Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation

Userid: ________

PAGER/SGML
Page 1 of 32

Fileid:

DTD INSTR04

Leadpct: 0%

Pt. size: 9

...9fhb\documents\epicfiles\2008 Forms\I-F Form 990PF at 12-30-08.sgm

Instructions for Form 990-PF

❏

Draft

❏

Ok to Print

(Init. & date)

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2008

Department of the Treasury
Internal Revenue Service

Instructions for Form 990-PF
Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust
Treated as a Private Foundation
Section references are to the Internal
Revenue Code unless otherwise noted.
Contents
Page
General Instructions
A. Who Must File . . . . . . . . . . . . . . . . 2
B. Which Parts To Complete . . . . . . . . 2
C. Definitions . . . . . . . . . . . . . . . . . . . 2
D. Other Forms You May Need
To File . . . . . . . . . . . . . . . . . . . . . . 3
E. Useful Publications . . . . . . . . . . . . . 4
F. Use of Form 990-PF To
Satisfy State Reporting
Requirements . . . . . . . . . . . . . . . . . 4
G. Furnishing Copies of Form
990-PF to State Officials . . . . . . . . . 4
H. Accounting Period . . . . . . . . . . . . . 5
I. Accounting Methods . . . . . . . . . . . . 5
J. When, Where, and How To
File . . . . . . . . . . . . . . . . . . . . . . . . 5
K. Extension of Time To File . . . . . . . . 5
L. Amended Return . . . . . . . . . . . . . . 5
M. Penalty for Failure To File
Timely, Completely, or
Correctly . . . . . . . . . . . . . . . . . . . . 5
N. Penalties for Not Paying Tax
on Time . . . . . . . . . . . . . . . . . . . . . 6
O. Figuring and Paying
Estimated Tax . . . . . . . . . . . . . . . . 6
P. Tax Payment Methods for
Domestic Private Foundations . . . . 6
Q. Public Inspection
Requirements . . . . . . . . . . . . . . . . . 7
R. Disclosures Regarding
Certain Information and
Services Furnished . . . . . . . . . . . . . 9
S. Organizations Organized or
Created in a Foreign Country
or U.S. Possession . . . . . . . . . . . . . 9
T. Liquidation, Dissolution,
Termination, or Substantial
Contraction . . . . . . . . . . . . . . . . . . . 9
U. Filing Requirements During
Section 507(b)(1)(B)
Termination . . . . . . . . . . . . . . . . . 10
V. Special Rules for Section
507(b)(1)(B) Terminations . . . . . . . 10
W. Rounding, Currency, and
Attachments . . . . . . . . . . . . . . . . . 10
Specific Instructions
Completing the Heading . . . . . . . . . . 10
Part I — Analysis of Revenue and
Expenses . . . . . . . . . . . . . . . . . . . 11
Part II — Balance Sheets . . . . . . . . . . 15
Part III — Analysis of Changes in
Net Assets or Fund Balances . . . . . 17
Part IV — Capital Gains and
Losses for Tax on Investment
Income . . . . . . . . . . . . . . . . . . . . . 17

Contents
Part V — Qualification Under
Section 4940(e) for Reduced
Tax on Net Investment Income
Part VI — Excise Tax Based on
Investment Income . . . . . . . . .
Part VII-A — Statements
Regarding Activities . . . . . . . .
Part VII-B — Activities for Which
Form 4720 May Be Required . .
Part VIII — Information About
Officers, Directors, Trustees,
Foundation Managers, Highly
Paid Employees, and
Contractors . . . . . . . . . . . . . .
Part IX-A — Summary of Direct
Charitable Activities . . . . . . . . .
Part IX-B — Summary of
Program-Related Investments
Part X — Minimum Investment
Return . . . . . . . . . . . . . . . . . .
Part XI — Distributable Amount . .
Part XII — Qualifying
Distributions . . . . . . . . . . . . . .
Part XIII — Undistributed Income
Part XIV — Private Operating
Foundations . . . . . . . . . . . . . .
Part XV — Supplementary
Information . . . . . . . . . . . . . . .
Part XVI-A — Analysis of
Income-Producing Activities . . .
Part XVI-B — Relationship of
Activities to the
Accomplishment of Exempt
Purposes . . . . . . . . . . . . . . . .
Part XVII — Information
Regarding Transfers To and
Transactions and
Relationships With
Noncharitable Exempt
Organizations . . . . . . . . . . . . .
Signature . . . . . . . . . . . . . . . . .
Privacy Act and Paperwork
Reduction Act Notice . . . . . . . .
Exclusion Codes . . . . . . . . . . . .
Index . . . . . . . . . . . . . . . . . . . . .

Page
. . . 18
. . . 18
. . . 19
. . . 20

. . . 22
. . . 23
. . . 23
. . . 24
. . . 25
. . . 25
. . . 26
. . . 27

Charitable trusts that became private
foundations by virtue of section 1241(c) of
the Pension Protection Act of 2006 must
file Form 990-PF for taxable years
beginning on or after January 1, 2008.
Such organizations must file a paper
Form 990-PF and write “Notice 2008-6
status change ” at the top of Form
990-PF. See Notice 2008-6 for more
information.

Photographs of Missing
Children
The Internal Revenue Service is a proud
partner with the National Center for
Missing and Exploited Children.
Photographs of missing children selected
by the Center may appear in instructions
on pages that would otherwise be blank.
You can help bring these children home
by looking at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if you
recognize a child.

Phone Help

. . . 28

If you have questions and/or need help
completing this form, please call
1-877-829-5500. This toll-free telephone
service is available Monday through
Friday.

. . . 28

How To Get Forms and
Publications

. . . 27

Internet
. . . 29
. . . 30
. . . 30
. . . 31
. . . 32

What’s New
If you are filing Form 990-PF because you
no longer meet a public support test
under sections 509(a)(1) and
170(b)(1)(A)(vi) or section 509(a)(2) and
you have not previously filed Form
990-PF, write PRIOR PC in the top right
corner of page 1 of your return. Before
filing Form 990-PF for the first time, you
may want to go to www.irs.gov/eo for the
latest information and filing tips to confirm
Cat. No. 11290Y

you are no longer a publicly supported
organization.

You can access the IRS website 24 hours
a day, 7 days a week at www.irs.gov to:
• Download forms, instructions, and
publications,
• Order IRS products online,
• See answers to frequently asked tax
questions,
• Search publications online by topic or
keyword,
• Send us comments or request help via
email, or
• Sign up to receive local and national
tax news by email.

DVD for tax products
You can order Publication 1796, IRS Tax
Products DVD, and obtain:
• Current-year forms, instructions, and
publications.
• Prior-year forms, instructions, and
publications.

Page 2 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Tax Map: an electronic research tool

and finding aid.
• Tax Law frequently asked questions.
• Tax Topics from the IRS telephone
response system.
• Internal Revenue Code – Title 26
• Fill-in, print, and save features for most
tax forms.
• Internal Revenue Bulletins.
• Toll-free and email technical support.
• The DVD is released twice during the
year.
• The first release will ship the beginning
of January 2009.
• The final release will ship the beginning
of March 2009.
• Purchase the DVD from National
Technical Information Service (NTIS) at
www.irs.gov/cdorders for $30 (no
handling fee) or call 1-877-233-6767 toll
free to purchase the DVD for $30 (plus a
$6 handling fee).

By Phone and In Person
You can order forms and publications by
calling 1-800-TAX-FORM
(1-800-829-3676). You can also get most
forms and publications at your local IRS
office.
Use these electronic options to make
filing and paying easier.

IRS E-Services Make
Taxes Easier
Now more than ever before, businesses
can enjoy the benefits of filing and paying
their federal taxes electronically. Whether
you rely on a tax professional or handle
your own taxes, the IRS offers you
convenient programs to make taxes
easier.
• You can e-file your Form 990-PF; Form
940 and 941 employment tax returns;
Form 1099 and other information returns.
Visit www.irs.gov/efile for details.
• You can pay taxes online or by phone
using the free Electronic Federal Tax
Payment System (EFTPS). Visit www.
eftps.gov or call 1-800-555-4477 for
details. Electronic Funds Withdrawal
(EFW) from a checking or savings
account is also available to those who file
electronically.
For the most up-to-date tax
information, please visit us at www.irs.
gov/formspubs/index.html and select
Highlights of Recent Tax Changes under
the Important changes section.

General Instructions
Purpose of form. Form 990-PF is used:

• To figure the tax based on investment

income, and
• To report charitable distributions and
activities.

Also, Form 990-PF serves as a
substitute for the section 4947(a)(1)
nonexempt charitable trust’s income tax
return, Form 1041, U.S. Income Tax
Return for Estates and Trusts, when the
trust has no taxable income.

A. Who Must File
Form 990-PF is an annual information
return that must be filed by:
• Exempt private foundations (section
6033(a), (b), and (c)),
• Taxable private foundations (section
6033(d)),
• Organizations that agree to private
foundation status and whose applications
for exempt status are pending on the due
date for filing Form 990-PF,
• Organizations that made an election
under section 41(e)(6),
• Foundations that are making a section
507 termination, and
• Section 4947(a)(1) nonexempt
charitable trusts that are treated as
private foundations (section 6033(d)).
Include on the foundation’s return

TIP the financial and other information
of any disregarded entity owned
by the foundation. See Regulations
sections 301.7701-1 through 3 for
information on the classification of certain
business organizations including an
eligible entity that is disregarded as an
entity separate from its owner
(disregarded entity).
Other section 4947(a)(1) nonexempt
charitable trusts. Section 4947(a)(1)
nonexempt charitable trusts that are not
treated as private foundations do not file
Form 990-PF. However, they may need to
file Form 990, Return of Organization
Exempt From Income Tax, or Form
990-EZ, Short Form Return of
Organization Exempt from Income Tax.
With either of these forms, the trust must
also file Schedule A (Form 990 or
990 – EZ), Public Charity Status and
Public Support. (See Form 990 and Form
990-EZ instructions.)

B. Which Parts To
Complete
The parts of the form listed below do not
apply to all filers. See How to avoid filing
an incomplete return on this page for
information on what to do if a part or an
item does apply.
• Part I, column (c), applies only to
private operating foundations and to
nonoperating private foundations that
have income from charitable activities.
• Part II, column (c), with the exception of
line 16, applies only to organizations
having at least $5,000 in assets per
books at some time during the year. Line
16, column (c), applies to all filers.
• Part IV does not apply to foreign
organizations.
• Parts V and VI do not apply to
organizations making an election under
section 41(e).
• Part X does not apply to foreign
foundations that check box D2 on page 1
of Form 990-PF unless they claim status
as a private operating foundation.
• Parts XI and XIII do not apply to foreign
foundations that check box D2 on page 1
of Form 990-PF. However, check the box
at the top of Part XI. Part XI does not

-2-

apply to private operating foundations.
Also, if the organization is a private
operating foundation for any of the years
shown in Part XIII, do not complete the
portions that apply to those years.
• Part XIV applies only to private
operating foundations.
• Part XV applies only to foundations
having assets of $5,000 or more during
the year. This part does not apply to
certain foreign organizations.
How to avoid filing an incomplete
return.
• Complete all applicable line items,
• Answer “Yes,” “No,” or “N/A” (not
applicable) to each question on the
return,
• Make an entry (including a zero when
appropriate) on all total lines, and
• Enter “None” or “N/A” if an entire part
does not apply.

Sequencing Chart To Complete
the Form
You may find the following chart helpful. It
limits jumping from one part of the form to
another to compute an amount needed to
complete an earlier part. If you complete
the parts in the listed order, any
information you may need from another
part will already be entered.
Step
1
2
3
4
5
6
7

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

Part

Step

IV
I & II
Heading
III
VII-A
VIII
IX-A – X

8
9
10
11
12
13
14

.
.
.
.
.
.
.

Part
.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

.
.
.
.
.
.
.

XII, lines 1 – 4
V & VI
XII, lines 5 – 6
XI
XIII
VII-B
XIV – XVII

C. Definitions
1. A private foundation is a domestic
or foreign organization exempt from
income tax under section 501(a);
described in section 501(c)(3); and is
other than an organization described in
sections 509(a)(1) through (4).
In general, churches, hospitals,
schools, and broadly publicly supported
organizations are excluded from private
foundation status by these sections.
These organizations may be required to
file Form 990 (or Form 990-EZ) instead of
Form 990-PF.
2. A nonexempt charitable trust
treated as a private foundation is a trust
that is not exempt from tax under section
501(a) and all of the unexpired interests
of which are devoted to religious,
charitable, or other purposes described in
section 170(c)(2)(B), and for which a
deduction was allowed under a section of
the Code listed in section 4947(a)(1).
3. A taxable private foundation is an
organization that is no longer exempt
under section 501(a) as an organization
described in section 501(c)(3). Though it
may operate as a taxable entity, it will
continue to be treated as a private
foundation until that status is terminated
under section 507.
4. A private operating foundation is an
organization that is described under
section 4942(j)(3) or (5). It means any
Form 990-PF Instructions

Page 3 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

private foundation that spends at least
85% of the smaller of its adjusted net
income (figured in Part I) or its minimum
investment return (figured in Part X)
directly for the active conduct of the
exempt purpose or functions for which the
foundation is organized and operated and
that also meets the assets test, the
endowment test, or the support test
(discussed in Part XIV).
5. A nonoperating private foundation
is a private foundation that is not a private
operating foundation.
6. A foundation manager is an officer,
director, or trustee of a foundation, or an
individual who has powers similar to
those of officers, directors, or trustees. In
the case of any act or failure to act, the
term “foundation manager” may also
include employees of the foundation who
have the authority to act.
7. A disqualified person is:
a. A substantial contributor (see
instructions for Part VII-A, line 10, on
page 19);
b. A foundation manager;
c. A person who owns more than 20%
of a corporation, partnership, trust, or
unincorporated enterprise that is itself a
substantial contributor;
d. A family member of an individual
described in a, b, or c above; or
e. A corporation, partnership, trust, or
estate in which persons described in a, b,
c, or d above own a total beneficial
interest of more than 35%.
f. For purposes of section 4941
(self-dealing), a disqualified person also
includes certain government officials.
(See section 4946(c) and the related
regulations.)
g. For purposes of section 4943
(excess business holdings), a disqualified
person also includes:
i. A private foundation that is
effectively controlled (directly or indirectly)
by the same persons who control the
private foundation in question, or
ii. A private foundation to which
substantially all of the contributions were
made (directly or indirectly) by one or
more of the persons described in a, b,
and c above, or members of their families,
within the meaning of section 4946(d).
8. An organization is controlled by a
foundation or by one or more disqualified
persons with respect to the foundation if
any of these persons may, by combining
their votes or positions of authority,
require the organization to make an
expenditure or prevent the organization
from making an expenditure, regardless
of the method of control. “Control” is
determined regardless of how the
foundation requires the contribution to be
used.

• Form 940, Employer’s Annual Federal
Unemployment (FUTA) Tax Return.
• Form 941, Employer’s Quarterly
Federal Tax Return.
These forms are used to report social
security, Medicare, and income taxes
withheld by an employer and social
security and Medicare taxes paid by an
employer.
If income, social security, and
Medicare taxes that must be withheld are
not withheld or are not paid to the IRS, a
trust fund recovery penalty may apply.
The penalty is 100% of such unpaid
taxes.
This penalty may be imposed on all
persons (including volunteers, see below)
whom the IRS determines to be
responsible for collecting, accounting for,
and paying over these taxes, and who
willfully did not do so.
This penalty does not apply to any
volunteer, unpaid member of any board of
trustees or directors of a tax-exempt
organization, if this member:
• Is solely serving in an honorary
capacity,
• Does not participate in the day-to-day
or financial activities of the organization,
and
• Does not have actual knowledge of the
failure to collect, account for, and pay
over these taxes.
However, this exception does not apply if
it results in no person being liable for the
penalty.
Form 990-T, Exempt Organization
Business Income Tax Return. Every
organization exempt from income tax
under section 501(a) that has total gross
income of $1,000 or more from all trades
or businesses that are unrelated to the
organization’s exempt purpose must file a
return on Form 990-T. The form is also
used by tax-exempt organizations to
report other additional taxes including the
additional tax figured in Part IV of Form
8621, Return by a Shareholder of a
Passive Foreign Investment Company or
Qualified Electing Fund.
Form 990-W, Estimated Tax on
Unrelated Business Taxable Income
for Tax-Exempt Organizations (and on
Investment Income for Private
Foundations). Use of this form is
optional. It is provided only to aid you in
determining your tax liability.

D. Other Forms You May
Need To File

Form 1041, U.S. Income Tax Return for
Estates and Trusts. Required of section
4947(a)(1) nonexempt charitable trusts
that also file Form 990-PF. However, if
the trust does not have any taxable
income under the income tax provisions
(subtitle A of the Code), it may use the
filing of Form 990-PF to satisfy its Form
1041 filing requirement under section
6012. If this condition is met, check the
box for question 15, Part VII-A, of Form
990-PF and do not file Form 1041.

Tax Statements.

Form 1041-ES, Estimated Income Tax
for Estates and Trusts. Used to make
estimated tax payments.

• Form W-2, Wage and Tax Statement.
• Form W-3, Transmittal of Wage and
Form 990-PF Instructions

-3-

Form 1096, Annual Summary and
Transmittal of U.S. Information
Returns. Used to transmit Forms 1099,
1098, 5498, and W-2G to the IRS. Do not
use it to transmit electronically.
Form 1098-C, Contributions of Motor
Vehicles, Boats, and Airplanes.
Information return for reporting
contributions of qualified motor vehicles,
boats, and airplanes from donors.
Forms 1099-INT, MISC, OID, and R.
Information returns for reporting certain
interest; miscellaneous income (for
example, payments to providers of health
and medical services, miscellaneous
income payments, and nonemployee
compensation); original issue discount;
and distributions from retirement or
profit-sharing plans, IRAs, SEPs or
SIMPLEs, and insurance contracts.
Form 1120, U.S. Corporation Income
Tax Return. Filed by nonexempt taxable
private foundations that have taxable
income under the income tax provisions
(subtitle A of the Code). The Form
990-PF annual information return is also
filed by these taxable foundations.
Form 1120-POL, U.S. Income Tax
Return for Certain Political
Organizations. Section 501(c)
organizations must file Form 1120-POL if
they are treated as having political
organization taxable income under
section 527(f)(1).
Form 1128, Application To Adopt,
Change, or Retain a Tax Year. Form
1128 is used to request approval from the
IRS to change a tax year or to adopt or
retain a certain tax year.
Form 2220, Underpayment of
Estimated Tax by Corporations. Form
2220 is used by corporations and trusts
filing Form 990-PF to see if the foundation
owes a penalty and to figure the amount
of the penalty. Generally, the foundation
is not required to file this form because
the IRS can figure the amount of any
penalty and bill the foundation for it.
However, complete and attach Form 2220
even if the foundation does not owe the
penalty if:
• The annualized income or the adjusted
seasonal installment method is used, or
• The foundation is a “large
organization,” (see General Instruction O)
computing its first required installment
based on the prior year’s tax.
If Form 2220 is attached, check the box
on line 8, Part VI, on page 4 of Form
990-PF and enter the amount of any
penalty on this line.
Form 4506, Request for Copy of Tax
Return. Used by the organization or
designated third party to get a complete
copy of the organization’s return.
Form 4506-A, Request for Public
Inspection or Copy of Exempt or
Political Organization IRS Form. Used
to inspect or request a copy of an exempt
or political organization’s return, report,
notice, or exemption application by the
public or the organization.

Page 4 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Form 4720, Return of Certain Excise
Taxes Under Chapters 41 and 42 of the
Internal Revenue Code. Is primarily
used to determine the excise taxes
imposed on:
• Acts of self-dealing between private
foundations and disqualified persons,
• Failure to distribute income,
• Excess business holdings,
• Investments that jeopardize the
foundation’s charitable purposes,
• Making political or other noncharitable
expenditures, and
• Prohibited tax shelter transactions.
Form 5500, Annual Return/Report of
Employee Benefit Plan. Is used to
report information concerning employee
benefit plans and Direct Filing Entities.
Form 8109, Federal Tax Deposit
Coupon. Used by business entities to
make federal tax deposits.
Form 8282, Donee Information Return.
Required of the donee of “charitable
deduction property” that sells, exchanges,
or otherwise disposes of the property
within 3 years after the date it received
the property. Also required of any
successor donee that disposes of
charitable deduction property within 3
years after the date that the donor gave
the property to the original donee. (It does
not matter who gave the property to the
successor donee. It may have been the
original donee or another successor
donee.) For successor donees, the form
must be filed only for any property that
was transferred by the original donee
after July 5, 1988.
Form 8275, Disclosure Statement.
Taxpayers and tax return preparers
should attach this form to Form 990-PF to
disclose items or positions (except those
contrary to a regulation — see Form
8275-R below) that are not otherwise
adequately disclosed on the tax return.
The disclosure is made to avoid parts of
the accuracy-related penalty imposed for
disregard of rules or substantial
understatement of tax. Form 8275 is also
used for disclosures relating to preparer
penalties for understatements due to
unrealistic positions or for willful or
reckless conduct.
Form 8275-R, Regulation Disclosure
Statement. Use this form to disclose
any item on a tax return for which a
position has been taken that is contrary to
Treasury regulations.
Form 8300, Report of Cash Payments
Over $10,000 Received in a Trade or
Business. Used to report cash amounts
in excess of $10,000 that were received
in a single transaction (or in two or more
related transactions) in the course of a
trade or business (as defined in section
162).
Form 8822, Change of Address. This
form is used by taxpayers to notify the
IRS of changes in individual and business
mailing addresses.
Form 8886-T, Disclosure by
Tax-Exempt Entity Regarding

Prohibited Tax Shelter Transaction.
This form is used by an exempt
organization to disclose whether it was a
party to a prohibited tax shelter
transaction.
Form 8868, Application for Extension
of Time To File an Exempt
Organization Return. This form is used
by an exempt organization to request an
automatic 3-month extension of time to
file its return and also to apply for an
additional (not automatic) 3-month
extension if the initial 3-month extension
is not enough time.
Form 8870, Information Return for
Transfers Associated With Certain
Personal Benefit Contracts. Used to
identify those personal benefit contracts
for which funds were transferred to the
organization, directly or indirectly, as well
as the transferors and beneficiaries of
those contracts.
Form 8899, Notice of Income from
Donated Intellectual Property. Use
this form to report income from qualified
intellectual property.
Forms 8921 and 8922. These forms are
used by an exempt organization to report
its direct or indirect acquisition of certain
insurance contracts.

E. Useful Publications
The following publications may be helpful
in preparing Form 990-PF:
• Publication 525, Taxable and
Nontaxable Income,
• Publication 583, Starting a Business
and Keeping Records,
• Publication 598, Tax on Unrelated
Business Income of Exempt
Organizations,
• Publication 910, IRS Guide to Free Tax
Services,
• Publication 1771, Charitable
Contributions — Substantiation and
Disclosure Requirements, and
• Publication 3833, Disaster Relief,
Providing Assistance Through Charitable
Organizations.
Publications and forms are available at no
charge through IRS offices or by calling
1-800-TAX-FORM (1-800-829-3676).

F. Use of Form 990-PF To
Satisfy State Reporting
Requirements
Some states and local government units
will accept a copy of Form 990-PF and
required attachments instead of all or part
of their own financial report forms.
If the organization plans to use Form
990-PF to satisfy state or local filing
requirements, such as those from state
charitable solicitation acts, note the
following.
Determine state filing requirements.
Consult the appropriate officials of all
states and other jurisdictions in which the
organization does business to determine
their specific filing requirements. “Doing

-4-

business” in a jurisdiction may include
any of the following:
• Soliciting contributions or grants by
mail or otherwise from individuals,
businesses, or other charitable
organizations,
• Conducting programs,
• Having employees within that
jurisdiction, or
• Maintaining a checking account or
owning or renting property there.
Monetary tests may differ. Some or all
of the dollar limitations that apply to Form
990-PF when filed with the IRS may not
apply when using Form 990-PF instead of
state or local report forms. IRS dollar
limitations that may not meet some state
requirements are the $5,000 total assets
minimum that requires completion of Part
II, column (c), and Part XV; and the
$50,000 minimum for listing the highest
paid employees and for listing
professional fees in Part VIII.
Additional information may be
required. State and local filing
requirements may require attaching to
Form 990-PF one or more of the
following:
• Additional financial statements, such as
a complete analysis of functional
expenses or a statement of changes in
net assets,
• Notes to financial statements,
• Additional financial schedules,
• A report on the financial statements by
an independent accountant, and
• Answers to additional questions and
other information.
Each jurisdiction may require the
additional material to be presented on
forms they provide. The additional
information does not have to be submitted
with the Form 990-PF filed with the IRS.
If required information is not provided
to a state, the organization may be asked
by the state to provide it or to submit an
amended return, even if the Form 990-PF
is accepted by the IRS as complete.
Amended returns. If the organization
submits supplemental information or files
an amended Form 990-PF with the IRS, it
must also include a copy of the
information or amended return to any
state with which it filed a copy of Form
990-PF.
Method of accounting. Many states
require that all amounts be reported
based on the accrual method of
accounting.
Time for filing may differ. The time for
filing Form 990-PF with the IRS may differ
from the time for filing state reports.

G. Furnishing Copies of
Form 990-PF to State
Officials
The foundation managers must furnish a
copy of the annual return Form 990-PF
(and Form 4720 (if applicable)) to the
attorney general of:
• Each state required to be listed in Part
VII-A, line 8a,
Form 990-PF Instructions

Page 5 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• The state in which the foundation’s

principal office is located, and
• The state in which the foundation was
incorporated or created.
A copy of the annual return must be
sent to the attorney general at the same
time the annual return is filed with the
IRS.
Other requirements. If the attorney
general or other appropriate state official
of any state requests a copy of the annual
return, the foundation managers must
give them a copy of the annual return.
Exceptions. These rules do not apply to
any foreign foundation which, from the
date of its creation, has received at least
85% of its support (excluding gross
investment income) from sources outside
the United States. (See General
Instruction S for other exceptions that
affect this type of organization.)
Coordination with state reporting
requirements. If the foundation
managers submit a copy of Form 990-PF
and Form 4720 (if applicable) to a state
attorney general to satisfy a state
reporting requirement, they do not have to
furnish a second copy to that attorney
general to comply with the Internal
Revenue Code requirements discussed in
this section.

I. Accounting Methods
Generally, you should report the financial
information requested on the basis of the
accounting method the foundation
regularly uses to keep its books and
records.
Exception. Complete Part I, column (d)
on the cash receipts and disbursements
method of accounting.

J. When, Where, and How
To File
This return must be filed by the 15th day
of the 5th month following the close of the
foundation’s accounting period. If the
regular due date falls on a Saturday,
Sunday, or legal holiday, file by the next
business day. If the return is filed late,
see General Instruction M.
In case of a complete liquidation,
dissolution, or termination, file the return
by the 15th day of the 5th month following
complete liquidation, dissolution, or
termination.
To file the return, mail or deliver it to:
Department of the Treasury
Internal Revenue Service Center

If there is a state reporting requirement
to file a copy of Form 990-PF with a state
official other than the attorney general (for
instance, the secretary of state), then the
foundation managers must also send a
copy of the Form 990-PF and Form 4720
(if applicable) to the attorney general of
that state.

Ogden, UT 84201-0027
If the organization’s principal business,
office or agency is located in a foreign
country or U.S. possession, the address
for mailing the return is:

H. Accounting Period

Ogden, UT 84409
Private delivery services. You can use
certain private delivery services
designated by the IRS to meet the “timely
mailing as timely filing/paying” rule for tax
returns and payments. These private
delivery services include only the
following.
• DHL Express (DHL): DHL “Same Day”
Service, DHL Next Day 10:30 AM, DHL
Next Day 12:00 PM, DHL Next Day 3:00
PM, and DHL 2nd Day Service.
• Federal Express (FedEx): FedEx
Priority Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Priority, FedEx International
First.
• United Parcel Service (UPS): UPS Next
Day Air, UPS Next Day Air Saver, UPS
2nd Day Air, UPS 2nd Day Air AM, UPS
Worldwide Express Plus, and UPS
Worldwide Express.
The private delivery service can tell
you how to get written proof of the mailing
date.

• File the 2008 return for the calendar

year 2008 or fiscal year beginning in
2008. If the return is for a fiscal year, fill in
the tax year space at the top of the return.
• The return must be filed on the basis of
the established annual accounting period
of the organization. If the organization has
no established accounting period, the
return should be on the calendar-year
basis.
• For initial or final returns or a change in
accounting period, the 2008 form may
also be used as the return for a short
period (less than 12 months) ending
November 30, 2009, or earlier.
In general, to change its accounting
period, the organization must file Form
990-PF by the due date for the short
period resulting from the change. At the
top of this short period return, write
“Change of Accounting Period.”
If the organization changed its
accounting period within the
10-calendar-year period that includes the
beginning of the short period, and it had a
Form 990-PF filing requirement at any
time during that 10-year period, it must
also attach a Form 1128 to the
short-period return. See Rev. Proc. 85-58,
1985-2 C.B. 740.
Form 990-PF Instructions

Internal Revenue Service Center
P.O. Box 409101

Electronic Filing
The foundation can file its Form 990-PF
electronically. However, if the foundation
files at least 250 returns during the
calendar year, it must file Form 990-PF
electronically. If the foundation must file a

-5-

return electronically but does not, the
organization is considered to have not
filed its return. See Regulations section
301.6033-4 for more information. For
additional information on the electronic
filing requirement, visit www.irs.gov/efile.
The IRS may waive the

TIP requirements to file electronically
in cases of undue hardship. For
more information on filing a waiver, see
Notice 2005-88, 2005-48 I.R.B. 1060,
available at www.irs.gov/irb/2005-48_IRB/
index.html.

K. Extension of Time To
File
A foundation uses Form 8868 to request
an extension of time to file its return.
An automatic 3-month extension will
be granted if you properly complete this
form, file it, and pay any balance due by
the due date for Form 990-PF.
If more time is needed, Form 8868 is
also used to request an additional
extension of up to 3 months. However,
these extensions are not automatically
granted. To obtain this additional
extension of time to file, you must show
reasonable cause for the additional time
requested.

L. Amended Return
To change the organization’s return for
any year, file an amended return,
including attachments, with the correct
information. The amended return must
provide all the information required by the
form and instructions, not just the new or
corrected information. Check the
“Amended Return” box in G at the top of
the return. See the instructions for line 9
of Part VI on page 19.
If the organization files an amended
return to claim a refund of tax paid under
section 4940 or 4948, it must file the
amended return within 3 years after the
date the original return was filed, or within
2 years from the date the tax was paid,
whichever date is later.
State reporting requirements. See
Amended returns under General
Instruction F.
Need a copy of an old return or form?
Use Form 4506 to obtain a copy of a
previously filed return. You can obtain
blank forms for prior years by calling
1-800-TAX-FORM (1-800-829-3676).

M. Penalty for Failure To
File Timely, Completely, or
Correctly
To avoid filing an incomplete return or
having to respond to requests for missing
information, see General Instruction B.
Against the organization. If an
organization does not file timely and
completely, or does not furnish the correct
information, it must pay $20 for each day
the failure continues ($100 a day if it is a
large organization), unless it can show

Page 6 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

that the failure was due to reasonable
cause. Those filing late (after the due
date, including extensions) must attach
an explanation to the return. The
maximum penalty for each return will not
exceed the smaller of $10,000 ($50,000
for a large organization) or 5% of the
gross receipts of the organization for the
year.
Large organization. A large
organization is one that has gross
receipts exceeding $1 million for the tax
year.
Gross receipts. Gross receipts
means the gross amount received during
the foundation’s annual accounting period
from all sources without reduction for any
costs or expenses.
To figure the foundation’s gross
receipts, start with Part I, line 12, column
(a), then add to it lines 6b and 10b, then
subtract line 6a from that amount.
Against the responsible person. The
IRS will make written demand that the
delinquent return be filed or the
information furnished within a reasonable
time after the mailing of the notice of the
demand. The person failing to comply
with the demand on or before the date
specified will have to pay $10 for each
day the failure continues, unless there is
reasonable cause. The maximum penalty
imposed on all persons for any one return
is $5,000. If more than one person is
liable for any failures, all such persons
are jointly and severally liable for such
failures (see section 6652(c)).
Other penalties. Because this return
also satisfies the filing requirements of a
tax return under section 6011 for the tax
on investment income imposed by section
4940 (or 4948 if an exempt foreign
organization), the penalties imposed by
section 6651 for not filing a return (without
reasonable cause) also apply.
There are also criminal penalties for
willful failure to file and for filing fraudulent
returns and statements. See sections
7203, 7206, and 7207.

N. Penalties for Not Paying
Tax on Time
There is a penalty for not paying tax when
due (section 6651). The penalty generally
is 1/2 of 1% of the unpaid tax for each
month or part of a month the tax remains
unpaid, not to exceed 25% of the unpaid
tax. If there was reasonable cause for not
paying the tax on time, the penalty can be
waived. However, interest is charged on
any tax not paid on time, at the rate
provided by section 6621.
Estimated tax penalty. The section
6655 penalty for failure to pay estimated
tax applies to the tax on net investment
income of domestic private foundations
and section 4947(a)(1) nonexempt
charitable trusts. The penalty also applies
to any tax on unrelated business income
of a private foundation. Generally, if a
private foundation’s tax liability is $500 or
more and it did not make the required

payments on time, then it is subject to the
penalty.
For more details, see the discussion
of Form 2220 in General Instruction D.

O. Figuring and Paying
Estimated Tax
A domestic exempt private foundation, a
domestic taxable private foundation, or a
nonexempt charitable trust treated as a
private foundation must make estimated
tax payments for the excise tax based on
investment income if it can expect its
estimated tax (section 4940 tax minus
allowable credits) to be $500 or more.
The number of installment payments it
must make under the depository method
is determined at the time during the year
that it first meets this requirement. For
calendar-year taxpayers, the first deposit
of estimated taxes for a year generally
should be made by May 15 of the year.
Although Form 990-W is used primarily
to compute the installment payments of
unrelated business income tax, it is also
used to determine the timing and
amounts of installment payments of the
section 4940 tax based on investment
income. Compute separately any required
deposits of excise tax based on
investment income and unrelated
business income tax.
To figure the estimated tax for the
excise tax based on investment income,
apply the rules of Part VI to your tax year
2009 estimated amounts for that part.
Enter the tax you figured on line 10a of
Form 990-W.
The Form 990-W line items and
instructions for large organizations also
apply to private foundations. For
purposes of paying the estimated tax on
net investment income, a “large
organization” is one that had net
investment income of $1 million or more
for any of the 3 tax years immediately
preceding the tax year involved.
Penalty. A foundation that does not pay
the proper estimated tax when due may
be subject to the estimated tax penalty for
the period of the underpayment. (See
sections 6655(b) and (d) and the Form
2220 instructions.)

Special Rules
Section 4947(a)(1) nonexempt
charitable trusts. Form 1041-ES should
be used to pay any estimated tax on
income subject to tax under section 1.
Form 1041-ES also contains the
estimated tax rules for paying the tax on
that income.
Taxable private foundations. Form
1120-W should be used to figure any
estimated tax on income subject to tax
under section 11. Form 1120-W contains
the estimated tax rules for paying the tax
on that income.

-6-

P. Tax Payment Methods
for Domestic Private
Foundations
Whether the foundation uses the
depository method of tax payment or the
special option for small foundations, it
must pay the tax due (see Part VI) in full
by the 15th day of the 5th month after the
end of its tax year.

Depository Method of Tax
Payment
Some foundations (described below) are
required to electronically deposit all
depository taxes, including their tax
payments for the excise tax based on
investment income.

Electronic Deposit Requirement
The foundation must make electronic
deposits of all depository taxes (such as
employment tax or the excise tax based
on investment income) using the
Electronic Federal Tax Payment System
(EFTPS) in 2009 if:
• The total deposits of such taxes in
2007 were more than $200,000, or
• The foundation was required to use
EFTPS in 2008.
If the foundation is required to use
EFTPS and fails to do so, it may be
subject to a 10% penalty. If the foundation
is not required to use EFTPS, it may
participate voluntarily. To enroll in or get
more information about EFTPS, call
1-800-555-4477. To enroll online, visit
http://www.eftps.gov.
Depositing on time. For deposits made
by EFTPS to be on time, the foundation
must initiate the transaction at least 1
business day before the date the deposit
is due.

Deposits With Form 8109
If the foundation does not use EFTPS,
deposit estimated tax payments and any
balance due for the excise tax based on
investment income with Form 8109,
Federal Tax Deposit Coupon. If you do
not have a preprinted Form 8109, use
Form 8109-B to make deposits. You can
get this form only by calling
1-800-829-4933. Be sure to have your
employer identification number (EIN)
ready when you call.
Do not send deposits directly to an IRS
office; otherwise, the foundation may
have to pay a penalty. Mail or deliver the
completed Form 8109 with the payment
to an authorized depositary, such as a
commercial bank or other financial
institution authorized to accept federal tax
deposits.
Make checks or money orders payable
to the depositary. To help ensure proper
crediting, write the foundation’s EIN, the
tax period to which the deposit applies,
and “Form 990-PF” on the check or
money order. Be sure to darken the
990-PF box on the coupon. Records of
these deposits will be sent to the IRS.
Form 990-PF Instructions

Page 7 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

For more information on deposits, see
the instructions in the coupon booklet
(Form 8109) and Pub. 583, Starting a
Business and Keeping Records.

Special Payment Option for
Small Foundations
A private foundation may enclose a check
or money order, payable to the United
States Treasury, with the Form 990-PF or
Form 8868, if it meets all of the following
requirements:
1. The foundation must not be
required to use EFTPS,
2. The tax based on investment
income shown on line 5, Part VI of Form
990-PF is less than $500, and
3. If Form 8868 is used, the amount
entered on line 3a of Part I or line 8a of
Part II of Form 8868 must be less than
$500 and it must be the full balance due.
Be sure to write “2008 Form 990-PF”
and the foundation’s name, address, and
EIN on its check or money order.

!

Foreign organizations should see
the instructions for Part VI, line 9.

CAUTION

Q. Public Inspection
Requirements
A private foundation must make its annual
returns and exemption application
available for public inspection.
Because Form 990-PF is
disclosed to the public, do not
CAUTION report personal information about
grantees or others that is not required and
could be used for identity theft purposes,
such as a social security number or bank
account information.

!

Definitions
Annual returns. Annual returns include
an exact copy of the following documents
as filed with the IRS:
• Form 990-PF, including all schedules,
attachments, and supporting documents,
and any amended return that is 3 or fewer
years old from:
1. The date the original return was
filed or required to be filed, or
2. The date the return was required to
be filed.
• Form 990-T, if it was used to report any
tax on unrelated business income.
Exemption application. An application
for tax exemption includes (except as
described, later):
• Any prescribed application form (such
as Form 1023 or Form 1024),
• All documents and statements the IRS
requires an applicant to file with the form,
• Any statement or other supporting
document submitted in support of the
application, and
• Any letter or other document issued by
the IRS concerning the application.
An application for tax exemption does
not include:
• Any application for tax exemption filed
before July 15, 1987, unless the private
Form 990-PF Instructions

foundation filing the application had a
copy of the application on July 15, 1987,
or
• Any material that is not available for
public inspection under section 6104.

Who Must Make the Annual
Returns and Exemption
Application Available for Public
Inspection?
The foundation’s Form 990-PF, 990 – T,
and exemption application must be made
available to the public by the foundation
and the IRS.

How Does a Private Foundation
Make Its Annual Returns and
Exemption Application
Available for Public Inspection?
A private foundation must make its annual
returns and exemption application
available in two ways:
• By office visitation, and
• By providing copies or making them
widely available.

Public Inspection by Office
Visitation
A private foundation must make its annual
returns and exemption application
available for public inspection without
charge at its principal, regional, and
district offices during regular business
hours.
Conditions that may be set for public
inspection at the office. A private
foundation:
• May have an employee present,
• Must allow the individual conducting
the inspection to take notes freely during
the inspection, and
• Must allow an individual to make
photocopies of documents at no charge
but only if the individual brings
photocopying equipment to the place of
inspection.
Determining if a site is a regional or
district office. A regional or district
office is any office of a private foundation,
other than its principal office, that has
paid employees whose total number of
paid hours a week are normally 120 hours
or more. Include the hours worked by
part-time (as well as full-time) employees
in making that determination.
What sites are not considered a
regional or district office. A site is not
considered a regional or district office if:
1. The only services provided at the
site further the foundation’s exempt
purposes (for example, day care, health
care, or scientific or medical research),
and
2. The site does not serve as an office
for management staff, other than
managers who are involved only in
managing the exempt function activities at
the site.
What if the private foundation does not
maintain a permanent office? If the
private foundation does not maintain a
permanent office, it will comply with the
public inspection by office visitation

-7-

requirement by making the annual returns
and exemption application available at a
reasonable location of its choice. It must
permit public inspection:
• Within a reasonable amount of time
after receiving a request for inspection
(normally, not more than 2 weeks), and
• At a reasonable time of day.
Optional method of complying. If a
private foundation that does not have a
permanent office wishes not to allow an
inspection by office visitation, it may mail
a copy of the requested documents
instead of allowing an inspection.
However, it must mail the documents
within 2 weeks of receiving the request
and may charge for copying and postage
only if the requester consents to the
charge.
Private foundations with a
permanent office but limited or no
hours. Even if a private foundation has a
permanent office but no office hours or
very limited hours during certain times of
the year, it must still meet the office
visitation requirement. To meet this
requirement during those periods when
office hours are limited or not available,
follow the rules above under, What if the
private foundation does not maintain a
permanent office?

Public Inspection —Providing
Copies
A private foundation must provide copies
of its annual returns or exemption
application to any individual who makes a
request for a copy in person or in writing
unless it makes these documents widely
available.
In-person requests for document
copies. A private foundation must
provide copies to any individual who
makes a request in person at the private
foundation’s principal, regional, or district
offices during regular business hours on
the same day that the individual makes
the request.
Accepted delay in fulfilling an
in-person request. If unusual
circumstances exist and fulfilling a
request on the same day places an
unreasonable burden on the private
foundation, it must provide copies by the
earlier of:
• The next business day following the
day that the unusual circumstances end,
or
• The fifth business day after the date of
the request.
Examples of unusual circumstances
include:
• Receipt of a volume of requests (for
document copies) that exceeds the
private foundation’s daily capacity to
make copies,
• Requests received shortly before the
end of regular business hours that require
an extensive amount of copying, or
• Requests received on a day when the
organization’s managerial staff capable of
fulfilling the request is conducting official
duties (for instance, student registration
or attending an off-site meeting or

Page 8 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

convention) instead of its regular
administrative duties.
Use of local agents for providing
copies. A private foundation may use a
local agent to handle in-person requests
for document copies. If a private
foundation uses a local agent, it must
immediately provide the local agent’s
name, address, and telephone number to
the requester.
The local agent must:

• Be located within reasonable proximity
to the principal, regional, or district office
where the individual makes the request,
and
• Provide document copies within the
same time frames as the private
foundation.

Written requests for document copies.
If a private foundation receives a written
request for a copy of its annual returns or
exemption application (or parts of these
documents), it must give a copy to the
requester. However, this rule only applies
if the request:
• Is addressed to a private foundation’s
principal, regional, or district office,
• Is delivered to that address by mail,
electronic mail (email), facsimile (fax), or
a private delivery service approved by the
IRS (see Private delivery services on
page 5 for a list), and
• Gives the address to which the
document copies should be sent.
How and when a written request is
fulfilled.
• Requested document copies must be
mailed within 30 days from the date the
private foundation receives the request.
• Unless other evidence exists, a request
or payment that is mailed is considered to
be received by the private foundation 7
days after the postmark date.
• If an advance payment is required,
copies must be provided within 30 days
from the date payment is received.
• If the private foundation requires
payment in advance and it receives a
request without payment or with
insufficient payment, it must notify the
requester of the prepayment policy and
the amount due within 7 days from the
date it receives the request.
• A request that is transmitted to the
private foundation by email or fax is
considered received the day the request
is transmitted successfully.
• Requested documents can be emailed
instead of the traditional method of
mailing if the requester consents to this
method.
A document copy is considered as
provided on the:
• Postmark date,
• Private delivery date,
• Registration date for certified or
registered mail,
• Postmark date on the sender’s receipt
for certified or registered mail, or
• Day the email is successfully
transmitted (if the requester agreed to this
method).

Requests for parts of a document
copy. A person can request all or any
specific part or schedule of the annual
returns or exemption application and the
private foundation must fulfill their request
for a copy.
Can an agent be used to provide
copies? A private foundation can use an
agent to provide document copies for the
written requests it receives. However, the
agent must provide the document copies
under the same conditions that are
imposed on the private foundation itself.
Also, if an agent fails to provide the
documents as required, the private
foundation will continue to be subject to
penalties.
Example. The ABC Foundation
retained an agent to provide copies for all
written requests for documents. However,
ABC Foundation received a request for
document copies before the agent did.
The deadline for providing a response
is referenced by the date that the ABC
Foundation received the request and not
when the agent received it. If the agent
received the request first, then a
response would be referenced to the date
that the agent received it.
Can a fee be charged for providing
copies? A private foundation may
charge a reasonable fee for providing
copies. Also, it can require the fee to be
paid before providing a copy of the
requested document.
What is a reasonable fee? A fee is
reasonable only if it is no more than the
per-page copying fee charged by the IRS
for providing copies, plus no more than
the actual postage costs incurred to
provide the copies.
What forms of payment must the
private foundation accept? The form of
payment depends on whether the request
for copies is made in person or in writing.
Cash and money order must be
accepted for in-person requests for
document copies. The private foundation,
if it wishes, may accept additional forms
of payment.
Certified check, money order, and
either personal check or credit card must
be accepted for written requests for
document copies. The private foundation,
if it wishes, may accept additional forms
of payment.
Other fee information. If a private
foundation provides a requester with
notice of a fee and the requester does not
pay the fee within 30 days, it may ignore
the request.
If a requester’s check does not clear
on deposit, it may ignore the request.
If a private foundation does not require
prepayment and the requester does not
prepay, the private foundation must
receive consent from the requester if the
copying and postage charge
exceeds $20.
Private foundations subject to a
harassment campaign. If the IRS
determines that a private foundation is

-8-

being harassed, it is not required to
comply with any request for copies that it
reasonably believes is part of the
harassment campaign.
A group of requests for a private
foundation’s annual returns or exemption
application is indicative of a harassment
campaign if the requests are part of a
single coordinated effort to disrupt the
operations of the private foundation rather
than to collect information about it.
See Regulations section
301.6104(d)-3 for more information.
Requests that may be disregarded
without IRS approval. A private
foundation may disregard any request for
copies of all or part of any document
beyond the first two received within any
30-day period or the first four received
within any 1-year period from the same
individual or the same address.

Making the Annual Returns and
Exemption Application Widely
Available
A private foundation does not have to
provide copies of its annual returns and/or
its exemption application if it makes these
documents widely available. However, it
must still allow public inspection by office
visitation.
How does a private foundation make
its annual returns and exemption
application widely available? A private
foundation’s annual returns and/or
exemption application is widely available
if it meets all four of the following
requirements:
1. The Internet posting requirement —
This is met if:
• The document is posted on a World
Wide Web page that the private
foundation establishes and maintains, or
• The document is posted as part of a
database of like documents of other
tax-exempt organizations on a World
Wide Web page established and
maintained by another entity.
2. Additional posting information
requirement — This is met if:
• The World Wide Web page through
which the document is available clearly
informs readers that the document is
available and provides instructions for
downloading the document;
• After it is downloaded and viewed,
the web document exactly reproduces the
image of the annual returns or exemption
application as it was originally filed with
the IRS, except for any information
permitted by statute to be withheld from
public disclosure; and
• Any individual with access to the
Internet can access, download, view, and
print the document without special
computer hardware or software required
for that format (except software that is
readily available to members of the public
without payment of any fee) and without
payment of a fee to the private foundation
or to another entity maintaining the web
page.
3. Reliability and accuracy
requirements — To meet this, the entity
Form 990-PF Instructions

Page 9 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

maintaining the World Wide Web page
must:
• Have procedures for ensuring the
reliability and accuracy of the document
that it posts on the page;
• Take reasonable precautions to
prevent alteration, destruction, or
accidental loss of the document when
posted on its page; and
• Correct or replace the document if a
posted document is altered, destroyed, or
lost.
4. Notice requirement — To meet this,
a private foundation must notify any
individual requesting a copy of its annual
returns and/or exemption application
where the documents are available
(including the Internet address). If the
request is made in person, the private
foundation must notify the individual
immediately. If the request is in writing, it
must notify the individual within 7 days of
receiving the request.

Penalties
A penalty may be imposed on any person
who does not make the annual returns
(including all required attachments to
each return) or the exemption application
available for public inspection according
to the section 6104(d) rules discussed
above. If more than one person fails to
comply, each person is jointly and
severally liable for the full amount of the
penalty. The penalty amount is $20 for
each day during which a failure occurs.
The maximum penalty that may be
imposed on all persons for any one
annual return is $10,000. There is no
maximum penalty amount for failure to
make the exemption application available
for public inspection.
Any person who willfully fails to comply
with the section 6104(d) public inspection
requirements is subject to an additional
penalty of $5,000 (section 6685).

Requirements Placed on the
IRS
A private foundation’s Form 990-PF,
990-T, and approved exemption
application may be inspected by the
public at an IRS office for your area or at
the IRS National Office in Washington,
DC.
To request a copy or to inspect a Form
990-PF, 990-T, or an approved exemption
application, complete Form 4506-A.
Generally, there is a charge for
photocopying.
Also, the IRS can provide a complete
set of Forms 990-PF filed for a year on
CD and/or DVD. A partial set of Forms
990-PF filed by state or by month is also
available. Call 1-877-829-5500 or write to
the address below for details.

Internal Revenue Service
RAIVS Unit MS:6716
Ogden, UT 84201
Form 990-PF Instructions

R. Disclosures Regarding
Certain Information and
Services Furnished
A section 501(c) organization that offers
to sell or solicits money for specific
information or a routine service to any
individual that could be obtained by the
individual from a Federal Government
agency free or for a nominal charge must
disclose that fact conspicuously when
making such offer or solicitation.
Any organization that intentionally
disregards this requirement will be subject
to a penalty for each day the offers or
solicitations are made. The penalty is the
greater of $1,000 or 50% of the total cost
of the offers and solicitations made on
that day.

S. Organizations
Organized or Created in a
Foreign Country or U.S.
Possession
If you apply any provision of any U.S. tax
treaty to compute the foundation’s taxable
income, tax liability, or tax credits in a
manner different from the 990-PF
instructions, attach an explanation.
Regulations section 53.4948-1(b)
states that sections 507, 508, and
Chapter 42 (other than section 4948) do
not apply to a foreign private foundation
that from the date of its creation has
received at least 85% of its support (as
defined in section 509(d), other than
section 509(d)(4)) from sources outside
the United States.
Section 4948(a) imposes a 4% tax on
the gross investment income from U.S.
sources (such as income from dividends,
interest, rents, payments received on
securities loans (as defined in section
512(a)(5)), and royalties not reported on
Form 990-T) of an exempt foreign private
foundation. This tax replaces the section
4940 tax on the net investment income of
a domestic private foundation. To pay any
tax due, see the instructions for Part VI,
line 9.
Taxable foreign private foundations
and foreign section 4947(a)(1) nonexempt
charitable trusts are not subject to the
excise taxes under sections 4948(a) and
4940, but are subject to income tax under
subtitle A of the Code.
Certain foreign foundations are not
required to send copies of annual returns
to state officials, or comply with the public
inspection and notice requirements of
annual returns. (See General Instructions
G and Q.)

T. Liquidation, Dissolution,
Termination, or
Substantial Contraction
If there is a liquidation, dissolution,
termination, or substantial contraction

-9-

(defined below) of the organization,
attach:
• A statement to the return
explaining it,
• A certified copy of the liquidation plan,
resolution, etc. (if any) and all
amendments or supplements that were
not previously filed,
• A schedule that lists the names and
addresses of all recipients of assets, and
• An explanation of the nature and fair
market value of the assets distributed to
each recipient.
Additional requirements. For a
complete corporate liquidation or trust
termination, attach a statement as to
whether a final distribution of assets was
made and the date it was made (if
applicable).
Also, an organization must indicate:
• That it has ceased to exist, check the
“Final Return” box in G at the top of page
1 of the return, or
• Is terminating its private foundation
status under section 507(b)(1)(B), see
General Instructions U and V, or
• Is voluntarily terminating its private
foundation status under section 507(a)(1)
and owes a termination tax, send the
notice (and tax payment, if applicable)
required by Rev. Rul. 2003-13, 2003-4
I.R.B. 305, and Rev. Rul. 2002-28,
2002-20, I.R.B. 941 (2002-1 C.B., 941) to
the Manager, Exempt Organizations
Determinations, at the address given in
General Instruction U.
Relief from public inspection
requirements. If the organization has
terminated its private foundation status
under section 507(b)(1)(A), it does not
have to comply with the notice and public
inspection requirements of their return for
the termination year.
Filing date. See General Instruction J
for the filing date.
Definitions. The term substantial
contraction includes any partial liquidation
or any other significant disposition of
assets. However, this does not include
transfers for full and adequate
consideration or distributions of current
income.
A significant disposition of assets does
not include any disposition for a tax year
if:
1. The total of the dispositions for the
tax year is less than 25% of the fair
market value of the net assets of the
organization at the beginning of the tax
year, and
2. The total of the related dispositions
made during prior tax years (if a
disposition is part of a series of related
dispositions made during these prior tax
years) is less than 25% of the fair market
value of the net assets of the organization
at the beginning of the tax year in which
any of the series of related dispositions
was made.
The facts and circumstances of the
particular case will determine whether a
significant disposition has occurred

Page 10 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

through a series of related dispositions.
Ordinarily, a distribution described in
section 170(b)(1)(F)(ii) (relating to private
foundations making qualifying
distributions out of corpus equal to 100%
of contributions received during the
foundation’s tax year) will not be taken
into account as a significant disposition of
assets. See Regulations section
1.170A-9(h)(2).

U. Filing Requirements
During Section
507(b)(1)(B) Termination
Although an organization terminating its
private foundation status under section
507(b)(1)(B) may be regarded as a public
charity for certain purposes, it is
considered a private foundation for filing
requirement purposes and it must file an
annual return on Form 990-PF. The return
must be filed for each year in the
60-month termination period, if that period
has not expired before the due date of the
return.
Regulations under section 507(b)(1)
(B)(iii) specify that within 90 days after the
end of the termination period the
organization must supply information to
the IRS establishing that it has terminated
its private foundation status and,
therefore, qualifies as a public charity.
Send the information to:
Internal Revenue Service
TE/GE – EO Determinations
P.O. Box 2508
Cincinnati, OH 45201
If information is furnished establishing
a successful termination, then, for the
final year of the termination period, the
organization should comply with the filing
requirements for the type of public charity
it has become. See the Instructions for
Form 990 and Schedule A (Form 990 or
990-EZ) for details on filing requirements.
This applies even if the IRS has not
confirmed that the organization has
terminated its private foundation status by
the time the return for the final year of the
termination is due (or would be due if a
return were required).
The organization will be allowed a
reasonable period of time to file any
private foundation returns required (for
the last year of the termination period) but
not previously filed if it is later determined
that the organization did not terminate its
private foundation status. Interest on any
tax due will be charged from the original
due date of the Form 990-PF, but
penalties under sections 6651 and 6652
will not be assessed if the Form 990-PF is
filed within the period allowed by the IRS.

V. Special Rules for
Section 507(b)(1)(B)
Terminations
If the organization is terminating its
private foundation status under the

60-month provisions of section
507(b)(1)(B), special rules apply. (See
General Instructions T and U.) Under
these rules, the organization may file
Form 990-PF without paying the tax
based on investment income if it filed a
consent under section 6501(c)(4) with its
notification to the TE/GE Customer
Account Services at the Cincinnati
address given in General Instruction U of
its intention to begin a section
507(b)(1)(B) termination. The consent
provides that the period of limitation on
the assessment of tax under Chapter 42,
based on investment income for any tax
year in the 60-month period, will not
expire until at least 1 year after the period
for assessing a deficiency for the last tax
year in which the 60-month period would
normally expire. Any foundation not
paying the tax when it files Form 990-PF
must attach a copy of the signed consent.
If the foundation did not file the
consent, the tax must be paid in the
normal manner as explained in General
Instructions O and P. The organization
may file a claim for refund after
completing termination or during the
termination period. The claim for refund
must be filed on time and the organization
must supply information establishing that
it qualified as a public charity for the
period for which it paid the tax.

W. Rounding, Currency,
and Attachments
Rounding off to whole dollars. You
may round off cents to whole dollars on
your return and schedules. If you do
round to whole dollars, you must round all
amounts. To round, drop amounts under
50 cents and increase amounts from 50
to 99 cents to the next dollar. For
example, $1.39 becomes $1 and $2.50
becomes $3.
If you have to add two or more
amounts to figure the amount to enter on
a line, include cents when adding the
amounts and round off only the total.
Currency and language requirements.
Report all amounts in U.S. dollars (state
conversion rate used). Report all items in
total, including amounts from both U.S.
and non-U.S. sources. All information
must be in English.
Attachments. Use the schedules on
Form 990-PF. If you need more space,
use attachments that are the same size
as the printed forms.
On each attachment, write:

• “Form 990-PF,”
• The tax year,
• The corresponding schedule number or

letter,
• The organization’s name and EIN, and
• The information requested using the
format and line sequence of the printed
form.
Also, show totals on the printed forms.

-10-

Specific Instructions
Completing the Heading
The following instructions are keyed to
items in the Form 990-PF heading.

Name and Address
If the organization operates under a name
different from its legal name, give the
legal name of the organization but identify
its alternate name, after the legal name,
by writing “aka”(also known as) and the
alternate name of the organization. The
address used must be that of the principal
office of the foundation.
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, show the box number instead of
the street address.

A—Employer Identification
Number
The organization should have only one
employer identification number. If it has
more than one number, notify the Internal
Revenue Service Center at the address
shown under General Instruction J.
Explain what numbers 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 then advise which number to use.

B—Telephone Number
Enter a foundation telephone number
(including the area code) that the public
and government regulators may use to
obtain information about the foundation’s
finances and activities. This information
should be available at this telephone
number during normal business hours. If
the foundation does not have a
telephone, enter a telephone number of a
foundation official who can provide this
information during normal business hours.

D2—Foreign Organizations
If the foreign organization meets the 85%
test of Regulations section 53.4948-1(b),
then:
• Check the box in D2 on page 1 of Form
990-PF,
• Check the box at the top of Part XI,
• Do not fill in Parts XI and XIII,
• Do not fill in Part X unless it is claiming
status as a private operating foundation,
and
• Attach the computation of the 85% test
to Form 990-PF.

E—Section 507(b)(1)(A)
Terminations
A private foundation that has terminated
its status as such under section
507(b)(1)(A), by distributing all its net
assets to one or more public charities
without keeping any right, title, or interest
in those assets, should check the box in E
on page 1 of Form 990-PF. See General
Instructions Q and T.
Form 990-PF Instructions

Page 11 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

F—60-Month Termination
Under Section 507(b)(1)(B)

8 or expenses included in cost of goods
sold on line 10b.

Check the box in F on page 1 of Form
990-PF if the organization is terminating
its private foundation status under the
60-month provisions of section
507(b)(1)(B) during the period covered by
this return. To begin such a termination, a
private foundation must have given
advance notice to TE/GE at the Cincinnati
address given on page 10 and provided
the information outlined in Regulations
section 1.507-2T(b)(3). See General
Instruction U for information regarding
filing requirements during a section
507(b)(1)(B) termination.
See General Instruction V for
information regarding payment of the tax
based on investment income (computed
in Part VI) during a section 507(b)(1)(B)
termination.

Column (b) — Net Investment
Income

H—Type of Organization
Check the box for “Section 501(c)(3)
exempt private foundation” if the
foundation has a ruling or determination
letter from the IRS in effect that
recognizes its exemption from federal
income tax as an organization described
in section 501(c)(3) or if the organization’s
exemption application is pending with the
IRS.
Check the “Section 4947(a)(1)
nonexempt charitable trust” box if the
trust is a nonexempt charitable trust
treated as a private foundation. All others,
check the “Other taxable private
foundation” box.

I—Fair Market Value of All
Assets
In block I on page 1 of Form 990-PF,
enter the fair market value of all assets
the foundation held at the end of the tax
year.
This amount should be the same

TIP as the figure reported in Part II,
column (c), line 16.

Part I—Analysis of
Revenue and Expenses
Column Instructions
The total of amounts in columns (b), (c),
and (d) may not necessarily equal the
amounts in column (a).
The amounts entered in column (a)
and on line 5b must be analyzed in Part
XVI-A.

Column (a) —Revenue and
Expenses per Books
Enter in column (a) all items of revenue
and expense shown in the books and
records that increased or decreased the
net assets of the organization. However,
do not include the value of services
donated to the foundation, or items such
as the free use of equipment or facilities,
in contributions received. Also, do not
include any expenses used to compute
capital gains and losses on lines 6, 7, and
Form 990-PF Instructions

All domestic private foundations
(including section 4947(a)(1) nonexempt
charitable trusts) are required to pay an
excise tax each tax year on net
investment income.
Exempt foreign foundations are
subject to an excise tax on gross
investment income from U.S. sources.
These foreign organizations should
complete lines 3, 4, 5, 11, 12, and 27b of
column (b) and report only income
derived from U.S. sources. No other
income should be included. No expenses
are allowed as deductions.
Definitions
Gross investment income. Gross
investment income is the total amount of
investment income that was received by a
private foundation from all sources.
However, it does not include any income
subject to the unrelated business income
tax. It includes interest, dividends, rents,
payments with respect to securities loans
(as defined in section 512(a)(5)), royalties
received from assets devoted to
charitable activities, income from notional
principal contracts (as defined in
Regulations section 1.863-7), annuities,
substantially similar income from ordinary
and routine investments, and income from
similar sources. Therefore, interest
received on a student loan is includible in
the gross investment income of a private
foundation making the loan.
Net investment income. Net
investment income is the amount by
which the sum of gross investment
income and the capital gain net income
exceeds the allowable deductions
discussed later. Tax-exempt interest on
governmental obligations and related
expenses are excluded.
Investment income. Include in column
(b) all or part of any amount from column
(a) that applies to investment income.
However, do not include in column (b)
any income and related expenses
reported on Form 990-T.
For example, investment income from
debt-financed property unrelated to the
organization’s charitable purpose and
certain rents (and related expenses)
treated as unrelated trade or business
income should be reported on Form
990-T. Income from debt-financed
property that is not taxed under section
511 is taxed under section 4940. Thus, if
the debt/basis percentage of a
debt-financed property is 80%, only 80%
of the gross income (and expenses) for
that property is used to figure the section
511 tax on Form 990-T. The remaining
20% of the gross income (and expenses)
of that property is used to figure the
section 4940 tax on net investment
income on Form 990-PF. (See Form
990-T and its instructions for more
information.)

-11-

Investment expenses. Include in
column (b) all ordinary and necessary
expenses paid or incurred to produce or
collect investment income from: interest,
dividends, rents, amounts received from
payments on securities loans (as defined
in section 512(a)(5)), royalties, income
from notional principal contracts,
annuities, substantially similar income
from ordinary and routine investments,
and income from similar sources; or for
the management, conservation, or
maintenance of property held for the
production of income that is taxable under
section 4940.
If any of the expenses listed in column
(a) are paid or incurred for both
investment and charitable purposes, they
must be allocated on a reasonable basis
between the investment activities and the
charitable activities so that only expenses
from investment activities appear in
column (b). Examples of allocation
methods are given in the instructions for
Part IX-A.
Limitation. The deduction for
expenses paid or incurred in any tax year
for producing gross investment income
earned incident to a charitable function
cannot be more than the amount of
income earned from the function that is
includible as gross investment income for
the year.
For example, if rental income is
incidentally realized in 2008 from historic
buildings held open to the public,
deductions for amounts paid or incurred
in 2008 for the production of this income
may not be more than the amount of
rental income includible as gross
investment income in column (b) for 2008.
Expenses related to tax-exempt
interest. Do not include on lines 13 – 23
of column (b) any expenses paid or
incurred that are allocable to tax-exempt
interest that is excluded from lines 3
and 4.

Column (c) —Adjusted Net Income
Nonoperating private foundations

TIP should see item 1 under
Nonoperating private foundations,
later, to find out if they need to complete
column (c).
Private operating foundations. All
organizations that claim status as private
operating foundations under section
4942(j)(3) or (5) must complete all lines of
column (c) that apply, according to the
general rules for income and expenses
that apply to this column, the specific line
instructions for lines 3 – 27c, the Special
rule, and Examples 1 and 2 below.
General rules. In general, adjusted net
income is the amount of a private
foundation’s gross income that is more
than the expenses of earning the income.
The modifications and exclusions
explained below are applied to gross
income and expenses in figuring adjusted
net income.
For income and expenses, include on
each line of column (c) only that portion of

Page 12 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

the amount from column (a) that is
applicable to the adjusted net income
computation.
Income. For column (c), include
income from charitable functions,
investment activities, short-term capital
gains from investments, amounts set
aside, and unrelated trade or business
activities. Do not include gifts, grants, or
contributions, or long-term capital gains or
losses.
Expenses. Deductible expenses
include the part of a private foundation’s
operating expenses that is paid or
incurred to produce or collect gross
income reported on lines 3 – 11 of column
(c). If only part of the property produces
income includible in column (c),
deductions such as interest, taxes, and
rent must be divided between the
charitable and noncharitable uses of the
property. If the deductions for property
used for a charitable, educational, or
other similar purpose are more than the
income from the property, the excess will
not be allowed as a deduction but may be
treated as a qualifying distribution in Part
I, column (d). See Examples 1 and 2
below.
Special rule. The expenses attributable
to each specific charitable activity, limited
by the amount of income from the activity,
must be reported in column (c) on lines
13 – 26. If the expenses of any charitable
activity exceed the income generated by
that activity, only the excess of these
expenses over the income should be
reported in column (d).
Examples.
1. A charitable activity generated
$5,000 of income and $4,000 of
expenses. Report all of the income and
expenses in column (c) and none in
column (d).
2. A charitable activity generated
$5,000 of income and $6,000 of
expenses. Report $5,000 of income and
$5,000 of expenses in column (c) and the
excess expenses of $1,000 in column (d).
Nonoperating private foundations.
The following rules apply to nonoperating
private foundations.
• If a nonoperating private foundation
has no income from charitable activities
that would be reportable on line 10 or line
11 of Part I, it does not have to make any
entries in column (c).
• If a nonoperating private foundation
has income from charitable activities, it
must report that income only on lines 10
and/or 11 in column (c). These
foundations do not need to report other
kinds of income and expenses (such as
investment income and expenses) in
column (c).
• If a nonoperating private foundation
has income that it reports on lines 10 and/
or 11, report any expenses relating to this
income following the general rules and
the special rule. See Examples 1 and 2
above.

Column (d) —Disbursements for
Charitable Purposes
Expenses entered in column (d) relate to
activities that constitute the charitable
purpose of the foundation.
For amounts entered in column (d):
• Use the cash receipts and
disbursements method of accounting no
matter what accounting method is used in
keeping the books of the foundation;
• Do not include any amount or part of an
amount that is included in column (b) or
(c);
• Include on lines 13 – 25 all expenses,
including necessary and reasonable
administrative expenses, paid by the
foundation for religious, charitable,
scientific, literary, educational, or other
public purposes, or for the prevention of
cruelty to children or animals;
• Include a distribution of property at the
fair market value on the date the
distribution was made; and
• Include only the part entered in column
(a) that is allocable to the charitable
purposes of the foundation.
Example. An educational seminar
produced $1,000 in income that was
reportable in columns (a) and (c).
Expenses attributable to this charitable
activity were $1,900. Only $1,000 of
expense should be reported in column (c)
and the remaining $900 in expense
should be reported in column (d).
Qualifying distributions. Generally,
gifts and grants to organizations
described in section 501(c)(3), that have
been determined to be publicly supported
charities (for example, organizations that
are not private foundations as defined in
section 509(a)), are qualifying
distributions only if the granting
foundation does not control the public
charity.
The total of the expenses and

TIP disbursements on line 26 is also
entered on line 1a in Part XII to
figure qualifying distributions.
Alternative to completing lines 13 – 25.
If you want to provide an analysis of
disbursements that is more detailed than
column (d), you may attach a schedule
instead of completing lines 13 – 25. The
schedule must include all the specific
items of lines 13 – 25, and the total from
the schedule must be entered in column
(d), line 26.

Line Instructions
Line 1 — Contributions, gifts, grants,
etc., received. Enter the total of gross
contributions, gifts, grants, and similar
amounts received.
Schedule B (Form 990, 990-EZ, or
990-PF). If money, securities, or other
property valued at $5,000 or more was
received directly or indirectly from any
one person during the year, complete
Schedule B and attach it to the return. If
the foundation is not required to complete
Schedule B (no person contributed
$5,000 or more), be sure to check the box
on line 2.

-12-

To determine whether a person has
contributed $5,000 or more, total only
gifts of $1,000 or more from each person.
Separate and independent gifts need not
be totaled if less than $1,000. If a
contribution is in the form of property,
describe the property and include its fair
market value.
The term “person” includes individuals,
fiduciaries, partnerships, corporations,
associations, trusts, and exempt
organizations.
Split-interest trusts. Distributions
from split-interest trusts should be
entered on line 1 of column (a). They are
a part of the amount on line 1.
Substantiation requirements. An
organization must keep records, required
by the regulations under section 170, for
all its charitable contributions.
Generally, a donor making a charitable
contribution of $250 or more will not be
allowed a federal income tax deduction
unless the donor obtains a written
acknowledgment from the donee
organization by the earlier of the date on
which the donor files a tax return for the
tax year in which the contribution was
made or the due date, including
extensions, for filing that return. However,
see section 170(f)(8)(D) and Regulations
section 1.170A-13(f) for exceptions to this
rule.
The written acknowledgment the
foundation provides to the donor must
show:
1. The amount of cash contributed,
2. A description of any property
contributed,
3. Whether the foundation provided
any goods or services to the donor, and
4. A description and a good-faith
estimate of the value of any goods or
services the foundation gave in return for
the contribution, unless:
a. The goods and services have
insubstantial value, or
b. A statement is included that these
goods and services consist solely of
intangible religious benefits.
Generally, if a charitable organization
solicits or receives a contribution of more
than $75 for which it gives the donor
something in return (a quid pro quo
contribution), the organization must
inform the donor, by written statement,
that the amount of the contribution
deductible for federal income tax
purposes is limited to the amount by
which the contribution exceeds the value
of the goods or services received by the
donor. The written statement must also
provide the donor with a good-faith
estimate of the value of goods or services
given in return for the contribution.
Penalties. An organization that does
not make the required disclosure for each
quid pro quo contribution will incur a
penalty of $10 for each failure, not to
exceed $5,000 for a particular fundraising
event or mailing, unless it can show
Form 990-PF Instructions

Page 13 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

reasonable cause for not providing the
disclosure.
For more information. See
Regulations section 1.170A-13 for more
information on charitable recordkeeping
and substantiation requirements.
Line 2. Check this box if the foundation
is not required to attach Schedule B.
Line 3 — Interest on savings and
temporary cash investments.
In column (a). Enter the total amount
of interest income from investments of the
type reportable in Balance Sheets, Part II,
line 2. These include savings or other
interest-bearing accounts and temporary
cash investments, such as money market
funds, commercial paper, certificates of
deposit, and U.S. Treasury bills or other
government obligations that mature in
less than 1 year.
In column (b). Enter the amount of
interest income shown in column (a). Do
not include interest on tax-exempt
government obligations.
In column (c). Enter the amount of
interest income shown in column (a).
Include interest on tax-exempt
government obligations.
Line 4 — Dividends and interest from
securities.
In column (a). Enter the amount of
dividend and interest income from
securities (stocks and bonds) of the type
reportable in Balance Sheets, Part II, line
10. Include amounts received from
payments on securities loans, as defined
in section 512(a)(5). Do not include any
capital gain dividends reportable on line
6. Report income from program-related
investments on line 11. For debt
instruments with an original issue
discount, report the original issue
discount ratably over the life of the bond
on line 4. See section 1272 for more
information.
In column (b). Enter the amount of
dividend and interest income, and
payments on securities loans from
column (a). Do not include interest on
tax-exempt government obligations.
In column (c). Enter the amount of
dividends and interest income, and
payments on securities loans from
column (a). Include interest on
tax-exempt government obligations.
Line 5a — Gross rents.
In column (a). Enter the gross rental
income for the year from investment
property reportable on line 11 of Part II.
In columns (b) and (c). Enter the
gross rental income from column (a).
Line 5b — Net rental income or (loss).
Figure the net rental income or (loss) for
the year and enter that amount on the
entry line to the left of column (a).
Report rents from other sources on
line 11, Other income. Enter any
expenses attributable to the rental income
reported on line 5, such as interest and
depreciation, on lines 13 – 23.
Form 990-PF Instructions

Line 6a — Net gain or (loss) from sale
of assets. Enter the net gain or (loss)
per books from all asset sales not
included on line 10.
For assets sold and not included in
Part IV, attach a schedule showing:
• Date acquired,
• Manner of acquisition,
• Gross sales price,
• Cost, other basis, or value at time of
acquisition (if donated) and which of
these methods was used,
• Date sold,
• To whom sold,
• Expense of sale and cost of
improvements made subsequent to
acquisition, and
• Depreciation since acquisition (if
depreciable property).
Line 6b — Gross sales price for all
assets on line 6a. Enter the gross sales
price from all asset sales whose net gain
or loss was reported on line 6a.
Line 7 — Capital gain net income.
Enter the capital gain net income from
Part IV, line 2. SeePart IV instructions.
Line 8 — Net short-term capital gain.
Only private operating foundations

TIP report their short-term capital
gains on line 8.
Include only net short-term capital gain
for the year (assets sold or exchanged
that were held not more than 1 year). Do
not include a net long-term capital gain or
a net loss in column (c).
Do not include on line 8 a net gain
from the sale or exchange of depreciable
property, or land used in a trade or
business (section 1231) and held for
more than 1 year. However, include a net
loss from such property on line 23 as an
Other expense.
In general, foundations may carry to
line 8 the net short-term capital gain
reported on Part IV, line 3. However, if the
foundation had any short-term capital
gain from sales of debt-financed property,
add it to the amount reported on Part IV,
line 3, to figure the amount to include on
line 8. For the definition of “debt-financed
property,” see the Instructions for Form
990-T.
Line 9 — Income modifications. Include
on this line:
1. Amounts received or accrued as
repayments of amounts taken into
account as qualifying distributions;
2. Amounts received or accrued from
the sale or other disposition of property to
the extent that the acquisition of the
property was considered a qualifying
distribution for any tax year;
3. Any amount set aside for a specific
project (see explanation in the
instructions for Part XII) that was not
necessary for the purposes for which it
was set aside;
4. Income received from an estate,
but only if the estate was considered
terminated for income tax purposes due
to a prolonged administration period; and

-13-

5. Amounts treated in an earlier tax
year as qualifying distributions to:

• A nonoperating private foundation, if
the amounts were not redistributed by the
grantee organization by the close of its
tax year following the year in which it
received the funds, or
• An organization controlled by the
distributing foundation or a disqualified
person if the amounts were not
redistributed by the grantee organization
by the close of its tax year following the
year in which it received the funds.
Lines 10a, b, c — Gross profit from
sales of inventory. Enter the gross
sales (less returns and allowances), cost
of goods sold, and gross profit or (loss)
from the sale of all inventory items,
including those sold in the course of
special events and activities. These
inventory items are the ones the
organization either makes to sell to others
or buys for resale.
Do not report any sales or exchanges
of investments on line 10.
Do not include any profit or (loss) from
the sale of capital items such as
securities, land, buildings, or equipment
on line 10. Enter these amounts on
line 6a.
Do not include any business expenses
such as salaries, taxes, rent, etc., on line
10. Include them on lines 13 – 23.
Attach a schedule showing the
following items: Gross sales, Cost of
goods sold, Gross profit or (loss). These
items should be classified according to
type of inventory sold (such as books,
tapes, other educational or religious
material, etc.). The totals from the
schedule should agree with the entries on
lines 10a – 10c.
In column (c), enter the gross profit or
(loss) from sales of inventory shown in
column (a), line 10c.
Line 11 — Other income. Enter the total
of all the foundation’s other income for the
year. Attach a schedule that gives a
description and the amount of the income.
Include all income not reported on lines 1
through 10c. Also, see the instructions for
Part XVI-A, line 11.
Include imputed interest on certain
deferred payments figured under section
483 and any investment income not
reportable on lines 3 through 5, including
income from program-related investments
(defined in the instructions for Part IX-B).
Do not include unrealized gains and
losses on investments carried at market
value. Report those as fund balance or
net asset adjustments in Part III.
In column (b). Enter the amount of
investment income included in line 11,
column (a). Include dividends, interest,
rents, and royalties derived from assets
devoted to charitable activities, such as
interest on student loans.
In column (c). Include all other items
includible in adjusted net income not
covered elsewhere in column (c).

Page 14 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 12 — Total. In column (b).
Domestic organizations should enter the
total of lines 3 – 11. Exempt foreign
organizations, enter the total of lines 3, 4,
5, and 11 only.
Line 13 — Compensation of officers,
directors, trustees, etc.
In column (a). Enter the total
compensation for the year of all officers,
directors, and trustees. If none was paid,
enter zero. Complete line 1 of Part VIII to
show the compensation of officers,
directors, trustees, and foundation
managers.
In columns (b), (c), and (d). Enter
the portion of the compensation included
in column (a) that is applicable to the
column. For example, in column (c) enter
the portion of the compensation included
in column (a) that was paid or incurred to
produce or collect income included in
column (c).
Line 14 — Other employee salaries and
wages. Enter the salaries and wages of
all employees other than those included
on line 13.
Line 15 — Contributions to employee
pension plans and other benefits.
Enter the employer’s share of the
contributions the organization paid to
qualified and nonqualified pension 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. Complete the return/report
of the Form 5500 series appropriate for
the organization’s plan. (See the
Instructions for Form 5500 for information
about employee welfare benefit plans
required to file that form.)
Also include the amount of federal,
state, and local payroll taxes for the year,
but only those that are imposed on the
organization as an employer. This
includes the employer’s share of social
security and Medicare taxes, FUTA tax,
state unemployment compensation tax,
and other state and local payroll taxes.
Do not include taxes withheld from
employees’ salaries and paid over to the
various governmental units (such as
federal and state income taxes and the
employee’s share of social security and
Medicare taxes).
Lines 16a, b, and c — Legal,
accounting, and other professional
fees. On the appropriate line(s), enter
the amount of legal, accounting, auditing,
and other professional fees (such as fees
for fundraising or investment services)
charged by outside firms and individuals
who are not employees of the foundation.
Attach a schedule for lines 16a, b, and
c. Show the type of service and amount of
expense for each. If the same person
provided more than one of these services,
include an allocation of those expenses.
Report any fines, penalties, or
judgments imposed against the
foundation as a result of legal
proceedings on line 23, Other expenses.

Line 18 — Taxes. Attach a schedule
listing the type and amount of each tax
reported on line 18. Do not enter any
taxes included on line 15.
In column (a). Enter the taxes paid
(or accrued) during the year. Include all
types of taxes recorded on the books,
including real estate tax not reported on
line 20; the tax on investment income;
and any income tax.
In column (b). Enter only those taxes
included in column (a) that are related to
investment income taxable under section
4940. Do not include the section 4940 tax
paid or incurred on net investment income
or the section 511 tax on unrelated
business income. Sales taxes may not be
deducted separately, but must be treated
as a part of the cost of acquired property,
or as a reduction of the amount realized
on disposition of the property.
In column (c). Enter only those taxes
included in column (a) that relate to
income included in column (c). Do not
include any excise tax paid or incurred on
the net investment income (as shown in
Part VI), or any tax reported on Form
990-T.
In column (d). Do not include any
excise tax paid on investment income (as
reported in Part VI of this return or the
equivalent part of a return for prior years)
unless the organization is claiming status
as a private operating foundation and
completes Part XIV.
Line 19 — Depreciation and depletion.
In column (a). Enter the expense
recorded in the books for the year.
For depreciation, attach a schedule
showing:
• A description of the property,
• The date acquired,
• The cost or other basis (exclude any
land),
• The depreciation allowed or allowable
in prior years,
• The method of computation,
• The rate (%) or life (years), and
• The depreciation this year.
On a separate line on the schedule,
show the amount of depreciation included
in cost of goods sold and not included on
line 19.
In columns (b) and (c). A deduction
for depreciation is allowed only for
property used in the production of income
reported in the column, and only using the
straight line method of computing
depreciation. A deduction for depletion is
allowed but must be figured only using
the cost depletion method.
The basis used in figuring depreciation
and depletion is the basis determined
under normal basis rules, without regard
to the special rules for using the fair
market value on December 31, 1969, that
relate only to gain or loss on dispositions
for purposes of the tax on net investment
income.
Line 20 — Occupancy. Enter the
amount paid or incurred for the use of
office space or other facilities. If the space

-14-

is rented or leased, enter the amount of
rent. If the space is owned, enter the
amount of mortgage interest, real estate
taxes, and similar expenses, but not
depreciation (reportable on line 19). In
either case, include the amount for
utilities and related expenses (for
example, heat, lights, water, power,
telephone, sewer, trash removal, outside
janitorial services, and similar services).
Do not include any salaries of the
organization’s own employees that are
reportable on line 15.
Line 21 — Travel, conferences, and
meetings. Enter the expenses for
officers, employees, or others during the
year for travel, attending conferences,
meetings, etc. Include transportation
(including fares, mileage allowance, or
automobile expenses), meals and
lodging, and related costs whether paid
on the basis of a per diem allowance or
actual expenses incurred. Do not include
any compensation paid to those who
participate.
In column (b). Only 50% of the
expense for business meals, etc., paid or
incurred in connection with travel,
meetings, etc., relating to the production
of investment income may be deducted in
figuring net investment income (section
274(n)).
In column (c). Enter the total amount
of expenses paid or incurred by officers,
employees, or others for travel,
conferences, meetings, etc., related to
income included in column (c).
Line 22 — Printing and publications.
Enter the expenses for printing or
publishing and distributing any
newsletters, magazines, etc. Also include
the cost of subscriptions to, or purchases
of, magazines, newspapers, etc.
Line 23 — Other expenses. Enter all
other expenses for the year. Include all
expenses not reported on lines 13 – 22.
Attach a schedule showing the type and
amount of each expense.
If a deduction is claimed for
amortization, attach a schedule showing:
• Description of the amortized expenses;
• Date acquired, completed, or
expended;
• Amount amortized;
• Deduction for prior years;
• Amortization period (number of
months);
• Current-year amortization; and
• Total amount of amortization.
In column (c). In addition to the
applicable portion of expenses from
column (a), include any net loss from the
sale or exchange of land or depreciable
property that was held for more than
1 year and used in a trade or business.
A deduction for amortization is allowed
but only for assets used for the production
of income reported in column (c).
Line 25 — Contributions, gifts, grants
paid.
In column (a). Enter the total of all
contributions, gifts, grants, and similar
amounts paid (or accrued) for the year.
Form 990-PF Instructions

Page 15 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

List each contribution, gift, grant, etc., in
Part XV, or attach a schedule of the items
included on line 25 and list:
1. Each class of activity,
2. A separate total for each activity,
3. Name and address of donee,
4. Relationship of donee if related by:
a. Blood,
b. Marriage,
c. Adoption, or
d. Employment (including children of
employees) to any disqualified person
(see General Instruction C for definitions),
and
5. The organizational status of donee
(for instance, public charity — an
organization described in section
509(a)(1), (2), or (3)).
You do not have to give the name of
any indigent person who received one or
more gifts or grants from the foundation
unless that individual is a disqualified
person or one who received a total of
more than $1,000 from the foundation
during the year.
Activities should be classified
according to purpose and in greater detail
than merely classifying them as
charitable, educational, religious, or
scientific activities. For example, use
identification such as: payments for
nursing service, for fellowships, or for
assistance to indigent families.
Foundations may include, as a single
entry on the schedule, the total of
amounts paid as grants for which the
foundation exercised expenditure
responsibility. Attach a separate report for
each grant.
When the fair market value of the
property at the time of disbursement is
the measure of a contribution, the
schedule must also show:
• A description of the contributed
property,
• The book value of the contributed
property,
• The method used to determine the
book value,
• The method used to determine the fair
market value, and
• The date of the gift.
The difference between fair

TIP market value and book value
should be shown in the books of
account and as a net asset adjustment in
Part III.
In column (d). Enter on line 25 all
contributions, gifts, and grants the
foundation paid during the year.
• Do not include contributions to
organizations controlled by the foundation
or by a disqualified person (see General
Instruction C for definitions). Do not
include contributions to nonoperating
private foundations unless the donees are
exempt from tax under section 501(c)(3),
they redistribute the contributions, and
they maintain sufficient evidence of
redistributions according to the
regulations under section 4942(g).
Form 990-PF Instructions

• Do not include contributions paid from
a nonoperating private foundation to a
Type III supporting organization (as
defined under section 4943(f)(5)) that is
not a functionally integrated Type III
supporting organization (as defined under
section 4943(f)(5)(B)). See Notice
2006-109, 2006-51 I.R.B. 1121, available
at www.irs.gov/irb/2006-51_IRB/index.
html.
• Do not include contributions paid from
a nonoperating private foundation to any
supporting organization if a disqualified
person of the private foundation controls
the supporting organization or any of its
supported organizations. See Notice
2006-109.
• Do not reduce the amount of grants
paid in the current year by the amount of
grants paid in a prior year that was
returned or recovered in the current year.
Report those repayments in column (c),
line 9, and in Part XI, line 4.
• Do not include any payments of
set-asides (see instructions for Part XII,
line 3) taken into account as qualifying
distributions in the current year or any
prior year. All set-asides are included in
qualifying distributions (Part XII, line 3) in
the year of the set-aside, regardless of
when paid.
• Do not include current year write-offs of
prior years’ program-related investments.
All program-related investments are
included in qualifying distributions (Part
XII, line 1b) in the year the investment is
made.
• Do not include any payments that are
not qualifying distributions as defined in
section 4942(g)(1).
Net Amounts
Line 27a — Excess of revenue over
expenses. Subtract line 26, column (a),
from line 12, column (a). Enter the result.
Generally, the amount shown in column
(a) on this line is also the amount by
which net assets (or fund balances) have
increased or decreased for the year. See
the instructions for Part III, Analysis of
Changes in Net Assets or Fund Balances.
Line 27b — Net investment income.
Domestic organizations, subtract line 26
from line 12. Enter the result. Exempt
foreign organizations, enter the amount
shown on line 12. However, if the
organization is a domestic organization
and line 26 is more than line 12 (such as
expenses exceed income), enter zero
(not a negative amount).
Line 27c — Adjusted net income.
Subtract line 26, column (c) from line 12,
column (c) and enter the result.

Part II—Balance Sheets
For column (b), show the book value at
the end of the year. For column (c), show
the fair market value at the end of the
year. Attached schedules must show the
end-of-year value for each asset listed in
columns (b) and (c).
• Foundations whose books of account
included total assets of $5,000 or more at

-15-

any time during the year must complete
all of columns (a), (b), and (c).
• Foundations with less than $5,000 of
total assets per books at all times during
the year must complete all of columns (a)
and (b), and only line 16 of column (c).
Line 1 — Cash — Non-interest-bearing.
Enter the amount of cash on deposit in
checking accounts, deposits in transit,
change funds, petty cash funds, or any
other non-interest-bearing account. Do
not include advances to employees or
officers or refundable deposits paid to
suppliers or others.
Line 2 — Savings and temporary cash
investments. Enter the total of cash in
savings or other interest-bearing accounts
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 1 year.
Line 3 — Accounts receivable. On the
dashed lines to the left of column (a),
enter the year-end figures for total
accounts receivable and allowance for
doubtful accounts from the sale of goods
and/or the performance of services. In
columns (a), (b), and (c), enter net
amounts (total accounts receivable
reduced by the corresponding allowance
for doubtful accounts). Claims against
vendors or refundable deposits with
suppliers or others may be reported here
if not significant in amount. (Otherwise,
report them on line 15, Other assets.) Any
receivables due from officers, directors,
trustees, foundation managers, or other
disqualified persons must be reported on
line 6. Report receivables (including loans
and advances) due from other employees
on line 15.
Line 4 — Pledges receivable. On the
dashed lines to the left of column (a),
enter the year-end figures for total
pledges receivable and allowance for
doubtful accounts (pledges estimated to
be uncollectible). In columns (a), (b), and
(c), enter net amounts (total pledges
receivable reduced by the corresponding
allowance for doubtful accounts).
Line 5 — Grants receivable. Enter the
total grants receivable from governmental
agencies, foundations, and other
organizations as of the beginning and end
of the year.
Line 6 — Receivables due from officers,
directors, trustees, and other
disqualified persons. Enter here (and
on an attached schedule described
below) all receivables due from officers,
directors, trustees, foundation managers,
and other disqualified persons and all
secured and unsecured loans (including
advances) to such persons. Disqualified
person is defined in General
Instruction C.
Attached schedules. (a) On the
required schedule, report each loan
separately, even if more than one loan
was made to the same person, or the
same terms apply to all loans made.

Page 16 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Salary advances and other advances
for the personal use and benefit of the
recipient and receivables subject to
special terms or arising from transactions
not functionally related to the foundation’s
charitable purposes must be reported as
separate loans for each officer, director,
etc.
(b) Receivables that are subject to
the same terms and conditions (including
credit limits and rate of interest) as
receivables due from the general public
from an activity functionally related to the
foundation’s charitable purposes may be
reported as a single total for all the
officers, directors, etc. Travel advances
made for official business of the
organization may also be reported as a
single total.
For each outstanding loan or other
receivable that must be reported
separately, the attached schedule should
show the following information (preferably
in columnar form):
1. Borrower’s name and title,
2. Original amount,
3. Balance due,
4. Date of note,
5. Maturity date,
6. Repayment terms,
7. Interest rate,
8. Security provided by the borrower,
9. Purpose of the loan, and
10. Description and fair market value of
the consideration furnished by the lender
(for example, cash — $1,000; or 100
shares of XYZ, Inc., common stock —
$9,000).
The above detail is not required for
receivables or travel advances that may
be reported as a single total (see (b)
above); however, report and identify
those totals separately on the attachment.
Line 7 — Other notes and loans
receivable. On the dashed lines to the
left of column (a), enter the combined
total year-end figures for notes receivable
and loans receivable and the allowance
for doubtful accounts.
Notes receivable. In columns (a),
(b), and (c), enter the amount of all notes
receivable not listed on line 6 and not
acquired as investments. Attach a
schedule similar to the one for line 6. The
schedule should also identify the
relationship of the borrower to any officer,
director, trustee, foundation manager, or
other disqualified person.
For a note receivable from any section
501(c)(3) organization, list only the name
of the borrower and the balance due on
the required schedule.
Loans receivable. In columns (a),
(b), and (c), enter the gross amount of
loans receivable, minus the allowance for
doubtful accounts, from the normal
activities of the filing organization (such
as scholarship loans). An itemized list of
these loans is not required, but attach a
schedule showing the total amount of
each type of outstanding loan. Report
loans to officers, directors, trustees,

foundation managers, or other
disqualified persons on line 6 and loans to
other employees on line 15.
Line 8 — Inventories for sale or use.
Enter the amount of materials, goods, and
supplies purchased or manufactured by
the organization and held for sale or use
in some future period.
Line 9 — Prepaid expenses and
deferred charges. Enter the amount of
short-term and long-term prepayments of
expenses attributable to one or more
future accounting periods. Examples
include prepayments of rent, insurance,
and pension costs, and expenses
incurred in connection with a solicitation
campaign to be conducted in a future
accounting period.
Lines 10a, b, and c — Investments —
government obligations, corporate
stocks and bonds. Enter the book
value (which may be market value) of
these investments.
Attach a schedule that lists each
security held at the end of the year and
shows whether the security is listed at
cost (including the value recorded at the
time of receipt in the case of donated
securities) or end-of-year market value.
Do not include amounts shown on line 2.
Governmental obligations reported on line
10a are those that mature in 1 year or
more. Debt securities of the U.S.
Government may be reported as a single
total rather than itemized. Obligations of
state and municipal governments may
also be reported as a lump-sum total. Do
not combine U.S. Government obligations
with state and municipal obligations on
this schedule.
Line 11 — Investments — land,
buildings, and equipment. On the
dashed lines to the left of column (a),
enter the year-end book value (cost or
other basis) and accumulated
depreciation of all land, buildings, and
equipment held for investment purposes,
such as rental properties. In columns (a)
and (b), enter the book value of all land,
buildings, and equipment held for
investment less accumulated
depreciation. In column (c), enter the fair
market value of these assets. Attach a
schedule listing these investment fixed
assets held at the end of the year and
showing, for each item or category listed,
the cost or other basis, accumulated
depreciation, and book value.
Line 12 — Investments — mortgage
loans. Enter the amount of mortgage
loans receivable held as investments but
do not include program-related
investments (see instructions for line 15).
Line 13 — Investments — other. Enter
the amount of all other investment
holdings not reported on lines 10 through
12. Attach a schedule listing and
describing each of these investments held
at the end of the year. Show the book
value for each and indicate whether the
investment is listed at cost or end-of-year
market value. Do not include

-16-

program-related investments (see
instructions for line 15).
Line 14 — Land, buildings, and
equipment. On the dashed lines to the
left of column (a), enter the year-end book
value (cost or other basis) and
accumulated depreciation of all land,
buildings, and equipment owned by the
organization and not held for investment.
In columns (a) and (b), enter the book
value of all land, buildings, and equipment
not held for investment less accumulated
depreciation. In column (c), enter the fair
market value of these assets. Include any
property, plant, and equipment owned
and used by the organization to conduct
its charitable activities. Attach a schedule
listing these fixed assets held at the end
of the year and showing the cost or other
basis, accumulated depreciation, and
book value of each item or category
listed.
Line 15 — Other assets. List and show
the book value of each category of assets
not reportable on lines 1 through 14.
Attach a separate schedule if more space
is needed.
One type of asset reportable on line 15
is program-related investments. These
are investments made primarily to
accomplish a charitable purpose of the
filing organization rather than to produce
income.
Line 16 — Total assets. All filers must
complete line 16 of columns (a), (b), and
(c). These entries represent the totals of
lines 1 through 15 of each column.
However, foundations that have assets of
less than $5,000 per books at all times
during the year need not complete lines 1
through 15 of column (c).
The column (c) amount is also

TIP entered on the entry space for I on
page 1.
Line 17 — Accounts payable and
accrued expenses. Enter the total of
accounts payable to suppliers and others
and accrued expenses, such as salaries
payable, accrued payroll taxes, and
interest payable.
Line 18 — Grants payable. Enter the
unpaid portion of grants and awards that
the organization has made a commitment
to pay other organizations or individuals,
whether or not the commitments have
been communicated to the grantees.
Line 19 — Deferred revenue. Include
revenue that the organization has
received but not yet earned as of the
balance sheet date under its method of
accounting.
Line 20 — Loans from officers,
directors, trustees, and other
disqualified persons. Enter the unpaid
balance of loans received from officers,
directors, trustees, and other disqualified
persons. For loans outstanding at the end
of the year, attach a schedule that shows
(for each loan) the name and title of the
lender and the information listed in items
2 through 10 of the instructions for line 6
above.
Form 990-PF Instructions

Page 17 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 21 — Mortgages and other notes
payable. Enter the amount of mortgages
and other notes payable at the beginning
and end of the year. Attach a schedule
showing, as of the end of the year, the
total amount of all mortgages payable
and, for each nonmortgage note payable,
the name of the lender and the other
information specified in items 2 through
10 of the instructions for line 6. The
schedule should also identify the
relationship of the lender to any officer,
director, trustee, foundation manager, or
other disqualified person.
Line 22 — Other liabilities. List and
show the amount of each liability not
reportable on lines 17 through 21. Attach
a separate schedule if more space is
needed.

Lines 24 Through 30—Net
Assets or Fund Balances
Foundations that follow SFAS 117. If
the foundation follows SFAS 117, check
the box above line 24. Classify and report
net assets in three groups — unrestricted,
temporarily restricted, and permanently
restricted — based on the existence or
absence of donor-imposed restrictions
and the nature of those restrictions. Show
the sum of the three classes of net assets
on line 30. On line 31, add the amounts
on lines 23 and 30 to show total liabilities
and net assets. This figure should be the
same as the figure for Total assets on
line 16.
Line 24 — Unrestricted. Enter the
balances per books of the unrestricted
class of net assets. Unrestricted net
assets are neither permanently restricted
nor temporarily restricted by
donor-imposed stipulations. All funds
without donor-imposed restrictions must
be classified as unrestricted, regardless
of the existence of any board
designations or appropriations.
Line 25 — Temporarily restricted. Enter
the balances per books of the temporarily
restricted class of net assets. Donors’
temporary restrictions may require that
resources be used in a later period or
after a specified date (time restrictions),
or that resources be used for a specified
purpose (purpose restrictions), or both.
Line 26 — Permanently restricted.
Enter the total of the balances for the
permanently restricted class of net
assets. Permanently restricted net assets
are (a) assets, such as land or works of
art, donated with stipulations that they be
used for a specified purpose, be
preserved, and not be sold or (b) assets
donated with stipulations that they be
invested to provide a permanent source
of income. The latter result from gifts and
bequests that create permanent
endowment funds.
Foundations that do not follow SFAS
117. If the foundation does not follow
SFAS 117, check the box above line 27
and report account balances on lines 27
through 29. Report net assets or fund
balances on line 30. Also complete line
Form 990-PF Instructions

31 to report the sum of the total liabilities
and net assets/fund balances.
Line 27 — Capital stock, trust principal,
or current funds. For corporations,
enter the balance per books for capital
stock accounts. Show par or stated value
(or for stock with no par or stated value,
total amount received upon issuance) of
all classes of stock issued and, as yet,
uncancelled. For trusts, enter the amount
in the trust principal or corpus account.
For foundations continuing to use the
fund method of accounting, enter the fund
balances for the foundation’s current
restricted and unrestricted funds.
Line 28 — Paid-in or capital surplus, or
land, building, and equipment fund.
Enter the balance per books for all paid-in
capital in excess of par or stated value for
all stock issued and uncancelled. If
stockholders or others gave donations
that the organization records as paid-in
capital, include them here. Report any
current-year donations you included on
line 28 in Part I, line 1. The fund balance
for the land, building, and equipment fund
would be entered here.
Line 29 — Retained earnings,
accumulated income, endowment, or
other funds. For corporations, enter the
balance in the retained earnings, or
similar account, minus the cost of any
corporate treasury stock. For trusts, enter
the balance per books in the accumulated
income or similar account. For
foundations using fund accounting, enter
the total of the fund balances for the
permanent and term endowment funds as
well as balances of any other funds not
reported on lines 27 and 28.
Line 30 — Total net assets or fund
balances. For foundations that follow
SFAS 117, enter the total of lines 24
through 26. For all other foundations,
enter the total of lines 27 through 29.
Enter the beginning-of-year figure in
column (a) on line 1, Part III. The
end-of-year figure in column (b) must
agree with the figure in Part III, line 6.
Line 31 — Total liabilities and net
assets/fund balances. Enter the total of
lines 23 and 30. This amount must equal
the amount for total assets reported on
line 16 for both the beginning and end of
the year.

Part III—Analysis of
Changes in Net Assets or
Fund Balances
Generally, the excess of revenue over
expenses accounts for the difference
between the net assets at the beginning
and end of the year.
On line 2, Part III, re-enter the figure
from Part I, line 27(a), column (a).
On lines 3 and 5, list any changes in
net assets that were not caused by the
receipts or expenses shown in Part I,
column (a). For example, if a foundation
follows FASB Statement No. 12 and
shows an asset in the ending balance
sheet at a higher value than in the

-17-

beginning balance sheet because of an
increased market value (after a larger
decrease in a prior year), include the
increase in Part III, line 3.
If the organization uses a stepped-up
basis to determine gains on sales of
assets included in Part I, column (a), then
include the amount of step-up in basis in
Part III. If you entered a contribution, gift,
or grant of property valued at fair market
value on line 25 of Part I, column (a), the
difference between fair market value and
book value should be shown in the books
of account and as a net asset adjustment
in Part III.

Part IV—Capital Gains and
Losses for Tax on
Investment Income
Use Part IV to figure the amount of net
capital gain to report on lines 7 and 8 of
Part I.
• Part IV does not apply to foreign
organizations.
• Nonoperating private foundations may
not have to figure their short-term capital
gain or loss on line 3. See the rules for
Nonoperating private foundations on
page 12.
Reportable gains and losses. Capital
gains or losses include gains or losses
from the sale or other disposition of
property that:
• Is used for a charitable purpose,
• Is held for investment, or
• Is used in the production of income. Do
not include the gain or loss that is
included in figuring the foundation’s
unrelated business taxable income.
However, do not include gains or
losses for any portion of property if:
• The property was used for 1 year or
more in furthering the foundation’s
exempt purpose or function, and
• Immediately following the use, is
exchanged for property of like kind that is
to be used primarily in furthering the
foundation’s exempt purpose or function.
Rules similar to the rules of section 1031
relating to exchange of property held for
productive use or investment apply. See
Gross Investment Income on page 11.
Basis. The basis for determining gain
from the sale or other disposition of
property is the larger of:
1. The fair market value of the
property on December 31, 1969, plus or
minus all adjustments after December 31,
1969, and before the date of disposition, if
the foundation held the property on that
date and continuously after that date until
disposition, or
2. The basis of the property on the
date of disposition under normal basis
rules (actual basis). See Code sections
1011 – 1021.
The rules that generally apply to
property dispositions reported in this part
are:
• Section 1011, Adjusted basis for
determining gain or loss;

Page 18 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Section 1012, Basis of property-cost;
• Section 1014, Basis of property
acquired from a decedent;

• Section 1015, Basis of property

acquired by gifts and transfers in trust;
and
• Section 1016, Adjustments to basis.
To figure a loss, basis on the date of
disposition is determined under normal
basis rules.
Losses. If the disposition of
investment property results in a loss, that
loss may be subtracted from capital gains
realized from the disposition of property
during the same tax year but only to the
extent of the gains. If losses are more
than gains, the excess may not be
subtracted from gross investment income,
nor may the losses be carried back or
forward to other tax years.

Reporting Transactions on Part
IV
Publicly traded securities. For sales of
publicly traded securities through a
broker, enter the description “publicly
traded securities” on line 1, column (a).
Leave columns (b), (c), and (d) blank.
Total the gross sales price, the cost or
other basis, and the expense of sale on
all such securities sold. Report these
lump-sum figures in columns (e) through
(l), as appropriate. You must maintain
detailed records of each transaction in
your books and records.
Publicly traded securities are securities
that are listed and regularly traded on an
over-the-counter market or an established
exchange in which market quotations are
published or otherwise readily available.
Securities include:
• Common and preferred stock,
• Bonds (including governmental
obligations), and
• Mutual fund shares.
Other gains and losses. For sales of
anything other than publicly traded
securities sold, each transaction must be
listed and reported separately, completing
all appropriate columns in Part IV.

Part V—Qualification
Under Section 4940(e) for
Reduced Tax on Net
Investment Income
This part is used by domestic private
foundations (exempt and taxable) to
determine whether they qualify for the
reduced 1% tax under section 4940(e) on
net investment income rather than the 2%
tax on net investment income under
section 4940(a).
Do not complete Part V if this is the
organization’s first year. A private
foundation cannot qualify under section
4940(e) for its first year of existence, nor
can a former public charity qualify for the
first year it is treated as a private
foundation.

A separate computation must be made
for each year in which the foundation
wants to qualify for the reduced tax.
Line 1, column (b). Enter the amount of
adjusted qualifying distributions made for
each year shown. The amounts in column
(b) are taken from Part XII, line 6 of the
Form 990-PF for 2003 – 2007.
Line 1, column (c). Enter the net value
of noncharitable-use assets for each year.
The amounts in column (c) are taken from
Part X, line 5, for 2003 – 2007.

Part VI—Excise Tax Based
on Investment Income
(Section 4940(a), 4940(b),
4940(e), or 4948)
General Rules
Domestic exempt private foundations.
These foundations are subject to a 2%
tax on net investment income under
section 4940(a). However, certain exempt
operating foundations described in
section 4940(d)(2) may not owe any tax,
and certain private foundations that meet
the requirements of section 4940(e) may
qualify for a reduced tax of 1% (see the
Part V instructions).
Exception. The section 4940 tax
does not apply to an organization making
an election under section 41(e)(6). Enter
“N/A” in Part VI.
Domestic taxable private foundations
and section 4947(a)(1) nonexempt
charitable trusts. These organizations
are subject to a modified 2% tax on net
investment income under section 4940(b).
(See Part V and its instructions to find out
if they meet the requirements of section
4940(e) that allows them to use a
modified 1% tax on net investment
income.) However, they must first
compute the tax under section 4940(a) as
if that tax applied to them.
Foreign organizations. Under section
4948, exempt foreign private foundations
are subject to a 4% tax on their gross
investment income derived from U.S.
sources.
Taxable foreign private foundations
that filed Form 1040NR, U.S. Nonresident
Alien Income Tax Return, or Form
1120-F, U.S. Income Tax Return of a
Foreign Corporation, enter
“N/A” in Part VI.
Estimated tax. Domestic exempt and
taxable private foundations and section
4947(a)(1) nonexempt charitable trusts
may have to make estimated tax
payments for the excise tax based on
investment income. See General
Instruction O for more information.

Tax Computation
Line 1a only applies to domestic
exempt operating foundations that
CAUTION are described in section
4940(d)(2) and that have a ruling letter
from the IRS establishing exempt

!

-18-

operating foundation status. If your
organization does not have this letter,
skip line 1a.
Line 1a. A domestic exempt private
foundation that qualifies as an exempt
operating foundation under section
4940(d)(2) is not liable for any tax on net
investment income on this return.
If your organization qualifies, check the
box and enter the date of the ruling letter
on line 1a and enter “N/A” on line 1.
Leave the rest of Part Vl blank. For the
first year, the organization must attach a
copy of the ruling letter establishing
exempt operating foundation status. As
long as the organization retains this
status, write the date of the ruling letter in
the space on line 1a. If the organization
no longer qualifies under section
4940(d)(2), leave the date line blank and
compute the section 4940 tax in the
normal manner.
Qualification. To qualify as an
exempt operating foundation for a tax
year, an organization must meet the
following requirements of section
4940(d)(2).
• It is an operating foundation described
in section 4942(j)(3).
• It has been publicly supported for at
least 10 tax years or was a private
operating foundation on January 1, 1983,
or for its last tax year ending before
January 1, 1983.
• Its governing body, at all times during
the tax year, consists of individuals less
than 25% of whom are disqualified
individuals, and is broadly representative
of the general public.
• It has no officer who was a disqualified
individual at any time during the tax year.
Line 2 — Section 511 tax. Under section
4940(b), a domestic section 4947(a)(1)
nonexempt charitable trust or taxable
private foundation must add to the tax
figured under section 4940(a) (on line 1)
the tax which would have been imposed
under section 511 for the tax year if it had
been exempt from tax under section
501(a). If the domestic section 4947(a)(1)
nonexempt charitable trust or taxable
private foundation has unrelated business
taxable income that would have been
subject to the tax imposed by section 511,
the computation of tax must be shown in
an attachment. Form 990-T may be used
as the attachment. All other filers, enter
zero.
Line 4 — Subtitle A tax. Domestic
section 4947(a)(1) nonexempt charitable
trusts and taxable private foundations,
enter the amount of subtitle A (income)
tax for the year reported on Form 1041 or
Form 1120. All other filers, enter zero.
Line 5 — Tax based on investment
income. Subtract line 4 from line 3 and
enter the difference (but not less than
zero) on line 5. Any overpayment entered
on line 10 that is the result of a negative
amount shown on line 5 will not be
refunded. Unless the organization is a
domestic section 4947(a)(1) nonexempt
charitable trust or taxable private
Form 990-PF Instructions

Page 19 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

foundation, the amount on line 5 is the
same as on line 1.
Line 6a. Enter the amount of 2008
estimated tax payments, and any 2007
overpayment of taxes that the
organization specified on its 2007 return
to be credited toward payment of 2008
estimated taxes.

!

Line 6a applies only to domestic
foundations.

CAUTION

Trust payments treated as
beneficiary payments. A trust may treat
any part of estimated taxes it paid as
taxes paid by the beneficiary. If the filing
organization was a beneficiary that
received the benefit of such a payment
from a trust, include the amount on line
6a of Part VI, and write, “Includes section
643(g) payment.” See section 643(g) for
more information about estimated tax
payments treated as paid by a
beneficiary.
Line 6b. Exempt foreign foundations
must enter the amount of tax withheld at
the source.
Line 6d. Enter the amount of any
backup withholding erroneously withheld.
Recipients of interest or dividend
payments must generally certify their
correct tax identification number to the
bank or other payer on Form W-9,
Request for Taxpayer Identification
Number and Certification. If the payer
does not get this information, it must
withhold part of the payments as “backup
withholding.” If the organization files Form
990-PF and was subject to erroneous
backup withholding because the payer did
not realize the payee was an exempt
organization and not subject to this
withholding, the organization can claim
credit for the amount withheld.

!

CAUTION

Do not claim erroneous backup
withholding on line 6d if you claim
it on Form 990-T.

Line 8 — Penalty. Enter any penalty for
underpayment of estimated tax shown on
Form 2220. Form 2220 is used by both
corporations and trusts.
Line 9 — Tax due. Domestic foundations
should see General Instruction P.
All foreign organizations should
enclose a check or money order (in U.S.
funds), made payable to the United
States Treasury, with Form 990-PF.
Amended return. If you are amending
Part VI, be sure to combine any tax due
that was paid with the original return (or
any overpayment credited or refunded) in
the total for line 7. On the dotted line to
the left of the line 7 entry space, write
“Tax Paid w/ O.R.” and the amount paid.
If you had an overpayment, write “O.R.
Overpayment” and the amount credited or
refunded in brackets.
If you file more than one amended
return, attach a schedule listing the tax
due amounts that were paid and
overpayment amounts that were credited
or refunded. Write “See Attachment” on
Form 990-PF Instructions

the dotted line and enter the net amount
in the entry space for line 7.

Part VII-A—Statements
Regarding Activities
Each question in this section must be
answered “Yes,” “No,” or “N/A” (not
applicable).
Line 1. “Political purposes” include, but
are not limited to: directly or indirectly
accepting contributions or making
payments to influence the selection,
nomination, election, or appointment of
any individual to any federal, state, or
local public office or office in a political
organization, or the election of
presidential or vice presidential electors,
whether or not the individual or electors
are actually selected, nominated, elected,
or appointed.
Line 3. A “conformed copy” of an
organizational document is one that
agrees with the original document and all
its amendments. If copies are not signed,
attach 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.
Note. If you are filing electronically, send
a conformed copy of the changes to the
IRS at the address listed in General
Instruction U.
Line 6. For a private foundation to be
exempt from income tax, its governing
instrument must include provisions that
require it to act or refrain from acting so
as not to engage in an act of self-dealing
(section 4941), or subject the foundation
to the taxes imposed by sections 4942
(failure to distribute income), 4943
(excess business holdings), 4944
(investments which jeopardize charitable
purpose), and 4945 (taxable
expenditures). A private foundation may
satisfy these section 508(e) requirements
either by express language in its
governing instrument or by application of
state law that imposes the above
requirements on the foundation or treats
these requirements as being contained in
the governing instrument. If an
organization claims it satisfies the
requirements of section 508(e) by
operation of state law, the provisions of
state law must effectively impose the
section 508(e) requirements on the
organization. See Rev. Rul. 75-38,
1975-1 C.B. 161, for a list of states with
legislation that satisfies the requirements
of section 508(e).
However, if the state law does not
apply to a governing instrument that
contains mandatory directions conflicting
with any of its requirements and the
organization has such mandatory
directions in its governing instrument,
then the organization has not satisfied the
requirements of section 508(e) by the
operation of that legislation.
Line 8a. In the space provided list all
states:

-19-

1. To which the organization reports in
any way about its organization, assets, or
activities, and
2. With which the organization has
registered (or which it has otherwise
notified in any manner) that it intends to
be, or is, a charitable organization or that
it is, or intends to be, a holder of property
devoted to a charitable purpose.
Attach a separate list if you need more
space.
Line 9. If the organization claims status
as a private operating foundation for 2008
and, in fact, meets the private operating
foundation requirements for that year (as
reflected in Part XIV), any excess
distributions carryover from 2007 or prior
years may not be carried over to 2008 or
any year after 2008 even if it does not
meet the private operating foundation
requirements. See the instructions for
Part XIII.
Line 10 — Substantial contributors. If
you answer “Yes,” attach a schedule
listing the names and addresses of all
persons who became substantial
contributors during the year.
The term “substantial contributor”
means any person whose contributions or
bequests during the current tax year and
prior tax years total more than $5,000 and
are more than 2% of the total
contributions and bequests received by
the foundation from its creation through
the close of its tax year. In the case of a
trust, the term “substantial contributor”
also means the creator of the trust
(section 507(d)(2)(A)).
The term “person” includes individuals,
trusts, estates, partnerships, associations,
corporations, and other exempt
organizations.
Each contribution or bequest must be
valued at fair market value on the date it
was received.
Any person who is a substantial
contributor on any date will remain a
substantial contributor for all later periods.
However, a person will cease to be a
substantial contributor with respect to any
private foundation if:
1. The person, and all related
persons, made no contributions to the
foundation during the 10-year period
ending with the close of the taxable year;
2. The person, or any related person,
was never the foundation’s manager
during this 10-year period; and
3. The aggregate contributions made
by the person, and related persons, are
determined by the IRS to be insignificant
compared to the aggregate amount of
contributions to the foundation by any
other person and the appreciated value of
contributions held by the foundation.
The term “related person” includes any
other person who would be a disqualified
person because of a relationship with the
substantial contributor (section 4946).
When the substantial contributor is a
corporation, the term also includes any

Page 20 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

officer or director of the corporation. The
term “substantial contributor” does not
include public charities (organizations
described in section 509(a)(1), (2), or (3)).
Line 11. Answer “Yes” if at any time
during the tax year the foundation owned
a controlled entity. A controlled entity is
an entity in which the foundation owns
more than 50% of the:
1. Stock (by vote or value) in a
corporation,
2. Interest (of profit or capital) in a
partnership, or
3. Beneficial interest of any other
entity.
The foundation must apply section 318
in determining its ownership of stock in a
corporation and use similar principles in
determining its ownership interests in
other entities.
The foundation must attach the
applicable schedules described below:
1. If the foundation answered “Yes” to
line 11, and
2. If at any time during the tax year,
the foundation made any loans or
transfers to a controlled entity, or
3. If at any time during the tax year,
the foundation received any transfers of
funds or payments (received or accrued)
from a controlled entity, including, but not
limited to, interest, annuities, royalties,
rents, dividends, fees, or other payments
for services, contributions to capital, and
loans.
Attached schedule for transfers to
controlled entities. If at any time during
the tax year, the foundation made any
loans or transfers to a corporation,
partnership, or other entity, which it
controlled within the meaning of section
512(b)(13), attach a schedule using the
format provided in the sample schedule
below. In column (c), describe each loan
or transfer. In column (d), enter the
amount for each loan or transfer to each
controlled entity.
Attached schedule for transfers from
controlled entities. If at any time during
the tax year, the foundation received any
transfers of funds or payments from a
controlled entity within the meaning of
section 512(b)(13), attach a schedule
using the format provided in the sample
schedule below. In column (c), describe
each transfer or payment received,
including payment of interest, annuities,
royalties, rents, dividends, fees or other
payments for services, contributions to
capital, and loans. In column (d), enter
the amount of each loan or transfer to
each controlled entity.
Line 12 — Interest in insurance
contracts. Answer “Yes” if after August
17, 2006, but before August 17, 2008, the
foundation directly or indirectly acquired
any applicable insurance contract that is a
part of a structured transaction involving a
pool of such contracts. If you answer
“Yes,” complete Forms 8921 and 8922.
An applicable insurance contract is
any life insurance, annuity, or endowment

contract in which an applicable exempt
organization and a person other than an
applicable exempt organization have
directly or indirectly held an interest in the
contract (whether or not at the same
time). However, an applicable insurance
contract does not include any life
insurance, annuity, or endowment
contract if:
1. All persons directly or indirectly
holding any interest in the contract (other
than applicable exempt organizations)
have an insurable interest in the insured
under the contract independent of any
interest of an applicable exempt
organization in the contract, or
2. The sole interest in the contract of
an applicable exempt organization or
each person other than an applicable
exempt organization is as a named
beneficiary, or
3. The sole interest in the contract of
each person other than an applicable
exempt organization is:
a. As a beneficiary of a trust holding
an interest in the contract, but only if the
person’s designation as such beneficiary
was made without consideration and
solely on a gratuitous basis, or
b. As a trustee who holds an interest
in the contract in a fiduciary capacity
solely for the benefit of applicable
organizations or persons described above
in 1, 2, or 3a. An applicable organization
is the foundation and any organization to
which contributions are deductible for
income tax, estate tax, or gift tax
purposes and Indian tribal governments.
Line 13 — Public inspection
requirements and website address. All
domestic private foundations (including
section 4947(a)(1) nonexempt charitable
trusts treated as private foundations) are
subject to the public inspection
requirements. See General Instruction Q
for information on making the foundation’s
annual returns and exemption application
available for public inspection.
Enter the foundation’s website address
if the foundation has a website.
Otherwise, enter “N/A.”
Line 15 — Section 4947(a)(1) trusts.
Section 4947(a)(1) nonexempt charitable
trusts that file Form 990-PF instead of
Form 1041 must complete this line. The
trust should include exempt-interest
dividends received from a mutual fund or
other regulated investment company as
well as tax-exempt interest received
directly.

Part VII-B—Activities for
Which Form 4720 May Be
Required
The purpose of these questions is to
determine if there is any initial excise tax
due under sections 170(f)(10),
4941 – 4945, 4955, 4958, 4966, and 4967.
If the answer is “Yes” to question 1b, 1c,
2b, 3b, 4a, 4b, 5b, 6b, or 7b, complete
and file Form 4720, unless an exception
applies.

-20-

Line 1 — Self-dealing. The activities
listed in 1a(1) – (6) are considered
self-dealing under section 4941 unless
one of the exceptions applies. See www.
irs.gov/charities/foundations/article/
0,,1d=137679,00.html.
The terms “disqualified person” and
“foundation manager” are defined in
General Instruction C.
Line 1b. If you answered “Yes” to any of
the questions in 1a, you should answer
“Yes” to 1b unless all of the acts engaged
in were “excepted” acts. Excepted acts
are described in Regulations sections
53.4941(d)-3 and 4 or appear in Notices
published in the Internal Revenue Bulletin
relating to disaster assistance.
Line 2b — Taxes on failure to distribute
income. If you answer “No” to question
2b, attach a statement explaining:
• All the facts regarding the incorrect
valuation of assets, and
• The actions taken (or planned) to
comply with section 4942(a)(2)(B), (C),
and (D) and the related regulations.
Line 3a. A private foundation is not
treated as having excess business
holdings in any enterprise if, together with
related foundations, it owns 2% or less of
the voting stock and 2% or less in value
of all outstanding shares of all classes of
stock. (See “disqualified person” under
General Instruction C.) A similar
exception applies to a beneficial or profits
interest in any business enterprise that is
a trust or partnership.
For more information about excess
business holdings, see the instructions for
Form 4720.
Line 4 — Taxes on investments that
jeopardize charitable purposes. In
general, an investment that jeopardizes
any of the charitable purposes of a private
foundation is one for which a foundation
manager did not exercise ordinary
business care to provide for the long-and
short-term financial needs of the
foundation in carrying out its charitable
purposes. For more details, see the
regulations under section 4944.
Line 5 — Taxes on taxable
expenditures and political
expenditures. In general, payments
made for the activities described on lines
5a(1) – (5) are taxable expenditures. Go to
www.irs.gov/charities/foundations/article/
0,,id=137250,00.html.
Except as discussed below, a grant by
a private foundation to a public charity is
not a taxable expenditure if the private
foundation does not earmark the grant for
any of the activities described in lines
5a(1) – (5), and there is no oral or written
agreement by which the grantor
foundation may cause the grantee to
engage in any such prohibited activity or
to select the grant recipient.
Grants made to exempt operating
foundations (as defined in section
4940(d)(2) and the instructions to Part VI)
are not subject to the expenditure
responsibility provisions of section 4945.
Form 990-PF Instructions

Page 21 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 11—Example A
Schedule of Information Regarding Transfers To a Controlled Entity
(A)
Name and address of each controlled entity

(B)
Employer
Identification
Number

(C)
Description of transfer

(D)
Amount of
transfer

a

b

c

d

e

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Line 11—Example B
Schedule of Information Regarding Transfers From a Controlled Entity
(A)
Name and address of each controlled entity

(B)
Employer
Identification
Number

(C)
Description of transfer

a

b

c

d

e

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 990-PF Instructions

-21-

(D)
Amount of
transfer

Page 22 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

A grant from a nonoperating
foundation may be a taxable expenditure
if made to a Type III supporting
organization (as defined in 4943(f)(5))
that is not a functionally integrated
supporting organization (as defined in
4943(f)(5)(B)). Check “Yes” on Line 5a(4)
if you made such a grant. See Notice
2006-109 for more information.
A grant from a nonoperating
foundation may be a taxable expenditure
if made to any other supporting
organization (including a functionally
integrated Type III), if a disqualified
person of the private foundation controls
the supporting organization or any of its
supported organizations. Check “Yes” on
Line 5a(4) if you made such a grant. See
Notice 2006-109 for more information.
Under section 4955, a section
501(c)(3) organization must pay an excise
tax for any amount paid or incurred on
behalf of or opposing any candidate for
public office. The organization must pay
an additional excise tax if it does not
correct the expenditure timely.
A manager of a section 501(c)(3)
organization who knowingly agrees to a
political expenditure must pay an excise
tax unless the agreement is not willful and
there is reasonable cause. A manager
who does not agree to a correction of the
political expenditure may have to pay an
additional excise tax.
A section 501(c)(3) organization will
lose its exempt status if it engages in
political activity.
A political expenditure that is treated
as an expenditure under section 4955 is
not treated as a taxable expenditure
under section 4945.
For purposes of the section 4955 tax,
when an organization promotes a
candidate for public office (or is used or
controlled by a candidate or prospective
candidate), amounts paid or incurred for
the following purposes are political
expenditures:
• Remuneration to the individual (or
candidate or prospective candidate) for
speeches or other services,
• Travel expenses of the individual,
• Expenses of conducting polls, surveys,
or other studies, or preparing papers or
other material for use by the 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 the individual.
See the regulations under section
4945 for more information.
Line 5b. If you answered “Yes” to any of
the questions in 5a, you should answer
“Yes” to 5b unless all of the transactions
engaged in were “excepted” transactions.
Excepted transactions are described in
Regulations section 53.4945 and appear
in Notices published in the Internal
Revenue Bulletin relating to disaster
assistance. For example, see IRS
Publication 3833, Disaster Relief.

Line 6b. Check “Yes” if, in connection
with any transfer of funds to a private
foundation, the foundation 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 these
premiums.
Report the premiums it paid and the
premiums paid by others, but treated as
paid by the private foundation, on Form
8870 and pay the excise tax (which is
equal to premiums paid) on Form 4720.
For more information, see Form 8870
and Notice 2000-24, 2000-17 I.R.B. 952
(Notice 2000-24, 2000-1 C.B. 952).
Line 7a. Answer “Yes” if the foundation
was a party to a prohibited tax shelter
transaction (“PTST”) as described in
section 4965(e) at any time during the tax
year.
Prohibited tax shelter transaction. In
general, prohibited tax shelter transaction
means any listed transaction and any
prohibited reportable transaction.
Listed transaction. A listed transaction,
within the meaning of Code section
6707A(c)(2), is a transaction that is the
same as, or substantially similar to, any
transaction that has been specifically
identified by the Secretary in published
guidance as a tax avoidance transaction
for purposes of Code section 6011.
Prohibited reportable transaction.
Prohibited reportable transaction means
any confidential transaction or any
transaction with contractual protection (as
defined under regulations prescribed by
the Secretary) (see Regulations section
1.6011-4(b)(3) and (4)) which is a
reportable transaction (as defined in
section 6707A(c)(1)).
If the answer to this question is
“Yes,” the foundation must also file
Form 8886-T.
Line 7b. Answer “Yes” if the foundation
answered “Yes” to 7a and it had net
income or received proceeds attributable
to the PTST during the tax year.
If the foundation answers “Yes” to
both Lines 7a and 7b, it may be required
to file Form 4720 and pay tax with respect
to each PTST. The foundation’s
managers also may be required to file
Form 4720 and pay tax with respect to
the relevant PTSTs.

Part VIII—Information
About Officers, Directors,
Trustees, Foundation
Managers, Highly Paid
Employees, and
Contractors
Line 1 — List of officers, directors,
trustees, etc. List the names,
addresses, and other information
requested for those who were officers,
directors, and trustees (or any person
who had responsibilities or powers similar

-22-

to those of officers, directors, or trustees)
of the foundation at any time during the
year. Each must be listed whether or not
they receive any compensation from the
foundation. Give the address at which
officers, etc., prefer the Internal Revenue
Service to contact them.
Also include on this list any officers or
directors (or any person who had
responsibilities or powers similar to those
of officers or directors) of a disregarded
entity owned by the foundation who are
not officers, directors, etc., of the
foundation.
If the foundation (or disregarded entity)
pays any other person, such as a
management services company, for the
services provided by any of the
foundation’s officers, directors, or trustees
(or any person who had responsibilities or
powers similar to those of officers,
directors, or trustees), report the
compensation and other items on Part
VIII as if you had paid the officers, etc.,
directly. Also, see Announcement
2001-33, 2001-17 I.R.B. 1137, 2001-1
C.B. 1137.
Show all forms of compensation
earned by each listed officer, etc. In
addition to completing Part VIII, if you
want to explain the compensation of one
or more officers, directors, and trustees,
you may provide an attachment
describing the person’s entire 2008
compensation package.
Enter zero in columns (c), (d), and (e)
if no compensation was paid. Attach a
schedule if more space is needed.
Column (b). A numerical estimate of
the average hours per week devoted to
the position is required for the answer to
be considered complete.

!

CAUTION

Phrases such as “as needed” or
“as required” are unacceptable
entries for column (b).

Column (c). Enter salary, fees,
bonuses, and severance payments
received by each person listed. Include
current year payments of amounts
reported or reportable as deferred
compensation in any prior year.
Column (d). Include all forms of
deferred compensation and future
severance payments (whether or not
funded or vested, and whether or not the
deferred compensation plan is a qualified
plan under section 401(a)). Include
payments to welfare benefit plans
(employee welfare benefit plans covered
by Part I of Title 1 of ERISA, providing
benefits such as medical, dental, life
insurance, apprenticeship and training,
scholarship funds, severance pay,
disability, etc.) on behalf of the officers,
etc. Reasonable estimates may be used if
precise cost figures are not readily
available.
Unless the amounts are reported in
column (c), report, as deferred
compensation in column (d), salaries and
other compensation earned during the
period covered by the return, but not yet
Form 990-PF Instructions

Page 23 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

paid by the date the foundation files its
return.
Column (e). Enter both taxable and
nontaxable fringe benefits, expense
account and other allowances (other than
de minimis fringe benefits described in
section 132(e)). See Publication 525,
Taxable and Nontaxable Income, for
more information. Examples of
allowances 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 in
connection with 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).
Line 2 — Compensation of five
highest-paid employees. Fill in the
information requested for the five
employees (if any) of the foundation (or
disregarded entity that the foundation
owns) who received the greatest amount
of annual compensation over $50,000. Do
not include employees listed on line 1.
Also enter the total number of other
employees who received more than
$50,000 in annual compensation.
Show each listed employee’s entire
compensation package for the period
covered by the return. Include all forms of
compensation that each listed employee
received in return for his or her services.
See the line 1 instructions for more details
on includible compensation.
Line 3 — Five highest-paid independent
contractors for professional services.
Fill in the information requested for the
five highest-paid independent contractors
(if any), whether individuals or
professional service corporations or
associations, to whom the organization
paid more than $50,000 for the year to
perform personal services of a
professional nature for the organization
(for example, attorneys, accountants, and
doctors). Also show the total number of all
other independent contractors who
received more than $50,000 for the year
for performing professional services.

Part IX-A—Summary of
Direct Charitable Activities
List the foundation’s four largest
programs as measured by the direct and
indirect expenses attributable to each that
consist of the direct active conduct of
charitable activities. Whether any
expenditure is for the direct active
conduct of a charitable activity is
determined, generally, by the definitions
and special rules of section 4942(j)(3) and
the related regulations, which define a
private operating foundation.
Except for significant involvement
grant programs, described below, do not
include in Part IX-A any grants or
expenses attributable to administering
grant programs, such as reviewing grant
applications, interviewing or testing
Form 990-PF Instructions

applicants, selecting grantees, and
reviewing reports relating to the use of the
grant funds.
Include scholarships, grants, or other
payments to individuals as part of an
active program in which the foundation
maintains some significant involvement.
Related administrative expenses should
also be included. Examples of active
programs and definitions of the term
“significant involvement” are provided in
Regulations sections 53.4942(b)-1(b)(2)
and 53.4942(b)-1(d).
Do not include any program-related
investments (reportable in Part IX-B) in
the description and expense totals, but be
sure to include qualified set-asides for
direct charitable activities, reported on
line 3 of Part XII. Also, include in Part
IX-A amounts paid or set aside to acquire
assets used in the direct active conduct of
charitable activities.
Expenditures for direct charitable
activities include, among others, amounts
paid or set aside to:
1. Acquire or maintain the operating
assets of a museum, library, or historic
site or to operate the facility;
2. Provide goods, shelter, or clothing
to indigent or disaster victims if the
foundation maintains some significant
involvement in the activity rather than
merely making grants to the recipients;
3. Conduct educational conferences
and seminars;
4. Operate a home for the elderly or
disabled;
5. Conduct scientific, historic, public
policy, or other research with significance
beyond the foundation’s grant program
that does not constitute a prohibited
attempt to influence legislation;
6. Publish and disseminate the results
of such research, reports of educational
conferences, or similar educational
material;
7. Support the service of foundation
staff on boards or advisory committees of
other charitable organizations or on public
commissions or task forces;
8. Provide technical advice or
assistance to a governmental body, a
governmental committee, or subdivision
of either, in response to a written request
by the governmental body, committee, or
subdivision;
9. Conduct performing arts
performances; or
10. Provide technical assistance to
grantees and other charitable
organizations. This assistance must have
significance beyond the purposes of the
grants made to the grantees and must not
consist merely of monitoring or advising
the grantees in their use of the grant
funds. Technical assistance involves the
furnishing of expert advice and related
assistance regarding, for example:
a. Compliance with governmental
regulations,
b. Reducing operating costs or
increasing program accomplishments,
c. Fundraising methods, and

-23-

d. Maintaining complete and accurate
financial records.
Report both direct and indirect
expenses in the expense totals. Direct
expenses are those that can be
specifically identified as connected with a
particular activity. These include, among
others, compensation and travel
expenses of employees and officers
directly engaged in an activity, the cost of
materials and supplies utilized in
conducting the activity, and fees paid to
outside firms and individuals in
connection with a specific activity.
Indirect (overhead) expenses are
those that are not specifically identified as
connected with a particular activity but
that relate to the direct costs incurred in
conducting the activity. Examples of
indirect expenses include:
• Occupancy expenses;
• Supervisory and clerical compensation;
• Repair, rental, and maintenance of
equipment;
• Expenses of other departments or cost
centers (such as accounting, personnel,
and payroll departments or units) that
service the department or function that
incurs the direct expenses of conducting
an activity; and
• Other applicable general and
administrative expenses, including the
compensation of top management, to the
extent reasonably allocable to a particular
activity.
No specific method of allocation is
required. The method used, however,
must be reasonable and must be used
consistently.
Examples of acceptable allocation
methods include:
• Compensation that is allocated on a
time basis,
• Employee benefits that are allocated on
the basis of direct salary expenses,
• Travel, conference, and meeting
expenses that are charged directly to the
activity that incurred the expense,
• Occupancy expenses that are allocated
on a space-utilized basis, and
• Other indirect expenses that are
allocated on the basis of direct salary
expenses or total direct expenses.

Part IX-B—Summary of
Program-Related
Investments
Program-related investment. Section
4944(c) and corresponding regulations
define a program-related investment as
one that is made primarily to accomplish
a charitable purpose of the foundation
and no substantial purpose of which is to
produce investment income or a capital
gain from the sale of the investment.
Examples of program-related investments
include educational loans to individuals
and low-interest loans to other section
501(c)(3) organizations.
General instructions. Include only
those investments that were reported in

Page 24 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Part XII, line 1b, for the current year. Do
not include any investments made in any
prior year even if they were still held by
the foundation at the end of 2008.
Investments consisting of loans to
individuals (such as educational loans)
are not required to be listed separately
but may be grouped with other
program-related investments of the same
type. Loans to other section 501(c)(3)
organizations and all other types of
program-related investments must be
listed separately on lines 1 through 3 or
on an attachment.
Lines 1 and 2. List the two largest
program-related investments made by the
foundation in 2008, whether or not the
investments were still held by the
foundation at the end of the year.
Line 3. Combine all other
program-related investments and enter
the total on the line 3 Amount column. List
the individual investments or groups of
investments included (attach a schedule if
necessary).
The total of lines 1 through 3 in

TIP the Amount column must equal
the amount reported on line 1b of
Part XII.

Part X—Minimum
Investment Return
Who must complete this section? All
domestic foundations must complete
Part X.
Foreign foundations that checked box
D2 on page 1 do not have to complete
Part X unless claiming status as a private
operating foundation.
Private operating foundations,
described in sections 4942(j)(3) or
4942(j)(5), must complete Part X in order
to complete Part XIV.
Overview. A private foundation that is
not a private operating foundation must
pay out, as qualifying distributions, its
minimum investment return. This is
generally 5% of the total fair market value
of its noncharitable assets, subject to
further adjustments as explained in the
instructions for Part XI. The amount of
this minimum investment return is figured
in Part X and is used in Part XI to figure
the amount that is required to be paid out
(the distributable amount).
Minimum investment return. In figuring
the minimum investment return, include
only those assets that are not actually
used or held for use by the organization
for a charitable, educational, or other
similar function that contributed to the
charitable status of the foundation. Cash
on hand and on deposit is considered
used or held for use for charitable
purposes only to the extent of the
reasonable cash balances reported in
Part X, line 4. See the instructions for
lines 1b and 4 below.
Assets that are held for the production
of income or for investment are not
considered to be used directly for

charitable functions even though the
income from the assets is used for the
charitable functions. It is a factual
question whether an asset is held for the
production of income or for investment
rather than used or held for use directly
by the foundation for charitable purposes.
For example, an office building that is
used to provide offices for employees
engaged in managing endowment funds
for the foundation is not considered an
asset used for charitable purposes.
Dual-use property. When property
is used both for charitable and other
purposes, the property is considered used
entirely for charitable purposes if 95% or
more of its total use is for that purpose. If
less than 95% of its total use is for
charitable purposes, a reasonable
allocation must be made between
charitable and noncharitable use.
Excluded property. Certain assets
are excluded entirely from the
computation of the minimum investment
return. These include pledges of grants
and contributions to be received in the
future and future interests in estates and
trusts.
Line 1a — Average monthly fair market
value of securities. If market quotations
are readily available, a foundation may
use any reasonable method to determine
the average monthly fair market value of
securities such as common and preferred
stock, bonds, and mutual fund shares, as
long as that method is consistently used.
For example, a value for a particular
month might be determined by the closing
price on the first or last trading days of the
month or an average of the closing prices
on the first and last trading days of the
month. Market quotations are considered
readily available if a security is any of the
following:
• Listed on the New York or American
Stock Exchange or any city or regional
exchange in which quotations appear on
a daily basis, including foreign securities
listed on a recognized foreign national or
regional exchange,
• Regularly traded in the national or
regional over-the-counter market for
which published quotations are
available, or
• Locally traded, for which quotations can
be readily obtained from established
brokerage firms.
If securities are held in trust for, or on
behalf of, a foundation by a bank or other
financial institution that values those
securities periodically using a computer
pricing system, a foundation may use that
system to determine the value of the
securities. The system must be
acceptable to the IRS for federal estate
tax purposes.
The foundation may reduce the fair
market value of securities only to the
extent that it can establish that the
securities could only be liquidated in a
reasonable period of time at a price less
than the fair market value because of:
• The size of the block of the securities,

-24-

• The fact that the securities held are
securities in a closely held corporation, or
• The fact that the sale of the securities
would result in a forced or distress sale.
Any reduction in value allowed under
these provisions may not be more than
10% of the fair market value (determined
without regard to any reduction in value).
Also, see Regulations sections
53.4942(a)-2(c)(4)(i)(b), (c), and (iv)(a).
Line 1b — Average of monthly cash
balances. Compute cash balances on a
monthly basis by averaging the amount of
cash on hand on the first and last days of
each month. Include all cash balances
and amounts that may be used for
charitable purposes (see line 4 below) or
set aside and taken as a qualifying
distribution (see Part XII).
Line 1c — Fair market value of all other
assets. The fair market value of assets
other than securities is determined
annually except as described below. The
valuation may be made by private
foundation employees or by any other
person even if that person is a
disqualified person. If the IRS accepts the
valuation, it is valid only for the tax year
for which it is made. A new valuation is
required for the next tax year.
5-year valuation. A written, certified,
and independent appraisal of the fair
market value of any real estate, including
any improvements, may be determined
on a 5-year basis by a qualified person.
The qualified person may not be a
disqualified person (see General
Instruction C) with respect to the private
foundation or an employee of the
foundation.
Commonly accepted valuation
methods must be used in making the
appraisal. A valuation based on
acceptable methods of valuing property
for federal estate tax purposes will be
considered acceptable.
The appraisal must include a closing
statement that, in the appraiser’s opinion,
the appraised assets were valued
according to valuation principles regularly
employed in making appraisals of such
property, using all reasonable valuation
methods. The foundation must keep a
copy of the independent appraisal for its
records. If a valuation is reasonable, the
foundation may use it for the tax year for
which the valuation is made and for each
of the 4 following tax years.
Any valuation of real estate by a
certified independent appraisal may be
replaced during the 5-year period by a
subsequent 5-year certified independent
appraisal or by an annual valuation as
described above. The most recent
valuation should be used to compute the
foundation’s minimum investment return.
If the valuation is made according to
the above rules, the IRS will continue to
accept it during the 5-year period for
which it applies even if the actual fair
market value of the property changes
during the period.
Form 990-PF Instructions

Page 25 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Valuation date. An asset required to
be valued annually may be valued as of
any day in the private foundation’s tax
year, provided the foundation values the
asset as of that date in all tax years.
However, a valuation of real estate
determined on a 5-year basis by a
certified, independent appraisal may be
made as of any day in the first tax year of
the foundation to which the valuation
applies.
Assets held for less than a tax year.
To determine the value of an asset held
less than 1 tax year, divide the number of
days the foundation held the asset by the
number of days in the tax year. Multiply
the result by the fair market value of the
asset.
Line 1e — Reduction claimed for
blockage or other factors. If the fair
market value of any securities, real estate
holdings, or other assets reported on lines
1a and 1c reflects a blockage discount,
marketability discount, or other reduction
from full fair market value because of the
size of the asset holding or any other
factor, enter on line 1e the aggregate
amount of the discounts claimed. Attach
an explanation that includes the following
information for each asset or group of
assets involved:
1. A description of the asset or asset
group (for example, 20,000 shares of
XYZ, Inc., common stock),
2. For securities, the percentage of
the total issued and outstanding securities
of the same class that is represented by
the foundation’s holding,
3. The fair market value of the asset
or asset group before any claimed
blockage discount or other reduction,
4. The amount of the discount
claimed, and
5. A statement that explains why the
claimed discount is appropriate in valuing
the asset or group of assets for section
4942 purposes.
In the case of securities, there are
certain limitations on the size of the
reduction in value that can be claimed.
See the instructions for Part X, line 1a.
Line 2 — Acquisition indebtedness.
Enter the total acquisition indebtedness
that applies to assets included on line 1.
For details, see section 514(c)(1).
Line 4 — Cash deemed held for
charitable activities. Foundations may
exclude from the assets used in the
minimum investment return computation
the reasonable cash balances necessary
to cover current administrative expenses
and other normal and current
disbursements directly connected with the
charitable, educational, or other similar
activities. The amount of cash that may
be excluded is generally 11/2% of the fair
market value of all assets (minus any
acquisition indebtedness) as computed in
Part X, line 3. However, if under the facts
and circumstances an amount larger than
the deemed amount is necessary to pay
expenses and disbursements, then you
may enter the larger amount instead of
Form 990-PF Instructions

11/2% of the fair market value on line 4. If
you use a larger amount, attach an
explanation.
Line 6 — Short tax periods. If the
foundation’s tax period is less than 12
months, determine the applicable
percentage by dividing the number of
days in the short tax period by 365 (or
366 in a leap year). Multiply the result by
5%. Then multiply the modified
percentage by the amount on line 5 and
enter the result on line 6.

Part XI—Distributable
Amount
If the organization is claiming status as a
private operating foundation described in
section 4942(j)(3) or (j)(5) or if it is a
foreign foundation that checked box D2
on page 1, check the box in the heading
for Part XI. You do not need to complete
this part. See the Part XIV instructions for
more details on private operating
foundations.
Section 4942(j)(5) foundations are
classified as private operating foundations
for purposes of section 4942 only if they
meet the requirements of Regulations
section 53.4942(b)-1(a)(2).
The distributable amount for 2008 is
the amount that the foundation must
distribute by the end of 2009 as qualifying
distributions to avoid the 30% tax on the
undistributed portion.
Line 4. Enter the total of recoveries of
amounts treated as qualifying
distributions for any year under section
4942(g). Include recoveries of part or all
(as applicable) of grants previously made;
proceeds from the sale or other
disposition of property whose cost was
treated as a qualifying distribution when
the property was acquired; and any
amount set aside under section 4942(g)
to the extent it is determined that this
amount is not necessary for the purposes
of the set-aside.
Line 6 — Deduction from distributable
amount. If the foundation was organized
before May 27, 1969, and its governing
instrument or any other instrument
continues to require the accumulation of
income after a judicial proceeding to
reform the instrument has terminated,
then the amount of the income required to
be accumulated must be subtracted from
the distributable amount beginning with
the first tax year after the tax year in
which the judicial proceeding was
terminated. (See the instructions for Part
VII-A, line 6.)

Part XII—Qualifying
Distributions
“Qualifying distributions” are amounts
spent or set aside for religious,
educational, or similar charitable
purposes. The total amount of qualifying
distributions for any year is used to
reduce the distributable amount for
specified years to arrive at the

-25-

undistributed income (if any) for
those years.
Line 1a — Expenses, contributions,
gifts, etc. Enter the amount from Part I,
column (d), line 26. However, if the
borrowed funds election applies, add the
total of the repayments during the year to
the amount from Part I, column (d), line
26, and enter it on line 1a.
Borrowed funds. If the foundation
borrowed money in a tax year beginning
before January 1, 1970, or later borrows
money under a written commitment
binding on December 31, 1969, the
foundation may elect to treat any
repayments of the loan principal after
December 31, 1969, as qualifying
distributions at the time of repayment,
rather than at the earlier time that the
borrowed funds were actually distributed,
only if:
1. The money is used to make
expenditures for a charitable or similar
purpose, and
2. Repayment on the loan did not start
until a year beginning after 1969.
On these loans, deduct any interest
payment from gross income to compute
adjusted net income in the year paid.
Election. To make this election,
attach a statement to Form 990-PF for the
first tax year beginning after 1969 in
which a repayment of loan principal is
made and for each tax year after that in
which any repayment of loan principal is
made. The statement should show:
• The lender’s name and address,
• The amount borrowed,
• The specific use of the borrowed funds,
and
• The private foundation’s election to
treat repayments of loan principal as
qualifying distributions.
Line 1b — Program-related
investments. Enter the total of the
“Amount” column from Part IX-B. See the
Part IX-B instructions for the definition of
program-related investments.
Line 3 — Amounts set aside. Amounts
set aside may be treated as qualifying
distributions only if the private foundation
establishes to the satisfaction of the IRS
that the amount will be paid for the
specific project within 60 months from the
date of the first set-aside and meets 1 or
2 below.
1. The project can be better
accomplished by a set-aside than by the
immediate payment of funds (suitability
test), or
2. The private foundation meets the
requirements of section 4942(g)(2)(B)(ii)
(cash distribution test).
Set-aside under item 1. For any
set-aside under 1 above, the private
foundation must apply for IRS approval by
the end of the tax year in which the
amount is set aside. Send the application
for approval to the:
Internal Revenue Service
TE/GE EO - Determinations

Page 26 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

P.O. Box 2508
Cincinnati, OH 45201
The application for approval must give
all of the following information:
• The nature and purposes of the specific
project and the amount of the set-aside
for which approval is requested,
• The amounts and approximate dates of
any planned additions to the set-aside
after its initial establishment,
• The reasons why the project can be
better accomplished by the set-aside than
by the immediate payment of funds,
• A detailed description of the project,
including estimated costs, sources of any
future funds expected to be used for
completion of the project, and the
location(s) (general or specific) of any
physical facilities to be acquired or
constructed as part of the project, and
• A statement of an appropriate
foundation manager that the amounts set
aside will actually be paid for the specific
project within a specified period of time
ending within 60 months after the date of
the first set-aside; or a statement
explaining why the period for paying the
amount set aside should be extended and
indicating the extension of time
requested. (Include in this statement the
reason why the proposed project could
not be divided into two or more projects
covering periods of no more than 60
months each.)
Set-aside under item 2. For any
set-aside under 2 above, the private
foundation must attach a schedule to its
annual information return showing how
the requirements are met. A schedule is
required for the year of the set-aside and
for each subsequent year until the
set-aside amount has been distributed.
See Regulations section
53.4942(a)-3(b)(7)(ii) for specific
requirements.
Line 5 — Reduced tax on investment
income under section 4940(e). If the
organization does not qualify for the 1%
tax under section 4940(e), enter zero.
See Parts V and VI of the instructions.

Part XIII—Undistributed
Income
If you checked box D2 on page 1, do not
fill in this part.
If the organization is a private
operating foundation for any of the years
shown in Part XIII, do not complete the
portions of Part XIII that apply to those
years. If there are excess qualifying
distributions for any tax year, do not carry
them over to a year in which the
organization is a private operating
foundation or to any later year. For
example, if a foundation made excess
qualifying distributions in 2006 and
became a private operating foundation in
2008, the excess qualifying distributions
from 2006 could be applied against the
distributable amount for 2007 but not to
any year after 2007.

The purpose of this part is to enable
the foundation to comply with the rules for
applying its qualifying distributions for the
year 2008. In applying the qualifying
distributions, there are three basic steps.
1. Reduce any undistributed income
for 2007 (but not below zero).
2. The organization may use any part
or all remaining qualifying distributions for
2008 to satisfy elections. For example, if
undistributed income remained for any
year before 2007, it could be reduced to
zero or, if the foundation wished, the
distributions could be treated as
distributions out of corpus.
3. If no elections are involved, apply
remaining qualifying distributions to the
2008 distributable amount on line 4d. If
the remaining qualifying distributions are
greater than the 2008 distributable
amount, the excess is treated as a
distribution out of corpus on line 4e.
If for any reason the 2008 qualifying
distributions do not reduce any 2007
undistributed income to zero, the amount
not distributed is subject to a 30% tax. If
the 2007 income remains undistributed at
the end of 2009, it could be subject again
to the 30% tax. Also, see section 4942(b)
for the circumstances under which a
second-tier tax could be imposed.
Line 1 — Distributable amount. Enter
the distributable amount for 2008 from
Part XI, line 7.
Line 2 — Undistributed income. Enter
the distributable amount for 2007 and
amounts for earlier years that remained
undistributed at the beginning of the
2008 tax year.
Line 2b. Enter the amount of
undistributed income for years before
2007.
Line 3 — Excess distributions
carryover to 2008. If the foundation has
made excess distributions out of corpus in
prior years, which have not been applied
in any year, enter the amount for each
year. Do not enter an amount for a
particular year if the organization was a
private operating foundation for any later
year.
Lines 3a through 3e. Enter the amount
of any excess distribution made on the
line for each year listed. Do not include
any amount that was applied against the
distributable amount of an earlier year or
that was already used to meet
pass-through distribution requirements.
(See the instructions for line 7.)
Line 3f. This amount can be applied
in 2008.
Line 4 — Qualifying distributions.
Enter the total amount of qualifying
distributions made in 2008 from Part XII,
line 4. The total of the amounts applied on
lines 4a through 4e is equal to the
qualifying distributions made in 2008.
Line 4a. The qualifying distributions for
2008 are first used to reduce any
undistributed income remaining from
2007. Enter only enough of the 2008

-26-

qualifying distributions to reduce the 2007
undistributed income to zero.
Lines 4b and 4c. If there are any 2008
qualifying distributions remaining after
reducing the 2007 undistributed income to
zero, one or more elections can be made
under Regulations section
53.4942(a)-3(d)(2) to apply all or part of
the remaining qualifying distributions to
any undistributed income remaining from
years before 2007 or to apply to corpus.
Elections. To make these elections,
the organization must file a statement
with the IRS or attach a statement, as
described in the above regulations
section, to Form 990-PF. An election
made by filing a separate statement with
the IRS must be made within the year for
which the election is made. Otherwise,
attach a statement to the Form 990-PF
filed for the year the election was made.
Where to enter. If the organization
elected to apply all or part of the
remaining amount to the undistributed
income remaining from years before
2007, enter the amount on line 4b.
If the organization elected to treat
those qualifying distributions as a
distribution out of corpus, enter the
amount on line 4c.
Entering an amount on line 4b or
4c without submitting the required
CAUTION statement is not considered a
valid election.
Line 4d. Treat as a distribution of the
distributable amount for 2008 any
qualifying distributions for 2008 that
remain after reducing the 2007
undistributed income to zero and after
electing to treat any part of the remaining
distributions as a distribution out of
corpus or as a distribution of a prior year’s
undistributed income. Enter only enough
of the remaining 2008 qualifying
distributions to reduce the 2008
distributable amount to zero.
Line 4e. Any 2008 qualifying
distributions remaining after reducing the
2008 distributable amount to zero should
be treated as an excess distribution out of
corpus. This amount may be carried over
and applied to later years.
Line 5 — Excess qualifying
distributions carryover applied to
2008. Enter any excess qualifying
distributions from line 3, which were
applied to 2008, in both the Corpus
column and the 2008 column. Apply the
oldest excess qualifying distributions first.
Thus, the organization will apply any
excess qualifying distributions carried
forward from 2003 before those from later
years.
Line 6a. Add lines 3f, 4c, and 4e.
Subtract line 5 from the total. Enter the
net total in the Corpus column.
Line 6c. Enter only the undistributed
income from 2006 and prior years for
which either a notice of deficiency under
section 6212(a) has been mailed for the
section 4942(a) first-tier tax, or on which
the first-tier tax has been assessed

!

Form 990-PF Instructions

Page 27 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

because the organization filed a Form
4720 for a tax year that began before
2007.
Lines 6d and 6e. These amounts are
taxable under the provisions of section
4942(a), except for any part that is due
solely to improper valuation of assets to
which the provisions of section 4942(a)(2)
are being applied (see Part VII-B, line 2b).
Report the taxable amount on Form 4720.
If the exception applies, attach an
explanation.
Line 6f. In the 2008 column, enter the
amount by which line 1 is more than the
total of lines 4d and 5. This is the
undistributed income for 2008. The
organization must distribute the amount
shown by the end of its 2009 tax year so
that it will not be liable for the tax on
undistributed income.
Line 7 — Distributions out of corpus for
2008 pass-through distributions.
1. If the foundation is the donee and
receives a contribution from another
private foundation, the donor foundation
may treat the contribution as a qualifying
distribution only if the donee foundation
makes a distribution equal to the full
amount of the contribution and the
distribution is a qualifying distribution that
is treated as a distribution of corpus. The
donee foundation must, no later than the
close of the first tax year after the tax year
in which it receives the contributions,
distribute an amount equal in value to the
contributions received in the prior tax year
and have no remaining undistributed
income for the prior year. For example, if
private foundation X received $1,000 in
tax year 2007 from foundation Y,
foundation X would have to distribute the
$1,000 as a qualifying distribution out of
corpus by the end of 2008 and have no
remaining undistributed income for 2007.
2. If a private foundation receives a
contribution from an individual or a
corporation and the individual is seeking
the 50% contribution base limit on
deductions for the tax year (or the
individual or corporation is not applying
the limit imposed on deductions for
contributions to the foundation of capital
gain property), the foundation must
comply with certain distribution
requirements.
By the 15th day of the 3rd month after
the end of the tax year in which the
foundation received the contributions, the
donee foundation must distribute as
qualifying distributions out of corpus:
a. An amount equal to 100% of all
contributions received during the year in
order for the individual contributor to
receive the benefit of the 50% limit on
deductions, and
b. Distribute all contributions of
property only so that the individual or
corporation making the contribution is not
subject to the section 170(e)(1)(B)(ii)
limitations.
If the organization is applying excess
distributions from prior years (for
instance, any part of the amount in Part
Form 990-PF Instructions

XIII, line 3f) to satisfy the distribution
requirements of section 170(b)(1)(F) or
4942(g)(3), it must make the election
under Regulations section
53.4942(a)-3(c)(2). Also, see Regulations
section 1.170A-9(h)(2).
Enter on line 7 the total distributions
out of corpus made to satisfy the
restrictions on amounts received from
donors described above.
Line 8 — Outdated excess distributions
carryover. Because of the 5-year
carryover limitation under section
4942(i)(2), the organization must reduce
any excess distributions carryover by any
amounts from 2003 that were not applied
in 2008.
Line 9 — Excess distributions
carryover to 2009. Enter the amount by
which line 6a is more than the total of
lines 7 and 8. This is the amount the
organization may apply to 2009 and
following years. Line 9 can never be less
than zero.
Line 10 — Analysis of line 9. In the
space provided for each year, enter the
amount of excess distributions carryover
from that year that has not been applied
as of the end of the 2008 tax year. If there
is an amount on the line for 2004, it must
be applied by the end of the 2009 tax
year since the 5-year carryover period for
2004 ends in 2009.

Part XIV—Private
Operating Foundations
All organizations that claim status as
private operating foundations under
section 4942(j)(3) or (5) for 2008 must
complete Part XIV.
Certain elderly care facilities (section
4942(j)(5)). For purposes of section
4942 only, certain elderly care facilities
may be classified as private operating
foundations. To be so classified, they
must be operated and maintained for the
principal purpose explained in section
4942(j)(5) and also meet the endowment
test described below.
If the foundation is a section
4942(j)(5) organization, complete only
lines 1a, 1b, 2c, 2d, 2e, and 3b. Enter
“N/A” on all other lines in the Total column
for Part XIV.
Private operating foundation (section
4942(j)(3)). The term “private operating
foundation” means any private foundation
that spends at least 85% of the smaller of
its adjusted net income or its minimum
investment return directly for the active
conduct of the exempt purpose or
functions for which the foundation is
organized and operated (the Income
Test) and that also meets one of the three
tests below.
1. Assets test. 65% or more of the
foundation’s assets are devoted directly
to those activities or functionally related
businesses, or both. Or 65% or more of
the foundation’s assets are stock of a
corporation that is controlled by the
foundation, and substantially all of the

-27-

assets of the corporation are devoted to
those activities or functionally related
businesses.
2. Endowment test. The foundation
normally makes qualifying distributions
directly for the active conduct of the
exempt purpose or functions for which it
is organized and operated in an amount
that is two-thirds or more of its minimum
investment return.
3. Support test. The foundation
normally receives 85% or more of its
support (other than gross investment
income as defined in section 509(e)) from
the public and from five or more exempt
organizations that are not described in
section 4946(a)(1)(H) with respect to
each other or the recipient foundation.
Not more than 25% of the support (other
than gross investment income) normally
may be received from any one of the
exempt organizations and not more than
one-half of the support normally may be
received from gross investment income.
See regulations under section 4942 for
the meaning of “directly for the active
conduct” of exempt activities for purposes
of these tests.
Complying with these tests. A
foundation may meet the income test and
either the assets, endowment, or support
test by satisfying the tests for any 3 years
during a 4-year period consisting of the
tax year in question and the 3
immediately preceding tax years. It may
also meet the tests based on the total of
all related amounts of income or assets
held, received, or distributed during that
4-year period. A foundation may not use
one method for satisfying the income test
and another for satisfying one of the three
alternative tests. Thus, if a foundation
meets the income test on the
3-out-of-4-year basis for a particular tax
year, it may not use the 4-year
aggregation method for meeting one of
the three alternative tests for that same
year.
In completing line 3c(3) of Part XIV
under the aggregation method, the largest
amount of support from an exempt
organization will be based on the total
amount received for the 4-year period
from any one exempt organization.
A new private foundation must use the
aggregation method to satisfy the tests for
its first tax year in order to be treated as a
private operating foundation from the
beginning of that year. It must continue to
use the aggregation method for its 2nd
and 3rd tax years to maintain its status for
those years.

Part XV—Supplementary
Information
Complete this part only if the foundation
had assets of $5,000 or more at any time
during the year. This part does not apply
to a foreign foundation that during its
entire period of existence received
substantially all (85% or more) of its
support (other than gross investment

Page 28 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

income) from sources outside the
United States.
Line 2. In the space provided (or in an
attachment, if necessary), furnish the
required information about the
organization’s grant, scholarship,
fellowship, loan, etc., programs. In
addition to restrictions or limitations on
awards by geographical areas, charitable
fields, and kinds of recipients, indicate
any specific dollar limitations or other
restrictions applicable to each type of
award the organization makes. This
information benefits the grant seeker and
the foundation. The grant seekers will be
aware of the grant eligibility requirements
and the foundation should receive only
applications that adhere to these grant
application requirements.
If the foundation only makes
contributions to preselected charitable
organizations and does not accept
unsolicited applications for funds, check
the box on line 2.
Line 3. If necessary, attach a schedule
for lines 3a and 3b that lists separately
amounts given to individuals and amounts
given to organizations.
Purpose of grant or contribution.
Entries under this column should reflect
the grant’s or contribution’s purpose and
should be in greater detail than merely
classifying them as charitable,
educational, religious, or scientific
activities.
For example, use an identification
such as payments:
• For nursing service,
• For fellowships, or
• For assistance to indigent families.
Entries such as “grant” or
“contribution” under the column
CAUTION titled Purpose of grant or
contribution are unacceptable.

!

Line 3a — Paid during year. List all
contributions, grants, etc., actually paid
during the year, including grants or
contributions that are not qualifying
distributions under section 4942(g).
Include current year payments of
set-asides treated as qualifying
distributions in the current tax year or any
prior year.
Line 3b — Approved for future
payment. List all contributions, grants,
etc., approved during the year but not
paid by the end of the year, including the
unpaid portion of any current year
set-aside.
Because Form 990-PF is
disclosed to the public, do not
CAUTION report personal information about
grantees that is not required and could be
used for identity theft purposes, such as a
social security number, taxpayer
identification number, or bank account
information. See General Instruction Q for
more information about public inspection
and disclosure requirements.

!

Part XVI-A—Analysis of
Income-Producing
Activities
In Part XVI-A, analyze revenue items that
are also entered in Part I, column (a),
lines 3 – 11, and on line 5b. Contributions
reported on line 1 of Part I are not entered
in Part XVI-A. For information on
unrelated business income, see the
Instructions for Form 990-T and Pub. 598.
Columns (a) and (c). In column (a),
enter a 6-digit business code, from the list
in the Instructions for Form 990-T, to
identify any income reported in column
(b). In column (c), enter an exclusion
code, from the list on page 31, to identify
any income reported in column (d). If
more than one exclusion code is
applicable to a particular revenue item,
select the lowest numbered exclusion
code that applies. Also, if nontaxable
revenues from several sources are
reportable on the same line in column (d),
use the exclusion code that applies to the
largest revenue source.
Columns (b), (d), and (e). For amounts
reported in Part XVI-A on lines 1 – 11,
enter in column (b) any income earned
that is unrelated business income (see
section 512). In column (d), enter any
income earned that is excluded from the
computation of unrelated business
taxable income by Code section 512, 513,
or 514. In column (e), enter any related or
exempt function income; that is, any
income earned that is related to the
organization’s purpose or function which
constitutes the basis for the organization’s
exemption.
Also enter in column (e) any income
specifically excluded from gross income
other than by Code section 512, 513, or
514, such as interest on state and local
bonds that is excluded from tax by section
103. You must explain in Part XVI-B any
amount shown in column (e).
Comparing Part XVI-A with Part I. The
sum of the amounts entered on each line
of lines 1 – 11 of columns (b), (d), and (e)
of Part XVI-A should equal corresponding
amounts entered on lines 3 – 11 of Part I,
column (a), and on line 5b as shown
below:
Amounts in
Part XVI-A
on line . . .
1a – g .
2. . . .
3. . . .
4. . . .
5 and 6

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

Correspond to
Amounts in Part I,
column (a), line . . .
.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

7. . . . . . . . . . . . . . . . . .
8. . . . . . . . . . . . . . . . . .
9. . . . . . . . . . . . . . . . . .

10 . . . . . . . . . . . . . . . . .
11a – e . . . . . . . . . . . . . .

-28-

11
11
3
4
5b (description
column)
11
6
11 minus any special
event expenses
included on lines 13
through 23 of Part I,
column (a)
10c
11

Line 1 — Program service revenue. On
lines 1a – g, list each revenue-producing
program service activity of the
organization. For each program service
activity listed, enter the gross revenue
earned for each activity, as well as
identifying business and exclusion codes,
in the appropriate columns. For line 1g,
enter amounts that are payments for
services rendered to governmental units.
Do not include governmental grants that
are reportable on line 1 of Part I.
Report the total of lines 1a – g on line
11 of Part I, along with any other income
reportable on line 11.
Program services are mainly those
activities that the reporting organization
was created to conduct and that, along
with any activities begun later, form the
basis of the organization’s current
exemption from tax.
Program services can also include the
organization’s unrelated trade or business
activities. Program service revenue also
includes income from program-related
investments (such as interest earned on
scholarship loans) as defined in the
instructions for Part IX-B.
Line 11. On lines 11a – e, list each
“Other revenue” activity not reported on
lines 1 through 10. Report the sum of the
amounts entered for lines 11a – e,
columns (b), (d), and (e), on line 11,
Part I.
Line 13. On line 13, enter the total of
columns (b), (d), and (e) of line 12.
You may use the following worksheet
to verify your calculations.
Line 13,

Part XVI-A . . . . . . . . . . .

Minus:

Line 5b, Part I . . . . . . . . .
Note: If line 5b, Part I,
reflects a loss, add that
amount here instead of
subtracting.

Plus:

Line 1, Part I . . . . . . . . . .

Plus:

Line 5a, Part I . . . . . . . . .

Plus:

Expenses of special events
deducted in computing line
9 of Part XVI-A . . . . . . . .

Equal:

Line 12, column (a), of Part I

Part XVI-B—Relationship
of Activities to the
Accomplishment of
Exempt Purposes
To explain how each amount in column
(e) of Part XVI-A was related or exempt
function income, show the line number of
the amount in column (e) and give a brief
description of how each activity reported
in column (e) contributed importantly to
the accomplishment of the organization’s
exempt purposes (other than by providing
funds for such purposes). Activities that
generate exempt-function income are
activities that form the basis of the
organization’s exemption from tax.
Form 990-PF Instructions

Page 29 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Also, explain any income entered in
column (e) that is specifically excluded
from gross income other than by Code
section 512, 513, or 514. If no amount is
entered in column (e), do not complete
Part XVI-B.
Example. M, a performing arts
association, is primarily supported by
endowment funds. It raises revenue by
charging admissions to its performances.
These performances are the primary
means by which the organization
accomplishes its cultural and educational
purposes.
M reported admissions income in
column (e) of Part XVI-A and explained in
Part XVI-B that these performances are
the primary means by which it
accomplishes its cultural and educational
purposes.
Because M also reported interest from
state bonds in column (e) of Part XVI-A,
M explained in Part XVI-B that such
interest was excluded from gross income
by Code section 103.

Part XVII—Information
Regarding Transfers To
and Transactions and
Relationships With
Noncharitable Exempt
Organizations
Part XVII is used to report direct and
indirect transfers to (line 1a) and direct
and indirect transactions with (line 1b)
and relationships with (line 2) any other
noncharitable exempt organization. A
“noncharitable exempt organization” is an
organization exempt under section 501(c)
(that is not exempt under section
501(c)(3)), or a political organization
described in section 527.
For purposes of these instructions, the
section 501(c)(3) organization completing
Part XVII is referred to as the “reporting
organization.”
A noncharitable exempt organization is
“related to or affiliated with” the reporting
organization if either:
• The two organizations share some
element of common control, or
• A historic and continuing relationship
exists between the two organizations.
A noncharitable exempt organization is
unrelated to the reporting organization if:
• The two organizations share no
element of common control, and
• A historic and continuing relationship
does not exist between the two
organizations.
An “element of common control” is
present when one or more of the officers,
directors, or trustees of one organization
are elected or appointed by the officers,
directors, trustees, or members of the
other. An element of common control is
also present when more than 25% of the
officers, directors, or trustees of one
organization serve as officers, directors,
or trustees of the other organization.
Form 990-PF Instructions

A “historic and continuing relationship”
exists when two organizations participate
in a joint effort to achieve one or more
common purposes on a continuous or
recurring basis rather than on the basis of
one or more isolated transactions or
activities. Such a relationship also exists
when two organizations share facilities,
equipment, or paid personnel during the
year, regardless of the length of time the
arrangement is in effect.
Line 1 — Reporting of certain transfers
and transactions. Generally, report on
line 1 any transfer to or transaction with a
noncharitable exempt organization even if
the transfer or transaction constitutes the
only connection with the noncharitable
exempt organization.
Related organizations. If the
noncharitable exempt organization is
related to or affiliated with the reporting
organization, report all direct and indirect
transfers and transactions except for
contributions and grants it received.
Unrelated organizations. All
transfers to an unrelated noncharitable
exempt organization must be reported on
line 1a. All transactions between the
reporting organization and an unrelated
noncharitable exempt organization must
be shown on line 1b unless they meet the
exception in the specific instructions for
line 1b.
Line 1a — Transfers. Answer “Yes” to
lines 1a(1) and 1a(2) if the reporting
organization made any direct or indirect
transfers of any value to a noncharitable
exempt organization.
A “transfer” is any transaction or
arrangement whereby one organization
transfers something of value (cash, other
assets, services, use of property, etc.) to
another organization without receiving
something of more than nominal value in
return. Contributions, gifts, and grants are
examples of transfers.
If the only transfers between the two
organizations were contributions and
grants made by the noncharitable exempt
organization to the reporting organization,
answer “No.”
Line 1b — Other transactions. Answer
“Yes” for any transaction described on
line 1b(1) – (6), regardless of its amount, if
it is with a related or affiliated
organization.
Unrelated organizations. Answer
“Yes” for any transaction between the
reporting organization and an unrelated
noncharitable exempt organization,
regardless of its amount, if the reporting
organization received less than adequate
consideration. There is adequate
consideration when the fair market value
of the goods and other assets or services
furnished by the reporting organization is
not more than the fair market value of the
goods and other assets or services
received from the unrelated noncharitable
exempt organization. The exception
described below does not apply to
transactions for less than adequate
consideration.

-29-

Answer “Yes” for any transaction
between the reporting organization and
an unrelated noncharitable exempt
organization if the “amount involved” is
more than $500. The “amount involved” is
the fair market value of the goods,
services, or other assets furnished by the
reporting organization.
Exception. If a transaction with an
unrelated noncharitable exempt
organization was for adequate
consideration and the amount involved
was $500 or less, answer “No” for that
transaction.
Line 1b(3). Answer “Yes” for
transactions in which the reporting
organization was either the lessor or the
lessee.
Line 1b(4). Answer “Yes” if either
organization reimbursed expenses
incurred by the other.
Line 1b(5). Answer “Yes” if either
organization made loans to the other or if
the reporting organization guaranteed the
other’s loans.
Line 1b(6). Answer “Yes” if either
organization performed services or
membership or fundraising solicitations
for the other.
Line 1c. Complete line 1c regardless of
whether the noncharitable exempt
organization is related to or closely
affiliated with the reporting organization.
For purposes of this line, “facilities”
includes office space and any other land,
building, or structure whether owned or
leased by, or provided free of charge to,
the reporting organization or the
noncharitable exempt organization.
Line 1d. Use this schedule to describe
the transfers and transactions for which
“Yes” was entered on lines 1a – c above.
You must describe each transfer or
transaction for which the answer was
“Yes.” You may combine all of the cash
transfers (line 1a(1)) to each organization
into a single entry. Otherwise, make a
separate entry for each transfer or
transaction.
Column (a). For each entry, enter the
line number from line 1a – c. For example,
if the answer was “Yes” to line 1b(3),
enter “b(3)” in column (a).
Column (d). If you need more space,
write “see attached” in column (d) and
use an attached sheet for the description.
If making more than one entry on line 1d,
specify on the attached sheet which
transfer or transaction you are describing.
Line 2 — Reporting of certain
relationships. Enter on line 2 each
noncharitable exempt organization that
the reporting organization is related to or
affiliated with, as defined above. If the
control factor or the historic and
continuing relationship factor (or both) is
present at any time during the year,
identify the organization on line 2 even if
neither factor is present at the end of
the year.
Do not enter unrelated noncharitable
exempt organizations on line 2 even if

Page 30 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

transfers to or transactions with those
organizations were entered on line 1. For
example, if a one-time transfer to an
unrelated noncharitable exempt
organization was entered on line 1a(2),
do not enter the organization on line 2.
Column (b). Enter the exempt
category of the organization; for example,
“501(c)(4).”
Column (c). In most cases, a simple
description, such as “common directors”
or “auxiliary of reporting organization” will
be sufficient. If you need more space,
write “see attached” in column (c) and use
an attached sheet to describe the
relationship. If you are entering more than
one organization on line 2, identify which
organization you are describing on the
attached sheet.

Signature
The return must be signed by the
president, vice president, treasurer,
assistant treasurer, chief accounting
officer, or other corporate officer (such as
tax officer) who is authorized to sign. A
receiver, trustee, or assignee must sign
any return that he or she is required to file
for a corporation. If the return is filed for a
trust, it must be signed by the authorized
trustee or trustees. Sign and date the
form and fill in the signer’s title.
If an officer or employee of the
organization prepares the return, the Paid
Preparer’s space should remain blank. If
someone prepares the return without
charge, that person should not sign the
return.
Generally, anyone who is paid to
prepare the organization’s tax return must
sign the return and fill in the Paid
Preparer’s Use Only area.
If you have questions about whether a
preparer is required to sign the return,
please contact an IRS office.

The paid preparer must complete the
required preparer information and:
• Sign it in the space provided for the
preparer’s signature (a facsimile signature
is acceptable), and
• Give the organization a copy of the
return in addition to the copy to be filed
with the IRS.
If the box for question 15 of Part VII-A
is checked (section 4947(a)(1)
nonexempt charitable trust filing Form
990-PF instead of Form 1041), the paid
preparer must also enter his or her social
security number or, if applicable, PTIN
and employer identification number in the
spaces provided. Otherwise, do not enter
the preparer’s social security or employer
identification number.
Caution. The IRS is not
authorized to redact the paid
CAUTION preparer’s SSN if such SSN is
entered on the paid preparer’s block.
Because Form 990-PF is a publicly
disclosable document, any information
entered on this block will be publicly
disclosed (see General Instruction Q).
Accordingly, any paid preparer whose
identifying number must be listed on Form
990-PF may wish to apply for and obtain
a PTIN using Form W-7P, Application for
Preparer Tax Indentification Number.

!

Privacy Act and Paperwork Reduction
Act Notice. We ask for the information
on this form to carry out the Internal
Revenue laws of the United States. You
are required to give us the information.
We need it to ensure that you are
complying with these laws and to allow us
to figure and collect the right amount of
tax. Section 6109 requires return

-30-

preparers to provide their identifying
numbers on the return.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. The rules
governing the confidentiality of Form
990-PF are covered in Code
section 6104.
The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated average
time is:
Recordkeeping . . . . . . . .

140 hr., 37 min.

Learning about the law or
the form . . . . . . . . . . . . .

28 hr., 15 min.

Preparing the form . . . . . .

33 hr., 39 min.

Copying, assembling, and
sending the form to the IRS

32 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. You
can write to the Internal Revenue Service,
Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution
Ave. NW, IR-6526, Washington, DC
20224. Do not send the tax form to this
address. Instead, see When, Where, and
How To File on page 5.

Form 990-PF Instructions

Page 31 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Exclusion Codes
General Exceptions
01— Income from an activity that is not
regularly carried on (section 512(a)(1))
02— Income from an activity in which labor is
a material income-producing factor and
substantially all (at least 85%) of the work
is performed with unpaid labor (section
513(a)(1))
03— Section 501(c)(3) organization— Income
from an activity carried on primarily for
the convenience of the organization’s
members, students, patients, visitors,
officers, or employees (hospital parking
lot or museum cafeteria, for example)
(section 513(a)(2))
04— Section 501(c)(4) local association of
employees organized before May 27,
1969— Income from the sale of
work-related clothes or equipment and
items normally sold through vending
machines; food dispensing facilities; or
snack bars for the convenience of
association members at their usual places
of employment (section 513(a)(2))
05— Income from the sale of merchandise,
substantially all of which (at least 85%)
was donated to the organization (section
513(a)(3))

Specific Exceptions
06— Section 501(c)(3), (4), or (5) organization
conducting an agricultural or educational
fair or exposition— Qualified public
entertainment activity income (section
513(d)(2))
07— Section 501(c)(3), (4), (5), or (6)
organization—Qualified convention and
trade show activity income (section
513(d)(3))
08— Income from hospital services described
in section 513(e)
09— Income from noncommercial bingo games
that do not violate state or local law
(section 513(f))
10— Income from games of chance conducted
by an organization in North Dakota
(section 311 of the Deficit Reduction Act
of 1984, as amended)
11— Section 501(c)(12) organization— Qualified
pole rental income (section 513(g)) and/or
member income (described in section
501(c)(12)(H))
12— Income from the distribution of low-cost
articles in connection with the solicitation
of charitable contributions (section 513(h))
13— Income from the exchange or rental of
membership or donor list with an
organization eligible to receive charitable
contributions by a section 501(c)(3)
organization; by a war veterans’
organization; or an auxiliary unit or society
of, or trust or foundation for, a war
veterans’ post or organization (section
513(h))

Modifications and Exclusions
14— Dividends, interest, payments with
respect to securities loans, annuities,
income from notional principal contracts,
other substantially similar income from
ordinary and routine investments, and
loan commitment fees, excluded by
section 512(b)(1)
15— Royalty income excluded by section
512(b)(2)
16— Real property rental income that does not
depend on the income or profits derived
by the person leasing the property and is
excluded by section 512 (b)(3)

Form 990-PF Instructions

17— Rent from personal property leased with
real property and incidental (10% or less)
in relation to the combined income from
the real and personal property (section
512(b)(3))
18— Gain or loss from the sale of investments
and other non-inventory property and
from certain property acquired from
financial institutions that are in
conservatorship or receivership (sections
512(b)(5) and (16)(A))
19— Gain or loss from the lapse or termination
of options to buy or sell securities or real
property, and on options and from the
forfeiture of good-faith deposits for the
purchase, sale, or lease of investment real
estate (section 512(b)(5))
20— Income from research for the United
States; its agencies or instrumentalities;
or any state or political subdivision
(section 512(b)(7))
21— Income from research conducted by a
college, university, or hospital (section
512(b)(8))
22— Income from research conducted by an
organization whose primary activity is
conducting fundamental research, the
results of which are freely available to the
general public (section 512(b)(9))
23— Income from services provided under
license issued by a federal regulatory
agency and conducted by a religious
order or school operated by a religious
order, but only if the trade or business
has been carried on by the organization
since before May 27, 1959 (section 512
(b)(15))

Debt-Financed Income
30—

31—

32—
33—

34—

35—

36—
37—

Foreign Organizations
24— Foreign organizations only—Income from
a trade or business NOT conducted in the
United States and NOT derived from
United States sources (patrons) (section
512(a)(2))

Social Clubs and VEBAs
25— Section 501(c)(7), (9), or (17)
organization—Non-exempt function
income set aside for a charitable, etc.,
purpose specified in section 170(c)(4)
(section 512(a)(3)(B)(i))
26— Section 501(c)(7), (9), or (17)
organization—Proceeds from the sale of
exempt function property that was or will
be timely reinvested in similar property
(section 512(a)(3)(D))
27— Section 501(c)(9) or (17) organization—
Nonfunction income set aside for the
payment of life, sick, accident, or
other benefits (section 512(a)(3)(B)(ii))

38—

Special Rules
39—

Veterans’ Organizations
28— Section 501(c)(19) organization—
Payments for life, sick, accident, or health
insurance for members or their
dependents that are set aside for the
payment of such insurance benefits or for
a charitable, etc., purpose specified in
section 170(c)(4) (section 512(a)(4))
29— Section 501(c)(19) organization— Income
from an insurance set-aside (see code 28
above) that is set aside for payment of
insurance benefits or for a charitable, etc.,
purpose specified in section 170(c)(4)
(Regs. 1.512(a)–4(b)(2))

Income exempt from debt-financed
(section 514) provisions because at least
85% of the use of the property is for the
organization’s exempt purposes. (Note:
This code is only for income from the
15% or less non-exempt purpose use.)
(section 514(b)(1)(A))
Gross income from mortgaged property
used in research activities described in
section 512(b)(7), (8), or (9) (section
514(b)(1)(C))
Gross income from mortgaged property
used in any activity described in section
513(a)(1), (2), or (3) (section 514(b)(1)(D))
Income from mortgaged property
(neighborhood land) acquired for exempt
purpose use within 10 years (section
514(b)(3))
Income from mortgaged property
acquired by bequest or devise (applies to
income received within 10 years from the
date of acquisition) (section 514(c)(2)(B))
Income from mortgaged property
acquired by gift where the mortgage was
placed on the property more than 5 years
previously and the property was held by
the donor for more than 5 years (applies
to income received within 10 years from
the date of gift (section 514(c)(2)(B))
Income from property received in return
for the obligation to pay an annuity
described in section 514(c)(5)
Income from mortgaged property that
provides housing to low and moderate
income persons, to the extent the
mortgage is insured by the Federal
Housing Administration (section 514(c)(6)).
(Note: In many cases, this would be
exempt function income reportable in
column (e). It would not be so in the case
of a section 501(c)(5) or (6) organization,
for example, that acquired the housing as
an investment or as a charitable activity.)
Income from mortgaged real property
owned by: a school described in section
170(b)(1)(A)(ii); a section 509(a)(3) affiliated
support organization of such a school; a
section 501(c)(25) organization; or by a
partnership in which any of the above
organizations owns an interest if the
requirements of section 514(c)(9)(B)(vi) are
met (section 514(c)(9))

40—

Section 501(c)(5) organization—Farm
income used to finance the operation and
maintenance of a retirement home,
hospital, or similar facility operated by the
organization for its members on property
adjacent to the farm land (section
1951(b)(8)(B) of Public Law 94-455)
Annual dues, not exceeding $139 (subject
to inflation), paid to a section 501(c)(5)
agricultural or horticultural organization
(section 512(d))

Trade or Business
41—

Gross income from an unrelated activity
that is regularly carried on but, in light of
continuous losses sustained over a
number of tax periods, cannot be
regarded as being conducted with the
motive to make a profit (not a trade or
business)

Other
42—
43—

-31-

Receipt of qualified sponsorship
payments described in section 513(i)
Exclusion of any gain or loss from the
qualified sale, exchange, or other
disposition of any qualifying brownfield
property (section 512(b)(19))

Page 32 of 32

Instructions for Form 990-PF

9:12 - 30-DEC-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Index

A
Accounting methods . . . . . . . . . . . 5
Accounting period . . . . . . . . . . . . . 5
Adjusted net income . . . . . . . . . . 11
Amended return . . . . . . . . . . . . 5, 19
Amended returns, state . . . . . . . . 4
Annual return:
Amended . . . . . . . . . . . . . . . . . . . 5
Copies to state officials . . . . . . 4
Extension for filing . . . . . . . . . . . 5
Failure to file timely or
completely . . . . . . . . . . . . . . . . 5
Purpose of form . . . . . . . . . . . . . 2
State reporting
requirements . . . . . . . . . . . . . . 4
Termination . . . . . . . . . . . . . . . . 10
When to file . . . . . . . . . . . . . . . . . 5
Where to file . . . . . . . . . . . . . . . . 5
Which parts to complete . . . . . 2
Assets test . . . . . . . . . . . . . . . . . . . 27
Attachments . . . . . . . . . . . . . . . . . 10
B
Business meals . . . . . . . . . . . . . . 14
C
Capital gains and losses:
Basis . . . . . . . . . . . . . . . . . . . . . . 17
Gains . . . . . . . . . . . . . . . . . . . . . . 17
Losses . . . . . . . . . . . . . . . . . . . . 18
Charitable donation:
Substantiation of . . . . . . . . . . . 12
Children . . . . . . . . . . . . . . . . . . . . . . 1
Contributions . . . . . . . . . . . . . . . . . 14
Copy of old return . . . . . . . . . . . . . 5
Currency . . . . . . . . . . . . . . . . . . . . . 10
D
Definitions . . . . . . . . . . . . . . . . . . . . 2
Disqualified person . . . . . . . . . . 2
Distributable amount . . . . . . . . 25
Foundation manager . . . . . . . . 2
Gross investment
income . . . . . . . . . . . . . . . . . . 11
Net investment income . . . . . 11
Noncharitable exempt
organization . . . . . . . . . . . . . 29
Nonexempt charitable
trust . . . . . . . . . . . . . . . . . . . . . . 2
Nonoperating private
foundation . . . . . . . . . . . . . . . . 2
Private foundation . . . . . . . . . . . 2

Private operating
foundation . . . . . . . . . . . . . . . . 2
Program-related
investment . . . . . . . . . . . . . . . 23
Qualifying distributions . . . . . . 25
Significant disposition . . . . . . . . 9
Substantial contraction . . . . . . 9
Taxable private
foundation . . . . . . . . . . . . . . . . 2
Depository methods . . . . . . . . . . . 6
Electronic deposit . . . . . . . . . . . 6
Tax deposit coupon . . . . . . . . . 6
Depreciation . . . . . . . . . . . . . . . . . 14
Disqualified person . . . . . . . . . . . . 2
Disregarded entity . . . . . . . . . . 2, 22
Dissolution . . . . . . . . . . . . . . . . . . . . 9
Distributable amount . . . . . . . . . . 25
E
EFTPS . . . . . . . . . . . . . . . . . . . . . . . 6
Elections . . . . . . . . . . 18, 25, 26, 27
Electronic deposit . . . . . . . . . . . . . 6
Endowment test . . . . . . . . . . . . . . 27
Estimated tax . . . . . . . . . . . . . . . . . 6
Penalty . . . . . . . . . . . . . . . . . . . . . 6
Excise tax based on investment
income:
Domestic exempt private
foundations . . . . . . . . . . . . . . 18
Domestic taxable private
foundations and section
4947(a)(1) nonexempt
charitable trusts . . . . . . . . . . 18
Foreign organizations . . . . . . . 18
Exempt operating foundation
qualification . . . . . . . . . . . . . . . . 18
Extension for filing . . . . . . . . . . . . . 5
F
Failure to file timely or
completely . . . . . . . . . . . . . . . . . . 5
Failure to pay tax when due . . . . 6
Federal tax deposit coupon . . . . 6
Filing extension . . . . . . . . . . . . . . . 5
Foreign organizations . . . . . . 9, 10,
18
Foundation manager . . . . . . . . . . . 2
G
Gifts . . . . . . . . . . . . . . . . . . . . . . . . .
Grants . . . . . . . . . . . . . . . . . . . . . . .
Gross investment income . . . . .
Gross profit . . . . . . . . . . . . . . . . . .

14
14
11
13

Gross receipts . . . . . . . . . . . . . . . . . 6
I
Income test . . . . . . . . . . . . . . . . . . 27
Incomplete return:
How to avoid . . . . . . . . . . . . . . . . 2
Penalties . . . . . . . . . . . . . . . . . . . 5
Inventory . . . . . . . . . . . . . . . . . . . . . 13
L
Large organization . . . . . . . . . . . . . 6
Liquidation . . . . . . . . . . . . . . . . . . . . 9
M
Minimum investment
return . . . . . . . . . . . . . . . . . . . . . . 24
Short tax year . . . . . . . . . . . . . . 25
N
Net investment income . . . . 11, 15
Business meals . . . . . . . . . . . . 14
Noncharitable exempt
organization . . . . . . . . . . . . . . . . 29
Nonexempt charitable trust . . . . . 2,
6, 20
Nonoperating private
foundation . . . . . . . . . . . 2, 12, 13
O
Other expenses . . . . . . . . . . . . . . 14
P
Penalties:
Against responsible
person . . . . . . . . . . . . . . . . . . . . 6
Estimated tax . . . . . . . . . . . . . . . 6
Failure to disclose quid pro quo
contributions . . . . . . . . . . . . . 12
Failure to file timely or
completely . . . . . . . . . . . . . . . . 5
Failure to pay timely . . . . . . . . . 6
Photographs of missing
children . . . . . . . . . . . . . . . . . . . . . 1
Private foundation . . . . . . . . . . . . . 2
Private operating
foundation . . . . . . . . . . . 2, 11, 27
Program services . . . . . . . . . . . . . 28
Program-related
investment . . . . . . . . . . . . . 23, 25
Public inspection . . . . . . . . . . . . . 20
Relief . . . . . . . . . . . . . . . . . . . . . . . 9

-32-

Q
Qualifying distributions . . . . . . . 12,
13, 25
Amounts set aside . . . . . . . . . . 25
Qualifying distributions (see the
instructions for Part XII for an
explanation of qualifying
distributions) for any
year. . . . . . . . . . . . . . . . . . . . . . . 13
R
Rounding . . . . . . . . . . . . . . . . . . . . 10
S
Schedule B (Form 990, 990 – EZ,
or 990 – PF) . . . . . . . . . . . . . . . . 12
Self-dealing . . . . . . . . . . . . . . . . . . 20
Signature . . . . . . . . . . . . . . . . . . . . 30
Significant disposition . . . . . . . . . . 9
Significant involvement . . . . . . . 23
Special payment option . . . . . . . . 7
State reporting
requirements . . . . . . . . . . . . . . . . 4
Amended returns . . . . . . . . . . . . 4
Substantial contraction . . . . . . . . . 9
Substantial contributor . . . . . . . . 19
Support test . . . . . . . . . . . . . . . . . . 27
T
Tax payment methods:
Depository method . . . . . . . . . . 6
Special payment option . . . . . . 7
Taxable private foundation . . . . . 2,
6
Termination . . . . . . . . . . . . 9, 10, 11
Annual return . . . . . . . . . . . . . . 10
Special rules . . . . . . . . . . . 10, 30
Travel . . . . . . . . . . . . . . . . . . . . . . . 14
W
When to file . . . . . . . . . . . . . . . . . . .
Extension . . . . . . . . . . . . . . . . . . .
Where to file . . . . . . . . . . . . . . . . . .
Which parts to complete . . . . . . .
Who must file . . . . . . . . . . . . . . . . .

5
5
5
2
2

■

Form 990-PF Instructions