Sch A_Public Charity Status and Public

2010

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

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
Note. Terms in bold are defined in the
Glossary of the Instructions for Form 990.

Purpose of Schedule
Schedule A (Form 990 or 990-EZ) is used
by an organization that files Form 990 or
Form 990-EZ to provide the required
information regarding public charity
status and public support.

Who Must File
An organization that answered ‘‘Yes’’ to
Form 990, Part IV, line 1, must complete
and attach Schedule A (Form 990 or
990-EZ) to Form 990. Any section
501(c)(3) organization or section
4947(a)(1) nonexempt charitable trust
that files a Form 990-EZ must complete
and attach this schedule to Form 990-EZ.
These include:
• Organizations that are described in
section 501(c)(3) and are public
charities;
• Organizations that are described in
sections 501(e), 501(f), 501(k), or 501(n);
and
• Nonexempt charitable trusts
described in section 4947(a)(1) that are
not treated as private foundations.
If an organization is not required to file
Form 990 or 990-EZ but chooses to do
so, it must file a complete return and
provide all of the information requested,
including the required schedules.
Any organization that is exempt
TIP from tax under section 501(c)(3)
but is a private foundation and not
a public charity should not file Form 990,
Form 990-EZ, or Schedule A (Form 990
or 990-EZ), but should file Form 990-PF.
See instructions to Part I.

Accounting Method
When completing Schedule A (Form 990
or 990-EZ), the organization must use the
same accounting method it checked on
Form 990, Part XII, line 1, or Form
990-EZ, line G. The organization must
use this accounting method in reporting
all amounts on Schedule A (Form 990 or
990-EZ), regardless of the accounting
method it used in completing Schedule A
(Form 990 or 990-EZ) for prior years.
If the accounting method the
organization used in completing the 2009

Schedule A (Form 990 or 990-EZ) was
different from the accounting method
checked on the 2010 Form 990, Part XII,
line 1, or the 2010 Form 990-EZ, line G,
the organization should not report, in
either Part II or Part III, the amounts
reported in the applicable columns of the
2009 Schedule A (Form 990 or 990-EZ).
Instead, the organization should report all
amounts in Part II or Part III using the
accounting method checked on the 2010
Form 990, Part XII, line 1, or the 2010
Form 990-EZ, line G.
Example 1. An organization checks
“Cash” on Form 990, Part XII, line 1. It
should report the amounts in Part II or
Part III using the cash method. If the
organization filed a 2009 Schedule A
(Form 990 or 990-EZ) using the cash
method, it should report in the 2006
through 2009 columns on the 2010
Schedule A (Form 990 or 990-EZ) the
same amounts that it reported in the 2006
through 2009 columns on the 2009
Schedule A (Form 990 or 990-EZ).
Example 2. An organization checks
“Accrual” on Form 990, Part XII, line 1.
The organization reports grants on Form
990, Part VIII, line 1, in accordance with
SFAS 116 (ACS 958) (see instructions
for Form 990, Part VIII, line 1). The
organization receives a grant to be paid in
future years. The organization should
report the grants’s present value on the
2010 Schedule A (Form 990 or Form
990-EZ). The organization should report
accruals of present value increments to
the unpaid grant on Schedule A (Form
990 or 990-EZ) in future years.
The IRS has eliminated the
advance ruling process for section
CAUTION
501(c)(3) organizations described
in sections 170(b)(1)(A)(vi) and 509(a)(2).
Organizations with an advance ruling that
expired on or after June 9, 2008 no longer
need to file Form 8734, Support Schedule
for Advance Ruling Period, after 5 years
to receive a definitive ruling.
Organizations described in sections
170(b)(1)(A)(vi) and 509(a)(2) now use a
5-year period that includes the current tax
year and the four preceding tax years in
computing their public support
percentages.

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Cat. No. 11294Q

Specific Instructions
Part I. Reason for Public
Charity Status
Lines 1–11
Check only one of the boxes on lines 1
through 11 to indicate the reason the
organization is a public charity for the
tax year. The reason can be the same as
stated in the organization’s tax-exempt
determination letter from the IRS
(“exemption letter”) or subsequent IRS
determination letter, or it can be different.
An organization that does not check any
of the boxes on lines 1 through 11 should
not file Form 990, Form 990-EZ, or
Schedule A (Form 990 or 990-EZ) for the
tax year, but should file Form 990-PF
instead.
If an organization believes there is
more than one reason why it is a public
charity, it should check only one box but
can explain the other reasons it qualifies
for public charity status in Part IV.
The IRS does not update its records
on an organization’s public charity status
based on a change the organization
makes on Schedule A (Form 990 and
Form 990-EZ). Thus, an organization that
checks a public charity status different
from the reason stated in its exemption
letter or subsequent determination letter,
although not required, may submit a
request to the IRS Exempt Organizations
Determinations Office for a determination
letter confirming that it qualifies for the
new public charity status if the
organization wants the IRS records to
reflect that new public charity status. See
Section 9 of Rev. Proc. 2010-4, 2010-1
I.R.B. 122 (or latest annual update) for
instructions. No user fee is required to be
paid.
A subordinate organization of a
group exemption that is filing its own
return, but has not received its own tax
exemption determination letter from the
IRS, should check the public charity
status box which most accurately
describes its public charity status.
An organization that does not know the
public charity status stated in its
exemption letter or subsequent
determination letter should call the
Exempt Organizations Customer Account
Services toll free at 1-877-829-5500 or
write to Internal Revenue Service, TE/GE

Customer Account Services, P.O. Box
2508, Cincinnati, OH 45201. See the
examples below.
Example 1. The organization
received an exemption letter that it is a
public charity under section
170(b)(1)(A)(vi). For the tax year, it meets
the requirements for public charity status
under section 170(b)(1)(A)(vi). The
organization should check the box on line
7 and complete Part II.
Example 2. The organization
received an exemption letter that it is a
public charity under section
170(b)(1)(A)(vi). For the tax year, it does
not meet the requirements for public
charity status under section
170(b)(1)(A)(vi). Instead, it meets the
requirements for public charity status
under section 509(a)(2). The organization
should check the box on line 9 and
complete Part III.
Example 3. The organization
received an exemption letter that it is a
public charity under section 509(a)(2). For
the tax year, it does not meet the
requirements for public charity status
under section 509(a)(2) or
170(b)(1)(A)(vi). Instead, it meets the
requirements for public charity status as a
supporting organization under section
509(a)(3). The organization should (a)
check the box on line 11; (b) check the
box on either line 11a, 11b, 11c, or 11d;
(c) complete lines 11e through 11g; and
(d) complete the table on line 11h.
Example 4. The organization
received an exemption letter that it is a
supporting organization under section
509(a)(3). Based on Announcement
2009-62, 2009-33 I.R.B. 247, the
organization submitted a request to the
IRS to change its classification to public
charity status under section 509(a)(2).
The organization received a
determination letter that it has been
reclassified as a public charity under
section 509(a)(2). The organization
should check the box on line 9 and
complete Part III.
Example 5. The organization
received an exemption letter that it is a
public charity under section
170(b)(1)(A)(vi). For the tax year, it does
not meet the requirements for public
charity status under section
170(b)(1)(A)(vi) or 509(a)(2), or as a
supporting organization under section
509(a)(3). Nor does it meet the
requirements for public charity status
under any other provision of the Internal
Revenue Code. The organization is a
private foundation and should not file
Form 990, Form 990-EZ, or Schedule A
(Form 990 or Form 990-EZ) for the tax
year but should file Form 990-PF instead.
Line 1. Check the box for a church,
convention of churches, or association of
churches. Pub. 1828, Tax Guide for
Churches and Religious Organizations,
provides certain characteristics generally
attributed to churches. These attributes of
a church have been developed by the IRS

and by court decisions. They include:
distinct legal existence; recognized creed
and form of worship; definite and distinct
ecclesiastical government; formal code of
doctrine and discipline; distinct religious
history; membership not associated with
any other church or denomination;
organization of ordained ministers;
ordained ministers selected after
completing prescribed courses of study;
literature of its own; established places of
worship; regular congregations; regular
religious services; Sunday schools for the
religious instruction of the young; schools
for the preparation of its ministers. The
IRS generally uses a combination of
these characteristics, together with other
facts and circumstances, to determine
whether an organization is considered a
church for federal tax purposes.
Line 2. Check the box for a school
whose primary function is the
presentation of formal instruction, which
regularly has a faculty, a curriculum, an
enrolled body of students, and a place
where educational activities are regularly
conducted. A private school must have a
racially nondiscriminatory policy toward its
students. For details about these
requirements, see Schedule E (Form 990
or 990-EZ), and its related instructions.
An organization that checks the
TIP box on line 2 must also complete
Schedule E (Form 990 or 990-EZ).
Line 3. Check the box for an
organization whose main purpose is to
provide hospital or medical care. A
rehabilitation institution or an outpatient
clinic can qualify as a hospital if its
principal purposes or functions are the
providing of hospital or medical care, but
the term does not include medical
schools, medical research organizations,
convalescent homes, homes for children
or the aged, or vocational training
institutions for handicapped individuals.
Check the box on line 3 also for a
cooperative hospital service organization
described in section 501(e).
The definition of hospital for
TIP Schedule A (Form 990 or 990-EZ),
Part I, is different from the
definition for Schedule H (Form 990),
Hospitals. Accordingly, see Who Must
File in the Instructions for Schedule H
(Form 990) regarding whether the
organization also is required to complete
Schedule H (Form 990), Hospitals.
Line 4. Check the box for an
organization whose principal purpose or
function is to engage in medical
research, and that is directly engaged in
the continuous active conduct of medical
research in conjunction with a hospital.
The hospital must be described in section
501(c)(3) or operated by the federal
government, a state or its political
subdivision, a U.S. possession or its
political subdivision, or the District of
Columbia.
If the organization primarily gives
funds to other organizations (or grants
and scholarships to individuals) for them

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to do the research, the organization is not
a medical research organization.
The organization is not required to be
an affiliate of the hospital, but there must
be a joint effort by the organization and
the hospital to maintain continuing close
cooperation in the active conduct of
medical research.
The definition of medical research
TIP for Schedule A (Form 990 or
990-EZ), Part I, is different from
the definition for Schedule H (Form 990).
Accordingly, research that constitutes
medical research for purposes of
determining whether an organization is a
medical research organization is not
necessarily medical research for
Schedule H (Form 990) reporting
purposes.
Assets test/expenditure test. An
organization qualifies as a medical
research organization if its principal
purpose is medical research, and if it
devotes more than half its assets, or
spends at least 3.5% of the fair market
value of its endowment, directly in
conducting medical research. Either test
can be met based on a computation
period consisting of the immediately
preceding tax year or the immediately
preceding 4 tax years.
If an organization does not satisfy
either the assets test or the expenditure
test, it can still qualify as a medical
research organization based on the
circumstances involved.
These tests are discussed in
Regulations sections 1.170A-9(d)(2)(v)
and (vi). Under these tests, value the
organization’s assets as of any day in its
tax year using the same day every year,
and value the endowment at fair market
value, using commonly accepted
valuation methods. See Regulations
section 20.2031.
Line 5. Check the box and complete
Part II if the organization receives and
manages property for and expends funds
to benefit a college or university that is
owned or operated by one or more states
or political subdivisions. The school must
be an organization described in the
instructions for line 2.
Expending funds to benefit a college or
university includes acquiring and
maintaining the campus, its buildings and
equipment, granting scholarships and
student loans, and making any other
payments in connection with the normal
functions of colleges and universities.
The organization must meet the same
public support test described below for
line 7. See Rev. Rul. 82-132, 1982-2 C.B.
107.
Line 6. Only a federal, state, or local
government or governmental unit that
has received an exemption letter
recognizing it as exempt from tax under
section 501(c)(3) should check this box.
See Rev. Rul. 60-384, 1960-2 C.B. 172.
Line 7. Check the box and complete
Part II if the organization meets one of the

section 170(b)(1)(A)(vi) public support
tests. See instructions for Part II
regarding how an organization can qualify
as a publicly supported organization
under section 170(b)(1)(A)(vi).
Line 8. Check the box and complete
Part II if the organization is a community
trust and meets a section 170(b)(1)(A)(vi)
public support test. A community trust is a
charity that attracts large contributions
for the benefit of a particular community
or area, often initially from a small number
of donors, and is generally governed by
representatives of its particular
community or area. See Temporary
Regulations sections 1.170A-9T(f)(10),
(11), and (12).
A community trust claiming it
qualifies as a public charity should
CAUTION
check the box on line 8 whether it
is structured as a corporation or as a
trust.
Line 9. Check the box and complete
Part III if the organization meets both of
the section 509(a)(2) support tests. See
the instructions for Part III regarding how
an organization can qualify as a publicly
supported organization under section
509(a)(2).
Line 10. Check the box only if the
organization has received a ruling from
the IRS that it is organized and operated
primarily to test for public safety.
Line 11. Check the box if the
organization is a supporting organization.
For more information about supporting
organizations, see Regulations section
1.509(a)-4, and sections 509(a)(3) and
509(f).
If the organization is a supporting
organization, it also must check either box
11a, 11b, 11c, or 11d to show the type of
supporting organization it is. The
organization also must complete lines 11e
through 11g, and the table on line 11h.
Lines 11a – 11d. Use the information
below to determine the supporting
organization’s type. If the organization
checks the box on line 11f, the letter the
organization received from the IRS
identifies its type. If the box checked on
any of lines 11a through 11d is different
from the type stated in the letter, provide
an explanation in Part IV. If the
organization does not check the box on
line 11f, it should check the box on lines
11a to 11d that best describes the type of
supporting organization it is.
• Type I. A Type I supporting
organization is operated, supervised, or
controlled by one or more publicly
supported organizations. If the
organization can answer ‘‘Yes’’ to the
following question, check the box for
Type I.
Does the governing body, officers or
membership of the supported public
charity(ies) select a majority of the
suporting organization’s officers,
directors, or trustees?
• Type II. A Type II supporting
organization is supervised or controlled
in connection with one or more publicly

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supported organizations. If the
organization can answer ‘‘Yes’’ to the
following question, check the box for
Type II.
Do the same persons, such as
directors, trustees, and officers, supervise
or control the supported organization(s)
and the supporting organization?
• Type III — Functionally Integrated.
Check this box if:
1. The organization is not described in
Type I or Type II above;
2. The organization’s activities
perform the functions of, or carry out the
purposes of, the publicly supported
organizations; and
3. But for the organization’s
involvement, such activities would
normally be engaged in by the publicly
supported organizations themselves.
See Regulations section
1.509(a)-4(i)(3)(ii); Rev. Proc. 2009-32,
2009-28 I.R.B. 142; and any further
related guidance for more information.
• Type III — Other. Check this box if the
organization is not described as a Type I,
Type II, or Type III — Functionally
Integrated organization.
Line 11e. A section 509(a)(3)
supporting organization cannot be
controlled by disqualified persons, other
than foundation managers. Section
509(a)(1) or (2) organizations and
foundation managers who are disqualified
persons only as a result of being
foundation managers are not treated as
disqualified persons.
Line 11f. The organization’s
exemption letter or subsequent
determination letter may state the type of
supporting organization it is. If it does,
check the box on this line. If the letter
does not state the type, leave this line
blank.
A grantor to a section 509(a)(3)
supporting organization, acting in good
faith, can rely on this letter in determining
whether the organization is a Type I, Type
II, or Type III organization. The grantor
also can rely on certain representations
made by the organization, or can rely on
a written reasoned opinion of counsel of
either the grantor or the organization that
the organization is a functionally
integrated Type III supporting
organization. See Rev. Proc. 2009-32,
2009-28 I.R.B. 142.
Line 11g. This information is
necessary to determine whether the
organization is controlled by certain
donors. Section 509(f)(2), which became
effective August 17, 2006, prohibits
certain supporting organizations from
accepting gifts or contributions from
certain persons associated with the
supported organization of such supporting
organization. For example, if a Type I or
Type III supporting organization accepts a
gift or contribution from a person who
controls the governing body of a
supporting organization or from certain
related persons, then the supporting

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organization loses its status as a
supporting organization.
Line 11h. An organization checking a
box on line 11 must complete the table on
line 11h.
• Columns (i) and (ii). Enter the name
and employer identification number (EIN)
for each supported organization.
• Column (iii). For each supported
organization named in column (i), show
which line number (from lines 1 through
9) best describes the supported
organization. For example, if the
organization supported a hospital, enter
‘‘3’’ in column (iii). If the organization
supported a federal, state, local
government, or governmental unit, or
foreign government, enter ‘‘6’’ in column
(iii).
• Column (iv). Check ‘‘Yes’’ if the
supported organization named in column
(i) is specifically named as a supported
organization in the organization’s
declaration of trust, articles of
incorporation, or other governing
document. An organization that supports
non-designated publicly supported
organizations and meets the
requirements of Regulations section
1.509(a)-4(d)(2)(i) (relating to designating
the publicly supported organizations by
class or purpose rather than by name)
should not complete column (iv) but
should provide a statement in Part IV
explaining how it meets these
requirements.
• Column (v). Only Type III
organizations are required to answer this
question. Check ‘‘Yes’’ if the organization
notified the supported organization
named in column (i) of its support.
• Column (vi). Only Type III
organizations are required to answer this
question. Check ‘‘Yes’’ if the supported
organization named in column (i) is
organized in the United States.
• Column (vii). Enter the total amount of
monetary support paid to, or for the
benefit of, the supported organization
named in column (i) during the tax year. If
no monetary support was provided during
the tax year, enter “-0-.” Do not report
non-monetary support in column (vii).
However, the organization can describe
such support in Part IV. If the organization
provided to or purchased for the benefit of
the supported organization services,
facilities, or goods, explain in Part IV.

Part II. Support Schedule
for Organizations
Described in Sections
170(b)(1)(A)(iv) and
170(b)(1)(A)(vi)
If the organization checked a box
on line 5, 7, or 8 of Part I, it should
CAUTION
complete Part II. If the
organization checks the box on line 13 of
Part II, it should stop there and not
complete the rest of Part II.

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If the organization checked a box
TIP on line 5, 7, or 8 of Part I and also
checks the box on line 18 of Part
II, the organization should complete Part
III to determine if it qualifies as a publicly
supported organization under section
509(a)(2). If it does qualify, the
organization should instead check the box
on line 9 of Part I.
Public Support Test. For an
organization to qualify as a publicly
supported organization under section
170(b)(1)(A)(vi), either:
• 331/3% or more of its total support must
come from governmental agencies,
contributions from the general public, and
contributions or grants from other public
charities, or
• 10% or more of its total support must
come from governmental agencies,
contributions from the general public, and
contributions or grants from other public
charities and the facts and circumstances
indicate it is a publicly supported
organization.
Note. An organization will not meet
either of these public support tests if
almost all of its support comes from gross
receipts from related activities and an
insignificant amount of its support comes
from governmental units and
contributions made directly or indirectly
by the general public.
Public support is measured using a
5-year computation period. If the
organization was not a section 501(c)(3)
organization for the entire 5-year period in
Part II, report amounts only for the years
the organization was a section 501(c)(3)
organization.
Line 1. Do not include any ‘‘unusual
grants.’’ See Unusual grants on this page.
Include membership fees only to the
extent to which the fees are payments to
provide support for the organization rather
than to purchase admissions,
merchandise, services, or the use of
facilities. To the extent that the
membership fees are payments to
purchase admissions, merchandise,
services, or the use of facilities in a
related activity, report the membership
fees on line 12. To the extent that the
membership fees are payments to
purchase admissions, merchandise,
services, or the use of facilities in an
unrelated business activity, report the
membership fees on line 9. See
Temporary Regulations section
1.170A-9T(f)(7)(iv).
Use any reasonable method to
determine the value of noncash
contributions reported on line 1.
If an organization records a loss on an
uncollectible pledge that it reported on a
prior year’s Schedule A, it should deduct
that loss from the contribution amount for
the year in which it originally counted that
contribution as revenue. For example, if
the organization reported a pledged
contribution of $50,000 during tax year
2008 but learned during tax year 2010
that it would not receive $20,000 of that

pledged contribution, it should deduct
$20,000 from the amount reported in Part
II, line 1, column (c) for tax year 2008.
Support from a governmental unit.
Include on line 1 support received from a
governmental unit. This includes any
amounts received from a governmental
unit, including donations or contributions
and amounts received in connection with
a contract entered into with a
governmental unit for the performance of
services or in connection with a
government research grant, unless the
amounts are received from exercising or
performing the organization’s tax-exempt
purpose or function, which should be
reported on line 12. An amount received
from a governmental unit is not treated as
received from exercising or performing
the organization’s tax-exempt purpose or
function if the payment is to enable the
organization to provide a service to, or
maintain a facility for, the direct benefit of
the public (for example, to maintain library
facilities that are open to the public). See
Temporary Regulations section
1.170A-9T(f)(8) and Rev. Rul. 81-276,
1981-2 C.B. 128.
Unusual grants. An organization that
received any unusual grants during the
5-year period should keep for its records
a list showing, for each year, the name of
the contributor, the date and amount of
the grant, and a brief description of the
grant. If the organization used the cash
method for the applicable year, show only
the amounts the organization actually
received during that year. If the
organization used the accrual method for
the applicable year, show only the
amounts the organization accrued for that
year. An example of this list is given
below.
Do not file this list with the
organization’s Form 990 or
CAUTION
990-EZ because it may be made
available for public inspection.

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Line 1. Example
Year © 2010

Description

Name © Mr.
Distinguished Donor

Undeveloped land

Date of Grant ©
January 15, 2010
Amount of Grant ©
$60,000

Include in Part IV a list showing the
amount of each unusual grant actually
received each year (if the cash
accounting method is used), or accrued
each year (if the accrual accounting
method is used).
Do not include the names of the
grantors because Part IV will be
CAUTION
made available for public
inspection.
Unusual grants generally are
substantial contributions and bequests
from disinterested persons and are:

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1. Attracted because of the
organization’s publicly supported nature,
2. Unusual and unexpected because
of the amount, and
3. Large enough to endanger the
organization’s status as normally meeting
either the 331/3% public support test or the
10% facts and circumstances test.
For a list of other factors to be
considered in determining whether a
grant is an unusual grant, see Temporary
Regulations section 1.509(a)-3T(c)(4).
An unusual grant is excluded even if
the organization receives or accrues the
funds over a period of years.
Do not report gross investment income
items as unusual grants. Instead, include
all investment income on line 8.
See Rev. Rul. 76-440, 1976-2 C.B. 58;
Temporary Regulations section
1.170A-9T(f)(6)(ii); and Temporary
Regulations sections 1.509(a)-3T(c)(3)
and (4) for details about unusual grants.
Reporting contributions not reported
as revenue. If the organization reports
any contributions on line 1 of this part
that it does not report as revenue in Part
VIII or assets in Part X of Form 990, or as
revenue or assets in Form 990-EZ,
explain in Part IV the basis for
characterizing such transfers as
contributions but not as revenue or
assets. For example, if an organization is
a community foundation that receives and
holds a cash transfer for another
tax-exempt organization and reports
contributions of such property on line 1
without reporting it as revenue in Part VIII
or assets in Part X, explain the basis for
characterizing the property as
contributions but not as revenue or
assets.
Line 2. Enter tax revenue levied for the
organization’s benefit by a governmental
unit and either paid to the organization or
expended on its behalf. Report this
amount whether or not the organization
includes this amount as revenue on its
financial statements or elsewhere on
Form 990 or 990-EZ.
Line 3. Enter the value of services or
facilities furnished by a governmental
unit to the organization without charge.
Do not include the value of services or
facilities generally furnished to the public
without charge. For example, include the
fair rental value of office space furnished
by a governmental unit to the organization
without charge but only if the
governmental unit does not generally
furnish similar office space to the public
without charge. Report these amounts
whether or not the organization includes
these amounts as revenue on its financial
statements or elsewhere on Form 990 or
990-EZ.

Line 5. Enter in column (f) the portion of
total contributions by each individual,
trust, or corporation included on line 1 for
the years reported that exceeds 2% of the
amount reported on line 11, column (f).
However, the 2% limitation does not apply
to contributions from organizations
qualifying as publicly supported
organizations under section
170(b)(1)(A)(vi), governmental units
described in section 170(b)(1)(A)(v), and
other organizations, such as the following,
but only if they also qualify as publicly
supported organizations under section
170(b)(1)(A)(vi):
• Churches described in section
170(b)(1)(A)(i);
• Educational institutions described in
section 170(b)(1)(A)(ii);
• Hospitals described in section
170(b)(1)(A)(iii); and
• Organizations operated for the benefit
of a college or university owned or
operated by a governmental unit
described in section 170(b)(1)(A)(iv).

purpose. Instead, report these amounts
on line 12.
Line 9. Enter the organization’s net
income from carrying on unrelated
business activities, whether or not the
activities are regularly carried on as a
trade or business. See sections 512 and
513 and the applicable regulations.
Include membership fees to the extent
they are payments to purchase
admissions, merchandise, services, or the
use of facilities in an activity that is an
unrelated business.
Net income and net losses from all of
the organization’s unrelated business
activities should be aggregated. If a net
loss results, enter “-0-” on this line.
Line 10. Include all support as defined in
section 509(d) that is not included
elsewhere in Part II. Explain in Part IV the
nature and source of each amount
reported. Do not include gain or loss from
the sale of capital assets.
Line 12. Enter the total amount of gross
receipts the organization received from
related activities for all years reported in
Part II. Although an organization may
otherwise meet the section
170(b)(1)(A)(vi), 331/3% public support test
or the 10% facts and circumstances
public support test, it will not be treated as
meeting one of these tests if almost all of
its support consists of gross receipts from
related activities and an insignificant
amount of support comes from
governmental units and public
contributions. See Temporary
Regulations section 1.170A-9T(f)(7)(iii).
Include on line 12 gross receipts from
admissions, sales of merchandise,
performance of services, or furnishing of
facilities in any activity which is not an
unrelated trade or business (within the
meaning of section 513). See section
509(d)(2). Include membership fees to the

The organization should keep for its
records a list showing the name of and
amount contributed by each donor (other
than a governmental unit or publicly
supported organization) whose total gifts
during the years reported exceed 2% of
the amount reported on line 11, column
(f). An example of this list is given below.
Do not file this list with the
organization’s Form 990 or
CAUTION
990-EZ because it may be made
available for public inspection.

!

Line 8. Include the gross income from
interest, dividends, payments with respect
to securities loans (section 512(a)(5)),
rents, royalties, and income from similar
sources. Do not include on this line
payments that result from activities of the
organization that further its exempt

extent they are payments to purchase
admissions, merchandise, services, or the
use of facilities in a related activity. For
example, include on this line gross
receipts from:
• A trade or business in which
substantially all work is performed by
volunteers (such as book fairs and sales
of gift wrap paper). See section 513(a)(1).
• A trade or business carried on by the
organization primarily for the convenience
of its members, students, patients,
officers, or employees. See section
513(a)(2).
• A trade or business which is the selling
of merchandise, substantially all of which
the organization received as gifts or
contributions. See section 513(a)(3).
• “Qualified public entertainment
activities” or “qualified convention and
trade show activities” of certain
organizations. See section 513(d).
• Furnishing certain hospital services.
See section 513(e).
• A trade or business consisting of
conducting bingo games, but only if the
conduct of such games is lawful. See
section 513(f).
• Qualified pole rentals by a mutual or
cooperative telephone or electric
company. See section 513(g).
• The distribution of certain low cost
articles and exchange and rental of
members lists. See section 513(h).
• Soliciting and receiving qualified
sponsorship payments. See section
513(i).
Line 13. An organization that checks this
box should stop here and should not
complete the rest of Part II. It should not
make a public support computation on
line 14 or 15 or check any of the boxes on
lines 16 through 18.
Example. An organization receives
an exemption letter from the IRS that it is
exempt from tax under section 501(c)(3)

Line 5. Example
Assumption: 2% of the amount on Schedule A (Form 990 or 990-EZ), Part II, line 11, column (f) is $12,000
Contributors whose total gifts from 2006 through 2010 were in excess of the 2% limitation

Name

(a)

(b)

(c)

(d)

(e)

(f)

(g)

2006

2007

2008

2009

2010

Total

Excess
contributions
(col. (f) minus
the 2%
limitation)

XYZ Foundation
Banana Office
Supply

$59,000
$12,000

Plum
Corporation
John Smith
Sue Adams
Raisin Trade
Assoc.

5,000

$5,000

$3,000

$18,000

$80,000

$68,000

3,000

1,000

16,000

4,000

15,000

15,000

30,000

18,000

5,000

1,000

16,000

4,000

30,000

18,000

27,000

15,000

10,000

10,000
20,000

7,000

10,000

Total. Add the items in column (g). Enter the total here and on Part II, column (f), line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . .

-5-

$127,000

and qualifies as a public charity under
section 170(b)(1)(A)(vi) effective March
25, 2010, its date of incorporation. The
organization uses a calendar year
accounting period. When the organization
prepares Part II for 2010 through 2014, it
should check the box on line 13 and
should not complete the rest of Part II.
When the organization prepares Part II for
2015 and subsequent years, it should not
check the box on line 13 and should
complete the rest of Part II.
An organization in its first 5 years
TIP as a section 501(c)(3)
organization should make the
public support computations on a copy of
Schedule A that it keeps for itself. An
organization should carefully monitor its
public support on an ongoing basis to
ensure that it will meet a public support
test in the sixth year and succeeding
years.
Line 14. Round to the nearest hundredth
decimal point in reporting the percentage
of public support. For example, if the
organization calculates its public support
percentage as 58.3456%, this percentage
would be rounded to 58.35% when
reported on line 14.
Line 15. For 2010, enter the public
support percentage from the 2009
Schedule A (Form 990 or 990-EZ), Part II,
line 14. Round to the nearest hundredth
decimal point in reporting the percentage
of public support.
Line 16a. If the organization did not
check the box on line 13, and line 14 is
331/3% or more, check the box on this
line and do not complete the rest of
Part II. The organization qualifies as a
publicly supported organization for 2010
and 2011.
Line 16b. If the organization did not
check a box on line 13 or 16a, and line 15
is 331/3% or more, check the box on this
line and do not complete the rest of
Part II. The organization qualifies as a
publicly supported organization for 2010.
Line 17a. If the organization did not
check a box on line 13, 16a or 16b, and
line 14 is 10% or more, and if the
organization meets the ‘‘facts and
circumstances’’ test, check the box on
this line and do not complete the rest
of Part II. The organization qualifies as a
publicly supported organization for 2010
and 2011.
If this box is checked, explain in Part
IV how the organization meets the ‘‘facts
and circumstances’’ test in Temporary
Regulations section 1.170A-9T(f)(3).
Include the following information.
• Explain whether the organization
maintains a continuous and bona fide
program for solicitation of funds from the
general public, community, membership
group involved, governmental units or
other public charities.
• List all other facts and circumstances,
including the sources of support, whether
the organization has a governing body
which represents the broad interests of
the public, and whether the organization

generally provides facilities or services
directly for the benefit of the general
public on a continuing basis.
• If the organization is a membership
organization, explain whether the
solicitation for dues-paying members is
designed to enroll a substantial number of
persons from the community, whether
dues for individual members have been
fixed at rates designed to make
membership available to a broad
cross-section of the interested public, and
whether the activities of the organization
will likely appeal to persons having some
broad common interest or purpose.
Line 17b. If the organization did not
check a box on line 13, 16a, 16b, or 17a,
and line 15 is 10% or more, and if the
organization meets the ‘‘facts and
circumstances’’ test, check the box on
this line and do not complete the rest
of Part II. The organization qualifies as a
publicly supported organization for 2010.
If this box is checked, explain in Part IV
how the organization meets the ‘‘facts
and circumstances’’ test in Temporary
Regulations section 1.170A-9T(f)(3).
Include the same information identified in
the instructions for line 17a on this page.
Note. The alternative test for
organizations experiencing substantial
and material changes in its sources of
support, other than from unusual grants,
has been eliminated.
Line 18. If the organization did not check
a box on line 13, 16a, 16b, 17a, or 17b, it
does not qualify as a publicly supported
organization under section
170(b)(1)(A)(iv) or 170(b)(1)(A)(vi) for the
2010 tax year and should check the box
on this line. If the organization does not
qualify as a public charity under any of
the boxes in Part I, lines 1 through 11, it is
a private foundation as of the beginning of
the 2010 tax year and should not file
Form 990, Form 990-EZ, or Schedule A
(Form 990 or 990-EZ) for the 2010 tax
year. Instead, the organization should file
Form 990-PF, and check Initial return of a
former public charity on the top of page 1
of Form 990-PF.
If Form 990 or 990-EZ is for the
TIP organization’s sixth tax year as a
section 501(c)(3) organization,
and it checked the box on line 18, it
should compute the public support
percentage on its Form 990 or 990-EZ for
its first 5 tax years. If its public support
percentage for its first 5 tax years is
331/3% or more, or if it meets the 10%
facts and circumstances test for its first
five tax years, it will qualify as a public
charity for its sixth tax year. If the
organization qualifies in this manner,
explain in Part IV.
If the organization does not qualify
TIP as a publicly supported
organization under section
170(b)(1)(A)(vi), it can complete Part III to
determine if it qualifies as a publicly
supported organization under section
509(a)(2).

-6-

Part III. Support Schedule
for Organizations
Described in Section
509(a)(2)
If an organization checked the box
on line 9 of Part I, it should
CAUTION
complete Part III. If the
organization checks the box on line 14 of
Part III, it should stop there and not
complete the rest of Part III.

!

If the organization checked the
TIP box on line 9 of Part I and also
checks the box on line 20 of Part
III, the organization should complete Part
II to determine if it qualifies as a publicly
supported organization under section
170(b)(1)(A)(vi). If it does qualify, the
organization should instead check the box
on line 5, 7, or 8 of Part I, whichever
applies.
Public Support Test. For an
organization to qualify as a publicly
supported organization under section
509(a)(2):
• More than 331/3% of its support must
come from contributions, membership
fees, and gross receipts from activities
related to its exempt functions or from
amounts which are not unrelated trades
or businesses under section 513, and
• No more than 331/3% of its support
must come from gross investment income
and net unrelated business income
(less section 511 tax) from businesses
acquired by the organization after June
30, 1975.
Public support is measured using a
5-year computation period. If the
organization was not a section 501(c)(3)
organization for the entire 5-year period in
Part III, report amounts only for the years
the organization was a section 501(c)(3)
organization.
Line 1. Do not include any ‘‘unusual
grants.’’ See Unusual grants on page 7.
Include membership fees only to the
extent to which the fees are payments to
provide support for the organization rather
than to purchase admissions,
merchandise, services, or the use of
facilities. To the extent that the
membership fees are payments to
purchase admissions, merchandise,
services, or the use of facilities in a
related activity, include the membership
fees on line 2. See Regulations section
1.509(a)-3(h). To the extent that the
membership fees are payments to
purchase admissions, merchandise,
services, or the use of facilities in an
activity that is not an unrelated business
under section 513, report the membership
fees on line 3. To the extent that the
membership fees are payments to
purchase admissions, merchandise,
services, or the use of facilities in an
activity that is an unrelated business,
report the net amount either on line 10b
or line 11, as appropriate.

Use any reasonable method to
determine the value of noncash
contributions reported on line 1.
If an organization records a loss on an
uncollectible pledge that it reported on a
prior year’s Schedule A, it should deduct
that loss from the contribution amount for
the year in which it originally counted that
contribution as revenue. For example, if
the organization reported a pledged
contribution of $50,000 during tax year
2008 but learned during tax year 2010
that it would not receive $20,000 of that
pledged contribution, it should deduct
$20,000 from the amount reported in Part
III, line 1, column (c) for tax year 2008.
Support from a governmental unit.
Include on line 1 support received from a
governmental unit. This includes any
amounts received from a governmental
unit, including donations or contributions
and amounts received in connection with
a contract entered into with a
governmental unit for the performance of
services or in connection with a
government research grant, unless the
amounts are received from exercising or
performing the organization’s tax-exempt
purpose or function, which should be
reported on line 2. An amount received
from a governmental unit is not treated as
received from exercising or performing
the organization’s tax-exempt purpose or
function if the payment is to provide
services, facilities, or products primarily
for the economic benefit of the payee. For
example, if a state agency pays an
organization to operate an institute to
train employees from various industries in
the principles of management and
administration, the funds received should
be included on line 2 as support related to
the exercise or performance of the
organization’s tax-exempt purpose. See
Regulations section 1.509(a)-3(g).
Unusual grants. An organization that
received any unusual grants during the
5-year period, should keep for its records
a list showing, for each year, the name of
the contributor, the date and amount of
the grant, and a brief description of the
grant. If the organization used the cash
method for the applicable year, show only
amounts the organization actually
received during that year. If the
organization used the accrual method for
the applicable year, show only amounts
the organization accrued for that year. An
example of this list is given below.
Do not file this list with the
organization’s Form 990 or
CAUTION
990-EZ because it may be made
available for public inspection.

!

Line 1. Example
Year © 2010

Description

Name © Mr.
Distinguished Donor

Undeveloped land

Date of Grant ©
January 15, 2010
Amount of Grant ©
$60,000

Include in Part IV a schedule showing the
amount of each unusual grant actually
received each year (if the cash
accounting method is used), or accrued
each year (if the accrual accounting
method is used).
Do not include the names of the
grantors because Part IV will be
CAUTION
made available for public
inspection.
Unusual grants generally are
substantial contributions and bequests
from disinterested persons and are:
1. Attracted because of the
organization’s publicly supported nature,
2. Unusual and unexpected because
of the amount, and
3. Large enough to endanger the
organization’s status as normally meeting
the 331/3% public support test.

!

For a list of other factors to be
considered in determining whether a
grant is an unusual grant, see Temporary
Regulations section 1.509(a)-3T(c)(4).
An unusual grant is excluded even if
the organization receives or accrues the
funds over a period of years.
Do not report gross investment income
items as unusual grants. Instead, include
all investment income on line 10a.
See Rev. Rul. 76-440, 1976-2 C.B. 58;
Regulations section 1.170A-9(f)(6)(ii); and
Temporary Regulations sections
1.509(a)-3T(c)(3) and 1.509(a)-3T(c)(4)
for details about unusual grants.
Reporting contributions not reported
as revenue. If the organization reports
any contributions on line 1 of this Part
that it does not report as revenue in Part
VIII or assets in Part X of Form 990, or as
revenue or assets in Form 990-EZ,
explain in Part IV the basis for
characterizing such transfers as
contributions but not as revenue or
assets. For example, if an organization is
a community foundation that receives and
holds a cash transfer for another
tax-exempt organization and reports
contributions of such property on line 1
without reporting it as revenue in Part VIII
or assets in Part X, explain the basis for
characterizing the property as
contributions but not as revenue or
assets.
Line 2. Include gross receipts from
admissions, merchandise sold, services
performed, or facilities furnished in any
activity that is related to the organization’s
tax-exempt purpose (such as charitable,
educational, etc.).

-7-

To the extent that the membership
fees are payments to purchase
admissions, merchandise, services, or the
use of facilities in a related activity,
include the membership fees on this line
2. See Regulations section 1.509(a)-3(h).
Line 3. Include gross receipts from:
• A trade or business in which
substantially all work is performed by
volunteers (such as book fairs and sales
of gift wrap paper). See section 513(a)(1).
• A trade or business carried on by the
organization primarily for the convenience
of its members, students, patients,
officers, or employees. See section
513(a)(2).
• A trade or business which is the selling
of merchandise, substantially all of which
the organization received as gifts or
contributions. See section 513(a)(3).
• “Qualified public entertainment
activities” or “qualified convention and
trade show activities” of certain
organizations. See section 513(d).
• Furnishing certain hospital services.
See section 513(e).
• A trade or business consisting of
conducting bingo games, but only if the
conduct of such games is lawful. See
section 513(f).
• Qualified pole rentals by a mutual or
cooperative telephone or electric
company. See section 513(g).
• The distribution of certain low cost
articles and exchange and rental of
members lists. See section 513(h).
• Soliciting and receiving qualified
sponsorship payments. See section
513(i).
Line 4. Enter tax revenue levied for the
organization’s benefit by a governmental
unit and either paid to the organization or
expended on its behalf. Report this
amount whether or not the organization
includes this amount as revenue on its
financial statements or elsewhere on
Form 990 or 990-EZ.
Line 5. Enter the value of services or
facilities furnished by a governmental unit
to the organization without charge. Do not
include the value of services or facilities
generally furnished to the public without
charge. For example, include the fair
rental value of office space furnished by a
governmental unit to the organization
without charge, but only if the
governmental unit does not generally
furnish similar office space to the public
without charge. Report these amounts
whether or not the organization includes
these amounts as revenue on its financial
statements or elsewhere on Form 990 or
990-EZ.

Line 7a. Example
Disqualified Person
David Smith

(a) 2006

(b) 2007

$7,000

$6,000

(c) 2008

(d) 2009

$5,000

$7,000

$5,000

$7,000

Anne Parker
Total

$7,000

Line 7a. Enter the amounts that are
included on lines 1, 2, and 3 that the
organization received from disqualified
persons. See second Glossary definition
of disqualified person in the Instructions
for Form 990.
For amounts included on lines 1, 2,
and 3 that were received from a
disqualified person, the organization
should keep for its records a list showing
the name of, and total amounts received
in each year from, each disqualified
person. Enter the total of such amounts
for each year on line 7a. See an example
of this list above.
Do not file this list with the
organization’s Form 990 or
CAUTION
990-EZ because it may be made
available for public inspection.
Line 7b. For any gross receipts included
on lines 2 and 3 from related activities
received from a person or from a bureau
or similar agency of a governmental
unit, other than from a disqualified
person, that exceed the greater of $5,000
or 1% of the amount on line 13 for the
applicable year, enter the excess on line
7b. The organization should keep for its
records a list showing, for each year, the
name of the person or government
agency, the amount received during the
applicable year, the larger of $5,000 or
1% of the amount on line 13 for the
applicable year, and the excess, if any.
See an example of this list below.

!

Do not file this list with the
organization’s Form 990 or
CAUTION
990-EZ because it may be made
available for public inspection.

!

Line 10a. Include the gross income from
interest, dividends, payments received on
securities loans (section 512(a)(5)), rents,
royalties, and income from similar
sources. Do not include on this line
payments that result from activities of the
organization that further its exempt
purpose. Instead, report these amounts
on line 2.
Line 10b. Enter the excess of the
organization’s unrelated business
taxable income (as defined in section

$6,000

512) from trades or businesses that it
acquired or commenced after June 30,
1975, over the amount of tax imposed on
this income under section 511. Include
membership fees to the extent they are
payments to purchase admissions,
merchandise, services, or the use of
facilities in an unrelated business activity
that is a trade or business that was
acquired or commenced after June 30,
1975.
Net income and net losses from all of
these trades or businesses should be
aggregated. If a net loss results, enter -0on this line. See Regulations section
1.509(a)-3(a)(3).
Line 11. Enter the organization’s net
income from carrying on unrelated
business activities not included on line
10b, whether or not the activities are
regularly carried on as a trade or
business. See sections 512 and 513 and
the applicable regulations. Include
membership fees to the extent they are
payments to purchase admissions,
merchandise, services, or the use of
facilities in an activity that is an unrelated
business not included on line 10b.
Net income and net losses from all of
the organization’s unrelated business
activities should be aggregated. If a net
loss results, enter “-0-” on this line.
Line 12. Include all support as defined in
section 509(d) that is not included
elsewhere in Part III. Explain in Part IV
the nature and source of each amount
reported. Do not include gain or loss from
sale of capital assets.
Line 14. An organization that checks this
box should stop here and should not
complete the rest of Part III. It should not
make a public support computation on
line 15 or 16 or an investment income
computation on line 17 or 18, or check
any of the boxes on line 19 or 20.
Example. An organization receives
an exemption letter from the IRS that it is
exempt from tax under section 501(c)(3)
and qualifies as a public charity under
section 509(a)(2) effective March 25,
2010, its date of incorporation. The
organization uses a calendar year

(e) 2010

(f) Total

$2,000

$15,000

4,000

16,000

$6,000

$31,000

accounting period. When the organization
prepares Part III for 2010 through 2014, it
should check the box on line 14 and
should not complete the rest of Part III.
When the organization prepares Part III
for 2015 and subsequent years, it should
not check the box on line 14 and should
complete the rest of Part III.
An organization in its first 5 years
TIP as a section 501(c)(3)
organization should make the
public support and investment income
computations on a copy of Schedule A
(Form 990 or 990-EZ) that it keeps for
itself. An organization should carefully
monitor its public support on an ongoing
basis to ensure that it will meet the public
support tests in the sixth year and
succeeding years.
Line 15. Round to the nearest hundredth
decimal point in reporting the percentage
of public support. For example, if the
organization calculates its public support
percentage as 58.3456%, this percentage
would be rounded to 58.35% when
reported on line 15.
Line 16. For 2010, enter the public
support percentage from the 2009
Schedule A (Form 990 or 990-EZ), Part
III, line 15. Round to the nearest
hundredth decimal point in reporting the
percentage of public support.
Line 17. Round to the nearest whole
percentage.
Line 18. For 2010, enter the investment
income percentage from the 2009
Schedule A (Form 990 or 990-EZ), Part
III, line 17. Round to the nearest whole
percentage.
Line 19a. If the organization did not
check the box on line 14, line 15 is more
than 331/3%, and line 17 is not more than
331/3%, check the box on this line and
do not complete the rest of this
schedule. The organization qualifies as a
publicly supported organization for 2010
and 2011.
Line 19b. If the organization did not
check the box on line 14 or 19a, line 16 is
more than 331/3%, and line 18 is not more
than 331/3%, check the box on this line

Line 7b. Example
Year 2010
(a) Name
Word Processing, Inc.

(b) Amount received in
2010

(c) 1% of amount on line
13 in 2010

(d) Enter the larger of
column (c) or $5,000

(e) 2010 excess (column
(b) minus column (d))

$25,000

$2,000

$5,000

$20,000

Enter on Schedule A, column (e), line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-8-

$20,000

and do not complete the rest of this
schedule. The organization qualifies as a
publicly supported organization for 2010.
Note. The alternative test for
organizations experiencing substantial
and material changes in its sources of
support, other than from unusual grants,
has been eliminated.
Line 20. If the organization did not check
the box on line 14, 19a, or 19b, it does
not qualify as a publicly supported
organization under section 509(a)(2) for
the 2010 tax year and should check the
box on this line. If the organization does
not qualify as a public charity under any
of the boxes on Schedule A (Form 990 or
990-EZ), Part I, lines 1 through 11, it is a
private foundation as of the beginning of
the tax year and should not file Form 990,
Form 990-EZ, or Schedule A (Form 990
or 990-EZ) for the 2010 tax year. Instead,
the organization should file Form 990-PF,
and check Initial return of a former public
charity on the top of page 1 of Form
990-PF.

If Form 990 or 990-EZ is for the
TIP organization’s sixth tax year as a
section 501(c)(3) organization,
and it checked the box on line 20, it
should compute the public support
percentage and the investment income
percentage on its Form 990 for its first 5
tax years. If its public support percentage
for its first 5 tax years is more than 331/3%
and the investment income percentage
for its first 5 tax years is not more than
331/3%, it will qualify as a public charity for
its sixth tax year. If the organization
qualifies in this manner, explain in Part IV.
If the organization does not qualify
TIP as a publicly supported
organization under section
509(a)(2), it can complete Part II to
determine if the organization qualifies as
a publicly supported organization under
section 170(b)(1)(A)(vi).

-9-

Part IV. Supplemental
Information
Use Part IV to provide the narrative
explanations required, if applicable, by
Part II, line 10, Part II, line 17a or 17b,
and Part III, line 12. Also use Part IV to
provide other narrative information
required by these instructions or to
supplement responses to questions on
Schedule A (Form 990 or 990-EZ).
Identify the specific part and line number
that the response supports, in the order in
which they appear on Schedule A (Form
990 or 990-EZ). Part IV can be duplicated
if more space is needed.
Do not include in Part IV the
names of any donors, grantors, or
CAUTION
contributors because Part IV will
be made available for public inspection.

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