Form Schedule E (F 990) Schedule E (F 990) Schools

SCHEDULE E
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service

OMB No. 1545-0047

Schools
©

Complete if the organization answered “Yes” to Form 990, Part IV, line 13,
or Form 990-EZ, Part VI, line 48.
©

Attach to Form 990 or Form 990-EZ.

Name of the organization

2009
Open to Public
Inspection

Employer identification number

YES NO

1
2

3

Does the organization have a racially nondiscriminatory policy toward students by statement in its charter,
bylaws, other governing instrument, or in a resolution of its governing body?

1

Does the organization include a statement of its racially nondiscriminatory policy toward students in all its
brochures, catalogues, and other written communications with the public dealing with student admissions,
programs, and scholarships?

2

Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media
during the period of solicitation for students, or during the registration period if it has no solicitation program,
in a way that makes the policy known to all parts of the general community it serves? If “Yes,” please
describe. If “No,” please explain. If you need more space, use Schedule O (Form 990)

3

4 Does the organization maintain the following?
a Records indicating the racial composition of the student body, faculty, and administrative staff?
b Records documenting that scholarships and other financial assistance are awarded on a racially
nondiscriminatory basis?
c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing
with student admissions, programs, and scholarships?
d Copies of all material used by the organization or on its behalf to solicit contributions?
If you answered “No” to any of the above, please explain. If you need more space, use Schedule O
(Form 990).

5 Does the organization discriminate by race in any way with respect to:
a Students’ rights or privileges?

4a
4b
4c
4d

5a

b Admissions policies?

5b

c Employment of faculty or administrative staff?

5c

d Scholarships or other financial assistance?

5d

e Educational policies?

5e

f

Use of facilities?

5f

g Athletic programs?

5g

h Other extracurricular activities?
If you answered “Yes” to any of the above, please explain. If you need more space, use Schedule O
(Form 990).

5h

6a Does the organization receive any financial aid or assistance from a governmental agency?
b Has the organization’s right to such aid ever been revoked or suspended?
If you answered “Yes” to either line 6a or line 6b, explain on Schedule O (Form 990).
7 Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 4.05
of Rev. Proc. 75-50, 1975-2 C.B. 587, covering racial nondiscrimination? If “No,” explain on Schedule O
(Form 990)

6a
6b

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Cat. No. 50085D

7

Schedule E (Form 990 or 990-EZ) 2009

Schedule E (Form 990 or 990-EZ) (2009)

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Schedule E (Form 990 or 990-EZ) is used by an organization
that files Form 990 or Form 990-EZ to report information on
private schools.

those newspapers that are reasonably likely to be read by all
racial segments of the communities that it serves. The notice
must appear in a section of the newspaper likely to be read
by prospective students and their families and it must
occupy at least three column inches. It must be captioned in
at least 12 point boldface type as a notice of
nondiscriminatory policy as to students, and its text must be
printed in at least 8 point type. The following notice will be
acceptable:

Who Must File

Notice of Nondiscriminatory Policy as to Students

General Instructions
Section references are to the Internal Revenue Code unless
otherwise noted.

Purpose of Schedule

An organization that answered “Yes” to Form 990, Part IV,
line 13 or Form 990-EZ, Part VI, line 48 must complete and
attach Schedule E to Form 990 or Form 990-EZ, as
applicable. This means the organization checked the box on
Schedule A (Form 990 or 990-EZ), Public Charity Status and
Public Support, Part I, line 2, because it is a school.
If an organization is not required to file Form 990 or 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.
For Form 990 filers, use Schedule O (Form 990) if
additional space is needed for explanations. For Form
990-EZ filers, attach a separate statement if additional space
is needed for explanations.

Specific Instructions
Relevant parts of Rev. Proc. 75-50, 1975-2 C.B. 587, are
given below. The revenue procedure gives guidelines and
recordkeeping requirements for determining whether private
schools that are recognized as exempt from tax have racially
nondiscriminatory policies toward their students.
4.01 Organizational requirements. A school must include a
statement in its charter, bylaws, or other governing
instrument, or in a resolution of its governing body, that it
has a racially nondiscriminatory policy as to students and
therefore does not discriminate against applicants and
students on the basis of race, color, and national or ethnic
origin.
4.02 Statement of policy. Every school must include a
statement of its racially nondiscriminatory policy as to
students in all its brochures and catalogues dealing with
student admissions, programs, and scholarships. A
statement substantially similar to the Notice described in
paragraph (a) of subsection 1 of section 4.03, infra, will be
acceptable for this purpose. Further, every school must
include a reference to its racially nondiscriminatory policy in
other written advertising that it uses as a means of informing
prospective students of its programs. The following
references will be acceptable:
The (name) school admits students of any race, color, and
national or ethnic origin.
4.03 Publicity. The school must make its racially
nondiscriminatory policy known to all segments of the
general community served by the school.
1. The school must use one of the following two methods
to satisfy this requirement:
a. The school may publish a notice of its racially
nondiscriminatory policy in a newspaper of general
circulation that serves all racial segments of the community.
This publication must be repeated at least once annually
during the period of the school’s solicitation for students or,
in the absence of a solicitation program, during the school’s
registration period. Where more than one community is
served by a school, the school may publish its notice in

The (name) school admits students of any race, color,
national and ethnic origin to all the rights, privileges,
programs, and activities generally accorded or made
available to students at the school. It does not discriminate
on the basis of race, color, national and ethnic origin in
administration of its educational policies, admissions
policies, scholarship and loan programs, and athletic and
other school-administered programs.
b. The school may use the broadcast media to publicize its
racially nondiscriminatory policy if this use makes such
nondiscriminatory policy known to all segments of the
general community the school serves. If this method is
chosen, the school must provide documentation that the
means by which this policy was communicated to all
segments of the general community was reasonably
expected to be effective. In this case, appropriate
documentation would include copies of the tapes or script
used and records showing that there was an adequate
number of announcements, that they were made during
hours when the announcements were likely to be
communicated to all segments of the general community,
that they were of sufficient duration to convey the message
clearly, and that they were broadcast on radio or television
stations likely to be listened to by substantial numbers of
members of all racial segments of the general community.
Announcements must be made during the period of the
school’s solicitation for students or, in the absence of a
solicitation program, during the school’s registration period.
Communication of a racially nondiscriminatory policy as to
students by a school to leaders of racial groups as the sole
means of publicity generally will not be considered effective
to make the policy known to all segments of the community.
2. The requirements of subsection 1 of this section will not
apply when one of the following paragraphs applies:
a. If for the preceding 3 years the enrollment of a parochial
or other church-related school consists of students at least
75% of whom are members of the sponsoring religious
denomination or unit, the school may make known its racially
nondiscriminatory policy in whatever newspapers or circulars
the religious denomination or unit utilizes in the communities
from which the students are drawn. These newspapers and
circulars may be those distributed by a particular religious
denomination or unit or by an association that represents a
number of religious organizations of the same denomination.
If, however, the school advertises in newspapers of general
circulation in the community or communities from which its
students are drawn and paragraphs (b) and (c) of this
subsection are not applicable to it, then it must comply with
paragraph (a) of subsection 1 of this section.
b. If a school customarily draws a substantial percentage
of its students nationwide or worldwide or from a large
geographic section or sections of the United States and
follows a racially nondiscriminatory policy as to students, the
publicity requirement may be satisfied by complying with

Schedule E (Form 990 or 990-EZ) (2009)

section 4.02, supra. Such a school may demonstrate that it
follows a racially nondiscriminatory policy within the meaning
of the preceding sentence either by showing that it currently
enrolls students of racial minority groups in meaningful
numbers or, when minority students are not enrolled in
meaningful numbers, that its promotional activities and
recruiting efforts in each geographic area were reasonably
designed to inform students of all racial segments in the
general communities within the area of the availability of the
school. The question whether a school satisfies the
preceding sentence will be determined on the basis of the
facts and circumstances of each case.
c. If a school customarily draws its students from local
communities and follows a racially nondiscriminatory policy
as to students, the publicity requirement may be satisfied by
complying with section 4.02, supra. Such a school may
demonstrate that it follows a racially nondiscriminatory policy
within the meaning of the preceding sentence by showing
that it currently enrolls students of racial minority groups in
meaningful numbers. The question whether a school satisfies
the preceding sentence will be determined on the basis of
the facts and circumstances of each case. One of the facts
and circumstances that the Service will consider is whether
the school’s promotional activities and recruiting efforts in
each area were reasonably designed to inform students of all
racial segments in the general communities within the area of
the availability of the school. The Service recognizes that the
failure by a school drawing its students from local
communities to enroll racial minority group students may not
necessarily indicate the absence of a racially
nondiscriminatory policy as to students when there are
relatively few or no such students in these communities.
Actual enrollment is, however, a meaningful indication of a
racially nondiscriminatory policy in a community in which a
public school or schools became subject to a desegregation
order of a federal court or otherwise expressly became
obligated to implement a desegregation plan under the terms
of any written contract or other commitment to which any
federal agency was a party.
The Service encourages schools to satisfy the publicity
requirement by the methods described in subsection 1 of this
section, regardless of whether a school considers itself within
subsection 2, because it believes these methods to be the
most effective to make known a school’s racially
nondiscriminatory policy. In this regard it is each school’s
responsibility to determine whether paragraph (a), (b), or (c)
of subsection 2 applies to it. On audit, a school must be
prepared to demonstrate that the failure to publish its racially
nondiscriminatory policy in accordance with subsection 1 of
this section was justified by the application to it of paragraph
(a), (b), or (c) of subsection 2. Further, a school must be
prepared to demonstrate that it has publicly disavowed or
repudiated any statements purported to have been made on
its behalf (after November 6, 1975) that are contrary to its
publicity of a racially nondiscriminatory policy as to students,
to the extent that the school or its principal official were
aware of such statements.
4.04 Facilities and programs. A school must be able to
show that all of its programs and facilities are operated in a
racially nondiscriminatory manner.
4.05 Scholarship and loan programs. As a general rule, all
scholarship or other comparable benefits procurable for use
at any given school must be offered on a racially
nondiscriminatory basis. Their availability on this basis must
be known throughout the general community being served by
the school and should be referred to in the publicity required
by this section in order for that school to be considered

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racially nondiscriminatory as to students. Scholarships and
loans that are made pursuant to financial assistance
programs favoring members of one or more racial minority
groups that are designed to promote a school’s racially
nondiscriminatory policy will not adversely affect the school’s
exempt status.
Financial assistance programs favoring members of one or
more racial groups that do not significantly derogate from the
school’s racially nondiscriminatory policy similarly will not
adversely affect the school’s exempt status.
4.06 Certification. An individual authorized to take official
action on behalf of a school that claims to be racially
nondiscriminatory as to students is required to certify
annually, under penalties of perjury, that to the best of his or
her knowledge and belief the school has satisfied the
applicable requirements of sections 4.01 through 4.05 of the
Rev. Proc. 75-50. This certification is line 7 of Schedule E.
4.07 Faculty and staff. The existence of a racially
discriminatory policy with respect to employment of faculty
and administrative staff is indicative of a racially
discriminatory policy as to students. Conversely, the absence
of racial discrimination in employment of faculty and
administrative staff is indicative of a racially
nondiscriminatory policy as to students.
7.01 Specific records. Except as provided in section 7.03,
each exempt private school must maintain for a minimum
period of three years, beginning with the year after the year
of compilation or acquisition, the following records for the
use of the Service on proper request:
1. Records indicating the racial composition of the student
body, faculty, and administrative staff for each academic
year.
2. Records sufficient to document that scholarship and
other financial assistance is awarded on a racially
nondiscriminatory basis.
3. Copies of all brochures, catalogues, and advertising
dealing with student admissions, programs, and
scholarships. Schools advertising nationally or in a large
geographic segment or segments of the United States need
only maintain a record sufficient to indicate when and in what
publications their advertisements were placed.
4. Copies of all materials used by or on behalf of the
school to solicit contributions.
7.02 Limitation.
1. For purposes of section 7.01, the racial composition of
the student body, faculty, and administrative staff may be an
estimate based on the best information readily available to
the school, without requiring student applicants, students,
faculty, or administrative staff to submit information to the
school that the school otherwise does not require. For each
academic year, however, a record of the method by which
racial composition is determined must be maintained.
2. The Service does not require that a school release
personally identifiable records or personal information
contained therein except in accordance with the
requirements of the “Family Educational Rights and Privacy
Act of 1974,” 20 U.S.C. section 1232(g) (1974). Similarly, the
Service does not require a school to keep records the
maintenance of which is prohibited under state or federal
law.

Schedule E (Form 990 or 990-EZ) (2009)

7.03 Exceptions. The records described in section 7.01 need
not be independently maintained for Internal Revenue Service
use if:
1. Substantially the same information that each of these
records would provide has been included in a report or
reports filed in accordance with law with an agency or
agencies of federal, state, or local government, and this
information is current within one year, and

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2. The school maintains copies of these reports from which
this information is readily obtainable. Records described in
section 7.01 providing information not included in reports
filed with an agency or agencies must be maintained by the
school for Service use.
7.04 Failure to maintain records. Failure to maintain or to
produce upon the proper request the required records and
information will create a presumption that the organization
has failed to comply with these guidelines.