Table of Contents
- Completing the Heading of Form 990-EZ
- Guidelines for Meeting the Requirements of Schedule B
- Part I. Revenue, Expenses, and Changes in Net Assets or Fund Balances
- Revenue:Line 1. Contributions, Gifts, Grants, and Similar Amounts Received
- Line 2. Program Service Revenue Including Government Fees and Contracts
- Line 3. Membership Dues and Assessments
- C. What is not included on line 3?
- Line 4. Investment Income
- Lines 5a through 5c. Gains (or Losses) From Sale of Assets Other Than Inventory
- Expenses:Line 10. Grants and Similar Amounts Paid
- Net Assets:
- Part II. Balance Sheet
- Part III. Statement of Program Service Accomplishments
- Part IV. List of Officers, Directors, Trustees, and Key Employees
- Part V. Other Information
- Line 33. Change in Activities
- Line 34. Changes in Organizing or Governing Documents
- Lines 35 a-b. Unrelated Business Income
- Line 36. Liquidation, Dissolution, Termination, or Significant Disposition of Net Assets
- Line 37. Expenditures for Political Purposes
- Line 38. Loans To or From Officers, Directors, Trustees, and Key Employees
- Line 39. Section 501(c)(7) Organizations
- Line 40a. Section 501(c)(3) Organizations: Disclosure of Excise Taxes Imposed under Section 4911, 4912, or 4955
- Line 40b. Section 501(c)(3) and 501(c)(4) Organizations: Disclosure of Section 4958 Excess Benefit Transactions and Excise Taxes
- Line 40c. Taxes Imposed on Organization Managers or Disqualified Persons
- Line 40d. Taxes Reimbursed by the Organization
- Line 40e. Tax on Prohibited Tax Shelter Transactions
- Line 41. List of States
- Line 42a. Location of Books and Records
- Line 42b. Foreign Financial Accounts
- Line 43. Section 4947(a)(1) Nonexempt Charitable Trusts
- Trust fund recovery penalty.
- Line 44a. Donor Advised Funds
- Line 44b. Hospital facilities
- Lines 44c-d. Payments for indoor tanning services
- Line 45a. Section 512(b)(13) Controlled Entity
- Line 46. Political Campaign Activities
- Part VI. Section 501(c)(3) Organizations
- Signature Block
Completing the Heading of Form 990-EZ.
The instructions that follow are keyed to items in the heading for Form 990-EZ.
File the 2012 return for calendar year 2012 and fiscal years that began in 2012 and ended in 2013. For a fiscal year return, fill in the tax year space at the top of page 1. See General Instruction C for additional information about accounting periods.
Check this box if the organization changed its address and has not reported such a change on its most recently filed Form 990, 990-EZ, or 990-N, or in correspondence to the IRS.
Check this box if the organization changed its legal name (not its “doing business as” name) and has not reported such change on its most recently filed Form 990 or 990-EZ or in correspondence to the IRS. If the organization changed its name, file Form 990-EZ by paper and attach the following documents (see line 34 instructions):
|IF the organization is:||THEN attach:|
|A corporation||Amendments to the articles of incorporation with proof of filing with the state of incorporation.|
|A trust||Amendments to the trust agreement signed by the trustee.|
|An unincorporated association||Amendments to the articles of association, constitution, bylaws, or other organizing document, with the signatures of at least two officers/members.|
Check this box if this is the first time the organization is filing a Form 990-EZ and it has not previously filed a Form 990, 990-PF, 990-T, or 990-N.
Enter the organization's legal name in the “Name of organization” box. If the organization operates under a name different from its legal name, identify its alternate name, after the legal name, by writing “a.k.a.” (also known as) and the alternate name of the organization. If multiple a.k.a. names will not fit in the box, list them in Schedule O. However, if the organization has changed its legal name, follow the instructions in Item B. Checkboxes for reporting the name change.
Include the suite, room, or other unit number after the street address. If the Post Office does not deliver mail to the street address and the organization has a P.O. box, enter the box number instead of the street address.
If the organization receives its mail in care of a third party (such as an accountant or an attorney), enter on the street address line C/O followed by the third party's name and street address or P.O. box.
For foreign addresses, enter information in the following order: city, province or state, and the name of the country. Follow the foreign country's practice in placing the postal code in the address. Please do not abbreviate the country name.
Use the employer identification number (EIN) provided to the organization for filing its Form 990-EZ and federal tax returns. The organization must have only one EIN. If the organization has more than one EIN and has not been advised which to use, notify the:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
State what EINs the organization has, the name and address to which each number was assigned, and the address of the organization's principal office. The IRS will advise the organization which number to use.
Enter a telephone number of the organization that members of the public and government personnel can use during normal business hours to obtain information about the organization's finances and activities. If the organization does not have a telephone number, enter the telephone number of an organization official who can provide such information.
Enter the four-digit group exemption number if the organization is included in a group exemption. The group exemption number (GEN) is a number assigned by the IRS to the central/parent organization of a group that has a group exemption letter. Contact the central/parent organization to ascertain the GEN assigned.
Indicate the method of accounting used in preparing this return. See General Instruction C.
Whether or not the organization enters any amount on line 1 of Form 990-EZ, the organization must either check the box in Item H or attach Schedule B (Form 990, 990-EZ, or 990-PF). Failure to either check the box in Item H or file Schedule B will result in a determination that the return is incomplete. Complete and file Schedule B if the organization met any of the following conditions during the tax year:
It is a section 501(c)(3) organization and met the 33 1/3% support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi), and received from any one contributor, during the tax year, contributions of the greater of $5,000 (in money or property) or 2% of the amount on Form 990-EZ, Part I, line 1 (contributions, gifts, grants, and similar amounts received);
It is a section 501(c)(3) organization that did not meet the 33 1/3% support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi), and received during the tax year contributions of $5,000 or more from any one contributor;
It is a section 501(c)(7), 501(c)(8), or 501(c)(10) organization that received, during the tax year, (a) contributions of any amount for use exclusively for religious, charitable, scientific, literary, or educational purposes, or (b) contributions of $5,000 or more not exclusively for such purposes from any one contributor; or
It is not a section 501(c)(3), 501(c)(7), 501(c)(8), or 501(c)(10) organization and it received during the tax year contributions of $5,000 or more from any one contributor. See the instructions to Schedule B for more information.
|If||A section 501(c)(3) organization that met the 331/3% support test of the regulations under section 509(a)(1) and section 170(b)(1)(A)(vi) did not receive a contribution of the greater of $5,000 or 2% of the amount on line 1 of Form 990-EZ from any one contributor,*|
|Then||The organization should check the box in Item H to certify that it is not required to attach Schedule B.|
|Otherwise||Complete and attach Schedule B.|
|If||A section 501(c)(7), (8), or (10) organization received neither (1) any contribution or bequest for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals, nor (2) any contribution of $5,000 or more not exclusively for such purposes from any one contributor,|
|Then||The organization should check the box in Item H to certify that it is not required to attach Schedule B.|
|Otherwise||Complete and attach Schedule B.|
|If||The organization did not receive a contribution of $5,000 or more from any one contributor* (reportable on line 1 of the Form 990-EZ),|
|Then||The organization should check the box in Item H to certify that it is not required to attach Schedule B.|
|Otherwise||Complete and attach Schedule B.|
* To determine if the organization received a contribution of $5,000 or more from a contributor during the year, add all direct and indirect gifts, grants, or contributions of $1,000 or more in cash or property that a contributor made to the organization during the year. Do not include smaller gifts, grants, or contributions. See Instructions for Schedule B for more information.
Enter the organization’s current address for its primary website, as of the date of filing this return. If the organization does not maintain a website, enter “N/A” (not applicable).
Check the applicable box to show the organization's tax-exempt status. If the organization is exempt under section 501(c), check the 501(c) box and insert the appropriate subsection number within the parentheses (for example,“4” for a 501(c)(4) organization). See the chart in Appendix A: Exempt Organization Reference Chart. The term section 501(c)(3) includes organizations exempt under sections 501(e), (f), (k), and (n).
Check this box if the organization is not a section 509(a)(3) supporting organization or a section 527 organization; and its gross receipts are normally $50,000 or less but the organization chooses to file Form 990-EZ. If the organization's annual gross receipts are normally not greater than $50,000, it may be required to submit the Form 990-N (e-Postcard) if it does not file the Form 990 or 990-EZ. If the organization chooses to file Form 990-EZ, be sure to file a complete return. See Appendix B for a discussion of gross receipts and General Instruction H for a discussion of a complete return.
Add lines 5b, 6c, and 7b to line 9 to determine gross receipts. See Appendix B and Appendix C for discussion of gross receipts.
Only those organizations with gross receipts of less than $200,000 and total assets of less than $500,000 at the end of the tax year can use the Form 990-EZ. If the organization does not meet these requirements, it must file Form 990, unless excepted under General Instruction B.
All organizations filing Form 990-EZ with the IRS or any state must complete Part I. Some states that accept Form 990-EZ in place of their own forms may require additional information. See Appendix G.
Check the box in the heading of Part I if Schedule O (Form 990 or 990-EZ) contains any information pertaining to this part.
Neither Form 5500 nor DOL Forms L-2 or L-3 should be substituted for the Form 990-EZ, lines 1-17.
Report amounts received as voluntary contributions; for example, payments, or the part of any payment, for which the payer (donor) does not receive fair market value (FMV) from the recipient (donee) organization. Contributions are reported on line 1 regardless of whether they are deductible by the contributor.
Enter the gross amounts of contributions, gifts, grants, and bequests that the organization received from individuals, trusts, corporations, estates, affiliates, foundations, public charities, and other exempt organizations, or raised by an outside professional fundraiser.
Report the value of noncash contributions at the time of the donation. For example, report the gross value of a donated car as of the time the car was received as a donation.
Report all related expenses on lines 12 through 16. Enter on line 13 professional fundraising fees relating to the gross amounts of contributions collected in the charity's name by fundraisers.
Reporting line 1 amounts in accordance with SFAS 116 (ASC 958), Accounting for Contributions Received and Contributions Made, generally is acceptable (though not required) for Form 990 and 990-EZ purposes, but the value of donated services or use of materials, equipment, or facilities may not be reported. However, state law may require it. An organization that receives a grant to be paid in future years should, according to SFAS 116 (ASC 958), report the grant's present value on line 1. Accruals of present value increments to the unpaid grant should also be reported on line 1 in future years.
The organization must report any contributions of conservation easements and other qualified conservation contributions consistently with how it reports revenue from such contributions in its books, records, and financial statements.
Report assets contributed to the organization by another entity in the course of the entity’s liquidation, dissolution, or termination.
Do not net losses from uncollectible pledges, refunds of contributions and service revenue, or reversal of grant expenses on line 1. Rather, report any such items as Other changes in net assets or fund balances on Part I, line 20, and explain in Schedule O.
Fundraising activities relate to soliciting and receiving contributions. However, fundraising activities such as dinners, door-to-door sales of merchandise, carnivals, and bingo games can produce both contributions and revenue. Report as a contribution, both on line 1 and on line 6b (within the parentheses), any amount received through such a fundraising event that is greater than the FMV (retail value) of the merchandise or services furnished by the organization to the contributor. Report all gross income from gaming activities on line 6a.
This situation usually occurs when organizations seek support from the public through solicitation programs that are in part fundraising events or activities and are in part solicitations for contributions. The primary purpose of such solicitations is to receive contributions and not to sell the merchandise at its retail value, even though this might produce a profit.
An organization holds a dinner, charging $400 per person for the meal. The dinner has a retail value of $160. A person who purchases a ticket is really purchasing the dinner for $160 and making a contribution of $240. The contribution of $240, which is the difference between the buyer's payment and the retail value of the dinner, is reported on line 1 and again on line 6b (within the parentheses). The revenue received ($160 retail value of the dinner) is reported on line 6b. Expenses directly related to the dinner are reported on line 6c. Fundraising expenses relating to the contribution of $240 are reported on lines 12 through 16.
If a contributor gives more than $160, that person would be making a contribution of, the difference between the dinner's retail value of $160 and the amount actually given. Rev. Rul. 67-246, 1967-2 C.B. 104, explains this principle in detail. See also the instructions for line 6 and Pub. 526, Charitable Contributions.
If an organization offers goods or services of only nominal or insubstantial value through a fundraising event, or distributes free, unordered, low-cost items to patrons, report the entire amount received for such benefits as a contribution on line 1. See also the instruction for line 6, B1 regarding nominal or insubstantial value. Report all related expenses on lines 12 through 16.
Benefits have a nominal or insubstantial value if the organization informs patrons how much of their payment is a deductible contribution, and either:
The FMV of all of the benefits received in connection with the payment is not more than 2% of the payment or $99, whichever is less, or
The payment is $49.50 or more and the only benefits received in connection with the payment are token items (bookmarks, calendars, key chains, mugs, posters, T-shirts, etc.) bearing the organization's name or logo. The cost to the organization (as opposed to FMV) of all benefits received by a donor must, in the aggregate, be $9.90 or less.
Include on line 1 membership dues and assessments to the extent they are contributions and not payments for benefits received. (See the instruction for Line 3. C1.)
Grants made to encourage an organization receiving the grant to carry on programs or activities that further the grant recipient's exempt purposes are grants that are equivalent to contributions. Report them on line 1. The grantor can specify which of the recipient's activities the grant may be used for, such as an adoption program or a disaster relief project.
A grant is still equivalent to a contribution if the grant recipient performs a service, or produces a work product, that benefits the grantor incidentally (but see the instruction for Line 1. B1. below).
Whether a payment from a governmental unit is labeled a “grant” or a “contract” does not determine whether the payment should be reported on line 1. Rather, a grant or other payment from a government unit is treated as a grant equivalent to a contribution if its primary purpose is to enable the recipient to provide a service to, or maintain a facility for, the direct benefit of the public rather than to serve the direct and immediate needs of the grantor (even if the public pays part of the expense of providing the service or facility). (See the instruction for Line 2. D., later.)
Payments by a governmental unit for the construction or maintenance of library or museum facilities open to the public,
Payments by a governmental unit to nursing homes to provide health care to their residents (but not Medicare, Medicaid, and other similar payments on behalf of specific individuals under the line 2 instructions), and
Payments by a governmental unit to child placement or child guidance organizations under government programs to better serve children in the community.
The following examples illustrate the distinction between government payments reportable on lines 1 and 2.
A payment by a governmental agency to a medical clinic to provide vaccinations to the general public is a contribution reported on line 1. A payment by a governmental agency to a medical clinic to provide vaccinations to employees of the agency is program service revenue reported on line 2.
A payment by a governmental agency to an organization to provide job training and placement for disabled individuals is a contribution reported on line 1. A payment by a governmental agency to the same organization to operate the agency's internal mail delivery system is program service revenue reported on line 2.
Contributions received indirectly from the public through solicitation campaigns of federated fundraising agencies (United Way) are included on line 1.
Include on line 1 amounts contributed by other organizations closely associated with the filing organization. This includes contributions received from a parent organization, subordinate, or another organization having the same parent.
Include amounts contributed by a commercial co-venture on line 1. These contributions are amounts received by the organization for allowing an outside organization (donor) or individual to use the recipient organization's name in a sales promotion campaign, such as where the outside organization agrees to contribute 2% of all sales proceeds to the organization.
A grant is a payment for services, and not a contribution, when the terms of the grant provide the grantor with a specific service, facility, or product, rather than providing a benefit to the general public or that part of the public served by the grant recipient. The recipient organization would report such a grant as income on line 2 (program service revenue).
Do not include the value of services donated to the organization (such as the value of donated advertising space or broadcast air time), or of the free use of property (materials, equipment, or facilities) as contributions on line 1. However, for the optional reporting of those amounts, see the instructions for donated services in Part III.
Any unreimbursed expenses of officers, employees, or volunteers do not belong on the Form 990-EZ. See the explanations of charitable contributions and employee business expenses in Pub. 526, Charitable Contributions, and Pub. 463, Travel, Entertainment, Gift, and Car Expenses.
Section 501(c)(9) organizations provide participants with life, sick, accident, or other similar benefits. Section 501(c)(17) organizations provide participants with supplemental unemployment benefits, and sickness and accident benefits subordinate to supplemental unemployment benefits. Section 501(c)(18) organizations provide participants with pension(s) and similar benefits. When such an organization receives payments from participants, or their employers, to provide these benefits, report the payments on line 2 as program service revenue, rather than on line 1 as contributions.
Enter the total program service revenue (exempt function income). Program services are primarily those that form the basis of an organization's exemption from tax.
Enter members' and affiliates' dues and assessments that are not contributions.
When the organization receives dues and assessments the value of which compare reasonably with the value of benefits provided to members (whether or not the membership benefits are used by the members), report such dues and assessments on line 3.
Organizations described in section 501(c)(5), (6), or (7) generally provide benefits with a reasonable relationship to dues, although benefits to members can be indirect.
Dues received by an organization, to the extent they exceed the monetary value of the membership benefits available to the dues payer, are a contribution that should be reported on line 1.
If a member pays dues primarily to support the organization's activities, and not to obtain benefits of more than nominal or insubstantial monetary value, those dues are a contribution to the organization includible on line 1.
M is an organization whose primary purpose is to support the local symphony orchestra. Members have the privilege of purchasing subscriptions to the symphony's annual concert series before they go on sale to the general public, but must pay the same price as any other member of the public. They also are entitled to attend a number of rehearsals each season without charge. Under these circumstances, M's receipts from members are contributions reported on line 1.
Include the amount of interest received from interest-bearing checking accounts, savings, and temporary cash investments, such as money market funds, commercial paper, certificates of deposit, and U.S. Treasury bills or other governmental obligations that mature in less than one year. So-called dividends or earnings received from mutual savings banks, money market funds, etc., are actually interest and should be included on this line.
Include dividends from equity securities (stocks), and interest income from debt securities and notes and loans receivable, other than program-related investments. Include amounts received from payments on securities loans, as defined in section 512(a)(5).
Include gross rental income received during the year from investment property (other than program-related investments reported on line 2).
Include, for example, the organization’s share of investment income from a joint venture, limited liability company, or other entity treated as a partnership for federal tax purposes. Also include royalties received by the organization from licensing the ongoing use of its property to others (other than royalties generated as part of the organization's exempt function, such as royalties received from a publisher for an educational work authored by the organization, which should be reported on line 2 as program service revenue). Typically royalties are received for the use of intellectual property, (copyrights, patents, and trademarks). Royalties also include payments to the owner of property for the right to exploit natural resources on the property, such as oil, natural gas, or minerals.
Do not deduct investment management fees from the amount of investment income reported on this line, but report these fees on Part I, line 13.
Do not include on this line any capital gains dividends. They are reported on line 5. Also do not include unrealized gains and losses on investments carried at market value. See the instructions for line 20.
Do not include on line 4 amounts that represent income from an exempt function (program service). Report these amounts on line 2 as program service revenue. Report expenses related to this income on lines 12 through 16.
Report on line 5a all sales of securities and sales of all other types of investments (real estate, royalty interests, or partnership interests) as well as sales of all other non-inventory assets (program-related investments and fixed assets used by the organization in its related and unrelated activities). Also report capital gains dividends, the organization’s share of capital gains and losses from a joint venture, limited liability company, or other entity treated as a partnership for federal tax purposes, and capital gains distributions from trusts.
Total the cost or other basis (less depreciation) and selling expenses and enter the result on line 5b. On line 5c, enter the net gain or loss.
For reporting sales of securities on Form 990-EZ, the organization can use the more convenient way to figure the organization's gain or loss from sales of securities by subtracting from the sales price the average-cost basis of the particular security sold. However, the average-cost basis is not used to figure the gain or loss from sales of securities reportable on Form 990-T.
Do not include on line 5 any unrealized gains or losses on securities that are carried in the books of account at market value. See the instructions for line 20.
The organization should maintain books and records to substantiate information regarding any securities or other assets sold for which market quotations were not published or were not readily available. The recorded information should include:
A description of the asset,
Whether acquired by donation or purchase,
Date sold and to whom sold,
Gross sales price,
Cost, other basis, or if donated, value at time acquired,
Expense of sale and cost of improvements made after acquisition, and
Depreciation since acquisition, if depreciable property.
Report gross income from gaming in line 6a if the organization conducted directly, or through a promoter, any amount of gaming during the year. Report the gross income from all gaming activities (other than gaming that is incidental to a fundraising event such as a dinner/dance), whether or not regularly carried on, in line 6a.
Gaming includes (but is not limited to), bingo, pull tabs, instant bingo (including satellite and progressive bingo), Texas Hold-Em Poker and other card games, raffles, scratch-offs, charitable gaming tickets, break-opens, hard cards, banded tickets, jar tickets, pickle cards, Lucky Seven cards, Nevada Club tickets, casino nights/Las Vegas nights (other than events not regularly carried on in which participants can play casino-style games but the only prizes or auction items provided to participants are noncash items that were donated to the organization, which events are fundraising events), and coin-operated gambling devices. Coin-operated gambling devices include slot machines, electronic video slot or line games, video poker, video blackjack, video keno, video bingo, video pull tab games, etc.
Many games of chance are taxable. Income from bingo games is generally not subject to the tax on unrelated business income if the games meet the legal definition of bingo. For a bingo game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game.
A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion from unrelated business income, regardless of its name. For example, “instant bingo” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. See Pub. 598, Tax on Unrelated Business Income of Exempt Organizations; Pub. 3079, Tax-Exempt Organizations and Gaming; and Form 990-T, Exempt Organization Business Income Tax Return.
Fundraising events and activities only incidentally accomplish an exempt purpose. Their sole or primary purpose is to raise funds to finance the organization's exempt activities. They do not include events or activities that substantially further the organization's exempt purpose even if they also raise funds. They do not include activities regularly carried on. Fundraising events do not include gaming, gross income from which is reported on line 6a.
An organization formed to promote and preserve folk music and related cultural traditions holds an annual folk music festival featuring concerts, handicraft demonstrations, and similar activities. Because the festival directly furthers the organization's exempt purpose, income from ticket sales should be reported on line 2 as program service revenue.
Fundraising events and activities raise funds by offering goods or services that have more than a nominal or insubstantial value (compared to the price charged) for a payment that is more than the direct cost of those goods or services. See line 1 instructions A1 and A2 for a discussion on contributions reportable on line 1 and revenue reportable on line 6b.
The fact that tickets, advertising, or solicitation materials refer to a required payment as a donation or contribution does not control how these payments should be reported on Form 990-EZ.
The gross income from fundraising events must be reported in the right-hand column on line 6b without reduction for cash or noncash prizes, cost of goods sold, compensation, fees, or other expenses.
When an organization receives payments for goods or services offered through a fundraising event, enter:
As gross revenue, on line 6b (in the right-hand column), the retail value of the goods or services,
As a contribution, on both line 1 and line 6b (within the parentheses), any amount received that exceeds the retail value of the goods or services given.
At a fundraising event, an organization received $100 in gross receipts for goods valued at $40. The organization entered gross revenue of $40 on line 6b and entered a contribution of $60 on both line 1 and within the parentheses on line 6b. The contribution was the difference between the gross revenue of $40 and the gross receipts of $100.
If the goods or services offered at the fundraising event have only nominal or insubstantial value, include all of the receipts as contributions on line 1 and all of the related expenses on lines 12 through 16.
Report gross income from gaming on line 6a. Report as a contribution, on line 1, the proceeds of solicitation campaigns in which the names of contributors and other respondents (who were not required to make a minimum payment) are entered in a drawing for prizes.
Where a minimum payment is required for each raffle or lottery entry and prizes of only nominal or insubstantial value are awarded, report any amount received as a contribution. Report the related expenses on lines 12 through 16.
An activity that generates only contributions, such as a solicitation campaign by mail, is not a fundraising event. Any amount received should be included on line 1 as a contribution. Related expenses are reportable on lines 12 through 16.
If the organization reports more than $15,000 on line 6a, then it must complete Part III (Gaming) of Schedule G (Form 990 or 990-EZ), Supplemental Information Regarding Fundraising or Gaming Activities. If the sum of the organization's gross income and contributions from fundraising events (including the amounts reported on line 6b and in the parentheses for line 6b), is greater than $15,000, then it must complete Schedule G, Part II (Fundraising Events). Organizations filing Form 990-EZ are not required to complete Schedule G, Part I (Fundraising Activities).
Enter the total income from all sources not covered by lines 1 through 7. Examples of line 8 income are interest on notes receivable not held as investments or as program-related investments (defined in the line 2 instructions); interest on loans to officers, directors, trustees, key employees, and other employees; and royalties that are not investment income or program service revenue.
Enter the amount of actual grants and similar amounts paid to individuals and organizations selected by the filing organization. Include scholarship, fellowship, and research grants to individuals.
Include on this line the amount of payments to, or for the benefit of, particular clients or patients, including assistance by others at the organization's expense.
Include on line 10 certain types of payments to organizations affiliated with (closely related to) the filing organization. These payments include predetermined quota support and dues payments by local organizations to their state or national organizations.
Do not include on this line expenses made in selecting recipients or monitoring compliance with the terms of a grant or award. Enter those expenses on lines 12 through 16.
Do not report the cost of goods or services purchased from affiliates on line 10. Report these expenses on lines 12 through 16.
List on Schedule O each grantee organization or individual to whom the organization made grants (or paid similar amounts) in excess of $5,000 during the organization's tax year. For each grantee, list:
Each class of activity,
The grantee's name and address (for grantee organizations, not grantee individuals),
The amount given (aggregate amount of grants and payments to or for the benefit of the grantee during the organization's tax year), and
The relationship of the grantee (for grants to individuals), if the relationship is by blood, marriage, adoption, or employment (including employees’ children), control, or ownership, to any person or corporation with an interest in the organization, such as a creator, donor, director, trustee, officer, key employee, related organization, etc.
If any related organization (see line 49 instructions for definition of “related organization”) received a payment reported on line 10, then so indicate, and specify the purpose of the payment.
Classify activities on this schedule in more detail than by using broad terms such as charitable, educational, religious, or scientific. For example, identify payments to affiliates; payments for nursing services; fellowships; and payments for food, shelter, or medical services for indigents or disaster victims.
Colleges, universities, and primary and secondary schools reporting scholarships or other financial assistance can instead include a statement in Schedule O that (a) groups each type of financial aid provided; (b) indicates the number of individuals who received the aid; and (c) specifies the aggregate dollar amount.
If an organization gives property other than cash and measures an award or grant by the property's FMV, also show on this schedule:
A description of the property,
The book value of the property,
How the book value was determined,
How the FMV was determined, and
The date of the gift.
Any difference between a property's FMV and book value should be recorded in the organization's books of account and on line 20.
For an organization that gives benefits to members or dependents (such as organizations exempt under section 501(c)(8), (9), or (17)), enter the amounts paid for or paid to obtain insurance that provides:
(a) death, sickness, hospitalization, or disability benefits;
(b) unemployment compensation benefits; and
(c) other benefits, including patronage dividends paid by 501(c)(12) organizations to their members.
Report on line 12, rather than line 11, the cost of employment-related benefits (such as health insurance) that the organization gives its officers and employees.
Enter the total salaries and wages paid to all officers and employees and payments made to directors and trustees, including compensation reported on Forms W-2 and 1099. Include all other forms of income and benefits received from the organization during the year, such as the employer’s share of deferrals (for unfunded plans) and contributions the organization paid to qualified and nonqualified pension and deferred compensation plans, and the employer's share of contributions to employee benefit programs (such as insurance, health, and welfare programs) that are not an incidental part of a pension plan.
Also include in the total on Line 12 the amount of federal, state, and local payroll taxes for the year that are imposed on the organization as an employer. This includes the employer's share of social security and Medicare taxes, Federal unemployment tax (FUTA), state unemployment compensation tax, and other state and local payroll taxes. Taxes withheld from employees' salaries and paid over to the various governmental units (such as Federal and state income taxes and the employees' share of social security and Medicare taxes) are part of the employees' salaries included on line 12. Report expenses paid or incurred for employee events such as a picnic or holiday party on this line.
Enter the total amount of legal, accounting, auditing, other professional fees (such as fees for fundraising or investment services) and related expenses charged by outside firms and individuals who are not employees of the organization.
Do not include any penalties, fines, or judgments imposed on the organization as a result of legal proceedings; report and identify those expenses on line 16. Report on line 12 fees paid to directors and trustees. Also report on line 12 compensation to employees that provide fundraising, legal, accounting, or other professional services as part of their employment. Report broker fees/commissions as sales expenses on line 5b.
Enter the total amount paid or incurred for the use of office space or other facilities, including rent; mortgage interest; heat, light, power, and other utilities; outside janitorial services; real estate taxes and property insurance attributable to rental property; and similar expenses.
These expenses relate to real property actually occupied by the organization, whether as tenant or owner, or used in the conduct of exempt functions (such as low-income rental housing). Report on line 16 expenses relating to real property used for investment purposes. If the organization occupies part of the property and leases a part to others, then expenses must be reasonably allocated between occupancy-related and investment-related expenses, and reported accordingly on lines 14 and 16.
If the organization records depreciation on property it occupies, enter the total for the year. For an explanation of acceptable methods for computing depreciation, see Pub. 946, How to Depreciate Property.
Report on line 14 or 16 rental expenses for rental income reported on lines 2 and 4. Do not decrease rental expenses reported on line 14 or 16 by any rental income received from renting or subletting rented space. See the instructions for lines 2 and 4 to determine if the income is reportable as exempt function income or investment income.
Enter the printing and related costs of producing the filing organization's own newsletters, leaflets, films, and other informational materials as well as the cost of outside mailing services on line 15. Also include the cost of any purchased publications as well as postage and shipping costs not reportable on line 5b, 6c, or 7b. Do not include any expenses, such as salaries, for which a separate line is provided.
Report expenses here that are not reportable on lines 10 through 15. Include here such expenses as penalties, fines, and judgments; unrelated business income taxes; insurance, interest, depreciation, and real estate taxes not reported as occupancy expenses; travel and transportation costs; and expenses for conferences, conventions, and meetings. Do not report on this line payments made by organizations exempt under section 501(c)(8), (9), or (17) to obtain insurance benefits for members. Report those expenses on line 11.
Some states that accept Form 990-EZ in satisfaction of their filing requirements may require that certain types of miscellaneous expenses be itemized. See Appendix G.
Enter the difference between lines 9 and 17. If line 17 is more than line 9, enter the difference in parentheses or as a negative number with a minus sign.
Enter on line 19 the end-of-year amount from the balance sheet on the prior year's return.
Explain in Schedule O any changes in net assets or fund balances between the beginning and end of the organization's tax year that are not accounted for by the amount on line 18. Include items here such as:
Adjustments of earlier years' activity (such as losses on uncollectible pledges, refunds of contributions and program service revenue, and reversal of grant expenses);
Unrealized gains and losses on investments carried at market value;
Any difference between FMV and book value of property given as an award or grant.
Every organization that files Form 990-EZ must complete columns (A) and (B) of Part II of the return and cannot submit a substitute balance sheet. Failure to complete Part II can result in penalties for filing an incomplete return. If there is no amount to report in column (A), Beginning of year, enter a zero in that column.
Check the box in the heading of Part II if Schedule O (Form 990 or 990-EZ) contains any information pertaining to this part.
Some states require more information. See Appendix G for more information about completing a Form 990-EZ to be filed with any state or local government agency.
Include all interest and non-interest bearing accounts (petty cash funds, checking accounts, savings accounts, money market funds, commercial paper, certificates of deposit, U.S. Treasury bills, and other government obligations). Also include the book value of securities held as investments, and all other investment holdings including land and buildings held for investment. Report the income from these investments on line 4; report income from program-related investments on line 2.
Enter the book value (cost or other basis less accumulated depreciation) of all land and buildings owned by the organization and not held for investment.
Enter total of other assets such as accounts receivable, inventories, prepaid expenses, and the organization’s share of assets in any joint ventures, limited liability companies, and other entities treated as a partnership for federal tax purposes. Also, include a description of the assets in Schedule O.
Enter amount of total assets. If the end-of-year total assets entered in column (B) are $500,000 or more, Form 990 must be filed instead of Form 990-EZ.
Liabilities include such items as accounts payable, grants payable, mortgages or other loans payable, and deferred revenue (revenue received but not yet earned).
Subtract line 26 (total liabilities) from line 25 (total assets) to determine net assets. Enter this net asset amount on line 27. The amount entered in column (B) must agree with the net asset or fund balance amount on line 21.
States that accept Form 990-EZ as their basic report form may require a separate statement of changes in net assets. See Appendix G.
Check the box in the heading of Part III if Schedule O (Form 990 or 990-EZ) contains any information relating to this part.
A program service is a major (usually ongoing) objective of an organization, such as adoptions, recreation for the elderly, rehabilitation, or publication of journals or newsletters.
Check the box in the heading of Part IV if Schedule O (Form 990 or 990-EZ) contains any information relating to this part.
List each person who was an officer, director, trustee, or key employee (defined below) of the organization at any time during the organization's tax year, even if they did not receive any compensation from the organization.
An officer is a person elected or appointed to manage the organization's daily operations, such as a president, vice-president, secretary, or treasurer. The officers of an organization are determined by reference to its organizing document, bylaws, or resolutions of its governing body, but at a minimum include those officers required by applicable state law.
A director or trustee is a member of the organization's governing body, but only if the member has voting rights. The governing body is the group of persons authorized under state law to make governance decisions on behalf of the organization and its shareholders or members, if applicable. The governing body is, generally speaking, the board of directors (sometimes referred to as board of trustees) of a corporation or association, or the board of trustees of a trust (sometimes referred to simply as the trustees, or trustee, if only one trustee).
A key employee is any person having responsibilities or powers similar to those of officers, directors, or trustees. The term includes the chief management and administrative officials of an organization (such as an executive director or chancellor). A chief financial officer and the officer in charge of the administration or program operations are both key employees if they have the authority to control the organization's activities, its finances, or both.
Enter a zero in columns (c), (d), and (e) if no reportable compensation or other compensation was paid during the year or deferred for payment to a future year.
Enter all forms of cash and noncash compensation received by each listed officer, director, trustee, and key employee, whether paid currently or deferred.
If the organization pays any other person, such as a management services company, for the services provided by any of the organization's officers, directors, trustees, or key employees, report the compensation and other items in Part IV as if the organization had paid the officers, directors, trustees, and key employees directly.
A failure to fully complete Part IV can subject both the organization and the individuals responsible for such failure to penalties for filing an incomplete return. See General Instruction G. In particular, entering the phrase on Part IV, “Information available upon request,” or a similar phrase, is not acceptable.
Form 941 must be filed to report income tax withholding and social security and Medicare taxes. The organization must also file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, to report Federal unemployment tax, unless the organization is not subject to these taxes. See Pub. 15 (Circular E) Employer's Tax Guide for more information.
Amounts paid or accrued by certain other organizations treated as paid or accrued by the filing organization. Treat as paid, accrued, or held directly by the organization any amounts paid or accrued under a deferred compensation plan, or held by a deferred compensation trust, that is established, sponsored, or maintained by the organization.
Treat amounts paid by a common paymaster (as defined in Regulations section 31.3121(s)-1(b)(2)) or a payroll or reporting agent (which is or should be appointed by the organization on Form 2678, Employer/Payer Appointment of Agent, or authorized by the organization on Form 8655, Reporting Agent Authorization, to perform certain employment tax services on behalf of the organization) for services performed for the organization as if the organization had paid such amounts directly, and report these amounts in the appropriate columns in Part IV.
For each person required to be listed, enter the name in the top of each row and the person's title or position with the organization in the bottom of the row. If the person had more than one title or position, list all (for instance, president and director). List persons in the following order: individual trustees or directors, institutional trustees, officers, and key employees.
Up to 12 persons can be reported on the Form 990-EZ, Part IV table. If more space is needed to enter additional persons, use as many duplicates of the Part IV table as are needed.
For each person listed in column (A), report an estimate of the average hours per week the person devoted to the organization during the year. Entry of a specific number of hours per week is required for a complete answer. Enter “-0-” if applicable. Do not include statements such as “as needed,” “as required,” or “40+.” If the average is less than one hour per week, then the organization can enter a decimal rounded to the nearest tenth (for example, 0.2 hours per week).
All compensation reporting is based on the calendar year ending with or within the organization's tax year. For example, if a fiscal-year organization's tax year is the 12-month period beginning July 1, 2012 and ending June 30, 2013, the organization must report compensation for the calendar year ending December 31, 2012.
Note: Do not report the same item of compensation in more than one column of Part IV for the calendar year ending with or within the tax year.
Enter the person's reportable compensation. Reportable compensation is:
For officers and other key employees – amounts required to be reported in box 1 or 5 of Form W-2 (whichever amount is greater);
For directors and individual trustees – amounts required to be reported in box 7 of Form 1099-MISC (plus box 1 or 5 of Form W-2 (whichever amount is greater) if also compensated as an officer or employee); and
For institutional trustees (such as banks or trust companies) – fees for services paid under a contractual agreement or statutory entitlement.
If the organization did not file a Form 1099-MISC because the amounts paid were below the threshold reporting requirement, then include and report the amount actually paid.
For employees, such as certain members of the clergy and religious workers who are not subject to social security and Medicare taxes as employees, box 5 of Form W-2 can be zero or less than the amount in Form W-2, box 1. In those cases, the amount required to be reported in box 1 of Form W-2 must be reported as reportable compensation in column (c).
Report the following deferred compensation and benefits:
Tax-deferred contributions by the employer to a qualified defined-contribution retirement plan;
The annual increase or decrease in actuarial value of a qualified defined benefit plan, whether or not funded or vested;
The value of health benefits provided by the employer, or paid by the employee with pre-tax dollars, that is not included in reportable compensation, including the value of:
payments of health benefit plan premiums,
medical reimbursement and flexible spending programs, and
health coverage (rather than actual benefits paid) provided by an employer's self-insured or self-funded arrangement.
Tax-deferred contributions by the employer and employee to a funded nonqualified defined contribution plan, and deferrals under an unfunded nonqualified defined contribution plan, whether or not such plans are vested or subject to a substantial risk of forfeiture; and
The annual increase or decrease in actuarial value of a non-qualified defined benefit plan, whether or not funded, vested, or subject to a substantial risk of forfeiture.
Reasonable estimates can be used if precise cost figures are not readily available to determine column (d) amounts.
Enter both taxable and nontaxable fringe benefits, but do not include compensation reported in columns (c) or (d) or the following:
Working condition fringe benefits described in section 132(d),
Expense reimbursements and allowances under an accountable plan described in Regulations section 1.62-2(c)(2), and
De minimis fringe benefits described in section 132(e).
Include amounts that the recipients must report as income on their separate income tax returns. Examples include amounts for which the recipient did not account to the organization or allowances that were more than the payee spent on serving the organization. Include payments made under indemnification arrangements, the value of the personal use of housing, automobiles, or other assets owned or leased by the organization (or provided for the organization's use without charge), as well as any other taxable and nontaxable fringe benefits. See Pub. 525, Taxable and Nontaxable Income, for more information.
The organization may exclude from reporting in column (e) any item of “other compensation” given to a person listed in Part IV if its total value is less than $10,000 for the calendar year ending with or within the organization's tax year.
For a short year return in which there is no calendar year that ends with or within the short year, leave columns (c), (d), and (e) blank, unless the return is a final return. If the return is a final return, report in column (d) the compensation that is reportable compensation on Forms W-2 and Forms 1099 for the short year, from both the filing organization and related organizations, whether or not Forms W-2 or Forms 1099 have been filed yet to report such compensation. Report health benefits, contributions to employee benefit plans, and other deferred compensation for the short year in column (d), and other compensation for the short year in column (e).
Schedule A. Section 501(c)(3) organizations must complete and attach Schedule A (Form 990 or Form 990-EZ), Public Charity Status and Public Support.
Statement regarding personal benefit contract. If, in connection with a transfer to or for the use of the organization, the organization directly or indirectly pays premiums on any personal benefit contract, or there is an understanding or expectation that any person will directly or indirectly pay such premiums, the organization must do the following:
Attach a statement describing the organization's involvement with the personal benefit contract(s);
Report on Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, the premiums that the organization paid, and the premiums paid by others but treated as paid by the organization; and
Report and pay an excise tax, equal to premiums paid, on Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.
A personal benefit contract is generally any life insurance, annuity, or endowment contract that benefits, directly or indirectly, the transferor, a member of the transferor's family, or any other person designated by the transferor (other than an organization described in section 170(c)). See section 170(f)(10); Notice 2000-24, 2000-1 C.B. 952; and Announcement 2000-82, 2000-2 C.B. 385.
Describe in Schedule O any significant activities that the organization conducted prior to the end of the tax year that it has not previously reported to the IRS on Form 990-EZ or Form 990. Also describe significant activities that were discontinued.
The organization must report significant changes to its organizing or enabling document by which it was created (articles of incorporation, association, or organization; trust instrument; constitution; or similar document), and to its rules governing its affairs, (bylaws, regulations, operating agreement, or similar document). Report changes made since the prior Form 990-EZ was filed, or that were not reported on any prior Form 990, and that were made before the end of the tax year.
Examples of significant changes to the organizing or governing documents include changes to:
The organization's name;
The organization's exempt purposes or mission;
The number, composition, qualifications, authority, or duties of the governing body's voting members;
The number, composition, qualifications, authority, or duties of the organization's officers or key employees;
The role of the organization's members in governance;
The distribution of assets upon dissolution;
The provisions to amend the organizing or enabling document or bylaws;
The quorum, voting rights, or voting approval requirements of the governing body members or the organization's stockholders or membership;
The policies or procedures contained within the organizing documents or bylaws regarding compensation of officers, directors, trustees, or key employees, conflicts of interest, whistleblowers, or document retention or destruction; and
The composition or procedures of an audit committee contained within the organizing document or bylaws.
Examples of insignificant changes made to organizing or governing documents that are not required to be reported here include changes to the organization's registered agent with the state and to the required or permitted number or frequency of governing body or member meetings.
Describe significant changes on Schedule O (Form 990 or 990-EZ), but do not attach a copy of the amendments or amended document to Form 990-EZ (or recite the entire amended document verbatim), unless such amended documents reflect a change in the organization's name. See the instructions for Item B. Checkboxes, earlier, regarding attachments required in the event of a change in the organization's name, which attachments must be conformed copies of the original documents.
A conformed copy is one that agrees with the original document and all amendments to it. If the copies are not signed, they must be accompanied by a written declaration signed by an officer authorized to sign for the organization, certifying that they are complete and accurate copies of the original documents. Photocopies of articles of incorporation showing the certification of an appropriate state official need not be accompanied by such a declaration. See Rev. Proc. 68-14, 1968-1 C.B. 768, for details.
If the exempt organization changes its legal structure, such as from a trust to a corporation, the new legal entity must file a new exemption application to establish that it qualifies for exemption.
Political organizations described in section 527 are not required to answer this question.
Check “Yes” on line 35a if the organization's total gross income from all of its unrelated trades and businesses is $1,000 or more for the tax year. See Pub. 598 for a description of unrelated business income, and see Instructions for the Form 990-T for the filing requirements of Form 990-T.
If the organization answered “Yes” to line 35a but answered “No” to line 35b because it did not file a Form 990-T for the tax year, then explain in Schedule O why the organization did not file a Form 990-T.
If the organization had income from business activities, such as those reported on lines 2, 6, and 7a (among others), but not reported on Form 990-T, explain in Schedule O the reasons for not reporting the income on Form 990-T.
Neither Form 990-T nor Form 990-EZ is a substitute for the other. Items of income and expense reported on Form 990-T must also be reported on Form 990-EZ (and vice versa) when the organization is required to file both forms.
If the organization checks “No” to line 35c, it is certifying that it was not subject to the notice and reporting requirements of section 6033(e) and that the organization had no lobbying and political expenditures potentially subject to the proxy tax.
Section 501(c)(4) social welfare organizations,
Section 501(c)(5) agricultural and horticultural organizations, and
Section 501(c)(6) organizations.
All organizations exempt from tax under section 501(a), other than section 501(c)(4), 501(c)(5), and 501(c)(6) organizations;
Local associations of employees' and veterans' organizations described in section 501(c)(4), but not section 501(c)(4) social welfare organizations;
Labor unions and other labor organizations described in section 501(c)(5), but not section 501(c)(5) agricultural and horticultural organizations;
Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations that receive more than 90% of their dues from:
Section 501(c)(3) organizations,
State or local governments,
Entities whose income is exempt from tax under section 115, or
Organizations described in 1 through 3, above;
Section 501(c)(4) and (5) organizations that receive more than 90% of their annual dues from:
that each paid annual dues of $105 or less in 2012 (adjusted annually for inflation). See Rev. Proc. 2011-52; 2011-45 I.R.B. 701;
Any organization that receives a private letter ruling from the IRS stating that the organization satisfies the section 6033(e)(3) exception;
Any organization that keeps records to substantiate that 90% or more of its members cannot deduct their dues (or similar amounts) as business expenses whether or not any part of their dues are used for lobbying purposes; or
Any organization that is not a membership organization.
Did not receive a waiver for proxy tax owed for the prior year;
Did not make any political expenditures or foreign lobbying expenditures during the current tax year; and
Incurred lobbying expenses during the current tax year consisting only of in-house direct lobbying expenses totaling $2,000 or less, but excluding:
Any allocable overhead expenses, and
All direct lobbying expenses of any local council regarding legislation of direct interest to the organization or its members.
Refers to attempts to influence any segment of the general public regarding legislative matters or referendums.
Legislation through communication with legislators and other government officials, and
The official actions or positions of covered executive branch officials through direct communication.
Any local council on legislation of direct interest to the organization or its members, and
The general public regarding legislative matters (grassroots lobbying).
Third-party lobbying, and
Dues paid to another organization that were used to lobby.
Other expenses of the organization's officials and staff (including amounts paid or incurred for the planning of legislative activities).
For a complete liquidation, dissolution, termination, or cessation of operations, also check the Terminated box in the heading of the return.
A significant disposition of net assets is a sale, exchange, disposition or other transfer of more than 25% of the FMV of the organization's net assets during the year, regardless of whether the organization received full or adequate consideration. A significant disposition of net assets may result from either an expansion or contraction of operations. A significant disposition of net assets involves:
One or more dispositions during the organization's tax year amounting to more than 25% of the FMV of the organization's assets as of the beginning of its tax year; or
One of a series of related dispositions or events commenced in a prior year, that when combined comprise more than 25% of the FMV of the organization's assets as of the beginning of the tax year when the first disposition of net assets occurred. Whether a series of related dispositions is a significant disposition of net assets depends on the facts and circumstances in each case.
Examples of the types of transactions that are significant dispositions of net assets required to be reported in Part II of Schedule N (Form 990 or 990-EZ) include:
Taxable or tax-free sales or exchanges of exempt assets for cash or other consideration (such as a social club described in section 501(c)(7) selling land, or an exempt organization selling assets it had used to further its exempt purposes);
Sales, contributions, or other transfers of assets to establish or maintain a partnership, joint venture, or corporation (for-profit or nonprofit), regardless of whether such sales or transfers are governed by section 721 or section 351, whether or not the transferor receives an ownership interest in exchange for the transfer;
Sales of assets by a partnership or joint venture in which the exempt partner has an ownership interest;
Transfers of assets under a reorganization in which the organization is a surviving entity; and
A contraction of net assets resulting from a grant or charitable contribution of assets to another organization described in section 501(c)(3).
The following are not considered significant dispositions of net assets for purposes of Schedule N, Part II:
The change in composition of publicly traded securities held in an exempt organization’s passive investment portfolio;
Asset sales made in the ordinary course of the organization’s exempt activities to accomplish the organization’s exempt purposes, such as gross sales of inventory;
Grants or other assistance made in the ordinary course of the organization’s exempt activities to accomplish the organization’s exempt purposes, such as the regular charitable distributions of a United Way or other federated fundraising organization;
A decrease in the value of net assets due to market fluctuation in the value of assets held by the organization; and
Transfers to a disregarded entity of which the organization is the sole member.
A political expenditure is one intended to influence the selection, nomination, election, or appointment of anyone to a federal, state, or local public office, or office in a political organization, or the election of Presidential or Vice-Presidential electors. It does not matter whether the attempt succeeds.
An expenditure includes a payment, distribution, loan, advance, deposit, or gift of money, or anything of value. It also includes a contract, promise, or agreement to make an expenditure, whether or not legally enforceable.
Remuneration to such individual (a candidate or prospective candidate) for speeches or other services;
Travel expenses of such individual;
Expenses of conducting polls, surveys, or other studies, or preparing papers or other material for use by such individual;
Expenses of advertising, publicity, and fundraising for such individual; and
Any other expense that has the primary effect of promoting public recognition or otherwise primarily accruing to the benefit of such individual.
Enter the end-of-year unpaid balance of secured and unsecured loans made to or received from officers, directors, trustees, and key employees (as defined in Part IV above). For example, if the organization borrowed $1,000 from one officer and loaned $500 to another, none of which has been repaid, report $1,500 on line 38b.
Report any interest expense paid to an officer, director, trustee, or key employee on line 16 (except for mortgage interest reportable on line 14) and any interest income paid by an officer, director, trustee, or key employee on line 8.
Is an auxiliary of a fraternal beneficiary society exempt under section 501(c)(8), and
Limits its membership to the members of a particular religion; or the membership limitation is:
A good-faith attempt to further the teachings or principles of that religion, and
Not intended to exclude individuals of a particular race or color.
Section 501(c)(3) organizations must disclose any excise tax imposed during the year under section 4911 (excess lobbying expenditures), 4912 (disqualifying lobbying expenditures), or, unless abated, 4955 (political expenditures). See sections 4962 and 6033(b).
Sections 6033(b) and 6033(f) require section 501(c)(3) and 501(c)(4) organizations to report the amount of taxes imposed under section 4958 (excess benefit transactions) involving the organization, unless abated, as well as any other information the Secretary may require concerning those transactions.
For line 40c, enter the amount of taxes imposed on organization managers and/or disqualified persons under sections 4912, 4955, and 4958, unless abated.
For line 40d, enter the amount of tax on line 40c that was reimbursed by the organization. Any reimbursement of the excise tax liability of a disqualified person or organization manager will be treated as an excess benefit unless:
The organization treats the reimbursement as compensation during the year the reimbursement is made, and
The total compensation to that person, including the reimbursement, is reasonable.
Answer “Yes” if the organization was a party to a prohibited tax shelter transaction as described in section 4965(e) at any time during the organization's tax year. An organization that files Form 990-EZ (other than a section 527 political organization or a section 4947(a)(1) trust) and that is a party to a prohibited tax shelter transaction must file Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction and may also have to file Form 4720 and pay excise tax imposed by section 4965. For more information, see the instructions to Forms 8886-T and 4720.
List each state where the organization is filing a copy of this return in full or partial satisfaction of state filing requirements.
Provide the name of the person who possesses the organization's books and records. The organization is not required to provide the address or telephone number for the personal residence of an individual. The organization's address and phone number can be used instead, or the business address and telephone number of such individual.
Answer “Yes” if either item 1 or 2 below applies:
At any time during the calendar year ending with or within the organization's tax year, the organization had an interest in, or signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account); and
The combined value of the accounts was more than $10,000 at any time during the calendar year; and
The accounts were not with a U.S. military banking facility operated by a U.S. financial institution.
The organization owns more than 50% of the stock in any corporation that would answer “Yes” to item 1 above.
If “Yes,” enter the name of the foreign country or countries. Continue on Schedule O if more space is needed.
If “Yes,” file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, by June 30 after the end of the calendar year with the Department of the Treasury at the address shown on the form. Form TD F 90-22.1 is available by calling 1-800-TAX-FORM (1-800-829-3676) or by downloading it at IRS.gov. Do not file it with the IRS or attach it to Form 990-EZ.
A section 4947(a)(1) nonexempt charitable trust that has no taxable income under Subtitle A can use Form 990-EZ to meet its section 6012 filing requirement by checking the box on line 43 (in which case Form 1041 is not required). In such case, enter on line 43 the total of exempt-interest dividends received or accrued (if reporting under the accrual method of accounting) during the tax year. Such tax-exempt interest includes exempt-interest dividends received from a mutual fund or other regulated investment company as well as tax-exempt interest received directly.
Section 4947(a)(1) nonexempt charitable trusts must complete all sections of the Form 990-EZ and schedules that 501(c)(3) organizations must complete. All references to a section 501(c)(3) organization in the Form 990-EZ, schedules, and instructions include a section 4947(a)(1) trust (for instance, such a trust must complete Schedule A (Form 990 or 990-EZ)), unless expressly excepted.
If certain excise, income, social security, and Medicare taxes that must be collected or withheld are not collected or withheld, or these taxes are not paid to the IRS, a trust fund recovery penalty may apply. The trust fund recovery penalty may be imposed on all persons (including volunteers) who the IRS determines were responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so.
This penalty does not apply to volunteer unpaid members of any board of trustees or directors of a tax-exempt organization, if these members are solely serving in an honorary capacity, do not participate in the day-to-day or financial activities of the organization, and do not have actual knowledge of the failure to collect, account for, and pay over these taxes. However, the preceding sentence does not apply if it results in no person being liable for the penalty.
A sponsoring organization is any of the following types of organizations if it maintains one or more donor advised funds:
A veterans' organization, organized in the United States or any of its possessions, no part of the net earnings of which inures to the benefit of any private shareholder or individual, that meets the requirements to receive deductible contributions under section 170(c)(3).
A domestic fraternal organization described in section 501(c)(8) or (10) that uses charitable contributions exclusively for charitable purposes.
A cemetery company described in section 501(c)(13).
That is separately identified by reference to contributions of a donor or donors,
That is owned and controlled by a sponsoring organization, and
Over which the donor or donor advisor has or reasonably expects to have advisory privileges in the distribution or investment of amounts held in the donor advised fund or account because of the donor's status as a donor.
A donor advised fund does not include any fund or account:
That makes distributions only to a single identified organization or governmental entity, or
For which a donor or donor advisor gives advice about which individuals receive grants for travel, study, or other similar purposes, if:
The donor or donor advisor's advisory privileges are performed exclusively by such person in his or her capacity as a committee member in which all of the committee members are appointed by the sponsoring organization;
No combination of donors or donor advisors directly or indirectly control the committee; and
All grants from the fund or account are awarded on an objective and nondiscriminatory basis following a procedure approved in advance by the board of directors of the sponsoring organization. The procedure must be designed to ensure that all grants meet the requirements of section 4945(g)(1), (2), or (3); or
That the Secretary exempts from being treated as a donor advised fund because either such fund or account is advised by a committee not directly or indirectly controlled by the donor or donor advisor or such fund benefits a single identified charitable purpose. For example, see Notice 2006-109, 2006-51 I.R.B. 1121, which is modified by Rev. Proc. 2009-32, 2009-28 I.R.B.142; and Rev. Proc. 2009-32 is modified and superseded by Rev. Proc. 2011-33, 2011-1 C.B. 887; and any future related guidance.
A “donor advisor” is any person appointed or designated by a donor to advise a sponsoring organization on the distribution or investment of amounts held in the donor's donor advised fund or similar account.
If the organization operated one or more hospital facilities during the tax year, it must complete and file Form 990 and Schedule H (Form 990) and not Form 990-EZ.
A “hospital facility” is a facility that is required to be licensed, registered, or similarly recognized by a state as a hospital. This includes a hospital that is operated through a disregarded entity or joint venture treated as a partnership for federal tax purposes. It does not include hospitals that are located outside the United States. It also does not include hospitals that are operated by entities organized as separate legal entities from the organization that are treated as corporations for federal tax purposes.
The organization should check “Yes” to line 44c if it received any payments during the year for indoor tanning services. “Indoor tanning services” are services employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.
If an organization received a payment for services for indoor tanning services during the year, it must collect from the recipient of the services a tax equal to 10% of the amount paid for such service, whether paid by insurance or otherwise, and remit such tax quarterly to the IRS by filing Form 720, Quarterly Federal Excise Tax Return. If the organization filed Form 720 during the year, it should check “Yes” to line 44d. If it answers “No” to line 44d, it should explain in Schedule O why it did not file Form 720.
Answer “Yes” if the organization had a controlled entity within the meaning of section 512(b)(13) during the tax year. A controlled entity within the meaning of section 512(b)(13) may be a stock or nonstock corporation, association, partnership, limited liability company, or trust of which the controlling organization owns more than 50% of:
The stock of a corporation (measured by voting power or value),
The profits or capital interest in a partnership, or
The beneficial interest in a trust or other entity.
For the definition of “control” in this context, see section 512(b)(13)(D) and Regulations section 1.512(b)-1(l)(4) (substituting “more than 50%” for “at least 80%” in the regulation, for purposes of this definition). For the definition of “control of a nonprofit organization,” see the Line 49 instructions.
A controlling organization of a controlled entity under section 512(b)(13) must file Form 990 and Schedule R (Form 990), Related Organizations and Unrelated Partnerships rather than Form 990-EZ if the controlling organization either:
Received or accrued from the controlled entity any interest, annuities, royalties, or rent, regardless of amount, during the tax year; or
Engaged in another type of transaction (see Schedule R instructions for a description of transactions) with the controlled entity, if the amounts involved during the tax year for such type of transaction exceeded $50,000.
Answer “Yes” and complete the applicable parts of Part I of Schedule C (Form 990 or 990-EZ), Political Campaign and Lobbying Activities, if the organization participated or intervened in (including the publishing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office, directly or indirectly. See the Schedule C instructions for a discussion of political activity.
All section 501(c)(3) organizations (including, for purposes of Form 990-EZ, section 4947(a)(1) nonexempt charitable trusts) must complete Part VI.
Answer “Yes” and complete Part II of Schedule C (Form 990 or 990-EZ) if the organization engaged in lobbying activities or had a section 501(h) election in effect during the tax year. All section 501(c)(3) organizations that had a section 501(h) election in effect during the tax year must complete Schedule C (Form 990 or 990-EZ), Part II-A, regardless of whether they engaged in lobbying activities during the tax year. See the Schedule C instructions for a discussion of lobbying activities.
Answer “Yes” and complete Schedule E (Form 990 or 990-EZ), Schools, if the organization checked the box on line 2 of Schedule A (Form 990 or 990-EZ), Public Charity Status and Public Support, Part I, indicating that it is a school.
Answer “Yes” if the organization made any transfer to a related organization that is an exempt organization other than a 501(c)(3) organization, such as a related 501(c)(4) organization or a related 527 political organization.
A transfer for this purpose is any transaction or arrangement in which the organization transferred something of value (cash, other assets, services, use of property, etc.) to the exempt non-charitable related organization, whether or not for adequate consideration. The organization can (but is not required to) explain the transfer in Schedule O.
For purposes of Form 990-EZ, a related organization is an organization (including a nonprofit organization, a stock corporation, a partnership or limited liability company, a trust, and a governmental unit or other governmental entity) that is in one or more of the following relationships to the filing organization at any time during the tax year:
Parent: an organization that controls the filing organization (see definition of control, below).
Subsidiary: an organization controlled by the filing organization.
Brother/Sister: an organization controlled by the same person or persons that control the filing organization. However, if the filing organization is a trust that has a bank or financial institution trustee that is also the trustee of another trust, the other trust is not a brother/sister related organization of the filing organization on the ground of common control by the bank or financial institution trustee.
Supporting/supported: an organization that claims to be at any time during the tax year, or that is classified by the IRS at any time during the tax year, as (i) a supporting organization of the filing organization within the meaning of section 509(a)(3), if the filing organization is a supported organization within the meaning of section 509(f)(3); or (ii) a supported organization, if the filing organization is a supporting organization.
For purposes of determining whether an organization is related, control exists in the following situations:
Control of a nonprofit organization (or other organization without owners or persons having beneficial interests, whether the organization is taxable or tax-exempt): One or more persons (whether individuals or organizations) control a nonprofit organization if they have the power to remove and replace (or to appoint, elect, or approve or veto the appointment or election of, if such power includes a continuing power to appoint, elect, or approve or veto the appointment or election of, periodically or in the event of vacancies) a majority of the nonprofit organization’s directors or trustees, or a majority of members who elect a majority of the nonprofit organization’s directors or trustees. Such power can be exercised directly by a parent organization through one or more of the parent organization’s officers, directors, trustees, or agents, acting in their capacity as officers, directors, trustees, or agents of the parent organization. Also, a parent organization controls a subsidiary nonprofit organization if a majority of the subsidiary’s directors or trustees are trustees, directors, officers, employees, or agents of the parent.
Control of a stock corporation: One or more persons (whether individuals or organizations) control a stock corporation if they own more than 50% of the stock (by voting power or value) of the corporation.
Control of a partnership or limited liability company: One or more persons control a partnership if they own more than 50% of the profits or capital interests in the partnership (including a limited liability company treated as a partnership or disregarded entity for federal tax purposes, regardless of the designation under state law of the ownership interests as stock, membership interests, or otherwise). A person also controls a partnership if the person is a managing partner or managing member of a partnership or limited liability company which has three or fewer managing partners or managing members (regardless of which partner or member has the most actual control), or if the person is a general partner in a limited partnership which has three or fewer general partners (regardless of which partner has the most actual control). For this purpose, a “managing partner” is a partner designated as such under the partnership agreement, or regularly engaged in the management of the partnership even though not so designated.
Control of a trust with beneficial interests: One or more persons control a trust if they own more than 50% of the beneficial interests in the trust. A person’s beneficial interest in a trust shall be determined in proportion to that person’s actuarial interest in the trust as of the end of the tax year.
Control can be indirect. For example, if the filing organization controls Entity A, which in turn controls Entity B, the filing organization will be treated as controlling Entity B. To determine indirect control through constructive ownership of a corporation, rules under section 318 apply. Similar principles apply for purposes of determining constructive ownership of another entity (a partnership or trust). If an entity X controls an entity treated as a partnership by being one of three or fewer partners or members, then an organization that controls X also controls the partnership.
See Regulations sections 301.7701-2, 3, and 4 for more information on classification of corporations, partnerships, disregarded entities, and trusts.
Complete this table for the five employees (other than officers, directors, trustees, and key employees as defined in the Part IV instructions) with the highest annual compensation over $100,000. On line 50f, enter the number of other employees (other than officers, directors, trustees, and key employees) with annual compensation over $100,000 who are not individually listed.
A fiscal-year organization must use the calendar year ending within its tax year to determine its five highest compensated employees over $100,000, and to report the compensation. Combine the compensation includible in Part VI, columns (c), (d), and (e) in determining whether compensation exceeds $100,000 for the calendar year.
See the Part IV instructions for more information on compensation reporting and for completing table columns (a) through (e) of line 50, and for information on the $10,000-per-item exception for column (e).
S is not a key employee. The organization uses a calendar tax year. During the year, S received a salary of $80,000 and a $2,000 bonus. S contributed $5,000 of the salary on a pre-tax basis to a qualified defined-contribution retirement plan, and received a matching employer contribution of $5,000 from the organization. S contributed another $5,000 of the salary on a pre-tax basis to a qualified health plan. S received from the employer non-taxable health benefits for herself and her family of $10,000, and non-taxable family educational benefits of $5,000.
To determine whether S is to be listed as among the five highest compensated employees, S's compensation in column (c) would be $82,000, the amount reportable in Form W-2, box 5, consisting of the $80,000 salary (including her contributions to the qualified plans) and the $2,000 bonus. S's compensation in column (d) would be $15,000, consisting of the organization's payments of $5,000 to the retirement plan and $10,000 to the health plan. S would not report the $5,000 in non-taxable family educational benefits in column (e), because it is excluded under the $10,000-per-item exception for column (e). Thus, S's total compensation of $97,000 would not place her among the five highest compensated employees over $100,000.
Complete this table for the five highest compensated independent contractors that received more than $100,000 in compensation for services, whether professional services or other services, from the organization. On line 51d, enter the number of other independent contractors with annual compensation over $100,000 who are not individually listed.
Independent contractors include organizations as well as individuals and can include professional fundraisers, law firms, accounting firms, publishing companies, management companies, and investment management companies. Do not report public utilities or insurance providers as independent contractors. See Pub. 1779, Independent Contractor or Employee, and Pub. 15-A, Employer's Supplemental Tax Guide, for distinguishing employees from independent contractors.
The organization must use the calendar year ending with or within its tax year in determining its five highest compensated independent contractors and reporting their compensation in such year on line 51.
The return must be signed by the current president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officer (such as tax officer) who is authorized to sign as of the date this return is filed. A receiver, trustee, or assignee must sign any return he or she files for a corporation or association. See Regulations section 1.6012-3(b)(4). For a trust, the authorized trustee(s) must sign.
Generally, anyone who is paid to prepare the return must sign the return, list the preparer’s taxpayer identification number (PTIN), and fill in the other blanks in the Paid Preparer Use Only area. An employee of the filing organization is not a paid preparer.
The paid preparer must:
Sign the return in the space provided for the preparer's signature,
Enter the preparer information (including the preparer’s PTIN and the preparer firm’s EIN, if applicable), and
Give a copy of the return to the organization.
Any paid preparer can apply for and obtain a PTIN online at www.irs.gov/ptin or by filing Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal.
Note. A paid preparer may sign original or amended returns by rubber stamp, mechanical device, or computer software program. Also, facsimile signatures are authorized.
On the last line of Form 990-EZ, check “Yes” if the IRS can contact the paid preparer who signed the return to discuss the return. This authorization applies only to the individual whose signature appears in the Paid Preparer Use Only section of the Form 990-EZ. It does not apply to the firm, if any, shown in that section.
By checking this box “Yes,” the organization is authorizing the IRS to contact the paid preparer to answer any questions that may arise during the processing of the return. The organization is also authorizing the paid preparer to:
Give the IRS any information that is missing from the return,
Call the IRS for information about the processing of the return, and
Respond to certain IRS notices about math errors, offsets, and return preparation.
The organization is not authorizing the paid preparer to bind the organization to anything or otherwise represent the organization before the IRS.
The authorization will automatically end no later than the due date (excluding extensions) for filing the organization's 2013 Form 990-EZ. If the organization wants to expand the paid preparer's authorization or revoke the authorization before it ends, see Pub. 947, Practice Before the IRS and Power of Attorney.
Check “No” if the IRS is to contact the organization at the address or telephone number listed in the heading, rather than the paid preparer.
|More Online Instructions|