The Service has released new Form 990 Instructions for the 2008 tax year. The new Form 990 consists of an 11-page, 11-part core form that is required to be completed by all organizations that file the Form 990, and Schedules to be completed by those organizations that satisfy the applicable requirements for each Schedule.
Note: For further information, go to http://www.irs.gov/irs/article/0,,id=186015,00.html
Full Text:
What's New
Redesigned Form 990 and Instructions for 2008 tax year
Overview and Major Changes. The Form 990 has been redesigned effective for 2008 tax years. The new form consists of an 11-page, 11-part core form that is required to be completed by all organizations that file the Form 990, and Schedules to be completed by those organizations that satisfy the applicable requirements for each Schedule.
The following provides a brief summary of some major changes and features of the new form, and an outline of the new core form and Schedules. This summary does not describe all of the new features or changes. Some of the information previously required by the Form 990 (2007) has been eliminated or revised, and the new Form 990 (2008) requires information not previously required by the prior form. Some information previously required of only certain types of organizations now is required of all types of organizations completing the form. The organization should carefully review the new form and instructions in order to make sure it satisfies the new form's reporting requirements. See the IRS website at www.irs.gov and click on the Charities & Non-Profits tab for more information.
Some areas of major changes in reporting requirements include governance and compensation of officers, directors, trustees, key employees, and highest compensated employees. For example, Part VI, Governance, Management, and Disclosure, is a new section that asks questions about the organization's governance structure, policies and disclosure practices. Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors, also contains important changes, including new definitions of officer and key employee applicable to all organizations, and the extension of reporting compensation paid to the top five highest compensated employees from organizations described in section 501(c)(3) or 4947(a)(1), as was previously the case, to all organizations filing the Form 990, such as social welfare organizations, business leagues, trade associations, and social clubs.
Other areas of significant change include determination of public charity status and public support; supplemental financial statement reporting; and fundraising, special events and gaming. For organizations described in sections 501(c)(3) or 4947(a)(1), Schedule A has been revised to emphasize reporting of public charity status and public support. Schedule D contains new reporting requirements for conservation organizations; museums and other organizations maintaining collections of works of art and other items; credit counseling organizations and others holding funds in escrow or custodial arrangements; and organizations maintaining endowments. Schedule G requires reporting of certain information regarding arrangements with professional fundraisers, special events, and gaming activities. Other new Schedules include those for reporting foreign activities (Schedule F); hospitals (Schedule H); tax exempt bonds (Schedule K); non-cash contributions (Schedule M); and related organizations (Schedule R).
The following is an outline of the Parts of the core form and the new Schedules.
Core Form. The core form required to be completed by all organizations consists of the following eleven Parts:
Instructions, Glossary and Appendices. The Form 990 instructions also have been revised for 2008. The new instructions contain a sequencing list to help organizations determine the order in which to complete various portions of the form (see General Instruction C), revised general and specific instructions for the core form and Schedules, a glossary of key terms, and a compensation table to help organizations determine where and how to report types of compensation paid to officers, directors, trustees, key employees, and highest compensated employees (see Specific Instructions for Part VII). The new instructions also contain new appendices for reporting requirements and guidance regarding group returns (see Appendix E), and for organizations to report activities conducted indirectly through joint ventures and disregarded entities (see Appendix F).
Form 990-EZ Filing Amounts for 2008-2010
Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, may be filed by most organizations with gross receipts and total assets below certain amounts. For the 2008 tax year, most organizations with gross receipts less than $1,000,000 and total assets less than $2,500,000 may choose to file the Form 990 or Form 990-EZ. (For the 2007 tax year, these amounts were less than $100,000 gross receipts and $250,000 total assets.) For the 2009 tax year, most organizations with gross receipts less than $500,000 and total assets less than $1,250,000 may choose to file the Form 990 or Form 990-EZ. Beginning with the 2010 tax year, most organizations with gross receipts less than $200,000 and total assets less than $500,000 may file either the Form 990 or Form 990-EZ.
Although Form 990-EZ was not redesigned for 2008, some changes have been made so that certain information previously required to be submitted in attachments will now be reported on Schedules. Organizations that file Form 990-EZ (2008) must review the instructions for Schedules A, B, C, E, G, L, and N to determine whether they must report any of their activities Schedules. Form 990-EZ filers will not be required to complete any of the other 2008 Form 990 Schedules.
New annual electronic filing requirement for small tax-exempt organizations. Most small tax-exempt organizations now must file new Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ. See the IRS website at www.irs.gov and click on the Form 990-N (e-Postcard) tab for more information.
Purpose of Form
Form 990 and Form 990-EZ are used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.
An organization's completed Form 990 and Form 990-EZ, and the Forms 990-T of 501(c)(3) organizations, are available for public inspection as required by section 6104. Schedule B, Schedule of Contributors (Form 990, 990-EZ, or 990-PF), is available for public inspection for section 527 organizations filing Form 990 or 990-EZ. For other organizations that file Form 990 or Form 990-EZ, parts of Schedule B may be open to public inspection. See the Instructions for Schedule B for more details.
Some members of the public rely on Form 990, or Form 990-EZ, as their primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by information presented on its return. Therefore, the return must be complete, accurate, and fully describe the organization's programs and accomplishments.
Use Form 990 or Form 990-EZ to send a required election to the IRS, such as the election to capitalize costs under section 266.
2008 Instructions for Form 990
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)
Contents
o What's New -- Explanation of Redesign
o Purpose of Form
o Phone Help [to be added]
o Email Subscription [to be added]
o Photographs of Missing Children [to be added]
o General Instructions
A Who Must File
B Organizations Not Required to File Form 990
C Sequencing List to Complete the Form
D Accounting Periods and Methods
E When, Where, and How to File
F Extension of Time to File
G Amended Return/Final Return
H Failure-to-File Penalties
I Group Return
J Requirements for a Properly Completed Form 990
o Specific Instructions
Completing the Heading of Form 990
Part I Summary
Part II Signature Block
Part III Statement of Program Service Accomplishments
Part IV Checklist of Required Schedules
Part V Statements Regarding Other IRS Filings and Tax
Compliance
Part VI Governance, Management, and Disclosure
Part VII Compensation of Officers, Directors, Trustees, Key
Employees, Highest Compensated Employees, and Independent
Contractors
Part VIII Statement of Revenue
Part IX Statement of Functional Expenses
Part X Balance Sheet
Part XI Financial Statements and Reporting
o Glossary
o Appendix of Special Instructions
A Exempt Organizations Reference Chart
B How to Determine Whether an Organization's Gross
Receipts Are Normally $25,000 (or $5,000) or Less
C Special Gross Receipts Test for Determining Exempt
Status of Section 501(c)(7) and 501(c)(15) Organizations
D Public Inspection of Returns
E Group Returns: Reporting Information on Behalf of the
Group
F Disregarded Entities and Joint Ventures; Inclusion of
Activities and Items
G Section 4958 Excess Benefit Transactions
H Forms and Publications To File or Use
I Use of Form 990, or Form 990-EZ, to Satisfy State
Reporting Requirements
o Index [to be added]
General Instructions
Overview of Form 990. The Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under Internal Revenue Code section 501(a), and certain political organizations and nonexempt charitable trusts. Parts I through XI of the form must be completed by all filing organizations, and require reporting on the organization's exempt and other activities, finances, governance, compliance with certain federal tax filings and requirements, and compensation paid to certain persons. Additional schedules are required to be completed depending upon the activities and type of the organization. By completing Part IV, the organization determines which schedules are required. The entire completed Form 990 filed with the IRS, except for certain contributor information on Schedule B, Schedule of Contributors, is required to be made available to the public by the IRS and the filing organization, and may be required to be filed with state governments to satisfy state reporting requirements.
Helpful Hints. The following hints may help you more efficiently review these instructions and complete the form.
A. Who Must File
Most organizations exempt from income tax under Internal Revenue Code section 501(a) must file an annual information return (Form 990 or Form 990-EZ) or an annual electronic notice (Form 990-N), depending upon the organization's gross receipts and total assets.
For 2008, Form 990 must be filed by an organization exempt from income tax under Internal Revenue Code section 501(a) (including an organization that has not applied for recognition of exemption) if it has either gross receipts greater than or equal to $1,000,000 or total assets greater than or equal to $2,500,000 at the end of the tax year. This includes the following:
For purposes of Form 990 reporting, the term "section 501(c)(3)" includes organizations exempt under sections 501(e) and (f) (cooperative service organizations), 501(k) (child care organizations), and 501(n) (charitable risk pools). In addition, any organization described in one of these sections is also subject to section 4958 if it obtains a determination letter from the IRS stating that it is described in section 501(c)(3).
Form 990-N. If an organization normally has gross receipts of $25,000 or less, it must file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ (with exceptions described below for certain section 509(a)(3) supporting organizations and for certain organizations described in General Instruction B) . See Appendix B for a discussion of gross receipts.
Form 990-EZ. For tax years beginning in 2008, if an organization has gross receipts less than $1,000,000 and total assets at the end of the year less than $2,500,000, it may choose to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax , instead of Form 990 . See the instructions for Form 990-EZ for more information. But see the special rules described herein regarding controlling organizations under section 512(b)(13) and sponsoring organizations of donor advised funds.
Electronic filing. Certain Form 990 filersmustfile electronically. See General Instruction E, When, Where, and How to File, for who must file electronically.
TIP: The Form 990 (including its schedules) has been substantially redesigned for 2008 and later tax years. The IRS has provided transitional relief to small and mid-size organizations, allowing many to file Form 990-EZ for 2008 and 2009 instead of Form 990, and providing them time to become familiar with the new Form 990 and its requirements. The following schedule sets forth the modified thresholds for filing Form 990-EZ (instead of Form 990) during this transition period:
May file 990-EZ for: If gross receipts are: And if total assets are:
2008 Form (generally
filed in 2009) ‹ $1,000,000 ‹ $2,500,000
2009 Form (generally
filed in 2010) ‹ $500,000 ‹ $1,250,000
2010 and later Forms ‹ $200,000 ‹ $500,000
Foreign and U.S. Possession organizations. Foreign organizations as well as domestic organizations described above must file Form 990 or 990-EZ unless specifically excepted under General Instruction B, Organizations Not Require to File Form 990.
Report amounts in U.S. dollars, and state what conversion rate the
organization uses. Combine amounts from within and outside the U.S.,
and report the total for each item. All information must be written in
English.
Sponsoring organizations of donor advised funds. Sponsoring organizations of donor advised funds, if required to file an annual information return for the year, must file Form 990 and not Form 990-EZ.
Controlling organizations described in section 512(b)(13). A controlling organization of one or more controlled entities, as described in section 512(b)(13), must file Form 990 and not Form 990-EZ if it is required to file an annual information return for the year and if there was any transfer of funds between the controlling organization and any controlled entity during the year.
Section 509(a)(3) supporting organizations. A section 509(a)(3) supporting organization must file Form 990 or 990-EZ, even if its gross receipts are normally $25,000 or less, unless it qualifies as one of the following:
2. the exclusively religious activities of a religious order
3. a religious organization whose gross receipts are normally not more than $5,000
4. an organization whose gross receipts are normally not more than $5,000 that supports a 501(c)(3) religious organization
5. a charitable organization supported partly by funds contributed by United States, State, or local governmental units, or primarily by contributions of the general public, whose gross receipts are normally not more than $5,000
Section 501(c)(7) and 501(c)(15) organizations. A section 501(c)(7) or 501(c)(15) organization applies the same gross receipts test as other organizations to determine whether it must file the Form 990, but uses a different definition of gross receipts to determine whether it qualifies as tax-exempt for the tax year. See Appendix C for more information.
Section 527 political organizations. Tax-exempt political organizations must file Form 990 or Form 990-EZ unless excepted under General Instruction B. A qualified state or local political organization must file Form 990 or Form 990-EZ only if it has gross receipts of $100,000 or more. Political organizations are not required to file Form 990-N.
Section 4947(a)(1) non-exempt charitable trusts. A nonexempt charitable trust described under section 4947(a)(1) of the Code (if it is not treated as a private foundation) is required to file Form 990 or Form 990-EZ unless excepted under General Instruction B. Such a trust is treated like an exempt 501(c)(3) organization for purposes of completing the form; all references to a 501(c)(3) organization shall include a section 4947(a)(1) trust (for instance, such a trust must complete Schedule A, Public Charity Status and Public Support), unless otherwise specified. If such a trust does not have any taxable income under Subtitle A of the Code, it can file Form 990 or Form 990-EZ to meet its section 6012 filing requirement and does not have to file Form 1041, U.S. Income Tax Return for Estates and Trusts.
Returns when exempt status not established yet. An organization is required to file Form 990 in accordance with these instructions if the organization claims exempt status under section 501(a) but has not yet established such exempt status by filing Form 1023 or 1024 and receiving an IRS letter recognizing tax-exempt status. In such case the organization must check the "application pending" checkbox in Item B of the Form 990 Header (whether or not a Form 1023 or 1024 has been filed) to indicate that the Form 990 is being filed in the belief that the organization is exempt under section 501(a), but that the IRS has not yet recognized such exemption.
B. Organizations Not Required to File Form 990
An organization does not have to file Form 990 or 990-EZ even if it has at least $1,000,000 of gross receipts or $2,500,000 of total assets if it is described below (except for section 509(a)(3) supporting organizations -- the filing exceptions for supporting organizations are described above). See General Instruction A for determining whether the organization may file Form 990-EZ instead of Form 990. An organization described in 2, 10, 11, or 13 below is required to file Form 990-N unless it voluntarily files Form 990, 990-EZ, or 990-BL.
Certain religious organizations
2. A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs and is described in Rev. Proc. 96-10, 1996-1 C.B. 577.
3. A school below college level affiliated with a church or operated by a religious order, as described in Regulations section 1.6033-2(g)(1)(vii).
4. A mission society sponsored by, or affiliated with, one or more churches or church denominations, if more than half of the society's activities are conducted in, or directed at, persons in foreign countries.
5. An exclusively religious activity of any religious order described in Rev. Proc. 91-20.
7. A governmental unit or affiliate of a governmental unit described in Rev. Proc. 95-48, 1995-2 C.B. 418.
8. An organization described in section 501(c)(1). A section 501(c)(1) organization is a corporation organized under an act of Congress that is an instrumentality of the United States, and exempt from federal income taxes.
11. A foreign organization, including organizations located in U.S. Possessions, whose gross receipts from sources within the U.S. are normally $25,000 or less.
13. A black lung benefit trust described in section 501(c)(21). Use Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons,
14. A religious or apostolic organization described in section 501(d). Use Form 1065, U.S. Return of Partnership Income.
15. A stock bonus, pension, or profit-sharing trust that qualifies under section 401. Use Form 5500, Annual Return/Report of Employee Benefit Plan.
You may find the following chart helpful. It limits jumping from one part of the form to another to make a calculation or determination needed to complete an earlier part, as certain later parts of the form must first be completed in order to complete earlier parts. In general, complete the core form first, and then alphabetically through Schedules A through O and Schedule R, except as provided below:
2. See Schedule R instructions and determine the organization's related organizations required to be listed in Schedule R.
3. Determine the organization's officers, directors, trustees, key employees, and five highest compensated employees required to be listed in Form 990, Part VII, Section A.
4. Complete Parts VIII, IX, and X of Form 990.
5. Complete line G in the Heading of Form 990, on page 1.
6. Complete Parts III, V, VII, and XI of Form 990.
7. See Schedule L instructions and complete Schedule L (if required).
8. Complete Part VI of Form 990. Transactions reported in Schedule L are relevant to determining independence of members of the governing body under Form 990, Part VI, line 1b.
9. Complete Part I of Form 990 based on information derived from other parts of the form.
10. Complete Part IV of Form 990 to determine which Schedules must be completed by the organization.
11. Complete applicable Schedules.(for which "Yes" boxes were checked in Part IV). Use Schedule O to provide required supplemental information and other narrative explanations.
12. Complete Part II of Form 990, Signature Block.
D. Accounting Periods and Methods
TIP: See IRS Publication 538, Accounting Periods and Methods, about reporting changes to accounting periods and methods.
ACCOUNTING PERIODS
Calendar year. Use the 2008 Form 990 to report on the 2008 calendar year accounting period. A calendar year accounting period begins on January 1 and ends on December 31.
Fiscal year. If the organization has established a fiscal year accounting period, use the 2008 Form 990 to report on the organization's fiscal year that began in 2008 and ended 12 months later. A fiscal year accounting period should normally coincide with the natural operating cycle of the organization. Be certain to indicate in the heading of Form 990 the date the organization's fiscal year began in 2008 and the date the fiscal year ended in 2009.
Short period. A short accounting period is a period of less than 12 months, which exists when an organization first commences operations, changes its accounting period, or terminates. If the organization's short year ended prior to December 31, 2008 (not on or after December 31, 2008), it may use the 2007 Form 990 to file for such short year.
Accounting period change. If the organization changes its accounting period, it must file a Form 990 for the short period resulting from the change. Write "Change of Accounting Period" at the top of this short-period return.
If the organization previously changed its accounting period within the 10-calendar-year period that includes the beginning of the short period, and it had a Form 990 filing requirement at any time during that 10-year period, it must also attach a Form 1128 to the short-period return. See Rev. Proc. 85-58, 1985-2 C.B. 740.
ACCOUNTING METHODS
Unless instructed otherwise, the organization should generally use the same accounting method on the return to report revenue and expenses that it regularly uses to keep its books and records. To be acceptable for Form 990 reporting purposes, however, the method of accounting must clearly reflect income.
Accounting method change. Generally, the organization must file Form 3115 to change its accounting method. An exception applies where a 501(c) organization changes its accounting method to comply with SFAS 116, Accounting for Contributions Received and Contributions Made. See Notice 96-30, 1996-1 C.B. 378. An organization that makes a change in accounting method, regardless of whether if files Form 3115, and that has audited financial statements, must report any adjustment required by Internal Revenue Code section 481(a) on Schedule D (Supplemental Financial Statements), Parts XI through XIV, of Form 990.
State reporting. Most states that accept Form 990 in place of their own forms require that all amounts be reported based on the accrual method of accounting. If the organization prepares Form 990 for state reporting purposes, it may file an identical return with the IRS even though the return does not agree with the books of account, unless the way one or more items are reported on the state return conflicts with the instructions for preparing Form 990 for filing with the IRS.
Example 1 The organization maintains its books on the cash receipts and disbursements method of accounting but prepares a Form 990 return for the state based on the accrual method. It could use that return for reporting to the IRS.
Example 2 A state reporting requirement requires the organization to report certain revenue, expense, or balance sheet items differently from the way it normally accounts for them on its books. A Form 990 prepared for that state is acceptable for the IRS reporting purposes if the state reporting requirement does not conflict with the Form 990 instructions.
An organization should keep a reconciliation of any differences between its books of account and the Form 990 that is filed. Organizations with audited financial statements are required to provide such reconciliations in Schedule D, Parts XI through XIII.
E. When, Where, and How to File
File Form 990 by the 15th day of the 5th month after the organization's accounting period ends (May 15 for a calendar-year filer). If the regular due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. A business day is any day that is not a Saturday, Sunday, or legal holiday.
If the organization is liquidated, dissolved, or terminated, file the return by the 15th day of the 5th month after liquidation, dissolution, or termination.
If the return is not filed by the due date (including any extension granted), explain in Schedule O the reasons for not filing on time.
Send the return to the:
Electronic filing. The organization can file Form 990 and related forms, schedules, and attachments electronically. However, if an organization files at least 250 returns of any type during the calendar year and has total assets of $10 million or more at the end of the tax year, it must file Form 990 electronically. "Returns" for this purpose include information returns (for example, Forms W-2, Forms 1099), income tax returns, employment tax returns (including quarterly Forms 941), and excise tax returns.
If an organization is required to file a return electronically but does not, the organization is considered not to have filed its return, even if a paper return is submitted. See Regulations section 301.6033-4 for more information.
For additional information on the electronic filing requirement, visit www.irs.gov/efile.
The IRS may waive the requirements to file electronically in cases of undue hardship. For information on filing a waiver, see Notice 2005-88, 2005-48 I.R.B. 1060.
F. Extension of Time to File
Use Form 8868 to request an automatic 3-month extension of time to file. Use Form 8868 also to apply for an additional (not automatic) 3-month extension if the original 3 months was not enough time. To obtain this additional extension of time to file, the organization must show reasonable cause for the additional time requested. See the Instructions for Form 8868.
G. Amended Return/Final Return
To change the organization's return for any year, file a new return including any required schedules. Use the version of Form 990 applicable to the year being amended. The amended return must provide all the information called for by the form and instructions, not just the new or corrected information. Check the Amended Return box in the heading of the return. Also, state in Schedule O which parts and schedules of the Form 990 were amended and describe the amendments.
The organization may file an amended return at any time to change or add to the information reported on a previously filed return for the same period. It must make the amended return available for inspection for 3 years from the date of filing or 3 years from the date the original return was due, whichever is later.
Use Form 4506, Request for Copy of Tax Return, to obtain a copy of a previously filed return. See www.irs.gov for information on getting blank tax forms.
If the return is a final return, see the Specific Instructions for Schedule N, Liquidation, Termination, Dissolution or Significant Disposition of Assets, for further details.
Amended returns and state filing considerations. State law may require that the organization send a copy of an amended Form 990 return (or information provided to the IRS supplementing the return) to the state with which it filed a copy of Form 990 originally to meet that state's filing requirement. A state may require an organization to file an amended Form 990 to satisfy state reporting requirements, even if the original return was accepted by the IRS.
H. Failure-to-File Penalties
Against the organization. Under section 6652(c)(1)(A), a penalty of $20 a day, not to exceed the smaller of $10,000 or 5% of the gross receipts of the organization for the year, may be charged when a return is filed late, unless the organization can show that the late filing was due to reasonable cause. Organizations with annual gross receipts exceeding $1 million are subject to a penalty of $100 for each day failure continues (with a maximum penalty with respect to any one return of $50,000). The penalty begins on the due date for filing the Form 990.
Tax exempt organizations which are required to file electronically but do not are deemed to have failed to file the return. This is true even if a paper return is submitted.
The penalty may also be charged if the organization files an incomplete return, such as by failing to complete a required line item or a required part of a schedule. To avoid penalties and having to supply missing information later:
(2) unless instructed to skip a line, answer each question on the return;
(3) make an entry (including a zero when appropriate) on all lines requiring an amount or other information to be reported; and
(4) provide required explanations as instructed.
Use of a paid preparer does not relieve the organization of its responsibility to file a complete return.
Against Responsible Person(s). If the organization does not file a complete return or does not furnish correct information, the IRS will send the organization a letter that includes a fixed time to fulfill these requirements. After that period expires, the person failing to comply will be charged a penalty of $10 a day. The maximum penalty on all persons for failures with respect to any one return shall not exceed $5,000.
There are also penalties (fines and imprisonment) for willfully not filing returns and for filing fraudulent returns and statements with the IRS (sections 7203, 7206, and 7207). States may impose additional penalties for failure to meet their separate filing requirements.
I. Group Return
A central, parent, or like organization can file a group return on Form 990 for two or more subordinate or local organizations that are:
2. Subject to the central organization's general supervision or control,
3. Exempt from tax under a group exemption letter that is still in effect, and
4. Using the same accounting period as the central organization.
A subordinate organization covered by a group exemption ruling may file a separate return instead of being included in the group return. If a subordinate organization is not required to file a return, it need not be included in the group return or file a separate return.
If the central organization is required to file a return for itself, it must file a separate return and may not be included in the group return. See General Instruction B for a list of organizations not required to file.
Every year, each subordinate organization must authorize the central organization in writing to include it in the group return and must declare, under penalty of perjury, that the authorization and the information it submits to be included in the group return are true and complete.
The central organization should send the annual information update required to maintain a group exemption ruling (a separate requirement from the annual return) to the:
J. Requirements for a Properly Completed Form 990
All organizations must complete Parts I through XI of the Form 990, and any schedules for which a "Yes" response is indicated in Part IV.
Public inspection. In general, all information the organization reports on or with its Form 990, including schedules and attachments, will be available for public inspection. Note, however, the special rules for Schedule B, Schedule of Contributors, a required schedule for certain organizations that file Form 990. Make sure the forms and schedules are clear enough to photocopy legibly. For more information on public inspection requirements, see Appendix D, Accounting Periods and Methods, and Pub. 557.
Signature. A Form 990 is not complete without a proper signature. For details, see the instructions to Part II,Signature Block.
Recordkeeping. The organization's records should be kept for as long as they may be needed for the administration of any provision of the Internal Revenue Code. Usually, records that support an item of income, deduction, or credit must be kept for a minimum of 3 years from the date the return is due or filed, whichever is later. Keep records that verify the organization's basis in property for as long as they are needed to figure the basis of the original or replacement property. Applicable law and an organization's policies may require that the organization retain records longer than 3 years. Form 990, Part VI, line 14 asks whether the organization has a document retention and destruction policy.
The organization should also keep copies of any returns it has filed. They help in preparing future returns and in making computations when filing an amended return.
Rounding off to whole dollars. The organization must round off cents to whole dollars on the returns and schedules, unless otherwise noted for particular questions. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.49 becomes $1 and $2.50 becomes $3. If the organization has to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.
Completing all lines. Make an entry (including a zero when appropriate) on all lines requiring an amount or other information to be reported. Do not leave any applicable lines blank, unless expressly instructed to skip that line. If answering a line is predicated on a "Yes" answer to the preceding line, and if the organization's answer to the preceding line was "No," then leave the "If Yes" line blank.
All filers must file Schedule O (certain questions require all filers to provide an explanation in Schedule O). In general, answers may be explained or supplemented in Schedule O if the allotted space in the form or other schedule is insufficient, or if a "Yes" or "No" answer is required but the organization wishes to explain its answer.
Reporting proper amounts. Some lines request information reported on other forms filed by the organization (such as Form W-2 or Form 990-T). If the organization is aware that the amount actually reported on the other form is incorrect, it must report on Form 990 the information that should have been reported on the other form (in addition to filing an amended form with the proper amount).
Inclusion of activities and items of disregarded entities and joint ventures. An organization must report in its Form 990 all of the revenues, expenses, assets, liabilities, and net assets or funds of a disregarded entity of which it is the sole member, and must report in its Form 990 its share of all such items of a joint venture or other investment or arrangement taxed as a partnership. This includes passive investments. In addition, the organization generally must report the activities of a disregarded entity or a joint venture in the appropriate parts of schedules of the Form 990. For special instructions regarding the treatment of disregarded entities and joint ventures for various parts of the form, see Appendix F, Disregarded Entities and Joint Ventures.
Assembling Form 990, schedules, and attachments. Before filing the Form 990, assemble the package of form, schedules, and attachments in the following order:
2. schedules, completed as applicable, filed in alphabetical order (see Form 990, Part IV for required schedules)
3. attachments, completed as applicable (including name change amendment to organizing document required by Header Item B instructions; list of subordinate organizations included in group return required by Header Item H instructions; request and determination letter regarding termination of exempt status required by Schedule N instructions; and articles of merger or dissolution, resolutions, and plans of liquidation or merger required by Schedule N instructions)
2008 Instructions for Form 990
(Core Form)
GLOSSARY
NOTES:
o Words in bold within a definition are defined elsewhere within
the Glossary.
o All section references are to the Internal Revenue Code (Title
26 of U.S. Code) or regulations under Title 26, unless
otherwise specified.
o Definitions are for purposes of filing Form 990 (and
Schedules) only.
35% controlled entity
An entity that is owned, directly or indirectly (e.g., under
constructive ownership rules of section 267(c)), by a given person,
such as the organization's current or former officers, directors,
trustees, or key employees listed in Form 990, Part VII,
Section 1, or the family members thereof (listed persons) as
follows:
1. A corporation in which listed persons own more than 35% of
the total combined voting power;
2. A partnership in which listed persons own more than 35% of
the profits interest; or
3. A trust or estate in which listed persons own more than 35%
of the beneficial interest.
accountable plan
A reimbursement or other expense allowance arrangement that
satisfies the requirements of section 62(c) by meeting the
requirements of business connection, substantiation, and returning
amounts in excess of substantiated expenses. See Regulations section
1.62-2(c)(2).
activities conducted outside the United States
For purposes of Schedule F, Statement of Activities Outside the
United States, include grantmaking, fundraising, unrelated
trade or business, program services, or maintaining offices,
employees, or agents in particular regions outside the United
States.
applicable tax-exempt organization
A section 501(c)(3) or a section 501(c)(4) organization, or that
was such an organization at any time during the 5-year period ending
on the day of the excess benefit transaction.
art
See works of art.
audited financial statement
A formal opinion of an organization's financial records and
practices by an independent, certified public accountant with the
objective of assessing the accuracy and reliability of the
organization's financial statements.
audit committee
A committee, generally established by the governing body
of an organization, with the responsibilities to oversee the
organization's financial reporting process, monitor choice of
accounting policies and principles, monitor internal control
processes, and oversee hiring and performance of any external
auditors.
board-designated endowment
See quasi-endowment.
bingo
A game of chance played with cards that are generally printed
with five rows of five squares each. Participants place markers over
randomly called numbers on the cards in an attempt to form a
pre-selected pattern such as a horizontal, vertical, or diagonal
line, or all four corners. The first participant to form the
pre-selected pattern wins the game. To be a bingo game, the game must
be of the type described in which wagers are placed, winners are
determined, and prizes or other property are distributed in the
presence of all persons placing wagers in that game. Certain
consolation bingo games within a progressive bingo game may also
qualify as bingo.
bond issue
An issue of two or more bonds which are:
1. sold at substantially the same time;
2. sold pursuant to the same plan of financing; and
3. payable from the same source of funds.
See Regulations section 1.150-1(c).
business relationship
Business relationships between two persons include the
following:
1) One person is employed by the other in a sole proprietorship
or by an organization with which the other is associated as a
trustee, director, officer, key
employee, or greater-than-35% owner.
2) One person is transacting business with the other (other than
in the ordinary course of either party's business on the same
terms as are generally offered to the public), directly or
indirectly, in one or more contracts of sale, lease, license,
loan, performance of services, or other transaction involving
transfers of cash or property valued in excess of $10,000 in the
aggregate during the organization's tax year. Indirect
transactions are transactions with an organization with which
the one person is associated as a trustee, director, officer,
key employee, or greater-than-35% owner.
3) The two persons are each a director, trustee, officer, or
greater than 10% owner in the same business or investment
entity.
Ownership is measured by stock ownership (either voting power or
value) of a corporation, profits or capital interest in a partnership
or limited liability company, membership interest in a nonprofit
organization, or beneficial interest in a trust. Ownership includes
indirect ownership (e.g., ownership in an entity that has ownership
in the entity in question); there may be ownership through multiple
tiers of entities.
cash contributions
Contributions received in the form of cash, checks, money
orders, credit card charges, wire transfers, and other transfers and
deposits to a cash account of the organization.
central organization
The parent organization in a group exemption, which
exercises general supervision and control over the subordinate
organizations in the group exemption.
CEO, executive director, or top management official certified
historic structure
See top management official. "CEO" stands for
chief executive officer.
Any building or structure listed in the National Register as
well as any building certified as being of historic significance to a
registered historic district. See section 170(h)(4)(B) for special
rules that apply to contributions made after August 17, 2006.
church
Certain characteristics are generally attributed to churches.
These attributes of a church have been developed by the IRS and by
court decisions. They include: distinct legal existence; recognized
creed and form of worship; definite and distinct ecclesiastical
government; formal code of doctrine and discipline; distinct
religious history; membership not associated with any other church or
denomination; organization of ordained ministers; ordained ministers
selected after completing prescribed courses of study; literature of
its own; established places of worship; regular congregations;
regular religious services; Sunday schools for the religious
instruction of the young; schools for the preparation of its
ministers. The IRS generally uses a combination of these
characteristics, together with other facts and circumstances, to
determine whether an organization is considered a church for federal
tax purposes. A convention or association of churches is generally
treated like a church for federal tax purposes. See Publication 1828,
Tax Guide for Churches and Religious Organizations.
closely held stock
Generally, shares of stock in a closely held company that is not
available for sale to the general public or which is not widely
traded (see further explanation in instructions for Part IX, line 12
and Schedule M, Non-Cash Contributions, line 10).
collections of works of art, historical treasures, and other
similar assets
Include collections, as described in SFAS 116, of
works of art, historical treasures, and other similar
assets held for public exhibition, education, or research in further
of public service.
collectibles
Include autographs, sports memorabilia, dolls, stamps, coins,
books (other than books and publications reported on line 4 of
Schedule M, Non-Cash Contributions), gems, jewelry (other than
costume jewelry reportable on line 5 of Schedule M).
compensation
Unless otherwise provided, all forms of cash and non-cash
payments or benefits provided in exchange for services, including
salary and wages, bonuses, severance payments, deferred payments,
retirement benefits, fringe benefits, and other financial
arrangements or transactions such as personal vehicles, meals,
housing, personal and family educational benefits, below-market
loans, payment of personal or family travel, entertainment, and
personal use of the organization's property. See also deferred
compensation, nonqualified deferred compensation, and
reportable compensation.
compilation (compiled financial statements)
A compilation is a presentation of financial statements
and other information that is the representation of the management or
ownership of an organization and which has not been reviewed or
audited by an independent accountant.
conflict of interest policy
A policy that defines conflict of interest, identifies the
classes of individuals within the organization covered by the policy,
facilitates disclosure of information that may help identify
conflicts of interest, and specifies procedures to be followed in
managing conflicts of interest. A conflict of interest arises when a
person is in a position of authority over an organization, such as an
officer, director or manager, may benefit financially
from a decision he or she could make in such capacity, including
indirect benefits such as to family members or businesses with
which the person is closely associated. For this purpose, a conflict
of interest does not include questions involving a person's competing
or respective duties to the organization and to another organization,
such as by serving on the boards of both organizations, that do not
involve a material financial interest of, or benefit to, such person.
conservation easement
A restriction on the use that may be made of, or changes made
to, real property that is granted in perpetuity to a qualified
organization exclusively for conservation purposes. Conservation
purposes include protection of natural habitat, the preservation of
open space; or the preservation of property for historic,
educational, or recreational purposes. Qualified organizations
include governmental units and certain tax-exempt
organizations described in section 501(c)(3) that have a commitment
to protect the conservation purposes of the easement and the
resources to enforce the restrictions. For more information see
Notice 2004-41, 2004-28 I.R.B. 31. See also qualified conservation
contribution.
contributions
Unless otherwise provided, includes donations, gifts, bequests,
grants, and other transfers of money or property to the extent that
adequate consideration is not provided in exchange and that the
contributor intends to make a gift, whether or not made for
charitable purposes. A transaction may be a partly a sale and partly
a contribution. See also cash contributions and noncash
contributions.
control
For purposes of determining related organizations,
control means, in regards to nonprofit organizations, whether
taxable or tax-exempt:
In the case of a parent/subsidiary relationship:
o power to remove and replace (or to appoint or elect, if such
power includes a continuing power to appoint or elect
periodically or in the event of vacancies) a majority of the
nonprofit organization's or other organization's
directors or trustees,
o management or board overlap where a majority of the subsidiary
organization's directors or trustees are trustees, directors,
officers, employees, or agents of the parent
organization.
In the case of brother/sister nonprofit organizations:
o the same persons constitute a majority of the members
of the governing body of both organizations.
In the case of stock corporations and other organizations with
owners or persons having beneficial interests, whether such
organization is taxable or tax-exempt, control means any of the
following relationships:
o ownership of more than 50% of the stock (by voting power or
value) of a corporation,
o ownership of more than 50% of the profits or capital interest
in a partnership,
o ownership of more than 50% of the profits or capital interest
in a limited liability company taxed as a partnership,
regardless of the designation under state law of the ownership
interests as stock, membership interests, or otherwise,
o being a managing partner or managing member in a partnership
or limited liability company which has three or fewer managing
partners or managing members (regardless of which partner or
member has the most actual control),
o being a general partner in a limited partnership which has
three or fewer general partners (regardless of which partner
has the most actual control),
o being the sole member of a disregarded entity, or
o ownership of more than 50% of the beneficial interest in a
trust.
See Regulations sections 301.7701-2, 3, and 4 for more
information on classification of corporations, partnerships,
disregarded entities, and trusts.
Control may be indirect. In other words, if the organization
controls Entity A which in turn controls (under the definition of
control above) Entity B, the organization will be treated as
controlling Entity B. To determine indirect control through
constructive ownership of a corporation, the principles of the rules
under section 318 (relating to constructive ownership of stock) shall
apply for purposes of determining constructive ownership of another
entity (a partnership or trust). If an entity (X) controls an entity
taxed as a partnership by being one of three or fewer partners or
member, then an organization that controls X also controls the
partnership.
controlled entity
An organization controlled by a controlling organization
under section 512(b)(13). For the definition of control in this
context, see section 512(b)(13)(C) and Regulations section
1.512(c)-1(L)(4).
controlling organization under section 512(b)(13)
An exempt organization that controls a controlled entity.
Section 512(b)(13) treats payments of interest, annuity, royalties,
and rent from a controlled entity to a controlling organization as
unrelated business taxable income under certain circumstances. For
the definition of control in this context, see section 512(b)(13)(C).
credit counseling services
Include the providing of information to the general public on
budgeting, personal finance, and saving and spending practices, or
assisting individuals and families with financial problems by
providing them with counseling. See section 501(q)(4)(A).
current year
The tax year for which the Form 990 is being filed; see
also fiscal year.
defeasance escrow
An irrevocable escrow established to redeem the bonds on their
earliest call date in an amount that, together with investment
earnings, is sufficient to pay all the principal of, and interest and
call premiums on, bonds from the date the escrow is established to
the earliest call date. See Regulations section 1.141-12(d)(5).
debt management plan services
Services related to the repayment, consolidation, or
restructuring of a consumer's debt, including the negotiation with
creditors of lower interest rates, the waiver or reduction of fees,
and the marketing and processing of debt management plans. See
section 501(q)(4)(B).
deferred compensation
Compensation that is earned or accrued in, or is
attributable to, one year and deferred to a future year for any
reason, whether or not funded, vested, or subject to a substantial
risk of forfeiture. Deferred compensation may or may not be included
in reportable compensation for the current year.
director
See director or trustee.
director or trustee
A member of the organization's governing body, but
only if the member has any voting rights. A member of an advisory
board that does not exercise any governance authority over the
organization is not considered a director or trustee.
disqualified person
1. For purposes of section 4958; Form 990 Part IX; and Schedule
L, Transactions With Interested Persons, Parts I and II, any person
who was in a position to exercise substantial influence over the
affairs of the applicable tax-exempt organization at any time
during a 5-year period ending on the date of the transaction.
Persons who hold certain powers, responsibilities, or interests are
among those who are in a position to exercise substantial influence
over the affairs of the organization. A disqualified person includes:
o A disqualified person's family member
o A 35% controlled entity of (1) a disqualified person
and/or (2) family members of the disqualified person.
o A donor or donor advisor to a donor advised fund
o An investment advisor of a sponsoring organization
The disqualified persons of a supported
organization include the disqualified persons of a section
509(a)(3) supporting organization that supports the supported
organization.
See Appendix G for more information on disqualified
persons and 4958 excess benefit transactions.
2. For purposes of Form 990 Schedule A, Public Charity Status
and Public Support; section 4946; and section 509(a)(3), a
disqualified person is:
a. A substantial contributor. A substantial contributor is any
person who gave an aggregate amount of more than $5,000, if that
amount is more than 2% of the total contributions the
foundation or organization received from its inception through
the end of the year in which that person's contributions were
received. If the organization is a trust, a substantial
contributor includes the creator of the trust (without regard to
the amount of contributions the trust received from the creator
and related persons).
o Any person who is a substantial contributor at any time
generally remains a substantial contributor for all
future periods even if later contributions by others push
that person's contributions below the 2% figure discussed
above.
o Gifts from the contributor's spouse are treated as gifts
from the contributor.
o Gifts are generally valued at fair market value as of the
date the organization received them.
b. An officer, director, or trustee of the
organization or any individual having powers or responsibilities
similar to those of officers, directors, or trustees.
c. An owner of more than 20% of the voting power of a
corporation, profits interest of a partnership, or beneficial
interest of a trust or an unincorporated enterprise that is a
substantial contributor to the organization.
d. A family member of an individual in the first three
categories.
e. A corporation, partnership, trust, or estate in which persons
described in a through d above own more than 35% of the voting
power, profits interest, or beneficial interest.
For purposes of Form 990 Schedule A, section 4946, and section
509(a)(3), disqualified persons do not include foundation
managers or organizations described in section 509(a)(1) or
509(a)(2)).
disregarded entity/entities
An entity wholly owned by the organization that is not a
separate entity for Federal tax purposes. See Regulations sections
301.7701-2 and -3.
domestic organization
A corporation or partnership is domestic if created or organized
in the U.S. or under the law of the U.S. or of any state or
possession. A trust is domestic if a court within the U.S. or a
U.S. possession is able to exercise primary supervision over
the administration of the trust, and one or more U.S. persons (or
persons in possessions of the U.S.) have the authority to control all
substantial decisions of the trust.
donor advised fund
A fund or account:
1. That is separately identified by reference to
contributions of a donor or donors;
2. That is owned and controlled by a sponsoring
organization; and
3. For which the donor or donor advisor has or reasonably
expects to have advisory privileges in the distribution or
investment of amounts held in the donor advised funds or
accounts because of the donor's status as a donor.
A donor advised fund does not include any fund or account:
1. That makes distributions only to a single identified
organization or governmental entity, or
2. In which a donor or donor advisor gives advice about which
individuals receive grants for travel, study, or other similar
purposes, if:
a. The donor or donor advisor's advisory privileges are
performed exclusively by such person in his or her capacity
as a committee member in which all of the committee members
are appointed by the sponsoring organization;
b. No combination of donors or donor advisors (and related
persons as defined below) directly or indirectly control
the committee; and
c. All grants from the fund or account are awarded on an
objective and nondiscriminatory basis following a
procedure approved in advance by the board of directors of
the sponsoring organization. The procedure must be designed
to ensure that all grants meet the requirements of sections
4945(g)(1), (2), or (3); or
3. That the Secretary exempts from being treated as a donor
advised fund because either such fund or account is advised by a
committee not directly or indirectly controlled by the donor or
donor advisor or such fund benefits a single identified
charitable purpose. For example, see Notice 2006-109, 2006-51
I.R.B. 1121, and any future related guidance.
donor advisor
Any person appointed or designated by a donor to advise a
sponsoring organization on the distribution or investment of
amounts held in the donor's donor advised fund or similar
account.
EIN
Employer identification number, a nine-digit number. Use Form
SS-4 to apply for an EIN.
employee
Any individual who, under the usual common law rules applicable
in determining the employer-employee relationship, has the status of
an employee, and any other individual who is treated as an employee
for federal employment tax purposes under section 3121(d). See Pub.
1779, Independent Contractor or Employee, for more information.
endowment
See term endowment, permanent endowment, and
quasi endowment. See also SFAS 117.
escrow or custodial account
Refers to an account (whether a segregated account at a
financial institution or a set-aside on the organization's books and
records) over which the organization has signature authority, in
which the funds are held for the benefit of other organizations or
individuals, regardless of whether the funds are reported on Part X,
line 21, and regardless of whether the account is labeled as
"escrow account," "custodial account," "trust
account," or some similar term.
excess benefit transaction
In the case of an applicable tax-exempt organization, any
transaction in which an excess benefit is provided by the
organization, directly or indirectly to, or for the use of, any
disqualified person as defined in section 4958. Excess benefit
means the excess of the economic benefit received from the applicable
organization over the consideration given (including services) by a
disqualified person. See Appendix G for more information.
Donor advised fund. For a donor advised fund, an
excess benefit transaction also includes a grant, loan,
compensation, or similar payment from the fund to a:
o Donor or donor advisor
o Family member of a donor, or donor advisor
o 35% controlled entity of a donor, or donor advisor
o 35% controlled entity of a family member of a donor or donor
advisor. The excess benefit in this transaction is the amount
of the grant, loan, compensation, or similar payments.
For additional information see the Instructions for Form 4720.
Supporting organization. For any supporting
organization, defined in section 509(a)(3), an excess benefit
transaction also includes grants, loans, compensation, or
similar payments provided by the supporting organization to a:
o Substantial contributor
o Family member of a substantial contributor
o 35% controlled entity of a substantial contributor
o 35% controlled entity of a family member of a substantial
contributor.
The excess benefit in this transaction is the amount of the
grant, loan, compensation , or similar payments. Additionally,
an excess benefit transaction includes any loans provided by the
supporting organization to a disqualified person (other than an
organization described in section 509(a)(1), (2), or (4)).
For more information, see the Instructions for Form 4720.
exempt bond
See tax-exempt bond.
family member, family relationship
Unless specified otherwise, the family of an individual includes
only his or her spouse, ancestors, brothers and sisters (whether
whole or half blood), children (whether natural or adopted),
grandchildren, great grandchildren, and spouses of brothers, sisters,
children, grandchildren, and great grandchildren.
FIN 48
Financial Accounting Standards Board (FASB) Interpretation No.
48, Accounting for Uncertainty in Income Taxes -- an
interpretation of FASB Statement No. 109. The organization may be
required to provide in Schedule D, Supplemental Financial Statements,
the text of the footnote to its financial statements regarding
the organization's liability for uncertain tax positions under FIN
48.
financial statements
An organization's statements of revenue and expenses and balance
sheet, or similar statements prepared regarding the financial
operations of the organization.
fiscal year
An annual accounting period ending on the last day of a month
other than December. See also tax year and current
year.
foreign government
A governmental agency or entity, or a political subdivision
thereof, that is not classified as a United States agency or
governmental unit, regardless of where it is located or
operated.
foreign individual
A person, including a U.S. citizen or resident, who lives or
resides outside the United States. For purposes of Form 990,
Part IX and Schedule F, Statement of Activities Outside the United
States, a person who lives or resides outside the United States at
the time the person receives a grant is a foreign individual.
foreign organization
A foreign estate or trust, nonprofit or other non-governmental
organization, partnership, corporation, or other business entity that
is not created or organized in the United States or under the
laws of the United States. A foreign organization includes an
affiliate that is organized as a legal entity separate from the
filing organization, but does not include any branch office, account,
or employee of the organization located outside the United
States.
fundraising
See fundraising activities.
fundraising activities
Activities undertaken to induce potential donors to contribute
money, securities, services, materials, facilities, other assets, or
time. They include publicizing and conducting fundraising
campaigns; maintaining donor mailing lists; conducting fundraising
events, preparing and distributing fundraising manuals,
instructions, and other materials; and conducting other activities
involved with soliciting contributions from individuals,
foundations, governments, and others. Fundraising activities do not
include gaming (other than gaming that is incidental to a
fundraising activity) or the conduct of any trade or business that is
regularly carried on.
fundraising events
For purposes of Schedule G, Supplemental Information Regarding
Fundraising or Gaming Activities, fundraising events include
dinners/dances, door-to-door sales of merchandise, concerts,
carnivals, sports events, auctions, and casino nights that are not
regularly carried on. Fundraising events do not include sales of
gifts or goods or services of only nominal value, sweepstakes,
lotteries or raffles where the names of contributors or other
respondents are entered in a drawing for prizes, raffle or lotteries
where prizes have only nominal value or solicitation campaigns that
generate only contributions.
GAAP
See generally accepted accounting principles.
gaming
Includes (but is not limited to): bingo, pull
tabs/instant bingo (including satellite and progressive
bingo), Texas Hold-Em Poker and other card games, raffles,
scratch-offs, charitable gaming tickets, break-opens, hard cards,
banded tickets, jar tickets, pickle cards, Lucky Seven cards, Nevada
Club tickets, casino nights, Las Vegas nights, and coin-operated
gambling devices. Coin-operated gambling devices include slot
machines, electronic video slot or line games, video poker, video
blackjack, video keno, video bingo, video pull tab games, etc.
generally accepted accounting principles
The accounting principles set forth by the Financial Accounting
Standards Board (FASB) and the American Institute of Certified Public
Accountants (AICPA) that guide the work of accountants in reporting
financial information and preparing audited financial
statements for organizations.
governing body
The group of persons authorized under state law to make
governance decisions on behalf of the organization and its
shareholders or members, if applicable. The governing body is,
generally speaking, the board of directors (sometimes referred
to as board of trustees) of a corporation or association, or
the board of trustees of a trust (sometimes referred to simply as the
trustees, or trustee if only one trustee).
government official
A federal, state or local official described within section
4946(c).
governmental issuer
A State or local governmental unit which issues a tax-exempt
bond.
governmental unit
A State, a possession of the United States, a
political subdivision of a State or U.S. possession, the
United States, or the District of Columbia. Section 170(c)(1).
grants and other assistance
Includes awards, prizes, cash allocations, stipends,
scholarships, fellowships, research grants, and similar payments and
distributions made by the organization during the tax year. It does
not include salaries or other compensation to
employees.
gross proceeds
For purposes of Schedule K, Supplemental Information on Tax
Exempt Bonds, generally any sale proceeds, investment
proceeds, transferred proceeds, and replacement proceeds of an issue.
See Regulations section 1.148-1(b),(c).
gross receipts
See Appendix B (How to Determine Whether an Organization's Gross
Receipts Are Normally $25,000 (or $5,000) or Less) and Appendix C,
Speical Test for Determining Exempt Status of Section 501(c)(7) and
501(c)(15) Organizations.
group exemption
Tax exemption of a group of organizations all exempt under the
same Code section, applied for and obtained by a central
organization on behalf of the subordinate organizations
under the central organization's general supervision or control. See
Rev. Proc. 80-27 and Appendix E, Group Returns: Reporting
Information on Behalf of the Group, for more information.
group return
A Form 990 filed by the central organization of a
group exemption for two or more of the subordinate
organizations that are in the group at the close of the central
organization's tax year. See General Instructions and Appendix
E, Group Returns: Reporting Information on Behalf of the Group, for
more information.
highest compensated employee
One of the five highest compensated employees of the
organization (including employees of a disregarded entity of
the organization) other than officers or key employees.
The five highest compensated employees are determined by the amounts
of reportable compensation for the calendar year ending with
or within the organization's tax year.
historical treasure
A building, structure, area, or property (real or personal) with
recognized cultural, aesthetic, or historical value that is
significant in the history, architecture, archeology, or culture of a
country, state, or city.
hospital
For purposes of Schedule H, Hospitals, a hospital is a facility
that is, or is required to be, licensed, registered or similarly
recognized by a state as a hospital. This includes a hospital that is
operated through a disregarded entity or a joint
venture taxed as a partnership. It does not include hospitals
that are located outside the United States. It also does not
include hospitals that are operated by entities organized as separate
legal entities from the organization that are taxable as a
corporation for federal tax purposes (except for members of a
group exemption included in a group return filed by the
organization).
Hospital (or cooperative hospital service organization):
For purposes of Schedule A, Public Charity Status and Public
Support, a hospital (or cooperative hospital service organization)
is an organization whose main purpose is to provide hospital or
medical care. For purposes of Schedule A, a rehabilitation
institution or an outpatient clinic may 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, conv