Must our organization, a primary school, report in Schedule L, Part III the name of one of our officer’s family members to whom we granted a scholarship?

No. Grants or assistance provided to an interested person as a member of the class that the organization intends to benefit in furtherance of its exempt purposes generally do not need to be reported in Part III, Schedule L, if such grants or assistance are provided on similar terms as are provided to other members of the class. However, grants for travel, study, or other similar purposes to interested persons do need to be reported in Part III.

Recognizing privacy issues, the type of reporting required in Part III for colleges, universities, and primary and secondary schools is limited.  The school is not required to identify individuals to whom it provided such assistance.  Instead, these organizations must, in Part III, group each type of financial assistance (e.g., need-based scholarships, merit scholarships, discounted tuition) provided to interested persons in separate lines.  For each line, the school should report in column (c) the type of assistance and aggregate dollar amount of that assistance, unless such reporting would constitute an unauthorized disclosure of student education records under the Family Educational Rights and Privacy Act (FERPA).  Columns (a) and (b) should be left blank for these lines.

Additional information

Schedule L instructions