed Exempt maximum of $5,000 for each return. No
Organization Returns and penalty will be imposed if the failure is due to
J. Amended Return/Final Approved Exemption reasonable cause. Any person who willfully
fails to comply will be subject to an additional
Return Applications penalty of $1,000 (sections 6652(c) and
To change the organization’s return for any 6685).
year, file a new return including any required Through the IRS
attachments. Use the revision of Form 990 Exemption application
Forms 990, 990-EZ, and certain other
applicable to the year being amended. The completed exempt organization returns are Any section 501(c) organization that
amended return must provide all the available for public inspection and copying submitted an application for recognition of
information called for by the form and upon request. Approved applications for exemption to the Internal Revenue Service
instructions, not just the new or corrected exemption from Federal income tax are also after July 15, 1987, must make available for
information. Check the “Amended Return” available. However, the IRS may not disclose public inspection a copy of its application
Page 5
(together with a copy of any papers O. Disclosures Regarding ruling. In item I, indicate the group exemption
submitted in support of its application) and number (GEN). When preparing the return, be
any letter or other document issued by the
Certain Transactions and sure not to confuse the four-digit group
Internal Revenue Service in response to the Relationships exemption number (GEN) in item I with the
application. An organization that submitted its In their annual returns on Schedule A (Form nine-digit employer identification number in
exemption application on or before July 15, 990), section 501(c)(3) organizations must item D of the form’s heading.
1987, must also comply with this requirement disclose information regarding their direct or An affiliated organization covered by a
if it had a copy of its application on July 15, indirect transfers to, and other direct or group ruling may file a separate return instead
1987. As in the case of annual returns, the indirect relationships with, other section of being included in the group return. In such
copy of the application and related 501(c) organizations (except other section case, check the “Yes” box in item H(c), in the
documents must be made available for 501(c)(3) organizations) or section 527 heading of Form 990, and enter the group
inspection during regular business hours at political organizations. This provision helps exemption number in item I.
the organization’s principal office and at each prevent the diversion or expenditure of a
of its regional or district offices having at section 501(c)(3) organization’s funds for R. Organizations in Foreign
least three employees. purposes not intended by section 501(c)(3). Countries and U.S.
If the organization does not have a All section 501(c)(3) organizations must Possessions
permanent office, it must provide a maintain records regarding all such transfers,
reasonable location for the inspection of both transactions, and relationships. See General Refer to General Instruction C12 for filing
its annual returns and exemption application. Instruction K, Penalties. exemption for organizations with $25,000 or
The information may be mailed. See the less in gross receipts from U.S. sources.
reference to Notice 88-120 above under P. Erroneous Backup Report amounts in U.S. dollars and state
Annual return. The organization need not Withholding what conversion rate you use. Combine
disclose any portion of an application relating amounts from within and outside the United
to trade secrets, etc., that would not also be Recipients of dividend or interest payments
generally must certify their correct taxpayer States and report the total for each item. All
disclosable by the IRS. information must be written in English.
identification number to the bank or other
The penalties for failure to comply with this payer on Form W-9, Request for Taxpayer
provision are the same as those under S. Substantiation, Disclosure,
Identification Number and Certification. If the
Annual return above, except that the $5,000 payer does not get this information, it must and Lobbying Requirements of
limitation does not apply. withhold part of the payments as “backup the Revenue Reconciliation Act
withholding.” If the organization was subject of 1993
M. Solicitations of to erroneous backup withholding because the
Nondeductible Contributions payer did not realize it was an exempt The following provisions were enacted by the
Any fundraising solicitation by or on behalf of organization and not subject to this Revenue Reconciliation Act of 1993 and are
any section 501(c) organization that is not withholding, it can claim credit on Form 990-T effective on or after January 1, 1994.
eligible to receive contributions deductible as for the amount withheld. See the Instructions 1. Substantiation requirements for certain
charitable contributions for Federal income for Form 990-T. Claims for refund must be contributions.—A donor that makes a
tax purposes must include an explicit filed within 3 years after the date the original charitable contribution of $250 or more will
statement that contributions or gifts to it are return was due; 3 years after the date the not be allowed a Federal income tax
not deductible as charitable contributions. organization filed it; or 2 years after the date deduction under section 170 unless the donor
The statement must be in an easily the tax was paid, whichever is later. obtains, contemporaneously with giving the
recognizable format whether the solicitation is charitable contribution, a written
made in written or printed form, by television
Q. Group Return acknowledgment (receipt) from the donee
or radio, or by telephone. This provision A central, parent, or “like” organization can organization (section 170(f)(8)). Taxpayers
applies only to those organizations whose file a group return on Form 990 for two or (donors) may not rely solely on a cancelled
annual gross receipts are normally more than more local organizations that are: check as substantiation for a donation of
$100,000 (section 6113). 1. Affiliated with the central organization at $250 or more to a donee organization.
Failure to disclose that contributions are the time its annual accounting period ends, The acknowledgment the donee gives to
not deductible could result in a penalty of 2. Subject to the central organization’s the donor does not have to be in any
$1,000 for each day on which a failure general supervision or control, particular form but it must show (a) the
occurs. The maximum penalty for failures by amount of cash contributed and (b) a
3. Exempt from tax under a group description (but not value) of any property
any organization, during any calendar year,
exemption letter that is still in effect, and contributed, other than cash. Further, the
shall not exceed $10,000. In cases where the
failure to make the disclosure is due to 4. Have the same accounting period as the acknowledgment must (c) describe and show
intentional disregard of the law, the $10,000 central organization. the value, estimated in good faith by the
limitation does not apply and more severe If the parent organization is required to file donee, of any goods or services the donee
penalties apply. No penalty will be imposed if a return for itself, it must file a separate return gave in return for the contribution. If the
the failure is due to reasonable cause. and may not be included in the group return. donor did not receive any goods or services
See General Instruction C for a list of from the donee organization in return for its
N. Disclosures Regarding organizations not required to file. contribution, the donee’s written
Certain Information and acknowledgment must state that fact.
Every year, each local organization must
Services Furnished authorize the central organization in writing to The donee organization may give the donor
include it in the group return and must estimated valuations of goods or services
A section 501(c) organization that offers to provided in return for each separate donation
declare, under penalty of perjury, that the
sell or solicits money for specific information or may furnish them periodically (e.g.,
authorization and the information it submits to
or a routine service for any individual that annually). A false substantiation
be included in the group return are true and
could be obtained by such individual from a acknowledgment may subject the donee
complete.
Federal government agency free or for a organization to section 6701 penalties for
nominal charge must disclose that fact If the central organization prepares a group
aiding and abetting an understatement of tax
conspicuously when making such offer or return for its affiliated organizations, check
liability.
solicitation. Any organization that intentionally the “Yes” box in item H(a), in the heading of
Form 990, and indicate the number of If the donee organization provided goods or
disregards this requirement will be subject to
organizations for which the group return is services consisting solely of intangible
a penalty for each day on which the offers or
filed in item H(b). Attach either (1) a schedule religious benefits, the donee must make a
solicitations are made. The penalty imposed
showing the name, address, and employer statement to that effect instead of providing
for a particular day is the greater of $1,000 or
identification number (EIN) of each affiliated an estimated valuation.
50% of the total cost of the offers and
solicitations made on that day which lacked organization included, or (2) a statement An “intangible religious benefit” must be (a)
the required disclosure. indicating that the group return includes all provided by an organization organized
affiliated organizations covered by the group
Page 6
exclusively for religious purposes and (b) not assessments imposed by the organization to contributor conducted such lobbying and
generally sold in a commercial transaction. conduct lobbying and political activities. If the political activities directly (section 170(f)(9)).
An acknowledgment is considered to be amount of lobbying and political expenses Transitional rule for dues assessed or
“contemporaneous” with a donor’s exceed the amount of dues, etc., for the year, received before 1994.—The general rule that
contribution if it is obtained by the earlier of the full amount of dues, etc., is considered organizations must give their members written
the date on which the donor files a tax return allocable to the lobbying and political notification of the amount of their dues
for the tax year in which the contribution was expenses. Any excess lobbying and political estimated to be allocable to lobbying and
made or the due date, including extensions, expenses are carried forward to the next tax political expenses applies to dues assessed
for filing that return. year. or received before 1994, to the extent the
Until regulations are issued, it is the Because this provision focuses on lobbying dues are allocable to lobbying and political
responsibility of the donor to obtain, and and political expenditures made after 1993, expenses paid or incurred by the
keep as part of its records, a written the reporting requirement discussed above organizations after 1993. In regard to these
acknowledgment substantiating its and the potential tax liability discussed below dues, an organization may choose to either:
contribution. However, future regulations will apply only to organizations filing Form 990 for 1. Give its members the required notice at the
provide guidance to organizations on how fiscal or calendar years ending after time the dues are assessed or paid;
they can provide substantiation information December 31, 1993. They do not apply to any
organization filing Form 990 for calendar year 2. Pay the proxy tax discussed above on the
directly to the IRS. If they do so, donors will amount of dues actually allocable to lobbying
not have to substantiate their contributions 1993.
and political expenses; or
separately. Members of an organization cannot take
either a section 170 charitable deduction or a 3. Increase its reasonable estimate of dues
Donors must continue to file Form 8283, allocable to lobbying and political expenses
Noncash Charitable Contributions, if their section 162 business expense deduction for
the portion of their dues payment, etc., that is for the following tax year by the total amount
deduction for all noncash gifts is more than of dues actually allocable to lobbying and
$500. shown on the written estimate given to them
as being allocable to the organization’s political expenses paid or incurred during the
2. Disclosure requirements for quid pro lobbying and political expenses. tax year.
quo contributions.—If a charitable For details, see Notice 93-55, 1993-35
organization solicits or receives a contribution Disclosing the portion of dues, etc.,
allocable to lobbying and political expenses is I.R.B. 21 and Announcement 94-8, 1994-3
of more than $75 for which the organization I.R.B. 32.
gives the donor something in return (a quid not required for an organization that (a) incurs
only de minimis amounts of in-house lobbying
pro quo contribution) the organization must
inform the donor, by written statement, that expenses (not more than $2,000); (b) elects, Specific Instructions
the amount of the contribution deductible for instead of giving its members a written notice Completing the Heading of Form 990
Federal income tax purposes is limited to the of allocation of lobbying and political
expenses, to pay a proxy tax on those The instructions that follow are keyed to
excess over the value of the goods or items in the heading for Form 990.
services received by the donor. lobbying and political expenses incurred
during the tax year; or (c) establishes, Item A—Accounting period
The written statement must also provide
pursuant to Treasury regulation (or other
the donor with a good-faith estimate of goods Use the 1993 Form 990 to report on a
procedure), that substantially all of its dues or
or services given in return for the calendar year accounting period beginning
similar amounts are not deductible by the
contribution. A written statement is not January 1, 1993, and ending December 31,
persons paying them in computing their
required if an organization gave the donor 1993.
taxable income.
goods or services of de minimis value. (See Also, use the 1993 Form 990 to report on
the introduction to line 1 instructions that If the organization elects not to give its
members an estimate of anticipated lobbying an accounting period other than a calendar
discusses benefits of nominal value.) year (either a fiscal year that began in 1993 or
and political expenses allocable to dues, etc.,
A “quid pro quo contribution” is a payment a short period (less than 12 months) that
then the organization is subject to a proxy tax
that is given both as a contribution and as a began in 1993). You must show the month
on its total lobbying and political expenses for
payment for goods or services provided by and day in 1993 that your fiscal year began
that year. The proxy tax is equal to the
the donee organization. A quid pro quo or the short period began. You must also
amount subject to the tax, multiplied by the
contribution does not include any payment to show the day, month, and year your fiscal
highest corporate rate in effect for the tax
an organization, organized exclusively for year or short period ended. See General
year. It is payable on the Form 990-T.
religious purposes, solely for intangible Instruction G.
religious benefits not generally sold in a If the organization’s actual lobbying and
commercial transaction (section 6115). political expenses for the year exceed its Item B—Checkboxes for:
estimated allocable amounts of such Initial return.—If this is the organization’s
An organization that fails to make the expenses, the organization must pay a proxy
required disclosure for each quid pro quo initial return, check this box.
tax on the excess. The IRS may permit a
contribution will incur a penalty of $10 for waiver of this tax if the organization agrees to Final return.—If this is a final return, check
each such failure, not to exceed $5,000 for a adjust its notice of lobbying and political this box. See also the instructions for line 79,
particular fundraising event or mailing, unless Part VI, Other Information.
expenses to members in the following year.
it can show reasonable cause for not Amended return.—If this is an amended
providing such disclosure (section 6714). If an organization elects to pay the proxy
tax rather than to provide its members with return, check this box. See General
3. Special rules relating to lobbying and an estimate of dues allocable to lobbying and Instruction J for more details on amending a
political activities.—Tax-exempt political expenses, all of the members’ dues return.
organizations, other than section 501(c)(3) remain eligible for deduction to the extent Change of address.—If the organization
organizations, must report their total lobbying, changed its address since it filed its previous
otherwise deductible. See sections 162(e) and
political expenses, and membership dues, or 6033(e). return, check this box.
similar amounts, on their Form 990. At the
time of assessment or payment of these As stated above, section 501(c)(3) Item C—Name and address
dues, etc., these organizations generally must organizations are not subject to the lobbying
and political expense disclosure If we mailed the organization a Form 990
give their members a written estimate Package with a preaddressed mailing label,
showing the allocation of membership dues, requirements. However, a contributor to a
charity that engages in lobbying and political please attach the label in the name and
etc., to the organization’s lobbying and address space on the return. Using the label
political expenses. activities cannot take a section 170 or 162
deduction for a contribution if (a) the charity’s helps us avoid errors in processing the return.
The term “dues” means the amount the lobbying and political activities are on matters If any information on the label is wrong, draw
organization requires a member to pay in of direct financial interest to the contributor’s a line through that part and correct it.
order to be recognized by the organization as trade or business and (b) a principal purpose Include the suite, room, or other unit
a member. Payments that are similar to dues number after the street address. If the Post
of the contribution is to avoid the general
include members’ voluntary payments, disallowance rule that would apply if the Office does not deliver mail to the street
assessments made by the organization to address and the organization has a P.O. box,
cover basic operating costs, and special
Page 7
show the box number instead of the street reporting purposes if the state reporting Assembling Form 990
address. requirement does not conflict with the Form
Before filing the Form 990, assemble the
990 instructions.
Item D—Employer identification number package of forms and attachments in the
An organization should keep a following order:
The organization should have only one reconciliation of any differences between its
Federal employer identification number. If it ● Form 990
books of account and the Form 990 that is
has more than one and has not been advised filed. ● Schedule A (Form 990). (The requirement to
which to use, notify the service center for the attach Schedule A (Form 990) applies to ALL
organization’s area (from the list in General Most states that accept Form 990 in place
section 501(c)(3) organizations and ALL
Instruction H). State what numbers the of their own forms require that all amounts be
section 4947(a)(1) nonexempt charitable
organization has, the name and address to reported based on the accrual method of
trusts.)
which each number was assigned, and the accounting. See General Instruction E.
● Attachments to Form 990
address of its principal office. The IRS will Item K—Gross receipts of $25,000 or less
advise the organization which number to use. ● Attachments to Schedule A (Form 990)
Check this box if the organization’s gross
Section 501(c)(9) voluntary employees’ receipts are normally not more than $25,000. Attachments
beneficiary associations must use their own However, see General Instructions A5 and Use the schedules on the official form unless
employer identification number and not the C11. you need more space. If you use
number of their sponsor.
attachments, they must:
Public Inspection
Item E—State registration number 1. Show the form number and tax year;
All information the organization reports on or
See General Instruction E. with its Form 990, including attachments, will 2. Show the organization’s name and
be available for public inspection, except the employer identification number;
Item F—Application pending
schedule of contributors required for line 1d, 3. Clearly identify the Part or line(s) to
If the organization’s application for exemption Part I. Please make sure the forms and which the attachments relate;
is pending, check this box and complete the attachments are clear enough to photocopy
return. 4. Include the information required by the
legibly. form and use the same format as the form;
Item G—Type of organization 5. Follow the same Part and line sequence
Signature
If the organization is exempt under section as the form; and
To make the return complete, an officer
501(c), check the applicable box and insert, 6. Be on the same size paper as the form.
authorized to sign it must sign in the space
within the parentheses, the number that
provided. For a corporation, this officer may Part I—Statement of Revenue,
identifies the type of section 501(c)
be the president, vice president, treasurer,
organization the filer is. See the chart in Expenses, and Changes in Net
assistant treasurer, chief accounting officer,
General Instruction B. If the organization is a
section 4947(a)(1) nonexempt charitable trust,
or other corporate officer, such as a tax Assets or Fund Balances
officer. A receiver, trustee, or assignee must
check the applicable box, complete question All organizations filing Form 990 with the IRS
sign any return he or she files for a
92 of Form 990, and see General Instructions or any state must complete Part I. Some
corporation. For a trust, the authorized
D1 and D7. states that accept Form 990 in place of their
trustee(s) must sign.
own forms require additional information.
Item H—Group return, etc. Generally, anyone who is paid to prepare
See General Instruction Q. the return must sign it in the Paid Preparer’s Line 1—In General
Use Only area.
Item I—Group exemption number Contributions, gifts, grants, and
The paid preparer must: similar amounts received
Enter the four-digit group exemption number ● Sign the return, by hand, in the space
(GEN) if you checked a “Yes” box in item H. On lines 1a through 1c, report amounts
provided for the preparer’s signature
Contact the central/parent organization if you received as voluntary contributions; that is,
(signature stamps and labels are not
are unsure of the GEN assigned. payments, or the part of any payment, for
acceptable).
which the payer (donor) does not receive full
Item J—Accounting method ● Enter the preparer’s social security number retail value (fair market value) from the
Indicate the method of accounting used in or employer identification number if the Form recipient (donee) organization. (For grants,
preparing this return. Unless instructed 990 is for a section 4947(a)(1) nonexempt see Grants that are equivalent to
otherwise, the organization should generally charitable trust that is not filing Form 1041. contributions, below.) Report all expenses of
use the same accounting method on the ● Complete the required preparer information. raising contributions in Fundraising, column
return to figure revenue and expenses that it ● Give a copy of the return to the (D), Part II, and on line 15 of Part I.
regularly uses to keep its books and records. organization. Contributions can arise from special
To be acceptable for Form 990 reporting events when an excess payment is
Leave the paid preparer’s space blank if
purposes, however, the method of accounting received for items offered
the return was prepared by a regular
used must clearly reflect income.
employee of the filing organization. Special fundraising activities such as dinners,
If the organization prepares Form 990 for
Rounding Off to Whole Dollars door-to-door sales of merchandise, carnivals,
state reporting purposes, it may file an
and bingo games can produce both
identical return with the IRS even though the You may show money items as whole-dollar contributions and revenue. If a buyer, at such
return does not agree with the books of amounts. Drop any amount less than 50 an event, pays more for goods or services
account, unless the way one or more items cents and increase any amount from 50 than their retail value, report, as a
are reported on the state return conflicts with through 99 cents to the next higher dollar. contribution both on line 1a and on line 9a
the instructions for preparing Form 990 for
Completing All Lines (within the parentheses) any amount paid in
filing with the IRS.
excess of the retail value. This usually occurs
Example 1. The organization maintains its Unless the organization is permitted to use when organizations seek public support
books on the cash receipts and certain DOL forms or Form 5500 series through solicitation programs that are both
disbursements method of accounting but returns as partial substitutes for Form 990 special events or activities and solicitations
prepares a state return based on the accrual (see General Instruction F), do not leave any for contributions.
method. It could use that return for reporting applicable lines blank or attach any other Example. An organization announces that
to the IRS. forms or schedules instead of entering the anyone who contributes at least $40 to the
Example 2. A state reporting requirement required information on the appropriate line organization can choose to receive a book
requires the organization to report certain on Form 990. worth $16 retail value. A person who gives
revenue, expense, or balance sheet items $40, and who chooses the book, is really
differently from the way it normally accounts purchasing the book for $16 and also making
for them on its books. A Form 990 prepared a contribution of $24. The contribution of $24,
for that state is acceptable for the IRS which is the difference between the buyer’s
Page 8
payment and the $16 retail value of the book, to provide these benefits, report the stocks and bonds. When market value cannot
would be reported on line 1a and again on payments on line 2 as program service be readily determined, use an appraised or
the description line of 9a (within the revenue, rather than on line 1 as estimated value.
parentheses). The revenue received ($16 retail contributions. To determine the amount of any noncash
value of the book) would be reported in the contribution that is subject to an outstanding
Donations of services are not contributions
amount column on line 9a. debt, subtract the debt from the property’s
If a contributor gives more than $40, that In Part I, do not include the value of services fair market value. Record the asset at its full
person would be making a larger contribution, donated to the organization, or items such as value and record the debt as a liability in the
the difference between the book’s retail value the free use of materials, equipment, or books of account. See the Note in the
of $16 and the amount actually given. Rev. facilities as contributions on line 1. See the instructions for line 1d.
Rul. 67-246, 1967-2 C.B. 104, explains this instructions for Part III and for Part VI, line 82,
principle in detail. See also the line 9 for the optional reporting of such amounts in Line 1a—Direct public support
instructions and Publication 1391. Parts III and VI. Contributions, gifts, grants, and similar
The expenses directly relating to the sale of Grants that are equivalent to contributions amounts received.—Enter the gross
the book would be reported on line 9b. amounts of contributions, gifts, grants, and
Grants that encourage an organization bequests that the organization received
However, the expenses of raising
receiving the grant to carry on programs or directly from the public. Include amounts
contributions (that were entered within the activities that further its exempt purposes are
parentheses of line 9a and on line 1a) would received from individuals, trusts, corporations,
grants that are equivalent to contributions. estates, and foundations. Also include
be reported in Fundraising, column (D), Part Report them on line 1. The grantor may
II, and on line 15 of Part I. contributions and grants from public charities
require that the programs of the grant and other exempt organizations that are
Note: At the time of any solicitation or recipient (grantee) conform to the grantor’s neither fundraising organizations nor affiliates
payment, organizations that are eligible to own policies and may specify the use of the of the filing organization. See the instructions
receive tax-deductible contributions should grant, such as use for the restoration of a for line 1b.
advise patrons of the amount deductible for historic building or a voter registration drive.
Federal tax purposes. See Items To Note and Membership dues.—Report on line 1a
A grant is still equivalent to a contribution if membership dues and assessments that
General Instruction S.
the grant recipient provides a service or represent contributions from the public rather
Contributions can arise from special makes a product that benefits the grantor than payments for benefits received or
events when items of only nominal value incidentally. (See examples in the line 1c payments from affiliated organizations. See
are given or offered instructions.) However, a grant is a payment the instructions for line 3.
for services, and not a contribution, if the
If an organization offers goods or services of Government contributions (grants).—Report
grant requires the grant recipient to provide
only nominal value through a special event or that grantor with a specific service, facility, or government grants on line 1c if they represent
distributes free, unordered, low-cost items to product rather than to give a direct benefit contributions, or on line 2 (and on line 93(g)
patrons, report the entire amount received for primarily to the general public or to that part of Part VII), if they represent fees for services.
such benefits as a contribution on line 1a of the public served by the organization. In See the instructions for Grants that are
(direct public support). Report all related equivalent to contributions under Line 1—In
general, do not report as contributions any
expenses in Fundraising, column (D), Part II. General, and line 1c.
payments for a service, facility, or product
Benefits have a nominal value when: Commercial co-venture.—Report amounts
that primarily give some economic or physical
a. The benefit’s fair market value is not benefit to the payer (grantor). contributed by a commercial co-venture on
more than 2% of the payment, or $62, line 1a as a contribution received directly
Example. A public interest organization
whichever is less; or from the public. These are amounts received
described in section 501(c)(4) makes a grant
b. The payment is $31 or more; the only to another organization to conduct a by an organization (donee) for allowing an
benefits received are token items bearing the nationwide survey to determine voter outside organization (donor) to use the
organization’s name or symbol; and the attitudes on issues of interest to the grantor. donee’s name in a sales promotion campaign.
organization’s cost (as opposed to fair market The grantor plans to use the results of the In such a campaign, the donor advertises that
value) is $6.20 or less for all benefits received survey to plan its own program for the next 3 it will contribute a certain dollar amount to the
by a donor during the calendar year. These years. Under these circumstances, since the donee organization for each unit of a
amounts are adjusted annually for inflation. survey serves the grantor’s direct needs and particular product or service sold or for each
See Rev. Proc. 92-49, 1992-1 C.B. 987 and benefits the grantor more than incidentally, occurrence of a specific type.
Rev. Proc. 92-102, 1992-2 C.B. 579. the grant to the organization making the Contributions received through special
survey is not a contribution. The grant events.—Report contributions received
Section 501(c)(3) organizations
recipient should not report the grant as a through special events on line 1a. See the
Correctly dividing gross receipts from special contribution but should report it on line 2 as line 1 instructions above and the instructions
events into revenue and contributions is program service revenue. for line 9.
especially important for a section 501(c)(3)
Treat research to develop products for the Line 1b—Indirect public support
organization that claims public support as payer’s use or benefit as directly serving the
described in section 170(b)(1)(A)(vi) or payer. However, generally, basic research or Enter the total contributions received
509(a)(2). In the public support computations indirectly from the public through solicitation
studies in the physical or social sciences
of these Code sections, the revenue portion should not be treated as serving the payer’s campaigns conducted by federated
of gross receipts may be (a) excluded fundraising agencies and similar fundraising
needs.
entirely, (b) treated as public support, or (c) if organizations (such as a United Way
the revenue represents unrelated trade or See Regulations section 1.509(a)–3(g) to organization and certain sectarian
business income, treated as nonpublic determine if a grant is a contribution federations). These organizations normally
support. reportable on line 1 or a revenue item conduct fundraising campaigns within a
reportable elsewhere on Form 990. single metropolitan area or some part of a
Section 501(c)(3) organizations must
separate gross receipts from special events Noncash contributions particular state and allocate part of the net
into revenue and contributions when proceeds to each participating organization
To report contributions received in a form on the basis of the donors’ individual
preparing the Support Schedule in Part IV of
other than cash, use the market value as of designations and other factors.
Schedule A (Form 990). the date of the contribution. For marketable
securities registered and listed on a Include on line 1b amounts contributed by
Section 501(c)(9), (17), (18), and (20)
recognized securities exchange, measure other organizations closely associated with
organizations
market value by the average of the highest the reporting organization. This includes
These organizations provide life, sickness, and lowest quoted selling prices (or the contributions received from a parent
accident, welfare, unemployment, pension, organization, subordinate, or another
average between the bona fide bid and asked
group legal services, or similar benefits or a prices) on the contribution date. See section organization with the same parent. National
combination of these benefits to participants. organizations that share in fundraising
20.2031-1 of the Estate Tax Regulations for
When such an organization receives rules to determine the value of contributed campaigns conducted by their local affiliates
payments from participants or their employers
Page 9
should report the amount they receive on line If an employer withholds contributions from Lines 2 through 11
1b. employees’ pay and periodically gives them
Note: Do not enter any contributions on lines
to the organization, report only the employer’s
Line 1c—Government contributions (grants) 2 through 11. Enter all contributions on line 1.
name and address and the total amount
If you enter contributions on lines 2 through
The general line 1 instructions, under the given unless you know that a particular
11, you will be unable to complete Part VII
heading, Grants that are equivalent to employee gave enough to be listed
correctly. The sum of amounts entered in
contributions, apply to this item in particular. separately.
columns (B), (D), and (E) for lines 93 through
A grant or other payment from a In determining whether a contributor gave 103 of Part VII, Analysis of Income-Producing
governmental unit is treated as a contribution $5,000 or more, total that person’s gifts of Activities, should match amounts entered for
if its primary purpose is to enable the donee $1,000 or more. Do not include smaller gifts. correlating lines 2 through 11 of Part I. See
to provide a service to, or maintain a facility If the contribution consists of property whose the instructions for Part VII.
for, the direct benefit of the public rather than fair market value can be determined readily
to serve the direct and immediate needs of (such as market quotations for securities), Line 2—Program service revenue including
the grantor even if the public pays part of the describe the property and list its fair market government fees and contracts
expense of providing the service or facility. value. Otherwise, describe the property and Enter the total of program service revenue
The following are examples of estimate its value. See the Note below. (exempt function income) as reported in Part
governmental grants and other payments that If an organization meets either Exception 1 VII, lines 93(a) through (g), columns (B), (D),
are treated as contributions: or 2 below, some information in its schedule and (E). Program services are primarily those
1. Payments by a governmental unit for the will vary from that described above. that form the basis of an organization’s
construction or maintenance of library or exemption from tax. For a more detailed
hospital facilities open to the public, Exception 1: description of program services, refer to Part
2. Payments under government programs An organization described in section 501(c)(3) II, column (B), Program services.
to nursing homes or homes for the aged in that meets the 331⁄3% support test of the Examples. A hospital would report on this
order to provide health care or other services Regulations under section 170(b)(1)(A)(vi) line all of its charges for medical services
to their residents, (whether or not the organization is otherwise (whether to be paid directly by the patients or
described in section 170(b)(1)(A)). through Medicare, Medicaid, or other
3. Payments to child placement or child
guidance organizations under government The schedule should give the above third-party reimbursement), hospital parking
programs serving children in the community. information only for contributors whose gifts lot fees, room charges, laboratory fees for
The general public gets the primary and of $5,000 or over are more than 2% of the hospital patients, and related charges for
direct benefit from these payments and any amount reported on line 1d that the services, drugs and medical supplies.
benefit to the governmental unit itself would organization received during the year. Program service revenue includes income
be indirect and insubstantial as compared to Exception 2: earned by the organization for providing a
the public benefit. government agency with a service, facility, or
An organization described in section 501(c)(7), product that benefited that government
Line 1d—Total contributions, etc. (8), or (10) that received contributions or agency directly rather than benefiting the
Enter the total of amounts reported on lines bequests for use only as described in section public as a whole. See the line 1c instructions
1a through 1c. In the entry spaces in the 170(c)(4), 2055(a)(3), or 2522(a)(3). for reporting guidelines when payments are
description column for line 1d, enter the The schedule should list each person received from a government agency for
separate totals for cash and noncash whose gifts total more than $1,000 during the providing a service, facility, or product for the
contributions, gifts, grants, and similar year. Give the donor’s name, the amount primary benefit of the general public.
amounts received. The total of the two given, the gift’s specific purpose, and the Program service revenue also includes:
amounts must equal the total on line 1d. specific use to which it was put. If an amount tuition received by a school; revenue from
Report as cash contributions, etc., only is set aside for a purpose described in admissions to a concert or other performing
contributions, etc., received in the form of section 170(c)(4), 2055(a)(3), or 2522(a)(3), arts event or to a museum; royalties received
cash, checks, money orders, credit card explain how the amount is held; e.g., whether as author of an educational publication
charges, wire transfers and other transfers it is mingled with amounts held for other distributed by a commercial publisher;
and deposits to a cash account of the purposes. If the organization transferred the interest income on loans a credit union
organization. If your organization records gift to another organization, name and makes to its members; payments received by
pledges as contributions, etc., at the time the describe the recipient and explain the a section 501(c)(9) organization from
pledges are made (rather than when the relationship between the two organizations. participants, or employers of participants, for
pledges are collected), include as cash Also show the total gifts that were $1,000 or health and welfare benefits coverage;
contributions, etc., only those pledges less and were for a purpose described in insurance premiums received by a fraternal
actually collected in cash during the year and section 170(c)(4), 2055(a)(3), or 2522(a)(3). beneficiary society; and registration fees
pledges uncollected at the end of the year Note: If the organization qualifies to receive received in connection with a meeting or
that are reasonably expected to be paid in tax-deductible charitable contributions and it convention.
cash in a later year. Report all other receives contributions of property (other than Program-related investments.—Program
contributions, etc., as noncash contributions, publicly traded securities) whose fair market service revenue also includes income from
etc., in the space provided. value is more than $5,000, the organization program-related investments. These
Noncash contributions, etc., from persons should receive a partially completed Form investments are made primarily to accomplish
required to be listed in the schedule of 8283 from the contributor. Complete the an exempt purpose of the investing
contributors (see following instructions) must appropriate information on Form 8283, sign it, organization rather than to produce income.
be described fully. and return it to the donor. The organization Examples are scholarship loans and low
should keep a copy for its records. See also interest loans to charitable organizations,
Schedule of contributors (not open to
the reference to Form 8282 in General indigents, or victims of a disaster. Rental
public inspection). See the Caution below.
Instruction D17. income from an exempt function is another
Attach a schedule listing each contributor
who gave the organization, directly or Caution: If the organization files a copy of example.
indirectly, money, securities, or other property Form 990 and attachments with any state, do When an organization rents to an
worth $5,000 or more during the year. If no not include in the attachments for the state unaffiliated exempt organization at less than
one contributed $5,000 or more, the the schedule of contributors discussed above fair rental value for the purpose of aiding that
organization does not need to attach a unless the schedule is specifically required by tenant’s exempt function, the reporting
schedule. Show each contributor’s name and the state with which the organization is filing organization should report such rental income
address, the total amount received, and the the return. States that do not require the as program service revenue on line 2. See
date received. Contributors include information might nevertheless make it also the instructions for line 6a. For purposes
individuals, fiduciaries, partnerships, available for public inspection along with the of this return, report all rental income from an
corporations, associations, trusts, or exempt rest of the return. affiliated organization on line 2.
organizations. Unrelated trade or business activities.—
Unrelated trade or business activities (not
Page 10
including any special events or activities) that line 54. Include amounts received from On lines 8a and 8c, also report capital
generate fees for services may also be payments on securities loans, as defined in gains dividends, the organization’s share of
program service activities. A social club, for section 512(a)(5). Do not include any capital capital gains and losses from a partnership,
example, should report as program service gains dividends that are reportable on line 8. and capital gains distributions from trusts.
revenue the fees it charges both members See the instructions for line 2 for reporting Indicate the source on the schedule
and nonmembers for the use of its tennis income from program-related investments. described below.
courts and golf course. Combine the gain and/or loss figures
Line 6a—Gross rents
Program-related sales of inventory.— reported on line 8c, columns (A) and (B) and
Report on line 2, the gross amount of Enter on line 6a the rental income received report that total on line 8d. Do not include
program-related sales of inventory. Show the for the year from investment property any unrealized gains or losses on securities
applicable cost of goods sold, as well as reportable on line 55. Do not include on line carried at market value in the books of
marketing and distribution costs, as program 6a rental income related to the reporting account. See the instructions for line 20.
service expense in column (B) of Part II. organization’s exempt function (program
service). Report such income on line 2. For For reporting sales of securities on Form
Line 3—Membership dues and example, an exempt organization whose 990, you may use the more convenient
assessments exempt purpose is to provide low-rental average cost basis method to figure the
organization’s gain or loss. When a security is
Enter members’ and affiliates’ dues and housing to persons with low income would
report that rental income as program service sold, compare its sales price with the average
assessments that are not contributions. cost basis of the particular security to
revenue on line 2. Rental income received
Dues and assessments received that from an unaffiliated exempt organization is determine gain or loss. However, generally,
compare reasonably with available for reporting sales of securities on Form
generally considered as unrelated to the
benefits.—When dues and assessments are reporting organization’s exempt purpose and 990-T, do not use the average cost basis to
received that compare reasonably with determine gain or loss.
reportable on line 6a. However, note an
membership benefits, report such dues and exception given in the instructions for line 2 Assets other than publicly traded securities
assessments on line 3. and inventory.—Attach a schedule showing
when the reporting organization aids an
Organizations that usually match dues and unaffiliated organization with its exempt the sale or exchange of nonpublicly traded
benefits.—Organizations, other than those function. securities and the sale or exchange of other
described in section 501(c)(3), generally assets that are not inventory items. The
Only for purposes of completing this return,
provide benefits that have a reasonable schedule should show security transactions
the reporting organization must report any
relationship to dues. This occurs usually in separately from the sale of other assets.
rental income received from an affiliated
organizations described in section 501(c)(5), Show for each of these assets:
exempt organization as program service
(6), or (7), although benefits to members may ● Date acquired and how acquired,
revenue on line 2.
be indirect. Report such dues and
● Date sold and to whom sold,
assessments on line 3. Line 6b—Rental expenses
● Gross sales price,
Dues or assessments received that exceed Enter the expenses paid or incurred for the
the value of available membership income reported on line 6a. Include interest ● Cost, other basis, or if donated, value at
benefits.—Whether or not membership related to rental property and depreciation if it time acquired (state which),
benefits are used, dues received by an is recorded in the organization’s books and ● Expense of sale and cost of improvements
organization, to the extent they are more than records. Report in column (B) of Part II made after acquisition, and
the monetary value of the membership (Program services) any rental expenses ● If depreciable property, depreciation since
benefits available to the dues payer, are a allocable to rental income reportable as acquisition.
contribution includible on line 1a. See Rev. program service revenue on line 2.
Rul. 54-565, 1954-2 C.B. 95 and Rev. Rul. Publicly traded securities.—On the attached
68-432, 1968-2 C.B. 104. Line 6c—Net rental income or (loss) schedule, for sales of publicly traded
securities through a broker, total the gross
Dues received primarily for the Subtract line 6b from line 6a. Show any loss
sales price, the cost or other basis, and the
organization’s support.—If a member pays in parentheses.
expenses of sale on all such securities sold,
dues mainly to support the organization’s and report lump-sum figures in place of the
Line 7—Other investment income
activities and not to obtain benefits of more detailed reporting required by the above
than nominal monetary value, those dues are Enter the amount of investment income not
paragraph. Publicly traded securities include
a contribution to the organization includible reportable on lines 4 through 6 and describe
common and preferred stocks, bonds
on line 1a. the type of income in the space provided or
(including governmental obligations), and
Examples of membership benefits.—These in an attachment. The income should be the
mutual fund shares that are listed and
include subscriptions to publications, gross amount derived from investments
regularly traded in an over-the-counter market
newsletters (other than one about the reportable on line 56. Include, for example,
or on an established exchange and for which
organization’s activities only), free or royalty income from mineral interests owned
market quotations are published or otherwise
reduced-rate admissions to events the by the organization. However, do not include
readily available.
organization sponsors, the use of its facilities, income from program-related investments.
and discounts on articles or services that See the instructions for line 2. Also exclude Lines 9a through 9c—Special events and
both members and nonmembers can buy. In unrealized gains and losses on investments activities
figuring the value of membership benefits, do carried at market value. See the instructions
On the appropriate line, enter the gross
not include intangible benefits, such as the for line 20.
revenue, expenses, and net income (or loss)
right to attend meetings, vote or hold office in Lines 8a through 8d—Gains (or losses) from all special events and activities, such as
the organization, and the distinction of being from sale of assets other than inventory dinners, dances, carnivals, raffles, bingo
a member of the organization. games, other gambling activities, and
Report, on lines 8a through 8c, all sales of
Line 4—Interest on savings and temporary door-to-door sales of merchandise. These
securities in column (A). Use column (B) to
activities only incidentally accomplish an
cash investments report sales of all other types of investments
exempt purpose. Their sole or primary
Enter the amount of interest income from (such as real estate, royalty interests, or
purpose is to raise funds (other than
savings and temporary cash investments partnership interests) and all other
contributions) to finance the organization’s
reportable on line 46. So-called dividends or noninventory assets (such as program-related
exempt activities. This is done by offering
earnings received from mutual savings banks, investments and fixed assets used by the
goods or services that have more than a
etc., are actually interest and should be organization in its related and unrelated
nominal value (compared to the price
entered on line 4. activities).
charged) for a payment that is more than the
On line 8a, for each column, enter the total direct cost of those goods or services.
Line 5—Dividends and interest from gross sales price of all such assets. Total the
securities Characterizing any required payment as a
cost or other basis (less depreciation), and
“donation” or “contribution” on tickets or on
Enter the amount of dividend and interest selling expenses and enter the result on line
advertising or solicitation materials does not
income from equity and debt securities 8b. On line 8c, enter the net gain or loss.
affect how such payments should be reported
(stocks and bonds) of the type reportable on
Page 11
on Form 990. As discussed in the instructions contributions when gifts or services given are On line 10a, report gross sales revenue
for line 1, the amount of the contribution is nominal in value is discussed above. from sales of inventory when such sales are
the excess of the amount paid over the retail Attached schedule.—Attach a schedule non-program related.
value of the goods or services received by listing the three largest special events On line 10b, report the cost of goods sold
the payer. See also Publication 1391. conducted, as measured by gross receipts. related to the sales of such inventory. The
Special events may generate both revenue Describe each of these events and show for usual items included in cost of goods sold
and contributions.—Special events each event: the gross receipts; the amount of are direct and indirect labor, materials and
sometimes generate both contributions and contributions included in gross receipts (see supplies consumed, freight-in, and a
revenue. When a buyer pays more than the the instructions above); the gross revenue proportion of overhead expenses. Marketing
retail value of the goods or services (gross receipts less contributions); the direct and distribution costs are not included in cost
furnished, enter: expenses; and the net income (or loss) (gross of goods sold but are reported in Part II,
● As gross revenue, on line 9a (in the amount revenue less direct expenses). column (B).
column) the retail value of the goods or Include the same information, in total Attached schedule.—In an attached
services, figures, for all other special events held that schedule, give a breakdown of items sold; for
● As a contribution, on both line 1a and line were not among the three largest. Indicate example, sales of food, cars, souvenirs, or
9a (within the parentheses) the amount the type and number of the events not listed electronic equipment.
received that exceeds the retail value of the individually (for example, three dances and
two raffles). Line 11—Other revenue
goods or services given.
An example of this schedule might appear Enter the total amount from Part VII, lines
Report on line 9b only the expenses
as follows: 103(a) through (e) (Other revenue), columns
directly attributable to the goods or services
(B), (D), and (E). This figure represents the
the buyer receives from a special event. Special Events: (A) (B) (C) Total
total income from all sources not covered by
Fundraising expenses attributable to
lines 1 through 10 of Part I. Examples of
contributions are reportable in column (D), Gross Receipts $XXX $XXX $XXX $XXX
income includible on line 11 are interest on
Part II. If you include an expense on line 9b, Less: Contributions XXX XXX XXX XXX
notes receivable not held as investments or
do not report it again on line 10b or in Part II. Gross Revenue XXX XXX XXX XXX
as program-related investments (defined in
Example. At a special event, an organization Less: Direct Expenses XXX XXX XXX XXX
the line 2 instructions); interest on loans to
received $100 in gross receipts for goods Net Income or (loss) $XXX $XXX $XXX $XXX
officers, directors, trustees, key employees,
valued at $40. The organization entered gross If you use the above schedule, report the and other employees; and royalties that are
revenue of $40 on line 9a (in the amount total for contributions on line 1a of Form 990 not investment income or program service
column) and entered a contribution of $60 on and on line 9a (within the parentheses of the revenue.
both line 1a and line 9a (within the description line). Report the totals for gross
parentheses). The contribution of $60 was the Line 12—Total revenue
revenue, in the amount column, on line 9a;
difference between the gross revenue of $40 direct expenses on line 9b; and net income or Enter the total of lines 1d through 11.
and the gross receipts of $100. (loss) on line 9c. Lines 13 through 15—Program services,
The expenses directly relating to the sale of Keeping fundraising records.—Section management and general, and fundraising
the goods would be reported on line 9b. 501(c) organizations that are eligible to expenses
However, all expenses of raising contributions receive tax-deductible contributions under
would be reported in column (D), Part II. section 170(c) of the Code must keep sample Section 4947(a)(1) nonexempt charitable
For more details about contributions and copies of their fundraising materials, such as trusts and section 501(c)(3) and (c)(4)
revenue, see the line 1 instructions. See also dues statements or other fundraising organizations.—Complete Part II and then
Items To Note and General Instruction S. solicitations, tickets, receipts, or other enter on lines 13 through 15 the appropriate
evidence of payments received in connection amounts from the totals for columns (B), (C),
Sales or gifts of goods or services of only and (D) reported on line 44, Part II.
nominal value.—If the goods or services with fundraising activities. If organizations
given or offered at special events have only advertise their fundraising events, they must All other organizations.—All other
nominal value, include all of the receipts as keep samples of the advertising copy. If they organizations are not required to complete
contributions on line 1a and all of the related use radio or television to make their lines 13 through 15.
expenses as fundraising expenses on line 15 solicitations, they must keep samples of Line 16—Payments to affiliates
and in column (D) of Part II. See the line 1 scripts, transcripts, or other evidence of
instructions for a description of benefits of on-air solicitations. If organizations use This expense classification is used to report
nominal value. These are adjusted annually outside fundraisers, they must keep samples certain types of payments to organizations
for inflation. of the fundraising materials used by the “affiliated with” (closely related to) a reporting
outside fundraisers. For each fundraising agency.
An activity may generate only
event, organizations must keep records to Payments to affiliated state or national
contributions.—An activity that generates
show that portion of any payment received organizations.—Dues paid by the local
only contributions, such as a solicitation
from patrons that is not deductible; that is, charity to its affiliated state or national
campaign by mail, is not a special event and
the retail value of the goods or services (parent) organization are usually reported on
should not be reported on line 9.
received by the patrons. See Items To Note line 16. Report on this line predetermined
Contributions from such an activity are and General Instruction S. quota support and dues (excluding
reportable on line 1, and the related membership dues of the type described
fundraising expenses are reportable in column Lines 10a through 10c—Gross profit or
(loss) from sales of inventory below) by local agencies to their state or
(D), Part II. national organizations for unspecified
Sweepstakes, raffles, and lotteries may Enter the gross sales (less returns and purposes; that is, general use of funds for the
produce revenue or contributions.—The allowances), cost of goods sold, and gross national organization’s own program and
proceeds of solicitation campaigns in which profit or (loss) from the sale of inventory support services.
the names of contributors and other items. These sales do not include items sold Purchases from affiliates.—Purchases of
respondents are entered in a drawing for the at special events that are reportable on line 9, goods or services from affiliates are not
awarding of prizes (so-called “sweepstakes” or sales that contributed to program service reported on line 16 but are reported as
or “lotteries”) are contributions, reportable on revenue and are reportable on line 2. Sales of expenses in the usual manner.
line 1, and the related expenses are inventory items reportable on line 10 are sales
fundraising expenses reportable in column (D) of those items the organization either makes Expenses for providing goods or services
of Part II. However, raffles and lotteries in to sell to others or buys for resale. Sales of to affiliates.—In addition to payments made
which a payment of at least a specified investments on which the organization directly to affiliated organizations, expenses
minimum amount is required for each entry expected to profit by appreciation and sale incurred in providing goods or services to
are special events, reportable on line 9, are not reported here. Report sales of affiliates may be reported on line 16 if:
unless the prizes awarded have only nominal investments on line 8. 1. The goods or services provided are not
value. Reporting payments in their entirety as related to the program services conducted by
the organization furnishing them (for example,

Page 12
when a local organization incurs expenses in Line 19—Net assets or fund balances, depreciation of office equipment, use an
the production of a solicitation film for the beginning of year appropriate basis for each kind of cost.
state or national organization); and However, you should report some other
Enter the amount from column (A) of line 74
2. The costs involved are not connected (or from Form 5500, 5500-C/R, or an shared expenses in column (C) only. The
with the management and general or approved DOL form if General Instruction F column instructions below discuss allocating
fundraising functions of the reporting applies). expenses.
organization. For example, when a local Column (A)—Total
organization gives a copy of its mailing list to Line 20—Other changes in net assets or
the state or national organization, the fund balances For column (A), total each line item of
expense of preparing the copy provided may Attach a schedule explaining any changes in columns (B), (C), and (D) in Part II. Except for
be reported on line 16, but not expenses of net assets or fund balances between the expenses you report on lines 6b, 8b, 9b, 10b,
preparing and maintaining the local beginning and end of the year that are not or 16 of Part I, you should use column (A) to
organization’s master list. accounted for by the amount on line 18. report all expenses the organization paid or
Amounts to report here include adjustments incurred.
Federated fundraising agencies.—These
agencies (see the instructions for line 1b) of earlier years’ activity; unrealized gains and Column (B)—Program services
should include in their own support the full losses on investments carried at market
value; and any difference between fair market Program services are mainly those activities
amount of contributions received in
value and book value of property given as an that the reporting organization was created to
connection with a solicitation campaign they
award or grant. conduct and which, along with any activities
conduct, even though donors designate
commenced subsequently, form the basis of
specific agencies to receive part or all of their
Line 21—Net assets or fund balances, end the organization’s current exemption from tax.
individual contributions. These fundraising
of year They may be self-funded or funded out of
organizations should report the allocations to
Enter the total of lines 18, 19, and 20. This contributions, accumulated income,
participating agencies as grants and
total figure must equal the amount reported in investment income, or any other source.
allocations (line 22) and quota support
payments to their state or national column (B) of line 74. Program services can also include the
organization as payments to affiliates (line organization’s unrelated trade or business
16). Part II—Statement of activities. For example, publishing a magazine
Functional Expenses is a program service even though the
Voluntary awards or grants to affiliates.—
magazine contains both editorials and articles
Do not report on line 16 voluntary awards or In General that further the organization’s exempt
grants made by the reporting agency to its
purpose and advertising, the income from
state or national organization for specified Column (A) which is taxable as unrelated business
purposes. Report these awards or grants on
All organizations must complete column (A) income.
line 22, Grants and allocations.
unless they are using an approved DOL form If an organization receives a grant to do
Membership dues paid to other or Form 5500 or 5500-C/R as a partial research, produce an item, or perform a
organizations.—Report membership dues substitute for Form 990. See General service, either to meet the grantor’s specific
paid to obtain general membership benefits, Instruction F. needs or to benefit the public directly, the
such as regular services, publications, and
costs incurred represent program service
materials, from other organizations as “Other Columns (B), (C), and (D)
expenses. Do not treat these costs as
expenses” on line 43. This is the case, for These columns are optional for all fundraising expenses, even if you report the
example, if a charitable organization pays organizations except section 4947(a)(1) grant on line 1 as a contribution.
dues to a trade association comprised of nonexempt charitable trusts and section
otherwise unrelated members. 501(c)(3) and (4) organizations. Section Column (C)—Management and general
Attached schedule.—Attach a schedule 4947(a)(1) nonexempt charitable trusts and Use column (C) to report the organization’s
listing the name and address of each affiliate section 501(c)(3) and (4) organizations must expenses for overall function and
that received payments reported on line 16. complete columns (B), (C), and (D). management, rather than for its direct
Specify the amount and purpose of the In Part II, the organization’s expenses are conduct of fundraising activities or program
payments to each affiliate. designated by object classification (e.g., services. Overall management usually
Note: Properly distinguishing between salaries, legal fees, supplies, etc.) and includes the salaries and expenses of the
payments to affiliates and grants and allocated into three functions: program chief officer of the organization and that
allocations is especially important if you use services (column (B)); management and officer’s staff. If part of their time is spent
Form 990 for state reporting purposes. See general (column (C)); and fundraising (column directly supervising program services and
General Instruction E. If you use Form 990 (D)). These functions are explained below in fundraising activities, their salaries and
only for reporting to the IRS, payments to the instructions for the columns. Do not expenses should be allocated among those
affiliated state or national organizations that include in Part II any expense items you must functions.
do not represent membership dues reportable report on lines 6b, 8b, 9b, 10b, or 16 in Other expenses to report in column (C)
as “Other expenses” on line 43 (see Part I. include those for meetings of the board of
instructions above) may be reported either on For reporting to the IRS only, use the directors or similar group; committee and
line 16 or line 22 and explained in the organization’s normal accounting method to staff meetings (unless held in connection with
required attachment. report total expenses in column (A) and to specific program services or fundraising
Line 17—Total expenses segregate them into functions under columns activities); general legal services; accounting,
(B), (C), and (D). However, for state reporting auditing, personnel, and other centralized
Organizations using only column (A) of Part II requirements, see General Instruction E and services; investment expenses (except those
should enter the total of line 16 and line 44 of the Specific Instructions, item J, Accounting relating to rental income and program-related
column (A), Part II, on line 17. Other method. If the accounting system does not income—report rental expenses on line 6b
organizations should enter the total of lines provide for this type of segregation, a and program-related expenses in column (B));
13 through 16. Organizations using Form reasonable method of allocation may be general liability insurance; preparation,
5500, 5500-C/R, or an approved DOL form as used. The amounts reported should be publication, and distribution of an annual
a partial substitute for Form 990 should enter accurate and the method of allocation report; and office management.
the total expense figure from Form 5500 or documented in the organization’s records. However, you should report only general
5500-C/R, or from the required reconciliation
Report, in the appropriate column, expenses in column (C). Do not use this
schedule if Form LM-2 or LM-3 is used. See
expenses that are directly attributable to a column to report costs of special meetings or
General Instruction F.
particular functional category. In general, other activities that relate to fundraising or
Line 18—Excess or (deficit) for the year allocate expenses that relate to more than specific program services.
Enter the difference between lines 12 and 17. one functional category. For example, allocate Column (D)—Fundraising
If line 17 is more than line 12, enter the employees’ salaries on the basis of each
employee’s time. For some shared expenses Fundraising expenses are the total expenses
difference in parentheses.
such as occupancy, supplies, and incurred in soliciting contributions, gifts,
Page 13
grants, etc. Report as fundraising expenses 3. Enter $70,000 on the same line in the amount given; and (c) (in the case of grants
all expenses, including allocable overhead Program services column; to individuals) relationship of donee if related
costs, incurred in: (a) publicizing and 4. Enter $10,000 on the same line in the by blood, marriage, adoption, or employment
conducting fundraising campaigns; Fundraising column; and (including employees’ children) to any person
(b) soliciting bequests and grants from or corporation with an interest in the
5. Enter a decrease of $85,000 on the
foundations or other organizations, or organization, such as a creator, donor,
government grants reportable on line 1c; same line in the Management and general director, trustee, officer, etc.
column, representing the allocations to
(c) participating in federated fundraising On the schedule, classify activities in more
campaigns; (d) preparing and distributing functional areas other than management and
general. detail than in such broad terms as charitable,
fundraising manuals, instructions, and other educational, religious, or scientific. For
materials; and (e) conducting special events After making these allocations, the column example, identify payments for nursing
that generate contributions reportable on line (C) total (line 44, column (C)) would be
services, laboratory construction, or
1a in addition to revenue reportable on line $65,000, consisting of the $50,000 actual fellowships.
9a. However, report any expenses that are management and general expense amount
directly attributable to revenue shown in the and the $15,000 allocation of the aggregate If property other than cash is given, also
amount column on line 9a (that is, the direct cost center expenses to management and show on the schedule: (a) a description of the
general. property; (b) its book value; (c) how the book
expenses incurred in furnishing the goods or
services sold) on line 9b. Report in column value was determined; (d) its fair market
The above is an example of a simple value; and (e) how the fair market value was
(D), fundraising expenses attributable to one-step allocation that shows how to report
contributions reported within the parentheses determined. If the fair market value of the
the allocation in Part II. This reporting method property when the organization gave it is the
of line 9a and on line 1a. would actually be needed more for multiple measure of the award or grant, record any
Allocating indirect expenses step allocations involving two or more cost difference between fair market value and
centers. The total expenses of the first would
Colleges, universities, hospitals, and other book value in the organization’s books of
be allocated to the other functions, including account and on line 20.
organizations that accumulate indirect an allocation of part of these expenses to the
expenses in various cost centers (such as the second cost center. The expenses of the Line 23—Specific assistance to individuals
expenses of operating and maintaining the second cost center would then be allocated
physical plant) that are reallocated to the Enter the amount of payments to, or for the
to other functions and any remaining cost
benefit of, particular clients or patients,
program services and other functional areas centers to be allocated, and so on. The including assistance rendered by others at
of the organization in single or multiple steps greater the number of these cost centers that the expense of the filing organization. Do not
may find it easier to report these expenses in are allocated out, the more difficult it is to include grants to other organizations that
the following optional manner: preserve the object classification identity of select the person(s) to receive the assistance
First, report the expenses of these indirect the expenses of each cost center (e.g., available through the use of the grant funds.
cost centers on lines 25 through 43 of the salaries, interest, supplies, etc.). Using the For example, report a payment to a hospital
Management and general expense column in reporting method described above avoids this
to cover the medical expenses of a particular
Part II, along with the expenses properly problem.
individual on line 23 but do not report a
reportable in that column. Note: The intent of the above instructions is contribution to a hospital to provide some
Second, allocate the total expenses for only to facilitate reporting indirect expenses service to the general public or to unspecified
each cost center to Program services, by both object classification and function. charity patients on this line. Also, do not
Management and general, and Fundraising as These instructions do not permit the include scholarship, fellowship, or research
a separate item entry on line 43, Other allocation to other functions of expenses that grants to individuals even though selected by
expenses. Enter the name of the cost center should be reported as management and the grantor organization. Report these grants
on line 43. If any of the cost center’s general expenses. on line 22 instead.
expenses are to be allocated to the expenses Line 22—Grants and allocations Attached schedule.—Attach a schedule
listed in Part I (such as the expenses showing the total payments for each
attributable to special events and activities), Enter the amount of awards and grants to particular class of activity, such as food,
enter these expenses as a negative figure in individuals and organizations selected by the
shelter, and clothing for indigents or disaster
columns (A) and (C). This prevents reporting filing organization. United Way and similar
victims; medical, dental, and hospital fees
the same expense in both Parts I and II. If fundraising organizations should include
and charges; and direct cash assistance to
part of the total cost center expenses are to allocations to member agencies.
indigents. For payments to indigent families,
be allocated to columns (B), Program Report voluntary awards and grants to do not identify the individuals.
services, and (D), Fundraising, enter these affiliated organizations for specific (restricted)
expenses as positive amounts in these purposes or projects also on line 22 but not Line 24—Benefits paid to or for members
columns and as single negative amounts in required payments to affiliates reportable on For an organization that provides benefits to
column (C). Do not make any entries in line 16. members or dependents (such as
column (A), Total, for these offsetting entries. Report scholarship, fellowship, and organizations exempt under section 501(c)(8),
Example. An organization reports $50,000 of research grants to individuals on line 22. (9), or (17)), attach a schedule. Show amounts
actual management and general expenses Certain other payments to, or for the benefit of: (a) death, sickness, hospitalization, or
and $100,000 of expenses of an indirect cost of, individuals may be reportable on line 23 disability benefits; (b) unemployment
center that are allocable in part to other instead. See the instructions for line 23 for compensation benefits; and (c) other benefits
functions. The total of lines 25 through 43 of details. (state their nature). Do not report the cost of
column (C) would be $150,000 before the Report only the amount of actual grants employment-related benefits the organization
allocations were made. Assume that $10,000 and awards on line 22. Report expenses provides its officers and employees on this
(of the $100,000 total expenses of the cost incurred in selecting recipients or monitoring line. Report those expenses on lines 27 and
center) was allocable to fundraising; $70,000 compliance with the terms of a grant or 28.
to various program services; $15,000 to award on lines 25 through 43.
management and general functions; and Line 25—Compensation of officers,
$5,000 to special events and activities. To In the spaces provided, give separate totals directors, etc.
report this in Part II under this alternate for cash and noncash grants and allocations Enter the total compensation paid to officers,
method: made. Cash grants include only grants and directors, trustees, and key employees for the
allocations paid by cash, checks, money year. In Part V, give the name and
1. Indicate the cost center, the expenses of orders, wire transfers and other charges
which are being allocated, on line 43, as compensation (if any) of each officer, director,
against funds on deposit at a financial trustee, and key employee, along with the
“Allocation of (specify) expenses”; institution. other information requested. If no
2. Enter a decrease of $5,000 on the same Attached schedule.—Attach a schedule of compensation was paid, enter zero.
line in the Total column, representing the amounts reported on line 22. Show on the
special event expenses already reported on Each person listed should report this
schedule: (a) each class of activity; compensation on his or her income tax return
line 9b in Part I; (b) donee’s name and address and the unless the Code specifically excludes any of
Page 14
the payments from income tax. See Pub. 525 Line 33—Supplies conventions conducted by other
for details. See the Part V instructions for a Enter the total for office, classroom, medical, organizations. However, do not include on
definition of “key employee.” and other supplies used during the year, as this line the salaries and travel expenses of
Form 941 must be filed to report income determined by the organization’s normal the reporting organization’s own officers,
tax withholding and social security and method of accounting for supplies. directors, trustees, and employees who
Medicare taxes. The organization must also participate.
file Form 940 to report Federal unemployment Line 34—Telephone
Line 41—Interest
taxes unless the organization is not subject to Enter the total telephone, telegram, and
these taxes. See Circular E, Employer’s Tax Enter the total interest expense for the year.
similar expenses for the year.
Guide, for details. See also the discussion of Do not include any interest attributable to
the Trust Fund Recovery Penalty given in Line 35—Postage and shipping rental property (reported on line 6b) or any
General Instruction D for Form 941. Enter the total amount of postage, parcel mortgage interest treated as occupancy
expense on line 36.
Line 26—Other salaries and wages delivery, trucking, and other delivery
expenses, including the cost of shipping Line 42—Depreciation, depletion, etc.
Enter the total of employees’ salaries not materials. Include the costs of outside mailing
reported on line 25. services on this line. If the organization records depreciation,
depletion, and similar expenses, enter the
Line 27—Pension plan contributions Line 36—Occupancy total for the year. Include any depreciation
Enter the employer’s share of contributions (amortization) of leasehold improvements. The
Enter the total amount paid or incurred for the
that the organization paid to qualified and use of office space or other facilities, heat, organization is not required to use the
nonqualified pension plans for the year. light, power, and other utilities (other than Modified Accelerated Cost Recovery System
Complete Form 5500 or 5500-C/R, as (MACRS) to compute the depreciation
telephone expenses reported on line 34),
appropriate, for the organization’s plan and outside janitorial services, mortgage interest, reported on Form 990. If the organization
file as a separate return. If the organization property insurance, real estate taxes, and records depreciation using MACRS, attach
has more than one plan, complete the similar expenses. Form 4562, Depreciation and Amortization, or
appropriate form for each plan. File the form a schedule showing the same information
Occupancy expenses paid or incurred for required by Form 4562. If the organization
by the last day of the 7th month after the program-related income reportable on line 2
plan year ends. See General Instruction D15. does not use MACRS, attach a schedule
are included on line 36. Do not subtract rental showing how depreciation was computed.
Line 28—Other employee benefits income received from renting or subletting
For an explanation of acceptable methods
rented space from the amount included on
Enter the organization’s contributions to for computing depreciation, see Pub. 534,
line 36, occupancy expense. If the activities
employee benefit programs (such as Depreciation, or Pub. 946, How To Begin
of the organization’s tenant are related to the
insurance, health, and welfare programs) that Depreciating Your Property.
reporting organization’s exempt purpose, the
are not an incidental part of a pension plan Use the same method of computing
rental income received is reportable as
included on line 27. Also see General depreciation on line 42 that is used for the
program-service revenue on line 2 and
Instruction D15 and the instructions for Form balance sheet, Part IV, of this Form 990.
allocable occupancy expenses are reportable
5500. Expenses paid or incurred for employee on line 36. However, if the tenant’s activities If the organization claims a deduction for
events such as a picnic or holiday party are not program related, report such rental depletion, attach a schedule explaining the
should be reported on line 28. income on line 6a and related rental expenses deduction.
Line 29—Payroll taxes on line 6b.
Line 43—Other expenses
Enter the amount of Federal, state, and local Do not include depreciation (reportable on
line 42) or any salaries of the reporting Show the type and amount of each significant
payroll taxes for the year but only those taxes
organization’s own employees (reportable on expense for which a separate line is not
that are imposed on the organization as an
line 26). provided. Report all other miscellaneous
employer. This includes the employer’s share
expenses as a single total. Expenses that
of social security and Medicare taxes, the Line 37—Equipment rental and might be reported here include investment
Federal unemployment tax (FUTA), state maintenance
unemployment compensation taxes, and counseling and other professional fees not
other state and local payroll taxes. Do not Enter the cost of renting and maintaining reportable on lines 30 through 32; penalties,
include taxes withheld from employees’ office equipment and other equipment, fines, and judgments; unrelated business
salaries and paid to the various governmental except for automobile and truck expenses income taxes; and insurance and real estate
units such as Federal and state income taxes reportable on lines 35 and 39. taxes not attributable to rental property or
reported as occupancy expenses. In regard
and the employees’ shares of social security Line 38—Printing and publications to program-related sales of inventory from
and Medicare taxes.
Enter the printing and related costs of which the gross revenue was included on line
Line 30—Professional fundraising fees producing the reporting organization’s own 2, enter on line 43, column (B), the related
newsletters, leaflets, films, and other cost of goods sold and any marketing and
Enter the organization’s fees to outside
informational materials. Also include the cost distribution costs not included on other lines
fundraisers for solicitation campaigns they
conducted or for consultation services of any purchased publications. However, do of Part II. Attach a schedule if more space is
connected with a solicitation of contributions not include any expenses, such as salaries or needed.
by the organization itself. postage, for which a separate line is provided Some states that accept Form 990 in
in Part II. satisfaction of their filing requirements may
Line 31—Accounting fees require that certain types of miscellaneous
Line 39—Travel
Enter the total accounting and auditing fees expenses be itemized regardless of amount.
charged by outside firms and individuals who Enter the total travel expenses, including See General Instruction E.
are not employees of the reporting transportation costs (fares, mileage
allowances, and automobile expenses), meals Line 44—Total functional expenses
organization.
and lodging, and per diem payments. Add lines 22 through 43 and enter the totals
Line 32—Legal fees on line 44 in columns (A), (B), (C), and (D).
Line 40—Conferences, conventions, and
Enter the total legal fees charged by outside meetings Report the column (B) total on line 13 of
firms and individuals who are not employees Part I; the column (C) total on line 14; and the
of the reporting organization. Do not include Enter the total expenses incurred by the column (D) total on line 15.
any penalties, fines, or judgments imposed organization in conducting meetings related
against the organization as a result of legal to its activities. Include such expenses as the Reporting of Joint Costs
proceedings. Report those expenses on line rental of facilities, speakers’ fees and Organizations that included in program
43, Other expenses. expenses, and printed materials. Include the service expenses (column (B) of Part II) any
registration fees (but not travel expenses) joint costs from a combined educational
paid for sending any of the organization’s campaign and fundraising solicitation must
staff to conferences, meetings, or disclose how the total joint costs of all such
Page 15
combined activities were reported in Part II. records. Indicate that the information Line 48—Pledges receivable
Organizations answering “Yes” to the provided is an estimate. Enter the total pledges receivable recorded as
joint-cost question following line 44 must Donated services or facilities.—If the of the beginning and end of the year. Do not
furnish the relevant financial data in the organization reports on line 82b the value of include the amount of pledges estimated to
spaces provided. any donated services or use of materials, be uncollectible.
An organization conducts a combined equipment, or facilities it received, it can also
educational campaign and fundraising indicate in Part III the amount received and Line 49—Grants receivable
solicitation when it solicits contributions (by utilized for specific program services. Enter the total grants receivable from
mail, telephone, broadcast media, or any However, disclose the applicable amounts governmental agencies, foundations, and
other means) and includes, with the only on the lines for the narrative description other organizations as of the beginning and
solicitation, educational material or other of the appropriate program services. Do not end of the year.
information that furthers a bona fide include these amounts in the expense column
nonfundraising exempt purpose of the in Part III. Line 50—Receivables due from officers,
organization. directors, trustees, and key employees
Reporting other program services and
Expenses attributable to providing expenses.—Attach a schedule that lists the Report all receivables due from officers,
information regarding the organization itself, organization’s other program services. For directors, trustees, and key employees and all
its use of past contributions, or its planned this schedule, the detailed information secured and unsecured loans to such
use of contributions received are not program required in Part III for the four largest services persons on line 50 and in an attached
service expenses and should not be included is not required. Section 501(c)(3) and (4) schedule discussed below. Report interest
in column (B). This is true whether or not the organizations as well as section 4947(a)(1) from such receivables on line 11. See the
organization accounts for joint costs in nonexempt charitable trusts should report the Part V instructions for a definition of “key
accordance with the AICPA’s Statement of expenses attributable to their program employee.”
Position 87-2, Accounting for Joint Costs of services. When receivables should be reported
Informational Materials and Activities of separately.—In the required schedule, report
Not-for-Profit Organizations That Include a Part IV—Balance Sheets each receivable separately even if more than
Fund-Raising Appeal (New York, NY, AICPA, All organizations, except those that meet one one loan was made to the same person or
1987). Any method of allocating joint costs to of the exceptions in General Instruction F, the same terms apply to all loans. Report
program service expenses must be must complete all of Part IV and may not salary advances, and other advances for the
reasonable under the facts and submit a substitute balance sheet. Failure to personal use and benefit of the recipient, and
circumstances of each case. Most states with complete Part IV may result in penalties for receivables subject to special terms or arising
reporting requirements for charitable and filing an incomplete return. See General from nontypical transactions, as separate
other organizations that solicit contributions Instruction K. See General Instruction E for loans for each officer, director, trustee, and
either require or allow the reporting of joint details on completing a Form 990 to be filed key employee.
costs according to Statement of Position with any state or local governmental agency. When receivables should be reported as a
87-2 standards.
When a schedule is required to be attached single total.—In the required schedule, report
Part III—Statement of Program for any line item in Part IV, it is only for the receivables that are subject to the same
end-of-year balance sheet figure reported in terms and conditions (including credit limits
Service Accomplishments column (B). Give the end-of-year figures for and rate of interest) as receivables due from
Provide the information specified in the any receivables or depreciable assets and the the general public (occurring in the normal
heading of Part III for each of the related allowances for doubtful accounts or course of the organization’s operations) as a
organization’s four largest program services accumulated depreciation reported within the single total for all the officers, directors,
(as measured by total expenses incurred) or description column. trustees, and key employees. Report travel
for each program service if the organization advances for official business of the
Line 45—Cash—non-interest-bearing organization as a single total.
engaged in four or fewer of such activities. If
part of the total expenses of any program Enter the total of non-interest-bearing Schedule format.—For each outstanding
service consists of grants and allocations checking accounts, deposits in transit, loan or other receivable that must be reported
reported on line 22, show the amount of the change funds, petty cash funds, or any other separately, the attached schedule should
grants and allocations in the space provided. non-interest-bearing account. Do not include show the following information (preferably in
Section 501(c)(3) and (4) organizations and advances to employees or officers or columnar form):
section 4947(a)(1) nonexempt charitable trusts refundable deposits paid to suppliers or
1. Borrower’s name and title,
must show the amount of grants and others.
allocations to others. 2. Original amount,
Line 46—Savings and temporary cash
Only section 501(c)(3) and (4) organizations 3. Balance due,
investments
and section 4947(a)(1) nonexempt charitable 4. Date of note,
trusts must enter the total expenses of each Enter the total of interest-bearing checking
accounts, savings and temporary cash 5. Maturity date,
program service they reported in Part III.
Completing the expense column in Part III is investments, such as money market funds, 6. Repayment terms,
optional for all other organizations. commercial paper, certificates of deposit, and 7. Interest rate,
U.S. Treasury bills or other governmental 8. Security provided by the borrower,
A program service is a major (usually obligations that mature in less than 1 year.
ongoing) objective of an organization, such as Report the income from these investments on 9. Purpose of the loan, and
adoptions, recreation for the elderly, line 4. 10. Description and fair market value of the
rehabilitation, or publication of journals or consideration furnished by the lender (for
newsletters. Specify the service outputs, Line 47—Accounts receivable example, cash—$1,000; or 100 shares of
products, or other measures of a program Enter the total accounts receivable (reduced XYZ, Inc. common stock—$9,000).
service, such as clients served, days of care, by the allowance for doubtful accounts) from
therapy sessions, or publications issued. The above detail is not required for
the sale of goods and/or the performance of receivables or travel advances that may be
Indicate the number of outputs or products services. Report claims against vendors or
rendered, such as 4,080 counseling contacts. reported as a single total. However, report
refundable deposits with suppliers or others and identify those totals separately on the
If the quantity of output is intangible, such here, if not significant in amount. Otherwise, attachment.
as in a research activity, describe the report them on line 58, Other assets. Report
objective of the activity for this time period as any receivables due from officers, directors, Line 51—Other notes and loans receivable
well as the overall longer-term goal. trustees, or key employees on line 50. Report Enter the combined total of notes receivable
Give reasonable estimates for the statistical receivables (including loans and advances) and net loans receivable. For notes and loans
information (number of clients, patients, etc.) due from other employees on line 58. that represent program-related investments
asked for in Part III if exact figures are not (defined in line 2 instructions), report the
readily available from the organization’s interest income on line 2. For all other notes

Page 16
and loans receivable included on line 51, Line 55—Investments—land, buildings, and contract or other arrangement. Do not include
report the income on line 11. equipment any amounts restricted for future use by the
Notes receivable.—Enter the amount of all filing organization’s own governing body.
Enter the book value (cost or other basis less
notes receivable not listed on line 50 and not Attach a schedule that describes each
accumulated depreciation) of all land,
acquired as investments. Attach a schedule contribution or grant designated for one or
buildings, and equipment held for investment
similar to that called for in the instructions for more future periods and indicates the total
purposes, such as rental properties. Attach a
line 50. The schedule should also identify the amount of each item and the amount
schedule listing these fixed assets held at the
relationship of the borrower to any officer, applicable to each future period.
end of the year and held as investments.
director, trustee, or key employee of the Show for each item or category listed, the Line 63—Loans from officers, directors,
organization. cost or other basis, accumulated trustees, and key employees
Notes receivable from loans by a credit depreciation, and book value. Report the
Enter the unpaid balance of loans received
union to its members and scholarship loans income from these assets on line 6a.
from officers, directors, trustees, and key
by a section 501(c)(3) organization do not Line 56—Investments—other employees. See the instructions for Part V for
have to be itemized. However, identify these definition of “key employee.” For loans
loans as such on a schedule and indicate the Enter the amount of all other investment
outstanding at the end of the year, attach a
total amount of such loans that are holdings not reported on line 54 or 55. Attach
schedule that shows (for each loan) the name
outstanding. a schedule listing and describing each of
and title of the lender and the information
For a note receivable from another these investments held at the end of the year.
listed in items 2 through 10 of the instructions
organization exempt under the same Show the book value for each and indicate
for line 50.
paragraph of section 501(c) as the filing whether the investment is listed at cost or
organization, list only the name of the end-of-year market value. Report the income Line 64a—Tax-exempt bond liabilities
borrower and the balance due. For example, from these assets on line 7. Do not include Enter the amount of tax-exempt bonds (or
a section 501(c)(3) organization would have to program-related investments. See the other obligations) issued by the organization
provide the full details of a loan to a section instructions for line 58. on behalf of a state or local governmental
501(c)(4) organization but would have to Line 57—Land, buildings, and equipment unit, or by a state or local governmental unit
provide only the name of the borrower and on behalf of the organization, and for which
the balance due on a note from a loan to Enter the book value (cost or other basis less the organization has a direct or indirect
another section 501(c)(3) organization. accumulated depreciation) of all land, liability. Tax-exempt bonds include state or
buildings, and equipment owned by the local bonds and any obligations, including
Loans receivable.—Enter the gross amount organization and not held for investment. This
of loans receivable, less the allowance for direct borrowing from a lender or certificates
includes any property, plant, and equipment of participation, the interest on which is
doubtful accounts, from the normal activities owned and used by the organization in
of the filing organization such as loans by a excluded from the income of the recipient for
conducting its exempt activities. Attach a Federal income tax purposes under section
credit union to its members or scholarship schedule listing these fixed assets held at the
loans by a section 501(c)(3) organization. A 103.
end of the year and showing, for each item or
schedule of these loans is not required. category listed, the cost or other basis, For all such bonds and obligations
Report loans to officers, directors, trustees, accumulated depreciation, and book value. outstanding at any time during the year,
and key employees on line 50. Report loans attach a schedule showing for each separate
to other employees on line 58. Line 58—Other assets issue: (a) the issue date; (b) the purpose of
List and show the book value of each the issue; (c) the original amount of the issue;
Line 52—Inventories for sale or use and (d) whether a Form 8038, 8038-G, or
category of assets not reportable on lines 45
Enter the amount of materials, goods, and through 57. Attach a separate schedule if 8038-GC was filed when the obligation was
supplies purchased or manufactured by the more space is needed. issued, including the date when such form
organization and held for future sale or use. was filed. If the bond, obligation, or debt has
One type of asset reportable on line 58 is been retired or paid by the organization
Line 53—Prepaid expenses and deferred program-related investments. These are during the year, indicate the date that the
charges investments made primarily to accomplish an event occurred. If the bond, obligation, or
exempt purpose of the filing organization debt was outstanding at the end of the year,
Enter the amount of short-term and long-term rather than to produce income.
prepayments of expenses attributable to one give: (a) the actual or anticipated completion
or more future accounting periods. Examples Line 59—Total assets date for the project financed with the
include prepayments of rent, insurance, and borrowed funds; (b) the amount of the issue
Enter the total of lines 45 through 58. The outstanding; and (c) the unexpended bond
pension costs, and expenses incurred for a amounts on line 59 must equal the amounts
solicitation campaign of a future accounting proceeds, if any. Also indicate whether any
on line 75 for both the beginning and end of portion of any bond-financed facility was
period. year. used by a third party (other than a
Line 54—Investments—securities Line 60—Accounts payable and accrued governmental unit or section 501(c)(3)
Enter the book value, which may be market expenses organization), and, if so, state the percentage
value, of securities held as investments. of space used by the third party.
Enter the total of accounts payable to
Attach a schedule that lists the securities held suppliers and others and accrued expenses, If the tax-exempt bond or obligation is in
at the end of the year. Indicate whether the such as salaries payable, accrued payroll the form of a mortgage, include the amount
securities are listed at cost (including the taxes, and interest payable. on line 64a and not on line 64b. For such
value recorded at the time of receipt in the mortgage, include in the above listing the
case of donated securities) or end-of-year Line 61—Grants payable maturity date of the debt, repayment terms,
market value. Debt securities of the U.S., Enter the unpaid portion of grants and interest rate, and any security provided by the
state, and municipal governments, corporate awards that the organization has made a organization.
stocks and bonds, and other publicly traded commitment to pay other organizations or Line 64b—Mortgages and other notes
securities (defined in the instructions for line individuals, whether or not the commitments payable
8) do not have to be listed individually, except have been communicated to the grantees.
for stock holdings that represent 5% or more Enter the amount of mortgages and other
of the outstanding shares of stock of the Line 62—Support and revenue designated notes payable at the beginning and end of
same class. However, show separate totals for future periods the year. Attach a schedule showing, as of
for each type of security (U.S. Government Enter the amount of contributions, the end of the year, the total amount of all
obligations, corporate stocks, etc.). Do not governmental fees or grants, grants from mortgages payable and, for each
include amounts reported on line 46. Report foundations or other organizations, and other nonmortgage note payable, the name of the
dividends and interest from these securities fees and support that contributors or grantors lender and the other information specified in
on line 5. have designated as payable for or applicable items 2 through 10 of the instructions for line
to one or more future years, either by the 50. The schedule should also identify the
terms of the gift or by the terms of the relationship of the lender to any officer,

Page 17
director, trustee, or key employee of the Organizations not using fund accounting.— administrative officials of an organization
organization. If the organization does not use fund (such as an executive director or chancellor)
accounting, check the box above line 71 and but does not include the heads of separate
Line 65—Other liabilities
report account balances on lines 71 through departments or smaller units within an
List and show the amount of each liability not 73. Report net assets on line 74. Also organization.
reportable on lines 60 through 64. Attach a complete line 75 to report the sum of the
separate schedule if more space is needed. total liabilities and net assets. Column (C)
For each person listed, report salary, fees,
Line 66—Total liabilities Line 71—Capital stock or trust principal
bonuses, and severance payments paid.
Enter the total of lines 60 through 65. For corporations, enter the balance per books Include current-year payments of amounts
for capital stock accounts. Show par or reported or reportable as deferred
Lines 67 through 74—Fund balances or net stated value (or for stock with no par or compensation in any prior year.
assets stated value, total amount received upon
Organizations using fund accounting.—If issuance) of all classes of stock issued and, Column (D)
the organization uses fund accounting, check as yet, uncancelled. For trusts, enter the Include in this column all forms of deferred
the box above line 67 and complete lines 67 amount in the trust principal or corpus compensation (whether or not funded;
through 70 to report the various fund account. whether or not vested; and whether or not
balances. Complete line 74 to report the sum the deferred compensation plan is a qualified
of the fund balances and complete line 75 to Line 72—Paid-in or capital surplus
plan under section 401(a)). Include also
report the sum of the total liabilities and fund Enter the balance per books for all paid-in payments to welfare benefit plans on behalf
balances. capital in excess of par or stated value for all of the officers, etc. Such plans provide
Under fund accounting, an organization stock issued and uncancelled. If stockholders benefits such as medical, dental, life
segregates its assets, liabilities, and net or others gave donations that the organization insurance, severance pay, disability, etc.
assets into separate funds according to records as paid-in capital, include them here. Reasonable estimates may be used if precise
externally imposed restrictions on the use of Report any current-year donations you cost figures are not readily available.
certain assets; similar designations by the included on line 72 in Part I, line 1. Unless the amounts were reported in
organization’s governing board; and other Line 73—Retained earnings or column (C), report, as deferred compensation
amounts that are unrestricted as to use. Each accumulated income in column (D), salaries and other
fund is like a separate entity in that it has a compensation earned during the period
self-balancing set of accounts showing For corporations, enter the balance in the covered by the return, but not yet paid by the
assets, liabilities, equity (fund balance), retained earnings or similar account minus date the organization files its return.
revenue, and expenses. Since these funds the cost of any corporate treasury stock. For
are actually part of a single entity, they are all trusts, enter the balance per books in the Column (E)
included in that organization’s own financial accumulated income or similar account. Enter both taxable and nontaxable fringe
statements. Similar accounts in the various Line 74—Total fund balances or net assets benefits (other than de minimis fringe benefits
funds may or may not be consolidated in described in section 132(e)). Include expense
those statements according to the For organizations that use fund accounting, allowances or reimbursements that the
organization’s preference and practice. Parts enter the total of lines 67 through 70. For all recipients must report as income on their
I, II, IV, and VII of this form, however, other organizations, enter the total of lines 71 separate income tax returns. Examples
require such consolidation. Net changes through 73. Enter the beginning-of-the-year include amounts for which the recipient did
within the various funds during the year are figure of line 74, column (A) in Part I, line 19. not account to the organization or allowances
shown in the fund balances section (lines 67 The end-of-the-year figure of line 74, column that were more than the payee spent on
through 70) of the balance sheet. (B) must agree with the figure on line 21 of serving the organization. Include payments
Part I. made under indemnification arrangements,
Some states that accept Form 990 as their
basic reporting form may require a separate Line 75—Total liabilities and fund the value of the personal use of housing,
statement of changes in fund balances. See balances/net assets automobiles, or other assets owned or leased
General Instruction E. by the organization (or provided for the
Enter the total of lines 66 and 74. This organization’s use without charge), as well as
Lines 67a and 67b—Current funds amount must equal the amount for total any other taxable and nontaxable fringe
assets reported on line 59 for both the benefits. See Pub. 525 for more information.
Enter the fund balances per books of the beginning and end of the year.
current unrestricted fund and the current Compensation from related organizations
restricted fund. Part V—List of Officers, Answer “Yes” to the question at the end of
Line 68—Land, building, and equipment Directors, Trustees, and Key Part V only if an officer, director, trustee, or
fund Employees key employee of the organization received
Enter the fund balance per books for the more than $10,000 in compensation from
List each person who was an officer, director, related organizations (defined below) AND
land, building, and equipment fund (plant trustee, or key employee (defined below) of
fund). such compensation when added to the
the organization at any time during the year compensation provided to that individual by
Line 69—Endowment fund even if they did not receive any compensation the filing organization totaled more than
from the organization. Enter a zero in $100,000. For this purpose, “compensation”
Enter the total of the fund balances for the columns (C), (D), or (E) if no compensation,
permanent endowment fund and any term includes any amount that would be reportable
contributions, expenses and other allowances in column (C), (D), or (E) of Part V if provided
endowment funds. Report annuity and life were paid during the reporting year, or
income fund balances on this line if not by the filing organization.
deferred for payment to a future accounting
significant in amount or report them on line period. Use an attachment if there are more Organizations answering “Yes” must attach
70. Do not include the fund balances of any than four persons to list in Part V. a schedule that lists, for each officer, director,
quasi-endowment funds (funds functioning as trustee, or key employee receiving such
endowment) or other internally designated Show all forms of cash and noncash compensation, the name of each related
funds. compensation received by each listed officer, organization that provided the compensation
etc., whether paid currently or deferred. and the amount each provided. Report in the
Line 70—Other funds The organization may also provide an same format as required by columns (C)
Enter the total of the fund balances for all attachment to explain the entire 1993 through (E) of Part V.
funds not reported on lines 67 through 69. compensation package for any person listed Providing information on compensation
Indicate the type of fund in the space in Part V. received from related organizations does not
provided or on an attachment if more than A “key employee” is any person having violate the disclosure provisions of section
one fund is involved. On the attachment, responsibilities or powers similar to those of 7216(a). See section 6033(a)(1).
show the beginning- and end-of-year fund officers, directors, or trustees. The term
balance for each fund listed. A “related organization” is any entity
includes the chief management and (whether tax-exempt or taxable) that the filing
Page 18
organization directly or indirectly owns or Line 77—Changes in organizing or assets took place through a series of related
controls, or that directly or indirectly owns or governing documents dispositions depends on the facts in each
controls the filing organization. For example, if case.
Attach a conformed copy of any changes to
Organization A owns 90% of B, and B owns See Regulations section 1.6043-3 for
the articles of incorporation, constitution, trust
80% of C, then A would directly own 90% of special rules and exceptions.
instrument, or other organizing document, or
B and indirectly own 72% (90% of 80%) of C.
to the bylaws or other governing document. Line 80—Relation to other organizations
“Owns” means holding (directly or
A “conformed” copy is one that agrees with
indirectly) 50% or more of the voting Answer “Yes” if most of the organization’s
the original document and all amendments to
membership rights, voting stock, profits governing body, officers, trustees, or
it. If the copies are not signed, they must be
interest, or beneficial interest. membership are also officers, directors,
accompanied by a written declaration signed
“Control” means that: by an officer authorized to sign for the trustees, or members of any other
organization.
1. Fifty percent (50%) or more of the filing organization, certifying that they are complete
organization’s officers, directors, trustees, or and accurate copies of the original Disregard any coincidental overlap of
key employees are also officers, directors, documents. membership with another organization; that
trustees, or key employees of the second Photocopies of articles of incorporation is, when membership in one organization is
organization being tested for control; not a condition of membership in another
showing the certification of an appropriate
state official do not have to be accompanied organization. For example, assume that a
2. The filing organization appoints 50% or
majority of the members of a section 501(c)(4)
more of the officers, directors, trustees, or by such a declaration. See Rev. Proc. 68-14,
1968-1 C.B. 768, for details. When a number civic organization also belong to a local
key employees of the second organization; or
chamber of commerce described in section
3. Fifty percent (50%) or more of the filing of changes are made, attach a copy of the
entire revised organizing instrument or 501(c)(6). The civic organization should
organization’s officers, directors, trustees, or answer “No” on line 80 if it does not require
key employees are appointed by the second governing document.
its members to belong to the chamber of
organization. Line 78—Unrelated business income commerce.
Whether or not any elements of ownership Check “Yes” on line 78a if the organization’s Also disregard affiliation with any statewide
or control are present, a related organization total gross income from all of its unrelated or nationwide organization. Thus, the civic
also includes: trades and businesses is $1,000 or more for organization in the above example would still
● A supporting organization operated in the year. Gross income is gross receipts less answer “No” on line 80 even if it belonged to
connection with the filing organization where the cost of goods sold. See Pub. 598 for a a state or national federation of similar
one of the purposes of the supporting description of unrelated business income and organizations. A local labor union whose
organization is to benefit or further the the Form 990-T filing requirements for section members are also members of a national
purposes of the filing organization; and 501(c), 501(e), 501(f), and 501(k) organizations labor organization would answer “No” on line
● A supported organization operated in having such income. Form 990-T is not a 80.
connection with the filing organization where substitute for Form 990. Report on Form Line 81—Expenditures for political
one of the purposes of the filing organization 990 items of income and expense also purposes
is to benefit or further the purposes of the reported on Form 990-T when the
supported organization. organization is required to file both forms. A political expenditure is one intended to
influence the selection, nomination, election,
For example, a hospital auxiliary that raises Note: All tax-exempt organizations must pay
estimated taxes with respect to their unrelated or appointment of anyone to a Federal, state,
funds for Hospital Y or coordinates the efforts or local public office, or office in a political
of that hospital’s volunteer staff would be a business income if they expect their tax
organization, or the election of Presidential or
supporting organization of Hospital Y and, liability to be $500 or more. Use Form 990-W
Vice Presidential electors. It does not matter
thus, a related organization even if the to compute this tax.
whether the attempt succeeds.
hospital does not own or control the auxiliary. Line 79—Liquidation, dissolution,
Hospital Y, in turn, would be a supported An expenditure includes a payment,
termination, or substantial contraction distribution, loan, advance, deposit, or gift of
organization of the auxiliary. In any case
where the $10,000 and $100,000 minimums For a complete liquidation of a corporation or money, or anything of value. It also includes a
were met, the hospital must report (on an termination of a trust, check the “Final return” contract, promise, or agreement to make an
attachment to its return) the compensation box in the heading of Form 990. If there was expenditure, whether or not legally
paid by the auxiliary to the officer, director, a liquidation, dissolution, termination, or enforceable.
trustee, or key employee of the hospital. The substantial contraction, attach a statement All section 501(c) organizations.—Section
same reporting requirement would apply to explaining what took place. 501(c) organizations must file Form 1120-POL
compensation paid by Hospital Y to an On the attached statement, show whether if their political expenditures and their net
officer, etc., of the auxiliary. the assets have been distributed and the date investment income both exceed $100 for the
of distribution. Also attach a certified copy of year.
Part VI—Other Information any resolution, or plan of liquidation or Section 501(c) organizations that
Note: Section 501(c)(3) organizations and termination, etc., with all amendments or maintained separate segregated funds
section 4947(a)(1) nonexempt charitable trusts supplements not already filed. In addition, described in section 527(f)(3) should refer to
must also complete and attach a Schedule A attach a schedule listing the names and the instructions for Form 1120-POL for filing
(Form 990) to their Form 990 (or Form addresses of all persons who received the requirements.
990-EZ). See General Instruction D1. assets distributed in liquidation or termination, Section 501(c)(3) organizations.—A section
the kinds of assets distributed to each one, 501(c)(3) organization will lose its tax-exempt
Line 76—Change in activities and each asset’s fair market value. status if it engages in political activity.
Attach a statement explaining any significant A “substantial contraction” is a partial A section 501(c)(3) organization must pay
changes in the kind of activities the liquidation or other major disposition of an excise tax for any amount paid or incurred
organization conducts to further its exempt assets except transfers for full consideration on behalf of, or in opposition to, any
purpose. Include new or modified activities or distributions from current income. candidate for public office. The organization
not listed as current or planned in the A “major disposition of assets” means any must pay an additional excise tax if it fails to
organization’s application for recognition of disposition for the tax year that is: correct the expenditure timely.
exemption, or not yet reported to the IRS by
a letter to its key district director or by an 1. At least 25% of the fair market value of A manager of a section 501(c)(3)
attachment to the organization’s return for the organization’s net assets at the beginning organization who knowingly agrees to a
any earlier year. Also include any major of the tax year; or political expenditure must pay an excise tax,
program activities that are being 2. One of a series of related dispositions unless the agreement is not willful and there
discontinued. begun in earlier years that, together, add up is reasonable cause. A manager who does
to at least 25% of the net assets the not agree to a correction of the political
organization had at the beginning of the tax expenditure may have to pay an additional
year when the first disposition in the series excise tax.
was made. Whether a major disposition of
Page 19
 When an organization promotes a Specific guidelines regarding this exception any dues paid to another organization that
candidate for public office (or is used or are provided in Announcement 94-8, 1994-3 are allocable to lobbying or political activities.
controlled by a candidate or prospective I.R.B. 32. This announcement contains a If the organization’s in-house direct
candidate), amounts paid or incurred for the proposed revenue procedure that the IRS will lobbying expenditures after 1993 were $2,000
following purposes are political expenditures: follow until a final procedure is adopted. or less, but the organization also made other
● Remuneration to the individual (a candidate These guidelines treat the following classes of lobbying or political expenditures after 1993,
or prospective candidate) for speeches or organizations as meeting the section it should answer “No” to question 85b and
other services; 6033(e)(3) exception: complete lines 85c through 85h. However, the
● Travel expenses of the individual; 1. Section 501(c)(4) and (5) organizations that $2,000 or less of in-house direct lobbying
do not receive annual dues (or similar expenditures should not be included in the
● Expenses of conducting polls, surveys, or amounts) of more than $50 from any member. total on line 85d.
other studies, or preparing papers or other
material for use by the individual; If some members pay more than $50, this Line 85c—Dues, assessments, and similar
exception is still considered met if the total of amounts received
● Expenses of advertising, publicity, and all dues (and similar amounts) paid by these
fundraising for such individual; and Enter the total of dues, assessments, and
members is not more than 10% of the total
● Any other expense that has the primary dues (and similar amounts) paid by all similar amounts assessed or collected in
effect of promoting public recognition or members. 1993 or 1994 that are allocable to January
otherwise primarily accruing to the benefit of 1994 or later. For example, if a member paid
2. Local associations of employees’ and dues in October 1993 for the period
the individual. veterans’ organizations described in section
Use Form 4720 to figure and report the November 1993 through October 1994,
501(c)(4), but not social welfare organizations. include only the dues allocable to the period
excise taxes. 3. Labor unions and other labor organizations from January 1994 through October 1994.
Line 82—Donated services or facilities described in section 501(c)(5), but not (See General Instruction S for definition of
agricultural and horticultural organizations. dues, etc.)
Because Form 990 is open to public
inspection, you may want the return to show 4. Section 501(c)(4), (5), and (6) organizations
Line 85d—Lobbying and political
contributions the organization received in the more than 90% of whose members are expenditures
form of donated services or the use of section 501(c)(3) organizations.
materials, equipment, or facilities at less than 5. Any organization that receives a private Include the total amount paid or incurred after
fair rental value. If so, and if the letter ruling from the IRS that it satisfies the 1993 in connection with: (a) influencing
organization’s records either show the section 6033(e)(3) exception. legislation; (b) participating or intervening in
amount and value of such items or give a any political campaign on behalf of (or in
6. Any organization that is not a membership opposition to) any candidate for any public
clearly objective basis for an estimate, you organization.
may enter the information on line 82b. The office; (c) attempting to influence any
If your organization meets any of the above segment of the general public with respect to
IRS does not require any organization to keep
such records. Do not include the value of criteria, answer "Yes" to question 85a and elections, legislative matters or referendums;
such items in Part I or II or in the expense skip lines 85b through 85h. or (d) communicating directly with a covered
column in Part III. However, you may indicate executive branch official (e.g., President, Vice
Line 85b—In-house lobbying expenditures
the value of donated services or use of President, or cabinet-level officials, and their
materials, equipment, or facilities in Part III in All organizations filing Form 990 for an immediate deputies) in an attempt to
accounting period (taxable year) ending on or influence the official actions or positions of
the narrative description of program services
before December 31, 1993, should answer such official.
rendered. See the instructions for Part III.
“Yes” to question 85b and skip lines 85c However, do not include any direct
Line 83—Public inspection requirements through 85h. lobbying (defined in the line 85b instructions)
Answer “Yes” only if the organization In addition to the exceptions listed in the relating to legislation of any local council or
complied with its public inspection obligations instructions for line 85a, an organization is similar governing body. Also exclude in-house
described in General Instruction L. exempt from the notice, reporting, and direct lobbying expenditures (defined in the
potential tax liability rules of section 6033(e) if line 85b instructions) if the total of such
Line 84a—Solicitations of contributions it made no political expenditures after 1993 expenditures is $2,000 or less (excluding
All organizations that qualify under section and its only lobbying expenditures (if any) allocable overhead expenses).
170(c) to receive contributions that are after 1993 consisted of in-house direct
lobbying expenditures aggregating $2,000 or Line 85e—Dues declared nondeductible in
deductible as charitable contributions for
less, excluding any allocable overhead notices to members
Federal income tax purposes, enter “N/A.”
See Items To Note and General Instructions expenses. An organization should answer If, at the time that dues (or similar amounts)
M and S. “Yes” to question 85b if it met both of these for 1994 were assessed or collected, the
requirements. (See Note above on organization notified its members of its
Line 85—Section 501(c)(4), (5), or (6) disregarding expenses made to affect reasonable estimate of the portion of the
organizations legislative action of any local council or dues that would not be deductible under
Section 501(c)(4), (5), and (6) membership similar governing body.) section 162(e), enter the total amount of such
organizations generally are subject to notice “Direct lobbying” includes direct contact 1994 dues (or similar amounts) that the
and reporting requirements and potential tax with legislators, legislative branch officials and members were notified were nondeductible.
liability with respect to lobbying and political staff, and executive branch officials regarding For example, if members who paid a total of
expenditures after 1993. See General legislative matters or direct contact with $100,000 of 1994 dues were timely notified
Instruction S. covered Federal Executive Branch officials that 25% of their dues would be
Note: On lines 85b through 85h, disregard regarding their official action or positions. nondeductible, the amount to enter on line
any direct lobbying expenditures relating to Direct lobbying does not include any attempt 85e would be $25,000.
legislation of any local council or similar to influence any segment of the general Line 85f—Taxable lobbying and political
governing body and any overhead expenses public regarding legislative matters or expenditures
allocable to such lobbying. referendums (grassroots lobbying).
The amount on line 85f represents the
Line 85a—Section 6033(e)(3) exception for “In-house expenditures” include salaries
amount of 1994 dues (and similar amounts)
and other expenses of the organization’s
nondeductible dues attributable to 1994 lobbying and political
officials and staff (including amounts paid or
Section 6033(e)(3) provides an exception for expenditures that the organization did not, in
incurred for research for, or preparation,
any organization substantially all of whose timely notices, inform members were
planning or coordination of, legislative
dues would not be deductible by members as nondeductible.
activities), but does not include any payments
business expenses or employee business to other taxpayers engaged in lobbying or Line 85d less line 85e produces the correct
expenses whether or not the organization political activities as a trade or business. result in the usual situation in which the dues,
made any lobbying and political expenditures. In-house expenditures also do not include assessments, and similar amounts on line 85c

Page 20
are GREATER than the lobbying and political account pursuant to Notice 93-55 or a and report its investment income along with
expenditures reported on line 85d. waiver.) the organization’s other unrelated business
However, a different computation is needed income if the combined amount of gross
Work papers—Organization B investment income and other unrelated
when the dues, assessments, and similar
amounts entered on line 85c are LESS than 1. Dues, assessments, and similar amounts $400 business income exceeds $1,000.
the lobbying and political expenditures 2. Lobbying expenses $600 Nondiscrimination policy.—A section
entered on line 85d. In that event, the taxable 3. Less: Total nondeductible amount of dues 501(c)(7) organization is not exempt from
notices 100 100
amount of lobbying and political expenditures 4. (Subtract line 3 from both lines 1 and 2.) $300 $500
income tax if any written policy statement,
to enter on line 85f is limited to the dues, 5. Taxable amount of lobbying expenses including the governing instrument and
etc., on line 85c less the amount reflected in (Smaller of the two amounts on line 4) $300 bylaws, allows discrimination on the basis of
nondeductible dues notices on line 85e. Also, race, color, or religion.
the excess lobbying and political Note: The amounts on lines 1, 2, 3, and 5 of
the work papers were entered on lines 85c However, section 501(i) allows social clubs
expenditures (line 85d less line 85c) must be to retain their exemption under section
carried over to the following taxable year and through 85f of the 1993 Form 990. Excess
lobbying expenses of $200 are to be carried 501(c)(7) even though their membership is
treated as lobbying and political expenditures limited (in writing) to members of a particular
of that year (reportable on line 85d or forward to the 1994 Form 990 (excess of
$600 of lobbying expenses over $400 dues, religion if:
equivalent of the 1994 form).
etc., received). The $200 will be included 1. The social club is an auxiliary of a
Lines 85g and 85h—Elections along with the other lobbying and political fraternal beneficiary society that is exempt
In accordance with Notice 93-55, 1993-35 expenses paid or incurred in the fiscal year under section 501(c)(8) and limits its
I.R.B. 21, an organization has the option of beginning in 1994 and reported on line 85d membership to the members of a particular
paying the section 6033(e)(2) tax on the (or the equivalent line) of the 1994 Form 990. religion; or
amount reported on line 85f or agreeing to (The organization has the option of either 2. The social club’s membership limitation
increase its following year’s reasonable paying the tax on $300 (on the 1993 Form is a good-faith attempt to further the
estimate of dues allocable to nondeductible 990-T) or adjusting its nondeductible dues teachings or principles of that religion, and
lobbying and political expenditures pursuant notifications in the following year to take the the limitation is not intended to exclude
to Notice 93-55 or a waiver granted by the $300 into account pursuant to Notice 93-55 individuals of a particular race or color.
IRS. or a waiver.)
Line 87—Section 501(c)(12) organizations
If the organization elects to pay the tax, it Underreporting of lobbying expenses.—All
should answer “Yes” to question 85g (and underreported lobbying and political One of the requirements that an organization
“No” to question 85h) and report the tax on expenditures are subject to the section must meet to qualify under section 501(c)(12)
Form 990-T in accordance with that form’s 6033(e) tax for the year the expenditures were is that at least 85% of its gross income
instructions. If the organization elects to made. The organization does not have the consists of amounts collected from members
increase its following year’s reasonable option of increasing its reasonable estimate of for the sole purpose of meeting losses and
estimate of nondeductible dues contained in nondeductible dues (in its notices to expenses. For purposes of section 501(c)(12),
its notifications to members instead of paying members) for the following year to offset the the term “gross income” means gross
the tax, it should answer “Yes” to question underreported amount. receipts minus cost of goods sold.
85h and “No” to question 85g. If the amount Underreporting lobbying and political For a mutual or cooperative electric or
on line 85f is negative, enter “N/A” (Not expenditures may also subject the telephone company, “gross income” does not
Applicable) on lines 85g and 85h. organization to the $10 per day penalty under include amounts received or accrued as
Examples. Organizations A and B, whose section 6652(c) for filing an incomplete or “qualified pole rentals” or from the
fiscal accounting period began in 1993 and inaccurate return. prepayment of a loan under the Rural
ended in 1994, made the following Electrification Act of 1936 (see section
Line 86—Section 501(c)(7) organizations 501(c)(12)(B), (C), and (D)).
calculations in their work papers for their
1993 Form 990. These organizations incurred Gross receipts test.—A section 501(c)(7) For a mutual or cooperative telephone
only grassroots lobbying expenses that do organization may receive up to 35% of its company, “gross income” also does not
not qualify for the under $2,000 in-house gross receipts, including investment income, include amounts received or accrued either
lobbying exception (de minimis rule). from sources outside its membership and from another telephone company for
remain tax-exempt. Part of the 35% (up to completing long distance calls to or from or
For Organization A, dues, assessments, 15% of gross receipts) may be from public
and similar amounts allocable to January between the telephone company’s members,
use of a social club’s facilities. or from the sale of display listings in a
1994 or later were greater than its lobbying
expenses after December 1993. For this purpose, “gross receipts” are the directory furnished to the telephone
club’s income from its usual activities. The company’s members.
However, for Organization B, the opposite term includes charges, admissions,
occurred; i.e., lobbying expenses for 1994 Line 88
membership fees, dues, assessments,
were greater than the dues, assessments, investment income (such as dividends, rents, If you answer “Yes” to this question,
and similar amounts allocable to January and similar receipts), and normal recurring complete Part IX, Information Regarding
1994 or later. Thus, for Organization B, its capital gains on investments. Gross receipts Taxable Subsidiaries.
excess lobbying expenses must be carried do not include capital contributions (as
forward to its 1994 Form 990. Line 89—Public interest law firms
defined in Regulations section 1.118-1),
initiation fees, or unusual amounts of income A public interest law firm exempt under
Work papers—Organization A
such as income received from the club’s section 501(c)(3) or 501(c)(4) must attach a
1. Dues, assessments, and similar amounts $800 selling its clubhouse. Although gross receipts statement that lists the cases in litigation, or
2. Lobbying expenses $600 usually do not include initiation fees, these that have been litigated during the year. For
3. Less: Total nondeductible amount of dues each case, describe the matter in dispute and
notices 100 100
should be included for college fraternities or
4. (Subtract line 3 from both lines 1 and 2.) $700 $500 sororities or other organizations that charge explain how the litigation will benefit the
5. Taxable amount of lobbying expenses membership initiation fees, but not annual public generally. Also attach a report of all
(Smaller of the two amounts on line 4) $500 dues. fees sought and recovered in each case. See
If the 35% and 15% limits do not affect the Rev. Proc. 92-59, 1992-2 C.B. 411.
Note: The amounts on lines 1, 2, 3, and 5 of
the work papers were entered on lines 85c club’s exempt status, include the income Line 90—List of states
through 85f of the 1993 Form 990. Because shown on line 86b on the club’s Form 990-T.
List each state with which the organization is
dues, etc., received were greater than Investment income earned by a section filing a copy of this return in full or partial
lobbying expenses, there is no carryover of 501(c)(7) organization is not tax-exempt satisfaction of state filing requirements.
lobbying expenses to the 1994 Form 990. income unless it is set aside to be used only
(The organization has the option of either for religious, charitable, scientific, literary, or Line 92—Section 4947(a)(1) nonexempt
paying the tax on $500 (on Form 990-T) or educational purposes, or for the prevention of charitable trusts
adjusting its nondeductible dues notifications cruelty to children or animals. The Section 4947(a)(1) nonexempt charitable
in the following year to take the $500 into organization is required to file Form 990-T trusts that file Form 990 instead of Form 1041
Page 21
must complete this line. The trust should excludable from unrelated business taxable organizations. Report rental income, however,
include exempt-interest dividends received income. If more than one exclusion code from an exempt function (program service) on
from a mutual fund or other regulated applies to a particular revenue item, use the line 93. Refer to the instructions for Part I,
investment company as well as tax-exempt lowest numbered exclusion code that applies. line 6. A more detailed discussion of rental
interest received directly. If nontaxable revenues from several sources income is given in the Instructions for Form
are reportable on the same line in column (D), 990-T and Pub. 598.
Part VII—Analysis of use the exclusion code that applies to the Rents from real property are usually
Income-Producing Activities largest revenue source. If the list of exclusion excluded in computing unrelated business
codes does not include an item of revenue taxable income, as are incidental amounts
An organization is exempt from income taxes
that is excludable from unrelated business (10% or less) of rental income from personal
only if its primary purpose is to engage in the
taxable income, enter that item in column (E) property leased with real property (mixed
type of activity for which it claims exemption.
and see the instruction for column (E). lease). In a mixed lease where the rent
An exempt organization is subject to a tax
Column (D) attributable to personal property is more than
on unrelated business taxable income if such
50% of the total rent, neither rent from real or
income is from a trade or business that is For column (D), identify any revenue received personal property is excluded from unrelated
regularly carried on by the organization and is that is excludable from unrelated business business taxable income. The exclusion also
not substantially related to the organization’s taxable income. If you enter an amount in does not apply when the real or personal
performance of its exempt purpose or column (D), you must enter an exclusion code property rentals depend wholly or partly on
function. Generally, a tax-exempt organization in column (C). the income or profits from leased property,
with gross income of $1,000 or more for the
Column (E) other than an amount based on a fixed
year from an unrelated trade or business
percentage or percentage of gross receipts or
must file Form 990-T and pay any tax due. For column (E), report any revenue from sales.
In Part VII, show whether revenue, also activities related to the organization’s exempt
purpose; that is, income received from The rental exclusion from unrelated
reportable on lines 2 through 11 of Part I, was
activities that form the basis of the business taxable income does not apply to
received from activities related to the
debt-financed real property. In general,
organization’s purpose or activities unrelated organization’s exemption from taxation. Also
report here any revenue that is excludable debt-financed property is any property that
to its exempt purpose. Enter gross amounts
from gross income other than by Code the organization finances by debt and holds
unless indicated otherwise. Show also any
section 512, 513, or 514, such as interest on to produce income instead of for exempt
revenue excludable from the definition of
state and local bonds that is excluded from purposes. An exempt organization’s income
unrelated business taxable income.
tax by section 103. Explain in Part VIII how from debt-financed property is treated as
The sum of amounts entered in columns unrelated business taxable income and is
(B), (D), and (E) for lines 93 through 103 of any amount reported in column (E) related to
the accomplishment of the organization’s subject to tax in the same proportion as the
Part VII should match amounts entered for property remains financed by the debt. If
correlating lines 2 through 11 of Part I. Use exempt purposes.
substantially all (85% or more) of any
the following table to verify the relationship of Lines 93(a) through (f)—Program service property is used for an organization’s exempt
Part VII with Part I. Note that contributions revenue purposes, the property is not treated as
that are reportable on lines 1a through 1d of debt-financed property. The rules for
Part I are not reportable in Part VII. List the organization’s revenue-producing
debt-financed property do not apply to rents
program service activities on these lines.
Amounts in Correspond to Program service activities are primarily those from personal property.
Part VII on Amounts in that form the basis of an organization’s Lines 99 through 102
Line Part I on Line exemption from tax. Enter, in the appropriate
In the appropriate columns, report the
93(a) through (g) 2 columns, gross revenue from each program
service activity and the business and revenue received for these line items. General
94 3 instructions for lines 99 through 102 are given
exclusion codes that identify this revenue.
95 4 See the explanation of program service in the instructions for Part I, lines 7 through
96 5 10.
revenue in the instructions for Part I, line 2.
97 and 98 6c Lines 103(a) through (e)—Other revenue
Line 93(g)—Fees and contracts from
99 7 government agencies List any “Other revenue” activity on these
100 8d lines. These activities are discussed in the
In the appropriate columns, enter gross
instructions for line 11, Part I. In the
101 9c revenue earned from fees and contract
appropriate columns, enter the revenue
102 10c payments by government agencies for a
received from these activities. Select
service, facility, or product that benefited the
103(a) through (e) 11 government agency primarily, either applicable business and exclusion codes.
105 (plus line 1d, Part I) 12 Report as “Other revenue,” on line 11 of
economically or physically. Do not include
government grants that enabled your Part I, the total revenue entered in columns
Completing Part VII organization to benefit the public directly and (B), (D), and (E) for lines 103(a) through (e).
Column (A) primarily. See Part I, line 1c instructions for Line 105—Total
the distinction between government grants
In column (A), identify any unrelated business Enter the total revenue reported on line 104
that represent contributions and payments
taxable income reportable in column (B) by for columns (B), (D), and (E). The amount
from government agencies for a service,
selecting a business code from the Codes for reported on line 105, plus the amount on line
product, or facility that primarily benefited the
Unrelated Business Activity in the Instructions 1d of Part I, should equal the amount entered
government agencies.
for Form 990-T. for “Total revenue” on line 12 of
Report on line 2 of Part I (program service Part I.
Column (B) revenue) the sum of the entries in columns
In column (B), enter any revenue received (B), (D), and (E) for lines 93(a) through (g). Part VIII—Relationship of
from activities unrelated to the exempt Lines 94 through 96—Dues, assessments, Activities to the
purpose of the organization. See the interest and dividends Accomplishment of Exempt
Instructions for Form 990-T and Pub. 598 for
a discussion of what is unrelated business In the appropriate columns, report the Purposes
taxable income. If you enter an amount in revenue received for these line items. General
To explain how an amount entered in Part VII,
column (B), then you must enter a business instructions for lines 94 through 96 are given
column (E), was related or exempt function
code in column (A). in the instructions for Part I, lines 3 through 5.
income, show the line number of the amount
Column (C) Lines 97 and 98—Rental income (loss) in column (E) and give a brief description of
how the activity reported in column (E)
In column (C), enter an exclusion code from Report net rental income from investment
specifically contributed to the
the Exclusion Codes list on the last page of property on these lines. Also report here
accomplishment of the organization’s exempt
these instructions to identify any revenue rental income from unaffiliated exempt
Page 22
purposes (other than by providing funds for column (E), do not complete the students’ training and related to the
such purposes). Activities that generate Part VIII. exempt purpose of the organization.
exempt-function income are activities that Example. M, an organization described in Because M also reported interest from
form the basis of the organization’s section 501(c)(3), operates a school for the state bonds in column (E) of Part VII, M
exemption from tax. performing arts. Admission is charged at explained in Part VIII that such interest was
Also give the line number and an student performances. M reported admission excluded from gross income by Code
explanation for any income entered in column income in column (E) of Part VII and section 103.
(E) that is specifically excluded from gross explained in Part VIII that performances
income other than by Code sections 512, before an audience were an essential part of Part IX—Information Regarding
513, or 514. If no amount is entered in Taxable Subsidiaries
Complete this Part if you answered “Yes” to
question 88 of Part VI.

Page 23
 Exclusion Codes
Note: Items in italics are effective on or after January 1, 1994 (Revenue Reconciliation Act of 1993).
General Exceptions 17— Rent from personal property leased with Debt-financed Income
real property and incidental (10% or less) in
01— Income from an activity that is not regularly 30— Income exempt from debt-financed
relation to the combined income from the
carried on (section 512(a)(1)) (section 514) provisions because at least
real and personal property (section
02— Income from an activity in which labor is a 85% of the use of the property is for the
512(b)(3))
material income-producing factor and organization’s exempt purposes (This
18— Gain (or loss, to the extent allowed) from code is only for income from the 15% or
substantially all (at least 85%) of the work
the sale of investments and other less non-exempt purpose use.) (section
is performed with unpaid labor (section
non-inventory property and from certain 514(b)(1)(A))
513(a)(1))
inventory property acquired from financial
03— Section 501(c)(3) organization—Income 31— Gross income from mortgaged property
institutions that are in conservatorship or
from an activity carried on primarily for the used in research activities described in
receivership (section 512(b)(5))
convenience of the organization’s section 512(b)(7), (8), or (9) (section
19— Income or loss from the lapse or 514(b)(1)(C))
members, students, patients, visitors,
termination of options to buy or sell
officers, or employees (hospital parking lot 32— Gross income from mortgaged property
securities, or real property, and from the
or museum cafeteria, for example) (section used in any activity described in section
forfeiture of good-faith deposits for the
513(a)(2)) 513(a)(1), (2), or (3) (section 514(b)(1)(D))
purchase, sale, or lease of investment real
04— Section 501(c)(4) local association of property (section 512(b)(5)) 33— Income from mortgaged property
employees organized before 5/27/69— (neighborhood land) acquired for exempt
20— Income from research for the United
Income from the sale of work-related purpose use within 10 years (section
States; its agencies or instrumentalities; or
clothes or equipment and items normally 514(b)(3))
any state or political subdivision (section
sold through vending machines; food 34— Income from mortgaged property
512(b)(7))
dispensing facilities; or snack bars for the acquired by bequest or devise (applies to
convenience of association members at 21— Income from research conducted by a
income received within 10 years from the
their usual places of employment (section college, university, or hospital (section
date of acquisition) (section 514(c)(2)(B))
513(a)(2)) 512(b)(8))
35— Income from mortgaged property
05— Income from the sale of merchandise, 22— Income from research conducted by an
acquired by gift where the mortgage was
substantially all of which (at least 85%) was organization whose primary activity is
placed on the property more than 5 years
donated to the organization (section conducting fundamental research, the
previously and the property was held by
513(a)(3)) results of which are freely available to the
the donor for more than 5 years (applies
general public (section 512(b)(9))
to income received within 10 years from
Specific Exceptions 23— Income from services provided under the date of gift) (section 514(c)(2)(B))
06— Section 501(c)(3), (4), or (5) organization license issued by a Federal regulatory
36— Income from property received in return
conducting an agricultural or educational agency and conducted by a religious order
for the obligation to pay an annuity
fair or exposition—Qualified public or school operated by a religious order, but
described in section 514(c)(5)
entertainment activity income (section only if the trade or business has been
513(d)(2)) carried on by the organization since before 37— Income from mortgaged property that
May 27, 1959 (section 512 (b)(15)) provides housing to low and moderate
07— Section 501(c)(3), (4), (5), or (6)
income persons to the extent the
organization—Qualified convention and
trade show activity income (section
Foreign Organizations mortgage is insured by the Federal
24— Foreign organizations only—Income from a Housing Administration (section 514(c)(6))
513(d)(3))
trade or business NOT conducted in the (In many cases, this would be exempt
08— Income from hospital services described in function income reportable in column (E).
United States and NOT derived from United
section 513(e) It would not be so in the case of a
States sources (patrons) (section 512(a)(2))
09— Income from noncommercial bingo games section 501(c)(5) or (6) organization, for
that do not violate state or local law Social Clubs and VEBAs example, that acquired the housing as an
(section 513(f)) investment or as a charitable activity.)
25— Section 501(c)(7), (9), (17), or (20)
10— Income from games of chance conducted organization—Non-exempt function income 38— Income from mortgaged real property
by an organization in North Dakota (section set aside for a charitable, etc., purpose owned by: a school described in section
311 of the Deficit Reduction Act of 1984, specified in section 170(c)(4) (section 170(b)(1)(A)(ii); a section 509(a)(3) affiliated
as amended) 512(a)(3)(B)(i)) support organization of such a school; a
section 501(c)(25) organization, or by a
11— Section 501(c)(12) organization—Qualified 26— Section 501(c)(7), (9), (17), or (20) partnership in which any of the above
pole rental income (section 513(g)) organization—Proceeds from the sale of organizations owns an interest if the
12— Income from the distribution of low-cost exempt function property that was or will requirements of section 514(c)(9)(B)(vi) are
articles in connection with the solicitation of be timely reinvested in similar property met (section 514(c)(9))
charitable contributions (section 513(h)) (section 512(a)(3)(D))
13— Income from the exchange or rental of 27— Section 501(c)(9), (17), or (20) Special Rules
membership or donor list with an organization—Non-exempt function income 39— Section 501(c)(5) organization—Farm
organization eligible to receive charitable set aside for the payment of life, sick, income used to finance the operation and
contributions by a section 501(c)(3) accident, or other benefits (section maintenance of a retirement home,
organization; by a war veterans’ 512(a)(3)(B)(ii)) hospital, or similar facility operated by the
organization; or an auxiliary unit or society organization for its members on property
of, or trust or foundation for, a war
Veterans’ Organizations adjacent to the farm land (section
veterans’ post or organization (section 28— Section 501(c)(19) organization—Payments 1951(b)(8)(B) of Public Law 94-455)
513(h)) for life, sick, accident, or health insurance
for members or their dependents that are Trade or Business
Modifications and Exclusions set aside for the payment of such 40— Gross income from an unrelated activity
14— Dividends, interest, payments with respect insurance benefits or for a charitable, etc., that is regularly carried on but, in light of
to securities loans, annuities, income from purpose specified in section 170(c)(4) continuous losses sustained over a
notional principal contracts, loan (section 512(a)(4)) number of tax periods, cannot be
commitment fees, and other substantially 29— Section 501(c)(19) organization—Income regarded as being conducted with the
similar income from ordinary and routine from an insurance set-aside (see code 28 motive to make a profit (not a trade or
investments excluded by section 512(b)(1) above) that is set aside for payment of business)
15— Royalty income excluded by section insurance benefits or for a charitable,
512(b)(2) etc., purpose specified in section
170(c)(4) (Regulations section
16— Real property rental income that does not 1.512(a)–4(b)(2))
depend on the income or profits derived by
the person leasing the property and is
excluded by section 512 (b)(3)

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