Support Schedule for Advance Ruling Period

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Instructions for Form 8734

12:52 - 20-JAN-2004

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

Instructions for Form 8734

Department of the Treasury
Internal Revenue Service

(January 2004)
Support Schedule for Advance Ruling Period
Section references are to the Internal Revenue Code unless otherwise noted.

To File
General Instructions When
Specific Instructions
File
Form
8734 within 90 days after the
Important:
• Get Schedule A (Form 990 or

990-EZ), Organization Exempt Under
Section 501(c)(3), and its separate
Instructions before you complete this
form. Twenty-four hours a day, seven
days a week, you can:
1. Access the IRS website by
computer at www.irs.gov and
download these items or
2. Order them by calling
1-800-TAX-FORM (1-800-829-3676).
• The terms “you” and “your” refer to
the organization. “We” and “us” refer to
the Internal Revenue Service (IRS).

Purpose of Form
Use Form 8734, Support Schedule for
Advance Ruling Period, at the end of
your five-year advance ruling period, to
provide financial information supporting
your qualification as a publicly
supported organization under section
509(a).
When your advance ruling period
ends, unless you obtain a final
determination that you are a publicly
supported organization, you will be
responsible for filing an annual return
as a private foundation for your sixth
tax year and thereafter while you are a
private foundation.
Note: Form 8734 may also be filed by
a private foundation at the end of its
60-month termination period under
section 507(b)(1)(B) in connection with
its request for a determination that it
qualifies as a publicly supported
organization.

Who Should File
A charitable organization described in
section 501(c)(3) should file Form 8734
when it seeks to establish at the end of
its advance ruling period that it is a
publicly supported organization under
sections 509(a)(1) and 170(b)(1)(A)(vi)
or section 509(a)(2).

Where To File
The completed Form 8734 should be
sent to the:
Internal Revenue Service
P.O. Box 192
Covington, KY 41012

end of your advance ruling period (90
days after the end of Year 5). By doing
so, you will continue to be treated as a
publicly supported organization until we
make a final decision.

If we do not receive your Form 8734,
we will presume that you are a private
foundation and publish that fact in our
publications.
If you file Form 8734 after this
period, we will consider the information
you provide to determine whether you
are a publicly supported organization. If
you were always a publicly supported
organization, we will correct your
status. If you are not eligible to be
reclassified, you will continue to be
listed as a private foundation.

Phone Help
If you have questions and/or need help
completing Form 8734, call IRS Exempt
Organizations Customer Account
Services toll free at 1-877-829-5500,
between 8:00 a.m. and 6:30 p.m.
Eastern time, Monday through Friday.

Public Inspection
A submitted Form 8734 is not a publicly
available document. See Regulation
section 301.6104(a)-1(i)(5).

Accounting Method
Form 8734 must be completed on the
cash method of accounting.
For example, if a grantor makes a
grant to an organization payable over a
term of years, such grant will be
includible in the support fraction of the
grantee organization only when and to
the extent amounts payable under the
grant are received by the grantee.
If you use the accrual method of
accounting, a worksheet such as the
one in Part IV-A of the Instructions for
Schedule A (Form 990 or 990-EZ) may
be used to convert any revenue
account from an accrual basis to a cash
basis.

Attachments
Show your name, employer
identification number, and “Form 8734”
at the top of any attachments you
include with your Form 8734.
Cat. No. 35120F

The instructions that follow are keyed to
items in the heading of Form 8734.

For tax years beginning and ending.
The line that asks about information for
beginning and ending tax years refers
to the first tax year when your advance
ruling period began and the fifth tax
year when your advance ruling period
ended. For example, if a calendar year
organization’s advance ruling period
began September 15, 1999, and ended
December 31, 2003, then it would
provide this information.
Your exemption letter will inform

TIP you about when your advance
ruling period began and ended.
If you are not sure about when your
advance ruling period began and
ended, call the IRS Exempt
Organizations Customer Account
Services toll free at 1-877-829-5500.
Name and address. If you operate
under a name different from your legal
name, give your legal name but identify
your alternate name after the legal
name by writing ‘‘aka’’ (also known as)
and the alternate name.
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 you have a P.O.
box, show the box number instead of
the street address.
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 you change your address after the
form is filed, use Form 8822, Change
of Address, to notify the IRS of the new
address.
Employer identification number. You
should have only one Federal employer
identification number (EIN). If you have
more than one and have not been
advised which to use, notify the Internal
Revenue Service Center, Attention:
Entity Control, Stop 6273, Ogden, UT
84201-0027. State what numbers you
have, the name and address to which
each number was assigned, and the
address of your principal office. We will
advise which number to use.

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Instructions for Form 8734

12:52 - 20-JAN-2004

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

Telephone number. Enter a telephone
number that we can call during normal
business hours to obtain information
about your finances and activities. If
you do not have a telephone number,
enter the telephone number of your
official who can provide such
information.
Email and fax number. If you have an
email address or a fax number, enter
this information.
Calendar year (or fiscal year
beginning in). This refers to your
annual accounting period. For example,
a calendar year accounting period is
the 12-month period that begins on
January 1st and ends on December
31st. If you were formed after the
beginning of an accounting period, your
first year (Year 1) will be less than the
full 12-month period. Your
determination letter will state the
accounting period that you adopted.
Lines 1 through 14 of this form
TIP are comparable to lines 15
through 28 of Schedule A (Form
990 or 990-EZ). If you filed Schedule A
for Year 4, show the information you
reported in Part IV-A of Schedule A in
the spaces for Year 4 through Year 1 in
the applicable lines of Form 8734. Then
enter your information for Year 5 on the
applicable lines of Form 8734.
Please note, however, that the lists
that you prepared for your records for
lines 26b, 27a, 27b, and 28 of Schedule
A for Year 4 through Year 1 must now
be attached to Form 8734 in support of
lines 12b, 13a, 13b, and 14. Be sure
you change the line numbers used in
support of Schedule A to the line
numbers used for Form 8734, and
include the information for Year 5.
The examples that follow are
comparable to the examples given in
Schedule A except that these examples
reflect the 5-year advance ruling period
instead of a 4-year period in Schedule
A.
Line 12. Organization meeting the
section 509(a)(1) and 170(b)(1)(A)(vi)
public support test. This example
shows that you meet the
331/3%-of-support test.
Example. X organization reported
the following amounts in its Support
Schedule for the 5-year period, Year 5
through Year 1:
Line

Line 12b Example
Amount on line 12a of the Support Schedule (2% limitation) . . . . . . . . . . . . . . . .
Contributors whose total gifts from Year 5 through Year 1 were in excess of
the 2% limitation
(a)
Name

(b)
Year 5

XYZ Foundation
Apple Office
Supply

Gifts, grants & contributions . . . . . . $300,000

3

Gross receipts from admissions, etc.

100,000

4

Dividends & interest . . . . . . . . . . .

300,000

10

Line 9 minus line 3 . . . . . . . . . . .

600,000

12a 2% of line 10 (2% limitation) . . . . . .

12,000

b Total of contributions exceeding the
2% limitation . . . . . . . . . . . . . . .

98,000

(e)
Year 2

(f)
Year 1

(g)
Total

(h)
Excess
contributions
(col. (g)
less the
2%
limitation)

$56,000

3,000

3,000

$62,000

$50,000

$15,000

3,000

$30,000

18,000

3,000

Plum
Corporation
John Smith

(d)
Year 3

$12,000

$5,000

Sue Adams

5,000

$7,500

15,000

5,000

1,000

$16,000

4,000

10,000

$20,000

8,000

7,000

$27,000

15,000

$10,000

Apple Trade
Assoc.

$20,000

7,500

Total (Carry the total of column (h) to line 12(b) of the Support Schedule.

$98,000

Section 509(a)(1)/170(b)(1)(A)(vi)
computation:

509(a)(1)/170(b)(1)(A)(vi) public
support test as follows:
Total support (line 10): . . . . . . . . . . . . $600,000

Line 12c Total support . . . . . . . . . . . . $600,000
Line 12d Less total of lines:

Direct contributions:
Total direct contributions from persons who
contributed less than 2% of total support
Total direct contributions from six donors,
each of whom gave more than 2%
($12,000) of total support . . . . . . . . . . .

50,000

170,000

40,000

Grant from Y City . . . . . . . . . . . . . . . .

40,000

Total gifts, grants & contributions . . . . . . $300,000
Total direct contributions from six
donors, each of whom gave
more than 2% of total support . . $170,000
72,000

Less: Direct contributions in
excess of 2% of total support . .

98,000

Total public support . . . . . . . .

$202,000

The X organization determined
whether or not it met the section

-2-

. . . $300,000

5

. . .

8

. . .

–0–
–0–
98,000 $398,000

Line 12e Total public support . . . . . . . . $202,000
Line 12f Public support percentage (line
12e divided by line 12c — $202,000/
$600,000) . . . . . . . . . . . . . . . . . . .

United Fund . . . . . . . . . . . . . . . . . . .

2% limitation for six donors: (2%
× $600,000 × 6) . . . . . . . . . . .

4

12b . . .

Indirect contributions from the general
public:

(f) Total

1

(c)
Year 4

$12,000

33.67%

Since X organization received more
than 331/3% of its total support for the
period from public sources, it qualifies
as a section 509(a)(1)/170(b)(1)(A)(vi)
publicly supported organization.
Facts and circumstances test. If you
do not meet the 331/3% public support
test but received at least 10% of your
support from the general public, other
publicly supported organizations, or
governmental units for your first five
years, you may qualify as a publicly
supported section 509(a)(1) and
170(b)(1)(A)(vi) organization. If you
believe you are a publicly supported
organization according to applicable
regulations, you must attach a detailed
statement of the facts upon which you
base your conclusion. Your facts and
circumstances may include (1) the
amount of support you received from
the general public, governmental units,
or public charities, (2) whether you
have a continuous and bona fide
program for solicitation of funds from

Page 3 of 3

Instructions for Form 8734

12:52 - 20-JAN-2004

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

the general public, governmental units,
or public charities, and (3) all other
facts and circumstances, including the
public nature of your governing board,
the extent to which your facilities or
programs are publicly available, the
extent to which your dues encourage
membership, and whether your
activities are likely to appeal to persons
having a broad common interest or
purpose. For additional information
about the 10% facts and circumstances
test, see Pub. 557, Tax-Exempt Status
for Your Organization, and Regulations
section 1.170A-9(e)(3).
Line 12b. Contributions in excess of
the 2% limitation. An example of a
list for line 12b showing the name of
and amount contributed by each person
(other than a governmental unit or
publicly supported organization) whose
total gifts for the advance ruling period
exceeded the amount shown in line 12a
is shown on page 2.
Line 13. Organization meeting the
section 509(a)(2) public support
tests. The following example illustrates
the public support tests.
Example. Organization T reported
the following amounts in its Support
Schedule for the 5-year period, Year 5
through Year 1:
Line

(f) Total

1

Gifts, grants & contributions . . . . . .

$45,000

2

Membership fees . . . . . . . . . . . .

50,000

3

Gross receipts from admissions,
merchandise, etc. . . . . . . . . . . . .

25,000

4

Gross income from interest,
dividends, etc. . . . . . . . . . . . . . .

80,000

9

Total of lines 1 through 8 . . . . . . . . $200,000

13a Gifts from disqualified persons . . . .

25,000

b Excess gross receipts from
nondisqualified persons . . . . . . . .

20,000

T determined whether it met the
one-third tests of section 509(a)(2) in
the following computation:
Section 509(a)(2) computation:
Line
13c Add: Amounts from column (f),
lines 1, 2, 3, 6, and 7 . . . . . . . . . .

$120,000

13d Total of line 13a . . . . . . . $25,000
Total of line 13b . . . . . . . 20,000

Line 13a Example
(a)
Name
David Smith

(b)
Year 5
$5,000

(c)
Year 4

(d)
Year 3

5,000

6,000

Anne Parker
Total

$5,000

$5,000

13e Public support (line 13c
minus line 13d total) . . . .
$75,000
13f Total support (line 9,
column (f)) . . . . . . . . . . $200,000
13g Public support percentage
(line 13e divided by line
13f — $75,000/$200,000)
37.50%
13h Investment income
percentage (line 4 divided
by line 13f — $80,000/
$200,000) . . . . . . . . . . .
40.0%

T received 37.50% of its total
support from the public and thus met
the more-than-one-third test of public
support to total support. T’s investment

(f)
Year 1

(g)
Total
$16,000

$8,000

10,000

$18,000

$8,000

$10,000

$34,000

䊳 Enter the total for each year of columns (b) through (f) on line 13a of the Support Schedule.
䊳 Enter the total of column (g) on the line 13a entry space for line 13d of the Support Schedule.

income percentage was 40.0%.
Therefore, it did not meet the second
part of the section 509(a)(2) test — the
not-more-than-one-third of total support
from gross investment income and net
unrelated business taxable income.
Since T did not satisfy both of the
one-third tests of section 509(a)(2), it
failed the section 509(a)(2) public
support test for its five-year period.
Line 13a. Contributions, membership
fees, and gross receipts from
disqualified persons. The example
above shows a list of the names and
total amounts received in each year
from each “disqualified person” for
amounts that were included in lines 1,
2, and 3 of Form 8734.
Line 13b. Gross receipts from other
than disqualified persons. The
example below is a list showing the
name of, and amount received for each
year that was more than the larger of:
1. The amount on line 11 for the
year or
2. $5,000
for any amount included in line 3 that
was received from each person (other
than “disqualified persons”) for Year 5.
Attach similar lists to determine excess
amounts for Years 4, 3, 2, and 1 entry
lines of 13b.
Line 13b Example
Year 5

45,000

$6,000

(e)
Year 2

(a)
Name

(b)
(c)
(d)
Amount Amount Enter
received
on
the
in
line 11 larger
Year 5 for Year
of
5
column
(c) or
$5,000

Word
Processing,
Inc.
$25,000

$2,000

$5,000

(e)
Year 5
Excess
(column
(b) less
column
(d))

$20,000

Enter the total for column (e) on line
13b for the Year 5 entry space . . . . . $20,000

-3-

Signature
An officer, director, or trustee who is
authorized to sign must sign Form
8734. Show the title or authority of the
signer and the date.
Paperwork Reduction Act Notice
We ask for the information on this form
to carry out the Internal Revenue laws
of the United States. You are required
to give us the information. We need it to
ensure that you are complying with
these laws. You are not required to
provide the information requested on a
form that is subject to the Paperwork
Reduction Act unless the form displays
a valid OMB control number. Books or
records relating to a form or its
instructions must be retained as long as
their contents may become material in
the administration of any Internal
Revenue law. The rules governing the
confidentiality of Form 8734 are in
section 6104.
The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated average time is:
Recordkeeping . . . . . . . . 29 hr., 39 min.
Learning about the law or
the form . . . . . . . . . . . . . 1 hr., 27 min.
Preparing the form . . . . . 2 hr., 56 min.
Copying, assembling, and
sending the form to the
IRS . . . . . . . . . . . . . . . . .
16 min.

If you have comments concerning
the accuracy of these time estimates or
suggestions for making this form
simpler, we would be happy to hear
from you. You can write to the Tax
Products Coordinating Committee,
Western Area Distribution Center,
Rancho Cordova, CA 95743-0001. Do
not send the form to this address.
Instead, see Where To File on page 1.