2018 Instructions for Schedule A (Form 990 or 990 EZ)

Transcript

1 Userid: CPM Pt. size: 9.5 Schema: Leadpct: 100% Draft Ok to Print instrx (Init. & Date) _______ Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source AH XSL/XML Page 1 of 19 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Internal Revenue Service 18 20 Instructions for Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Section references are to the Internal Revenue same amounts that it reported in the 990, Form 990-EZ, or Schedule A (Form Code unless otherwise noted. 2014 through 2017 columns on the 990 or 990-EZ), but should file Form 2017 Schedule A (Form 990 or 990-EZ). 990-PF, Return of Private Foundation or For the latest Future developments. Section 4947(a)(1) Trust Treated as Example 2. An organization checks information about developments related Private Foundation. See instructions to “Accrual” on Form 990, Part XII, line 1. to Form 990 and its instructions, such as Part I . The organization reports grants on Form legislation enacted after they were 990, Part VIII, line 1, in accordance with . IRS.gov/Form990 published, go to the Financial Accounting Standards Accounting Method Board (see instructions FASB ASC 958 When completing Schedule A (Form General Instructions for Form 990, Part VIII, line 1). During 990 or 990-EZ), the organization must the year, the organization receives a use the same accounting method it are defined in the Note. Terms in bold grant to be paid in future years. The checked on Form 990, Part XII, line 1, or of the Instructions for Form Glossary organization should report the grant's Form 990-EZ, line G. The organization 990, Return of Organization Exempt present value on the 2018 Schedule A must use this accounting method in From Income Tax. (Form 990 or 990-EZ). The organization reporting all amounts on Schedule A should report accruals of present value (Form 990 or 990-EZ), regardless of the Purpose of Schedule increments to the unpaid grant on accounting method it used in Schedule A (Form 990 or 990-EZ) is Schedule A (Form 990 or 990-EZ) in completing Schedule A (Form 990 or used by an organization that files Form future years. 990-EZ) for prior years, except that in 990, Return of Organization Exempt Part V , Sections D and E, distributions From Income Tax, or Form 990-EZ, must be reported on the cash receipts Specific Instructions Short Form Return of Organization and disbursements method. Exempt From Income Tax, to provide the required information about public Part I. Reason for Public If the accounting method the charity status and public support. Charity Status organization used in completing the 2017 Schedule A (Form 990 or 990-EZ) Lines 1–12 (in general) Who Must File was different from the accounting Check only one of the boxes on lines 1 An organization that answered “Yes” to method checked on the 2018 Form 990, through 12 to indicate the reason the Form 990, Part IV, line 1, must complete Part XII, line 1, or the 2018 Form organization is a public charity for the and attach Schedule A (Form 990 or 990-EZ, line G, the organization tax year . The reason can be the same 990-EZ) to Form 990. Any section shouldn't report in either Part II or Part III as stated in the organization's 501(c)(3) organization (or organization the amounts reported in the applicable tax-exempt determination letter from the treated as such) that files a Form columns of the 2017 Schedule A (Form IRS (“exemption letter”) or subsequent 990-EZ must complete and attach this 990 or 990-EZ). Instead, the IRS determination letter, or it can be schedule to Form 990-EZ. These organization should report all amounts different. An organization that doesn't include: in Part III or Part II using the accounting check any of the boxes on lines 1 Organizations that are described in • method checked on the 2018 Form 990, through 12 shouldn't file Form 990, public section 501(c)(3) and are Part XII, line 1, or the 2018 Form Form 990-EZ, or Schedule A (Form 990 charities ; 990-EZ, line G. or 990-EZ) for the tax year, but should Organizations that are described in • If the organization changed its file Form 990-PF instead. sections 501(e), 501(f), 501(j), 501(k), accounting method from a prior TIP or 501(n); and If an organization believes there is year, it should provide an Nonexempt charitable trusts • more than one reason why it is a public explanation in Schedule O (Form 990 or described in section 4947(a)(1) that charity, it should check only one box but 990-EZ), Supplemental Information to aren’t treated as private foundations. can explain the other reasons it qualifies Form 990 or 990-EZ. for public charity status in . An Part VI If an organization isn’t required to file Example 1. An organization checks organization that claims a public charity Form 990 or 990-EZ but chooses to do “Cash” on Form 990, Part XII, line 1. It status other than section so, it must file a complete return and Part II should report the amounts in or 170(b)(1)(A)(vi) can also demonstrate provide all of the information requested, using the cash method. If the Part III that it qualifies under section including the required schedules. organization filed a 2017 Schedule A 170(b)(1)(A)(vi) by completing ; it Part II Any organization that is exempt (Form 990 or 990-EZ) using the cash may want to do so for purposes such as from tax under section 501(c)(3) TIP method, it should report in the 2014 qualifying for the first Special Rule in but is a private foundation and through 2017 columns on the 2018 Schedule B (Form 990, 990-EZ, or not a public charity shouldn't file Form Schedule A (Form 990 or 990-EZ) the Oct 25, 2018 Cat. No. 11294Q

2 Page 2 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. organization should check the box on 990-PF), Schedule of Contributors, by Line 1. , church Check the box for a 1 meeting the 33 . / line 10 and complete Part III 3 % support test. convention of churches, or association of churches. Pub. 1828, Tax Guide for Example 3. The organization The IRS doesn't update its records Churches and Religious Organizations, received an exemption letter that it is a on an organization's public charity lists certain characteristics generally public charity under section 509(a)(2). status based on a change the attributed to churches. These attributes For the tax year, it doesn't meet the organization makes on Schedule A of a church have been developed by the requirements for public charity status (Form 990 or 990-EZ). Thus, an IRS and by court decisions. They under section 509(a)(2) or organization that checks a public charity include: distinct legal existence, 170(b)(1)(A)(vi). Instead, it meets the status different from the reason stated in recognized creed and form of worship, requirements for public charity status as its exemption letter or subsequent definite and distinct ecclesiastical supporting organization under a determination letter, although not government, formal code of doctrine section 509(a)(3). The organization required, may submit a request to the and discipline, distinct religious history, should: IRS Exempt Organizations membership not associated with any Check the box for line 12 and 1. Determinations Office for a other church or denomination, either line 12a, 12b, 12c, or 12d; determination letter confirming that it organization of ordained ministers, qualifies for the new public charity 2. Complete lines 12e and 12f; ordained ministers selected after status if the organization wants the IRS Complete the table on line 12g; 3. completing prescribed courses of study, records to reflect that new public charity and literature of its own, established places status (also referred to as “private of worship, regular congregations, 4. Complete Part IV and (if foundation status”). See Form 8940, regular religious services, Sunday applicable) Part V . Request for Miscellaneous schools for the religious instruction of Determination, for instructions. A $400 Example 4. The organization the young, and schools for the user fee must be submitted with such a received an exemption letter that it is a preparation of its ministers. The IRS request. See Section 6.10 of Rev. Proc. under supporting organization generally uses a combination of these 2016-8, 2016-1 I.R.B. 243. section 509(a)(3). Based on Rev. Proc. characteristics, together with other facts 2016-10, 2016-2 I.R.B. 270, the and circumstances, to determine of a subordinate organization A organization submitted a Form 8940 whether an organization is considered a that is filing its own group exemption request to the IRS to change its church for federal tax purposes. return, but hasn't received its own tax classification to public charity status exemption determination letter from the Line 2. school Check the box for a under section 509(a)(2). For the tax IRS, should check the public charity whose primary function is the year, it meets the requirements of status box which most accurately presentation of formal instruction, which section 509(a)(2). The organization describes its public charity status. regularly has a faculty, a curriculum, an received a determination letter that it enrolled body of students, and a place has been reclassified as a public charity An organization that doesn't know where educational activities are under section 509(a)(2). The the public charity status stated in its regularly conducted. A private school organization should check the box on exemption letter or subsequent must have a racially nondiscriminatory line 10 and complete . Part III determination letter should call the policy toward its students. For details Exempt Organizations Customer The organization Example 5. about these requirements, see Account Services toll free at received an exemption letter that it is a Schedule E (Form 990 or 990-EZ), 1-877-829-5500 or write to: public charity under section Schools, and its related instructions. 170(b)(1)(A)(vi). For the tax year, it Internal Revenue Service An organization that checks the doesn't meet the requirements for public TE/GE Customer Account Services box on line 2 must also TIP charity status under section P.O. Box 2508 complete Schedule E (Form 170(b)(1)(A)(vi) or 509(a)(2), or as a Cincinnati, OH 45201 990 or 990-EZ), Schools. supporting organization under section 509(a)(3). Nor does it meet the See the following examples. Line 3. Check the box for an requirements for public charity status organization whose main purpose is to under any other provision of the Internal Example 1. The organization provide hospital or medical care. A Revenue Code. The organization is a received an exemption letter that it is a rehabilitation institution or an outpatient private foundation and shouldn't file public charity under section clinic can qualify as a hospital if its Form 990, Form 990-EZ, or Schedule A 170(b)(1)(A)(vi). For the tax year, it principal purposes or functions are the (Form 990 or 990-EZ) for the tax year meets the requirements for public providing of hospital or medical care, but should file Form 990-PF instead. charity status under section but the term doesn't include medical 170(b)(1)(A)(vi). The organization Example 6. The organization schools, medical research should check the box on line 7 and received an exemption letter that it is a organizations, convalescent homes, complete . Part II supporting organization under section homes for children or the aged, or 509(a)(3). The letter doesn't state which Example 2. The organization vocational training institutions for type of supporting organization it is. The received an exemption letter that it is a handicapped individuals. organization should review the public charity under section Check the box on line 3 also for a instructions for lines 12a–12d to 170(b)(1)(A)(vi). For the tax year, it cooperative hospital service determine which type best describes doesn't meet the requirements for public organization described in section the organization. The organization may charity status under section 501(e). wish to file Form 8940 to request a 170(b)(1)(A)(vi). Instead, it meets the determination of type. requirements for public charity status under section 509(a)(2). The Instructions for Schedule A (Form 990 or 990-EZ) -2-

3 Page 3 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. organization's assets as of any day in its Enter the name, city, and state of the The definition of hospital for Schedule A (Form 990 or tax year using the same day every year, college or university. You don't have to TIP 990-EZ), Part I, is different from and value the endowment at fair market . Part II complete the definition for Schedule H (Form value using commonly accepted Line 10. Check the box and complete 990), Hospitals. Accordingly, see Who valuation methods. See Regulations if the organization meets both of Part III in the Instructions for Must File section 20.2031. the section 509(a)(2) support tests. See Schedule H (Form 990) about whether the instructions for regarding how Part III Line 5. Check the box and complete the organization also is required to an organization can qualify as a publicly Part II if the organization receives and complete Schedule H (Form 990). supported organization under section manages property for and expends 509(a)(2). funds to benefit a college or university Line 4. Check the box for an that is owned or operated by one or organization whose principal purpose or Line 11. Check the box only if the more states or political subdivisions. function is to engage in medical organization has received a ruling from The school must be an organization , and that is directly engaged research the IRS that it is organized and operated described in the instructions for line 2. in the continuous active conduct of primarily to test for public safety. Expending funds to benefit a college medical research in conjunction with a Lines 12 and 12a–12d. If the or university includes acquiring and hospital. The hospital must be organization is a supporting maintaining the campus, its buildings described in section 501(c)(3) or organization, check the box for line 12 and equipment, granting scholarships operated by the federal government, a and then check the appropriate box for and student loans, and making any state or its political subdivision, a U.S. line 12a, 12b, 12c, or 12d to indicate the other payments in connection with the possession or its political subdivision, or type of supporting organization it is. The normal functions of colleges and the District of Columbia. organization must also complete lines universities. If the organization primarily gives 12e and 12f, the table on line 12g, and The organization must meet the funds to other organizations (or grants Part IV . If the organization is a Type III same public support test described later and scholarships to individuals) for them non-functionally integrated supporting for line 7. See Rev. Rul. 82-132, 1982-2 to do the research, the organization isn't organization, it must also complete C.B. 107. a medical research organization. Part V . The organization isn't required to be Line 6. Only a federal, state, or local For more information about an affiliate of the hospital, but there government or that governmental unit supporting organizations, see must be a joint effort by the organization has received an exemption letter Regulations section 1.509(a)-4 and and the hospital to maintain continuing recognizing it as exempt from tax under sections 509(a)(3) and 509(f). For a close cooperation in the active conduct section 501(c)(3) should check this box. brief overview of the requirements for of medical research. See Rev. Rul. 60-384, 1960-2 C.B. 172. qualification as a supporting organization, and the different types of The definition of medical Check the box and complete Line 7. supporting organizations, see Pub. 557, research for Schedule A (Form if the organization meets one of Part II TIP Tax-Exempt Status for Your 990 or 990-EZ), Part I, is the section 170(b)(1)(A)(vi) public Organization, and visit IRS.gov/ different from the definition for Part II support tests. See instructions for Charities-Non-Profits/Section-509(a)(3)- Schedule H (Form 990), Hospitals. regarding how an organization can Supporting-Organizations . Accordingly, research that is medical qualify as a publicly supported research for purposes of determining Use the information later to organization under section whether an organization is a medical 170(b)(1)(A)(vi). determine the supporting organization's research organization isn't necessarily type. If the organization checks the box Check the box and complete Line 8. medical research for Schedule H (Form on line 12e, the letter the organization Part II if the organization is a community 990) reporting purposes. received from the IRS identifies its type. trust and meets a section If the box checked on any of lines 12a 170(b)(1)(A)(vi) public support test. A An Assets test/expenditure test. through 12d is different from the type community trust is a charity that attracts organization qualifies as a medical stated in the letter (for example, large for the benefit of a contributions research organization if its principal because the organization has made particular community or area, often purpose is medical research, and if it significant changes to its structure or initially from a small number of donors, devotes more than half its assets, or operations resulting in it no longer and is generally governed by spends at least 3.5% of the fair market qualifying as the type of supporting representatives of its particular value of its endowment, directly in organization indicated in its letter), community or area. See Regulations conducting medical research . Either provide an explanation in Part VI . If the sections 1.170A-9(f)(10), (11), and (12). test can be met based on a computation organization doesn't check the box on period consisting of the immediately A community trust claiming it line 12e, it should check the box on preceding tax year or the immediately qualifies as a public charity line 12a, 12b, 12c, or 12d that best ! CAUTION preceding 4 tax years. should check the box on line 8 describes the type of supporting whether it is structured as a corporation organization it is. If an organization doesn't satisfy or as a trust. either the assets test or the expenditure All supporting organizations, test, it can still qualify as a medical regardless of type, must be ! Line 9. Check the box if the research organization based on the CAUTION responsive to the needs or organization is an agricultural research circumstances involved. demands of one or more supported organization described in section These tests are discussed in organizations, and must constitute an 170(b)(1)(A)(ix) operated in conjunction Regulations sections 1.170A-9(d)(2)(v) integral part of, or maintain a significant with a land-grant college or university or and (vi). Under these tests, value the involvement in, the operations of one or a non-land grant college of agriculture. Instructions for Schedule A (Form 990 or 990-EZ) -3-

4 Page 4 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. 3. duplicate pages of Schedule A, The organization meets one of Part I more supported organizations. Although . Use as many duplicate copies as the alternative integral part tests supporting organizations have Type III needed, and number each page. described in specific “responsiveness” and “integral Part IV , Section E. Column (iii). Type III—Non-functionally For each supported part” tests that must be met, the • • integrated. organization named in column (i), enter Type I or Check this box if the Type II relationship between a Type III the line number (from lines 1 through 10 organization qualifies as a supporting organization and its above) that best describes the non-functionally integrated supporting supported organization(s) must also include these responsiveness and organization by meeting the following foundation status of the supported requirements. organization. integral part characteristics. The ability of the supported organization(s) in a The organization meets the 1. If the supported Example 1. relationship effectively Type II or Type I notification requirement described in organization is a hospital, then that is an to control the supporting organization's Part IV , Section D, line 1; organization described in section 170(b) board generally ensures that these (1)(A)(iii), and you should enter “3” in The organization meets the 2. characteristics are present. If they aren't column (iii). responsiveness test (both relationship present, however, don't check any box requirement and significant voice If the supported Example 2. for lines 12a through 12d. For more requirement) described in , Part IV organization is a federal, state, or local information, see Regulations sections Section D, lines 2 and 3; and governmental unit, or foreign 1.509(a)-4(f)(3) and (4). government, then that is an organization The organization meets the 3. Type I Type I. A supporting described in section 170(b)(1)(A)(v), • integral part test by meeting either (a) is operated, supervised, organization and you should enter “6” in column (iii). the distribution and attentiveness or controlled by one or more publicly requirements described in Part V or (b) If the supported Example 3. . If the supported organizations the alternative integral part test for organization is exempt under section organization otherwise qualifies as a certain trusts in existence on November 501(c)(4), 501(c)(5), or 501(c)(6), but supporting organization and can answer 20, 1970, described in , line 1. Part V can be supported by a supporting “Yes” to the following question, check organization (see Regulations section The organization's Line 12e. Type I . the box for 1.509(a)-4(k)), enter the line number exemption letter or subsequent Do the supported organizations have (from lines 1 through 10 above) that determination letter may state the type a substantial degree of direction over would describe the section 501(c)(4), of it is. If it supporting organization the policies, programs, and activities of 501(c)(5), or 501(c)(6) organization if it does, check the box on this line. If the the supporting organization, typically by were a section 501(c)(3) organization. letter doesn't state the type, or if the ensuring that the , governing body Identify the specific code section Type III but doesn't specify letter states officers, or membership of the (501(c)(4), 501(c)(5), or 501(c)(6)) for whether functionally integrated or supported organizations may regularly each such supported organization in non-functionally integrated, leave this appoint or elect a majority of the Part VI. line blank. supporting organization's directors or A grantor to a section 509(a)(3) The only correct entry in column trustees? supporting organization, acting in good (iii) is a line number (from lines 1 ! supporting Type II A Type II. • CAUTION faith, can rely on this letter in through 10) that corresponds to is supervised or organization determining whether the organization is the description of the supported controlled in connection with one or organization. a , Type II , Type I Type III functionally more publicly supported organizations. integrated , or Type III non-functionally If the organization otherwise qualifies as Check “Yes” if the Column (iv). • integrated supporting organization. See a supporting organization and can supported organization named in Rev. Proc. 2011-33, 2011-25 I.R.B. 887 answer “Yes” to the following question, column (i) is specifically named as a and Notice 2014-4, 2014-2 I.R.B. 274. check the box for Type II . supported organization in the organization's declaration of trust, Line 12f. A supporting organization Do the same persons, such as articles of incorporation, or other must be organized and operated directors, trustees, and officers, governing document. exclusively to support or benefit one or supervise or control the supported Enter the total amount of Column (v). more specified publicly supported • organization(s) and the supporting monetary support paid to, or for the organizations. Please write in the space organization? benefit of, the supported organization provided the number of supported Type III—Functionally integrated. • named in column (i) during the tax year . organizations. Include all supported Check this box if the organization Such monetary support may include organizations that the organization was qualifies as a functionally Type III making payments to or for the use of organized to support at any time during integrated supporting organization by individual members of the charitable the tax year, whether or not they actually meeting the following requirements. class benefited by the supported received support during the tax year. The organization meets the 1. organization (such as scholarships), Line 12g. An organization checking a notification requirement described in and to 501(c)(3) public charities box on line 12a, 12b, 12c, or 12d must , Section D, line 1; Part IV operated, supervised, or controlled complete the table on line 12g. 2. The organization meets the directly by or in connection with the Columns (i) and (ii). Enter the name • responsiveness test (both the supported organization. See and employer identification number relationship requirement and the Regulations section 1.509(a)-4(e). If no ( ) for each EIN supported organization significant voice requirement) described monetary support was provided during counted on line 12f. If the organization in , Section D, lines 2 and 3; and Part IV the tax year, enter “-0-.” had more than five supported Column (vi). In this column, the • organizations during the tax year, enter organization may (but isn't required to) the additional organizations on Instructions for Schedule A (Form 990 or 990-EZ) -4-

5 Page 5 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. receipts from exercising or performing (including short years). If the provide an estimate of the fair market value of goods, other property, services, the organization's tax-exempt purpose organization's current tax year or any of and use of facilities that is provided to or or function, which should be reported on its 4 prior tax years were short years, Part VI . for the benefit of the supported explain in line 12. An amount received from a organizations during the tax year. governmental unit is treated as gross If the organization wasn't a section any such goods, Describe in Part VI receipts from exercising or performing 501(c)(3) organization for the entire other property, services, and use of the organization's tax-exempt purpose Part II , report amounts 5-year period in facilities, whether or not an amount is or function if the purpose of the payment only for the years the organization was a reported for them in column (vi). is primarily to serve the direct and section 501(c)(3) organization. immediate needs of the payor Line 1. Don't include any “unusual governmental unit, and is treated as a Part II. Support Schedule grants.” See Unusual grants , later. contribution, if the purpose is primarily for Organizations Include membership fees only to the to provide a direct benefit to the public. Described in Sections extent to which the fees are payments to For example, a payment to maintain provide support for the organization 170(b)(1)(A)(iv) and library facilities that are open to the rather than to purchase admissions, public should be treated as a 170(b)(1)(A)(vi) merchandise, services, or the use of contribution. See Regulations section facilities. To the extent that the If the organization checked a 1.170A-9(f)(8) and Rev. Rul. 81-276, membership fees are payments to box in , on line 5, 7, or 8, it Part I 1981-2 C.B. 128. Refer to the ! purchase admissions, merchandise, CAUTION should complete Part II and instructions for Form 990, Part VIII, lines services, or the use of facilities in a insert the appropriate dollar amounts. 1e and 2, for more examples addressing related activity, report the membership Don't leave blank or report only Part II the distinction between government fees on line 12. To the extent that the zeros if the organization had any payments that are contributions and membership fees are payments to support during the period. If the government payments that are gross purchase admissions, merchandise, organization checks the box in , Part II receipts from activities related to the services, or the use of facilities in an on line 13, it should stop there and not organization's tax-exempt purpose or unrelated business activity, report the complete the rest of Part II . function. Medicare and Medicaid membership fees on line 9. See payments are treated as gross receipts Regulations section 1.170A-9(f)(7)(iv). If the organization checked a from patients rather than as Include qualified sponsorship payments box in Part I , on line 5, 7, or 8 TIP contributions from the government under section 513(i). Part and also checks the box in payor for purposes of the public support II , on line 18, the organization should test. See Rev. Rul. 83-153, 1983-2 C.B. Use any Noncash contributions. to determine if it Part III complete 48. reasonable method to determine the qualifies as a publicly supported value of noncash contributions reported Unusual grants Unusual grants. organization under section 509(a)(2). If on line 1. generally are substantial contributions it does qualify, the organization should and bequests from disinterested Don't report any donations of instead check the box in Part I , on persons and are: services (such as the value of donated line 10. advertising space or broadcast air time) Attracted because of the 1. or donations of use of materials, Public Support Test. For an organization's publicly supported equipment, or facilities, on line 1 as organization to qualify as a publicly nature, gifts, grants, or contributions. Donated supported organization under section 2. Unusual and unexpected services and facilities from a 170(b)(1)(A)(vi), either: because of the amount, and 1 governmental unit only are reported 3 % or more of its total support 33 / • Large enough to endanger the 3. on line 3. must come from governmental organization's status as normally agencies, contributions from the general If Loss on uncollectible pledge. 1 % public support / 3 meeting either the 33 public, and contributions or grants from an organization records a loss on an test or the 10% facts and circumstances other public charities; or uncollectible pledge that it reported on a test. 10% or more of its total support must • prior year's Schedule A, it should deduct come from governmental agencies, For a list of other factors to be that loss from the contribution amount contributions from the general public, considered in determining whether a for the year in which it originally counted and contributions or grants from other grant is an unusual grant, see that contribution as revenue. For public charities and the facts and Regulations section 1.509(a)-3(c)(4). example, if in the prior tax year the circumstances indicate it is a publicly organization reported a pledged An unusual grant is excluded even if supported organization. contribution with a then-present value of the organization receives or accrues the $50,000 in , line 1, column (e), but Part II funds over a period of years. Note. An organization won't meet either learned during the current tax year that of these public support tests if almost all Don't report gross investment income it wouldn't receive any of that pledged of its support comes from gross receipts items as unusual grants. Instead, contribution, it should deduct the from related activities and an include all investment income on line 8. $50,000 from the amount reported in insignificant amount of its support See Rev. Rul. 76-440, 1976-2 C.B. , line 1, column (d), for the prior Part II comes from and governmental units 58; Regulations section tax year. made directly or contributions 1.170A-9(f)(6)(ii); and Regulations indirectly by the general public. Support from a governmental sections 1.509(a)-3(c)(3) and (4) for unit. Include on line 1 support received Public support is measured using a details about unusual grants. from a governmental unit . This 5-year computation period that includes includes , but not gross contributions the current and 4 prior tax years Instructions for Schedule A (Form 990 or 990-EZ) -5-

6 Page 6 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. characterizing such transfers as a list showing the Part VI Include in Churches described in section • amount, but not the grantor, of each 170(b)(1)(A)(i); contributions but not as revenue or unusual grant actually received each Educational institutions described in assets. For example, if an organization • year (if the cash accounting method is section 170(b)(1)(A)(ii); is a community foundation that receives used) or accrued each year (if the Hospitals described in section and holds a cash transfer for another • accrual accounting method is used). 170(b)(1)(A)(iii); tax-exempt organization and reports Organizations operated for the contributions of such property on • Don't include the names of the Part benefit of a college or university owned Schedule A (Form 990 or 990-EZ), Part VI will be grantors because ! , line 1, without reporting it on Form II or operated by a governmental unit CAUTION made available for public 990 as revenue in Part VIII or assets in described in section 170(b)(1)(A)(iv); inspection. Part X, explain the basis for and Agricultural research organizations characterizing the property as • Unusual grants recordkeeping. described in section 170(b)(1)(A)(ix). contributions but not as revenue or An organization that received any assets. The organization should keep for its unusual grants during the 5-year period records a list showing the name of and Enter tax revenue levied for the Line 2. should also keep for its records a list amount contributed by each donor organization's benefit by a showing, for each year, the name of the (other than a or governmental unit and either paid to governmental unit contributor, the date and amount of the publicly supported organization) whose the organization or expended on its grant, and a brief description of the total gifts during the years reported behalf. Report this amount whether or grant. If the organization used the cash exceed 2% of the amount reported on not the organization includes this method for the applicable year, show line 11, column (f). An example of this amount as revenue on its financial only the amounts the organization list is given later. statements or elsewhere on Form 990 actually received during that year. If the or 990-EZ. organization used the accrual method Don't file this list with the for the applicable year, show only the organization's Form 990 or Enter the value of services or Line 3. ! amounts the organization accrued for CAUTION 990-EZ because it may be facilities furnished by a governmental that year. An example of this list is given made available for public inspection. unit to the organization without charge. below. Don't include the value of services or Include the gross income from Line 8. facilities generally furnished to the Don't file this list with the interest, dividends, payments with public without charge. For example, organization's Form 990 or ! respect to securities loans (section CAUTION include the fair rental value of office 990-EZ because it may be 512(a)(5)), rents, royalties, and income space furnished by a governmental unit made available for public inspection. from similar sources. Don't include on to the organization without charge but this line payments that result from only if the governmental unit doesn't Line 1. Example—List of unusual activities of the organization that further generally furnish similar office space to its exempt purpose. Instead, report grants the public without charge. Report these these amounts on line 12. amounts whether or not the organization Description ▶ includes these amounts as revenue on Line 9. Enter the organization's net Year 2018 its financial statements or elsewhere on income from conducting unrelated Undeveloped land ▶ Form 990 or 990-EZ. Mr. Name business activities, whether or not the activities are regularly conducted as a Distinguished Donor Enter in column (f) the portion Line 5. trade or business. See sections 512 and of total by each contributions ▶ Date of Grant 513 and the applicable regulations. individual, trust, or corporation included January 15, 2018 Include membership fees to the extent on line 1 for the years reported that they are payments to purchase exceeds 2% of the amount reported on ▶ Amount of Grant admissions, merchandise, services, or line 11, column (f). In applying the 2% $600,000 the use of facilities in an activity that is limitation, all contributions made by a an unrelated business. donor and by any person or persons Conservation easements and quali- standing in a relationship to the donor Net income and net losses from all of fied conservation contributions. that is described in section 4946(a)(1) the organization's unrelated business The organization must report any (C) through (a)(1)(G) and the related activities should be aggregated. If a net qualified conservation contributions and regulations (for example, spouses and loss results, enter “0” on this line. contributions of conservation certain other family members, and Line 10. Include all support as defined easements consistently with how it entities where ownership or control in section 509(d) that isn't included reports revenue from such contributions interests exceed a threshold level) will elsewhere in Part II . Explain in Part VI in its books, records, and financial be treated as made by one person. the nature and source of each amount statements and in Form 990, Part VIII, However, the 2% limitation doesn't reported. Don't include gain or loss from . Statement of Revenue apply to contributions from amounts reportable on line 12 or from Reporting contributions not reported organizations qualifying as publicly the sale of capital assets. as revenue. If the organization reports supported organizations under section Enter the total amount of Line 12. any on line 1 of contributions 170(b)(1)(A)(vi), governmental units gross receipts the organization received Part Schedule A (Form 990 or 990-EZ), described in section 170(b)(1)(A)(v), from related activities for all years , that it doesn't report on Form 990 as II and other organizations, such as the reported in Part II . The organization revenue in Part VIII or as assets in Part following, but only if they also qualify as won't be treated as meeting the section X, or as revenue or assets on Form publicly supported organizations under 990-EZ, explain in Part VI the basis for section 170(b)(1)(A)(vi). Instructions for Schedule A (Form 990 or 990-EZ) -6-

7 Page 7 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Line 5. Example—List of donors other than governmental units and publicly supported organizations , line 11, column (f) is $12,000 Assumption: 2% of the amount on Schedule A (Form 990 or 990-EZ), Part II Contributors whose total gifts from 2014 through 2018 were in excess of the 2% limitation (b) (a) (d) (e) (f) (g) (c) 2014 2015 Name 2017 2018 Total Excess 2016 contributions (col. (f) minus the 2% limitation) XYZ Foundation $3,000 $18,000 $80,000 $68,000 $59,000 Banana Office $12,000 $3,000 $1,000 $16,000 $4,000 Supply Plum Corporation $30,000 $15,000 $18,000 $15,000 $5,000 $1,000 $5,000 John Smith $16,000 $4,000 $5,000 $10,000 $10,000 $10,000 $30,000 $18,000 Sue Adams Raisin Trade $15,000 $20,000 $7,000 $27,000 Assoc. ... Total. Add the items in column (g). Enter the total here and on Part II , column (f), line 5 $127,000 1 170(b)(1)(A)(vi), 33 of Schedule A that it keeps for itself. An A trade or business consisting of / 3 % public support • test or the 10% games, but only if the bingo conducting organization should carefully monitor its public support on an ongoing basis to facts-and-circumstances public support conduct of such games is lawful. See test, if almost all of its support consists ensure that it will meet a public support section 513(f). test in the sixth year and succeeding of gross receipts from related activities Qualified pole rentals by a mutual or • and an insignificant amount of its years. cooperative telephone or electric support comes from governmental company. See section 513(g). Round to the nearest Line 14. units The distribution of certain low cost . See contributions and public • hundredth decimal point in reporting the articles incidental to the solicitation of Regulations section 1.170A-9(f)(7)(iii). percentage of public support. For charitable contributions (except to the Include on line 12 gross receipts from example, if the organization calculates extent such gross receipts are properly admissions, sales of merchandise, its public support percentage as treated as charitable contributions performance of services, or furnishing of 58.3456%, this percentage would be reportable on line 1 rather than as facilities in any activity which isn't an rounded to 58.35% when reported on proceeds of a sale or exchange), and unrelated trade or business (within the line 14. exchange and rental of members lists. meaning of section 513). See section See section 513(h). 509(d)(2). Include membership fees to Line 15. For 2018, enter the public the extent they are payments to Line 13. An organization that checks support percentage from the 2017 purchase admissions, merchandise, this box should stop here and shouldn't Schedule A (Form 990 or 990-EZ), Part services, or the use of facilities in a complete the rest of Part II . It shouldn't , line 14. Round to the nearest II related activity. For example, include on make a public support computation on hundredth decimal point in reporting the this line gross receipts from: line 14 or 15 or check any of the boxes percentage of public support. A trade or business in which • on lines 16 through 18. Line 16a. If the organization didn't substantially all work is performed by An organization receives Example. check the box on line 13, and line 14 is volunteers (such as book fairs and 1 an exemption letter from the IRS that it 33 / 3 % or more, check the box on this sales of gift wrap paper). See section is exempt from tax under section line and don't complete the rest of 513(a)(1). 501(c)(3) and qualifies as a public Part II . The organization qualifies as a A trade or business carried on by the • charity under section 170(b)(1)(A)(vi) publicly supported organization for 2018 organization primarily for the effective on its date of incorporation. and 2019. convenience of its members, students, When the organization prepares Part II patients, employees , or . See officers If the organization didn't Line 16b. for each of its first 5 tax years as a section 513(a)(2). check a box on line 13 or 16a, and section 501(c)(3) organization, it should 1 A trade or business which is the • line 15 is 33 / 3 % or more, check the check the box on line 13 and shouldn't selling of merchandise, substantially all box on this line and don't complete complete the rest of Part II . When the of which the organization received as Part II the rest of . The organization organization prepares for its sixth Part II gifts or . See section contributions qualifies as a publicly supported tax year and subsequent years, it 513(a)(3). organization for 2018. shouldn't check the box on line 13 and “Qualified public entertainment • should complete the rest of . Part II Line 17a. If the organization didn't activities” or “qualified convention and check a box on line 13, 16a, or 16b, and trade show activities” of certain An organization in its first 5 line 14 is 10% or more, and if the organizations. See section 513(d). years as a section 501(c)(3) TIP organization meets the Furnishing certain hospital services. organization should make the • facts-and-circumstances test, check See section 513(e). public support computations on a copy Instructions for Schedule A (Form 990 or 990-EZ) -7-

8 Page 8 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. merchandise, performance of services, 990, Form 990-EZ, or Schedule A (Form the box on this line and don't complete the rest of Part II . The or furnishing of facilities in an activity 990 or 990-EZ) for the 2018 tax year. Instead, the organization should file which isn't an organization qualifies as a publicly unrelated trade or business under section 513; and Initial return of Form 990-PF and check supported organization for 2018 and 1 a former public charity on Form 990-PF, 3 % of its support No more than 33 / 2019. • at the top of page 1. normally must come from gross Part If this box is checked, explain in investment income and net unrelated how the organization meets the IV If Form 990 or 990-EZ is for the (less section 511 business income facts-and-circumstances test in organization's sixth tax year as TIP tax) from businesses acquired by the Regulations section 1.170A-9(f)(3). a section 501(c)(3) organization after June 30, 1975. Include the following information. organization, the organization should Explain whether the organization Public support is measured using a • compute the public support percentage maintains a continuous and bona fide 5-year computation period that includes on its Form 990 or 990-EZ for its first 5 program for solicitation of funds from the the current and 4 prior tax years tax years before it checks the box on general public, community, membership (including short years). If the line 18. If its public support percentage 1 , or group involved, governmental units organization's current tax year or any of for its first 5 tax years is 33 / 3 % or more, other . public charities its 4 prior tax years were short years, or if it meets the 10% explain in List all other facts and circumstances, Part VI . • facts-and-circumstances test for its first including the sources of support, 5 tax years, it will qualify as a public , if the organization wasn't a Part III In whether the organization has a charity for its sixth tax year. If the section 501(c)(3) organization for the which represents the governing body organization qualifies under the 10% entire 5-year period, report amounts broad interests of the public, and test, explain in . Part VI only for the years the organization was a whether the organization generally section 501(c)(3) organization. provides facilities or services directly for If the organization doesn't Line 1. Don't include any “unusual the benefit of the general public on a qualify as a publicly supported TIP , later. Unusual grants grants.” See continuing basis. organization under section Include membership fees only to the If the organization is a membership • 170(b)(1)(A)(vi), it can complete Part III extent to which the fees are payments to organization, explain whether the to determine if it qualifies as a publicly provide support for the organization solicitation for dues-paying members is supported organization under section rather than to purchase admissions, designed to enroll a substantial number 509(a)(2). merchandise, services, or the use of of persons from the community, whether facilities. To the extent that the dues for individual members have been Part III. Support Schedule membership fees are payments to fixed at rates designed to make purchase admissions, merchandise, for Organizations membership available to a broad services, or the use of facilities in a cross-section of the interested public, Described in Section related activity, include the membership and whether the activities of the 509(a)(2) fees on line 2. See Regulations section organization will likely appeal to persons 1.509(a)-3(h). To the extent that the having some broad common interest or If an organization checked the membership fees are payments to purpose. Part I box in , for line 10, it TIP purchase admissions, merchandise, should complete Part III and Line 17b. If the organization didn't services, or the use of facilities in an insert the appropriate dollar amounts. check a box on line 13, 16a, 16b, or activity that isn't an unrelated Don't leave blank or report only Part III 17a, and line 15 is 10% or more, and if business under section 513, report the zeros if the organization had any the organization meets the membership fees on line 3. To the support during the period. If the facts-and-circumstances test, check extent that the membership fees are Part III , organization checks the box in the box on this line and don't payments to purchase admissions, on line 14, it should stop there and not complete the rest of . The Part II merchandise, services, or the use of complete the rest of Part III . organization qualifies as a publicly facilities in an activity that is an supported organization for 2018. If this unrelated business, report the net If the organization checked the box is checked, explain in Part VI how amount either on line 10b or 11, as box in , for line 10, and Part I TIP the organization meets the appropriate. , also checks the box in Part III facts-and-circumstances test in for line 20, the organization should Use any Noncash contributions. Regulations section 1.170A-9(f)(3). complete Part II to determine if it reasonable method to determine the Include the same information identified qualifies as a publicly supported value of noncash contributions reported in the instructions for line 17a, earlier. organization under section 170(b)(1)(A) on line 1. If the organization didn't check Line 18. (vi). If it does qualify, the organization Don't report any donations of a box on line 13, 16a, 16b, 17a, or 17b, should instead check the box in , Part I services (such as the value of donated it doesn't qualify as a publicly supported for line 5, 7, or 8, whichever applies. advertising space or broadcast air time) organization under section or donations of use of materials, Public Support Test. For an 170(b)(1)(A)(iv) or 170(b)(1)(A)(vi) for equipment, or facilities, on line 1 as organization to qualify as a publicly the 2018 tax year and should check the gifts, grants, or contributions. Donated supported organization under section box on this line. If the organization services and facilities from a 509(a)(2): doesn't qualify as a public charity under governmental unit are reported on 1 More than 33 / 3 % of its support any of the boxes in , lines 1 Part I • line 5. normally must come from gifts, grants, through 12, it is a private foundation as contributions , membership fees, and of the beginning of the 2018 tax year for Loss on uncollectible pledge. If gross receipts from admissions, sales of filing purposes and shouldn't file Form an organization records a loss on an Instructions for Schedule A (Form 990 or 990-EZ) -8-

9 Page 9 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. 2. uncollectible pledge that it reported on a Unusual and unexpected Line 1. Example—List of unusual prior year's Schedule A, it should deduct because of the amount, and grants that loss from the contribution amount 3. Large enough to endanger the for the year in which it originally counted organization's status as normally Description ▶ Year 2018 that contribution as revenue. For 1 / meeting the 33 3 % public support test. example, if in the prior tax year the Undeveloped land ▶ Mr. Name For a list of other factors to be organization reported a pledged Distinguished Donor considered in determining whether a contribution with a then-present value of grant is an unusual grant, see , line 1, column (e), but Part III $50,000 in ▶ Date of Grant Regulations section 1.509(a)-3(c)(4). learned during the current tax year that January 15, 2018 it wouldn't receive any of that pledged An unusual grant is excluded even if contribution, it should deduct the ▶ the organization receives or accrues the Amount of Grant $50,000 from the amount reported in funds over a period of years. $600,000 Part III , line 1, column (d), for the prior Don't report gross investment income tax year. items as unusual grants. Instead, Conservation easements and quali- include all investment income on fied conservation contributions. The Support from a governmental line 10a. organization must report any qualified unit. Include on line 1 support received conservation contributions and from a . This governmental unit See Rev. Rul. 76-440, 1976-2 C.B. contributions of conservation includes contributions , but not gross 58; Regulations section easements consistently with how it receipts from exercising or performing 1.170A-9(f)(6)(ii); and Regulations reports revenue from such contributions the organization's tax-exempt purpose sections 1.509(a)-3(c)(3) and in its books, records, and financial or function, which should be reported on 1.509(a)-3(c)(4) for details about statements and in Form 990, Part VIII, line 2. Contributions are sometimes unusual grants. Statement of Revenue . difficult to distinguish from such gross Include in Part VI a list showing the receipts—the label on the agreement Reporting contributions not reported amount, but not the grantor, of each isn't controlling. An amount received If the organization reports as revenue. unusual grant actually received each from a governmental unit is treated as contributions on line 1 of any year (if the cash accounting method is gross receipts from exercising or Part Schedule A (Form 990 or 990-EZ), used) or accrued each year (if the performing the organization's III , that it doesn't report on Form 990, as accrual accounting method is used). tax-exempt purpose or function if the revenue in Part VIII or as assets in Part Don't include the names of the purpose of the payment is primarily to X, or as revenue or assets on Form will be grantors because Part VI serve the direct and immediate needs of ! 990-EZ, explain in the basis for Part VI CAUTION made available for public the payor governmental unit. An amount characterizing such transfers as inspection. is treated as a contribution if the contributions but not as revenue or purpose of the payment is primarily to assets. For example, if an organization Unusual grants recordkeeping. provide a direct benefit to the public. For is a community foundation that receives An organization that received any example, if a state government agency and holds a cash transfer for another unusual grants during the 5-year period, pays an organization to operate an tax-exempt organization and reports should also keep for its records a list institute to train agency employees in contributions of such property on showing, for each year, the name of the the principles of management and Schedule A (Form 990 or 990-EZ), Part contributor, the date and amount of the administration, the funds received III , line 1, without reporting it on Form grant, and a brief description of the should be included on line 2 as gross 990, as revenue in Part VIII or assets in grant. If the organization used the cash receipts. See Regulations section Part X, explain the basis for method for the applicable year, show 1.509(a)-3(g). Refer to the instructions characterizing the property as only amounts the organization actually for Form 990, Part VIII, lines 1e and 2, contributions but not as revenue or received during that year. If the for more examples addressing the assets. organization used the accrual method distinction between government Line 2. Include gross receipts from for the applicable year, show only payments that are contributions and admissions, merchandise sold, services amounts the organization accrued for government payments that are gross performed, or facilities furnished in any that year. An example of this list is given receipts from activities related to the activity that is related to the later. organization's tax-exempt purpose or organization's tax-exempt purpose function. Medicare and Medicaid Don't file this list with the (such as charitable, educational, etc.). payments are treated as gross receipts organization's Form 990 or ! from patients rather than as To the extent that membership fees CAUTION 990-EZ because it may be contributions from the government are payments to purchase admissions, made available for public inspection. payor for purposes of the public support merchandise, services, or the use of test. See Rev. Rul. 83-153, 1983-2 C.B. facilities in a related activity, include the 48. membership fees on this line 2. See Regulations section 1.509(a)-3(h). Unusual grants Unusual grants. Include gross receipts from Line 3. generally are substantial contributions activities that aren't an unrelated trade and bequests from disinterested or business under section 513, such as: persons and are: A trade or business in which • Attracted because of the 1. substantially all work is performed by organization's publicly supported volunteers (such as book fairs and nature, Instructions for Schedule A (Form 990 or 990-EZ) -9-

10 Page 10 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Line 7a. Example—List of amounts received from disqualified persons (e) 2018 (d) 2017 (c) 2016 (a) 2014 Disqualified Person (f) Total (b) 2015 $15,000 $2,000 $6,000 $7,000 David Smith $4,000 $16,000 $5,000 $7,000 Anne Parker $5,000 $7,000 $6,000 Total $6,000 $7,000 $31,000 Line 7b. Example—List of amounts received from other than disqualified persons Year 2018 (d) Enter the larger of (a) Name (b) Amount received in (e) 2018 excess (c) 1% of amount on line 13 in 2018 column (c) or $5,000 (column (b) minus 2018 column (d)) $25,000 $2,000 $5,000 $20,000 Word Processing, Inc. $20,000 Enter on Schedule A, column (e), line 7b ... the organization or expended on its sales of gift wrap paper). See section Line 7b. For any gross receipts behalf. Report this amount whether or 513(a)(1). included on lines 2 and 3 from related A trade or business carried on by the not the organization includes this • activities received from a person or from organization primarily for the financial amount as revenue on its a bureau or similar agency of a statements or elsewhere on Form 990 convenience of its members, students, , other than from a governmental unit , or employees . See officers or 990-EZ. patients, disqualified person , that exceed the section 513(a)(2). greater of $5,000 or 1% of the amount Enter the value of services or Line 5. A trade or business which is the • on line 13 for the applicable year, enter facilities furnished by a governmental selling of merchandise, substantially all the excess on line 7b. The organization unit to the organization without charge. of which the organization received as should keep for its records a list Don't include the value of services or . See section contributions gifts or showing, for each year, the name of the facilities generally furnished to the 513(a)(3). person or government agency, the public without charge. For example, “Qualified public entertainment • amount received during the applicable include the fair rental value of office activities” or “qualified convention and year, the larger of $5,000 or 1% of the space furnished by a governmental unit trade show activities” of certain amount on line 13 for the applicable to the organization without charge, but organizations. See section 513(d). year, and the excess, if any. See an only if the governmental unit doesn't Furnishing certain services. hospital • example of this list above. generally furnish similar office space to See section 513(e). the public without charge. Report these Don't file this list with the A trade or business consisting of • amounts whether or not the organization organization's Form 990 or conducting bingo games, but only if the ! includes these amounts as revenue on CAUTION 990-EZ because it may be conduct of such games is lawful. See its financial statements or elsewhere on made available for public inspection. section 513(f). Form 990 or 990-EZ. Qualified pole rentals by a mutual or • Enter the amounts that are Line 7a. Include the gross income Line 10a. cooperative telephone or electric included on lines 1, 2, and 3 that the from interest, dividends, payments company. See section 513(g). organization received from disqualified received on securities loans (section The distribution of certain low-cost • persons. See the definition of 512(a)(5)), rents, royalties, and income articles incidental to the solicitation of in the Glossary disqualified person of from similar sources. Don't include on charitable contributions (except to the the Instructions for Form 990. this line payments that result from extent such gross receipts are properly activities of the organization that further treated as charitable contributions For amounts included on lines 1, 2, its exempt purpose. Instead, report reportable on line 1 rather than as and 3 that were received from a these amounts on line 2. proceeds of a sale or exchange), and disqualified person, the organization exchange and rental of members lists. should keep for its records a list Line 10b. Enter the excess of the See section 513(h). showing the name of, and total amounts organization's unrelated business received in each year from, each While the activity of soliciting and (as defined in section taxable income disqualified person. Enter the total of receiving qualified sponsorship 512) from trades or businesses that it such amounts for each year on line 7a. payments is also excluded from acquired or commenced after June 30, See an example of this list above. unrelated business (see section 513(i)), 1975, over the amount of tax imposed the qualified sponsorship payments on this income under section 511. Don't file this list with the themselves are treated as charitable Include membership fees to the extent organization's Form 990 or ! contributions reportable on line 1. they are payments to purchase CAUTION 990-EZ because it may be admissions, merchandise, services, or Enter tax revenue levied for the Line 4. made available for public inspection. the use of facilities in an unrelated organization's benefit by a business activity that is a trade or governmental unit and either paid to Instructions for Schedule A (Form 990 or 990-EZ) -10-

11 Page 11 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. public support tests in the sixth year and percentage and the investment income business that was acquired or commenced after June 30, 1975. succeeding years. percentage on its Form 990 for its first 5 tax years. If its public support Net income and net losses from all of Line 15. Round to the nearest percentage for its first 5 tax years is these trades or businesses should be 1 hundredth decimal point in reporting the % and the investment / 3 more than 33 aggregated. If a net loss results, enter percentage of public support. For income percentage for its first 5 tax “0” on this line. See Regulations section 1 example, if the organization calculates / 3 %, it will years isn't more than 33 1.509(a)-3(a)(3). its public support percentage as qualify as a public charity for its sixth tax Line 11. Enter the organization's net 58.3456%, this percentage would be year. If the organization qualifies in this income from conducting unrelated rounded to 58.35% when reported on . Part VI manner, explain in business activities not included on line 15. line 10b, whether or not the activities are If the organization doesn't Line 16. For 2018, enter the public regularly conducted as a trade or qualify as a publicly supported TIP support percentage from the 2017 business. Don't include net income from organization under section Part Schedule A (Form 990 or 990-EZ), conducting trades or businesses 509(a)(2), it can complete Part II to , line 15. Round to the nearest III acquired or commenced by the determine if the organization qualifies as hundredth decimal point in reporting the organization prior to July 1, 1975. See a publicly supported organization under percentage of public support. sections 512, 513, and 514, and the section 170(b)(1)(A)(vi). applicable regulations. Include Round to the nearest whole Line 17. membership fees to the extent they are percentage. Part IV. Supporting payments to purchase admissions, For 2018, enter the investment Line 18. Organizations merchandise, services, or the use of income percentage from the 2017 facilities in an activity that is an that Part IV Complete the sections of Schedule A (Form 990 or 990-EZ), Part unrelated business not included on correspond below with the type of , line 17. Round to the nearest whole III line 10b. supporting organization indicated on percentage. line 12a, 12b, 12c, or 12d of Part I . Net income and net losses from all of If the organization didn't Line 19a. Type I: Sections A and B; • the organization's unrelated business check the box on line 14, line 15 is more Type II: Sections A and C; • activities should be aggregated. If a net 1 %, and line 17 isn't more than / 3 than 33 Type III Functionally Integrated: • loss results, enter “-0-” on this line. 1 / check the box on this line 33 %, 3 Sections A, D, and E; and Include all support as defined Line 12. and don't complete the rest of this Type III Non-Functionally Integrated: • in section 509(d) that isn't included schedule . The organization qualifies as . Part V Sections A and D, and Part VI elsewhere in Part III . Explain in a publicly supported organization for Section A. All Supporting the nature and source of each amount 2018 and 2019. reported. Don't include gain or loss from Organizations If the organization didn't Line 19b. sale of capital assets. Line 1. The organization's articles of check the box on line 14 or 19a, line 16 Line 14. An organization that checks 1 incorporation or trust instrument must 3 %, and line 18 isn't / is more than 33 this box should stop here and shouldn't 1 designate the publicly supported 3 more than 33 check the box on / %, complete the rest of . It shouldn't Part III organization(s) on whose behalf the this line and don't complete the rest make a public support computation on supporting organization is operated. . The organization of this schedule line 15 or 16 or an investment income The articles of a Type I or II supporting qualifies as a publicly supported computation on line 17 or 18, or check organization may designate its organization for 2018. any of the boxes for line 19 or 20. supported organization(s) either by Line 20. If the organization didn't check class or purpose or by name. The An organization receives Example. the box on line 14, 19a, or 19b, it articles of a Type III supporting an exemption letter from the IRS that it doesn't qualify as a publicly supported organization must designate the is exempt from tax under section organization under section 509(a)(2) for supported organization(s) by name, 501(c)(3) and qualifies as a public the 2018 tax year and should check the unless a historic and continuing under section 509(a)(2) charity box on this line. If the organization relationship exists between the effective on its date of incorporation. doesn't qualify as a public charity under organizations. When the organization prepares Part III any of the boxes on Schedule A (Form for its first 5 tax years, it should check Check “Yes” only if the organization 990 or 990-EZ), , lines 1 through Part I the box on line 14 and shouldn't supports no organization other than 12, it is a private foundation for filing complete the rest of Part III . When the those listed by name in its governing purposes as of the beginning of the tax Part III organization prepares for its sixth instrument. If the organization supports year and shouldn't file Form 990, Form tax year and subsequent years, it any organization not specifically listed, 990-EZ, or Schedule A (Form 990 or shouldn't check the box on line 14 and check “No” and describe in Part VI how 990-EZ) for the 2018 tax year. Instead, should complete the rest of . Part III the supported organizations are the organization should file Form designated. If designated by class or 990-PF, and check Initial return of a An organization in its first 5 purpose, describe the class or purpose. former public charity on Form 990-PF, at years as a section 501(c)(3) TIP If the organization and its supported the top of page 1. organization should make the organization(s) have a historic and public support and investment income If Form 990 or 990-EZ is for the continuing relationship, explain that computations on a copy of Schedule A organization's sixth tax year as TIP relationship. If support of one or more (Form 990 or 990-EZ) that it keeps for a section 501(c)(3) organization organizations is subject to certain future itself. An organization should carefully and it checked the box on line 20, it contingencies, explain those monitor its public support on an ongoing should compute the public support contingencies, and explain what basis to ensure that it will meet the Instructions for Schedule A (Form 990 or 990-EZ) -11-

12 Page 12 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. substitution, or removal; and (iv) an and describe in how the Part VI organizations will be supported or supporting organization ensured during benefited if those contingencies occur. explanation of how the action was the tax year that its assets were used accomplished (such as by amendment If the organization supported Line 2. solely for charitable purposes. to the organizing document substituting any domestic or foreign organization a new supported organization). (other than an organization described in Line 4a. A supporting organization A supporting organization must Line 6. can't qualify for Type III status in the tax section 501(c)(4), (5), or (6)) that didn't year if any supported organization engage solely in activities that support have an IRS determination of status wasn't organized in the United States. or benefit its supported organization(s). under section 509(a)(1) or (2), check In addition to making grants and Part VI how the “Yes” and explain in A supporting Lines 4b and 4c. providing services and facilities directly organization determined that the organization must exercise control and supported organization was described to its supported organization(s), a discretion over funds granted to an supporting organization generally may in section 509(a)(1) or (2) and why the organization that isn't exempt under supported organization doesn't have also make grants or provide services or section 501(c)(3). See Rev. Rul. such an IRS determination (for example, facilities to (1) individual members of the 68-489, 1968-2 C.B. 210. Also, a because it has applied for but not yet charitable class benefited by its domestic charity generally must supported organization(s) or (2) other received such a determination, or it isn't exercise control and discretion over required to obtain recognition of its supporting organizations that also funds granted to a foreign organization. public charity status because it is a support or benefit its supported See Rev. Rul. 63-252, 1963-2 C.B. 101, organization(s). See Regulations church, a state university, or described and Rev. Rul. 66-79, 1966-1 C.B. 48. in section 4948(b)). section 1.509(a)-4(e). If the organization how the Part VI Explain in made any grants or provided any A supporting organization may Line 3a. organization retained such control and benefits to any other organization or support an organization described in discretion despite being controlled or individual, check “Yes” and provide section 501(c)(4), (5), or (6), if the supervised by or in connection with detail in Part VI . supported organization satisfies the such foreign supported organization(s). public support tests applicable to a Under section Lines 7 and 8. Also explain what controls the section 509(a)(2) organization. See 4958(c)(3), any grant, loan, organization used to ensure that all Regulations section 1.509(a)-4(k) and compensation, or other similar payment support to the foreign supported the instructions for Part III. If the provided by a supporting organization to organization(s) was used exclusively for organization supports a section a substantial contributor (defined in charitable, educational, etc., purposes 501(c)(4), (5), or (6) organization, check section 4958(c)(3)(C)), to a family described in section 170(c)(2)(B) if the “Yes” for line 3a. member (defined in section 4958(f)(4)), foreign supported organization doesn't and to a 35% controlled entity of such have an IRS determination under Line 3b. If the organization confirmed per se excess persons, is considered a sections 501(c)(3) and 509(a)(1) or (2). that the supported organization qualified benefit in its entirety, regardless of the under section 501(c)(4), (5), or (6) and Line 5. Supporting organizations may fairness or reasonableness of the met the section 509(a)(2) public support add, substitute, or remove supported payment, and is subject to tax under test for its most recent tax year, check organizations only in certain limited section 4958(a). The same is true of any “Yes” and describe in how the Part VI situations. See Regulations section loan by a supporting organization to a organization made this determination. 1.509(a)-4(d). Generally, a Type I or disqualified person under section For example, the organization may ask Type II supporting organization may add 4958 (other than loans to certain its section 501(c)(4), (5), or (6) or substitute particular supported exempt organizations). If the supported organization to furnish a copy organizations within the class or classes organization made any such payment or of its IRS determination letter and to designated in its articles, but may not loan during the tax year, check “Yes” complete annually a pro forma add or substitute supported and report the transaction on Part III Schedule A, , and keep the letter organizations outside of the designated Schedule L (Form 990 or 990-EZ), and support calculation in the class(es). A Type III supporting Transactions With Interested Persons, supporting organization’s files. organization, which must specify its Part I. For more information on excess supported organizations by name, may If the supporting organization doesn't benefit transactions generally, see the only substitute supported organizations annually confirm that its supported Instructions for Schedule L. if such substitution is conditioned upon organization satisfies the section Line 9. A supporting organization may the occurrence of an event which is 509(a)(2) public support test, it must disqualified not be controlled by beyond the control of the supporting Part VI how it knows that the explain in , as defined in section 4946. persons organization (such as a supported supported organization would have Section 509(a)(1) or (2) organizations, organization’s lapse into private been described in section 509(a)(2) if it and foundation managers who are foundation status). were described in section 501(c)(3) disqualified persons only as a result of during the tax year. If the organization has added, being foundation managers, aren't substituted, or removed any supported Support given to a supported Line 3c. treated as disqualified persons for this organization during the tax year, check section 501(c)(4), (5), or (6) purpose. Impermissible control may be “Yes” and provide detail in Part VI , organization must be used solely for direct or indirect. If a disqualified person including (i) the names and EINs of the charitable purposes. If the supporting holds any of the interests described in organizations added, substituted, or organization has put into place lines 9b or 9c, or derives personal removed; (ii) the reasons for each measures to ensure that such support is benefit from any such assets, provide addition, substitution, or removal; (iii) used solely for charitable purposes, detail in Part VI. the authority under the organization’s check “Yes” and describe those organizing document for each addition, measures in Part VI . If not, check “No” Instructions for Schedule A (Form 990 or 990-EZ) -12-

13 Page 13 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. also commonly established when one or 3. A copy of the supporting Under section 4943(f), a Type Line 10. organization’s updated governing more supported organizations have the II supporting organization that accepts a documents (including articles of power to appoint or elect at least a contribution from a person who controls organization, bylaws, and any majority of the supporting organization’s the governing body of a supported amendments), to the extent not directors or trustees at regular intervals. organization (or from a family member previously provided. However, there may be other ways to 35% of such person, or from a establish this relationship. If the of such person) is controlled entity See Regulations section organization relies on other ways to subject to the excess business holdings 1.509(a)-4(i)(2). The notice must be establish the relationship, check “No” tax under section 4943. All Type III submitted by the last day of the fifth how the Part VI and describe in non-functionally integrated supporting month of the supporting organization's necessary relationship is established. organizations generally are also subject tax year being reported (May 31 for to the tax. For more information about Line 2. The supporting organization calendar-year filers). An organization excess business holdings, see the may benefit organizations that don't that doesn't timely submit the required Instructions for Form 4720, Return of participate in the control relationship information in the required manner Certain Excise Taxes Under Chapters described in line 1, but only if such doesn't qualify as a Type III supporting 41 and 42 of the Internal Revenue activity carries out the purposes of the organization for the tax year in which it Code. controlling supported organizations. fails to timely submit. Line 11. Section 509(f)(2) prohibits State whether during the tax year Section C. Type II Supporting Type I and Type III supporting being reported the organization Organizations organizations from accepting a gift or provided a timely notice with the contribution from certain persons Line 1. A Type II supporting required information in the required associated with a supported organization must be supervised or manner. organization of such supporting controlled in connection with its A Type III supporting Lines 2 and 3. organization. Specifically, if a Type I or supported organization(s). This means organization must be responsive to the Type III supporting organization accepts that there must be common supervision needs or demands of a supported a contribution after August 16, 2006, or control by the persons supervising or organization. An organization meets this from a person who controls the controlling both the supporting responsiveness test with regard to a governing body of a supported organization and the supported particular supported organization if: organization (or from a family member organization(s) to ensure that the 1. The supported organization has of such person, or from a 35% supporting organization will be with the adequate relationship an controlled entity of such persons), responsive to the needs and supporting organization because: then the supporting organization loses requirements of the supported its status as a supporting organization. organization(s). This relationship is a. The supported organization Such supporting organization must file most clearly established when the same regularly appoints or elects (whether Form 990-PF unless it qualifies as a persons serve as all or a majority of the or not during the tax year) at least public charity under section 509(a)(1) or directors or trustees of all of the one officer, director, or trustee of the (2). organizations involved. However, there supporting organization; may be other ways to establish this b. At least one member of the Section B. Type I Supporting relationship. If the organization relies on governing body of the supported Organizations other than overlap of at least a majority organization also serves as an of directors or trustees of all officer, director, or trustee of the A Type I supporting Line 1. organizations involved, check “No” and supporting organization; or organization must be operated, describe in how the necessary Part VI c. The officers, directors, or trustees supervised, or controlled by one or relationship is established. of the supporting organization and more of its supported organizations (the of the supported organization “controlling supported organizations”). Section D. All Type III maintain a close and continuous This means that the controlling Supporting Organizations working relationship; and supported organizations must have a substantial degree of direction over the Line 1. A Type III supporting 2. Because of this relationship, the policies, programs, and activities of the organization must supply annually a supported organization has a significant supporting organization, and the written notice, addressed to a principal in the supporting organization’s voice supporting organization in turn must be officer of each supported organization, investment policies, timing of grants, responsive to the needs or demands of which includes the following. manner of making grants, selection of the controlling supported organizations, grant recipients, and other use of A description of the type and 1. and must constitute an integral part of, income or assets (the “significant voice” amount of all support the supporting or maintain a significant involvement in, test). organization provided to the supported the operations of the controlling organization during the supporting In the case of a supporting supported organizations. This organization’s tax year preceding the organization that supported a supported relationship is most clearly established tax year in which the notice is provided. organization before November 20, when one or more supported A copy of the supporting 2. 1970, additional facts and organizations (through their officers, organization’s most recently filed Form circumstances such as a historic and directors, trustees, or membership) 990 (the supporting organization may continuing relationship between the have the unconditional power to remove redact the names and addresses of organizations may also be taken into and replace at least a majority of the contributors). account in considering the supporting organization’s directors or responsiveness test. trustees at any time. The relationship is Instructions for Schedule A (Form 990 or 990-EZ) -13-

14 Page 14 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. supporting organization) generally must If the organization had an adequate Line 2. Activities Test. To meet the relationship with at least one supported satisfy a distribution requirement activities test of a Type III functionally organization only by means of a “close described in Regulations section integrated supporting organization, and continuous working relationship” or 1.509(a)-4(i)(5)(ii) along with an substantially all of the supporting a “historic and continuing relationship,” attentiveness requirement described in directly organization’s activities must (1) Part VI explain the relationship then in Regulations section 1.509(a)-4(i)(5)(iii) the exempt purposes of the further and how it was maintained. Also, all to meet the integral part test for a Type supported organization(s) to which the Type III supporting organizations that III relationship. To satisfy the distribution supporting organization was claim to meet the significant voice test requirement, the organization must responsive, and (2) be activities that Part VI the voice or role must describe in make a minimum amount (distributable such supported organization(s) would of the supported organization(s) in amount) of distributions to or for the use but for the normally be engaged in directing the supporting organization’s of one or more supported organizations. supporting organization’s involvement. use of its income or assets. Carryovers of excess distributions from Direct furtherance. Substantially all certain prior years may be used for this Section E. Type III Functionally of the supporting organization’s purpose. Integrated Supporting activities must be “direct furtherance” Sections A through E of show Part V activities. Direct furtherance activities Organization whether the organization has satisfied are conducted by the supporting Line 1. A Type III supporting its distribution and attentiveness organization itself, rather than by a organization must constitute an integral requirements for its tax year. Sections A supported organization. Holding title to part of one or more of its supported and B determine the organization’s exempt-use assets and managing them organizations by maintaining significant adjusted net income and minimum are direct furtherance activities. involvement in its operations and asset amount. These amounts are used Fundraising, investing and managing providing support on which the in determining the distributable amount non-exempt-use assets, grant-making supported organization is dependent. in Section C. Section D determines the to organizations, and grant-making to To satisfy this requirement as a Type III organization’s distributions that count individuals (unless it meets the functionally integrated supporting toward the distributable amount and requirements of Regulations section organization, an organization may (a) determines whether the attentiveness 1.509(a)-4(i)(4)(ii)(D)) aren't direct pass an Activities Test (see instructions requirement is met. Section E furtherance activities. for , later), (b) be the parent of its Line 2 determines whether the distributable But for. In addition, the direct supported organizations (see amount is satisfied through current furtherance activities must be activities , later), or (c) instructions for Line 3 distributions and prior-year carryovers, in which, but for the supporting support one or more governmental and determines carryovers to future organization’s involvement, the entities (see Support of governmental years. supported organization would normally entity , later). If the organization can't be involved. A trust is excepted from the general satisfy any of these tests, it may still distribution and attentiveness qualify as a Type III non-functionally Examples include holding and requirements (and need not complete integrated supporting organization (see managing facilities used by a church for Sections A through E) if on November Part V , later). its religious purposes, operating a food 20, 1970, it met and continues to meet pantry for a group of churches that A Support of governmental entity. the requirements set forth in normally would operate food pantries Type III supporting organization meets Regulations section 1.509(a)-4(i)(9). A themselves, and maintaining local parks the integral part test for a functionally trust that claims this status by checking for a community foundation that integrated supporting organization if it the box on line 1 at the beginning of Part otherwise would maintain those parks. (1) supports at least one supported V how it meets must explain in Part VI See Regulations section organization that is a governmental each of the requirements. A trust that 1.509(a)-4(i)(4)(v) for more detailed entity to which the supporting has obtained a ruling from the IRS on examples. organization is responsive (as this issue must so indicate in Part VI . discussed in instructions for Section D, Line 3. Parent of Supported Organi- Section A. Adjusted Net Income , earlier) and (2) engages in lines 2 and 3 To qualify as the parent of all zations. activities for or on behalf of such the supported organizations, a The principles of section 4942(f) and governmental supported organization supporting organization must (1) have Regulations section 53.4942(a)-2(d) that performs the functions or carries the power to appoint or elect, directly or apply in determining adjusted net out the purposes of such governmental indirectly, a majority of the officers, income. See Regulations section supported organization and that, but for directors, or trustees of every supported 1.509(a)-4(i)(5)(ii)(B). the involvement of the supporting organization; and (2) exercise a The Prior and current year columns. organization, would normally be substantial degree of direction over the organization’s adjusted net income for engaged in by the governmental policies, programs, and activities of the prior tax year is used in determining supported organization itself. See every supported organization. the organization’s distributable amount Notice 2014-4. A Type III supporting for the current tax year. The form also organization that claims to meet the Part V. Type III allows for reporting the organization’s integral part test for a functionally Non-Functionally adjusted net income for the current tax integrated supporting organization by year for use in next year’s calculations; Integrated 509(a)(3) supporting a governmental entity must this reporting is optional but may be describe in Part VI how it met these Supporting Organizations helpful if the organization anticipates requirements for the tax year. A Type III supporting organization (other being required to complete Part V next than a Type III functionally integrated year. Instructions for Schedule A (Form 990 or 990-EZ) -14-

15 Page 15 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. property held for the production of Line 2. Adjusted net income is Recoveries of prior-year Definition. income. Such expenses may include gross income for the tax year less distributions include the following. operating expenses such as Repayments received of amounts deductions allowable to a corporation • compensation of officers and which were taken into account as a subject to tax under section 11, with employees, interest, rent, and taxes. certain modifications discussed in the distribution counting toward the Where only a portion of property line instructions later. In computing distribution requirement in a prior tax produces income (or is held for the gross income and deductions, the year. production of income) and the Proceeds from the sale or disposition principles of the income tax provisions • remainder is used for charitable of property to the extent that acquisition of the Code apply (except to the extent purposes, the expenses must be of such property was taken into account inconsistent with section 4942 or the apportioned between exempt and as a distribution counting toward the underlying regulations), but exclusions, non-exempt use on a reasonable basis. distribution requirement in a prior tax deductions, and credits aren't allowed Don't deduct the following. year. unless expressly provided for under An amount set aside and taken into Net losses from a related business or section 4942 or the underlying • • account as a distribution counting other charitable activity that produces regulations. See Regulations section gross income (no deduction in excess of toward the distribution requirement in a 53.4942(a)-2(d)(1). prior tax year to the extent it is the income from such activity). Report the organization’s net Line 1. determined that such amount isn't Charitable contributions under • short-term capital gain, if any. necessary for the purposes for which it section 170 or 642. Long-term capital gains and losses from was set aside. Net operating loss carrybacks and • the sale or disposition of property aren't carryovers under section 172. taken into account in determining Line 3. Report all other gross income. Dividends under section 241 and the • adjusted net income (unless reportable Gross income includes all amounts sections following it (the on line 2 as recoveries of prior-year derived from, or in connection with, dividends-received deductions for distributions). Net short-term capital property held by the organization corporations). loss can't be carried back or forward to (except as specified otherwise in the Net capital losses (short-term or • other tax years. Amounts treated as Line 1 ). Include income instructions for long-term). long-term capital gains include capital from any related or unrelated trade or Expenses and interest relating to gain dividends from a regulated business. Include income from tax-exempt income under section 265 investment company and net section tax-exempt bonds. Don't include the are deductible. 1231 gains (but net section 1231 losses following. are treated as ordinary losses and thus Gifts, grants, or contributions • Section B. Minimum Asset taken into account). If the fair market received. Amount value of property distributed for Long-term capital gains or losses or • The rules for determining the supporting charitable purposes exceeds adjusted net short-term capital losses. organization’s minimum asset amount basis, the excess isn't deemed Income received from an estate, • are set forth in Regulations sections includible in income. unless the estate is considered 1.509(a)-4(i)(5)(ii)(C) and terminated due to a prolonged period of Adjusted basis. The adjusted basis for 1.509(a)-4(i)(8), using valuation administration. purposes of determining gain from the methods described in Regulations Distributions from a trust created and • sale or other disposition of property is section 53.4942(a)-2(c). funded by another person. the greater of: Certain amounts received by an • Prior and current year columns. The The fair market value of such 1. organization in the redemption of stock organization’s minimum asset amount property on August 17, 2006, plus or in a corporate disqualified person in for the prior tax year is used in minus all adjustments thereafter and order to avoid excess business determining the organization’s before the date of disposition under holdings, which are treated as not distributable amount for the current tax sections 1011–1023, if the property was essentially equivalent to a dividend year. The form also allows for reporting held continuously from August 17, 2006, under section 302(b)(1) (and thus as the organization’s minimum asset to the date of disposition. amounts received in exchange for the amount for the current tax year for use stock, giving rise to long-term capital 2. The adjusted basis under in next year’s calculations; this reporting gain or loss) if the conditions of sections 1011–1023, without regard to is optional but may be helpful if the Regulations section section 362(c). If assets acquired before organization anticipates being required 53.4942(a)-2(d)(2)(iv) are met. August 17, 2006, were subject to to complete next year. Part V depreciation or depletion, to determine Line 5. The deduction for depreciation In figuring the minimum Definition. the adjustments to basis between the under section 167 is allowed, but only asset amount, include only assets of the date of acquisition and August 17, 2006, on the basis of the straight-line method. supporting organization that aren't used straight line depreciation or cost The deduction for depletion under or held for use by the supporting depletion must be taken into account. section 611 is allowed, but without organization (or by a supported Any other adjustments that would have regard to section 613 (percentage organization, if the supporting been made during such period (such as depletion). organization provides the asset free of a change in useful life based upon charge or at nominal rent) to carry out Lines 6 and 7. No deduction is allowed additional data or a change in facts) the exempt purposes of the supported except ordinary and necessary must also be taken into account. organization(s). Assets held for the expenses paid or incurred for the production of income or for investment The adjusted basis for purposes of production or collection of gross aren't considered to be used directly for determining loss is only the amount income, or for the management, charitable functions even though the described in item 2 above. conservation, or maintenance of Instructions for Schedule A (Form 990 or 990-EZ) -15-

16 Page 16 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. on acceptable methods of valuing using a computer pricing system, the income from the assets is used for charitable functions. It is a factual property for federal estate tax purposes organization may use that system to question whether an asset is held for the will be considered acceptable. determine the value of the securities. production of income or for investment The system must be acceptable to the The real estate appraisal must rather than used or held for use directly IRS for federal estate tax purposes. include a closing statement that, in the by the supporting organization or a appraiser's opinion, the appraised Compute cash balances on a Line 1b. supported organization for charitable assets were valued according to monthly basis by averaging the amount purposes. For example, an office valuation principles regularly employed of cash on hand on the first and last building used to provide offices for in making appraisals of such property, days of each month. Include all cash employees engaged in managing using all reasonable valuation methods. balances and amounts, even if they may endowment funds for the supporting The supporting organization must keep be used for charitable purposes (see organization or supported organization a copy of the independent appraisal for , later) or set aside Line 4 instructions for isn't considered an asset used for its records. If a valuation is reasonable, and taken as a distribution (see charitable purposes. the organization may use it for the tax , Section D, later). instructions for Line 5 year for which the valuation is made and When property is Dual-use property. The fair market value of assets Line 1c. for each of the 4 following tax years. used for both charitable and other other than securities for which market purposes, the property is considered Any valuation of real estate by a quotations are readily available is used entirely for charitable purposes if certified independent appraisal may be determined annually except as 95% or more of its total use is for that replaced during the 5-year period by a described later. The valuation may be purpose. If less than 95% of its total use subsequent 5-year certified made by supporting organization is for charitable purposes, a reasonable independent appraisal or by an annual employees or by any other person even allocation must be made between valuation, as described earlier. The if that person is a disqualified person. If charitable and non-charitable use. most recent valuation should be used to the IRS accepts the valuation, it is valid compute the organization's minimum only for the tax year for which it is made. Certain assets (in Excluded property. asset amount. A new valuation is required for the next addition to exempt-use assets) are If the valuation is made according to tax year. excluded entirely from the computation the above rules, the IRS will continue to of the minimum asset amount. These Valuation date. An asset required to accept it during the 5-year period for include charitable pledges and interests be valued annually may be valued as of which it applies even if the actual fair in an estate or trust (created and funded any day in the supporting organization's market value of the real estate changes by another person) prior to distribution tax year, provided the organization during the period. to the supporting organization. values the asset as of that date in all tax Line 1e. If the fair market value of any years. However, a valuation of real Line 1a. Report on line 1a the average securities, real estate holdings, or other estate determined on a 5-year basis by monthly fair market value of securities assets reported on lines 1a and 1c a certified, independent appraisal (such as common and preferred stock, reflects a blockage discount, (discussed later) may be made as of bonds, and mutual fund shares) for marketability discount, or other any day in the first tax year of the which market quotations are readily reduction from full fair market value organization to which the valuation available. A supporting organization because of the size of the asset holding applies. may use any reasonable method to or any other factor, enter on line 1e the make this determination if consistently Proration of value of assets held for aggregate amount of the discounts used. For example, a value for a part of year or in a short tax year. claimed. Provide an explanation in Part particular month might be determined The value of an asset held less than a VI that includes the following information by the closing price on the first or last full tax year is prorated by multiplying for each asset or group of assets trading day of the month or an average the value of the asset by a fraction, of involved. of the closing prices on the first and last which the numerator is the number of trading days of the month. Market A description of the asset or 1. days the organization held the asset quotations are considered readily asset group (for example, 20,000 during its tax year, and the denominator available if a security is any of the shares of XYZ, Inc., common stock); is 365 (366 if the tax year includes following. February 29). If the supporting 2. For securities, the percentage of Listed on the New York or American • organization has a short tax year, the the total issued and outstanding Stock Exchange or any city or regional value of all assets is accordingly securities of the same class that is exchange in which quotations appear prorated. represented by the organization's on a daily basis, including foreign holding; A 5-year valuation for real estate. securities listed on a recognized foreign The fair market value of the asset 3. written, certified, and independent national or regional exchange; or asset group before any claimed appraisal of the fair market value of any Regularly traded in the national or • blockage discount or other reduction; real estate, including any regional over-the-counter market for improvements, may be determined on a which published quotations are 4. The amount of the discount 5-year basis by a qualified person. The available; or claimed; and qualified person may not be a Locally traded, for which quotations • An explanation of the reason for 5. disqualified person with respect to the can be readily obtained from the discount. supporting organization or an employee established brokerage firms. In the case of securities, there are of the supporting organization. If securities are held in trust for, or on certain limitations on the size of the behalf of, a supporting organization by a Commonly accepted valuation reduction in value that can be claimed. bank or other financial institution that methods must be used in making the The organization may reduce the fair values those securities periodically real estate appraisal. A valuation based Instructions for Schedule A (Form 990 or 990-EZ) -16-

17 Page 17 of 19 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source 12:26 - 27-Nov-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. supporting organization is zero rather market value of securities only to the Line 4. Report amounts paid to acquire extent that it can establish that the than the amount as ordinarily exempt-use assets. Such assets must securities could only be liquidated in a determined. Such an organization be used (or held for use) to carry out the reasonable period of time at a price less should check the box on line 7. For exempt purposes of the supported than the fair market value because: purposes of determining whether the organizations. The assets may be used The securities are such a large block organization has an excess of • or held by either the supporting that liquidation would depress the distributions in its tax year that can be organization or one or more supported market, carried over to future years, the organizations; if the latter, the The securities are in a closely held distributable amount as ordinarily • supporting organization must make the corporation, or determined applies to every asset available to the supported The sale would result in a forced or non-functionally integrated Type III • organization(s) free of charge or for distress sale. supporting organization (including an nominal rent. See Regulations section Any reduction in value of securities may organization that checked the box on 53.4942(a)-2(c)(3) for further discussion not exceed 10% of the fair market value line 7 for the current year). The of exempt-use assets. (determined without regard to any distributable amount as ordinarily Line 5. Report qualified amounts set reduction in value). determined is reported in Sections C aside for a specific project that and E. Line 2. Enter the total acquisition accomplishes the exempt purposes of a indebtedness that applies to assets Emergency temporary reduction. In supported organization to which the included on line 1 (prorated in the case cases of disaster or emergency, the IRS supporting organization is responsive. A may provide for a temporary reduction of assets held for a portion of the year or qualified set-aside counts toward the in a short tax year). For details on in the distributable amount by distribution requirement in the tax year publication in the Internal Revenue acquisition indebtedness, see section set aside but not again when paid. Bulletin. In these cases, the reduced 514(c)(1). For each Approval required. amount should be reported on line 6 Line 4. Supporting organizations may set-aside, a supporting organization and the reduction noted in Part VI. exclude from the minimum asset must obtain the written approval of both amount the reasonable cash balances Section D. Distributions the pertinent supported organization(s) necessary to cover current and the IRS. The supporting Section D sets forth the supporting administrative expenses and other organization must apply to the IRS for organization’s distributions that count normal and current disbursements approval (using Form 8940) before the toward its distribution requirement, and directly connected with the charitable, end of its tax year in which the amount determines whether the attentiveness educational, or other similar activities. is set aside. Explain in Part VI whether requirement is met. The amount of a The amount of cash that may be the organization has requested and distribution made to a supported excluded is generally 1.5% of the fair obtained the necessary approvals for organization is the amount of cash or market value of all assets (minus any the set-aside. See Regulations section fair market value of property on the date acquisition indebtedness). However, if 1.509(a)-4(i)(6)(v) for more information. of distribution. The organization must under the facts and circumstances an use the cash method of accounting for Line 6. Report any other distributions amount larger than the deemed amount this purpose. See Regulations section not described above that the is necessary to pay expenses and 1.509(a)-4(i)(6). organization claims are for the use of its disbursements, then the organization supported organizations, and describe Report amounts paid to Line 1. may enter the larger amount instead such distributions in detail in Part VI . supported organizations to accomplish (prorated in the case of a short tax their exempt purposes. Distributions year). If the organization uses a larger Lines 8–10. Report on line 8 the furthering the “exempt” purposes of amount, explain why in Part VI. amount of distributions reported on supported organizations not described line 1 to supported organizations that Enter the amount of recoveries Line 7. in section 501(c)(3) refer solely to met the attentiveness and (if any) reportable in Section A, line 2. distributions for section 501(c)(3) responsiveness tests discussed later, purposes. Section C. Distributable and provide in the supplemental Part VI information discussed later. Amount Line 2. Report amounts paid to perform any activity that directly furthers exempt A Type III non-functionally integrated The organization’s distributable amount purposes of supported organizations supporting organization must distribute for the current tax year is ordinarily the and that would otherwise normally be at least one-third of its distributable greater of: engaged in by the supported amount each tax year to one or more 85% of its adjusted net income 1. organizations, but only to the extent that supported organizations that are for the prior tax year or expenses from the activity exceed “attentive” to its operations and to which Its minimum asset amount for the 2. income from the activity. See the the supporting organization is prior tax year, Schedule A, , Section E, line 2, Part IV “responsive” (as described later); thus, instructions on “direct furtherance” the line 10 amount must be at least less income taxes imposed on the activities. 0.333. Carryovers of excess organization during the prior tax year. distributions from prior years don't count See Regulations section Report reasonable and Line 3. toward the attentiveness requirement. 1.509(a)-4(i)(5)(ii)(B). necessary administrative expenses paid If the line 10 amount is less than to accomplish exempt purposes of First tax year. The distributable one-third (that is, the amount of supported organizations. Don't include amount for the first tax year that an distributions to supported organizations expenses incurred in the production of organization is treated as a that met both the attentiveness test and investment income. non-functionally integrated Type III responsiveness test is less than Instructions for Schedule A (Form 990 or 990-EZ) -17-

18 Page 18 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. the rules for qualifying distributions by donor-advised fund of the supported one-third of the distributable amount), then the organization doesn't qualify as private foundations), and older organization are disregarded in a Type III non-functionally integrated carryovers are applied before newer determining attentiveness. supporting organization for the tax year. carryovers. Excess distributions of a See the examples in Regulations See Regulations sections given year can't be carried over for more section 1.509(a)-4(i)(5)(iii)(D). 1.509(a)-4(i)(5)(i) and (iii). If the than 5 years. A supporting Responsiveness test. organization doesn't otherwise qualify X is a Type III Example 1. organization is “responsive” to the as a public charity, then the organization non-functionally integrated supporting needs and demands of a supported is a private foundation and must file organization that for its tax year organization if it meets the Form 990-PF for the tax year. including December 28, 2015, and responsiveness test set forth in the through its following 2016 tax year Attentiveness test. A supported Lines , Section D, Part IV instructions for meets the requirements of Regulations organization is “attentive” to the 2 and 3 , with respect to the supported section 1.509(a)-4(i)(3)(iii) as in effect operations of a supporting organization organization. prior to December 28, 2015. Under if, during the tax year, at least one of the transition rules, X is deemed to meet its Supplemental information following requirements is satisfied. distribution requirement for 2016, but its In required. , identify each of the Part VI 1. The supporting organization distributable amount is calculated in the supported organizations listed in Part I , distributes to the supported organization ordinary manner to determine its excess Line 12g, column (i), that met both of the at least 10% of the supported distributions. For 2016, X had a following conditions for the tax year. organization’s total support in its tax distributable amount, as ordinarily 1. The supporting organization was year ending before the beginning of the determined, of $80,000 and responsive to the supported supporting organization’s tax year. For distributions of $100,000. Accordingly, organization, and example, if the supporting organization X had excess distributions of $20,000. and the supported organization both 2. The supported organization was For 2017, X had a distributable amount use a calendar year, and the supported attentive to the supporting organization. of $95,000 and distributions of $85,000. organization has total support of $X in a With respect to each of the identified X first applied its 2016 excess year, then the supporting organization’s supported organizations, set forth the distributions carryover of $20,000 to the support in the following year must be at facts that show how both the 2017 distributable amount of $95,000. least 10% of $X. Where the supporting attentiveness test and the Then, X applied $75,000 of its 2017 organization supports a particular responsiveness test were met by the distributions of $85,000 to the remaining department or school of a university, supporting organization and the 2017 distributable amount. Accordingly, hospital, or church, the department’s or supported organization. X has excess distributions of $10,000 school’s total support is considered from 2017 (2017 distributions of Section E. Distribution instead. $85,000 minus $75,000 applied to the Allocations The amount of support received 2. 2017 distributable amount), which it from the supporting organization is Section E determines whether the may carry over to 2018. For 2018, X has necessary to avoid the interruption of a distributable amount for the current tax a distributable amount of $100,000 and particular function or activity of the year (and any underdistribution for distributions of $150,000. X applies the supported organization. reasonable cause in a prior year) is $10,000 excess distribution carryover satisfied through current-year from 2017 to the 2018 distributable The amount of support received 3. distributions and carryovers of amount. Then, X applies $90,000 of its from the supporting organization is a prior-year excess distributions. 2018 distributions to the remaining 2018 sufficient part of the supported Section E also determines carryovers of distributable amount. Section E will organization’s total support to ensure excess distributions to future years. show $0 carryovers for 2016 and 2017 attentiveness, based on all pertinent Several lines in Section E aren't yet (because the excess carryovers for facts, including the number of supported applicable during the phase-in period of each of those years were previously organizations, the length and nature of the new regulations for Type III applied). In addition, Section E will show the relationship between the supporting non-functionally integrated supporting excess distributions of $60,000 in 2018 organization and supported organizations. Those lines are grayed (2018 distributions of $150,000 minus organization, and the purpose to which out. $90,000 applied to the 2018 the funds are put. The attentiveness of a distributable amount), which it may carry supported organization is normally In applying distributions, there are over in the next 5 tax years until applied. influenced by the amounts received three basic steps. from the supporting organization, but Example 2. Y is a Type III First, apply distributions to 1. evidence of actual attentiveness to the supporting organization that for its tax eliminate any underdistribution for operations (including investments) of year including December 28, 2015, reasonable cause in a prior tax year. the supporting organization is of almost meets the requirements of Regulations equal importance. Where the supporting Second, apply distributions to 2. section 1.509(a)-4(i)(3)(iii) as in effect organization supports a particular satisfy the distributable amount for the prior to such date, but doesn't meet department or school of a university, current year. such requirements in its following 2016 hospital, or church, the department’s or tax year (because of underdistributions 3. Third, carry over to future years school’s total support is considered for which the prior regulation didn't any remaining excess distributions. instead of the supported organization’s expressly provide a reasonable cause total support. Apply the oldest distributions first. exception). Therefore, Y didn't benefit Carryovers of excess distributions from from the transition rule for its 2016 tax Amounts received from a supporting prior years are always applied in full year. Y's distributable amount was organization that are held in a before current-year distributions (unlike $120,000 for 2016. Y made distributions Instructions for Schedule A (Form 990 or 990-EZ) -18-

19 Page 19 of 19 12:26 - 27-Nov-2018 Fileid: ... 0-EZ(SCHA)/2018/A/XML/Cycle04/source The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. beyond its control, a clerical error, or an return for the 2017 tax year. The sum of of that amount and had no excess distributions to carry over to 2017. Y incorrect valuation of assets; the amounts on lines 3d and 3e is also calculated that its distributable amount reported on line 3f. The amount 2. The failure was due to reasonable was $150,000 for 2017 and made reported on line 3f is then applied in the cause and not to willful neglect; and distributions of exactly that amount in following priority. The distribution requirement is 3. 2017. Early in its 2018 tax year, Y First to any prior-year 1. met within 180 days after the discovers that its distributable amount underdistributions on line 3g, organization is first able to distribute its for 2017 actually was $200,000. Within 2. Second (if any remaining amount) distributable amount notwithstanding 180 days, Y makes a $110,000 to the current-year distributable amount the unforeseen events or distribution ($50,000 to cover the on line 3h, and circumstances, or within 180 days after underdistribution for 2017 and $60,000 the clerical error or incorrect valuation 3. Third (if any remaining amount) as part of its 2018 distributions). Later in was or should have been discovered. on line 3j for carryover to future years. the 2018 tax year, Y makes additional distributions totaling $200,000. Y’s Amounts paid to meet a distribution Excess distributions can't be carried distributable amount in the 2018 tax requirement of a prior tax year can't also over for more than 5 tax years and thus year is $190,000. In its 2018 Form 990, be counted toward the distribution are forfeited if not used in the fifth year Y claims reasonable cause for the 2017 requirement for the tax year in which of carryover. Such amounts are set forth underdistribution due to a clerical error. paid. in line 3i (not applicable to the 2018 Under these circumstances, Y first return). Judicial proceeding exception. applies $50,000 of its 2018 distributions An organization is excused from Line 4. Apply the current-year of $310,000 to the 2017 meeting the distribution requirements to distributions (from Section D, line 7) in underdistribution of $50,000 ($200,000 the extent of a conflicting mandatory the same order of priority as described minus $150,000), then applies provision in its governing instrument, if a in the instructions for Line 3 to any $190,000 of its remaining 2018 judicial proceeding is pending to reform prior-year underdistributions (line 4a) distributions of $260,000 ($310,000 a governing instrument that prohibits and current-year distributable amount minus $50,000) to satisfy its 2018 compliance, under the circumstances (line 4b) remaining after applying distributable amount. Y’s remaining set forth in Regulations section carryovers on line 3. Any remaining $70,000 of distributions in 2018 1.509(a)-4(i)(11)(ii)(E). distributions are reported on line 4c for ($310,000, minus $50,000 allocated to carryover to future years. 2017, and minus $190,000 allocable to Lines 7 and 8. Enter on line 7 the 2018) are excess distributions that may prior-year carryover and the Lines 5 and 6. If the current-year be carried over to future years. current-year distributions to the extent distributable amount is greater than the not applied to prior-year sum of the excess distributions Line 1. Report the distributable amount underdistributions and the current-year carryover from the prior year plus the for 2018 from Section C, line 6. distributable amount (and not already current-year distributions, then the An organization that is treated Line 2. carried over for 5 tax years). The organization doesn't meet the as a non-functionally integrated Type III organization may carry over these distribution requirement and can't supporting organization for the first time amounts to future years. Prior-year qualify as a Type III non-functionally in its 2017 tax year will have a carryovers are applied before integrated supporting organization for distributable amount of zero during the current-year distributions. the tax year, unless an exception 2017 tax year. applies. If the organization doesn't If the organization had any Part VI. Supplemental qualify as a supporting organization or underdistributions for a prior tax year otherwise as a public charity for the tax Information (2016 or 2017), then it didn't qualify as a year, then it is a private foundation and Use Part VI to provide narrative Type III non-functionally integrated must file Form 990-PF for the tax year information required by these supporting organization in that tax year and subsequent years until private instructions or to supplement responses and subsequent years (and would be foundation status is terminated under to questions on Schedule A (Form 990 classified as a private foundation unless section 507. If either the reasonable or 990-EZ). Identify the specific part and it met the requirements of another public cause or judicial proceeding exception line number that the response supports, charity status) unless it met the applies, then explain in detail in Part VI in the order in which they appear on requirements of the reasonable cause how the organization met the Schedule A (Form 990 or 990-EZ). Part exception or the judicial proceeding requirements for the exception. can be duplicated if more space is VI exception discussed in the instructions needed. Reasonable cause exception. An for , later. If the Lines 5 and 6 organization that fails to distribute its Don't include in the Part VI organization met either of these distributable amount won't be classified names of any donors, grantors, exceptions, explain in detail in Part VI ! as a private foundation for the year of CAUTION or contributors because Part VI how the organization met the the failure if the organization establishes will be made available for public requirements for the exception. to the satisfaction of the IRS that: inspection. On lines 3d and 3e, enter the Line 3. 1. The failure was due to amounts reported on lines 8d and 8e, unforeseen events or circumstances respectively, from the organization's Instructions for Schedule A (Form 990 or 990-EZ) -19-

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