Sch A_Public Charity Status and Public

Form 990-EZ - Short Form Return of Organization Exempt From Income Tax

instructions for 2013 Form 990-EZ Schedule A

Sch A_Public Charity Status and Public

OMB: 1545-1150

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2013

Department of the Treasury
Internal Revenue Service

Instructions for Schedule A
(Form 990 or 990-EZ)
Public Charity Status and Public Support
Section references are to the Internal Revenue
Code unless otherwise noted.

Future developments. For the latest
information about developments related to
Form 990 and its instructions, such as
legislation enacted after they were
published, go to www.irs.gov/form990.

General Instructions

Note. Terms in bold are defined in the
Glossary of the Instructions for Form 990,
Return of Organization Exempt From
Income Tax.

Purpose of Schedule

Schedule A (Form 990 or 990-EZ) is used
by an organization that files Form 990 or
Form 990-EZ, Short Form Return of
Organization Exempt From Income Tax, to
provide the required information about
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 organization
treated as such) 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(j),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
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, Return of Private Foundation or
Section 4947(a)(1) Trust Treated as a
Private Foundation. See instructions to
Part I.

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Nov 25, 2013

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 2012
Schedule A (Form 990 or 990-EZ) was
different from the accounting method
checked on the 2013 Form 990, Part XII,
line 1, or the 2013 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 2012
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 2013
Form 990, Part XII, line 1, or the 2013
Form 990-EZ, line G.
If the organization changed its
accounting method from a prior
year, it should provide an
explanation in Schedule O (Form 990 or
990-EZ), Supplemental Information to
Form 990 or 990–EZ.

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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 2012 Schedule A
(Form 990 or 990-EZ) using the cash
method, it should report in the 2009
through 2012 columns on the 2013
Schedule A (Form 990 or 990-EZ) the
same amounts that it reported in the 2009
through 2012 columns on the 2012
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
the Statement of Financial Accounting
Standards, 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 grant's present value on
the 2013 Schedule A (Form 990 or Form
990-EZ). The organization should report
Cat. No. 11294Q

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
CAUTION
section 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, do not need to file Form 8734,
Support Schedule for Advance Ruling
Period, at the end of their 5-year advance
ruling period to report financial information
to support their qualification as publicly
supported organizations. 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.

!

Specific Instructions
Part I. Reason for Public
Charity Status
Lines 1–11 (in general)

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 or
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 (also
refer to private foundation status). See
Section 9 of Rev. Proc. 2013-4, 2013-1
I.R.B. 126 (or latest annual update) for
instructions. A $400 user fee must be
submitted with such a request. See
Section 6.08 of Rev. Proc. 2013-8, 2013-1
I.R.B. 237.
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 following examples:
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:
1. Check the box on line 11;
2. Check the box on either line 11a,
11b, 11c, or 11d;
3. Complete lines 11e through 11g;
and
4. 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 Rev. Proc. 2012-10, 2012-2
I.R.B. 273, 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 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; and
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), Schools, and its related
instructions.

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An organization that checks the
box on line 2 must also complete
Schedule E (Form 990 or
990-EZ), Schools.

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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
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) about whether the organization also
is required to complete Schedule H (Form
990).

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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 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 for Schedule A (Form
990 or 990-EZ), Part I, is different
from the definition for Schedule H (Form
990), Hospitals. Accordingly, research that
is 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.

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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 Regulations sections
1.170A-9(f)(10), (11), and (12).

A community trust claiming it
qualifies as a public charity
CAUTION
should 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 sections
1.509(a)-4 and 1.509(a)-4T, and sections
509(a)(3) and 509(f). For a brief overview
of the requirements for qualification as a
supporting organization, and of the
different types of supporting
organizations, see Pub. 557, Tax Exempt
Status for Your Organization, and visit
www.irs.gov/Charities- &-Non-Profits/
Section-509(a)(3)-SupportingOrganizations.
If the organization is a supporting
organization, it also must check either the
box for line 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
line 11a, 11b, 11c, or 11d that best
describes the type of supporting
organization it is.
All supporting organizations,
regardless of type, must be
CAUTION
responsive to the needs or
demands of one or more supported
organizations, and must constitute an
integral part of, or maintain a significant
involvement in, the operations of one or
more supported organizations. Although
Type III supporting organizations have
specific “responsiveness” and “integral
part” tests that must be met, the
relationship between a Type I or II
supporting organization and its supported
organization(s) must also include these
responsiveness and integral part

!

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characteristics. The ability of the
supported organization(s) in a Type I or
Type II relationship effectively to control
the supporting organization's board
generally ensures that these
characteristics are present. If they are not
present, however, do not check any box
for lines 11a through d. For more
information, see Regulations sections
1.509(a)-4(f)(3) and (4).
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:
Do the supported organizations have a
substantial degree of direction over the
policies, programs, and activities of the
supporting organization, typically by
ensuring that the governing body,
officers or membership of the supported
organizations may regularly appoint or
elect a majority of the supporting
organization's directors or trustees?
Type II. A Type II supporting
organization is supervised or controlled
in connection with one or more publicly
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 the organization is not
described in Type I or Type II above and
qualifies as a Type III functionally
integrated supporting organization by
meeting the following requirements:
1. The organization meets the
notification requirement described in
line 11h, column (v);
2. The organization meets the
responsiveness test (both the relationship
requirement and the significant voice
requirement) described in Regulations
section 1.509(a)-4(i)(3); and
3. The organization meets the integral
part test by engaging in activities
substantially all of which directly further
the exempt purposes of one or more
supported organizations, and, but for the
supporting organization's involvement,
such activities would normally be engaged
in by the supported organizations; or,
alternatively, by being the parent of each
of its supported organizations. See
Regulations section 1.509(a)-4(i)(4).
Transition Rule. On December 28,
2012, new regulations changed this
integral part test for a Type III functionally
integrated supporting organization,
primarily by requiring that “substantially

all” of the organization's activities must
directly further the supported
organizations' exempt purposes. Some
organizations that met the integral part test
for prior tax years may no longer meet the
new integral part test. However, under
transition rules (Regulations section
1.509(a)-4(i)(11)(ii)(A)), an organization in
existence on December 28, 2012 that met
and continues to meet the prior integral
part test for Type III functionally integrated
supporting organizations will be deemed
to have met the new integral part test for
its first tax year beginning after December
28, 2012 only, and therefore may check
the box for line 11c, if it satisfies the other
requirements for Type III functionally
integrated supporting organizations. For
subsequent tax years, the organization
must meet the new integral part test in
order to qualify as functionally integrated.
Type III—Non-Functionally
Integrated. Check this box if the
organization is not described as a Type I,
Type II, or Type III functionally integrated
supporting organization and qualifies as a
Type III non-functionally integrated
supporting organization by meeting the
following requirements:
1. The organization meets the
notification requirement described in
line 11h, column (v).
2. The organization meets the
responsiveness test (both relationship
requirement and significant voice
requirement) described in Regulations
section 1.509(a)- 4(i)(3); and
3. The organization meets the integral
part test by meeting either (a) the
distribution and attentiveness
requirements or (b) the alternative integral
part test for certain trusts in existence on
November 20, 1970 (see Regulations
section 1.509(a)-4(i)(9) for this alternative
test).
a. Distribution Requirement. The
organization must distribute to one or
more of its supported organizations an
amount equal to the greater of (1) 85
percent of the organization's adjusted
net income for the prior taxable year
and (2) 3.5 percent of the aggregate
fair market value of the organization's
non-exempt use assets, with certain
adjustments. See Regulations
sections 1.509(a)-4(i)(5)(ii) and
1.509(a)-4T(i)(5)(ii). See Regulations
section 1.509(a)-4T(i)(8) for special
rules regarding valuation of
non-exempt use assets.
b. Attentiveness Requirement. The
distributions described above must be
sufficient to ensure attentiveness by
the supported organization(s). See
Regulations section
1.509(a)-4(i)(5)(iii) for these
requirements.

Transition Rules. On December 28,
2012, new final and temporary regulations
changed the distribution and attentiveness
requirements for Type III non-functionally
integrated supporting organizations.
Under transition rules, an organization in
existence on December 28, 2012 that met
and continues to meet the prior integral
part test for Type III non-functionally
integrated supporting organizations will be
deemed to have met the new integral part
test for its first tax year beginning after
December 28, 2012 only, and therefore
may check the box for line 11d, if it
satisfies the other requirements for Type
III non-functionally integrated supporting
organizations. For subsequent tax years,
the organization must meet the new
integral part test.
If a Type III supporting organization
qualified as functionally integrated for the
prior tax year, but does not so qualify for
its first tax year beginning after December
28, 2012 (either directly or because of the
transition rule described above), it may
qualify as non-functionally integrated, and
therefore may check the box for line 11d, if
it meets the requirements for Type III
non-functionally integrated supporting
organizations described above. Such a
transitioning organization will be treated as
effectively having no required distributable
amount for the first tax year beginning
after December 28, 2012 only.
See Regulations sections
1.509(a)-4(i)(11)(ii)(B) and (C) for more
information regarding these transition
rules.
An organization that intends to
establish in next year's return that
CAUTION
it met the distribution requirement
for Type III non-functionally integrated
supporting organizations must value its
non-exempt-use assets (in accordance
with Regulations section 1.509(a)-4T(i)(8))
for the tax year of this return.

!

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, Type III functionally integrated, or Type
III non-functionally integrated supporting
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organization. See Rev. Proc. 2011-33,
2011-25 I.R.B. 887.
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
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. Enter
the total number of supported
organizations on the “Total” line in column
(i). If the organization had more than five
supported organizations during the tax
year, enter the additional organizations on
duplicate pages of Schedule A, Part I. Use
as many duplicate copies as needed, and
number each page.
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, or local
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 through a written notice
addressed to a principal officer of the
supported organization that included all of
the following:

1. A description of the type and
amount of all support the supporting
organization provided to the supported
organization during the supporting
organization's tax year preceding the year
in which notice is provided.
2. A copy of the supporting
organization's most recent Form 990 (the
supporting organization may redact the
names and addresses of contributors).
3. A copy of the supporting
organization's updated governing
documents (including articles of
organization, bylaws, and any
amendments), to the extent not previously
provided.
See Regulations section
1.509(a)-4(i)(2). The notice must be
submitted by the last day of the fifth month
after the end of the tax year (May 31 for
calendar-year filers).
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. An
organization operated in connection with
any supported organization not organized
in the United States cannot qualify as a
Type III supporting organization.
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. Such
monetary support may include making
payments to or for the use of individual
members of the charitable class benefited
by the supported organization, and to
501(c)(3) public charities operated,
supervised, or controlled directly by or in
connection with the supported
organization. See Regulations section
1.509(a)-4(e). If no monetary support was
provided during the tax year, enter “-0-.”
Do not report non-monetary support in
column (vii). Describe in Part IV any
services, facilities, or goods that the
organization provided to or purchased for
the benefit of the supported organization
during the tax year.

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
in Part I, on line 5, 7, or 8, it
CAUTION
should complete Part II and insert
the appropriate dollar amounts. Do not
leave Part II blank or report only zeros if
the organization had any support during
the period. If the organization checks the
box in Part II, on line 13, it should stop
there and not complete the rest of Part II.

!

If the organization checked a box
in Part I, on line 5, 7, or 8 and also
checks the box in Part II, on
line 18, 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
in Part I, on line 9.

TIP

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 that includes
the current and four prior tax years
(including short years). If the
organization's current tax year or any of its
four prior tax years were short years,
explain in Part IV.
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 below.
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 Regulations section
1.170A-9(f)(7)(iv).
Noncash contributions. Use any
reasonable method to determine the value
-5-

of noncash contributions reported on
line 1.
Do not report any donations of services
(such as the value of donated advertising
space or broadcast air time) or donations
of use of materials, equipment, or
facilities, on line 1 as gifts, grants, or
contributions. Donated services and
facilities from a governmental unit are
reported on line 3.
Loss on uncollectible pledge. 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
2011 but learned during tax year 2013 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 2011.
Support from a governmental unit.
Include on line 1 support received from a
governmental unit. This includes
contributions, but not gross receipts 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
treated as gross receipts from exercising
or performing the organization's
tax-exempt purpose or function if the
purpose of the payment is primarily to
serve the direct and immediate needs of
the payor governmental unit, and is
treated as a contribution, if the purpose is
primarily to provide a direct benefit to the
public. For example, a payment to
maintain library facilities that are open to
the public should be treated as a
contribution. See Regulations section
1.170A-9(f)(8) and Rev. Rul. 81-276,
1981-2 C.B. 128. Refer to the instructions
for Form 990, Part VIII, lines 1e and 2 for
more examples addressing the distinction
between government payments that are
contributions and government payments
that are gross receipts from activities
related to the organization's tax-exempt
purpose or function. Medicare and
Medicaid payments are treated as gross
receipts from patients rather than as
contributions from the government payor
for purposes of the public support test.
See Rev. Rul. 83-153, 1983-2 C.B. 48.
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.

!

Line 1. Example—List of unusual
grants
Year

▶ 2013

Description

▶

Name
Mr.
Distinguished Donor

Undeveloped land

▶

Date of Grant
January 15, 2013

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:
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 Regulations
section 1.509(a)-3(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;
Regulations section 1.170A-9(f)(6)(ii); and
Regulations sections 1.509(a)-3(c)(3) and
(4) for details about unusual grants.
Conservation easements and qualified
conservation contributions. The
organization must report any qualified
conservation contributions and
contributions of conservation easements
consistently with how it reports revenue

from such contributions in its books,
records, and financial statements and in
Form 990, Part VIII, Statement of
Revenue.
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 Form
990, on Part VIII or in Part X, as an asset,
or in Form 990-EZ as revenue or assets.
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
-6-

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).
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
purpose. Instead, report these amounts on
line 12.
Line 9. Enter the organization's net
income from conducting unrelated
business activities, whether or not the
activities are regularly conducted 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 or amounts
reportable on line 12.
Line 12. Enter the total amount of gross
receipts the organization received from
related activities for all years reported in
Part II. The organization will be treated as
meeting the section 170(b)(1)(A)(vi),
331 3% public support test or the 10% facts
and circumstances public support test, if
almost all of its support consists of gross
receipts from related activities and an
insignificant amount of its support comes
from governmental units and public
contributions. See Regulations section
1.170A-9(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

Line 5. Example—List of donors other than governmental units and publicly supported organizations
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 2009 through 2013 were in excess of the 2% limitation
Name

(a)

(b)

(c)

(d)

(e)

(f)

(g)

2009

2010

2011

2012

2013

Total

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

XYZ Foundation
Banana Office
Supply

$59,000
$12,000

Plum Corporation
John Smith

15,000
5,000

Sue Adams

$5,000

5,000

10,000

Raisin Trade
Assoc.

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)
and qualifies as a public charity under
section 170(b)(1)(A)(vi) effective March

$18,000

$80,000

$68,000

3,000

1,000

16,000

4,000

30,000

18,000

15,000
1,000
10,000

20,000

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

509(d)(2). Include membership fees to the
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).

$3,000

7,000

16,000

4,000

30,000

18,000

27,000

15,000

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25, 2013, its date of incorporation. The
organization uses a calendar year
accounting period. When the organization
prepares Part II for 2013 through 2017, it
should check the box on line 13 and
should not complete the rest of Part II.
When the organization prepares Part II for
2018 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
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.

TIP

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 2013 enter the public
support percentage from the 2012
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 2013
and 2014.
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
-7-

10,000

$127,000

Part II. The organization qualifies as a
publicly supported organization for 2013.
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 2013
and 2014.
If this box is checked, explain in Part IV
how the organization meets the "facts and
circumstances" test in Regulations section
1.170A-9(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 2013. If
this box is checked, explain in Part IV how
the organization meets the "facts and
circumstances" test in Regulations section
1.170A-9(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
2013 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 2013 tax year and should not file Form
990, Form 990-EZ, or Schedule A (Form
990 or 990-EZ) for the 2013 tax year.
Instead, the organization should file Form
990-PF and check Initial return of a former
public charity on Form 990-PF, at the top
of page 1.
If Form 990 or 990-EZ is for the
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.

TIP

If the organization does not
qualify 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).

TIP

Part III. Support Schedule
for Organizations
Described in Section
509(a)(2)
If an organization checked the
box in Part I, on line 9, it should
CAUTION
complete Part III and insert the
appropriate dollar amounts. Do not leave
Part III blank or report only zeros if the
organization had any support during the
period. If the organization checks the box

!

in Part III, on line 14, it should stop there
and not complete the rest of Part III.
If the organization checked the
box in Part I, on line 9 and also
checks the box in Part III, on
line 20, 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 in Part I, on line 5, 7, or 8, whichever
applies.

TIP

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 that includes
the current and four prior tax years
(including short years). If the
organization's current tax year or any of its
four prior tax years were short years,
explain in Part IV.
In Part III, if the organization was not a
section 501(c)(3) organization for the
entire 5-year period, 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, below.
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.

-8-

Noncash contributions. Use any
reasonable method to determine the value
of noncash contributions reported on
line 1.
Do not report any donations of services
(such as the value of donated advertising
space or broadcast air time) or donations
of use of materials, equipment, or
facilities, on line 1 as gifts, grants, or
contributions. Donated services and
facilities from a governmental unit are
reported on line 5.
Loss on uncollectible pledge. 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
2011 but learned during tax year 2013 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 2011.
Support from a governmental unit.
Include on line 1 support received from a
governmental unit. This includes
contributions, but not gross receipts from
exercising or performing the organization's
tax-exempt purpose or function, which
should be reported on line 2. Contributions
are sometimes difficult to distinguish from
such gross receipts—the label on the
agreement is not controlling. An amount
received from a governmental unit is
treated as gross receipts from exercising
or performing the organization's
tax-exempt purpose or function if the
purpose of the payment is primarily to
serve the direct and immediate needs of
the payor governmental unit, and is
treated as a contribution if the purpose is
primarily to provide a direct benefit to the
public. For example, if a state government
agency pays an organization to operate an
institute to train agency employees in the
principles of management and
administration, the funds received should
be included on line 2 as gross receipts.
See Regulations section 1.509(a)-3(g).
Refer to the instructions for Form 990, Part
VIII, lines 1e and 2 for more examples
addressing the distinction between
government payments that are
contributions and government payments
that are gross receipts from activities
related to the organization's tax-exempt
purpose or function. Medicare and
Medicaid payments are treated as gross
receipts from patients rather than as
contributions from the government payor
for purposes of the public support test.
See Rev. Rul. 83-153, 1983-2 C.B. 48.
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—List of unusual
grants
Year

▶ 2013

Description

▶

Name
Mr.
Distinguished Donor

Undeveloped land

▶

Date of Grant
January 15, 2013

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 Regulations
section 1.509(a)-3(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
Regulations sections 1.509(a)-3(c)(3) and
1.509(a)-3(c)(4) for details about unusual
grants.

Conservation easements and qualified
conservation contributions. The
organization must report any qualified
conservation contributions and
contributions of conservation easements
consistently with how it reports revenue
from such contributions in its books,
records, and financial statements and in
Form 990, Part VIII, Statement of
Revenue.
Reporting contributions not reported
as revenue. If the organization reports
any contributions in Schedule A (Form
990 or 990-EZ), Part III, on line 1, and
does not report as revenue on Form 990,
Part VIII or as assets in Part X, 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 in
Schedule A (Form 990 or 990-EZ), Part III,
on line 1 without reporting it as revenue on
Form 990, 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.).
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).

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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).
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. Enter the amounts that are
included on lines 1, 2, and 3 that the
organization received from disqualified
persons. See the definition of disqualified
person in the Glossary of 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 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 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 above.

Line 7a. Example—List of amounts received from disqualified persons
Disqualified Person
David Smith

(a) 2009

(b) 2010

$7,000

$6,000

Anne Parker
Total

$7,000

$6,000

(c) 2011

(d) 2012

$5,000

$7,000

$5,000

$7,000

(e) 2013

(f) Total

$2,000

$15,000

$4,000

$16,000

$6,000

$31,000

Line 7b. Example—List of amounts received from other than disqualified persons
Year 2013
(a) Name

Word Processing, Inc.

(b) Amount received in
2013

(c) 1% of amount on
line 13 in 2013

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

(e) 2013 excess
(column (b) minus
column (d))

$25,000

$2,000

$5,000

$20,000

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

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
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
“-0-” on this line. See Regulations section
1.509(a)-3(a)(3).
Line 11. Enter the organization's net
income from conducting unrelated
business activities not included on
line 10b, whether or not the activities are
regularly conducted 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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$20,000

activities should be aggregated. If a net
loss results, enter “-0-” on this line.

would be rounded to 58.35% when
reported on line 15.

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 16. For 2013, enter the public
support percentage from the 2012
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 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.

Line 17. Round to the nearest whole
percentage.

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,
2013, its date of incorporation. The
organization uses a calendar year
accounting period. When the organization
prepares Part III for 2013 through 2017, it
should check the box on line 14 and
should not complete the rest of Part III.
When the organization prepares Part III for
2018 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
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.

TIP

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

-10-

Line 18. For 2013, enter the investment
income percentage from the 2012
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 2013
and 2014.
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
and do not complete the rest of this
schedule. The organization qualifies as a
publicly supported organization for 2013.
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 2013 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 2013 tax year. Instead, the
organization should file Form 990-PF, and
check Initial return of a former public
charity on Form 990-PF, at the top of
page 1.
If Form 990 or 990-EZ is for the
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

TIP

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 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).

TIP

Part IV. Supplemental
Information

Use Part IV to provide the narrative
explanations required, if applicable, by

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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.

!


File Typeapplication/pdf
File Title2013 Instructions for Schedule A (Form 990 or 990-EZ)
SubjectInstructions for Schedule A (Form 990 or 990-EZ), Public Charity Status and Public Support
AuthorW:CAR:MP:FP
File Modified2013-11-25
File Created2013-11-25

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