Short Form Return of Organization Exempt From Income Tax

2010

Instructions for Form 990-EZ

Department of the Treasury
Internal Revenue Service

Short Form Return of Organization Exempt From Income Tax Under Section
501(c), 527, or 4947(a)(1) of the Internal Revenue Code
(except black lung benefit trust or private foundation)
Section references are to the Internal Revenue Code unless
otherwise noted.
Contents
Page
• What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
• Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
• Phone Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
• Email Subscription . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
• Photographs of Missing Children . . . . . . . . . . . . . . . . . . . 3
• General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
B Organizations Not Required to File Form 990 or
990-EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
C Accounting Periods and Methods . . . . . . . . . . . . . . . . . 5
D When, Where, and How To File . . . . . . . . . . . . . . . . . . 5
E Extension of Time To File . . . . . . . . . . . . . . . . . . . . . . 6
F Amended Return/Final Return . . . . . . . . . . . . . . . . . . . 6
G Failure-to-File Penalties . . . . . . . . . . . . . . . . . . . . . . . . 6
H Requirements for a Properly Completed Form
990-EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
• Specific Instructions for Form 990-EZ . . . . . . . . . . . . . . . . 8
Completing the Heading of Form 990-EZ . . . . . . . . . . . . . 8
Part I. Revenue, Expenses, and Changes in Net
Assets or Fund Balances . . . . . . . . . . . . . . . . . . . . . . . . 9
Part II. Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part III. Statement of Program Service
Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part IV. List of Officers, Directors, Trustees, and
Key Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part V. Other Information . . . . . . . . . . . . . . . . . . . . . . . 17
Part VI. Section 501(c)(3) Organizations and
Section 4947(a)(1) Nonexempt Charitable Trusts
Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Signature Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
• Appendix of Special Instructions to Form 990-EZ
Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
A Exempt Organizations Reference Chart . . . . . . . . . . . 24
B How to Determine Whether an Organization’s
Gross Receipts Are Normally $50,000 (or $5,000)
or Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
C Special Gross Receipts Tests for Determining
Exempt Status of Section 501(c)(7) and
501(c)(15) Organizations . . . . . . . . . . . . . . . . . . . . . 26
D Public Inspection of Returns . . . . . . . . . . . . . . . . . . . 26
E Section 4958 Excess Benefit Transactions . . . . . . . . . 30
F Forms and Publications to File or Use . . . . . . . . . . . . . 34
G Use of Form 990 or 990-EZ To Satisfy State
Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . 37
• Paperwork Reduction Act Notice . . . . . . . . . . . . . . . . . . 38
• Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

What’s New
Automatic Revocation for Non-filing
The law requires most tax-exempt organizations, other than
churches, to file an annual Form 990, 990-EZ, or 990-PF with
the IRS, or to submit a Form 990-N e-Postcard to the IRS. If an
organization fails to file an annual return or submit an annual
notice as required for 3 consecutive years, it will automatically

lose its tax-exempt status. See General Instructions G,
Failure-to-File Penalties.
Significant Changes for 2008 and 2010
The following describes changes to the Form 990-EZ, Short
Form Return of Organization Exempt From Income Tax Under
Section 501(c), 527, or 4947(a)(1) of the Internal Revenue
Code that became effective beginning in the 2008 tax year and
additional changes effective for the 2009 and 2010 tax years.
2010 Significant Changes
The gross receipts and total assets thresholds for Form
990-EZ filers have been lowered for the 2010 tax year, from
$500,000 in annual gross receipts to $200,000, and from
$1,250,000 in total assets to $500,000. In other words, an
organization can file a Form 990-EZ (rather than a Form 990) if
its annual gross receipts for tax year 2010 are less than
$200,000 and if its total assets at the end of the tax year 2010
are less than $500,000.
Tax-exempt organizations with annual gross receipts that
are normally $50,000 or less (an increase from $25,000 for the
2009 tax year and prior tax years) must submit Form 990-N,
Electronic Notice (e-Postcard) for Tax-Exempt Organizations
Not Required to File Form 990 or 990-EZ, if they choose not to
file Form 990 or 990-EZ.
Schedule O (Form 990 or 990-EZ), Supplemental
Information to Form 990 or 990-EZ, rather than separate
attachments, should be used to provide narrative responses, as
applicable, to lines 8, 10, 16, 20, 24, 26, 31, 33, 34, and 35.
Schedule O may also be used to supplement or explain the
organization’s responses to other questions in Form 990-EZ.
What were formerly referred to as “special events” are now
referred to as “fundraising events” throughout the form and
instructions.
Line 6 is revised to distinguish between and add new lines
for reporting income from fundraising events and income from
gaming. New parentheticals to these lines explain the threshold
for filing Part II of Schedule G is $15,000 of gross income and
contributions from fundraising events, and the threshold for
filing Part III of Schedule G is $15,000 of gross income from
gaming.
Line 44 is revised to clarify that if an organization maintained
any donor advised fund or operated a hospital, then it must
complete Form 990 instead of Form 990-EZ. Line 44 also
includes new lines 44c and 44d, which ask whether the
organization received any payments for indoor tanning services
during the tax year and, if so, whether it has filed a Form 720 to
report those payments.
A new line 45a is added to clarify that controlled entities that
received certain payments from or engaged in certain
transactions with a controlled entity within the meaning of
section 512(b)(13) must complete Form 990 and Schedule R
instead of Form 990-EZ.
Line 46, which asks whether the organization engaged in
direct or indirect political campaign activities on behalf of or in
opposition to candidates for public office, has been moved from
Part VI to Part V so that all Form 990-EZ filers — not just
501(c)(3) organizations and 4947(a)(1) nonexempt charitable
trusts — must answer this question. If an organization answers
“Yes,” it must complete and file the applicable parts of Schedule
C, Part I.

Cat. No. 64888C

2009 Significant Changes

• Line 6a – replaced attached schedule with Parts II and

III of Schedule G when gross revenue from special
events and gaming activities exceeds $15,000.
• Part V. Other Information:
• Line 36 – replaced attached schedule with Schedule N,
• Line 38a – replaced attached schedule with Schedule L,
Part II, and
• Line 40b – replaced attached schedule with Schedule L
Part I.
Other changes to lines.
Line 33 – rephrased.
Lines 44 and 45 – added to remind sponsoring
organizations of donor advised funds, and certain section
512(b)(13) controlling organizations, that they must file Form
990 instead of Form 990-EZ (see instructions to lines 44 and
45).
Line 46 – for determining which section 501(c)(3)
organizations are required to complete Schedule C, Part I,
regarding political activities.
Significant changes to instructions. The Form 990-EZ
Instructions are no longer combined with the Form 990
Instructions, although the General Instructions and Appendix of
Special Instructions are nearly the same for both forms.
Several of the General Instructions were moved to the
Appendix or eliminated.
Use of other forms such as Form LM-2 and LM-3 as a
substitute for financial reporting on Form 990 or 990-EZ is
eliminated.
The instructions clarify that organizations that claim
tax-exempt status but have not yet applied for or been
recognized as exempt must file Form 990 or 990-EZ. See
General Instruction A.
Organizations can choose one of two methods (Option 1 or
Option 2) of reporting compensation of their officers, directors,
trustees, key employees, and five highest compensated
employees. Option 1 is a simplified version of the Form 990
method of compensation reporting (for example, an
organization filing Form 990-EZ that chooses Option 1 need not
complete Schedule J, which may be required for an
organization that completes Form 990). Option 1 requires
calendar-year compensation reporting and is based on Form
W-2 and Form 1099-MISC reporting. Option 2 is essentially the
2007 Form 990-EZ method of compensation reporting.
Whichever method the organization selects must be used
consistently for all officers, directors, trustees, key employees,
and five highest compensated employees, and must be
consistently applied for all tax years beginning with 2008.

The term, “substantial contraction” on line 36 has been
replaced with “significant disposition of net assets” to reflect
redesigned Form 990 and Schedule N terminology. The
meaning of a “significant disposition of net assets” is similar to
the meaning of “substantial contraction” in 2008 Form 990-EZ,
except that a “significant disposition of net assets” includes
transfers for full consideration. See instruction for line 36.
Instructions regarding required filing of Schedule A and a
personal benefit contract statement have been moved from the
Part VI instructions to the beginning of the Part V instructions.
2008 Significant Changes
Unlike Form 990, which was extensively redesigned for
2008, the 2008 Form 990-EZ had few changes. The dollar
thresholds for Form 990-EZ filers were lowered to allow more
organizations to file Form 990-EZ. Several new lines were
added, largely due to revision of Schedule A, Public Charity
Status and Public Support. Several unstructured attachments
were replaced by Schedules or eliminated. Some instructions
were changed in coordination with redesigned Form 990
instructions.
Filing amounts. The gross receipts and total assets amounts
for Form 990-EZ filers have been lowered. Beginning with the
2008 tax year, an organization can file a Form 990-EZ (rather
than a Form 990) if it satisfies both the gross receipts and total
assets tests set forth in this table.
File 990-EZ for:

If gross receipts are: And if total assets
are:

2008 tax year (filed in
2009)

< $1 million

< $2.5 million

2009 tax year (filed in
2010)

< $500,000

< $1.25 million

2010 and later tax years

< $200,000

< $500,000

Replacement of Schedule A with new Part VI and
schedules. For 2008, many parts of the 2007 Schedule A
were moved to new schedules or to the Form 990 core form,
which required that corresponding changes be made to Form
990-EZ. For 2008, Part VI of Form 990-EZ was added to
maintain reporting of information previously required of
organizations that filed a Form 990-EZ and completed Schedule
A.
• Line 47 – for determining which section 501(c)(3)
organizations are required to complete Schedule C, Part II,
regarding lobbying activities (2007 Schedule A, Part VI-A and
VI-B).
• Line 48 – for determining which section 501(c)(3) schools
are required to complete Schedule E regarding private schools
(2007 Schedule A, Part V).
• Lines 49a and 49b – added to identify transactions between
section 501(c)(3) organizations and tax-exempt organizations
other than section 501(c)(3) organizations (2007 Schedule A,
Part VII). However, 990-EZ filers are no longer required to
provide the details of such transactions.
• Line 50 – added to report compensation of the five highest
compensated employees other than officers, directors, trustees,
and key employees (2007 Schedule A, Part I); threshold raised
from $50,000 to $100,000.
• Line 51 – added to report compensation of the five highest
compensated independent contractors (2007 Schedule A, Parts
II-A and II-B); threshold raised from $50,000 to $100,000.

Purpose of Form
Forms 990 and 990-EZ are used by tax-exempt organizations,
nonexempt charitable trusts, and section 527 political
organizations to provide the IRS with the information required
by section 6033.
An organization’s completed Form 990 or 990-EZ, and a
section 501(c)(3) organization’s Form 990-T, Exempt
Organization Business Income Tax Return, generally are
available for public inspection as required by section 6104.
Schedule B, Schedule of Contributors, is open for public
inspection for section 527 organizations filing Form 990 or
990-EZ. For other organizations that file Form 990 or 990-EZ,
parts of Schedule B can be open to public inspection. For more
details, see Appendix D and the Instructions for Schedule B
(Form 990, 990-EZ, or 990-PF), Schedule of Contributors.
Some members of the public rely on Form 990 or 990-EZ, as
the primary or sole source of information about a particular
organization. How the public perceives an organization in such
cases may be determined by the information presented on its
return. Therefore, the return must be complete, accurate, and
fully describe the organization’s programs and
accomplishments.

Replacement of certain attachments with new schedules.
Certain unstructured attachments required in the 2007 Form
990-EZ were replaced with schedules or eliminated.
• Part I. Revenue, Expenses, and Changes in Net Assets or
Fund Balances:
• Line 5c – eliminated the attached schedule for sales of
non-inventory assets and

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1. Throughout these instructions, “the organization” and the
“filing organization” both refer to the organization filing the Form
990-EZ.
2. The examples appearing throughout these instructions
are illustrative only and for the purpose of completing Form
990-EZ, but are not all-inclusive.
3. Instructions for the Form 990-EZ Schedules are
published separately from these instructions.

!

CAUTION

1. For tax years beginning in 2010, Form 990-EZ can be
filed by organizations with gross receipts of less than $200,000
and total assets of less than $500,000 at the end of their tax
year.
2. Sponsoring organizations of donor advised funds (as
defined in section 4966(d)(1)), organizations that operate a
hospital facility, organizations recognized by the IRS as section
501(c)(29) nonprofit health insurance issuers, and certain
controlling organizations defined in section 512(b)(13) must file
Form 990 rather than Form 990-EZ regardless of the amount of
their gross receipts and total assets. See instructions for lines
44 and 45, and General Instruction A, before completing this
form.
3. Form 990-EZ cannot be used by a private foundation
required to file Form 990-PF, Return of Private Foundation or
Section 4947(a)(1) Nonexempt Charitable Trust Treated as a
Private Foundation. A section 501(c)(3) or section 4947(a)(1)
organization should refer to the Instructions for Schedule A
(Form 990 or 990-EZ) to determine whether it is a private
foundation.
4. Form 990 must be used to file a group return, not Form
990-EZ. See General Instruction A.

A. Who Must File
Most organizations exempt from income tax under section
501(a) must file an annual information return (Form 990 or
990-EZ) or submit an annual electronic notice (Form 990-N),
depending upon the organization’s gross receipts and total
assets.
For tax years beginning in 2010, if an organization has gross
receipts less than $200,000 and total assets at the end of the
year less than $500,000, it can file Form 990-EZ, instead of
Form 990. See the instructions below for more information. But
see the special rules below for Controlling organizations
described in section 512(b)(13), Organizations that operate one
or more hospital facilities, Organizations recognized by the IRS
as section 501(c)(29) nonprofit health insurance issuers, and
Sponsoring organizations of donor advised funds (as defined in
section 4966(d)(1)).

Phone Help

For 2010, Form 990 (not 990-EZ or 990-N) must be filed by
an organization exempt from income tax under section 501(a)
(including an organization that has not yet applied for
recognition of exemption) if it has either gross receipts greater
than or equal to $200,000 or total assets greater than or equal
to $500,000 at the end of the tax year. This includes the
following:
• Organizations described in section 501(c)(3) (other than
private foundations) and
• Organizations described in other section 501(c) subsections
(other than black lung benefit trusts).
Gross receipts. Gross receipts are the total amounts the
organization received from all sources during its annual
accounting period, without subtracting any costs or expenses.
See Appendix B for a discussion of gross receipts. Total assets
is the amount reported by the organization on its balance sheet
(Form 990-EZ, Part II, column (B), line 25) as of the end of the
year, without reduction for liabilities.

If you have questions and/or need help completing Form 990 or
Form 990-EZ, please call 1-877-829-5500. This toll-free
telephone service is available Monday through Friday.

Email Subscription
The IRS has established a new subscription-based email
service for tax professionals and representatives of tax-exempt
organizations. Subscribers will receive periodic updates from
the IRS regarding exempt organization tax law and regulations,
available services, and other information. To subscribe, visit
www.irs.gov/eo.

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.

For purposes of Form 990 or Form 990-EZ reporting, the
term “section 501(c)(3)” includes organizations exempt under
sections 501(e) and (f) (cooperative service organizations),
501(j) (amateur sports organizations), 501(k) (child care
organizations), and 501(n) (charitable risk pools). In addition,
any organization described in one of these sections is also
subject to section 4958 if it obtains a determination letter from
the IRS stating that it is described in section 501(c)(3).
Form 990-N. If an organization normally has annual gross
receipts of $50,000 or less (an increase from the $25,000
threshold that applied to the 2009 tax year and prior tax years),
it must submit Form 990-N, Electronic Notice (e-Postcard) for
Tax-Exempt Organizations not Required To File Form 990 or
990-EZ, if it does not file Form 990 or Form 990-EZ (with
exceptions described below for certain section 509(a)(3)
supporting organizations and for certain organizations
described in General Instruction B). See Appendix B.
Electronic filing. Organizations can file Form 990-EZ
electronically. See General Instruction D for who must file
electronically.

General Instructions
Overview of Form 990-EZ. The Form 990-EZ is an annual
information return required to be filed with the IRS by many
organizations exempt from income tax under section 501(a),
and certain political organizations and nonexempt charitable
trusts. Parts I through VI of the form must be completed by all
filing organizations, and require reporting on the organization’s
exempt and other activities, finances, compliance with certain
federal tax filings and requirements, and compensation paid to
certain persons. Additional schedules are required to be
completed depending upon the activities and type of
organization. The completed Form 990-EZ filed with the IRS,
except for certain contributor information on Schedule B (Form
990, 990-EZ, or 990-PF), Schedule of Contributors, is required
to be made available to the public by the IRS and the filing
organization. Also, the organization may be required to file the
completed Form 990-EZ with state governments to satisfy state
reporting requirements.

Form 990 (including its schedules) has been
TIP substantially redesigned for 2008 and later tax years.
The IRS has provided transitional relief to small and
mid-size organizations, allowing many to file Form 990-EZ for
2008-2010 instead of Form 990, and providing them time to
become familiar with the new Form 990 and its requirements.
The following schedule sets forth the modified amounts for filing
Form 990-EZ (instead of Form 990) during this transition period:

Organizations that have total gross income from
unrelated trades or businesses of at least $1,000 also
CAUTION
are required to file Form 990-T, Exempt Organization
Business Income Tax Return, in addition to any required Form
990, 990-EZ, or 990-N.
Helpful Hints. The following hints may help you more
efficiently review these instructions and complete the form.

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Form 990-EZ may be If gross receipts are: And if total assets
filed for:
are:

gross receipts of $100,000 or more. Political organizations are
not required to submit Form 990-N.

2009 Form (generally < $500,000
filed in 2010)

< $1,250,000

2010 and later Forms < $200,000

< $500,000

Section 4947(a)(1) non-exempt charitable trusts. A
non-exempt charitable trust described under section 4947(a)(1)
of the Code (if it is not treated as a private foundation) is
required to file Form 990 or Form 990-EZ unless excepted
under General Instruction B. Such a trust is treated like an
exempt section 501(c)(3) organization for purposes of
completing the form; all references to a section 501(c)(3)
organization shall include a section 4947(a)(1) trust (for
instance, such a trust must complete Schedule A, Public
Charity Status and Public Support), unless otherwise specified.
If such a trust does not have any taxable income under Subtitle
A of the Code, it can file Form 990 or Form 990-EZ to meet its
section 6012 filing requirement and does not have to file Form
1041, U.S. Income Tax Return for Estates and Trusts.

Foreign and U.S. possession organizations. Foreign
organizations and U.S. possession organizations, as well as
domestic organizations described above, must file Form 990 or
990-EZ unless specifically excepted under General Instruction
B. Report amounts in U.S. dollars, and state what conversion
rate the organization uses. Combine amounts from within and
outside the United States, and report the total for each item. All
information must be written in English.
Sponsoring organizations of donor advised funds.
Sponsoring organizations of donor advised funds (as defined in
section 4966(d)(1)) must file Form 990 and not Form 990-EZ.
See line 44 and the related instructions.
Organizations that operate one or more hospital facilities.
Organizations that operated one or more hospital facilities
during the tax year must file Form 990 and not Form 990-EZ,
and complete Schedule H. A hospital facility is a facility that is,
or is required to be, licensed, registered, or similarly recognized
by a state as a hospital, or any facility that the Secretary
determines has the provision of hospital care as its principal
function or purpose constituting the basis for its exemption
under section 501(c)(3), without regard to section 501(r). See
line 44b and the related instructions.
Organizations recognized by the IRS as section 501(c)(29)
nonprofit health insurance issuers. Organizations
recognized by the IRS as nonprofit health insurance issuers
under section 501(c)(29) during the tax year must file Form 990
and not Form 990-EZ.

Group returns. A group return filed by the central or parent
organization on behalf of the subordinates in a group exemption
must be filed using Form 990, not Form 990-EZ.
Returns when exempt status not established. An
organization is required to file Form 990 or 990-EZ in
accordance with these instructions if the organization claims
exempt status under section 501(a) but has not yet established
such exempt status by filing Form 1023 (Application for
Recognition of Exemption Under Section 501(c)(3) of the
Internal Revenue Code) or Form 1024 (Application for
Recognition of Exemption Under Section 501(a) or for
Determination Under Section 120) and receiving an IRS
determination letter recognizing exempt status. In such cases,
the organization must check the “application pending” checkbox
in Item B of the Form 990 or Form 990-EZ header (whether or
not a Form 1023 or Form 1024 has yet been filed) to indicate
that the Form 990 or Form 990-EZ is being filed in the belief
that the organization is exempt under section 501(a).

Do not file Form 990 as a nonprofit health insurance
issuer described in section 501(c)(29) until the IRS
CAUTION
issues an announcement or other guidance establishing
the process for submitting requests for recognition of exempt
status and/or filing Form 990.
Controlling organizations described in section 512(b)(13).
A controlling organization of one or more controlled entities, as
described in section 512(b)(13), must file Form 990 and not
Form 990-EZ if it is required to file an annual information return
for the year and if there was any transfer of funds between the
controlling organization and any controlled entity during the
year. See line 45 and the related instructions.
Section 509(a)(3) supporting organizations. A section
509(a)(3) supporting organization must file Form 990 or
990-EZ, even if its gross receipts are normally $50,000 or less,
unless it qualifies as one of the following:
1. An integrated auxiliary of a church, as described in
Regulations section 1.6033-2(h),
2. The exclusively religious activities of a religious order, or
3. An organization whose gross receipts are normally not
more than $5,000 that supports a section 501(c)(3) religious
organization.

!

B. Organizations Not Required To File
Form 990 or 990-EZ
For tax years beginning in 2010, an organization described
below does not have to file Form 990 or 990-EZ even if it has at
least $200,000 of gross receipts or $500,000 total assets at the
end of the tax year (except for section 509(a)(3) supporting
organizations described in General Instruction A). See General
Instruction A for determining whether the organization can file
Form 990-EZ instead of Form 990. An organization described in
item 10, 11, or 13 below is required to submit Form 990-N
unless it voluntarily files Form 990, 990-EZ, or 990-BL.
Certain religious organizations
1. A church, an interchurch organization of local units of a
church, a convention or association of churches, or an
integrated auxiliary of a church as described in Regulations
section 1.6033-2(h) (such as a men’s or women’s organization,
religious school, mission society, or youth group).
2. A church-affiliated organization that is exclusively
engaged in managing funds or maintaining retirement programs
and is described in Rev. Proc. 96-10, 1996-1 C.B. 577.
3. A school below college level affiliated with a church or
operated by a religious order, as described in Regulations
section 1.6033-2(g)(1)(vii).
4. A mission society sponsored by, or affiliated with, one or
more churches or church denominations, if more than half of
the society’s activities are conducted in, or directed at, persons
in foreign countries.
5. An exclusively religious activity of any religious order
described in Rev. Proc. 91-20.
Certain governmental organizations
6. A state institution whose income is excluded from gross
income under section 115.
7. A governmental unit or affiliate of a governmental unit
described in Rev. Proc. 95-48, 1995-2 C.B. 418.
8. An organization described in section 501(c)(1). A section
501(c)(1) organization is a corporation organized under an act

If the organization is described in (3), then it must submit
Form 990-N unless it voluntarily files Form 990 or Form 990-EZ.
Section 501(c)(7) and 501(c)(15) organizations. Section
501(c)(7) and 501(c)(15) organizations apply the same gross
receipts test as other organizations to determine whether they
must file a Form 990 or 990-EZ, but use a different definition of
gross receipts to determine whether they qualify as tax-exempt
for the tax year. See Appendix C for more information.
Section 527 political organizations. Tax-exempt political
organizations must file Form 990 or 990-EZ unless their annual
gross receipts are less than $25,000 during the tax year or they
are otherwise excepted under General Instruction B,
Organizations Not Required to File Form 990 or 990-EZ. A
section 527 political organization that is a qualified state or local
political organization must file Form 990 or 990-EZ only if it has

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Short period. A short accounting period is a period of less
than 12 months, which exists when an organization first
commences operations, changes its accounting period, or
terminates. If the organization’s short year ended prior to
December 31, 2010 (not on or after December 31, 2010), it
should use the 2009 Form 990-EZ or Form 990 to file for such
short year.
Accounting period change. If the organization changes its
accounting period, it must file a Form 990-EZ for the short
period resulting from the change. Enter “Change of Accounting
Period” at the top of this short-period return.
If the organization previously changed its accounting period
within the 10-calendar-year period that includes the beginning
of the short period, and it had a Form 990-EZ filing requirement
at any time during that 10-year period, it must also attach a
Form 1128, Application To Adopt, Change, or Retain a Tax
Year, to the short-period return. See Rev. Proc. 85-58, 1985-2
C.B. 740.

of Congress that is an instrumentality of the United States, and
exempt from federal income taxes.
Certain political organizations
9. A political organization that is:
• A state or local committee of a political party,
• A political committee of a state or local candidate,
• A caucus or association of state or local officials, or
• Required to report under the Federal Election Campaign
Act of 1971 as a political committee (as defined in section
301(4) of such Act).
Certain organizations with limited gross receipts
10. An organization whose gross receipts are normally
$50,000 or less. To determine what an organization’s gross
receipts “normally” are, see Appendix B.
11. Foreign organizations and organizations located in U.S.
possessions, whose gross receipts from sources within the
United States are normally $50,000 or less, and which did not
engage in significant activity in the United States (other than
investment activity). But if a foreign organization or organization
located in a U.S. Possession is required to file a Form 990 or
Form 990-EZ, then its worldwide gross receipts, as well as
assets, are taken into account in determining whether it
qualifies to file Form 990-EZ. To determine what an
organization’s gross receipts “normally” are, see Appendix B.
Certain organizations that file different kinds of annual
information returns
12. A private foundation (including a private operating
foundation) exempt under section 501(c)(3) and described in
section 509(a). Use Form 990-PF, Return of Private
Foundation. Use Form 990-PF also for a taxable private
foundation, a section 4947(a)(1) nonexempt charitable trust
treated as a private foundation, and a private foundation
terminating its status by becoming a public charity under
section 507(b)(1)(B) for tax years within its 60-month
termination period. If the section 507(b)(1)(B) organization
successfully terminates, then it files Form 990 or 990-EZ in its
final year of termination.
13. A black lung benefit trust described in section 501(c)(21).
Use Form 990-BL, Information and Initial Excise Tax Return for
Black Lung Benefit Trusts and Certain Related Persons.
14. A religious or apostolic organization described in section
501(d). Use Form 1065, U.S. Return of Partnership Income.
15. A stock bonus, pension, or profit-sharing trust that
qualifies under section 401. Use Form 5500, Annual Return/
Report of Employee Benefit Plan.

Accounting Methods
Unless instructed otherwise, the organization should generally
use the same accounting method on the return (including the
Form 990-EZ and all schedules) to report revenue and
expenses that it regularly uses to keep its books and records.
To be acceptable for Form 990-EZ reporting purposes,
however, the method of accounting must clearly reflect income.
Accounting method change. Generally, the organization
must file Form 3115 to change its accounting method. An
exception applies where a section 501(c) organization changes
its accounting method to comply with SFAS 116 (ASC 958),
Accounting for Contributions Received and Contributions Made.
See Notice 96-30, 1996-1 C.B. 378. An organization that makes
a change in accounting method, regardless of whether it files
Form 3115, Application for Change in Accounting Method, and
that has audited financial statements, must report any
adjustment required by section 481(a) on Form 990-EZ, line 20
(other changes in net assets or fund balances), as a net asset
adjustment made during the tax year. The organization must
explain in Schedule O the change and net asset adjustment.
The adjustment must be identified as the effect of changing to
the method provided in SFAS 116 (ASC 958). The beginning of
year statement of financial position (balance sheet) should not
be restated to reflect any prior period adjustments.
State reporting. Most states that accept Form 990-EZ in place
of their own forms require that all amounts be reported based
on the accrual method of accounting. If the organization
prepares Form 990-EZ for state reporting purposes, it can file
an identical return with the IRS even though the return does not
agree with the books of account, unless the way one or more
items are reported on the state return conflicts with the
instructions for preparing Form 990-EZ for filing with the IRS.
Example 1. The organization maintains its books on the
cash receipts and disbursements method of accounting but
prepares a Form 990-EZ return for the state based on the
accrual method. It could use that return for reporting to the IRS.
Example 2. A state reporting requirement requires the
organization to report certain revenue, expense, or balance
sheet items differently from the way it normally accounts for
them on its books. A Form 990-EZ prepared for that state is
acceptable for the IRS reporting purposes if the state reporting
requirement does not conflict with Form 990-EZ instructions.
An organization should keep a reconciliation of any
differences between its books of account and the Form 990-EZ
that is filed.

Subordinate organizations in a group exemption which
TIP are included in a group return filed for the tax year by
the central organization should not file a separate Form
990 or Form 990-EZ, or submit Form 990-N for the tax year.
A public charity described in section 170(b)(1)(A)(iv) or
TIP (vi) or 509(a)(2) that is not within its initial five years of
existence should first complete Part II or III of Schedule
A (Public Charity Status and Public Support) to ensure that it
continues to qualify as a public charity for the tax year. If it fails
to qualify as a public charity, then it must file Form 990-PF
rather than Form 990-EZ.

C. Accounting Periods and Methods
Accounting Periods
Calendar year. Use the 2010 Form 990-EZ to report on the
2010 calendar year accounting period. A calendar year
accounting period begins on January 1 and ends on December
31.
Fiscal year. If the organization has established a fiscal year
accounting period, use the 2010 Form 990-EZ to report on the
organization’s fiscal year that began in 2010 and ended 12
months later. A fiscal year accounting period should normally
coincide with the natural operating cycle of the organization. Be
certain to indicate in the heading of Form 990-EZ the date the
organization’s fiscal year began in 2010 and the date the fiscal
year ended in 2011.

See Pub. 538, Accounting Periods and Methods, about
TIP reporting changes to accounting periods and methods.

D. When, Where, and How to File
File Form 990-EZ by the 15th day of the 5th month after the
organization’s accounting period ends (May 15 for a
calendar-year filer). If the regular due date falls on a Saturday,
Sunday, or legal holiday, file on the next business day. A

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business day is any day that is not a Saturday, Sunday, or legal
holiday.
If the organization is liquidated, dissolved, or terminated, file
the return by the 15th day of the 5th month after liquidation,
dissolution, or termination.
If the return is not filed by the due date (including any
extension granted), attach a statement giving the reason(s) for
not filing on time.
Send the return to the:

amended return must provide all the information called for by
the form and instructions, not just the new or corrected
information. Check the “Amended return” box in Item B of the
heading of the return. Also, list in Schedule O (Form 990 or
Form 990-EZ) which parts and schedules of the Form 990-EZ
were amended and describe the amendments.
The organization can file an amended return at any time to
change or add to the information reported on a previously filed
return for the same period. It must make the amended return
available for inspection for 3 years from the date of filing or 3
years from the date the original return was due, whichever is
later.
If the organization needs a copy of its previously filed return,
it can file Form 4506, Request for Copy of Tax Return. See IRS.
gov for information on getting blank tax forms.
If the return is a final return, see the instructions for line 36
and Schedule N (Form 990 or 990-EZ), Liquidation,
Termination, Dissolution or Significant Disposition of Assets, for
further details.
Amended returns and state filing considerations. State law
can require that the organization send a copy of an amended
Form 990-EZ return (or information provided to the IRS
supplementing the return) to the state with which it filed a copy
of Form 990-EZ originally to meet that state’s filing requirement.
A state can require an organization to file an amended Form
990-EZ to satisfy state reporting requirements, even if the
original return was accepted by the IRS.

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
Foreign and U.S. possession organizations. If the
organization’s principal business, office, or agency is located in
a foreign country or U.S. possession, send the return to the:
Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409
Private delivery services. The organization 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,
• Federal Express (FedEx): FedEx Priority Overnight, FedEx
Standard Overnight, FedEx 2Day, FedEx International Priority,
FedEx International First, and
• 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.

G. Failure-to-File Penalties
Against the organization. Under section 6652(c)(1)(A), a
penalty of $20 a day, not to exceed the smaller of $10,000 or
5% of the gross receipts of the organization for the year, can be
charged when a return is filed late, unless the organization can
show that the late filing was due to reasonable cause.
Organizations with annual gross receipts exceeding $1 million
are subject to a penalty of $100 for each day failure continues
(with a maximum penalty with respect to any one return of
$50,000). The penalty begins on the due date for filing Form
990-EZ.
Tax-exempt organizations which are required to file
electronically but do not are deemed to have failed to file the
return. This is true even if a paper return is submitted.
The penalty can also be charged if the organization files an
incomplete return, such as by failing to complete a required line
item or a required part of a schedule. To avoid penalties and
having to supply missing information later:
1. Complete all applicable line items;
2. Unless instructed to skip a line, answer each question on
the return;
3. Make an entry (including a zero when appropriate) on all
lines requiring an amount or other information to be reported;
and
4. Provide required explanations as instructed.

Private delivery services cannot deliver items to P.O.
boxes. You must use the U.S. Postal Service to mail any
CAUTION
item to an IRS P.O. Box.
Electronic filing. The organization can file Form 990-EZ or
Form 990 and related forms, schedules, and attachments
electronically. However, if an organization files at least 250
returns of any type during the calendar year ending with or
within the organization’s tax year and has total assets of $10
million or more at the end of the tax year, it must file Form 990
electronically (and not Form 990-EZ). “Returns” for this purpose
include information returns (for example, Forms W-2, Forms
1099), income tax returns, employment tax returns (including
quarterly Forms 941), and excise tax returns.
If an organization is required to file a return electronically but
does not, the organization is considered not to have filed its
return, even if a paper return is submitted. 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 requirements to file electronically in
cases of undue hardship. For information on filing a waiver, see
Notice 2010-13, 2010-4 I.R.B. 327, available at www.irs.gov/irb/
2010-04_IRB/ar14.html.

!

Also, this penalty can be imposed if the organization’s return
contains incorrect information. For example, an organization
that reports contributions net of related fundraising expenses
may be subject to this penalty.
Use of a paid preparer does not relieve the organization of
its responsibility to file a complete return.
Against responsible person(s). If the organization does not
file a complete return or does not furnish correct information,
the IRS will send the organization a letter that includes a fixed
time to fulfill these requirements. After that period expires, the
person failing to comply will be charged a penalty of $10 a day.
The maximum penalty on all persons for failures with respect to
any one return shall not exceed $5,000.
There are also penalties (fines and imprisonment) for willfully
not filing returns and for filing fraudulent returns and statements
with the IRS (sections 7203, 7206, and 7207). States can
impose additional penalties for failure to meet their separate
filing requirements.

E. Extension of Time To File
Use Form 8868, Application for an Extension of Time To File an
Exempt Organization Return to request an automatic 3-month
extension of time to file. Use Form 8868 also to apply for an
additional (not automatic) 3-month extension if the original 3
months was not enough time. To obtain this additional
extension of time to file, the organization must show reasonable
cause for the additional time requested. See the Instructions for
Form 8868.

F. Amended Return/Final Return
To change the organization’s return for any year, file a new
return including any required schedules. Use the version of
Form 990-EZ applicable to the year being amended. The

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Automatic revocation for nonfiling for three consecutive
years. The law requires most tax-exempt organizations, other
than churches, to file an annual Form 990, 990-EZ, or 990-PF
with the IRS, or to submit a Form 990-N e-Postcard to the IRS.
If an organization fails to file an annual return or submit an
annual notice as required for 3 consecutive years, it will
automatically lose its tax-exempt status. Organizations that lose
their exemption must file income tax returns and pay income
tax. For details, go towww.irs.gov/eo.

Reporting proper amounts. Some lines request information
reported on other forms filed by the organization. If the
organization is aware that the amount actually reported on the
other form is incorrect, it must report on Form 990-EZ the
information that should have been reported on the other form
(in addition to filing an amended form with the proper amount).
Inclusion of activities and items of disregarded entities and
joint ventures. An organization must report in its Form
990-EZ all of the revenues, expenses, assets, liabilities, and net
assets or funds of a disregarded entity of which it is the sole
member, and must report in its Form 990-EZ its share of all
such items of a joint venture or other investment or
arrangement treated as a partnership for federal income tax
purposes. This includes passive investments. In addition, the
organization generally must report the activities of a
disregarded entity or a joint venture in the appropriate
schedules of the Form 990-EZ.

H. Requirements for a Properly
Completed Form 990-EZ
All organizations filing Form 990-EZ must complete Parts I
through VI of the Form 990-EZ, and any required schedules
and attachments. If an organization is not required to file Form
990-EZ but chooses to do so, it must file a complete return and
provide all of the information requested, including the required
schedules.

List of required schedules and attachments. An
organization may be required to file one or more of Schedules
A, B, C, E, G, L, N, or O, or various other attachments as
described in the form or instructions. The following is a list of
the Form 990-EZ schedules that the organization may have to
complete.
• Schedule A, Public Charity Status and Public Support. See
Part V, Other Information.
• Schedule B, Schedule of Contributors. See Item H,
Requirements for a Properly Completed Form 990-EZ.
• Schedule C, Political Campaign and Lobbying Activities, Part
III. See Line 35a, Proxy Tax.
• Schedule C, Political Campaign and Lobbying Activities, Part
I. See Line 46, Political Campaign Activities.
• Schedule C, Political Campaign and Lobbying Activities, Part
II. See Line 47, Lobbying Activities.
• Schedule E, Schools. See Line 48, Schools.
• Schedule G, Supplemental Information Regarding
Fundraising Events or Gaming Activities, Parts II and III. See
Lines 6a through 6d, Gaming and Fundraising Events.
• Schedule L, Transactions with Interested Persons, Part I.
See Line 40b, Section 501(c)(3) and 501(c)(4) Organizations:
Disclosure of Section 4958 Excess Benefit Transactions and
Excise Taxes.
• Schedule L, Transactions with Interested Persons, Part II.
See Line 38, Loans To or From Officers, Directors, Trustees,
and Key Employees.
• Schedule N, Liquidation, Termination, Dissolution or
Significant Disposition of Assets, Parts I (liquidation,
termination, or dissolution) and II (significant disposition of net
assets). See Line 36, Liquidation, Dissolution, Termination, or
Significant Disposition of Net Assets.
• Schedule O, Supplemental Information to Form 990 or Form
990-EZ. See Lines 8, 10, 16, 20, 24, 26, 31, 33, 34, and 35.

Public inspection. In general, all information the organization
reports on or with its Form 990-EZ, including schedules and
attachments, will be available for public inspection. Note,
however, the special rules for Schedule B (Schedule of
Contributors), a required schedule for certain organizations that
file Form 990-EZ. Make sure the forms and schedules are clear
enough to photocopy legibly. For more information on public
inspection requirements, see Appendix D and Pub. 557,
Tax-Exempt Status of Your Organization.
Signature. A Form 990-EZ is not complete without a proper
signature. For details, see the instructions to the Signature
Block, later.
Recordkeeping. The organization’s records should be kept as
long as they can be needed for the administration of any
provision of the Internal Revenue Code. Usually, records that
support an item of income, deduction, or credit must be kept a
minimum of 3 years from the date the return is due or filed,
whichever is later. Keep records that verify the organization’s
basis in property as long as they are needed to figure the basis
of the original or replacement property. Applicable law and an
organization’s policies can require that the organization retain
records longer than 3 years.
The organization should also keep copies of any returns it
has filed. They help in preparing future returns and making
computations when filing an amended return.
Rounding off to whole dollars. The organization must round
off cents to whole dollars on the returns and schedules, unless
otherwise noted for particular questions. To round, drop
amounts under 50 cents and increase amounts from 50 to 99
cents to the next dollar. For example, $1.49 becomes $1 and
$2.50 becomes $3. If the organization has 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.
Completing all lines. Make an entry (including a zero when
appropriate) on all lines requiring an amount or other
information to be reported. Do not leave any applicable lines
blank, unless expressly instructed to skip that line. If answering
a line is predicated on a “Yes” answer to the preceding line, and
if the organization’s answer to the preceding line was “No,” then
leave the “If Yes” line blank.

Assembling Form 990-EZ, schedules, and attachments.
Before filing the Form 990-EZ, assemble the package of forms,
schedules, and attachments in the following order:
1. Core form with all parts completed (Parts I – V, Part VI by
section 501(c)(3) organizations, Signature Block),
2. Schedules A, B, C, E, G, L, N, and/or O, completed as
applicable, filed in alphabetical order, and
3. Attachments, completed as applicable. These include (a)
name change amendment to organizing document required by
Item B of the heading on page 1 of the return; (b) reasonable
cause explanation for a late-filed return; and (c) articles of
merger or dissolution, resolutions, and plans of liquidation or
merger required by Schedule N (Form 990 or 990-EZ).
Do not attach materials not authorized in the instructions, or
not otherwise authorized by the IRS.

In general, answers can be explained or supplemented in
Schedule O if the allotted space in the form or other schedule is
insufficient, or if a “Yes” or “No” answer is required but the
organization wishes to explain its answer.
Missing or incomplete parts of the form and/or required
schedules may result in the IRS contacting you to obtain the
missing information. Failure to supply the information may result
in a penalty being assessed to your account. For tips on filing
complete returns, go to www.irs.gov/charities.

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If the organization receives its mail in care of a third party
(such as an accountant or an attorney), enter on the street
address line C/O followed by the third party’s name and street
address or P.O. box.
For foreign addresses, enter information in the following
order: city, province or state, and the name of the country.
Follow the foreign country’s practice in placing the postal code
in the address. Please do not abbreviate the country name.
If a change of address occurs after the return is filed, use
Form 8822, Change of Address, to notify the IRS of the new
address.

Specific Instructions for Form
990-EZ

Completing the Heading of Form 990-EZ .
The instructions that follow are keyed to items in the heading for
Form 990-EZ.

Item A. Accounting Period
File the 2010 return for calendar year 2010 and fiscal years that
began in 2010 and ended in 2011. For a fiscal year return, fill in
the tax year space at the top of page 1. See General Instruction
C for additional information about accounting periods.

Item D. Employer Identification Number (EIN)
Use the employer identification number (EIN) provided to the
organization for filing its Form 990-EZ and federal tax returns.
The organization must have only one EIN. If the organization
has more than one EIN and has not been advised which to use,
notify the:

Item B. Checkboxes
Address change, name change, and initial return. Check
the appropriate box if the organization changed its address or
legal name (not its “doing business as” name) if the
organization has not reported such change on a prior return, or
if this is the first time the organization is filing either a Form 990
or a Form 990-EZ.
If the organization has changed its name, attach conformed
copies of the following documents (see line 34 instructions):
IF the organization is:

THEN attach:

A corporation

Amendments to the articles of
incorporation with proof of filing
with the state of incorporation.

A trust

Amendments to the trust
agreement signed by the trustee.

An unincorporated association

Amendments to the articles of
association, constitution, bylaws,
or other organizing document,
with the signatures of at least two
officers/members.

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
State what EINs the organization has, the name and address
to which each number was assigned, and the address of the
organization’s principal office. The IRS will advise the
organization which number to use.
A subordinate organization in a group exemption that is
TIP filing an individual Form 990-EZ return must use its own
EIN, not that of the central organization or of the group
return.
A section 501(c)(9) voluntary employees’ beneficiary
TIP association must use its own EIN and not the EIN of its
sponsor.

Item E. Telephone Number
Enter a telephone number of the organization that members of
the public and government personnel can use during normal
business hours to obtain information about the organization’s
finances and activities. If the organization does not have a
telephone number, enter the telephone number of an
organization official who can provide such information.

Terminated. Check this box if the organization has terminated
its existence or ceased to be a section 501(a) or section 527
organization and is filing its final return as an exempt
organization or 4947(a)(1) trust. See the instructions for line 36
that discuss liquidations, dissolutions, terminations, or
significant disposition of net assets. An organization that checks
this box because it has liquidated, terminated, or dissolved
during the tax year must also attach Schedule N (Form 990 or
990-EZ).
Amended return. Check this box if the organization previously
filed a return with the IRS for the same tax year and is now filing
another return for the same tax year to amend the previously
filed return. Explain in Schedule O (Form 990 or 990-EZ) which
parts, schedules, or attachments of the Form 990-EZ were
amended and describe the amendments. See General
Instruction F for more information.
Application pending. Check this box if the organization has
not yet filed either a Form 1023 or Form 1024 with the IRS, or
has filed one and is awaiting a response. If this box is checked,
the organization must complete all parts of the Form 990-EZ
and any required schedules.

Item F. Group Exemption Number
Enter the four-digit group exemption number if the organization
is included in a group exemption. The group exemption number
(GEN) is a number assigned by the IRS to the central/parent
organization of a group that has a group exemption letter.
Contact the central/parent organization to ascertain the GEN
assigned.
If the organization is covered by a group exemption
letter as a subordinate organization, the organization
CAUTION
should file Form 990-EZ only if the organization is not
included in a group return filed by the central/parent
organization.

!

The central/parent organization of a group ruling cannot
file a group return with Form 990-EZ but must use Form
CAUTION
990.
Section 501(c)(3) organizations and section 4947(a)(1)
nonexempt charitable trusts. Such organizations must
complete and attach Schedule A (Form 990 or 990-EZ), Public
Charity Status and Public Support.

!

Item C. Name and Address
Enter the organization’s legal name in the “Name of
organization” box. If the organization operates under a name
different from its legal name, identify its alternate name, after
the legal name, by writing “a.k.a.” (also known as) and the
alternate name of the organization. If multiple a.k.a. names will
not fit in the box, list them in Schedule O. However, if the
organization has changed its legal name, follow the instructions
in Item B. Checkboxes for reporting the name change.
Include the suite, room, or other unit number after the street
address. If the Post Office does not deliver mail to the street
address and the organization has a P.O. box, enter the box
number instead of the street address.

Item G. Accounting Method
Indicate the method of accounting used in preparing this return.
See General Instruction C.

Item H. Schedule B
Whether or not the organization enters any amount on line 1 of
Form 990-EZ, the organization must either check the box in
Item H or attach Schedule B (Form 990, 990-EZ, or 990-PF).
Failure to either check the box in Item H or file Schedule B will
result in a determination that the return is incomplete. See the
Instructions for Schedule B for more information.

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For purposes of Schedule B, contributors include
TIP individuals, fiduciaries, partnerships, corporations,
associations, trusts, and exempt organizations. For
organizations described in section 170(b)(1)(A)(iv) or (vi) or
section 509(a)(2), contributors also include governmental units.

$50,000 or less but the organization chooses to file Form
990-EZ. If the organization’s annual gross receipts are normally
not greater than $50,000, it may be required to submit the Form
990-N (e-Postcard) if it does not file the Form 990 or Form
990-EZ. If the organization chooses to file Form 990-EZ, be
sure to file a complete return. See Appendix B for a discussion
of gross receipts and General Instruction H for a discussion of a
complete return.

Guidelines for Meeting the Requirements
of Schedule B

Section 527 political organizations have different gross
receipts thresholds for Form 990-EZ filing, and are not
CAUTION
required to submit Form 990-N. See Section 527
political organizations instructions, earlier, for more information.

Section 501(c)(3) Organization Meeting the 1/3
Support Test of 170(b)(1)(A)(vi)
If

!

A section 501(c)(3) organization that met the 33-1/3%
support test of the regulations under section
509(a)(1) and section 170(b)(1)(A)(vi) did not receive
a contribution of the greater of $5,000 or 2% of the
amount on line 1 of Form 990-EZ from any one
contributor,*

Then

The organization should check the box in Item H to
certify that it is not required to attach Schedule B.

Otherwise

Complete and attach Schedule B.

Section 501(c)(7) and 501(c)(15) organizations use
different definitions of gross receipts to determine
CAUTION
whether they qualify for tax exemption for the year.
Appendix C defines gross receipts for the purpose of
determining the exempt status of organizations described in
sections 501(c)(7) and 501(c)(15). Do not use the definition of
gross receipts in Appendix C to determine whether the
organization’s gross receipts are normally $50,000 or less.

!

Item L. Determining Gross Receipts
Add lines 5b, 6b, and 7b to line 9 to determine gross receipts.
See Appendix B and Appendix C for discussion of gross
receipts.
For 2010 tax years, only those organizations with gross
receipts of less than $200,000 and total assets of less than
$500,000 at the end of the tax year can use the Form 990-EZ. If
the organization does not meet these requirements, it must file
Form 990, unless excepted under General Instruction B.

Section 501(c)(7), (8), or (10) Organizations
If

A section 501(c)(7), (8), or (10) organization
received neither (1) any contribution or bequest for
use exclusively for religious, charitable, scientific,
literary, or educational purposes, or the prevention of
cruelty to children or animals, nor (2) any
contribution of $5,000 or more not exclusively for
such purposes from any one contributor.

Then

The organization should check the box in Item H to
certify that it is not required to attach Schedule B.

Otherwise

Complete and attach Schedule B.

!

CAUTION

Part I. Revenue, Expenses, and Changes
in Net Assets or Fund Balances

All Other Form 990-EZ Organizations (General
Rule)
If

All organizations filing Form 990-EZ with the IRS or any state
must complete Part I. Some states that accept Form 990-EZ in
place of their own forms may require additional information. See
Appendix G.

The organization did not receive a contribution of
$5,000 or more from any one contributor* (reportable
on line 1 of the Form 990-EZ),

Then

The organization should check the box in Item H to
certify that it is not required to attach Schedule B.

Otherwise

Complete and attach Schedule B.

Do not use the definition of gross receipts for section
501(c)(7) or 501(c)(15) exemption purposes (discussed
in Appendix C) to determine the amount to enter here.

Revenue:
Line 1. Contributions, Gifts, Grants, and Similar
Amounts Received
A. What is included on line 1

• Report amounts received as voluntary contributions; for

example, payments, or the part of any payment, for which the
payer (donor) does not receive full retail value (fair market
value) from the recipient (donee) organization. Contributions
are reported on line 1 regardless of whether they are deductible
by the contributor.
• Enter the gross amounts of contributions, gifts, grants, and
bequests that the organization received from individuals, trusts,
corporations, estates, affiliates, foundations, public charities,
and other exempt organizations, or raised by an outside
professional fundraiser.
• Report the value of noncash contributions at the time of the
donation. For example, report the gross value of a donated car
as of the time the car was received as a donation.
• Report all related expenses on lines 12 through 16. Enter on
line 13 professional fundraising fees relating to the gross
amounts of contributions collected in the charity’s name by
fundraisers.
Reporting line 1 amounts in accordance with SFAS 116 (ASC
958), Accounting for Contributions Received and Contributions
Made, is acceptable but not required by the IRS. However,
state law may require it. An organization that receives a grant to
be paid in future years should, according to SFAS 116 (ASC
958), report the grant’s present value on line 1. Accruals of
present value increments to the unpaid grant should also be
reported on line 1 in future years.

* To determine if the organization received a contribution of
$5,000 or more from a contributor during the year, add all direct
and indirect gifts, grants, or contributions of $1,000 or more in
cash or property that a contributor made to the organization
during the year. Do not include smaller gifts, grants, or
contributions. See Instructions for Schedule B for more
information.

Item I. Website
Enter the organization’s website address. If the organization
does not maintain a website, enter “N/A” (not applicable).

Item J. Tax-Exempt Status
Check the applicable box to show the organization’s tax-exempt
status. If the organization is exempt under section 501(c), check
the 501(c) box and insert the appropriate subsection number
within the parentheses (for example,“4” for a 501(c)(4)
organization). See the chart in Appendix A, Exempt
Organization Reference Chart. The term section 501(c)(3)
includes organizations exempt under sections 501(e), (f), (k),
and (n).

Item K. Gross Receipts of $50,000 or Less
Check this box if the organization is not a section 509(a)(3)
supporting organization and its gross receipts are normally

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A1. Contributions can arise from fundraising events
when an excess payment is received for items offered.
Fundraising activities relate to soliciting and receiving
contributions. However, fundraising activities such as dinners,
door-to-door sales of merchandise, carnivals, and bingo games
can produce both contributions and revenue. Report as a
contribution, both on line 1 and on line 6b (within the
parentheses), any amount received through such a fundraising
event that is greater than the fair market value (retail value) of
the merchandise or services furnished by the organization to
the contributor. Report all gross income from gaming activities
on line 6a.
This situation usually occurs when organizations seek
support from the public through solicitation programs that are in
part fundraising events or activities and are in part solicitations
for contributions. The primary purpose of such solicitations is to
receive contributions and not to sell the merchandise at its retail
value, even though this might produce a profit.
Example. An organization holds a dinner, charging $400
per person for the meal. The dinner has a retail value of $160.
A person who purchases a ticket is really purchasing the dinner
for $160 and making a contribution of $240. The contribution of
$240, which is the difference between the buyer’s payment and
the retail value of the dinner, is reported on line 1 and again on
line 6a (within the parentheses). The revenue received ($160
retail value of the dinner) is reported on line 6a. Expenses
directly related to the dinner are reported on line 6b.
Fundraising expenses relating to the contribution of $240 are
reported on lines 12 through 16.
If a contributor gives more than $400, that person would be
making a larger contribution, the difference between the
dinner’s retail value of $160 and the amount actually given.
Rev. Rul. 67-246, 1967-2 C.B. 104, explains this principle in
detail. See also the instructions for line 6 and Pub. 526,
Charitable Contributions.

A grant is still equivalent to a contribution if the grant
recipient performs a service, or produces a work product, that
benefits the grantor incidentally (but see the instruction for line
1, B1 below).
A5. Contributions or grants from governmental units. A
grant or other payment from a governmental unit is treated as a
grant equivalent to a contribution if its primary purpose is to
enable the recipient to provide a service to, or maintain a facility
for, the direct benefit of the public rather than to serve the direct
and immediate needs of the grantor (even if the public pays part
of the expense of providing the service or facility). (See the
instruction for line 2, D, later.)
The following are examples of governmental grants and
other payments that are treated as contributions and reported
on line 1:
• Payments by a governmental unit for the construction or
maintenance of library or museum facilities open to the public,
• Payments by a governmental unit to nursing homes to
provide health care to their residents (but see treatment of
Medicare, Medicaid, and other third-party reimbursements on
behalf of specific individuals under the line 2 instructions), and
• Payments by a governmental unit to child placement or child
guidance organizations under government programs to better
serve children in the community.
The following examples illustrate the distinction between
government payments reportable on lines 1 and 2.
• A payment by a governmental agency to a medical clinic to
provide vaccinations to the general public is a contribution
reported on line 1. A payment by a governmental agency to a
medical clinic to provide vaccinations to employees of the
agency is program service revenue reported on line 2.
• A payment by a governmental agency to an organization to
provide job training and placement for disabled individuals is a
contribution reported on line 1. A payment by a governmental
agency to the same organization to operate the agency’s
internal mail delivery system is program service revenue
reported on line 2.
A6. Contributions received through other fundraising
organizations. Contributions received indirectly from the
public through solicitation campaigns conducted by federated
fundraising agencies (such as United Way) are included on line
1.
A7. Contributions received from associated
organizations. Include on line 1 amounts contributed by other
organizations closely associated with the filing organization.
This includes contributions received from a parent organization,
subordinate, or another organization having the same parent.
A8. Contributions from a commercial co-venture.
Include amounts contributed by a commercial co-venture on
line 1. These contributions are amounts received by the
organization for allowing an outside organization (donor) or
individual to use the recipient organization’s name in a sales
promotion campaign, such as where the outside organization
agrees to contribute 2% of all sales proceeds to the
organization.

At the time of any solicitation or payment, organizations
that are eligible to receive tax-deductible contributions
CAUTION
should advise patrons of the amount deductible for
federal tax purposes. See Pub. 1771, Charitable Contributions Substantiation and Disclosure Requirements.
A2. Contributions can arise from fundraising events
when items of only nominal or insubstantial value are
given or offered. If an organization offers goods or services of
only nominal or insubstantial value through a fundraising event,
or distributes free, unordered, low-cost items to patrons, report
the entire amount received for such benefits as a contribution
on line 1. See also the instruction for line 6, B1 regarding
nominal or insubstantial value. Report all related expenses on
lines 12 through 16.
Benefits have a nominal or insubstantial value if the
organization informs patrons how much of their payment is a
deductible contribution, and either:
1. The fair market value of all of the benefits received in
connection with the payment is not more than 2% of the
payment or $96, whichever is less, or
2. The payment is $48 or more and the only benefits
received in connection with the payment are token items
(bookmarks, calendars, key chains, mugs, posters, T-shirts,
etc.) bearing the organization’s name or logo. The cost to the
organization (as opposed to fair market value) of all benefits
received by a donor must, in the aggregate, be $9.60 or less.

!

B. What is not included on line 1?
B1. Grants that are payments for services are not
contributions. A grant is a payment for services, and not a
contribution, when the terms of the grant provide the grantor
with a specific service, facility, or product, rather than providing
a benefit to the general public or that part of the public served
by the grant recipient. The recipient organization would report
such a grant as income on line 2 (program service revenue).
B2. Donations of services or use of property. Do not
include the value of services donated to the organization (such
as the value of donated advertising space or broadcast air
time), or of the free use of property (such as equipment or
facilities), as contributions on line 1. However, for the optional
reporting of such amounts, see the instructions for donated
services in Part III.
Any unreimbursed expenses of officers, employees, or
volunteers do not belong on the Form 990-EZ. See the

A3. Contributions in the form of membership dues.
Include on line 1 membership dues and assessments to the
extent they are contributions and not payments for benefits
received. (See the instruction for line 3, C1.)
A4. Grants equivalent to contributions. Grants made to
encourage an organization receiving the grant to carry on
programs or activities that further the grant recipient’s exempt
purposes are grants that are equivalent to contributions. Report
them on line 1. The grantor can specify which of the recipient’s
activities the grant may be used for, such as an adoption
program or a disaster relief project.

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explanations of charitable contributions and employee business
expenses in Pub. 526, Charitable Contributions, and Pub. 463,
Travel, Entertainment, Gift, and Car Expenses, respectively.
B3. Section 501(c)(9), (17), and (18) organizations.
Section 501(c)(9) organizations provide participants with life,
sick, accident, or other similar benefits. Section 501(c)(17)
organizations provide participants with supplemental
unemployment benefits, and sickness and accident benefits
subordinate to supplemental unemployment benefits. Section
501(c)(18) organizations provide participants with pension(s)
and similar benefits. When such an organization receives
payments from participants, or their employers, to provide these
benefits, report the payments on line 2 as program service
revenue, rather than on line 1 as contributions.
C. How to value noncash contributions. Report noncash
contributions on line 1 at fair market (retail) value. If fair market
value cannot be readily determined, use an appraised or
estimated value. See also the instructions for Part II of
Schedule B.
D. Schedule of contributors. Attach Schedule B if required.
See the Specific Instructions for Completing the Heading of
Form 990-EZ, Item H, Schedule B.

government agency for providing a service, facility, or product
for the primary benefit of the general public.

Line 3. Membership Dues and Assessments
Enter members’ and affiliates’ dues and assessments that are
not contributions.

A. What is included on line 3?
A1. Dues and assessments received that compare
reasonably with the benefits of membership. When the
organization receives dues and assessments the value of which
compare reasonably with the value of benefits provided to
members (whether or not the membership benefits are used by
the members), report such dues and assessments on line 3.
A2. Organizations that generally match dues and
benefits. Organizations described in section 501(c)(5), (6), or
(7) generally provide benefits with a reasonable relationship to
dues, although benefits to members can be indirect.
B. Examples of membership benefits. These include
subscriptions to publications; newsletters (other than one about
the organization’s activities only); free or reduced-rate
admissions to events sponsored by the organization; use of the
organization’s facilities; and discounts on articles or services
that both members and nonmembers can buy. In figuring the
value of membership benefits, disregard such intangible
benefits as the right to attend meetings, vote, or hold office in
the organization, and the distinction of being a member of the
organization.

Section 501(c)(3) organizations must compute the
TIP amount of contributions according to the above
instructions in preparing the support schedule in Part II
or III of Schedule A (Form 990 or 990-EZ), Public Charity Status
and Public Support.

C. What is not included on line 3?

Line 2. Program Service Revenue Including
Government Fees and Contracts

C1. Dues or assessments received that exceed the value
of available membership benefits. Dues received by an
organization, to the extent they exceed the monetary value of
the membership benefits available to the dues payer, are a
contribution that should be reported on line 1.
C2. Dues received primarily for the organization’s
support. If a member pays dues primarily to support the
organization’s activities, and not to obtain benefits of more than
nominal or insubstantial monetary value, those dues are a
contribution to the organization includible on line 1.
Example. M is an organization whose primary purpose is to
support the local symphony orchestra. Members have the
privilege of purchasing subscriptions to the symphony’s annual
concert series before they go on sale to the general public, but
must pay the same price as any other member of the public.
They also are entitled to attend a number of rehearsals each
season without charge. Under these circumstances, M’s
receipts from members are contributions reported on line 1.

Enter the total program service revenue (exempt function
income). Program services are primarily those that form the
basis of an organization’s exemption from tax.
A. Examples. A clinic would include on line 2 all of its charges
for medical services (whether to be paid directly by the patients
or through Medicare, Medicaid, or other third-party
reimbursement), laboratory fees, and related charges for
services.
Program service revenue also includes tuition received by a
school; revenue from admissions to a concert or other
performing arts event or to a museum; royalties received as
author of an educational publication distributed by a commercial
publisher; payments received by a section 501(c)(9)
organization from participants or employers of participants for
health and welfare benefits coverage; and registration fees
received in connection with a meeting or convention.
B. Program-related investment income. Program service
revenue also includes income from program-related
investments. These investments are made primarily to
accomplish an exempt purpose of the investing organization
rather than to produce income. Examples of program-related
investments are scholarship loans and low-interest loans to
charitable organizations, indigents, or victims of a disaster. See
also the instructions for line 4.
Rental income received from an exempt function is another
example of program-related investment income, such as
below-market rents from housing leased to low-income
persons. For purposes of this return, report all rental income
from an affiliated organization on line 2.
C. Unrelated trade or business activities. Unrelated trade or
business activities (other than fundraising activities that are not
regularly carried on) that generate fees for services can also be
program service activities. A social club, for example, should
report as program service revenue the fees it charges both
members and nonmembers for the use of its tennis courts and
golf course.
D. Government fees and contracts. Program service
revenue includes income earned by the organization for
providing a government agency with a service, facility, or
product that benefited that government agency directly rather
than benefiting the public as a whole. See line 1, instruction A5,
for reporting guidelines when payments are received from a

Line 4. Investment Income
A. What is included on line 4?
A1. Interest on savings and temporary cash
investments. Include the amount of interest received from
interest-bearing checking accounts, savings, and temporary
cash investments, such as money market funds, commercial
paper, certificates of deposit, and U.S. Treasury bills or other
governmental obligations that mature in less than one year.
So-called dividends or earnings received from mutual savings
banks, money market funds, etc., are actually interest and
should be included on this line.
A2. Dividends and interest from securities. Include
dividends from equity securities (stocks), and interest income
from debt securities and notes and loans receivable, other than
program-related investments. Include amounts received from
payments on securities loans, as defined in section 512(a)(5).
A3. Gross rents. Include gross rental income received
during the year from investment property (other than
program-related investments reported on line 2).
A4. Other investment income. Include, for example,
royalties received by the organization from licensing the
ongoing use of its property to others (other than royalties
generated in the conduct of the organization’s exempt function,
such as royalties received from a publisher for an educational

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• Expense of sale and cost of improvements made after

work authored by the organization). Typically, royalties are
received for the use of intellectual property, such as copyrights,
patents, and trademarks. Royalties also include payments to
the owner of property for the right to exploit natural resources
on the property, such as oil, natural gas, or minerals.

acquisition, and
• Depreciation since acquisition, if depreciable property.

Line 6a. Gaming
Report gross income from gaming in line 6a if the organization
conducted directly, or through a promoter, any amount of
gaming during the year. Report the gross income from all
gaming activities (other than gaming that is incidental to a
fundraising event such as a dinner/dance), whether or not
regularly carried on, in line 6a.
Gaming includes (but is not limited to), bingo, pull tabs,
instant bingo (including satellite and progressive bingo), Texas
Hold-Em Poker and other card games, raffles, scratch-offs,
charitable gaming tickets, break-opens, hard cards, banded
tickets, jar tickets, pickle cards, Lucky Seven cards, Nevada
Club tickets, casino nights/Las Vegas nights (other than events
not regularly carried on in which participants can play
casino-style games but the only prizes or auction items
provided to participants are noncash items that were donated to
the organization, which events are fundraising events), and
coin-operated gambling devices. Coin-operated gambling
devices include slot machines, electronic video slot or line
games, video poker, video blackjack, video keno, video bingo,
video pull tab games, etc.
Many games of chance are taxable. Income from bingo
games is generally not subject to the tax on unrelated business
income if the games meet the legal definition of bingo. For a
game to meet the legal definition of bingo, wagers must be
placed, winners must be determined, and prizes or other
property must be distributed in the presence of all persons
placing wagers in that game.
A wagering game that does not meet the legal definition of
bingo does not qualify for the exclusion, regardless of its name.
For example, “instant bingo” in which a player buys a
pre-packaged bingo card with pull-tabs that the player removes
to determine if he or she is a winner, does not qualify. See Pub.
598, Tax on Unrelated Business Income of Exempt
Organizations, and Form 990-T.
Line 6b. Fundraising events. Enter the gross income from all
fundraising events and activities, such as dinners, dances,
carnivals, concerts, sports events, auctions, and door-to-door
sales of merchandise.
Fundraising events and activities only incidentally
accomplish an exempt purpose. Their sole or primary purpose
is to raise funds to finance the organization’s exempt activities.
They do not include events or activities that substantially further
the organization’s exempt purpose even if they also raise funds.
They do not include activities regularly carried on. Fundraising
events do not include gaming, gross income from which is
reported on line 6a.
Example. An organization formed to promote and preserve
folk music and related cultural traditions holds an annual folk
music festival featuring concerts, handicraft demonstrations,
and similar activities. Because the festival directly furthers the
organization’s exempt purpose, income from ticket sales should
be reported on line 2 as program service revenue.
Fundraising events and activities raise funds by offering
goods or services that have more than a nominal or
insubstantial value (compared to the price charged) for a
payment that is more than the direct cost of those goods or
services. See line 1 instructions A1 and A2 for a discussion on
contributions reportable on line 1 and revenue reportable on
line 6b.
The fact that tickets, advertising, or solicitation materials
refer to a required payment as a donation or contribution does
not control how these payments should be reported on Form
990-EZ.
The gross income from fundraising events must be reported
in the right-hand column on line 6b without reduction for cash or
noncash prizes, cost of goods sold, compensation, fees, or
other expenses.

B. What is not included on line 4?
B1. Capital gains dividends and unrealized gains and
losses. Do not include on this line any capital gains dividends.
They are reported on line 5. Also do not include unrealized
gains and losses on investments carried at market value. See
the instructions for line 20.
B2. Exempt function revenue (program service). Do not
include on line 4 amounts that represent income from an
exempt function (program service). Report these amounts on
line 2 as program service revenue. Report expenses related to
this income on lines 12 through 16.
Exempt function rental income. An organization whose
exempt purpose is to provide low-rental housing to persons with
low income receives exempt function income from such rentals.
An organization receives exempt function income if it rents or
sublets rental space to a tenant whose activities are related to
the filing organization’s exempt purpose. Report rental income
received in these instances on line 2 and not on line 4. Only for
purposes of completing this return, treat income from renting
property to affiliated exempt organizations as exempt function
income and include such income on line 2 as program service
revenue.
Other program-related investments. Investment income
from program-related investments should be reported on line 2.
See the line 2 instructions for a discussion of program-related
investments. Gains or losses from the sale of program-related
investment assets are reported on line 5.

Lines 5a through 5c. Gains (or Losses) From
Sale of Assets Other Than Inventory
A. What is included on line 5?
Report on line 5a all sales of securities and sales of all other
types of investments (such as real estate, royalty interests, or
partnership interests) as well as sales of all other non-inventory
assets (such as program-related investments and fixed assets
used by the organization in its related and unrelated activities).
Also report capital gains dividends, the organization’s share of
capital gains and losses from a partnership, and capital gains
distributions from trusts.
Total the cost or other basis (less depreciation) and selling
expenses and enter the result on line 5b. On line 5c, enter the
net gain or loss.
For reporting sales of securities on Form 990-EZ, the
organization can use the more convenient way to figure the
organization’s gain or loss from sales of securities by
subtracting from the sales price the average-cost basis of the
particular security sold. However, the average-cost basis is not
used to figure the gain or loss from sales of securities
reportable on Form 990-T.

B. What is not included on line 5?
Do not include on line 5 any unrealized gains or losses on
securities that are carried in the books of account at market
value. See the instructions for line 20.

C. Books and records
The organization should maintain books and records to
substantiate information regarding any securities or other
assets sold for which market quotations were not published or
were not otherwise readily available. The recorded information
should include:
• A description of the asset,
• Date acquired,
• Whether acquired by donation or purchase,
• Date sold and to whom sold,
• Gross sales price,
• Cost, other basis, or if donated, value at time acquired,

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A. What is included on line 6b?

appreciation and sale; report sales of these investments on line
5.

Gross revenue/contributions. When an organization
receives payments for goods or services offered through a
fundraising event, enter:
1. As gross revenue, on line 6b (in the right-hand column),
the retail value of the goods or services,
2. As a contribution, on both line 1 and line 6b (within the
parentheses), any amount received that exceeds the retail
value of the goods or services given.

Line 7b. Cost of goods sold. On line 7b, report the cost of
goods sold related to sales of such inventory. The usual items
included in cost of goods sold are direct and indirect labor,
materials and supplies consumed, freight-in, and a proportion of
overhead expenses. Marketing and distribution expenses are
not includible in cost of goods sold but are reported on lines 12
through 16.

Line 8. Other Revenue

Example. At a fundraising event, an organization received
$100 in gross receipts for goods valued at $40. The
organization entered gross revenue of $40 on line 6b and
entered a contribution of $60 on both line 1 and within the
parentheses on line 6b. The contribution was the difference
between the gross revenue of $40 and the gross receipts of
$100.

Enter the total income from all sources not covered by lines 1
through 7. Examples of types of income includible on line 8 are
interest on notes receivable not held as investments or as
program-related investments (defined in the line 2 instructions);
interest on loans to officers, directors, trustees, key employees,
and other employees; and royalties that are not investment
income or program service revenue.

B. What is not included on line 6b?

Expenses:
Line 10. Grants and Similar Amounts Paid

B1. Sales or gifts of goods or services of only nominal
or insubstantial value. If the goods or services offered at the
fundraising event have only nominal or insubstantial value,
include all of the receipts as contributions on line 1 and all of
the related expenses on lines 12 through 16.
B2. Sweepstakes, raffles, and lotteries. Report gross
income from gaming on line 6a. Report as a contribution, on
line 1, the proceeds of solicitation campaigns in which the
names of contributors and other respondents (who were not
required to make a minimum payment) are entered in a drawing
for prizes.
Where a minimum payment is required for each raffle or
lottery entry and prizes of only nominal or insubstantial value
are awarded, report any amount received as a contribution.
Report the related expenses on lines 12 through 16.
B3. Activities that generate only contributions are not
fundraising events. An activity that generates only
contributions, such as a solicitation campaign by mail, is not a
fundraising event. Any amount received should be included on
line 1 as a contribution. Related expenses are reportable on
lines 12 through 16.

A. What is included on line 10?
Enter the amount of actual grants and similar amounts paid to
individuals and organizations selected by the filing organization.
Include scholarship, fellowship, and research grants to
individuals.
A1. Specific assistance to individuals. Include on this
line the amount of payments to, or for the benefit of, particular
clients or patients, including assistance by others at the
organization’s expense.
A2. Payments, voluntary awards, or grants to affiliates.
Include on line 10 certain types of payments to organizations
affiliated with (closely related to) the filing organization. These
payments include predetermined quota support and dues
payments by local organizations to their state or national
organizations.

!

CAUTION

C. Attach Schedule G, Parts II and III

If the organization uses Form 990-EZ for state reporting
purposes, be sure to distinguish between payments to
affiliates and awards and grants. See Appendix G.

B. What is not included on line 10?

If the organization reports more than $15,000 on line 6a, then it
must complete Part III (Gaming) of Schedule G (Form 990 or
990-EZ), Supplemental Information Regarding Fundraising or
Gaming Activities. If the sum of the organization’s gross income
and contributions from fundraising events (including the
amounts reported on line 6b and in the parentheses for line 6b),
is greater than $15,000, then it must complete Schedule G, Part
II (Fundraising Events). Organizations filing Form 990-EZ are
not required to complete Schedule G, Part I (Fundraising
Activities).
Lines 6c-d. Direct expenses and net income or (loss) from
gaming and fundraising events. Report on line 6c direct
expenses related to gaming activities and direct expenses
attributable to the organization’s provision of goods or services
from which it derived gross income at a fundraising event. Do
not report fundraising expenses attributable to contributions
reported on line 1. These expenses are reportable on lines 12
through 16. If an expense is included on line 6c, do not report it
again on line 7b.
To calculate net income or (loss) on line 6d, add lines 6a
and 6b, then subtract line 6c.

B1. Administrative expenses. Do not include on this line
expenses made in selecting recipients or monitoring
compliance with the terms of a grant or award. Enter those
expenses on lines 12 through 16.
B2. Purchases of goods or services from affiliates. Do
not report the cost of goods or services purchased from
affiliates on line 10. Report these expenses on lines 12 through
16.
B3. Membership dues paid to another organization.
Report membership dues that the organization pays to another
organization (other than an affiliated organization) for general
membership benefits, such as regular services, publications,
and materials, on line 16.

C. Grantee list on Schedule O
List on Schedule O each grantee organization or individual to
whom the organization made grants (or paid similar amounts) in
excess of $5,000 during the organization’s tax year. For each
grantee, list:
• Each class of activity,
• The grantee’s name and address (for grantee organizations,
not grantee individuals),
• The amount given (aggregate amount of grants and
payments to or for the benefit of the grantee during the
organization’s tax year), and
• The relationship of the grantee (in the case of grants to
individuals) if the relationship is by blood, marriage, adoption, or
employment (including employees’ children) to any person or
corporation with an interest in the organization, such as a
creator, donor, director, trustee, officer, key employee, etc.

Lines 7a through 7c. Gross Sales of Inventory
Line 7a. Sales of inventory. Include on line 7a the gross
sales (less returns and allowances) of inventory items, whether
the sales activity is an exempt function or an unrelated trade or
business. Inventory items are goods the organization makes to
sell to others, or that it buys for resale. Include all inventory
sales except sales of goods at fundraising events, which are
reportable on line 6. Do not include on line 7 sales of
investments on which the organization expected to profit by

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If the individual grantee is related to a grantor or
contributor to the organization, then do not provide the
CAUTION
name of the grantor or contributor. Instead, identify such
persons generically as “grantee” and as “grantor” or
“contributor.”
If any affiliate received any payment reported on line 10,
then so indicate, and also specify the purpose of the payment.
Classify activities on this schedule in more detail than by
using such broad terms as charitable, educational, religious, or
scientific. For example, identify payments to affiliates; payments
for nursing services; fellowships; and payments for food,
shelter, or medical services for indigents or disaster victims.
Colleges, universities, and primary and secondary schools
reporting scholarships or other financial assistance can instead
include in Schedule O a statement that (a) groups each type of
financial aid provided; (b) indicates the number of individuals
who received the aid; and (c) specifies the aggregate dollar
amount.
If an organization gives property other than cash and
measures an award or grant by the property’s fair market value,
also show on this schedule:
• A description of the property,
• The book value of the property,
• How the organization determined the book value,
• How the organization determined the fair market value, and
• The date of the gift.
Any difference between a property’s fair market value and
book value should be recorded in the organization’s books of
account and on line 20.

Do not include any penalties, fines, or judgments imposed
against the organization as a result of legal proceedings; report
and identify those expenses on line 16. Report on line 12 fees
paid to directors and trustees. Also report on line 12
compensation to employees that provide fundraising, legal,
accounting, or other professional services as part of their
employment. Report broker fees/commissions as sales
expenses on line 5b.

!

In some cases the organization can be required to
TIP report payments to an independent contractor on Form
1099-MISC, Miscellaneous Income.

Line 14. Occupancy, Rent, Utilities, and Maintenance
Enter the total amount paid or incurred for the use of office
space or other facilities, including rent or mortgage interest;
heat, light, power, and other utilities; outside janitorial services;
real estate taxes and property insurance attributable to rental
property; and similar expenses.
These expenses relate to real property actually occupied by
the organization, whether as tenant or owner, or used in the
conduct of exempt functions (such as low-income rental
housing). Report on line 16 expenses relating to real property
used for investment purposes. If the organization occupies part
of the property and leases a part to others, then expenses must
be reasonably allocated between occupancy-related and
investment-related expenses, and reported accordingly on lines
14 and 16.
If the organization records depreciation on property it
occupies, enter the total for the year. For an explanation of
acceptable methods for computing depreciation, see Pub. 946.
Do not subtract from rental expenses reported on line 14 or
16 any rental income received from renting or subletting rented
space. See the instructions for lines 2 and 4 to determine
whether such income is reportable as exempt function income
or investment income. However, report on line 14 or 16 any
rental expenses for rental income reported on lines 2 and 4.

Line 11. Benefits Paid To or For Members
For an organization that gives benefits to members or
dependents (such as organizations exempt under section
501(c)(8), (9), or (17)), enter the amounts paid for: (a) death,
sickness, hospitalization, or disability benefits; (b)
unemployment compensation benefits; and (c) other benefits.
Report on line 12, rather than line 11, the cost of
employment-related benefits (such as health insurance) that the
organization gives its officers and employees.

Line 15. Printing, Publications, Postage, and
Shipping
Enter the printing and related costs of producing the filing
organization’s own newsletters, leaflets, films, and other
informational materials on this line. Include the costs of outside
mailing services on this line. Also include the cost of any
purchased publications as well as postage and shipping costs
not reportable on line 5b, 6b, or 7b. Do not include any
expenses, such as salaries, for which a separate line is
provided.

Line 12. Salaries, Other Compensation, and
Employee Benefits
Enter the total salaries and wages paid to all officers and
employees and payments made to directors and trustees.
Include the total of the employer’s share of deferrals (for
unfunded plans) and 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.

Line 16. Other Expenses
Report expenses here that are not reportable on lines 10
through 15. Include here such expenses as penalties, fines, and
judgments; unrelated business income taxes; insurance,
interest, depreciation, and real estate taxes not reported as
occupancy expenses; travel and transportation costs; and
expenses for conferences, conventions, and meetings.
Some states that accept Form 990-EZ in satisfaction of their
filing requirements may require that certain types of
miscellaneous expenses be itemized. See Appendix G.

Complete Form 5500, Annual Return/Report of
TIP Employee Benefit Plan, if the organization is required to
file it.
Also include in the total the amount of federal, state, and
local payroll taxes for the year that are imposed on the
organization as an employer. This includes the employer’s
share of social security and Medicare taxes, Federal
unemployment tax (FUTA), state unemployment compensation
tax, and other state and local payroll taxes. Taxes withheld from
employees’ salaries and paid over to the various governmental
units (such as Federal and state income taxes and the
employees’ share of social security and Medicare taxes) are
part of the employees’ salaries included on line 12. Report
expenses paid or incurred for employee events such as a picnic
or holiday party on this line.

Net Assets:
Line 18. Excess or (Deficit) for the Year
Enter the difference between lines 9 and 17. If line 17 is more
than line 9, enter the difference in parentheses.

Line 19. Net Assets or Fund Balances at Beginning of
Year
Enter the end-of-year amount from the balance sheet on the
prior year’s return.

Line 13. Professional Fees and Other Payments to
Independent Contractors

Line 20. Other Changes in Net Assets or Fund
Balances

Enter the total amount of legal, accounting, auditing, other
professional fees (such as fees for fundraising or investment
services) and related expenses charged by outside firms and
individuals who are not employees of the organization.

Explain in Schedule O any changes in net assets or fund
balances between the beginning and end of the organization’s
tax year that are not accounted for by the amount on line 18.

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Amounts to report here include adjustments of earlier years’
activity; unrealized gains and losses on investments carried at
market value; and any difference between fair market value and
book value of property given as an award or grant. See General
Instructions C, Accounting Periods and Methods, regarding the
reporting of a section 481(a) adjustment to conform to SFAS
116 (ASC 958).

Step

Part II. Balance Sheet
Every organization must complete columns (A) and (B) of Part II
of the return and cannot submit a substitute balance sheet.
Failure to complete Part II can result in penalties for filing an
incomplete return. If there is no amount to report in column (A),
Beginning of year, enter a zero in that column.

3

Some states require more information. See Appendix G for
more information about completing a Form 990-EZ to be filed
with any state or local government agency.

4

Line 22. Cash, Savings, and Investments
Include all interest and non-interest bearing accounts such as
petty cash funds, checking accounts, savings accounts, money
market funds, commercial paper, certificates of deposit, U.S.
Treasury bills, and other government obligations. Also include
the book value of securities held as investments, and all other
investment holdings including land and buildings held for
investment. Report the income from these investments on line
4; report income from program-related investments on line 2.

Line 23. Land and Buildings
Enter the book value (cost or other basis less accumulated
depreciation) of all land and buildings owned by the
organization and not held for investment.

5

Line 24. Other Assets
Enter total of other assets along with a description of those
assets. Amounts to include here are (among others) accounts
receivable, inventories, and prepaid expenses.

Line 25. Total Assets

6

Enter amount of total assets. If the end-of-year total assets
entered in column (B) are $500,000 or more, Form 990 must be
filed instead of Form 990-EZ.

Line 26. Total Liabilities
Liabilities include such items as accounts payable, grants
payable, mortgages or other loans payable, and deferred
revenue (revenue received but not yet earned).

Line 27. Net Assets or Fund Balances
Subtract line 26 (total liabilities) from line 25 (total assets) to
determine net assets. Enter this net asset amount on line 27.
The amount entered in column (B) must agree with the net
asset or fund balance amount on line 21.

Action
Describe the activity’s objective, for both this time
period and the longer-term goal, if the output is
intangible, such as in a research activity.
• Give reasonable estimates for any statistical
information if exact figures are not readily available.
Indicate that this information is estimated.
• Be clear, concise, and complete in the description.
Avoid attaching brochures, newsletters, newspaper
articles about the organization, etc.
Public interest law firm. A public interest law firm exempt
under section 501(c)(3) or 501(c)(4) must list in Schedule
O all the cases in litigation or that have been litigated
during the year. For each case, describe the matter in
dispute and explain how the litigation will benefit the public
generally. Also enter the fees sought and recovered in
each case. See Rev. Proc. 92-59, 1992-2 C.B. 411.
Expenses and Grants. For each program service
reported on lines 28 – 31, section 501(c)(3) and 501(c)(4)
organizations and section 4749(a)(1) trusts must enter, in
the “Expenses” column, the total expenses included on
line 17 for that program service. These organizations also
must enter, in the “Grants” space for each program
service, the total grants and similar amounts reported on
line 10 for that program service. If the amount of grants
entered includes foreign grants, check the box to the left of
the “Expenses” column. For all other organizations,
entering expenses and grants and checking the foreign
grants box is optional.
Describe in Schedule O the organization’s other program
services.
• The detailed information required for the three largest
services is not necessary for this schedule.
• However, section 501(c)(3) and (4) organizations,
and section 4947(a)(1) nonexempt charitable trusts
must show the expenses and grants attributable to
their program services.
The organization can report the amount of any donated
services, or use of materials, equipment, or facilities it
received or utilized in connection with a specific program
service.
• Disclose the applicable amounts of any donated
services, etc., on the lines for the narrative
description of the appropriate program service.
• Do not include these amounts in the expense column
in Part III.
• See the instructions for line 1, B2.
•

Part IV. List of Officers, Directors,
Trustees, and Key Employees
List each person who was an officer, director, trustee, or key
employee (defined below) of the organization at any time during
the organization’s tax year, even if they did not receive any
compensation from the organization.

States that accept Form 990-EZ as their basic report form
may require a separate statement of changes in net assets.
See Appendix G.

Part III. Statement of Program Service
Accomplishments

Form 990-EZ filers have two options for reporting
TIP compensation (see instructions for Part IV, columns
(c) – (e)).
Officer. An officer is a person elected or appointed to
manage the organization’s daily operations, such as a
president, vice-president, secretary, or treasurer. The officers of
an organization are determined by reference to its organizing
document, bylaws, or resolutions of its governing body, but at a
minimum include those officers required by applicable state law.
Director or Trustee. A director or trustee is a member of
the organization’s governing body, but only if the member has
voting rights. The governing body is the group of persons
authorized under state law to make governance decisions on
behalf of the organization and its shareholders or members, if
applicable. The governing body is, generally speaking, the
board of directors (sometimes referred to as board of trustees)

A program service is a major (usually ongoing) objective of an
organization, such as adoptions, recreation for the elderly,
rehabilitation, or publication of journals or newsletters.
Step
Action
1
Enter the organization’s primary exempt purpose.
2
All organizations must describe their exempt purpose
achievements for each of their three largest program
services (as measured by total expenses incurred).
• Describe program service accomplishments through
measurements such as clients served, days of care,
number of sessions or events held, or publications
issued.

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of a corporation or association, or the board of trustees of a
trust (sometimes referred to simply as the trustees, or trustee, if
only one trustee).
Key employee. A key employee is any person having
responsibilities or powers similar to those of officers, directors,
or trustees. The term includes the chief management and
administrative officials of an organization (such as an executive
director or chancellor). A chief financial officer and the officer in
charge of the administration or program operations are both key
employees if they have the authority to control the
organization’s activities, its finances, or both.
Enter a zero in columns (c), (d), and (e) (leave column (e)
blank if Option 1 compensation reporting, described below, is
used) if no hours were entered in column (b) and no
compensation, contributions, expenses, and other allowances
were paid during the year or deferred for payment to a future
year.
Enter all forms of cash and noncash compensation received
by each listed officer, director, trustee, and key employee,
whether paid currently or deferred, as described more fully
under the Option 1 and Option 2 instructions below.
If the organization pays any other person, such as a
management services company, for the services provided by
any of the organization’s officers, directors, trustees, or key
employees, report the compensation and other items in Part IV
as if the organization had paid the officers, directors, trustees,
and key employees, directly.
A failure to fully complete Part IV can subject both the
organization and the individuals responsible for such failure to
penalties for filing an incomplete return. See General Instruction
G. In particular, entering the phrase on Part IV, “Information
available upon request,” or a similar phrase, is not acceptable.
In addition to the information required in Part IV, the
organization can explain in Schedule O the entire annual
compensation package for any person listed in Part IV.
Form 941 must be filed to report income tax withholding and
social security and Medicare taxes. The organization must also
file Form 940 to report Federal unemployment tax, unless the
organization is not subject to these taxes. See Pub. 15 (Circular
E) for more information.
Amounts paid or accrued by certain other organizations
treated as paid or accrued by the filing organization. Treat
as paid, accrued, or held directly by the organization any
amounts paid or accrued under a deferred compensation plan,
or held by a deferred compensation trust, that is established,
sponsored, or maintained by the organization.
Treat as paid or accrued directly by the organization any
amounts paid or accrued by a common paymaster as defined in
Regulations section 31.3121(s)-1(b) for services performed for
the organization.

In column (b), a numerical estimate of the average hours per
week devoted to the position is required for a complete answer.
Statements such as “as needed” or “as required” or “40+” are
unacceptable.

Columns (c)–(e)
Two methods to report compensation in columns (c) – (e).
The organization can report the compensation of officers,
directors, trustees, and key employees in accordance with
either Option 1 or Option 2. Option 1 is similar to the Form 990
method of compensation reporting but simplified. Option 2 is
essentially the 2007 Form 990-EZ method of compensation
reporting. The option selected must be used consistently from
year to year, and must be used for all officers, directors,
trustees, and key employees (and, for section 501(c)(3)
organizations, for their five highest compensated employees in
Part VI).
Option 1 (Form W-2 method). All compensation reporting
under Option 1 is based on the calendar year ending with or
within the organization’s tax year. For example, if a fiscal-year
organization’s tax year is the 12-month period ending June 30,
2011, the organization must report compensation for the
calendar year ending December 31, 2010.
Option 1 — column (c). Enter the person’s reportable
compensation. Reportable compensation consists of:
• For officers and other key employees – amounts required to
be reported in box 5 of Form W-2;
• For directors and individual trustees – amounts required to
be reported in box 7 of Form 1099-MISC (plus box 5 of Form
W-2 if also compensated as an officer or employee); and
• For institutional trustees (such as banks or trust companies)
– fees for services paid pursuant to a contractual agreement or
statutory entitlement.
If the organization did not file a Form 1099-MISC because
the amounts paid were below the threshold reporting
requirement, then include and report the amount actually paid.
Corporate officers are considered employees for
TIP purposes of Form W-2 reporting, unless they perform no
services as officers, or perform only minor services and
neither receive nor are entitled to receive, directly or indirectly,
any compensation. Corporate directors are considered
independent contractors, not employees, and director
compensation, if any, generally is required to be reported on
Form 1099-MISC. See Regulations section 31.3401(c)-1(f).
For certain kinds of employees, such as certain members of
the clergy and religious workers who are not subject to social
security and Medicare taxes as employees, box 5 of Form W-2
can be zero or blank. In such case, the amount required to be
reported in box 1 of Form W-2 must be reported as reportable
compensation in column (c).
Option 1 — column (d). Report the following items of
deferred compensation and benefits:
1. Tax-deferred amounts and tax-deferred contributions by
the employer to a qualified defined-contribution retirement plan;
2. The annual increase in actuarial value of a qualified
defined benefit plan, whether or not funded or vested;
3. The value of health benefits provided by the employer,
that are not included in reportable compensation. For this
purpose, health benefits provided by the employer include
payments of health benefit plan premiums, medical
reimbursement and flexible spending programs, and the value
of health coverage (rather than actual benefits paid) provided
by an employer’s self-insured or self-funded arrangement.
Health benefits include medical, dental, optical, drug, and
medical equipment benefits. They do not include disability or
long-term care insurance premiums or allocated benefits for this
purpose;
4. The employer and employee shares of deferral under an
unfunded non-qualified defined contribution plan and
contributions paid to a funded non-qualified defined contribution
plan whether or not vested or subject to a substantial risk of
forfeiture; and

Column (a)
Enter the name and address of each person who was an
officer, director, trustee, or key employee (defined above) at
any time during the organization’s tax year.
Aid in the processing of the organization’s return by grouping
together, preferably at the end of the list, those who received no
compensation. Be careful not to repeat names.
Up to 18 persons can be reported on the Form 990-EZ, Part
IV table. If more space is needed to enter additional persons,
use as many duplicates of the Part IV table as are needed.
Give the preferred address at which officers, directors,
trustees, and key employees want the Internal Revenue Service
to contact them, whether home address, business address, or
the organization’s address listed on page 1 of Form 990-EZ.
This information, like the other information in the Form 990-EZ,
will be available to the public.

Column (b)
Enter each person’s title or position with the organization. Enter
all titles or positions if more than one (for instance, President
and Director).

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• Report and pay an excise tax, equal to premiums paid, on
Form 4720.

5. The annual increase in actuarial value of a non-qualified
defined benefit plan, whether or not funded, vested, or subject
to a substantial risk of forfeiture.

A personal benefit contract is generally any life insurance,
annuity, or endowment contract that benefits, directly or
indirectly, the transferor, a member of the transferor’s family, or
any other person designated by the transferor (other than an
organization described in section 170(c)). See section
170(f)(10); Notice 2000-24, 2000-1 C.B. 952; and
Announcement 2000-82, 2000-2 C.B. 385.

Reasonable estimates can be used if precise cost figures are
not readily available to determine column (d) amounts.
Option 1 — column (e). Leave column (e) blank.
Option 2 (pre-2008 method). For purposes of reporting all
amounts in columns (b) through (e) in Part IV, fiscal-year
organizations either can use their tax year, or the calendar year
ending within such tax year. Whichever year is selected (tax
year or calendar year) must be used consistently from year to
year, and must be used for all officers, directors, trustees, and
key employees (and, for 501(c)(3) organizations, for their five
highest compensated employees in Part VI).

Line 33. Change in Activities
Describe in Schedule O any significant activities initiated during
the past 3 years that were not previously reported to the IRS on
Form 990-EZ or Form 990. Also describe significant activities
that were discontinued.

Option 2 — column (c). For each person listed, enter
salary, fees, bonuses, and severance payments paid. Include
current-year payments of amounts reported or reportable as
deferred compensation in any prior year.

An organization must report new, significant program
TIP services or significant changes in how it conducts
program services in Part III of Form 990-EZ, rather than
in a letter to the IRS Exempt Organization Determination Office
(“EO Determination”). EO Determination no longer issues
letters confirming the tax-exempt status of organizations that
report such new services or significant changes.

Option 2 — column (d). Include in this column all forms of
deferred compensation and future severance payments
(whether or not funded; whether or not vested or subject to a
substantial risk of forfeiture; and whether or not the deferred
compensation plan is a qualified plan under section 401(a)).
Include also payments to welfare benefit plans on behalf of the
officers, directors, trustees, and key employees. Such plans
provide benefits such as medical, dental, life insurance,
severance pay, disability, directors, trustees, and key
employees. Reasonable estimates can be used if precise cost
figures are not readily available.

Line 34. Changes in Organizing or Governing
Documents
The organization must report significant changes to its
organizing or enabling document by which it was created
(articles of incorporation, association, or organization; trust
instrument; constitution; or similar document), and to its rules
governing its affairs, commonly known as bylaws (or
regulations, operating agreement, or similar document). Report
changes made since the prior Form 990-EZ was filed, or that
were not reported on any prior Form 990, and that were made
before the end of the tax year.
Examples of significant changes to the organizing or
governing documents include changes to:
• The organization’s name;
• The organization’s exempt purposes or mission;
• The number, composition, qualifications, authority, or duties
of the governing body’s voting members;
• The number, composition, qualifications, authority, or duties
of the organization’s officers or key employees;
• The role of the organization’s members in governance;
• The distribution of assets upon dissolution;
• The provisions to amend the organizing or enabling
document or bylaws;
• The quorum, voting rights, or voting approval requirements of
the governing body members or the organization’s stockholders
or membership;
• The policies or procedures contained within the organizing
documents or bylaws regarding compensation of officers,
directors, trustees, or key employees, conflicts of interest,
whistleblowers, or document retention or destruction; and
• The composition or procedures of an audit committee
contained within the organizing document or bylaws.
Examples of insignificant changes made to organizing or
governing documents that are not required to be reported here
include changes to the organization’s registered agent with the
state and to the required or permitted number or frequency of
governing body or member meetings.
Describe significant changes on Schedule O (Form 990 or
990-EZ), but do not attach a copy of the amendments or
amended document to Form 990-EZ (or recite the entire
amended document verbatim), unless such amended
documents reflect a change in the organization’s name. See the
instructions for Item B. Checkboxes, earlier, regarding
attachments required in the event of a change in the
organization’s name, which attachments must be conformed
copies of the original documents.
A conformed copy is one that agrees with the original
document and all amendments to it. If the copies are not
signed, they must be accompanied by a written declaration
signed by an officer authorized to sign for the organization,

Unless the amounts were 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 paid by the date the organization files its return.
Option 2 — column (e). Enter both taxable and
nontaxable fringe benefits, other than:
1. Working condition fringe benefits described in section
132(d),
2. Expense reimbursements and allowances under an
accountable plan described in Regulations section 1.62-2(c)(2),
and
3. De minimis fringe benefits described in section 132(e).
Include amounts that the recipients must report as income on
their separate income tax returns. Examples include amounts
for which the recipient did not account to the organization or
allowances that were more than the payee spent on serving the
organization. Include payments made under indemnification
arrangements, the value of the personal use of housing,
automobiles, or other assets owned or leased by the
organization (or provided for the organization’s use without
charge), as well as any other taxable and nontaxable fringe
benefits. See Pub. 525, Taxable and Nontaxable Income, for
more information.

Part V. Other Information
Required Statements
1. Schedule A attachment. Section 501(c)(3) organizations
and section 4947(a)(1) nonexempt charitable trusts must
complete and attach Schedule A (Form 990 or Form 990-EZ),
Public Charity Status and Public Support.
2. Statement regarding personal benefit contract. If, in
connection with a transfer to or for the use of the organization,
the organization directly or indirectly pays premiums on any
personal benefit contract, or there is an understanding or
expectation that any person will directly or indirectly pay such
premiums, the organization must do the following:
• Attach a statement describing the organization’s
involvement with the personal benefit contract(s);
• Report on Form 8870 the premiums that the organization
paid, and the premiums paid by others but treated as paid by
the organization; and

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certifying that they are complete and accurate copies of the
original documents. Photocopies of articles of incorporation
showing the certification of an appropriate state official need not
be accompanied by such a declaration. See Rev. Proc. 68-14,
1968-1 C.B. 768, for details. When a number of changes are
made, attach a copy of the entire revised organizing instrument
or governing document.
However, if the exempt organization changes its legal
structure, such as from a trust to a corporation, the new legal
entity must file a new exemption application to establish that it
qualifies for exemption.

the organization had $1,000 or more of unrelated business
income. See also Rev. Proc. 98-19, 1998-1 C.B. 547.
Exception 1. Section 6033(e)(3) exception for
nondeductible dues.
1. All organizations exempt from tax under section 501(a),
other than sections 501(c)(4), 501(c)(5), and 501(c)(6)
organizations;
2. Local associations of employees’ and veterans’
organizations described in section 501(c)(4), but not section
501(c)(4) social welfare organizations;
3. Labor unions and other labor organizations described in
section 501(c)(5), but not section 501(c)(5) agricultural and
horticultural organizations;
4. Sections 501(c)(4), 501(c)(5), and 501(c)(6)
organizations that receive more than 90% of their dues from:
a. Section 501(c)(3) organizations,
b. State or local governments,
c. Entities whose income is exempt from tax under section
115, or
d. Organizations described in 1 through 3, above;
5. Section 501(c)(4) and (5) organizations that receive more
than 90% of their annual dues from:
a. Persons,
b. Families, or
c. Entities
that each paid annual dues of $101 or less in 2010 (adjusted
annually for inflation). See Rev. Proc. 2009-50, 2009-2 C.B.
617;
6. Any organization that receives a private letter ruling from
the IRS stating that the organization satisfies the section
6033(e)(3) exception;
7. Any organization that keeps records to substantiate that
90% or more of its members cannot deduct their dues (or
similar amounts) as business expenses whether or not any part
of their dues are used for lobbying purposes; or
8. Any organization that is not a membership organization.

Line 35. Unrelated Business Income and
Lobbying Proxy Tax
Unrelated Business Income
Political organizations described in section 527 are not required
to answer this question.
Check “Yes” on line 35a if the organization’s total gross
income from all of its unrelated trades and businesses is $1,000
or more for the tax year. Gross income is gross receipts less
the cost of goods sold. See Pub. 598 for a description of
unrelated business income, and see Instructions for the Form
990-T for the filing requirements of Form 990-T.
If the organization had income from business activities, such
as those reported on lines 2, 6, and 7 (among others), but not
reported on Form 990-T, explain in Schedule O the reasons for
not reporting the income on Form 990-T.
Neither Form 990-T nor Form 990-EZ is a substitute for the
other. Items of income and expense reported on Form 990-T
must also be reported on Form 990-EZ (and vice versa) when
the organization is required to file both forms.
All tax-exempt organizations must pay estimated taxes
with respect to their unrelated business income if they
CAUTION
expect their tax liability to be $500 or more. Use Form
990-W to compute these amounts.

!

Special rules treat affiliated social welfare organizations,
agricultural and horticultural organizations, and business
CAUTION
leagues as parts of a single organization for purposes of
meeting the nondeductible dues exception. See Rev. Proc.
98-19, 1998-1 C.B. 547.
Exception 2. Section 6033(e)(1) $2,000 in-house lobbying
exception. An organization satisfies the $2,000 in-house
lobbying exception if it:
1. Did not receive a waiver for proxy tax owed for the prior
year;
2. Did not make any political expenditures or foreign
lobbying expenditures during the current tax year; and
3. Incurred lobbying expenses during the current tax year
consisting only of in-house direct lobbying expenses totaling
$2,000 or less, but excluding:
a. Any allocable overhead expenses, and
b. All direct lobbying expenses of any local council
regarding legislation of direct interest to the organization or its
members.

Section 6033(e) Tax for Lobbying Expenditures

!

If the organization checks “No” to line 35a, it is certifying that
the organization was not subject to the notice and reporting
requirements of section 6033(e) and that the organization had
no lobbying and political expenditures potentially subject to the
proxy tax.
Section 6033(e) notice and reporting requirements and
proxy tax. Section 6033(e) requires certain sections 501(c)(4),
501(c)(5), and 501(c)(6) organizations to tell their members the
portion of their membership dues that were allocable to the
political or lobbying activities of the organization. If an
organization does not give its members this information, then
the organization is subject to a proxy tax. The tax is reported on
Form 990-T.
If the organization checks “Yes” on line 35a to declare that it
had reportable section 6033(e) lobbying and political expenses
in the tax year (and potential liability for the proxy tax):
1. Complete Part III of Schedule C (Form 990 or 990-EZ),
Political Campaign and Lobbying Activities (see instructions);
and
2. Attach this schedule to Form 990-EZ.

Definitions
Grassroots lobbying. Refers to attempts to influence any
segment of the general public regarding legislative matters or
referendums.
Direct lobbying includes attempting to influence:
• Legislation through communication with legislators and other
government officials, and
• The official actions or positions of covered executive branch
officials through direct communication.
Direct lobbying does not include attempting to
influence:
• Any local council on legislation of direct interest to the
organization or its members, and
• The general public regarding legislative matters (grassroots
lobbying).

Only the following tax-exempt organizations are subject to
the section 6033(e) notice and reporting requirements, and a
potential proxy tax:
• Section 501(c)(4) social welfare organizations,
• Section 501(c)(5) agricultural and horticultural organizations,
and
• Section 501(c)(6) organizations.
If the organization is not tax-exempt under sections
501(c)(4), 501(c)(5), or 501(c)(6), check “No” on line 35a,
unless it had $1,000 or more of unrelated business income.
If the organization meets Exception 1 or 2 below, it is
excluded from the notice, reporting, and proxy tax requirements
of section 6033(e), and it should check “No” to line 35a, unless

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Other lobbying includes:
Grassroots lobbying,
Foreign lobbying,
Third-party lobbying, and
Dues paid to another organization that were used to lobby.
In-house expenditures include:
• Salaries, and
• Other expenses of the organization’s officials and staff
(including amounts paid or incurred for the planning of
legislative activities).
In-house expenditures do not include:
• Any payments to other taxpayers engaged in lobbying or
political activities as a trade or business.
• Any dues paid to another organization that are allocable to
lobbying or political activities.

An expenditure includes a payment, distribution, loan,
advance, deposit, or gift of money, or anything of value. It also
includes a contract, promise, or agreement to make an
expenditure, whether or not legally enforceable.

•
•
•
•

All section 501(c) organizations. An exempt organization
that is not a political organization must file Form 1120-POL if it
is treated as having political organization taxable income under
section 527(f)(1).
If a section 501(c) organization establishes and maintains a
section 527(f)(3) separate segregated fund, it is the fund’s
responsibility to file its own Form 1120-POL if the fund meets
the Form 1120-POL filing requirements. Do not include the
segregated fund’s receipts, expenditures, and balance sheet
items on the Form 990-EZ of the section 501(c) organization
that establishes and maintains the fund. When answering
question 37 on its Form 990-EZ, the section 501(c) organization
should disregard the political expenses and Form 1120-POL
filing requirement of the segregated fund. However, when a
section 501(c) organization transfers its own funds to a
separate segregated section 527(f)(3) fund for use as political
expenses, the section 501(c) organization must report the
transferred funds as its own political expenses on its Form
990-EZ.

Line 36. Liquidation, Dissolution, Termination,
or Significant Disposition of Net Assets
If there was a liquidation, dissolution, termination, or significant
disposition of net assets, enter “Yes” and complete and attach
the applicable parts of Schedule N (Form 990 or 990-EZ).
For a complete liquidation, dissolution, termination, or
cessation of operations, also check the Terminated box in the
heading of the return.

Section 501(c)(3) organizations. A section 501(c)(3)
organization will lose its tax-exempt status if it engages in
political activity.

A significant disposition of net assets is a sale, exchange,
disposition or other transfer of more than 25% of the fair market
value of the organization’s net assets during the year,
regardless of whether the organization received full or adequate
consideration. A significant disposition of net assets involves:
1. One or more disposition during the organization’s tax
year amounting to more than 25% of the fair market value of the
organization’s assets as of the beginning of its tax year; or
2. One of a series of related dispositions or events
commenced in a prior year, that when combined comprise more
than 25% of the fair market value of the organization’s assets
as of the beginning of the tax year when the first disposition of
net assets occurred. Whether a series of related dispositions is
a significant disposition of net assets depends on the facts and
circumstances in each case.

A section 501(c)(3) organization must pay a section 4955
excise tax for any amount paid or incurred on behalf of, or in
opposition to, any candidate for public office. The organization
must pay an additional excise tax if it fails to correct the
expenditure timely.
A manager of a section 501(c)(3) organization who
knowingly agrees to a political expenditure must pay a section
4955 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.
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 such individual (a candidate or prospective
candidate) for speeches or other services;
• Travel expenses of such individual;
• Expenses of conducting polls, surveys, or other studies, or
preparing papers or other material for use by such individual;
• Expenses of advertising, publicity, and fundraising for such
individual; and
• Any other expense that has the primary effect of promoting
public recognition or otherwise primarily accruing to the benefit
of such individual.

Examples of the types of transactions that are significant
dispositions of net assets required to be reported in Part II of
Schedule N (Form 990 or 990-EZ) include:
• Taxable or tax-free sales or exchanges of exempt assets for
cash or other consideration (such as a social club described in
section 501(c)(7) selling land, or an exempt organization selling
assets it had used to further its exempt purposes);
• Sales, contributions, or other transfers of assets to establish
or maintain a partnership, joint venture, or corporation (for-profit
or nonprofit), regardless of whether such sales or transfers are
governed by section 721 or section 351, whether or not the
transferor receives an ownership interest in exchange for the
transfer;
• Sales of assets by a partnership or joint venture in which the
exempt partner has an ownership interest;
• Transfers of assets pursuant to a reorganization in which the
organization is a surviving entity; and
• A contraction of net assets resulting from a grant or
charitable contribution of assets to another organization
described in section 501(c)(3).

An organization is effectively controlled by a candidate or
prospective candidate only if such individual has a continuing,
substantial involvement in the day-to-day operations or
management of the organization.
A determination of whether the primary purpose of an
organization is promoting the candidacy or prospective
candidacy of an individual for public office is made on the basis
of all the facts and circumstances. See section 4955 and
Regulations section 53.4955.

An organization filing Form 990-EZ need not complete
TIP Part II of Schedule N for a transaction that is not a
significant disposition of net assets.

Use Form 4720 to figure and report these excise taxes.

Line 37. Expenditures for Political Purposes

Line 38. Loans To or From Officers, Directors,
Trustees, and Key Employees

Political organizations described in section 527 are not
required to answer this question.

Enter the end-of-year unpaid balance of secured and
unsecured loans made to or received from officers, directors,
trustees, and key employees (as defined in Part IV above). For
example, if the organization borrowed $1,000 from one officer
and loaned $500 to another, none of which has been repaid,
report $1,500 on line 38b.

A political expenditure is one intended to influence the
selection, nomination, election, or appointment of anyone to a
federal, state, or local public office, or office in a political
organization, or the election of Presidential or Vice-Presidential
electors. It does not matter whether the attempt succeeds.

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For loans outstanding at the end of the year, complete and
attach Part II of Schedule L (Form 990 or 990-EZ), Transactions
with Interested Persons. See the Schedule L instructions.

If the organization answers “Yes,” then complete and attach
Part I of Schedule L (Form 990 or 990-EZ), Transactions with
Interested Persons.

Report any interest expense paid to an officer, director,
trustee, or key employee on line 16 (except for mortgage
interest reportable on line 14) and any interest income paid by
an officer, director, trustee, or key employee on line 8.

An excess benefit transaction can have serious
TIP implications for the disqualified person that entered into
the transaction with the organization, any organization
managers that knowingly approved of the transaction, and the
organization itself. A section 501(c)(3) or 501(c)(4) organization
that becomes aware that it may have engaged in an excess
benefit transaction should obtain competent advice regarding
section 4958, consider pursuing correction of any excess
benefit, and take other appropriate steps to protect its interests
with regard to such transaction and the potential impact it could
have on the organization’s continued exempt status. See
Appendix E for a discussion of section 4958, and Schedule L,
Part I, regarding reporting of excess benefit transactions.

Line 39. Section 501(c)(7) Organizations
Gross receipts test. See Appendix C for a discussion of the
gross receipts test for purposes of determining exemption under
section 501(c)(7). This definition of gross receipts differs from
the definition for purposes of Header Item L and determining
whether the organization must file Form 990 or 990-EZ.
Line 39a. Include capital contributions, initiation fees, and
unusual amounts of income not included in calculating gross
receipts for the purpose of determining the exempt status of
section 501(c)(7) organizations, as discussed in Appendix C.

Line 40c. Taxes Imposed on Organization
Managers or Disqualified Persons

Line 39b. Gross receipts for public use of club facilities are
gross receipts (as defined above for 501(c)(7) exemption
purposes) derived from the use of the organization’s facilities
from persons other than members, spouses of members,
dependents of members, or guests of members.

For line 40c, enter the amount of taxes imposed on organization
managers and/or disqualified persons under sections 4912,
4955, and 4958, unless abated.

Line 40d. Taxes Reimbursed by the Organization
For line 40d, enter the amount of tax on line 40c that was
reimbursed by the organization. Any reimbursement of the
excise tax liability of a disqualified person or organization
manager will be treated as an excess benefit unless (1) the
organization treats the reimbursement as compensation during
the year the reimbursement is made, and (2) the total
compensation to that person, including the reimbursement, is
reasonable.

Investment income and Form 990-T. If a section 501(c)(7)
organization qualifies as tax-exempt under the gross receipts
test described in Appendix C, then include the amount entered
on line 39b of Form 990-EZ on the club’s Form 990-T if the club
is required to file Form 990-T. Investment income earned by a
section 501(c)(7) organization is not tax-exempt income unless
it is set aside for one or more of the following purposes:
religious, charitable, scientific, literary, educational purposes, or
prevention of cruelty to children or animals.

Line 40e. Tax on Prohibited Tax Shelter
Transactions

If the combined amount of an organization’s gross
investment income and other unrelated business income
exceeds $1,000, it must report the investment income and other
unrelated business income on Form 990-T.

Answer “Yes” if the organization was a party to a prohibited tax
shelter transaction as described in section 4965(e) at any time
during the organization’s tax year. An organization that files
Form 990-EZ (other than a section 527 political organization or
a section 4947(a)(1) trust) and that is a party to a prohibited tax
shelter transaction must file Form 8886-T and may also have to
file Form 4720 and pay excise tax imposed by section 4965.
For more information, see the instructions to Forms 8886-T and
4720.

Nondiscrimination policy. A section 501(c)(7) organization is
not exempt from income tax if any written policy statement,
including the governing instrument and bylaws, allows
discrimination on the basis of race, color, or religion.
However, section 501(i) allows social clubs to retain their
exemption under section 501(c)(7) even though their
membership is limited (in writing) to members of a particular
religion, if the social club:
1. Is an auxiliary of a fraternal beneficiary society exempt
under section 501(c)(8), and
2. Limits its membership to the members of a particular
religion; or the membership limitation is:
a. A good-faith attempt to further the teachings or principles
of that religion, and
b. Not intended to exclude individuals of a particular race or
color.

Line 41. List of States
List each state with which the organization is filing a copy of this
return in full or partial satisfaction of state filing requirements.

Line 42a. Location of Books and Records
Provide the name of the person who possesses the
organization’s books and records. The organization is not
required to provide the address or telephone number for the
personal residence of an individual. The organization’s address
and phone number can be used instead, or the business
address and telephone number of such individual.

Line 40a. Section 501(c)(3) Organizations:
Disclosure of Excise Taxes Imposed under
Section 4911, 4912, or 4955

Line 42b. Foreign Financial Accounts
Answer “Yes” if either item 1 or 2 below applies:
1. At any time during the calendar year (ending with or
within the organization’s tax year), the organization had an
interest in, or signature or other authority over, a financial
account in a foreign country (such as a bank account, securities
account, or other financial account); and
a. The combined value of the accounts was more than
$10,000 at any time during the calendar year; and
b. The accounts were not with a U.S. military banking facility
operated by a U.S. financial institution.
2. The organization owns more than 50% of the stock in any
corporation that would answer “Yes” to item 1 above.

Section 501(c)(3) organizations must disclose any excise tax
imposed during the year under section 4911 (excess lobbying
expenditures), 4912 (disqualifying lobbying expenditures), or,
unless abated, 4955 (political expenditures). See sections 4962
and 6033(b).

Line 40b. Section 501(c)(3) and 501(c)(4)
Organizations: Disclosure of Section 4958
Excess Benefit Transactions and Excise Taxes
Sections 6033(b) and 6033(f) require section 501(c)(3) and
501(c)(4) organizations to report the amount of taxes imposed
under section 4958 (excess benefit transactions) involving the
organization, unless abated, as well as any other information
the Secretary may require concerning those transactions.

If the “Yes” box is checked, enter the name of the foreign
country or countries. Continue on Schedule O if more space is
needed.

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File Form TD F 90-22.1, Report of Foreign Bank and
Financial Accounts by June 30 after the end of the calendar
year with the Department of the Treasury at the address shown
on the form. Form TD F 90-22.1 is available by calling
1-800-TAX-FORM (1-800-829-3676) or by downloading it from
the IRS website at IRS.gov. Do not file it with the IRS or attach
it to Form 990-EZ.

A “donor advisor” is any person appointed or designated by
a donor to advise a sponsoring organization on the distribution
or investment of amounts held in the donor’s donor advised
fund or similar account.

Line 44b. Hospital facilities
If the organization operated one or more hospital facilities
during the tax year, it must complete and file Form 990 and
Schedule H (Form 990) and not Form 990-EZ.
A “hospital facility” is a facility that is, or is required to be,
licensed, registered, or similarly recognized by a state as a
hospital, or any facility that the Secretary determines has the
provision of hospital care as its principal function or purpose
constituting the basis for its exemption under section 501(c)(3),
without regard to section 501(r). This includes a hospital that is
operated through a disregarded entity or joint venture treated as
a partnership for federal tax purposes. It does not include
hospitals that are located outside the United States. It also does
not include hospitals that are operated by entities organized as
separate legal entities from the organization that are treated as
corporations for federal tax purposes.

Line 43. Section 4947(a)(1) Nonexempt
Charitable Trusts
A section 4947(a)(1) nonexempt charitable trust that has no
taxable income under Subtitle A can use Form 990-EZ to meet
its section 6012 filing requirement by checking the box on line
43 (in which case Form 1041 is not required). In such case,
enter on line 43 the total of exempt-interest dividends received
or accrued (if reporting under the accrual method of accounting)
during the tax year. Such tax-exempt interest includes
exempt-interest dividends received from a mutual fund or other
regulated investment company as well as tax-exempt interest
received directly.

Line 44a. Donor Advised Funds

!

CAUTION

The definition of “hospital” for Schedule A (Form 990 or
TIP Form 990-EZ), Part I, is different from the definition of
“hospital facility” for Schedule H (Form 990). See the
Glossary in the Form 990 Instructions for the respective
definitions.

A sponsoring organization of a donor advised fund must
file Form 990 rather than Form 990-EZ, regardless of
the amount of its gross receipts or net assets.

A sponsoring organization is any of the following types of
organizations if it maintains one or more donor advised funds:
1. A section 501(c)(3) public charity described in section
509(a)(1), (2), or (3).
2. A veterans’ organization, organized in the United States
or any of its possessions, no part of the net earnings of which
inures to the benefit of any private shareholder or individual,
that meets the requirements to receive deductible contributions
under section 170(c)(3).
3. A domestic fraternal organization described in section
501(c)(8) or (10) that uses charitable contributions exclusively
for charitable purposes.
4. A cemetery company described in section 501(c)(13).

Lines 44c-d. Payments for indoor tanning
services
The organization should check “Yes” to line 44c if it received
any payments during the year for indoor tanning services.
“Indoor tanning services” are services employing any electronic
product designed to incorporate one or more ultraviolet lamps
and intended for the irradiation of an individual by ultraviolet
radiation, with wavelengths in air between 200 and 400
nanometers, to induce skin tanning.
If an organization received a payment for services for indoor
tanning services during the year, it must collect from the
recipient of the services a tax equal to 10% of the amount paid
for such service, whether paid by insurance or otherwise, and
remit such tax quarterly to the IRS by filing Form 720. If the
organization filed Form 720 during the year, it should check
“Yes” to line 44d. If it answers “No” to line 44d, it should explain
in Schedule O why it did not file Form 720.

A “donor advised fund” is a fund or account:
1. That is separately identified by reference to contributions
of a donor or donors,
2. That is owned and controlled by a sponsoring
organization, and
3. With respect to which the donor or donor advisor has or
reasonably expects to have advisory privileges in the
distribution or investment of amounts held in the donor advised
fund or account because of the donor’s status as a donor.

Line 45. Section 512(b)(13) Controlled Entity
A controlling organization of a controlled entity under
section 512(b)(13) must file Form 990 and Schedule R
CAUTION
(Form 990) rather than Form 990-EZ if the controlling
organization either (1) received or accrued from the controlled
entity any interest, annuities, royalties, or rent, regardless of
amount, during the tax year; or (2) engaged in another type of
transaction (see Schedule R Instructions for a description of
transactions) with the controlled entity, if the amounts involved
during the tax year for such type of transaction exceeded
$50,000.
The controlled entity can be a stock or nonstock corporation,
association, partnership, limited liability company, or trust.
Control exists if the controlling organization owns more than
50% of:
• The stock of a corporation (measured by voting power or
value),
• The profits or capital interest in a partnership, or
• The beneficial interest in a trust or other entity.
Control of a nonstock corporation means that over 50% of its
directors or trustees are either representatives of, or directly or
indirectly controlled by, the controlling organization. A trustee or
director is a representative of an exempt organization whenever
such a person is a trustee, director, agent, or employee of such
exempt organization. A trustee or director is controlled by an
exempt organization if such organization has the power to
remove such trustee or director and designate a new trustee or
director.

!

A donor advised fund does not include any fund or account:
1. That makes distributions only to a single identified
organization or governmental entity, or
2. With respect to which a donor or donor advisor gives
advice about which individuals receive grants for travel, study,
or other similar purposes, if:
a. The donor or donor advisor’s advisory privileges are
performed exclusively by such person in his or her capacity as
a committee member in which all of the committee members
are appointed by the sponsoring organization;
b. No combination of donors or donor advisors directly or
indirectly control the committee; and
c. All grants from the fund or account are awarded on an
objective and nondiscriminatory basis following a procedure
approved in advance by the board of directors of the sponsoring
organization. The procedure must be designed to ensure that
all grants meet the requirements of section 4945(g)(1), (2), or
(3); or
3. That the Secretary exempts from being treated as a
donor advised fund because either such fund or account is
advised by a committee not directly or indirectly controlled by
the donor or donor advisor or such fund benefits a single
identified charitable purpose. For example, see Notice
2006-109, 2006-2 C.B. 1121, and any future related guidance.

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Line 46. Political Campaign Activities

(other than officers, directors, trustees, and key employees)
with annual compensation over $100,000 who are not
individually listed.
Determination of the five highest compensated employees
depends on whether the organization uses Option 1 or Option 2
for Part IV compensation reporting. Whichever option is
selected must be used for both Part IV and Part VI
compensation reporting.
Under Option 1, a fiscal-year organization must use the
calendar year ending within its tax year to determine its five
highest compensated employees over $100,000, and to report
such compensation. Combine the compensation includible in
columns (c) and (d) in determining whether compensation
exceeds $100,000 for the calendar year.
Under Option 2, a fiscal-year organization can determine the
five highest compensated employees over $100,000 for its tax
year, or for the calendar year ending within its tax year. Use the
same year as was used in reporting compensation for officers,
directors, trustees, and key employees in Part IV. Combine
compensation includible in columns (c), (d), and (e) in
determining whether compensation exceeds $100,000.
See the Part IV instructions for more information on Option 1
and Option 2 compensation reporting and for completing table
columns (a) through (e) of line 50.
Example. S is not a key employee. The organization uses a
calendar tax year. During the year, S received a salary of
$80,000 and a $2,000 bonus. S contributed $5,000 of the salary
on a pre-tax basis to a qualified defined-contribution retirement
plan, and received a matching employer contribution of $5,000
from the organization. S contributed another $5,000 of the
salary on a pre-tax basis to a qualified health plan. S received
from the employer non-taxable health benefits for herself and
her family of $10,000, and non-taxable family educational
benefits of $5,000.
To determine whether S is to be listed as among the five
highest compensated employees under Option 1, S’s
compensation in column (c) would be $82,000, the amount
reportable in Form W-2, box 5, consisting of the $80,000 salary
(including her contributions to the qualified plans) and the
$2,000 bonus. S’s compensation in column (d) would be
$15,000, consisting of the organization’s payments of $5,000 to
the retirement plan and $10,000 to the health plan. Thus, under
Option 1, S’s total compensation of $97,000 would not place
her among the five highest compensated employees over
$100,000.
To determine whether S is to be listed as among the five
highest compensated employees under Option 2, S would have
the following compensation: $82,000 under column (c),
consisting of the $80,000 salary and $2,000 bonus; and
$20,000 under column (d), consisting of the employer’s
payments of $5,000 to the retirement plan, $10,000 to the
health plan, and $5,000 of educational benefits. Total
compensation of S would be $102,000. Thus, under Option 2, S
would be listed in line 50 as one of the five highest
compensated employees unless there are five other employees
(other than key employees) with higher compensation.
See Pub. 525, Taxable and Nontaxable Income, for more
information.

Answer “Yes” and complete the applicable parts of Part I of
Schedule C (Form 990 or 990-EZ), Political Campaign and
Lobbying Activities, if the organization participated or intervened
in (including the publishing of statements) any political
campaign on behalf of (or in opposition to) any candidate for
public office, directly or indirectly. See the Schedule C
instructions for a discussion of political activity.

Part VI. Section 501(c)(3) Organizations
and Section 4947(a)(1) Nonexempt
Charitable Trusts Only
All section 501(c)(3) organizations and section 4947(a)(1)
nonexempt charitable trusts must complete Part VI.

Line 47. Lobbying Activities
Answer “Yes” and complete Part II of Schedule C (Form 990 or
990-EZ) if the organization engaged in lobbying activities or had
a section 501(h) election in effect during the tax year. All
section 501(c)(3) organizations that had a section 501(h)
election in effect during the tax year must complete Schedule C
(Form 990 or 990-EZ), Part II-A, regardless of whether they
engaged in lobbying activities during the tax year. See the
Schedule C instructions for a discussion of lobbying activities.

Line 48. Schools
Answer “Yes” and complete Schedule E (Form 990 or 990-EZ),
Schools, if the organization checked the box on line 2 of
Schedule A (Form 990 or 990-EZ), Public Charity Status and
Public Support, Part I, indicating that it is a school.

Line 49. Transfers to Exempt Non-Charitable
Related Organizations
Answer “Yes” if the organization made any transfer to a related
organization that is an exempt organization other than a
501(c)(3) organization, such as a related 501(c)(4) organization
or a related 527 political organization.
A transfer for this purpose is any transaction or arrangement
in which the organization transferred something of value (cash,
other assets, services, use of property, etc.) to the exempt
non-charitable related organization, whether or not for adequate
consideration. The organization can (but is not required to)
explain the transfer in .
A related organization for this purpose is an organization
with either of the following relationships to the filing organization
at any time during the organization’s tax year:
1. The two organizations share some element of common
control, or
2. A historic and continuing relationship exists 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.
A historic and continuing relationship exists when two
organizations participate in a joint effort to work in concert
toward the attainment of one or more common purposes on a
continuous or recurring basis rather than on the basis of one or
several 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 51. Five Highest Compensated Independent
Contractors over $100,000
Complete this table for the five highest compensated
independent contractors that received more than $100,000 in
compensation for services, whether professional services or
other services, from the organization. On line 51d, enter the
number of other independent contractors with annual
compensation over $100,000 who are not individually listed.
Independent contractors include organizations as well as
individuals and can include professional fundraisers, law firms,
accounting firms, publishing companies, management
companies, and investment management companies. See Pub.
1779, Independent Contractor or Employee, and Pub. 15-A,
Employer’s Supplemental Tax Guide, for distinguishing

Line 50. Five Highest Compensated Employees
over $100,000
Complete this table for the five employees (other than officers,
directors, trustees, and key employees as defined in the Part IV
instructions) with the highest annual compensation over
$100,000. On line 50f, enter the number of other employees

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• Enter the preparer information (other than PTIN and EIN

employees from independent contractors. Any compensation
received by an officer, director, trustee, key employee, or
highest compensated employee in the capacity as an
independent contractor must be included in such person’s
compensation reported in Part IV, or Part VI, line 50.
Fiscal-year organizations must use the same year (whether
tax year or calendar year ending within the tax year) as is used
in Part IV, List of Officers, Directors, Trustees, and Key
Employees, in determining their five highest compensated
independent contractors and reporting their compensation in
such year on line 51.
Column (c) — compensation. Enter the amount of
compensation the organization paid or incurred for the
applicable year. If the organization uses the calendar year and
the cash method of accounting, report the amount reported on
Form 1099-MISC, box 7, if filed. Otherwise, report the amount
paid pursuant to the parties’ agreement or applicable state law.

blocks, except as described below), and
• Give a copy of the return to the organization.

The paid preparer must enter the preparer’s identifying
number and the preparer’s firm’s EIN only if filing Form 990-EZ
for a section 4947(a)(1) nonexempt charitable trust that is not
filing Form 1041, U.S. Income Tax Return for Estates and
Trusts. The preparer’s identifying number is the preparer’s
taxpayer identification number (PTIN), if obtained.
Any paid preparer whose identifying number must be
listed on Form 990-EZ can apply for and obtain a PTIN
CAUTION
using Form W-12, Application for Preparer Tax
Identification Number.

!

Paid Preparer Authorization
On the last line of Part II, check “Yes” if the IRS can contact the
paid preparer who signed the return to discuss the return. This
authorization applies only to the individual whose signature
appears in the Paid Preparer Use Only section of the Form
990-EZ. It does not apply to the firm, if any, shown in that
section.

Form 1099-MISC is not always required to be issued for
TIP payments to an independent contractor.
Compensation includes fees and similar payments to
independent contractors but not reimbursement of expenses.
However, for this purpose, the organization must report the
gross payment to the independent contractor that includes
expenses and fees if the expenses are not separately reported
to the organization.

By checking this box “Yes,” the organization is authorizing
the IRS to contact the paid preparer to answer any questions
that may arise during the processing of the return. The
organization is also authorizing the paid preparer to:
• Give the IRS any information that is missing from the return,
• Call the IRS for information about the processing of the
return, and
• Respond to certain IRS notices about math errors, offsets,
and return preparation.

Signature Block
To make the return complete, an officer of the organization
authorized to sign it must sign in the space provided. For a
corporation or association, this officer can be the president, vice
president, treasurer, assistant treasurer, chief accounting
officer, or other corporate or association officer, such as a tax
officer. A receiver, trustee or assignee must sign any return he
or she files for a corporation or association. For a trust, the
authorized trustee(s) must sign.

The organization is not authorizing the paid preparer to bind
the organization to anything or otherwise represent the
organization before the IRS.
The authorization will automatically end no later than the due
date (excluding extensions) for filing the organization’s 2011
Form 990-EZ. If the organization wants to expand the paid
preparer’s authorization or revoke the authorization before it
ends, see Pub. 947, Practice Before the IRS and Power of
Attorney.

Paid Preparer
Generally, anyone who is paid to prepare the return must sign
the return and fill in the other blanks in the Paid Preparer Use
Only area. An employee of the filing organization is not a paid
preparer.
The paid preparer must:
• Sign the return in the space provided for the preparer’s
signature,

Check “No” if the IRS is to contact the organization at the
address or telephone number listed in the heading, rather than
the paid preparer.

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Appendix of Special Instructions to Form
990-EZ
Contents
A
B
C
D
E
F
G

Exempt Organizations Reference Chart
How to Determine Whether an Organization’s Gross Receipts Are Normally $50,000 (or $5,000) or Less
Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and Section 501(c)(15) Organizations
Public Inspection of Returns
Section 4958 Excess Benefit Transactions
Forms and Publications To File or Use
Use of Form 990 or 990-EZ To Satisfy State Reporting Requirements

Appendix A: Exempt Organizations
Reference Chart
To determine how the instructions for Form 990-EZ apply to the organization, an organization must know the Code section under which the
organization is exempt.
Type of Organization

I.R.C. Section

Corporations Organized Under Act of Congress

501(c)(1)

Title Holding Corporations

501(c)(2)

Charitable, Religious, Educational, Scientific, etc. Organizations

501(c)(3)

Civic Leagues and Social Welfare Organizations

501(c)(4)

Labor, Agricultural, and Horticultural Organizations

501(c)(5)

Business Leagues, etc.

501(c)(6)

Social and Recreation Clubs

501(c)(7)

Fraternal Beneficiary and Domestic Fraternal Societies and
Associations

501(c)(8) & (c)(10)

Voluntary Employees’ Beneficiary Associations

501(c)(9)

Teachers’ Retirement Fund Associations

501(c)(11)

Benevolent Life Insurance Associations, Mutual Ditch or Irrigation
Companies, Mutual or Cooperative Telephone Companies, etc.

501(c)(12)

Cemetery Companies

501(c)(13)

State Chartered Credit Unions, Mutual Reserve Funds

501(c)(14)

Insurance Companies or Associations Other than Life

501(c)(15)

Cooperative Organizations to Finance Crop Operations

501(c)(16)

Supplemental Unemployment Benefit Trusts

501(c)(17)

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Type of Organization

I.R.C. Section

Employee Funded Pension Trusts (created before 6/25/1959)

501(c)(18)

Organizations of Past or Present Members of the Armed Forces

501(c)(19) & (c)(23)

Black Lung Benefit Trusts

501(c)(21)

Withdrawal Liability Payment Funds

501(c)(22)

Trusts described in section 4049 of the Employer Retirement
Income Security Act

501(c)(24)

Title Holding Corporations or Trusts

501(c)(25)

State-Sponsored Organizations Providing Health Coverage for
High-Risk Individuals

501(c)(26)

State-Sponsored Workmen’s Compensation and Insurance and
Reinsurance Organizations

501(c)(27)

National Railroad Retirement Investment Trust

501(c)(28)

Religious and Apostolic Associations

501(d)

Cooperative Hospital Service Organizations

501(e)

Cooperative Service Organizations of Operating Educational
Organizations

501(f)

Amateur Sports Organizations

501(j)

Child Care Organizations

501(k)

Charitable Risk Pools

501(n)

Political Organizations

527

Appendix B: How to Determine Whether
an Organization’s Gross Receipts Are
Normally $50,000 (or $5,000) or Less

this purpose. The Appendix C tests are limited to determining
the tax-exempt status of section 501(c)(7) and 501(c)(15)
organizations.
Gross receipts when acting as an agent. If a local chapter
of a section 501(c)(8) fraternal organization collects insurance
premiums for its parent lodge and merely sends those
premiums to the parent without asserting any right to use the
funds or otherwise deriving any benefit from them, the local
chapter does not include the premiums in its gross receipts.
The parent lodge reports them instead. The same treatment
applies in other situations in which one organization collects
funds merely as an agent for another.

To figure whether an organization has to file Form 990-EZ (or
Form 990), apply the $50,000 (or $5,000) gross receipts test
(below) using the following definition of gross receipts and
information in Figuring Gross Receipts below.

Gross Receipts
Gross receipts are the total amounts the organization received
from all sources during its annual tax year, without subtracting
any costs or expenses.
Do not use the definition of gross receipts described in
Appendix C, Special Gross Receipts Tests for
CAUTION
Determining Exempt Status of Section 501(c)(7) and
Section 501(c)(15) Organizations, to figure gross receipts for

Figuring Gross Receipts

!

Figure gross receipts for Form 990 and Form 990-EZ as
follows.

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Form 990. Gross receipts are the sum of lines 6b (both
columns), 7b (both columns), 8b, 9b, 10b, and 12 (Column A) of
Form 990, Part VIII.
Form 990-EZ. Gross receipts are the sum of lines 5b, 6b, 7b,
and 9 of Form 990-EZ, Part I.
Example. Organization M reported $50,000 as total
revenue on line 9 of its Form 990-EZ. M added back the costs
and expenses it had deducted on lines 5b ($2,000); 6b
($1,500); and 7b ($500) to its total revenue of $50,000 and
determined that its gross receipts for the tax year were $54,000.

• Investment income (such as dividends, rents, and similar

$50,000 Gross Receipts Test

Section 501(c)(15)

To determine whether an organization’s gross receipts are
normally $50,000 or less, apply the following test. An
organization’s gross receipts are considered normally to be
$50,000 or less if the organization is:
1. Up to a year old and has received, or donors have
pledged to give, $75,000 or less during its first tax year;
2. Between 1 and 3 years old and averaged $60,000 or less
in gross receipts during each of its first 2 tax years; or
3. Three years old or more and averaged $50,000 or less in
gross receipts for the immediately preceding 3 tax years
(including the year for which the return would be filed).

If any section 501(c)(15) insurance company (other than life
insurance) meets both parts of the following test, then the
company can file Form 990 (or Form 990-EZ, if applicable).
1. The company’s gross receipts must be equal to or less
than $600,000, and
2. The company’s premiums must be more than 50% of its
gross receipts.

receipts), and normal recurring capital gains on investments.
Gross receipts for this purpose do not include:
• Capital contributions (see Regulations section 1.118-1),
• Initiation fees, or
• Unusual amounts of income (such as the sale of the
clubhouse).

!

CAUTION

College fraternities or sororities or other organizations
that charge membership initiation fees, but not annual
dues, must include initiation fees in their gross receipts.

If the company did not meet this test and the company is a
mutual insurance company, then it must meet the Alternate test
to qualify to file Form 990 (or Form 990-EZ, if applicable).
Insurance companies that do not qualify as tax-exempt must file
Form 1120-PC, U.S. Property and Casualty Insurance
Company Income Tax Return, or Form 1120, U.S. Corporation
Income Tax Return, as taxable entities for the year. See Notice
2006-42, which is on page 878 of the Internal Revenue Bulletin
2006-19 available at IRS.gov.
Alternate test. If any section 501(c)(15) insurance
company (other than life insurance) is a mutual insurance
company and it did not meet the above test, then the company
must meet both parts of the following alternate test.
1. The company’s gross receipts must be equal to or less
than $150,000.
2. The company’s premiums must be more than 35% of its
gross receipts.

If the organization’s gross receipts are normally $50,000 or
less, it must submit Form 990-N, Electronic Notice (e-Postcard)
for Tax-Exempt Organizations not Required To File Form 990
or 990-EZ (with exceptions for certain organizations described
in General Instruction B).

$5,000 Gross Receipts Test
To determine whether an organization’s gross receipts are
normally $5,000 or less, apply the following test. An
organization’s gross receipts are considered normally to be
$5,000 or less if the organization is:
1. Up to a year old and has received, or donors have
pledged to give, $7,500 or less during its first tax year;
2. Between 1 and 3 years old and averaged $6,000 or less
in gross receipts during each of its first 2 tax years; or
3. Three years old or more and averaged $5,000 or less in
gross receipts for the immediately preceding 3 tax years
(including the year for which the return would be filed).

If the company does not meet either test, then it must file
Form 1120-PC or Form 1120 (if the company is not entitled to
insurance reserves) instead of Form 990 or Form 990-EZ.
The alternate test does not apply if any employee of the
mutual insurance company or a member of the
CAUTION
employee’s family is an employee of another company
that is exempt under section 501(c)(15) (or would be exempt if
this provision did not apply).
Gross receipts. To determine whether a section 501(c)(15)
organization satisfies either of the above tests described in
Appendix C, figure gross receipts by adding:
1. Premiums (including deposits and assessments) without
reduction for return premiums or premiums paid for
reinsurance;
2. Gross investment income of a non-life insurance
company (as described in section 834(b)); and
3. Other items that are included in the filer’s gross income
under Subchapter B, Chapter 1, Subtitle A of the Code.

!

Appendix C: Special Gross Receipts
Tests for Determining Exempt Status of
Section 501(c)(7) and section 501(c)(15)
Organizations
Section 501(c)(7) organizations (social clubs) and 501(c)(15)
organizations (insurance companies) apply the same gross
receipts test as other organizations to determine whether they
must file the Form 990 or 990-EZ. However, section 501(c)(7)
and 501(c)(15) organizations are also subject to separate gross
receipts tests to determine whether they qualify as tax-exempt
for the tax year. The following tests use a special definition of
gross receipts for purposes of determining whether these
organizations are exempt for a particular tax year.

This definition does not, however, include contributions to
capital. For more information, see Notice 2006-42.
Premiums. Premiums consist of all amounts received as a
result of entering into an insurance contract. They are reported
on Form 990, Part VIII (Statement of Revenue), line 2, or on
Form 990-EZ, Part I, line 2.
Anti-abuse rule. The anti-abuse rule, found in section
501(c)(15)(C), explains how gross receipts (including
premiums) from all members of a controlled group are
aggregated in figuring the above tests described in Appendix C.

Section 501(c)(7)
A section 501(c)(7) organization can receive up to 35% of its
gross receipts, including investment income, from sources
outside its membership and remain tax-exempt. Part of the 35%
(up to 15% of gross receipts) can be from public use of a social
club’s facilities.
“Gross receipts,” for purposes of determining the tax-exempt
status of section 501(c)(7) organizations, are the club’s income
from its usual activities and include:
• Charges,
• Admissions,
• Membership fees,
• Dues,
• Assessments, and

Appendix D: Public Inspection of
Returns
Some members of the public rely on Form 990 or 990-EZ as the
primary or sole source of information about a particular

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organization. How the public perceives an organization in such
cases may be determined by the information presented on its
returns.
An organization’s completed Form 990 or 990-EZ is
available for public inspection as required by section 6104.
Schedule B (Form 990, 990-EZ, or 990-PF), f Contributors is
open for public inspection for section 527 organizations filing
Form 990 or Form 990-EZ. For other organizations that file
Form 990 or Form 990-EZ, the names and addresses of
contributors listed on Schedule B are not required to be made
available for public inspection. All other information reported on
Schedule B, including the amount of contributions, the
description of noncash contributions, and any other information,
is required to be made available for public inspection unless it
clearly identifies the contributor. Form 990-T filed after August
17, 2006, by a section 501(c)(3) organization to report any
unrelated business income, is also available for public
inspection and disclosure.

Instruction H also apply to section 527 political organizations
(Rev. Rul. 2003-49, 2003-20 I.R.B. 903).
Public inspection and distribution of applications for tax
exemption and annual information returns of tax-exempt
organizations. Under Regulations sections 301.6104(d)-1
through 3, a tax-exempt organization must:
• Make its application for recognition of exemption and its
annual information returns available for public inspection
without charge at its principal, regional and district offices
during regular business hours;
• Make each annual information return available for a period of
3 years beginning on the date the return is required to be filed
(determined with regard to any extension of time for filing) or is
actually filed, whichever is later; and
• Provide a copy without charge (for Form 990-T, this
requirement applies only to Forms 990-T filed after August 17,
2006), other than a reasonable fee for reproduction and actual
postage costs, of all or any part of any application or return
required to be made available for public inspection to any
individual who makes a request for such copy in person or in
writing (except as provided in Regulations sections
301.6104(d)-2 and (d)-3).

Through the IRS
Use Form 4506-A to request:
• A copy of an exempt or political organization’s return, report,
notice, or exemption application; or
• An inspection of a return, report, notice, or exemption
application at an IRS office.
The IRS can provide copies of exempt organization returns
on a compact disc (CD). Requesters can order the complete set
(all Forms 990 and 990-EZ or all Forms 990-PF filed for a year)
or a partial set by state or by month. For more information on
the cost and how to order CD-ROMs, call the TE/GE Customer
Account Services toll-free number (1-877-829-5500) or write to
the IRS:

Definitions
Tax-exempt organization is any organization that is described
in section 501(c) or (d) and is exempt from taxation under
section 501(a). The term tax-exempt organization also includes
any section 4947(a)(1) nonexempt charitable trust or
nonexempt private foundation that is subject to the reporting
requirements of section 6033.
Application for tax exemption includes:
• 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.
Application for tax exemption does not include:
• Any application for tax exemption filed before July 15, 1987,
unless the organization filing the application had a copy of the
application on July 15, 1987;
• In the case of a tax-exempt organization other than a private
foundation, the name and address of any contributor to the
organization; or
• Any material that is not available for public inspection under
section 6104.

Internal Revenue Service
Mail Stop 6716
Ogden, UT 84201
The IRS generally cannot disclose portions of an exemption
application relating to any trade secrets, etc. Additionally, the
IRS cannot disclose the names and addresses of contributors.
See the Instructions for Schedule B (Form 990, 990-EZ, or
990-PF) for more information about the disclosure of that
schedule.
Notice 2008-49, 2008-20 I.R.B. 979, provides interim
guidance regarding the requirement that section 501(c)(3)
organizations and the IRS make available for public inspection
Form 990-T.
A section 527 organization’s Form 990 or 990-EZ can only
be requested for tax years beginning after June 30, 2000.
A return, report, notice, or exemption application can be
inspected at an IRS office free of charge. Copies of these items
can also be obtained through the organization as discussed in
the following section.

!

If there is no prescribed application form, see
Regulations section 301.6104(d)-1(b)(3)(ii).

CAUTION

Annual information return includes:

• An exact copy of the Form 990 or 990-EZ filed by a

Through the Organization

tax-exempt organization as required by section 6033,
• Any amended return the organization files with the IRS after
the date the original return is filed, and
• An exact copy of Form 990-T if one is filed by a 501(c)(3)
organization.
The copy must include all information furnished to the IRS
on Form 990, 990-EZ, or 990-T as well as all schedules,
attachments and supporting documents, except for the name
and address of any contributor to the organization. See the
Instructions for Schedule B (Form 990, 990-EZ, or 990-PF).
However, schedules, attachments, and supporting documents
filed with Form 990-T that do not relate to the imposition of
unrelated business income tax are not required to be made
available for public inspection and copying. See Notice
2008-49, 2008-20 I.R.B. 979.
Annual returns more than 3 years old. An annual
information return does not include any return after the
expiration of 3 years from the date the return is required to be
filed (including any extension of time that has been granted for
filing such return) or is actually filed, whichever is later.

Public inspection and distribution of certain returns of
unrelated business income. Section 501(c)(3) organizations
that are required to file Form 990-T after August 17, 2006, must
make Form 990-T available for public inspection under section
6104(d)(1)(A)(ii).
Public inspection and distribution of returns and reports
for a political organization. Section 527 political
organizations required to file Form 990 or 990-EZ, must, in
general, make their Form 8871, 8872, 990, or 990-EZ available
for public inspection in the same manner as annual information
returns of section 501(c) organizations and section 4947(a)(1)
nonexempt charitable trusts. See the public inspection rules for
Tax-exempt organizations, later. Generally, Form 8871 and
Form 8872 are available for inspection and printing in the
Charities & Nonprofits section of the IRS website (IRS.gov).
Note that a section 527 political organization (and an
TIP organization filing Form 990-PF) must disclose their
Schedule B (Form 990, 990-EZ, or 990-PF). See the
Instructions for Schedule B. The penalties discussed in General

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If an organization files an amended return, however, the
amended return must be made available for a period of 3 years
beginning on the date it is filed with the IRS.
Local or subordinate organizations. For rules relating to
annual information returns of local or subordinate organizations,
see Regulations section 301.6104(d)-1(f)(2).
Regional or district offices. A regional or district office is
any office of a tax-exempt organization, other than its principal
office, that has paid employees, whether part-time or full-time,
whose aggregate number of paid hours a week are normally at
least 120.
A site is not considered a regional or district office, however,
if:
• The only services provided at the site further exempt
purposes (such as day care, health care or scientific or medical
research); and
• The site does not serve as an office for management staff,
other than managers who are involved solely in managing the
exempt function activities at the site.

off-site meeting or convention, rather than its regular
administrative duties.
Agents for providing copies. For rules relating to use of
agents to provide copies, see Regulations sections
301.6104(d)-1(d)(1)(iii) and 1(d)(2)(ii)(C).
Request for copies in writing. A tax-exempt organization
must honor a written request for a copy of documents (or the
requested part) required under section 6104(d) if the request:
1. Is addressed to, and delivered by mail, electronic mail,
facsimile, or a private delivery service, as defined in section
7502(f), to a principal, regional, or district office of the
organization; and
2. Sets forth the address to which the copy of the
documents should be sent.
Time and manner of fulfilling written requests
IF the organization

THEN the organization

Receives a written request Must mail the copy of the requested
for a copy,
documents (or the requested parts)
within 30 days from the date it receives
the request.

Special Rules Relating to Public Inspection
Permissible conditions on public inspection. A
tax-exempt organization:
• Can have an employee present in the room during an
inspection,
• Must allow the individual conducting the inspection to take
notes freely during the inspection, and
• Must allow the individual to photocopy the document at no
charge, if the individual provides photocopying equipment at the
place of inspection.
Organizations that do not maintain permanent offices.
A tax-exempt organization with no permanent office:
• Must make its application for tax exemption and its annual
information returns available for inspection at a reasonable
location of its choice,
• 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,
• Can mail, within 2 weeks of receiving the request, a copy of
its application for tax exemption and annual information returns
to the requester instead of allowing an inspection, and
• Can charge the requester for copying and actual postage
costs only if the requester consents to the charge.
An organization that has a permanent office, but has no
office hours, or very limited hours during certain times of the
year, must make its documents available during those periods
when office hours are limited, or not available, as though it were
an organization without a permanent office.

Special Rules Relating to Copies

Mails the copy of the
requested document,

Is deemed to have provided the copy on
the postmark date or private delivery
mark (if sent by certified or registered
mail, the date of registration or the date
of the postmark on the sender’s receipt).

Requires payment in
advance,

Is required to provide the copies within
30 days from the date it receives
payment.

Receives a request or
payment by mail,

Is deemed to have received it 7 days
after the date of the postmark, absent
evidence to the contrary.

Receives a request
transmitted by electronic
mail or facsimile,

Is deemed to have received it the day
the request is transmitted successfully.

Receives a written request
without payment or with an
insufficient payment, when
payment in advance is
required,

Must notify the requester of the
prepayment policy and the amount due
within 7 days from the date of the
request’s receipt.

Receives consent from an
individual making a
request,

Can provide a copy of the requested
document exclusively by electronic mail
(the material is provided on the date the
organization successfully transmits the
electronic mail).

Request for a copy of parts of a document. A tax-exempt
organization must fulfill a request for a copy of the
organization’s entire application for tax exemption or annual
information return or any specific part or f its application or
return. A request for a copy of less than the entire application or
less than the entire return must specifically identify the
requested part or schedule.
Fees for copies. A tax-exempt organization can charge a
reasonable fee for providing copies. Before the organization
provides the documents, it can require that the individual
requesting copies of the documents pay the fee. If the
organization has provided an individual making a request with
notice of the fee, and the individual does not pay the fee within
30 days, or if the individual pays the fee by check and the check
does not clear upon deposit, the organization can disregard the
request.
Form of payment — (A) Request made in person. If a
tax-exempt organization charges a fee for copying, it must
accept payment by cash and money order for requests made in
person. The organization can accept other forms of payment,
such as credit cards and personal checks.
(B) Request made in writing. If a tax-exempt organization
charges a fee for copying and postage, it must accept payment

Time and place for providing copies in response to
requests made in-person. A tax-exempt organization must:
• Provide copies of required documents under section 6104(d)
in response to a request made in person at its principal,
regional and district offices during regular business hours, and
• Provide such copies to a requester on the day the request is
made, except for unusual circumstances (see below).
Unusual circumstances. In the case of an in-person
request, where unusual circumstances exist so that fulfilling the
request on the same business day causes an unreasonable
burden to the tax-exempt organization, the organization must
provide the copies no later than the next business day following
the day that the unusual circumstances cease to exist, or the
5th business day after the date of the request, whichever
occurs first.
Unusual circumstances include:
• Requests received that exceed the organization’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
special duties, such as student registration or attending an

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by certified check, money order, and either personal check or
credit card for requests made in writing. The organization can
accept other forms of payment.
Avoidance of unexpected fees. Where a tax-exempt
organization does not require prepayment and a requester does
not enclose payment with a request, an organization must
receive consent from a requester before providing copies for
which the fee charged for copying and postage exceeds $20.
Documents to be provided by regional and district
offices. Except as otherwise provided, a regional or district
office of a tax-exempt organization must satisfy the same rules
as the principal office with respect to allowing public inspection
and providing copies of its application for tax exemption and
annual information returns.
A regional or district office is not required, however, to make
its annual information return available for inspection or to
provide copies until 30 days after the date the return is required
to be filed (including any extension of time that is granted for
filing such return) or is actually filed, whichever is later.

copies of group returns filed by the central or parent
organization. The central or parent organization must fulfill such
requests in the time and manner specified in Special Rules
Relating to Public Inspection and Special Rules Relating to
copies, earlier.
Failure to comply. If an organization fails to comply with
the requirements specified in this paragraph, the penalty
provisions of sections 6652(c)(1)(C), 6652(c)(1)(D), and 6685
apply.

Making Applications and Returns Widely
Available
A tax-exempt organization is not required to comply with a
request for a copy of its application for tax exemption or an
annual information return if the organization has made the
requested document widely available (see below).
An organization that makes its application for tax exemption
and/or annual information return widely available must
nevertheless make the document available for public inspection
as required under Regulations section 301.6104(d)-1(a).
A tax-exempt organization makes its application for tax
exemption and/or an annual information return widely available
if the organization complies with the Internet posting
requirements and the notice requirements given below.
Internet posting. A tax-exempt organization can make its
application for tax exemption and/or an annual information
return widely available by posting the document on a World
Wide Web page that the tax-exempt organization establishes
and maintains or by having the document posted, as part of a
database of similar documents of other tax-exempt
organizations, on a World Wide Web page established and
maintained by another entity. The document will be considered
widely available only if:
• The World Wide Web page through which it is available
clearly informs readers that the document is available and
provides instructions for downloading it;
• The document is posted in a format that, when accessed,
downloaded, viewed and printed in hard copy, exactly
reproduces the image of the application for tax exemption or
annual information return 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 (other
than software that is readily available to members of the public
without payment of any fee) and without payment of a fee to the
tax-exempt organization or to another entity maintaining the
World Wide Web page.
Reliability and accuracy. In order for the document to be
widely available through an Internet posting, the entity
maintaining the World Wide Web page must have procedures
for ensuring the reliability and accuracy of the document that it
posts on the page and must take reasonable precautions to
prevent alteration, destruction or accidental loss of the
document when posted on its page. In the event that a posted
document is altered, destroyed or lost, the entity must correct or
replace the document.
Notice requirement. If a tax-exempt organization has
made its application for tax exemption and/or an annual
information return widely available, it must notify any individual
requesting a copy where the documents are available (including
the address on the World Wide Web, if applicable). If the
request is made in person, the organization must provide such
notice to the individual immediately. If the request is made in
writing, the notice must be provided within 7 days of receiving
the request.

Documents Provided by Local and Subordinate
Organizations
Applications for tax exemption. Except as otherwise
provided, a tax-exempt organization that did not file its own
application for tax exemption (because it is a local or
subordinate organization covered by a group exemption letter)
must, upon request, make available for public inspection, or
provide copies of, the application submitted to the IRS by the
central or parent organization to obtain the group exemption
letter and those documents which were submitted by the central
or parent organization to include the local or subordinate
organization in the group exemption letter.
However, if the central or parent organization submits to the
IRS a list or directory of local or subordinate organizations
covered by the group exemption letter, the local or subordinate
organization is required to provide only the application for the
group exemption ruling and the pages of the list or directory that
specifically refer to it. The local or subordinate organization
must permit public inspection, or comply with a request for
copies made in person, within a reasonable amount of time
(normally not more than 2 weeks) after receiving a request
made in person for public inspection or copies and at a
reasonable time of day. See Regulations section
301.6104(d)-1(f) for further information.
Annual information returns. A local or subordinate
organization that does not file its own annual information return
(because it is affiliated with a central or parent organization that
files a group return) must, upon request, make available for
public inspection, or provide copies of, the group returns filed by
the central or parent organization.
However, if the group return includes separate schedules
with respect to each local or subordinate organization included
in the group return, the local or subordinate organization
receiving the request can omit any schedules relating only to
other organizations included in the group return.
The local or subordinate organization must permit public
inspection, or comply with a request for copies made in person,
within a reasonable amount of time (normally not more than 2
weeks) after receiving a request made in person for public
inspection or copies and at a reasonable time of day.
In a case where the requester seeks inspection, the local or
subordinate organization can mail a copy of the applicable
documents to the requester within the same time period instead
of allowing an inspection. In such a case, the organization can
charge the requester for copying and actual postage costs only
if the requester consents to the charge.
If the local or subordinate organization receives a written
request for a copy of its annual information return, it must fulfill
the request by providing a copy of the group return in the time
and manner specified in Request for copies in writing, earlier.
The requester has the option of requesting from the central
or parent organization, at its principal office, inspection or

Tax-Exempt Organization Subject to Harassment
Campaign
If the Exempt Organizations (EO) Technical office determines
that the organization is being harassed, a tax-exempt
organization is not required to comply with any request for

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copies that it reasonably believes is part of a harassment
campaign.

An organization is not treated as a section 501(c)(3) or
501(c)(4) organization for any period covered by a final
determination that the organization was not tax-exempt under
section 501(a), so long as the determination was not based on
private inurement or one or more excess benefit transactions.

Whether a group of requests constitutes a harassment
campaign depends on the relevant facts and circumstances
such as:
• A sudden increase in requests;
• An extraordinary number of requests by form letters or
similarly worded correspondence;
• Hostile requests;
• Evidence showing bad faith or deterrence of the
organization’s exempt purpose;
• Prior provision of the requested documents to the purported
harassing group; and
• A demonstration that the organization routinely provides
copies of its documents upon request.

Disqualified Person
The vast majority of section 501(c)(3) or 501(c)(4) organization
employees and independent contractors will not be affected by
these rules. Only the few influential persons within these
organizations are covered by these rules when they receive
benefits, such as compensation, fringe benefits, or contract
payments. The IRS calls this class of covered individuals
disqualified persons.
A disqualified person, regarding any transaction, is any
person who was in a position to exercise substantial influence
over the affairs of the applicable tax-exempt organization at any
time during a 5-year period ending on the date of the
transaction. Persons who hold certain powers, responsibilities,
or interests are among those who are in a position to exercise
substantial influence over the affairs of the organization. This
would include, for example, voting members of the governing
body, and persons holding the power of:
• Presidents, chief executive officers, or chief operating
officers, and
• Treasurers and chief financial officers.

A tax-exempt organization can 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, regardless of whether the EO Technical office has
determined that the organization is subject to a harassment
campaign.
A tax-exempt organization can apply for a determination that
it is the subject of a harassment campaign and that compliance
with requests that are part of the campaign would not be in the
public interest by submitting a signed application to the EO
Technical office. See Rev. Proc. 2010-4, 2010-1 I.R.B. 122, and
Rev. Proc. 2010-8, 2010-1 I.R.B. 234.

A disqualified person also includes certain family members
of a disqualified person, and 35% controlled entities of a
disqualified person.

In addition, the organization can suspend compliance with
any request it reasonably believes to be part of the harassment
campaign until it receives a response to its application for a
harassment campaign determination. However, if the EO
Technical office determines that the organization did not have a
reasonable basis for requesting a determination that it was
subject to a harassment campaign or reasonable belief that a
request was part of the campaign, the officer, director, trustee,
employee, or other responsible individual of the organization
remains liable for any penalties for not providing the copies in a
timely fashion. See Regulations section 301.6104(d)-3.

The following persons are considered disqualified persons
with respect to the following organizations, along with certain
family members and 35% controlled entities associated with
them:
• With respect to a transaction involving a donor advised fund,
a donor or donor advisor of that donor advised fund,
• With respect to a donor advised fund sponsoring
organization, an investment advisor of the sponsoring
organization, and
• With respect to a supported organization of a section
509(a)(3) supporting organization, the disqualified persons of
the section 509(a)(3) supporting organization.

Appendix E: Section 4958 Excess
Benefit Transactions

See the instructions for Form 4720, Schedule I for more
information regarding these disqualified persons.
Who is not a disqualified person? The rules also clarify
which persons are not considered to be in a position to exercise
substantial influence over the affairs of an organization. They
include:
• An employee who receives benefits that total less than the
highly compensated amount ($100,000 in 2007, $105,000 in
2008, $110,000 in 2009 and 2010) and who does not hold the
executive or voting powers just mentioned; is not a family
member of a disqualified person; and is not a substantial
contributor;
• Tax-exempt organizations described in section 501(c)(3); and
• Section 501(c)(4) organizations with respect to transactions
engaged in with other section 501(c)(4) organizations.
Who else can be considered a disqualified person? Other
persons not described above can also be considered
disqualified persons, depending on all the relevant facts and
circumstances.
Facts and circumstances tending to show substantial
influence.
• The person founded the organization.
• The person is a substantial contributor to the organization
under the section 507(d)(2)(A) definition, only taking into
account contributions to the organization for the past 5 years.
• The person’s compensation is primarily based on revenues
derived from activities of the organization that the person
controls.
• The person has or shares authority to control or determine a
substantial portion of the organization’s capital expenditures,
operating budget, or compensation for employees.

The intermediate sanction regulations are important to the
exempt organization community as a whole, and for ensuring
compliance in this area. The rules provide a roadmap by which
an organization can steer clear of situations that may give rise
to inurement.
Under section 4958, any disqualified person who benefits
from an excess benefit transaction with an applicable
tax-exempt organization is liable for a 25% tax on the excess
benefit. The disqualified person is also liable for a 200% tax on
the excess benefit if the excess benefit is not corrected by a
certain date. Also, organization managers who participate in an
excess benefit transaction knowingly, willfully, and without
reasonable cause are liable for a 10% tax on the excess
benefit, not to exceed $20,000 for all participating managers on
each transaction.

Applicable Tax-Exempt Organization
These rules only apply to certain applicable section 501(c)(3)
and 501(c)(4) organizations. An applicable tax-exempt
organization is a section 501(c)(3) or a section 501(c)(4)
organization that is tax exempt under section 501(a), or was
such an organization at any time during a 5-year period ending
on the day of the excess benefit transaction.
An applicable tax-exempt organization does not include:

• A private foundation as defined in section 509(a),
• A governmental entity that is exempt from (or not subject to)

taxation without regard to section 501(a) or relieved from filing
an annual return under Regulations section 1.6033-2(g)(6), and
• Certain foreign organizations.

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• The person manages a discrete segment or activity of the

•
•
•
•

Substantial contributor,
Family member of a substantial contributor,
35% controlled entity of a substantial contributor, and
35% controlled entity of a family member of a substantial
contributor.
Additionally, an excess benefit transaction includes any
loans provided by the supporting organization to a disqualified
person (other than an organization described in section
509(a)(1), (2), or (4)).
A substantial contributor is any person who contributed or
bequeathed an aggregate of more than $5,000 to the
organization, if that amount is more than 2% of the total
contributions and bequests received by the organization before
the end of the tax year of the organization in which the
contribution or bequest is received by the organization from
such person. In the case of a trust, a substantial contributor
also means the creator of the trust.
The excess benefit for substantial contributors and parties
related to those contributors includes the amount of the grant,
loan, compensation, or similar payment. For additional
information, see the Instructions for Form 4720.
When does an excess benefit transaction usually occur?
An excess benefit transaction occurs on the date the
disqualified person receives the economic benefit from the
organization for federal income tax purposes. However, when a
single contractual arrangement provides for a series of
compensation payments or other payments to a disqualified
person during the disqualified person’s tax year, any excess
benefit transaction with respect to these payments occurs on
the last day of the taxpayer’s tax year.
In the case of the transfer of property subject to a substantial
risk of forfeiture, or in the case of rights to future compensation
or property, the transaction occurs on the date the property, or
the rights to future compensation or property, is not subject to a
substantial risk of forfeiture. Where the disqualified person
elects to include an amount in gross income in the tax year of
transfer under section 83(b), the excess benefit transaction
occurs on the date the disqualified person receives the
economic benefit for federal income tax purposes.
Section 4958 applies only to post-September 1995
transactions. Section 4958 applies the general rules to
excess benefit transactions occurring on or after September 14,
1995. Section 4958 does not apply to any transaction occurring
pursuant to a written contract that was binding on September
13, 1995, and at all times thereafter before the transaction
occurs. The special rules relevant to transactions with donor
advised funds and supporting organizations apply to
transactions occurring after August 17, 2006, except that taxes
on certain transactions between supporting organizations and
their substantial contributors apply to transactions occurring on
or after July 25, 2006.

organization that represents a substantial portion of the
activities, assets, income, or expenses of the organization, as
compared to the organization as a whole.
• The person owns a controlling interest (measured by either
vote or value) in a corporation, partnership, or trust that is a
disqualified person.
• The person is a nonstock organization controlled directly or
indirectly by one or more disqualified persons.
Facts and circumstances tending to show no substantial
influence.
• The person is an independent contractor whose sole
relationship to the organization is providing professional advice
(without having decision-making authority) with respect to
transactions from which the independent contractor will not
economically benefit.
• The person has taken a vow of poverty.
• Any preferential treatment the person receives based on the
size of the person’s donation is also offered to others making
comparable widely solicited donations.
• The direct supervisor of the person is not a disqualified
person.
• The person does not participate in any management
decisions affecting the organization as a whole or a discrete
segment of the organization that represents a substantial
portion of the activities, assets, income, or expenses of the
organization, as compared to the organization as a whole.
What about persons who staff affiliated organizations? In
the case of multiple affiliated organizations, the determination of
whether a person has substantial influence is made separately
for each applicable tax-exempt organization. A person can be a
disqualified person with respect to more than one organization
in the same transaction.

Excess Benefit Transaction
An excess benefit transaction generally is a transaction in which
an economic benefit is provided by an applicable tax-exempt
organization, directly or indirectly, to or for the use of any
disqualified person, and the value of the economic benefit
provided by the applicable tax-exempt organization exceeds the
value of the consideration (including the performance of
services) received for providing such benefit, but see the
special rules below for donor advised funds and supporting
organizations. An excess benefit transaction also can occur
when a disqualified person embezzles from the exempt
organization.
To determine whether an excess benefit transaction has
occurred, all consideration and benefits exchanged between a
disqualified person and the applicable tax-exempt organization,
and all entities it controls, are taken into account.
For purposes of determining the value of economic benefits,
the value of property, including the right to use property, is the
fair market value. Fair market value is the price at which
property, or the right to use property, would change hands
between a willing buyer and a willing seller, neither being under
any compulsion to buy, sell or transfer property or the right to
use property, and both having reasonable knowledge of
relevant facts.
Donor advised funds. For a donor advised fund, an excess
benefit transaction includes a grant, loan, compensation, or
similar payment from the fund to a:
• Donor or donor advisor,
• Family member of a donor or donor advisor,
• 35% controlled entity of a donor or donor advisor, or
• 35% controlled entity of a family member of a donor or donor
advisor.
For these transactions, the excess benefit is defined as the
amount of the grant, loan, compensation, or similar payment.
For additional information, see the Instructions for Form 4720.
Supporting organizations. For any supporting organization
defined in section 509(a)(3), an excess benefit transaction
includes grants, loans, compensation, or similar payment
provided by the supporting organization to a:

What is Reasonable Compensation?
Reasonable compensation is the valuation standard that is
used to determine if there is an excess benefit in the exchange
of a disqualified person’s services for compensation.
Reasonable compensation is the value that would ordinarily
be paid for like services by like enterprises under like
circumstances. This is the section 162 standard that will apply
in determining the reasonableness of compensation. The fact
that a bonus or revenue-sharing arrangement is subject to a
cap is a relevant factor in determining the reasonableness of
compensation.
For determining the reasonableness of compensation, all
items of compensation provided by an applicable tax-exempt
organization in exchange for the performance of services are
taken into account in determining the value of compensation
(except for certain economic benefits that are disregarded, as
discussed later in What benefits are disregarded, later). Items
of compensation include:
• All forms of cash and noncash compensation, including
salary, fees, bonuses, severance payments, and deferred and
noncash compensation;

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• The payment of liability insurance premiums for, or the

A fixed payment is an amount of cash or other property
specified in the contract, or determined by a fixed formula that
is specified in the contract, which is to be paid or transferred in
exchange for the provision of specified services or property.

payment or reimbursement by the organization of taxes or
certain expenses under section 4958, unless excludable from
income as a de minimis fringe benefit under section 132(a)(4).
(A similar rule applies in the private foundation area.) Inclusion
in compensation for purposes of determining reasonableness
under section 4958 does not control inclusion in income for
income tax purposes;
• All other compensatory benefits, whether or not included in
gross income for income tax purposes;
• Taxable and nontaxable fringe benefits, except fringe
benefits described in section 132; and
• Foregone interest on loans.
Written intent required to treat benefits as
compensation. An economic benefit is not treated as
consideration for the performance of services unless the
organization providing the benefit clearly indicates its intent to
treat the benefit as compensation when the benefit is paid.
An applicable tax-exempt organization (or entity that it
controls) is treated as clearly indicating its intent to provide an
economic benefit as compensation for services only if the
organization provides written substantiation that is
contemporaneous with the transfer of the economic benefits
under consideration. Ways to provide contemporaneous written
substantiation of its intent to provide an economic benefit as
compensation include:
• The organization produces a signed written employment
contract;
• The organization reports the benefit as compensation on an
original Form W-2, Form 1099, Form 990, or Form 990-EZ, or
on an amended form filed prior to the start of an IRS
examination; or
• The disqualified person reports the benefit as income on the
person’s original Form 1040 or on an amended form filed prior
to the start of an IRS examination.
Exception. To the extent the economic benefit is excluded
from the disqualified person’s gross income for income tax
purposes, the applicable tax-exempt organization is not
required to indicate its intent to provide an economic benefit as
compensation for services. (For example, employer provided
health benefits, and contributions to qualified plans under
section 401(a).)
What benefits are disregarded? The following economic
benefits are disregarded for purposes of section 4958.
• Nontaxable fringe benefits, for example, an economic benefit
that is excluded from income under section 132.
• Benefits to volunteers, for example, an economic benefit
provided to a volunteer for the organization if the benefit is
provided to the general public in exchange for a membership
fee or contribution of $75 or less per year.
• Benefits to members or donors, for example, an economic
benefit provided to a member of an organization due to the
payment of a membership fee, or to a donor as a result of a
deductible contribution, if a significant number of
nondisqualified persons make similar payments or contributions
and are offered a similar economic benefit.
• Benefits to a charitable beneficiary, for example, an
economic benefit provided to a person solely as a member of a
charitable class that the applicable tax-exempt organization
intends to benefit as part of the accomplishment of its exempt
purpose.
• Benefits to a governmental unit, for example, a transfer of an
economic benefit to or for the use of a governmental unit, as
defined in section 170(c)(1), if exclusively for public purposes.
Is there an exception for initial contracts? Section 4958
does not apply to any fixed payment made to a person pursuant
to an initial contract. This is a very important exception, since it
would potentially apply, for example, to all initial contracts with
new, previously unrelated officers and contractors.
An initial contract is a binding written contract between an
applicable tax-exempt organization and a person who was not a
disqualified person immediately prior to entering into the
contract.

A fixed formula can, in general, incorporate an amount that
depends upon future specified events or contingencies, as long
as no one has discretion when calculating the amount of a
payment or deciding whether to make a payment (such as a
bonus).
Treatment as new contract. A binding written contract
providing that it can be terminated or canceled by the applicable
tax-exempt organization without the other party’s consent
(except as a result of substantial non-performance) and without
substantial penalty, is treated as a new contract, as of the
earliest date that any termination or cancellation would be
effective. Also, a contract in which there is a material change,
which includes an extension or renewal of the contract (except
for an extension or renewal resulting from the exercise of an
option by the disqualified person), or a more than incidental
change to the amount payable under the contract, is treated as
a new contract as of the effective date of the material change.
Treatment as a new contract can cause the contract to fall
outside the initial contract exception, and it thus would be tested
under the fair market value standards of section 4958.

Rebuttable Presumption of Reasonableness
Payments under a compensation arrangement are presumed to
be reasonable and the transfer of property (or right to use
property) is presumed to be at fair market value, if the following
three conditions are met.
1. The transaction is approved by an authorized body of the
organization (or an entity it controls) which is composed of
individuals who do not have a conflict of interest concerning the
transaction.
2. Prior to making its determination, the authorized body
obtained and relied upon appropriate data as to comparability.
There is a special safe harbor for small organizations. If the
organization has gross receipts of less than $1 million,
appropriate comparability data includes data on compensation
paid by three comparable organizations in the same or similar
communities for similar services.
3. The authorized body adequately documents the basis for
its determination concurrently with making that determination.
The documentation should include:
a. The terms of the approved transaction and the date
approved;
b. The members of the authorized body who were present
during debate on the transaction that was approved and those
who voted on it;
c. The comparability data obtained and relied upon by the
authorized body and how the data was obtained;
d. Any actions by a member of the authorized body having a
conflict of interest; and
e. Documentation of the basis for the determination before
the later of the next meeting of the authorized body or 60 days
after the final actions of the authorized body are taken, and
approval of records as reasonable, accurate and complete
within a reasonable time thereafter.
Special rebuttable presumption rule for nonfixed
payments. As a general rule, in the case of a nonfixed
payment, no rebuttable presumption arises until the exact
amount of the payment is determined, or a fixed formula for
calculating the payment is specified, and the three requirements
creating the presumption have been satisfied. However, if the
authorized body approves an employment contract with a
disqualified person that includes a nonfixed payment (for
example, discretionary bonus) with a specified cap on the
amount, the authorized body can establish a rebuttable
presumption as to the nonfixed payment when the employment
contract is entered into by, in effect, assuming that the
maximum amount payable under the contract will be paid, and
satisfying the requirements giving rise to the rebuttable
presumption for that maximum amount.

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An IRS challenge to the presumption of reasonableness.
The Internal Revenue Service can refute the presumption of
reasonableness only if it develops sufficient contrary evidence
to rebut the probative value of the comparability data relied
upon by the authorized body. This provision gives taxpayers
added protection if they faithfully find and use
contemporaneous persuasive comparability data when they
provide the benefits.
Organizations that do not establish a presumption of
reasonableness. An organization can still comply with section
4958 even if it did not establish a presumption of
reasonableness. In some cases, an organization may find it
impossible or impracticable to fully implement each step of the
rebuttable presumption process described above. In such
cases, the organization should try to implement as many steps
as possible, in whole or in part, in order to substantiate the
reasonableness of benefits as timely and as well as possible. If
an organization does not satisfy the requirements of the
rebuttable presumption of reasonableness, a facts and
circumstances approach will be followed, using established
rules for determining reasonableness of compensation and
benefit deductions in a manner similar to the established
procedures for section 162 business expenses.

The organization manager ordinarily will not be considered
knowing if, after full disclosure of the factual situation to an
appropriate professional, the organization manager relied on
the professional’s reasoned written opinion on matters within
the professional’s expertise or if the manager relied on the fact
that the requirements for the rebuttable presumption of
reasonableness have been satisfied. Participation by an
organization manager is willful if it is voluntary, conscious, and
intentional. An organization manager’s participation is due to
reasonable cause if the manager has exercised responsibility
on behalf of the organization with ordinary business care and
prudence.

Correcting an Excess Benefit Transaction
A disqualified person corrects an excess benefit transaction by
undoing the excess benefit to the extent possible, and by taking
any additional measures necessary to place the organization in
a financial position not worse than that in which it would be if
the disqualified person were dealing under the highest fiduciary
standards. The organization is not required to rescind the
underlying agreement; however, the parties may need to modify
an ongoing contract with respect to future payments.
A disqualified person corrects an excess benefit by making a
payment in cash or cash equivalents equal to the correction
amount to the applicable tax-exempt organization. The
correction amount equals the excess benefit plus the interest on
the excess benefit; the interest rate can be no lower than the
applicable Federal rate. There is an anti-abuse rule to prevent
the disqualified person from effectively transferring property
other than cash or cash equivalents.
Exception. For a correction of an excess benefit
transaction described in Donor advised funds (discussed
earlier), no amount repaid in a manner prescribed by the
Secretary can be held in a donor advised fund.
Property. With the agreement of the applicable tax-exempt
organization, a disqualified person can make a payment by
returning the specific property previously transferred in the
excess benefit transaction. The return of the property is
considered a payment of cash (or cash equivalent) equal to the
lesser of:
• The fair market value of the property on the date the property
is returned to the organization, or
• The fair market value of the property on the date the excess
benefit transaction occurred.
Insufficient payment. If the payment resulting from the
return of the property is less than the correction amount, the
disqualified person must make an additional cash payment to
the organization equal to the difference.
Excess payment. If the payment resulting from the return
of the property exceeds the correction amount described above,
the organization can make a cash payment to the disqualified
person equal to the difference.

Section 4958 Taxes
Tax on disqualified persons. An excise tax equal to 25% of
the excess benefit is imposed on each excess benefit
transaction between an applicable tax-exempt organization and
a disqualified person. The disqualified person who benefited
from the transaction is liable for the tax. If the 25% tax is
imposed and the excess benefit transaction is not corrected
within the taxable period, an additional excise tax equal to
200% of the excess benefit is imposed.
If a disqualified person makes a payment of less than the full
correction amount, the 200% tax is imposed only on the unpaid
portion of the correction amount. If more than one disqualified
person received an excess benefit from an excess benefit
transaction, all such disqualified persons are jointly and
severally liable for the taxes.
To avoid the imposition of the 200% tax, a disqualified
person must correct the excess benefit transaction during the
taxable period. The taxable period begins on the date the
transaction occurs and ends on the earlier of the date the
statutory notice of deficiency is issued or the section 4958 taxes
are assessed. This 200% tax can be abated if the excess
benefit transaction subsequently is corrected during a 90-day
correction period.
Tax on organization managers. An excise tax equal to 10%
of the excess benefit may be imposed on the participation of an
organization manager in an excess benefit transaction between
an applicable tax-exempt organization and a disqualified
person. This tax, which cannot exceed $20,000 with respect to
any single transaction, is only imposed if the 25% tax is
imposed on the disqualified person, the organization manager
knowingly participated in the transaction, and the manager’s
participation was willful and not due to reasonable cause. There
is also joint and several liability for this tax. An organization
manager may be liable for both the tax on disqualified persons
and on organization managers in appropriate circumstances.
An organization manager is any officer, director, or trustee of
an applicable tax-exempt organization, or any individual having
powers or responsibilities similar to officers, directors, or
trustees of the organization, regardless of title. An organization
manager is not considered to have participated in an excess
benefit transaction where the manager has opposed the
transaction in a manner consistent with the fulfillment of the
manager’s responsibilities to the organization. For example, a
director who votes against giving an excess benefit would
ordinarily not be subject to this tax.
A person participates in a transaction knowingly if the person
has actual knowledge of sufficient facts so that, based solely
upon such facts, the transaction would be an excess benefit
transaction. Knowing does not mean having reason to know.

Churches and Section 4958
The regulations make it clear that the IRS will apply the
procedures of section 7611 when initiating and conducting any
inquiry or examination into whether an excess benefit
transaction has occurred between a church and a disqualified
person.

Revenue Sharing Transactions
Proposed intermediate sanction regulations were issued in
1998. The proposed regulations had special provisions covering
“any transaction in which the amount of any economic benefit
provided to or for the use of a disqualified person is determined
in whole or in part by the revenues of one or more activities of
the organization. . .” — so-called revenue-sharing transactions.
Rather than setting forth additional rules on revenue-sharing
transactions, the final regulations reserve this section.
Consequently, until the Service issues new regulations for this
reserved section on revenue-sharing transactions, these
transactions will be evaluated under the general rules (for
example, the fair market value standards) that apply to all

-33-

• Search publications online by topic or keyword.
• Use the online Internal Revenue Code, Regulations, or other

contractual arrangements between applicable tax-exempt
organizations and their disqualified persons.

official guidance.
• View Internal Revenue Bulletins (IRBs) published in the last
few years.
• Sign up to receive local and national tax news by email.

Revocation of Exemption and Section 4958
Section 4958 does not affect the substantive standards for tax
exemption under section 501(c)(3) or section 501(c)(4),
including the requirements that the organization be organized
and operated exclusively for exempt purposes, and that no part
of its net earnings inure to the benefit of any private shareholder
or individual. The legislative history indicates that in most
instances, the imposition of this intermediate sanction will be in
lieu of revocation. The IRS has indicated that the following
factors will be considered (among other facts and
circumstances) in determining whether to revoke an applicable
tax-exempt organization’s exemption status where an excess
benefit transaction has occurred.
• The size and scope of the organization’s regular and ongoing
activities that further exempt purposes before and after the
excess benefit transaction or transactions occurred.
• The size and scope of the excess benefit transaction or
transactions (collectively, if more than one) in relation to the
size and scope of the organization’s regular and ongoing
activities that further exempt purposes.
• Whether the organization has been involved in multiple
excess benefit transactions with one or more persons.
• Whether the organization has implemented safeguards that
are reasonably calculated to prevent excess benefit
transactions.
• Whether the excess benefit transaction has been corrected,
or the organization has made good faith efforts to seek
correction from the disqualified person(s) who benefited from
the excess benefit transaction.

Phone. Many services are available by phone.

• Ordering forms, instructions, and publications. Call

1-800-TAX-FORM (1-800-829-3676) to order current-year
forms, instructions, and publications, and prior-year forms and
instructions. You should receive your order within 10 days.
• TTY/TDD equipment. If you have access to TTY/TDD
equipment, call 1-800-829-4059 to ask tax questions or to order
forms and publications.
Mail. You can send your order for forms, instructions,
and publications to the address below. You should
receive a response within 10 days after your request is
received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
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.
• Tax Map: An electronic research tool and finding aid.
• Tax law frequently asked questions.
• Tax Topics from the IRS telephone response system.
• Fill-in, print, and save features for most tax forms.
• Internal Revenue Bulletins.
• Internal Revenue Code — Title 26 of the U.S. Code.
• Toll-free and email technical support.
• Two releases during the year.

Appendix F: Forms and Publications To
File or Use
Internet. You can access the IRS website at IRS.gov 24
hours a day, 7 days a week to:

-The first release will ship the beginning of January 2011.

• Download forms, including talking tax forms, instructions and

-The final release will ship the beginning of March 2011.

publications.
• Order IRS products online.
• Research your tax questions online.

Purchase the DVD from National Technical Information
Service (NTIS) at www.irs.gov/cdorders for $30 (no handling

Other Forms That May Be Required
Schedule A (Form 990 or 990-EZ)

Public Charity Status and Public Support

Schedule B (Form 990, 990-EZ, or 990-PF)

Contributors

Schedule C (Form 990 or 990-EZ)

Political Campaign and Lobbying Activities

Schedule E (Form 990 or 990-EZ)

Schools

Schedule G (Form 990 or 990-EZ)

Supplemental Information Regarding Fundraising or Gaming Activities

Schedule L (Form 990 or 990-EZ)

Transactions with Interested Persons

Schedule N (Form 990 or 990-EZ)

Liquidation, Termination, Dissolution or Significant Disposition of Assets

Schedule O (Form 990 or 990-EZ)

Supplemental Information

Forms W-2 and W-3

Wage and Tax Statement; and Transmittal of Wage and Tax Statements

Form W-9

Request for Taxpayer Identification Number and Certification

Form 720

Quarterly Federal Excise Tax Return

Form 926

Return by a U.S. Transferor of Property to a Foreign Corporation

Form 940

Employer’s Annual Federal Unemployment (FUTA) Tax Return

Form 941

Employer’s QUARTERLY Federal Tax Return. Used to report social security, Medicare,
and income taxes withheld by an employer and social security and Medicare taxes paid
by an employer

Form 943

Employer’s Annual Tax Return for Agricultural Employees

-34-

fee) or call 1-877-233-6767 toll free to buy the DVD for $30
(plus a $6 handling fee).
Trust fund recovery penalty. If certain excise, income,
social security, and Medicare taxes that must be collected or
withheld are not collected or withheld, or these taxes are not
paid to the IRS, a trust fund recovery penalty may apply. The
trust fund recovery penalty may be imposed on all persons
(including volunteers) who the IRS determines were responsible
for collecting, accounting for, and paying over these taxes, and
who acted willfully in not doing so.
This penalty does not apply to volunteer unpaid members of
any board of trustees or directors of a tax-exempt organization,

if these members are solely serving in an honorary capacity, do
not participate in the day-to-day or financial activities of the
organization, and do not have actual knowledge of the failure to
collect, account for, and pay over these taxes. However, the
preceding sentence does not apply if it results in no person
being liable for the penalty.
The penalty is equal to the unpaid trust fund tax. See Pub.
15 (Circular E), Employer’s Tax Guide, for more details,
including the definition of responsible persons.

Form 990-T

Exempt Organization Business Income Tax Return. Filed separately for organizations with gross income of
$1,000 or more from business unrelated to the organization’s exempt purpose. The Form 990-T is also filed to
pay the section 6033(e)(2) proxy tax. For Form 990, see Part V, line 3 and its instructions; for Form 990-EZ, see
Part V, line 35 and its instructions

Form 990-W

Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

Form 1023

Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

Form 1024

Application for Recognition of Exemption Under Section 501(a)

Form 1040

U.S. Individual Income Tax Return

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 or 990-EZ. However, if such a trust does not have any taxable income under Subtitle A of the
Code, it can file Form 990 or 990-EZ, and does not have to file Form 1041 to meet its section 6012 filing
requirement. If this condition is met, complete Form 990 or 990-EZ, and do not file Form 1041

Form 1096

Annual Summary and Transmittal of U.S. Information Returns

Form 1098 series

Information returns to report mortgage interest, student loan interest, qualified tuition and related expenses
received, and a contribution of a qualified vehicle that has a claimed value of more than $500

Form 1099 series

Information returns to report acquisitions or abandonments of secured property, proceeds from broker and barter
exchange transactions, cancellation of debt, dividends and distributions, certain government and state qualified
tuition program payments, taxable distributions from cooperatives, interest payments, payments of long-term care
and accelerated death benefits, miscellaneous income payments, distributions from an HSA, Archer MSA or
Medicare Advantage MSA, original issue discount, distributions from pensions, annuities, retirement or
profit-sharing plans, IRAs, insurance contracts, etc., and proceeds from real estate transactions. Also, use certain
of these returns to report amounts that were received as a nominee on behalf of another person

Form 1120-POL

Income Tax Return for Certain Political Organizations

Form 1128

Application To Adopt, Change, or Retain a Tax Year

Form 2848

Power of Attorney and Declaration of Representative

Form 3115

Application for Change in Accounting Method

Form 3520

Annual Return To Report Transaction With Foreign Trusts and Receipt of Certain Foreign Gifts

Form 4506

Request for Copy of Tax Return

Form 4506-A

Request for Public Inspection or Copy of Exempt or Political Organization IRS Form

Form 4562

Depreciation and Amortization

Form 4720

Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the Internal
Revenue Code

Form 5471

Information Return of U.S. Persons With Respect To Certain Foreign Corporations

Form 5500

Annual Return/Report of Employee Benefit Plan. Employers who maintain pension, profit-sharing, or other funded
deferred compensation plans are generally required to file the Form 5500. This requirement applies whether or
not the plan is qualified under the Internal Revenue Code and whether or not a deduction is claimed for the
current tax year

Form 5578

Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax

Form 5768

Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence
Legislation

Form 7004

Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other
Returns

Form 8038

Information Return for Tax-Exempt Private Activity Bond Issues

-35-

Form 8282

Donee Information Return. Required of the donee of charitable deduction property who sells, exchanges, or
otherwise disposes of donated property within 3 years after receiving it. The form is also required of any
successor donee who 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

Form 8274

Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer
Social Security and Medicare Taxes

Form 8283

Noncash Charitable Contributions

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). However, if the organization receives a charitable cash
contribution in excess of $10,000, it is not subject to the reporting requirement since the funds were not received
in the course of a trade or business

Form 8328

Carryforward Election of Unused Private Activity Bond Volume Cap

Form 8718

User Fee for Exempt Organization Determination Letter Request

Form 8821

Tax Information Authorization

Form 8822

Change of Address. Used to notify the IRS of a change in mailing address that occurs after the return is filed

Form 8868

Application for Extension of Time to File an Exempt Organization Return

Form 8871

Political Organization Notice of Section 527 Status

Form 8872

Political Organization Report of Contributions and Expenditures

Form 8886

Reportable Transaction Disclosure Statement

Form 8886-T

Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction

Form 8899

Notice of Income from Donated Intellectual Property. Used to report net income from qualified intellectual
property to the IRS and the donor

Form SS-4

Application for Employer Identification Number

Form TD F 90-22.1

Report of Foreign Bank and Financial Accounts

Helpful Publications
Publication 15

(Circular E), Employer’s Tax Guide

Publication 15-A

Employer’s Supplemental Tax Guide (Fringe Benefits)

Publication 463

Travel, Entertainment, Gift, and Car Expenses

Publication 525

Taxable and Nontaxable Income

Publication 526

Charitable Contributions

Publication 538

Accounting Periods and Methods

Publication 557

Tax-Exempt Status for Your Organization

Publication 561

Determining the Value of Donated Property

Publication 598

Tax on Unrelated Business Income of Exempt Organizations

Publication 892

Organization Appeal Procedures for Unagreed Issues

Publication 910

IRS Guide to Free Tax Services

Publication 946

How To Depreciate Property

Publication 947

Practice Before the IRS and Power of Attorney

Publication 1771

Charitable Contributions — Substantiation and Disclosure Requirements

Publication 1779

Employee Independent Contractor Brochure

Publication 1828

Tax Guide for Churches and Religious Organizations

Publication 3079

Gaming Publication for Tax-Exempt Organizations

Publication 3386

Tax Guide for Veterans’ Organizations

Publication 3833

Disaster Relief, Providing Assistance through Charitable Organizations

-36-

Publication 4220

Applying for 501(c)(3) Tax-Exempt Status

Publication 4221-PC

Compliance Guide for 501(c)(3) Public Charities

Publication 4221-PF

Compliance Guide for 501(c)(3) Private Foundations

Publication 4302

A Charity’s Guide to Vehicle Donations

Publication 4303

A Donor’s Guide to Vehicle Donations

Publication 4630

Exempt Organizations Products and Services Navigator

Appendix G: Use of Form 990 or 990-EZ
To Satisfy State Reporting Requirements

(2) the state determines that the form was not completed by
following the applicable Form 990 or 990-EZ instructions or
supplemental state instructions. In such case, the state may ask
the organization to provide the missing information or to submit
an amended return.

Some states and local government units will accept a copy of
Form 990 or 990-EZ in place of all or part of their own financial
report forms. The substitution applies primarily to section
501(c)(3) organizations, but some of the other types of section
501(c) organizations are also affected. If the organization uses
Form 990 or 990-EZ to satisfy state or local filing requirements,
such as those under state charitable solicitation acts, note the
following discussions.

Use Of Audit Guides May Be Required
To ensure that all organizations report similar transactions
uniformly, many states require that contributions, gifts, grants,
similar amounts, and functional expenses be reported
according to the AICPA industry audit and accounting guide,
Not-for-Profit Organizations (New York, NY, AICPA, 2003),
supplemented by Standards of Accounting and Financial
Reporting for Voluntary Health and Welfare Organizations
(Washington, DC, National Health Council, Inc., 1998, 4th
edition).

Determine State Filing Requirements
The organization can consult the appropriate officials of all
states and other jurisdictions in which it does business to
determine their specific filing requirements. Doing business in a
jurisdiction can include any of the following: (a) soliciting
contributions or grants by mail or otherwise from individuals,
businesses, or other charitable organizations; (b) conducting
programs; (c) having employees within that jurisdiction; (d)
maintaining a checking account; or (e) owning or renting
property there.

Donated Services And Facilities
Even though reporting donated services and facilities as items
of revenue and expense is called for in certain circumstances
by the two publications named above, many states and the IRS
do not permit the inclusion of those amounts in Parts VIII and IX
of Form 990 or Part I of Form 990-EZ. The optional reporting of
donated services and facilities is discussed in the instructions
for Part III for Forms 990 and 990-EZ.

Monetary Tests May Differ
Some or all of the dollar limitations applicable to Form 990 or
990-EZ when filed with the IRS may not apply when using Form
990 or 990-EZ in place of state or local report forms. Examples
of the IRS dollar limitations that do not meet some state
requirements are the normally $50,000 gross receipts minimum
that creates an obligation to file with the IRS and the $100,000
minimum for listing independent contractors in Form 990, Part
VII, Section B, or Form 990-EZ, Part VI, line 51.

Amended Returns
If the organization submits supplemental information or files an
amended Form 990 or 990-EZ with the IRS, it must also send a
copy of the information or amended return to any state with
which it filed a copy of Form 990 or 990-EZ originally to meet
that state’s filing requirement. If a state requires the
organization to file an amended Form 990 or 990-EZ to correct
conflicts with the Form 990 or 990-EZ instructions, the
organization must also file an amended return with the IRS.

Additional Information May Be Required
State or local filing requirements may require the organization
to attach to Form 990 or 990-EZ one or more of the following:
(a) additional financial statements, such as a complete analysis
of functional expenses or a statement of changes in net assets;
(b) notes to financial statements; (c) additional financial
schedules; (d) a report on the financial statements by an
independent accountant; and (e) 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 or 990-EZ filed with the IRS.
Even if the Form 990 or 990-EZ that the organization files
with the IRS is accepted by the IRS as complete, a copy of the
same return filed with a state will not fully satisfy that state’s
filing requirement if (1) required information is not provided,
including any of the additional information discussed above, or

Method of Accounting
Most states require that all amounts be reported based on the
accrual method of accounting. See also General Instruction D.

Time For Filing May Differ
The deadline for filing Form 990 or 990-EZ with the IRS differs
from the time for filing reports with some states.

Public Inspection
The Form 990 or 990-EZ information made available for public
inspection by the IRS may differ from that made available by
the states, such as Schedule B (Form 990, 990-EZ, or 990-PF).

-37-

Paperwork Reduction Act Notice. We ask for the information on these instructions 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.
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. Generally, tax returns and return information are
confidential, as required by section 6103.
The time needed to complete and file this form and related schedules will vary depending on individual circumstances. The
estimated average times are:
Form

Recordkeeping

Learning about the law or
the form

Preparing
the
form

Copying, assembling,
and sending the form
to the IRS

990-EZ

33 hr., 57 min.

11 hr., 33 min.

14 hr., 28 min.

32 min.

Schedule A (Form 990 or 990-EZ)

39 hr., 56 min.

6 hr., 51 min.

7 hr., 48 min.

-----

Schedule B (Form 990, 990-EZ, or
990-PF)

5 hr., 58 min.

1 hr., 35 min.

1 hr., 45 min.

-----

Schedule C (Form 990 or 990-EZ)

22 hr., 0 min.

42 min.

1 hr., 5 min.

-----

Schedule E (Form 990 or 990-EZ)

5 hr., 30 min.

53 min.

1 hr., 1 min.

-----

Schedule G (Form 990 or 990-EZ)

24 hr., 9 min.

24 min.

48 min.

-----

Schedule L (Form 990 or 990-EZ)

5 hr., 30 min.

1 hr., 5 min.

1 hr., 13 min.

-----

Schedule N (Form 990 or 990-EZ)

7 hr., 53 min.

42 min.

51 min.

-----

Schedule O (Form 990 or 990-EZ)

43 min.

-----

-----

-----

Comments and suggestions. We welcome your comments about these instructions and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in your correspondence.
You can email us at *[email protected]. (The asterisk must be included in the address.) Please put “Publications Comment” on
the subject line. You can also send us comments from www.irs.gov/formspubs/index, select “Comment on Tax Forms and
Publications” under “Information about.” Although we cannot respond individually to each comment received, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Do not send the form to this address. Instead, see When, Where, and How to File, in General Instruction D.

-38-

Index

A
Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Accounting:
Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 37
Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . 15
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 15
Accrual (method) . . . . . . . . . . . . . . . . . . . . . . . . . 37
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Change of . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 35
Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Advance ruling period . . . . . . . . . . . . . . . . . . . . . . 5
AKA or a.k.a. (See Name and address)
Amended return . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Description of amendments . . . . . . . . . . . . . . 6
Annual information return . . . . . . . . . . . . . . . 3, 29
Anti-abuse rule . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Appendix:
Appendix A Exempt Organizations
Reference Chart . . . . . . . . . . . . . . . . . . . . . 24
Appendix B How to Determine Whether an
Organization’s Gross Receipts are
Normally $50,000 (or $5,000) or
Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Appendix C Special Gross Receipts Tests
for Determining Exempt Status of Section
501(c)(7) and 501(c)(15)
Organizations . . . . . . . . . . . . . . . . . . . . . . . . 26
Appendix D Public Inspection of
Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Appendix E Section 4958 Excess Benefit
Transactions . . . . . . . . . . . . . . . . . . . . . . . . . 30
Appendix F Forms and Publications To File
or Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Appendix G Use of Form 990 or 990-EZ To
Satisfy State Reporting
Requirements . . . . . . . . . . . . . . . . . . . . . . . . 37
Application for tax exemption . . . . . . . . . . . . . . 27
Application pending . . . . . . . . . . . . . . . . . . . . . . . . 4
Assets:
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14, 15
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Assistance to individuals . . . . . . . . . . . . . . . . . . 13
Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 7
Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Audit guides . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
B
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Bank account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Bingo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Black lung benefit trusts . . . . . . . . . . . . . . . . . . . . 5
Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Books and records . . . . . . . . . . . . . . . . . . . . 12, 20
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Business activities . . . . . . . . . . . . . . . . . . . . . . . . 11
C
Calendar year . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 8
Candidates for public office . . . . . . . . . . . . 19, 22
Capital contributions . . . . . . . . . . . . . . . . . . . . . . 20
Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Cash receipts and disbursements . . . . . . . . . . 5
Certificates of deposit . . . . . . . . . . . . . . . . . . 11, 15
Changes in net assets . . . . . . . . . . . . . . . . . 14, 37
Children:
Photographs of missing . . . . . . . . . . . . . . . . . . 3
Church . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 33
Church-affiliated organization . . . . . . . . . . . . . . 4
Club facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Commercial co-venture . . . . . . . . . . . . . . . . . . . 10
Compensation . . . . . . . . . . . . . . . . . 14, 16, 22, 23
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Reasonable . . . . . . . . . . . . . . . . . . . . . . . . . 31, 32
Reportable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Conformed copy . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Contemporaneous . . . . . . . . . . . . . . . . . . . . . . . . 32
Contracts:
Initial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 13
Contributors:
Schedule of . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Controlled entity . . . . . . . . . . . . . . . . . . . . . . . . 4, 21
Controlling organization . . . . . . . . . . . . . . . . . 4, 21
Copies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
D
Defined contribution plan . . . . . . . . . . . . . . . . . . 16
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Disqualified person . . . . . . . . . . . . . . . . . . . . . . . 30
Disregarded entities . . . . . . . . . . . . . . . . . . . . . . . 7
Dissolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . 11, 12, 21
Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Donations:
Of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Of use of property . . . . . . . . . . . . . . . . . . . . . . 10
Donor advised fund . . . . . . . . . . . . . . . . . . . . . . . 21
Donor advisor . . . . . . . . . . . . . . . . . . . . . . . 21, 31
Sponsoring organization . . . . . . . . . . . . . . 4, 21
Supporting organization . . . . . . . . . . . . . . . . . 31
Dues and assessments . . . . . . . . . . . . . . . . . . . 10
Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Nondeductible . . . . . . . . . . . . . . . . . . . . . . . . . 18
E
Economic benefit:
Disregarded . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Interest on loans (foregone) . . . . . . . . . . . . . 32
Liability insurance premiums . . . . . . . . . . . . 32
Nontaxable fringe . . . . . . . . . . . . . . . . . . . . . . 32
Electronic filing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Element of common control . . . . . . . . . . . . . . . 22
Email subscription . . . . . . . . . . . . . . . . . . . . . . . . . 3
Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . 14
Employer identification number (EIN) . . . . . . . 8
Excess benefit transaction . . . . . 20, 30, 31, 33
Excise tax . . . . . . . . . . . . . . . . . . . . . . . . . 19, 20, 33
Exempt purpose . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Expenses:
Functional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Program service . . . . . . . . . . . . . . . . . . . . . . . . 12
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Extension of time to file . . . . . . . . . . . . . . . . . . . . 6
F
Fair market value . . . . . . . . . . . . . . . . . . . . . . 31, 32
Federal unemployment tax (FUTA) . . . . . . . . 14
Federated fundraising agencies . . . . . . . . . . . 10
Fees:
Copies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Fundraising . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Initiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Laboratory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Professional . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Final return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

-39-

Financial account . . . . . . . . . . . . . . . . . . . . . . . . . 20
Fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Five highest compensated employees . . . . . 22
Fixed payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Foreign country . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Foreign organization (See Organization)
Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34, 35
Form 1023, Application for Recognition of
Exemption Under Section 501(c)(3) of the
Internal Revenue Code . . . . . . . . . . . . . . . . 4
Form 1024, Application for Recognition of
Exemption Under Section 501(a) or for
Determination Under Section 120 . . . . . . 4
Form 1041, U.S. Income Tax Return for
Estates and Trusts . . . . . . . . . . . . . . . . . . . . 4
Form 1065, U.S. Return of Partnership
Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Form 1099-MISC, Miscellaneous Income,
Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Form 1120-POL, U.S. Income Tax Return for
Certain Political Organizations . . . . . . . . 19
Form 1128, Application To Adopt, Change,
or Retain a Tax Year . . . . . . . . . . . . . . . . . . 5
Form 3115, Application for Change in
Accounting Method . . . . . . . . . . . . . . . . . . . . 5
Form 4506, Request for Copy of Tax
Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Form 4506-A, Request for Public Inspection
or Copy of Exempt or Political
Organization IRS Form . . . . . . . . . . . . . . . 27
Form 4720, Return of Certain Excise Taxes
on Charities and Other Persons Under
Chapters 41 and 42 of the Internal
Revenue Code . . . . . . . . . . . . . . . . . . . . 19, 20
Form 5500, Annual Return/Report of
Employee Benefit Plan . . . . . . . . . . . . . . . . 5
Form 8822, Change of Address . . . . . . . . . . 8
Form 8868, Application for Extension of
Time To File an Exempt Organization
Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Form 8886-T, Disclosure by Tax-Exempt
Entity Regarding Prohibited Tax Shelter
Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Form 941, Employer’s Quarterly Federal Tax
Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Form 990-BL, Information and Initial Excise
Tax Return for Black Lung Benefit Trusts
and Certain Related Persons . . . . . . . . . . 5
Form 990-N, Electronic Notice (e-Postcard)
for Tax-Exempt Organizations not
Required To File Form 990 or
990-EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Form 990-PF, Return of Private Foundation
or Section 4947(a)(1) Nonexempt
Charitable Trust Treated as a Private
Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Form 990-T, Exempt Organization Business
Income Tax Return . . . . . . . . . . . . . . . . 18, 20
Form W-2, Wage and Tax Statement . . . . 16
Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
De minimis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Working condition . . . . . . . . . . . . . . . . . . . . . . 17
Fund balances . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Fundraising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Fundraising events . . . . . . . . . . . 1, 7, 10, 12, 13
FUTA (See Federal unemployment tax)
G
Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Goods or services . . . . . . . . . . . . . . . . . . . . . . . . 13
Governing documents . . . . . . . . . . . . . . . . . . . . 17
Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 13
Gross receipts . . . . . . . . . . . . . . . . . . . . . . . . . 20, 25
Gross rental income . . . . . . . . . . . . . . . . . . . . . . 11
Gross revenue (See Revenue)

Gross sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Group exemption number (GEN) . . . . . . . . . . . 8
Group return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
H
Heath benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Helpful hints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Helpful publications . . . . . . . . . . . . . . . . . . . . . . . 36
Historic and continuing relationship . . . . . . . . 22
Hours per week . . . . . . . . . . . . . . . . . . . . . . . . . . 16
I
Incomplete return . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Independent contractors . . . . . . . . . . . . . . . 14, 22
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Investment:
Program-related . . . . . . . . . . . . . . . . . . . . . 11, 12
Rental income . . . . . . . . . . . . . . . . . . . . . . . . . 12
K
Key employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
L
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Late filing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Liabilities, total . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
List of officers directors, trustees, and key
employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
List of required schedules and
attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Lobbying:
Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Grassroots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Lobbying expenses . . . . . . . . . . . . . . . . . . . . . . . 18
Local or subordinate organizations . . . . . . . . . 28
M
Maintenance expense . . . . . . . . . . . . . . . . . . . . 14
Major disposition of assets . . . . . . . . . . . . . . . . 19
Medicare taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Membership benefits . . . . . . . . . . . . . . . . . . . . . 11
Membership dues and assessments (See
Dues and assessments)
Miscellaneous expenses . . . . . . . . . . . . . . . . . . 14
Miscellaneous income . . . . . . . . . . . . . . . . . . . . 16
Mission society . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Money market funds . . . . . . . . . . . . . . . . . . . . . . 15
Mortgage interest (See Interest)
N
Name and address . . . . . . . . . . . . . . . . . . . . . . . . 8
Name change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Net assets (See Assets)
Noncash contributions . . . . . . . . . . . . . . . . . . . . 11
Nondiscrimination policy . . . . . . . . . . . . . . . . . . 20
Nonexempt charitable trust . . . . . . . . . . . . . . . . 21
Nonfixed payments (See Payments)
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . 13
Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
O
Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Offices:
Permanent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Regional or district . . . . . . . . . . . . . . . . . . 28, 29

Organization:
Affiliated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 30
Political . . . . . . . . . . . . . . . . . . . . . . . 5, 19, 22, 27
Related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Religious . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Supporting . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 31
Organization managers . . . . . . . . . . . . . . . . . . . 33
Organizing document . . . . . . . . . . . . . . . . . . . . . 17
Other Assets (See Assets)
P
Paid preparer . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Identifying number of . . . . . . . . . . . . . . . . . . . 23
Payments:
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . 31
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Independent contractors . . . . . . . . . . . . . . . . 14
Nonfixed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . 17, 31
To affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Payroll taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Failure to file . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Phone Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Political campaign activities . . . . . . . . . . . . . . . 22
Political expenditures . . . . . . . . . . . . . . . . . . . . . 19
Political organization (See Organization)
Postage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Prior period adjustment . . . . . . . . . . . . . . . . . . . . 5
Private delivery services . . . . . . . . . . . . . . . . . . . 6
Private foundation . . . . . . . . . . . . . . . . . . . . . . . . . 5
Professional fees (See Fees)
Program services . . . . . . . . . . . . . . . . . . . . . . . . . 11
Program-related investment (See Investment)
Proxy tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Public charity . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 21
Public inspection . . . . . . . . . . . . 7, 26, 27, 28, 37
Publications:
Helpful . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Pub. 15, Circular E Employer’s Tax
Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 35
Pub. 15-A, Employer’s Supplemental Tax
Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Pub. 1771, Charitable
Contributions — Substantiation and
Disclosure Requirements . . . . . . . . . . . . . 10
Pub. 1779, Independent Contractor or
Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Pub. 463, Travel, Entertainment, Gift, and
Car Expenses . . . . . . . . . . . . . . . . . . . . . . . . 11
Pub. 525, Taxable and Nontaxable
Income . . . . . . . . . . . . . . . . . . . . . . . . . . . 17, 22
Pub. 526, Charitable Contributions . . . . . 10,
11
Pub. 557, Tax-Exempt Status for Your
Organization . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Pub. 598, Tax on Unrelated Business
Income of Exempt Organizations . . . . . . 18
Pub. 946, How To Depreciate
Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Pub. 947, Practice Before the IRS and
Power of Attorney . . . . . . . . . . . . . . . . . . . . 23
Purpose of form . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
R
Raffles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Related Organization (See Organization)
Rent Expenses (See Expenses)
Reportable compensation (See
Compensation)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 13
Program service . . . . . . . . . . . . . . . . . . . . . 10, 11
Revenue sharing transactions . . . . . . . . . . . . . 33

-40-

Revocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Rounding off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 13
S
Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Sale:
Of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Of inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Of merchandise . . . . . . . . . . . . . . . . . . . . . . . . 12
Of securities . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Sale of securities (See Sale)
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 15
Savings accounts (See Savings)
Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34, 35
Schedule A (Form 990 or 990-EZ), Public
Charity Status and Public Support . . . . . . 8,
22
Schedule B (Form 990, 990-EZ, or 990-PF),
Schedule of Contributors . . . . . . . . 2, 8, 37
Schedule C (Form 990 or 990-EZ), Political
Campaign and Lobbying Activities . . . . 18,
22
Schedule E (Form 990 or 990-EZ),
Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Schedule G (Form 990 or 990-EZ),
Supplemental Information Regarding
Fundraising or Gaming Activities . . . . . . 13
Schedule L (Form 990 or 990-EZ),
Transactions With Interested
Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Schedule N (Form 990 or 990-EZ),
Liquidation, Termination, Dissolution, or
Significant Disposition of Assets . . . . . 6, 8,
19
Schedule O . . . . . 1, 5, 6, 7, 8, 13, 14, 15, 16,
17, 18, 20, 21, 22, 34, 38
School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 15
Securities account . . . . . . . . . . . . . . . . . . . . . . . . 20
Severance payments (See Payments)
SFAS 116, Accounting for Contributions
Received and Contributions Made . . . . . 5, 9,
15
Shipping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Short accounting period or short year . . . . . . . 5
Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Significant Disposition of Net Assets . . . . . . . 19
Social security number . . . . . . . . . . . . . . . . . . . . 23
Social security taxes . . . . . . . . . . . . . . . . . . . . . . 14
Solicitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . 8
State filing requirements . . . . . . . . . . . . . . . . 6, 37
State reporting requirements . . . . . . . . . . . . 5, 37
Statement of Program Service
Accomplishments . . . . . . . . . . . . . . . . . . . . . . 15
Substantial contributor . . . . . . . . . . . . . . . . . . . . 31
Substantial influence . . . . . . . . . . . . . . . . . . . . . . 30
Substantiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Substitute forms . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Supporting organization (See Organization)
Sweepstakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
T
Tax shelter transaction . . . . . . . . . . . . . . . . . . . . 20
Tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14, 20, 33
Telephone number . . . . . . . . . . . . . . . . . . . . . . . . 8
Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 19
Total assets (See Assets)
Transfers:
To exempt non-charitable related
organizations . . . . . . . . . . . . . . . . . . . . . . . . 22
Trust, section 4947(a)(1) . . . . . . . . . . . . . . . . 4, 21
Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

U
U.S. possession . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
U.S. Treasury bills . . . . . . . . . . . . . . . . . . . . . 11, 15
Unrelated trade or business . . . . . . . . . . . . . . . 11
Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18, 27
Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

V
Value:
Nominal or insubstantial . . . . . . . . . . . . . . . . 10
W
Website (See Address)

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Who must file . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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