Instructions for Form 990-PF

Transcription

1 2003 Instructions for Form 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation Section references are to the Internal Revenue Code unless otherwise noted. Department of the Treasury Internal Revenue Service Contents Page Contents Page THE-LOST ( ) if you General Instructions Part V Qualification Under recognize a child. A. Who Must File... 2 Section 4940(e) for Reduced B. Which Parts To Complete... 2 Tax on Net Investment Income Phone Help C. Definitions... 2 Part VI Excise Tax Based on If you have questions and/or need help D. Other Forms You May Need Investment Income completing this form, please call To File... 3 Part VII-A Statements This toll-free telephone E. Useful Publications... 4 Regarding Activities service is available Monday through F. Use of Form 990-PF To Part VII-B Activities for Which Friday from 8:00 a.m. to 6:30 p.m. Satisfy State Reporting Form 4720 May Be Required Eastern time. Requirements... 4 Part VIII Information About G. Furnishing Copies of Form Officers, Directors, Trustees, How To Get Forms and 990-PF to State Officials... 4 etc Publications H. Accounting Period... 4 Part IX-A Summary of Direct I. Accounting Methods... 4 Charitable Activities Personal Computer J. When and Where To File... 5 Part IX-B Summary of You can access the IRS Web Site 24 K. Extension of Time To File... 5 Program-Related Investments hours a day, 7 days a week at L. Amended Return... 5 Part X Minimum Investment to: M. Penalty for Failure To File Return Download forms, instructions, and Timely, Completely, or Part XI Distributable Amount publications. Correctly... 5 Order IRS products online. Part XII Qualifying N. Penalties for Not Paying Tax See answers to frequently asked tax Distributions questions. on Time... 5 Part XIII Undistributed Income Search publications online by topic or O. Figuring and Paying Part XIV Private Operating keyword. Estimated Tax... 5 Foundations Send us comments or request help via P. Tax Payment Methods for Part XV Supplementary . Domestic Private Foundations Information Sign up to receive local and national Q. Public Inspection Part XVI-A Analysis of tax news by . Requirements... 6 Income-Producing Activities You can also reach us using file R. Disclosures Regarding transfer protocol at ftp.irs.gov. Part XVI-B Relationship of Certain Information and Activities to the Services Furnished... 8 CD-ROM Accomplishment of Exempt S. Organizations Organized or Order Pub. 1796, Federal Tax Products Purposes Created in a Foreign Country on CD-ROM, and get: Part XVII Information or U.S. Possession... 8 Current year forms, instructions, and Regarding Transfers To and publications. T. Liquidation, Dissolution, Transactions and Prior year forms, instructions, and Termination, or Substantial Relationships With publications. Contraction... 9 Noncharitable Exempt Frequently requested tax forms that U. Filing Requirements During Organizations may be filled in electronically, printed out Section 507(b)(1)(B) Signature for submission, and saved for Termination... 9 Paperwork Reduction Act Notice recordkeeping. V. Special Rules for Section The Internal Revenue Bulletin. 507(b)(1)(B) Terminations... 9 Exclusion Codes Buy the CD-ROM on the Internet at W. Rounding, Currency, and Index from the National Attachments... 9 Technical Information Service (NTIS) for Specific Instructions Photographs of Missing $22 (no handling fee), or call Completing the Heading CDFORMS ( ) toll Children Part I Analysis of Revenue and free to buy the CD-ROM for $22 (plus a The Internal Revenue Service is a proud $5 handling fee). Expenses partner with the National Center for Part II Balance Sheets Missing and Exploited Children. By Phone and In Person Part III Analysis of Changes in Photographs of missing children selected You can order forms and publications 24 Net Assets or Fund Balances by the Center may appear in instructions hours a day, 7 days a week, by calling Part IV Capital Gains and on pages that would otherwise be blank TAX-FORM ( ). You Losses for Tax on Investment You can help bring these children home can also get most forms and publications Income by looking at the photographs and calling at your local IRS office. Cat. No Y

2 Part II, column (c), with the exception A nonexempt charitable trust treated General Instructions of line 16, applies only to organizations as a private foundation is a trust that is Purpose of form. Form 990-PF is used: having at least $5,000 in assets per not exempt from tax under section 501(a) To figure the tax based on investment books at some time during the year. Line and all of the unexpired interests of which income, and 16, column (c), applies to all filers. are devoted to religious, charitable, or To report charitable distributions and Part IV does not apply to foreign other purposes described in section activities. organizations. 170(c)(2)(B), and for which a deduction Also, Form 990-PF serves as a Parts V and VI do not apply to was allowed under a section of the Code substitute for the section 4947(a)(1) organizations making an election under listed in section 4947(a)(1). nonexempt charitable trust s income tax section 41(e). A taxable private foundation is an return, Form 1041, U.S. Income Tax Part X does not apply to foreign organization that is no longer exempt Return for Estates and Trusts, when the foundations that check box D2 on page 1 under section 501(a) as an organization trust has no taxable income. of Form 990-PF unless they claim status described in section 501(c)(3). Though it as a private operating foundation. may operate as a taxable entity, it will A. Who Must File Parts XI and XIII do not apply to continue to be treated as a private Form 990-PF is an annual information foreign foundations that check box D2 on foundation until that status is terminated return that must be filed by: page 1 of Form 990-PF. However, check under section 507. Exempt private foundations (section the box at the top of Part XI. Part XI does A private operating foundation is an 6033(a), (b), and (c)). not apply to private operating foundations. organization that is described under Taxable private foundations (section Also, if the organization is a private section 4942(j)(3) or (5). It means any 6033(d)). operating foundation for any of the years private foundation that spends at least Organizations that agree to private shown in Part XIII, do not complete the 85% of the smaller of its adjusted net foundation status and whose applications portions that apply to those years. income (figured in Part I) or its minimum for exempt status are pending on the due Part XIV applies only to private investment return (figured in Part X) date for filing Form 990-PF. operating foundations. directly for the active conduct of the Organizations that made an election Part XV applies only to organizations exempt purpose or functions for which the under section 41(e)(6). having assets of $5,000 or more during foundation is organized and operated and Organizations that are making a the year. This part does not apply to that also meets the assets test, the section 507 termination. certain foreign organizations. endowment test, or the support test Section 4947(a)(1) nonexempt How to avoid filing an incomplete (discussed in Part XIV). charitable trusts that are treated as return. A nonoperating private foundation is private foundations (section 6033(d)). Complete all applicable line items, a private foundation that is not a private Answer Yes, No, or N/A (not operating foundation. Note: Include on the foundation s return applicable) to each question on the A foundation manager is an officer, the financial and other information of any return, director, or trustee of a foundation, or an disregarded entity owned by the Make an entry (including a zero when individual who has powers similar to foundation. See Regulations sections appropriate) on all total lines, and those of officers, directors, or trustees. In through 3 for information on Enter None or N/A if an entire part the case of any act or failure to act, the the classification of certain business does not apply. term foundation manager may also organizations including an eligible entity include employees of the foundation who that is disregarded as an entity separate Sequencing Chart To Complete have the authority to act. from its owner (disregarded entity). the Form A disqualified person is: Other section 4947(a)(1) nonexempt You may find the following chart helpful. It 1. A substantial contributor (see charitable trusts. Section 4947(a)(1) limits jumping from one part of the form to instructions for Part VII-A, line 10, on nonexempt charitable trusts that are not another to compute an amount needed to page 19); treated as private foundations do not file complete an earlier part. If you complete 2. A foundation manager; Form 990-PF. However, they may need to the parts in the listed order, any 3. A person who owns more than 20% file Form 990, Return of Organization information you may need from another of a corporation, partnership, trust, or Exempt From Income Tax, or Form part will already be entered. unincorporated enterprise that is itself a 990-EZ, Short Form Return of substantial contributor; Organization Exempt From Income Tax. Step Part Step Part 4. A family member of an individual With either of these forms, the trust must described in 1, 2, or 3 above; or 1... IV 8... XII, lines 1 4 also file Schedule A (Form 990 or 5. A corporation, partnership, trust, or 2... I & II 9... V & VI 990-EZ), Organization Exempt Under 3... Heading XII, lines 5 6 estate in which persons described in 1, 2, Section 501(c)(3) (Except Private 4... III XI 3, or 4 above own a total beneficial 5... VII-A XIII Foundation), and Section 501(e), 501(f), interest of more than 35% VIII VII-B 501(k), 501(n), or Section 4947(a)(1) 7... IX-A X XIV XVII 6. For purposes of section 4941 Nonexempt Charitable Trust (self-dealing), a disqualified person also Supplementary Information. (See Form includes certain government officials. 990 and Form 990-EZ instructions.) C. Definitions (See section 4946(c) and the related A private foundation is a domestic or regulations.) B. Which Parts To foreign organization exempt from income 7. For purposes of section 4943 tax under section 501(a); described in (excess business holdings), a disqualified Complete section 501(c)(3); and is other than an person also includes: The parts of the form listed below do not organization described in sections a. A private foundation that is apply to all filers. See How to avoid 509(a)(1) through (4). effectively controlled (directly or indirectly) filing an incomplete return on this page In general, churches, hospitals, by the same persons who control the for information on what to do if a part or schools, and broadly publicly supported private foundation in question or an item does apply. organizations are excluded from private b. A private foundation to which Part I, column (c), applies only to foundation status by these sections. substantially all of the contributions were private operating foundations and to These organizations may be required to made (directly or indirectly) by one or nonoperating private foundations that file Form 990 (or Form 990-EZ) instead of more of the persons described in 1, 2, have income from charitable activities. Form 990-PF. and 3 above, or members of their -2- Form 990-PF Instructions

3 families, within the meaning of section Investment Income for Private Revenue Code, is primarily used to 4946(d). Foundations). determine the excise taxes imposed on: An organization is controlled by a Form 1041, U.S. Income Tax Return for acts of self-dealing between private foundation or by one or more disqualified Estates and Trusts. Required of section foundations and disqualified persons; persons with respect to the foundation if 4947(a)(1) nonexempt charitable trusts failure to distribute income; excess any of these persons may, by combining that also file Form 990-PF. However, if business holdings; investments that their votes or positions of authority, the trust does not have any taxable jeopardize the foundation s charitable require the organization to make an income under the income tax provisions purposes; and making political or other expenditure or prevent the organization (subtitle A of the Code), it may use the noncharitable expenditures. Certain from making an expenditure, regardless filing of Form 990-PF to satisfy its Form excise taxes and penalties also apply to of the method of control. Control is 1041 filing requirement under section foundation managers, substantial determined regardless of how the If this condition is met, check the contributors, and certain related persons foundation requires the contribution to be box for question 13, Part VII-A, of Form and are reported on this form. used. 990-PF and do not file Form Form 5500, Annual Return/Report of Form 1041-ES, Estimated Income Tax Employee Benefit Plan is used to report D. Other Forms You May for Estates and Trusts. information concerning employee benefit Need To File Form 1096, Annual Summary and plans and Direct Filing Entities. Form W-2, Wage and Tax Statement. Transmittal of U.S. Information Returns. Form 8109, Federal Tax Deposit Forms 1099-INT, MISC, OID, and R, Coupon. Form W-3, Transmittal of Wage and Tax Statements. Information returns for reporting certain Form 8282, Donee Information Return. interest; miscellaneous income (e.g., Form 941, Employer s Quarterly Federal Required of the donee of charitable payments to providers of health and Tax Return. Used to report social deduction property that sells, exchanges, medical services, miscellaneous income security, Medicare, and income taxes or otherwise disposes of the property payments, and nonemployee withheld by an employer and social within 2 years after the date it received compensation); original issue discount; security and Medicare taxes paid by an the property. and distributions from retirement or employer. profit-sharing plans, IRAs, SEPs or Also required of any successor donee If income, social security, and SIMPLEs, and insurance contracts. that disposes of charitable deduction Medicare taxes that must be withheld are property within 2 years after the date that Form 1120, U.S. Corporation Income not withheld or are not paid to the IRS, a the donor gave the property to the original Tax Return. Filed by nonexempt taxable Trust Fund Recovery Penalty may apply. donee. (It does not matter who gave the private foundations that have taxable The penalty is 100% of such unpaid property to the successor donee. It may income under the income tax provisions taxes. have been the original donee or another (subtitle A of the Code). The Form This penalty may be imposed on all successor donee.) For successor donees, 990-PF annual information return is also persons (including volunteers, see below) the form must be filed only for any filed by these taxable foundations. whom the IRS determines to be property that was transferred by the Form 1120-POL, U.S. Income Tax responsible for collecting, accounting for, original donee after July 5, Return for Certain Political Organizations. and paying over these taxes, and who Section 501(c) organizations must file Form 8275, Disclosure Statement. willfully did not do so. Form 1120-POL if they are treated as Taxpayers and tax return preparers This penalty does not apply to any having political organization taxable should attach this form to Form 990-PF to volunteer, unpaid member of any board of income under section 527(f)(1). disclose items or positions (except those trustees or directors of a tax-exempt contrary to a regulation see Form Form 1128, Application To Adopt, organization, if this member: 8275-R below) that are not otherwise Change, or Retain a Tax Year. 1. Is solely serving in an honorary adequately disclosed on the tax return. Form 2220, Underpayment of Estimated capacity, The disclosure is made to avoid parts of Tax by Corporations, is used by 2. Does not participate in the the accuracy-related penalty imposed for corporations and trusts filing Form day-to-day or financial activities of the disregard of rules or substantial 990-PF to see if the foundation owes a organization, and understatement of tax. Form 8275 is also penalty and to figure the amount of the 3. Does not have actual knowledge of used for disclosures relating to preparer penalty. Generally, the foundation is not the failure to collect, account for, and pay penalties for understatements due to required to file this form because the IRS over these taxes. unrealistic positions or for willful or can figure the amount of any penalty and reckless conduct. However, this exception does not apply if bill the foundation for it. However, it results in no person being liable for the complete and attach Form 2220 even if Form 8275-R, Regulation Disclosure penalty. the foundation does not owe the penalty Statement. Use this form to disclose any if: item on a tax return for which a position Form 990-T, Exempt Organization The annualized income or the adjusted has been taken that is contrary to Business Income Tax Return. Every seasonal installment method is used, or Treasury regulations. organization exempt from income tax under section 501(a) that has total gross The foundation is a large Form 8300, Report of Cash Payments income of $1,000 or more from all trades organization, (see General Instruction O) Over $10,000 Received in a Trade or or businesses that are unrelated to the computing its first required installment Business. Used to report cash amounts in organization s exempt purpose must file a based on the prior year s tax. excess of $10,000 that were received in a return on Form 990-T. The form is also If Form 2220 is attached, check the single transaction (or in two or more used by tax-exempt organizations to box on line 8, Part VI, on page 4 of Form related transactions) in the course of a report other additional taxes including the 990-PF and enter the amount of any trade or business (as defined in additional tax figured in Part IV of Form penalty on this line. section 162). 8621, Return by a Shareholder of a Form 4506-A, Request for Public Form 8718, User Fee for Exempt Passive Foreign Investment Company or Inspection or Copy of Exempt or Political Organization Determination Letter Qualified Electing Fund. Organization IRS Form. Request. Used by a private foundation Form 990-W, Estimated Tax on Form 4720, Return of Certain Excise that has completed a section 507 Unrelated Business Taxable Income for Taxes on Charities and Other Persons termination and seeks a determination Tax-Exempt Organizations (and on Under Chapters 41 and 42 of the Internal letter that it is now a public charity. Form 990-PF Instructions -3-

4 Form 8822, Change of Address. limitations that may not meet some state Exceptions. These rules do not apply to Form 8868, Application for Extension of requirements are the $5,000 total assets any foreign foundation which, from the Time To File an Exempt Organization minimum that requires completion of Part date of its creation, has received at least Return. II, column (c), and Part XV; and the 85% of its support (excluding gross $50,000 minimum for listing the highest investment income) from sources outside Form 8870, Information Return for paid employees and for listing the United States. (See General Transfers Associated With Certain professional fees in Part VIII. Instruction S for other exceptions that Personal Benefit Contracts. Used to Additional information may be affect this type of organization.) identify those personal benefit contracts for which funds were transferred to the required. State and local filing Coordination with state reporting organization, directly or indirectly, as well requirements may require attaching to requirements. If the foundation as the transferors and beneficiaries of Form 990-PF one or more of the managers submit a copy of Form 990-PF those contracts. following: and Form 4720 (if applicable) to a state Additional financial statements, such as attorney general to satisfy a state E. Useful Publications a complete analysis of functional reporting requirement, they do not have to The following publications may be helpful expenses or a statement of changes in furnish a second copy to that attorney in preparing Form 990-PF: net assets, general to comply with the Internal Notes to financial statements, Publication 525, Taxable and Revenue Code requirements discussed in Additional financial schedules, Nontaxable Income. this section. A report on the financial statements by Publication 578, Tax Information for an independent accountant, and If there is a state reporting requirement Private Foundations and Foundation Answers to additional questions and to file a copy of Form 990-PF with a state Managers. other information. official other than the attorney general Publication 583, Starting a Business Each jurisdiction may require the (such as the secretary of state), then the and Keeping Records. additional material to be presented on foundation managers must also send a Publication 598, Tax on Unrelated forms they provide. The additional copy of the Form 990-PF and Form 4720 Business Income of Exempt information does not have to be submitted (if applicable) to the attorney general of Organizations. with the Form 990-PF filed with the IRS. that state. Publication 910, Guide to Free Tax If required information is not provided Services. to a state, the organization may be asked H. Accounting Period Publication 1771, Charitable by the state to provide it or to submit an 1. File the 2003 return for the Contributions Substantiation and amended return, even if the Form 990-PF calendar year 2003 or fiscal year Disclosure Requirements. is accepted by the IRS as complete. beginning in If the return is for a Publications and forms are available at Amended returns. If the organization fiscal year, fill in the tax year space at the no charge through IRS offices or by submits supplemental information or files top of the return. calling TAX-FORM an amended Form 990-PF with the IRS, it 2. The return must be filed on the ( ). must also include a copy of the basis of the established annual information or amended return to any accounting period of the organization. If F. Use of Form 990-PF To state with which it filed a copy of Form the organization has no established 990-PF. accounting period, the return should be Satisfy State Reporting Method of accounting. Many states on the calendar-year basis. Requirements require that all amounts be reported 3. For initial or final returns or a based on the accrual method of change in accounting period, the 2003 Some states and local government units accounting. form may also be used as the return for a will accept a copy of Form 990-PF and short period (less than 12 months) ending required attachments instead of all or part Time for filing may differ. The time for November 30, 2004, or earlier. of their own financial report forms. filing Form 990-PF with the IRS may differ If the organization plans to use Form from the time for filing state reports. In general, to change its accounting 990-PF to satisfy state or local filing period the organization must file Form G. Furnishing Copies of 990-PF by the due date for the short requirements, such as those from state period resulting from the change. At the charitable solicitation acts, note the Form 990-PF to State top of this short period return, write following: Determine state filing requirements. Officials Change of Accounting Period. Consult the appropriate officials of all The foundation managers must furnish a If the organization changed its states and other jurisdictions in which the copy of the annual return Form 990-PF accounting period within the organization does business to determine (and Form 4720 (if applicable)) to the 10-calendar-year period that includes the their specific filing requirements. Doing attorney general of: beginning of the short period, and it had a business in a jurisdiction may include 1. Each state required to be listed in Form 990-PF filing requirement at any any of the following: Part VII-A, line 8a, time during that 10-year period, it must Soliciting contributions or grants by 2. The state in which the foundation s also attach a Form 1128 to the mail or otherwise from individuals, principal office is located, and short-period return. See Rev. Proc , businesses, or other charitable 3. The state in which the foundation C.B organizations, was incorporated or created. Conducting programs, A copy of the annual return must be I. Accounting Methods Having employees within that jurisdiction, or sent to the attorney general at the same Generally, you should report the financial Maintaining a checking account or time the annual return is filed with the information requested on the basis of the owning or renting property there. IRS. accounting method the foundation regularly uses to keep its books and Monetary tests may differ. Some or all Other requirements. If the attorney records. of the dollar limitations that apply to Form general or other appropriate state official 990-PF when filed with the IRS may not of any state requests a copy of the annual Exception. Complete Part I, column (d) apply when using Form 990-PF instead of return, the foundation managers must on the cash receipts and disbursements state or local report forms. IRS dollar give them a copy of the annual return. method of accounting. -4- Form 990-PF Instructions

5 J. When and Where To File M. Penalty for Failure To This return must be filed by the 15th day File Timely, Completely, or waived. However, interest is charged on of the 5th month following the close of the Correctly any tax not paid on time, at the rate foundation s accounting period. If the tax. If there was reasonable cause for not paying the tax on time, the penalty can be regular due date falls on a Saturday, provided by section To avoid filing an incomplete return or Sunday, or legal holiday, file by the next having to respond to requests for missing Estimated tax penalty. The section business day. If the return is filed late, information, see General Instruction B penalty for failure to pay estimated see General Instruction M. Against the organization. If an tax applies to the tax on net investment organization does not file timely and income of domestic private foundations In case of a complete liquidation, completely, or does not furnish the correct and section 4947(a)(1) nonexempt dissolution, or termination, file the return information, it must pay $20 for each day charitable trusts. The penalty also applies by the 15th day of the 5th month following the failure continues ($100 a day if it is a to any tax on unrelated business income complete liquidation, dissolution, or large organization), unless it can show of a private foundation. Generally, if a termination. that the failure was due to reasonable private foundation s tax liability is $500 or cause. Those filing late (after the due more and it did not make the required To file the return, mail or deliver it to: date, including extensions) must attach payments on time, then it is subject to the an explanation to the return. The penalty. Internal Revenue Service Center maximum penalty for each return will not Ogden, UT For more details, see the discussion exceed the smaller of $10,000 ($50,000 of Form 2220 in General Instruction D. for a large organization) or 5% of the K. Extension of Time To gross receipts of the organization for the year. O. Figuring and Paying File Large organization. A large Estimated Tax A foundation uses Form 8868 to request organization is one that has gross A domestic exempt private foundation, a an automatic or additional extension of receipts exceeding $1 million for the tax domestic taxable private foundation, or a time to file its return. year. nonexempt charitable trust treated as a Gross receipts. Gross receipts private foundation must make estimated An automatic 3-month extension will means the gross amount received during tax payments for the excise tax based on be granted if you properly complete this the foundation s annual accounting period investment income if it can expect its form, file it, and pay any balance due by from all sources without reduction for any estimated tax (section 4940 tax minus the due date for Form 990-PF. costs or expenses. allowable credits) to be $500 or more. To figure the foundation s gross The number of installment payments it If more time is needed, Form 8868 is receipts, start with Part I, line 12, column must make under the depository method also used to request an additional (a), then add to it lines 6b and 10b, then is determined at the time during the year extension of up to 3 months. However, subtract line 6a from that amount. that it first meets this requirement. For these extensions are not automatically Against the responsible person. The calendar-year taxpayers, the first deposit granted. To obtain this additional IRS will make written demand that the of estimated taxes for a year generally extension of time to file, you must show delinquent return be filed or the should be made by May 15 of the year. reasonable cause for the additional time information furnished within a reasonable Although Form 990-W is used primarily requested. time after the mailing of the notice of the to compute the installment payments of demand. The person failing to comply unrelated business income tax, it is also with the demand on or before the date L. Amended Return used to determine the timing and specified will have to pay $10 for each amounts of installment payments of the To change the organization s return for day the failure continues, unless there is section 4940 tax based on investment any year, file an amended return, reasonable cause. The maximum penalty income. Compute separately any required including attachments, with the correct imposed on all persons for any one return deposits of excise tax based on information. The amended return must is $5,000. If more than one person is investment income and unrelated provide all the information required by the liable for any failures, all such persons business income tax. form and instructions, not just the new or are jointly and severally liable for such corrected information. Check the failures (see section 6652(c)). To figure the estimated tax for the Amended Return box in G at the top of Other penalties. Because this return excise tax based on investment income, the return. See the instructions for line 9 also satisfies the filing requirements of a apply the rules of Part VI to your tax year of Part VI on page 18. tax return under section 6011 for the tax 2004 estimated amounts for that part. on investment income imposed by section Enter the tax you figured on line 10a of If the organization files an amended 4940 (or 4948 if an exempt foreign Form 990-W. return to claim a refund of tax paid under organization), the penalties imposed by section 4940 or 4948, it must file the section 6651 for not filing a return (without The Form 990-W line items and amended return within 3 years after the reasonable cause) also apply. instructions for large organizations also date the original return was due or filed, apply to private foundations. For There are also criminal penalties for or within 2 years from the date the tax purposes of paying the estimated tax on willful failure to file and for filing fraudulent was paid, whichever date is later. net investment income, a large returns and statements. See sections organization is one that had net 7203, 7206, and investment income of $1 million or more State reporting requirements. See for any of the 3 tax years immediately Amended returns under General N. Penalties for Not Paying preceding the tax year involved. Instruction F. Tax on Time Need a copy of an old return or form? Use Form 4506-A to obtain a copy of a previously filed return. You can obtain blank forms for prior years by calling TAX-FORM ( ). Form 990-PF Instructions There is a penalty for not paying tax when due (section 6651). The penalty generally is 1 /2 of 1% of the unpaid tax for each month or part of a month the tax remains unpaid, not to exceed 25% of the unpaid -5- Penalty. A foundation that does not pay the proper estimated tax when due may be subject to the estimated tax penalty for the period of the underpayment. (See sections 6655(b) and (d) and the Form 2220 instructions.)

6 Special Rules Do not send deposits directly to an IRS All documents and statements the IRS office; otherwise, the foundation may requires an applicant to file with the form, Section 4947(a)(1) nonexempt have to pay a penalty. Mail or deliver the Any statement or other supporting charitable trusts should use Form completed Form 8109 with the payment document submitted in support of the 1041-ES for paying any estimated tax on to an authorized depositary, i.e., a application, and income subject to tax under section 1. commercial bank or other financial Any letter or other document issued by Form 1041-ES also contains the institution authorized to accept Federal the IRS concerning the application. estimated tax rules for paying the tax on tax deposits. An application for tax exemption does that income. Make checks or money orders payable not include: Taxable private foundations should use to the depositary. To help ensure proper Any application for tax exemption filed Form 1120-W for figuring any estimated crediting, write the foundation s EIN, the before July 15, 1987, unless the private tax on income subject to tax under tax period to which the deposit applies, foundation filing the application had a section 11. Form 1120-W contains the and Form 990-PF on the check or copy of the application on July 15, 1987, estimated tax rules for paying the tax on money order. Be sure to darken the or that income. 990-PF box on the coupon. Records of Any material that is not available for these deposits will be sent to the IRS. public inspection under section P. Tax Payment Methods For more information on deposits, see Who Must Make the Annual for Domestic Private the instructions in the coupon booklet Returns and Exemption (Form 8109) and Pub. 583, Starting a Foundations Application Available for Public Business and Keeping Records. Inspection? Whether the foundation uses the Special Payment Option for depository method of tax payment or the The foundation s annual returns and Small Foundations special option for small foundations, it exemption application must be made must pay the tax due (see Part VI) in full A private foundation may enclose a check available to the public by the private by the 15th day of the 5th month after the or money order, payable to the United foundation itself and by the IRS. end of its tax year. States Treasury, with the Form 990-PF or Form 8868, if it meets all of the following How Does a Private Foundation Depository Method of Tax requirements. Make Its Annual Returns and Payment 1. The foundation must not be Exemption Application Some foundations (described below) are required to use EFTPS. Available for Public Inspection? required to electronically deposit all 2. The tax based on investment A private foundation must make its annual depository taxes, including their tax income shown on line 5, Part VI of Form returns and exemption application payments for the excise tax based on 990-PF is less than $500. available in 2 ways: investment income. 3. If Form 8868 is used, the amount 1. By office visitation and entered on line 3a of Part I or line 8a of 2. By providing copies or making them Electronic Deposit Requirement Part II of Form 8868 must be less than widely available. The foundation must make electronic $500 and it must be the full balance due. deposits of all depository taxes (such as Be sure to write 2003 Form 990-PF Public Inspection by Office employment tax or the excise tax based and the foundation s name, address, and on investment income) using the Visitation EIN on its check or money order. Electronic Federal Tax Payment System A private foundation must make its annual (EFTPS) in 2004 if: Foreign organizations should see returns and exemption application The total deposits of such taxes in! the instructions for Part VI, line 9. available for public inspection without CAUTION 2002 were more than $200,000 or charge at its principal, regional, and The foundation was required to use district offices during regular business EFTPS in Q. Public Inspection hours. If the foundation is required to use Conditions that may be set for public EFTPS and fails to do so, it may be Requirements inspection at the office. A private subject to a 10% penalty. If the foundation A private foundation must make its annual foundation: is not required to use EFTPS, it may returns and exemption application May have an employee present, participate voluntarily. To enroll in or get available for public inspection. Must allow the individual conducting more information about EFTPS, call Definitions the inspection to take notes freely during or To the inspection, and enroll online, visit Annual returns. An annual return is an Must allow an individual to make photo Depositing on time. For deposits made exact copy of the Form 990-PF that was copies of documents at no charge but by EFTPS to be on time, the foundation filed with the IRS including all schedules, only if the individual brings photocopying must initiate the transaction at least 1 attachments, and supporting documents. equipment to the place of inspection. business day before the date the deposit It also includes any amendments to the original return (amended return). Determining if a site is a regional or is due. district office. A regional or district office By annual returns, we mean any is any office of a private foundation, other Deposits With Form 8109 annual return (defined above) that is not than its principal office, that has paid If the foundation does not use EFTPS, more than 3 years old from the later of: employees whose total number of paid deposit estimated tax payments and any 1. The date the return is required to hours a week are normally 120 hours or balance due for the excise tax based on be filed (including extensions) or more. Include the hours worked by investment income with Form 8109, 2. The date that the return is actually part-time (as well as full-time) employees Federal Tax Deposit Coupon. If you do filed. in making that determination. not have a preprinted Form 8109, use Form 8109-B to make deposits. You can Exemption application is an application What sites are not considered a get this form only by calling for tax exemption and includes (except as regional or district office. A site is not Be sure to have your described later): considered a regional or district office if: employer identification number (EIN) Any prescribed application form (such 1. The only services provided at the ready when you call. as Form 1023 or Form 1024), site further the foundations exempt -6- Form 990-PF Instructions

7 purposes (e.g., day care, health care, or Examples of unusual circumstances Requested documents can be ed scientific or medical research) and include: instead of the traditional method of 2. The site does not serve as an office Receipt of a volume of requests (for mailing if the requester consents to this for management staff, other than document copies) that exceeds the method. managers who are involved only in private foundations daily capacity to make A document copy is considered as managing the exempt function activities at copies, provided on the: the site. Requests received shortly before the Postmark date, end of regular business hours that require Private delivery date, What if the private foundation does not an extensive amount of copying, or Registration date for certified or maintain a permanent office? If the Requests received on a day when the registered mail, private foundation does not maintain a organization s managerial staff capable of Postmark date on the sender s receipt permanent office, it will comply with the fulfilling the request is conducting official for certified or registered mail, or public inspection by office visitation duties (e.g., student registration or Day the is successfully requirement by making the annual returns attending an off-site meeting or transmitted (if the requester agreed to this and exemption application available at a convention) instead of its regular method). reasonable location of its choice. It must administrative duties. Requests for parts of a document permit public inspection: Use of local agents for providing copy. A person can request all or any Within a reasonable amount of time copies. A private foundation may use a specific part or schedule of the annual after receiving a request for inspection local agent to handle in-person requests returns or exemption application and the (normally, not more than 2 weeks) and for document copies. If a private private foundation must fulfill their request At a reasonable time of day. foundation uses a local agent, it must for a copy. Optional method of complying. If a private foundation that does not have a immediately provide the local agent s Can an agent be used to provide permanent office wishes not to allow an name, address, and telephone number to copies? A private foundation can use an inspection by office visitation, it may mail the requester. agent to provide document copies for the a copy of the requested documents written requests it receives. However, the The local agent must: instead of allowing an inspection. agent must provide the document copies Be located within reasonable proximity However, it must mail the documents under the same conditions that are to the principal, regional, or district office within 2 weeks of receiving the request imposed on the private foundation itself. where the individual makes the request and may charge for copying and postage Also, if an agent fails to provide the and only if the requester consents to the documents as required, the private Provide document copies within the charge. foundation will continue to be subject to same time frames as the private penalties. Private foundations with a foundation. permanent office but limited or no Example. The ABC Foundation hours. Even if a private foundation has a Written requests for document copies. retained an agent to provide copies for all permanent office but no office hours or If a private foundation receives a written written requests for documents. However, very limited hours during certain times of request for a copy of its annual returns or ABC Foundation received a request for the year, it must still meet the office exemption application (or parts of these document copies before the agent did. visitation requirement. During those documents), it must give a copy to the The deadline for providing a response periods when office hours are limited or requester. However, this rule only applies is referenced by the date that the ABC not available, follow the rules above if the request: Foundation received the request and not under What if the private foundation Is addressed to a private foundation s when the agent received it. If the agent does not maintain a permanent office? principal, regional, or district office, received the request first, then a to meet this requirement. Is delivered to that address by mail, response would be referenced to the date electronic mail ( ), facsimile (fax), or that the agent received it. Public Inspection Providing a private delivery service approved by the Can a fee be charged for providing Copies IRS (see Where To File in the copies? A private foundation may A private foundation must provide copies Instructions for Form 990-T for a list), and charge a reasonable fee for providing of its annual returns or exemption Gives the address to which the copies. Also, it can require the fee to be application to any individual who makes a document copies should be sent. paid before providing a copy of the request for a copy in person or in writing How and when a written request is requested document. unless it makes these documents widely fulfilled. available. What is a reasonable fee? A fee is Requested document copies must be reasonable only if it is no more than the In-person requests for document mailed within 30 days from the date the per-page copying fee charged by the IRS copies. A private foundation must private foundation receives the request. for providing copies, plus no more than provide copies to any individual who Unless other evidence exists, a request the actual postage costs incurred to makes a request in person at the private or payment that is mailed is considered to provide the copies. foundation s principal, regional, or district be received by the private foundation 7 offices during regular business hours on What forms of payment must the days after the postmark date. the same day that the individual makes private foundation accept? The form of If an advance payment is required, the request. payment depends on whether the request copies must be provided within 30 days for copies is made in person or in writing. Accepted delay in fulfilling an from the date payment is received. in-person request. If unusual If the private foundation requires Cash and money order must be circumstances exist and fulfilling a payment in advance and it receives a accepted for in-person requests for request on the same day places an request without payment or with document copies. The private foundation, unreasonable burden on the private insufficient payment, it must notify the if it wishes, may accept additional forms foundation, it must provide copies by the requester of the prepayment policy and of payment. earlier of: the amount due within 7 days from the Certified check, money order, and The next business day following the date it receives the request. either personal check or credit card must day that the unusual circumstances end A request that is transmitted to the be accepted for written requests for or private foundation by or fax is document copies. The private foundation, The fifth business day after the date of considered received the day the request if it wishes, may accept additional forms the request. is transmitted successfully. of payment. Form 990-PF Instructions -7-

8 Other fee information. If a private After it is downloaded and viewed, To request a copy or to inspect an foundation provides a requester with the web document exactly reproduces annual return or an approved exemption notice of a fee and the requester does not the image of the annual returns or application, complete Form 4506-A. pay the fee within 30 days, it may ignore exemption application as it was originally Generally, there is a charge for the request. filed with the IRS, except for any photocopying. If a requester s check does not clear information permitted by statute to be Also, the IRS can provide a complete on deposit, it may ignore the request. withheld from public disclosure; and set of Form 990-PF returns filed for a year Any individual with access to the If a private foundation does not require on CD-ROM. A partial set of Form 990-PF Internet can access, download, view, and prepayment and the requester does not returns filed by state or by month is also print the document without special prepay, the private foundation must available. Call or write to computer hardware or software required receive consent from the requester if the the address below for details. for that format (except software that is copying and postage charge Internal Revenue Service readily available to members of the public exceeds $20. TE/GE Customer Account Services without payment of any fee) and without P.O. Box 2508 Private foundations subject to a payment of a fee to the private foundation Cincinnati, OH harassment campaign. If the IRS or to another entity maintaining the web determines that a private foundation is page. being harassed, it is not required to 3. Reliability and accuracy R. Disclosures Regarding comply with any request for copies that it requirements To meet this, the entity Certain Information and reasonably believes is part of the maintaining the World Wide Web page harassment campaign. must: Services Furnished A group of requests for a private Have procedures for ensuring the A section 501(c) organization that offers foundation s annual returns or exemption reliability and accuracy of the document to sell or solicits money for specific application is indicative of a harassment that it posts on the page; information or a routine service to any campaign if the requests are part of a Take reasonable precautions to individual that could be obtained by the single coordinated effort to disrupt the prevent alteration, destruction, or individual from a Federal Government operations of the private foundation rather accidental loss of the document when agency free or for a nominal charge must than to collect information about it. posted on its page; and disclose that fact conspicuously when Correct or replace the document if a making such offer or solicitation. See Regulations section posted document is altered, destroyed, or (d)-3 for more information. Any organization that intentionally lost. disregards this requirement will be subject Requests that may be disregarded 4. Notice requirement To meet to a penalty for each day the offers or without IRS approval. A private this, a private foundation must notify any solicitations are made. The penalty is the foundation may disregard any request for individual requesting a copy of its annual greater of $1,000 or 50% of the total cost copies of all or part of any document returns and/or exemption application of the offers and solicitations made on beyond the first two received within any where the documents are available that day. 30-day period or the first four received (including the Internet address). If the within any 1-year period from the same request is made in person, the private S. Organizations individual or the same address. foundation must notify the individual immediately. If the request is in writing, it Making the Annual Returns and Organized or Created in a must notify the individual within 7 days of Exemption Application Widely receiving the request. Foreign Country or U.S. Available Possession A private foundation does not have to Penalties If you apply any provision of any U.S. tax provide copies of its annual returns and/or A penalty may be imposed on any person treaty to compute the foundation s taxable its exemption application if it makes these who does not make the annual returns income, tax liability, or tax credits in a documents widely available. However, it (including all required attachments to manner different from the 990-PF must still allow public inspection by office each return) or the exemption application instructions, attach an explanation. visitation. available for public inspection according to the section 6104(d) rules discussed Regulations section (b) How does a private foundation make above. If more than one person fails to states that sections 507, 508, and its annual returns and exemption comply, each person is jointly and Chapter 42 (other than section 4948) do application widely available? A private severally liable for the full amount of the not apply to a foreign private foundation foundation s annual returns and/or penalty. The penalty amount is $20 for that from the date of its creation has exemption application is widely available each day during which a failure occurs. received at least 85% of its support (as if it meets all four of the following The maximum penalty that may be defined in section 509(d), other than requirements: imposed on all persons for any 1 annual section 509(d)(4)) from sources outside 1. The internet posting return is $10,000. There is no maximum the United States. requirement This is met if: The document is posted on a World penalty amount for failure to make the Section 4948(a) imposes a 4% tax on Wide Web page that the private exemption application available for public the gross investment income from U.S. foundation establishes and maintains or inspection. sources (i.e., income from dividends, The document is posted as part of a Any person who willfully fails to comply interest, rents, payments received on database of like documents of other with the section 6104(d) public inspection securities loans (as defined in section tax-exempt organizations on a World requirements is subject to an additional 512(a)(5)), and royalties not reported on Wide Web page established and penalty of $5,000 (section 6685). Form 990-T) of an exempt foreign private maintained by another entity. foundation. This tax replaces the section 2. Additional posting information Requirements Placed on the 4940 tax on the net investment income of requirement This is met if: IRS a domestic private foundation. To pay any The World Wide Web page through A private foundation s annual returns and tax due, see the instructions for Part VI, which the document is available clearly approved exemption application may be line 9. informs readers that the document is inspected by the public at an IRS office Taxable foreign private foundations available and provides instructions for for your area or at the IRS National Office and foreign section 4947(a)(1) nonexempt downloading the document; in Washington, DC. charitable trusts are not subject to the -8- Form 990-PF Instructions

9 excise taxes under sections 4948(a) and A significant disposition of assets termination is due (or would be due if a 4940, but are subject to income tax under does not include any disposition for a tax return were required). subtitle A of the Code. year if: The organization will be allowed a Certain foreign foundations are not 1. The total of the dispositions for the reasonable period of time to file any required to send copies of annual returns tax year is less than 25% of the fair private foundation returns required (for to state officials, or comply with the public market value of the net assets of the the last year of the termination period) but inspection and notice requirements of organization at the beginning of the tax not previously filed if it is later determined annual returns. (See General Instructions year, and that the organization did not terminate its G and Q.) 2. The total of the related dispositions private foundation status. Interest on any made during prior tax years (if a tax due will be charged from the original disposition is part of a series of related due date of the Form 990-PF, but T. Liquidation, Dissolution, dispositions made during these prior tax penalties under sections 6651 and 6652 Termination, or years) is less than 25% of the fair market will not be assessed if the Form 990-PF is value of the net assets of the organization filed within the period allowed by the IRS. Substantial Contraction at the beginning of the tax year in which If there is a liquidation, dissolution, any of the series of related dispositions V. Special Rules for termination, or substantial contraction was made. Section 507(b)(1)(B) (defined below) of the organization, The facts and circumstances of the attach: particular case will determine whether a Terminations 1. A statement to the return significant disposition has occurred If the organization is terminating its explaining it, through a series of related dispositions. private foundation status under the 2. A certified copy of the liquidation Ordinarily, a distribution described in 60-month provisions of section plan, resolution, etc. (if any) and all section 170(b)(1)(E)(ii) (relating to private 507(b)(1)(B), special rules apply. (See amendments or supplements that were foundations making qualifying General Instructions T and U.) Under not previously filed, distributions out of corpus equal to 100% these rules, the organization may file 3. A schedule that lists the names and of contributions received during the Form 990-PF without paying the tax addresses of all recipients of assets, and foundation s tax year) will not be taken based on investment income if it filed a 4. An explanation of the nature and into account as a significant disposition of consent under section 6501(c)(4) with its fair market value of the assets distributed assets. See Regulations section notification to the TE/GE Customer to each recipient A-9(g)(2). Account Services at the Cincinnati address given in General Instruction U of Additional requirements. For a its intention to begin a section U. Filing Requirements complete corporate liquidation or trust 507(b)(1)(B) termination. The consent termination, attach a statement as to During Section provides that the period of limitation on whether a final distribution of assets was the assessment of excise tax under 507(b)(1)(B) Termination section 4940 or 4948 based on made and the date it was made (if applicable). Although an organization terminating its investment income for any tax year in the private foundation status under section 60-month period will not expire until at Also, if the organization: 507(b)(1)(B) may be regarded as a public least 1 year after the period for assessing Has ceased to exist, check the Final charity for certain purposes, it is a deficiency for the last tax year in which Return box in G at the top of page 1 of considered a private foundation for filing the 60-month period would normally the return. requirement purposes and it must file an expire. Any foundation not paying the tax Is terminating its private foundation annual return on Form 990-PF. The return when it files Form 990-PF must attach a status under section 507(b)(1)(B), see must be filed for each year in the copy of the signed consent. General Instructions U and V. 60-month termination period, if that period If the foundation did not file the Is voluntarily terminating its private has not expired before the due date of the consent, the tax must be paid in the foundation status under section 507(a)(1) return. normal manner as explained in General and owes a termination tax, send the Regulations under section 507(b)(1) Instructions O and P. The organization notice (and tax payment, if applicable) (B)(iii) specify that within 90 days after the may file a claim for refund after required by Rev. Rul , end of the termination period the completing termination or during the I.R.B. 941, and Rev. Rul , organization must supply information to termination period. The claim for refund I.R.B. 305, to the Manager, the IRS establishing that it has terminated must be filed on time and the organization Exempt Organizations Determinations, at its private foundation status and, must supply information establishing that the address given in General Instruction therefore, qualifies as a public charity. it qualified as a public charity for the U. Send the information to: period for which it paid the tax. Relief from public inspection Internal Revenue Service requirements. If the organization has TE/GE Customer Account Services W. Rounding, Currency, terminated its private foundation status P.O. Box 2508 and Attachments under section 507(b)(1)(A), it does not have to comply with the notice and public Cincinnati, OH Rounding off to whole-dollars. You inspection requirements of their return for If information is furnished establishing may round off cents to whole dollars on the termination year. a successful termination, then, for the your return and schedules. If you do final year of the termination period, the round to whole dollars, you must round all Filing date. See General Instruction J for organization should comply with the filing amounts. To round, drop amounts under the filing date. requirements for the type of public charity 50 cents and increase amounts from 50 Definitions. The term substantial it has become. See the Instructions for to 99 cents to the next dollar. For contraction includes any partial Form 990 and Schedule A (Form 990 or example, $1.39 becomes $1 and $2.50 liquidation or any other significant 990-EZ) for details on filing requirements. becomes $3. disposition of assets. However, this does This applies even if the IRS has not If you have to add two or more not include transfers for full and adequate confirmed that the organization has amounts to figure the amount to enter on consideration or distributions of current terminated its private foundation status by a line, include cents when adding the income. the time the return for the final year of the amounts and round off only the total. Form 990-PF Instructions -9-

10 Currency and language requirements. D2 Foreign Organizations This amount should be the same Report all amounts in U.S. dollars (state If the foreign organization meets the 85% TIP as the figure reported in Part II, conversion rate used). Report all items in test of Regulations section (b), column (c), line 16. total, including amounts from both U.S. then: and non-u.s. sources. All information 1. Check the box in D2 on page 1 of Part I Analysis of must be in English. Form 990-PF, Revenue and Expenses Attachments. Use the schedules on 2. Check the box at the top of Part XI, Form 990-PF. If you need more space 3. Do not fill in Parts XI and XIII, Column Instructions use attachments that are the same size 4. Do not fill in Part X unless it is The total of amounts in columns (b), (c), as the printed forms. claiming status as a private operating and (d) may not necessarily equal the foundation, and On each attachment, write: amounts in column (a). 5. Attach the computation of the 85% Form 990-PF, test to Form 990-PF. The amounts entered in column (a) The tax year, and on line 5b must be analyzed in Part The corresponding schedule number or XVI-A. E Section 507(b)(1)(A) letter, Terminations Column (a) Revenue and The organization s name and EIN, and The information requested using the A private foundation that has terminated Expenses per Books format and line sequence of the printed its status as such under section Enter in column (a) all items of revenue form. 507(b)(1)(A), by distributing all its net and expense shown in the books and Also, show totals on the printed forms. assets to one or more public charities records that increased or decreased the without keeping any right, title, or interest net assets of the organization. However, in those assets, should check the box in E do not include the value of services on page 1 of Form 990-PF. See General donated to the foundation, or items such Specific Instructions Instructions Q and T. as the free use of equipment or facilities, in contributions received. Also, do not F 60-Month Termination include any expenses used to compute Completing the Heading Under Section 507(b)(1)(B) capital gains and losses on lines 6, 7, and The following instructions are keyed to Check the box in F on page 1 of Form 8 or expenses included in cost of goods items in the Form 990-PF heading. 990-PF if the organization is terminating sold on line 10b. its private foundation status under the Column (b) Net Investment Name and Address 60-month provisions of section Income If the organization received a Form 507(b)(1)(B) during the period covered by 990-PF package from the IRS with a this return. To begin such a termination, a All domestic private foundations peel-off label, please use it. If the name or private foundation must have given (including section 4947(a)(1) nonexempt address on the label is wrong, make advance notice to TE/GE at the Cincinnati charitable trusts) are required to pay an corrections on the label. The address address given on page 9 and provided excise tax each tax year on net used must be that of the principal office of the information outlined in Regulations investment income. the foundation. section (b)(3). See General Exempt foreign foundations are Instruction U for information regarding subject to an excise tax on gross Include the suite, room, or other unit filing requirements during a section investment income from U.S. sources. number after the street address. If the 507(b)(1)(B) termination. These foreign organizations should Post Office does not deliver mail to the complete lines 3, 4, 5, 11, 12, and 27b of street address and the organization has a See General Instruction V for column (b) and report only income P.O. box, show the box number instead of information regarding payment of the tax derived from U.S. sources. No other the street address. based on investment income (computed income should be included. No expenses in Part VI) during a section 507(b)(1)(B) are allowed as deductions. A Employer Identification termination. Definitions Number H Type of Organization Gross investment income means The organization should have only one Check the box for Section 501(c)(3) the total amount of investment income employer identification number. If it has exempt private foundation if the that was received by a private foundation more than one number, notify the Internal foundation has a ruling or determination from all sources. However, it does not Revenue Service Center at the address letter from the IRS in effect that include any income subject to the shown under General Instruction J. recognizes its exemption from Federal unrelated business income tax. It includes Explain what numbers the organization income tax as an organization described interest, dividends, rents, payments with has, the name and address to which each in section 501(c)(3) or if the organization s respect to securities loans (as defined in number was assigned, and the address of exemption application is pending with the section 512(a)(5)), royalties received from the organization s principal office. The IRS. assets devoted to charitable activities, IRS will then advise which number to use. income from notional principal contracts Check the Section 4947(a)(1) (as defined in Regulations section B Telephone Number nonexempt charitable trust box if the ), and other substantially similar Enter a foundation telephone number trust is a nonexempt charitable trust income from ordinary and routine (including the area code) that the public treated as a private foundation. All others, investments excluded by section and government regulators may use to check the Other taxable private 512(b)(1). Therefore, interest received on obtain information about the foundation s foundation box. a student loan is includible in the gross finances and activities. This information investment income of a private foundation should be available at this telephone I Fair Market Value of All making the loan. number during normal business hours. If Assets Net investment income is the the foundation does not have a In block I on page 1 of Form 990-PF, amount by which the sum of gross telephone, enter a telephone number of a enter the fair market value of all assets investment income and the capital gain foundation official who can provide this the foundation held at the end of the tax net income exceeds the allowable information during normal business hours. year. deductions discussed later. Tax-exempt -10- Form 990-PF Instructions

11 interest on governmental obligations and Expenses related to tax-exempt Examples. related expenses are excluded. interest. Do not include on lines A charitable activity generated of column (b) any expenses paid or Investment income. Include in column $5,000 of income and $4,000 of incurred that are allocable to tax-exempt (b) all or part of any amount from column expenses. Report all of the income and interest that is excluded from lines 3 (a) that applies to investment income. expenses in column (c) and none in and 4. However, do not include in column (b) column (d). any interest, dividends, rents or royalties 2. A charitable activity generated Column (c) Adjusted Net Income (and related expenses) that were reported $5,000 of income and $6,000 of on Form 990-T. expenses. Report $5,000 of income and Nonoperating private foundations $5,000 of expenses in column (c) and the should see item 1 under For example, investment income from TIP excess expenses of $1,000 in column (d). Nonoperating private debt-financed property unrelated to the foundations on this page to find out if organization s charitable purpose and Nonoperating private foundations. The they need to complete column (c). certain rents (and related expenses) following rules apply to nonoperating treated as unrelated trade or business Private operating foundations. All private foundations. income should be reported on Form organizations that claim status as private 1. If a nonoperating private foundation 990-T. Income from debt-financed operating foundations under section has no income from charitable activities property that is not taxed under section 4942(j)(3) or (5) must complete all lines of that would be reportable on line 10 or line 511 is taxed under section Thus, if column (c) that apply, according to the 11 of Part I, it does not have to make any the debt/basis percentage of a general rules for income and expenses entries in column (c). debt-financed property is 80%, only 80% that apply to this column, the specific line 2. If a nonoperating private foundation of the gross income (and expenses) for instructions for lines 3 27c, the Special has income from charitable activities, it that property is used to figure the section rule, and Examples 1 and 2 below. must report that income only on lines tax on Form 990-T. The remaining General rules. In general, adjusted net and/or 11 in column (c). These 20% of the gross income (and expenses) income is the amount of a private foundations do not need to report other of that property is used to figure the foundation s gross income that is more kinds of income and expenses (such as section 4940 tax on net investment than the expenses of earning the income. investment income and expenses) in income on Form 990-PF. (See Form The modifications and exclusions column (c). 990-T and its instructions for more explained below are applied to gross 3. If a nonoperating private foundation information.) income and expenses in figuring adjusted has income that it reports on lines 10 and/ net income. or 11, report any expenses relating to this Investment expenses. Include in income following the general rules and column (b) all ordinary and necessary For income and expenses, include on the special rule. See Examples 1 and 2 expenses paid or incurred to produce or each line of column (c) only that portion of above. collect investment income from: interest, the amount from column (a) that is dividends, rents, amounts received from applicable to the adjusted net income Column (d) Disbursements for payments on securities loans (as defined computation. in section 512(a)(5)), royalties, income Charitable Purposes from notional principal contracts, and Income. For column (c), include Expenses entered in column (d) relate to other substantially similar income from income from charitable functions, activities that constitute the charitable ordinary and routine investments investment activities, short-term capital purpose of the foundation. excluded by section 512(b)(1); or for the gains from investments, amounts set For amounts entered in column (d): management, conservation, or aside, and unrelated trade or business Use the cash receipts and maintenance of property held for the activities. Do not include gifts, grants, or disbursements method of accounting no production of income that is taxable under contributions, or long-term capital gains or matter what accounting method is used in section losses. keeping the books of the foundation. If any of the expenses listed in column Expenses. Deductible expenses Do not include any amount or part of (a) are paid or incurred for both include the part of a private foundation s an amount that is included in column (b) investment and charitable purposes, they operating expenses that is paid or or (c). must be allocated on a reasonable basis incurred to produce or collect gross Include on lines all expenses, between the investment activities and the income reported on lines 3 11 of column including necessary and reasonable charitable activities so that only expenses (c). If only part of the property produces administrative expenses, paid by the from investment activities appear in income includible in column (c), foundation for religious, charitable, column (b). Examples of allocation deductions such as interest, taxes, and scientific, literary, educational, or other methods are given in the instructions for rent must be divided between the public purposes, or for the prevention of Part IX-A. charitable and noncharitable uses of the cruelty to children or animals. property. If the deductions for property Include a distribution of property at the Limitation. The deduction for used for a charitable, educational, or fair market value on the date the expenses paid or incurred in any tax year other similar purpose are more than the distribution was made. for producing gross investment income income from the property, the excess will Include only the part entered in column earned incident to a charitable function not be allowed as a deduction but may be (a) that is allocable to the charitable cannot be more than the amount of treated as a qualifying distribution in Part purposes of the foundation. income earned from the function that is I, column (d). See Examples 1 and 2 Example. An educational seminar includible as gross investment income for below. produced $1,000 in income that was the year. Special rule. The expenses attributable reportable in columns (a) and (c). For example, if rental income is to each specific charitable activity, limited Expenses attributable to this charitable incidentally realized in 2003 from historic by the amount of income from the activity, activity were $1,900. Only $1,000 of buildings held open to the public, must be reported in column (c) on lines expense should be reported in column (c) deductions for amounts paid or incurred If the expenses of any charitable and the remaining $900 in expense in 2003 for the production of this income activity exceed the income generated by should be reported in column (d). may not be more than the amount of that activity, only the excess of these Qualifying distributions. Generally, rental income includible as gross expenses over the income should be gifts and grants to organizations investment income in column (b) for reported in column (d). described in section 501(c)(3), that have Form 990-PF Instructions -11-

12 been determined to be publicly supported The written acknowledgment the In column (c), enter the amount of charities (i.e., organizations that are not foundation provides to the donor must interest income shown in column (a). private foundations as defined in section show: Include interest on tax-exempt 509(a)), are qualifying distributions only if 1. The amount of cash contributed, government obligations. the granting foundation does not control 2. A description of any property Line 4 Dividends and interest from the public charity. contributed, securities. 3. Whether the foundation provided The total of the expenses and In column (a), enter the amount of any goods or services to the donor, and TIP disbursements on line 26 is also dividend and interest income from 4. A description and a good-faith entered on line 1a in Part XII to securities (stocks and bonds) of the type estimate of the value of any goods or figure qualifying distributions. reportable in Balance Sheets, Part II, line services the foundation gave in return for 10. Include amounts received from Alternative to completing lines the contribution, unless: payments on securities loans, as defined If you want to provide an analysis of a. The goods and services have in section 512(a)(5). Do not include any disbursements that is more detailed than insubstantial value, or capital gain dividends reportable on line column (d), you may attach a schedule b. A statement is included that these 6. Report income from program-related instead of completing lines The goods and services consist solely of investments on line 11. For debt schedule must include all the specific intangible religious benefits. instruments with an original issue items of lines 13 25, and the total from Generally, if a charitable organization discount, report the original issue the schedule must be entered in column solicits or receives a contribution of more discount ratably over the life of the bond (d), line 26. than $75 for which it gives the donor on line 4. See section 1272 for more Line Instructions something in return (a quid pro quo information. contribution), the organization must Line 1 Contributions, gifts, grants, In column (b), enter the amount of inform the donor, by written statement, etc., received. Enter the total of gross dividend and interest income, and that the amount of the contribution contributions, gifts, grants, and similar payments on securities loans from deductible for Federal income tax amounts received. column (a). Do not include interest on purposes is limited to the amount by tax-exempt government obligations. Schedule B (Form 990, 990 EZ, or which the contribution exceeds the value of the goods or services received by the In column (c), enter the amount of 990 PF). If money, securities, or other donor. The written statement must also dividends and interest income, and property valued at $5,000 or more was provide the donor with a good-faith payments on securities loans from received directly or indirectly from any estimate of the value of goods or services column (a). Include interest on one person during the year, complete given in return for the contribution. tax-exempt government obligations. Schedule B and attach it to the return. If the foundation is not required to complete Line 5a Gross rents. Penalties. An organization that does Schedule B (no person contributed not make the required disclosure for each In column (a), enter the gross rental $5,000 or more), be sure to check the box quid pro quo contribution will incur a income for the year from investment on line 1. penalty of $10 for each failure, not to property reportable on line 11 of Part II. To determine whether a person has exceed $5,000 for a particular fundraising In columns (b) and (c), enter the contributed $5,000 or more, total only event or mailing, unless it can show gross rental income from column (a). gifts of $1,000 or more from each person. reasonable cause for not providing the disclosure. Line 5b Net rental income or (loss). Separate and independent gifts need not Figure the net rental income or (loss) for be totaled if less than $1,000. If a For more information. See the year and enter that amount on the contribution is in the form of property, Regulations section 1.170A-13 for more entry line to the left of column (a). describe the property and include its fair information on charitable recordkeeping market value. and substantiation requirements. Report rents from other sources on line 11, Other income. Enter any The term person includes individuals, Line 2 Certain distributions from expenses attributable to the rental income fiduciaries, partnerships, corporations, split-interest trusts described in reported on line 5, such as interest and associations, trusts, and exempt section 4947(a)(2). The income portion depreciation, on lines organizations. of distributions from split-interest trusts Line 6a Net gain or (loss) from sale Split-interest trusts. Distributions that was earned on amounts placed in of assets. Enter the net gain or (loss) per from split-interest trusts should be trust after May 26, 1969, is treated as books from all asset sales not included on entered on both line 1 of column (a) and investment income. Include only the line 10. line 2 of column (b). They are a part of the income portion of these distributions on amount on line 1. line 2. That same figure is a part of For assets sold and not included in line 1. Part IV, attach a schedule showing: Substantiation requirements. An Date acquired, organization must keep records, required Line 3 Interest on savings and Manner of acquisition, by the regulations under section 170, for temporary cash investments. Gross sales price, all its charitable contributions. In column (a), enter the total amount Cost, other basis, or value at time of Generally, a donor making a charitable of interest income from investments of the acquisition (if donated) and which of contribution of $250 or more will not be type reportable in Balance Sheets, Part II, these methods was used, allowed a Federal income tax deduction line 2. These include savings or other Date sold, unless the donor obtains a written interest-bearing accounts and temporary To whom sold, acknowledgment from the donee cash investments, such as money market Expense of sale and cost of organization by the earlier of the date on funds, commercial paper, certificates of improvements made subsequent to which the donor files a tax return for the deposit, and U.S. Treasury bills or other acquisition, and tax year in which the contribution was government obligations that mature in Depreciation since acquisition (if made or the due date, including less than 1 year. depreciable property). extensions, for filing that return. However, In column (b), enter the amount of Line 6b Gross sales price for all see section 170(f)(8) and Regulations interest income shown in column (a). Do assets on line 6a. Enter the gross sales section 1.170A-13 for exceptions to this not include interest on tax-exempt price from all asset sales whose net gain rule. government obligations. or loss was reported on line 6a Form 990-PF Instructions

13 Line 7 Capital gain net income. Enter inventory items are the ones the in column (a) that was paid or incurred to the capital gain net income from Part IV, organization either makes to sell to others produce or collect income included in line 2. See Part IV instructions. or buys for resale. column (c). Line 8 Net short-term capital gain. Do not report any sales or exchanges Line 14 Other employee salaries and of investments on line 10. wages. Enter the salaries and wages of Only private operating foundations Do not include any profit or (loss) from all employees other than those included TIP report their short-term capital the sale of capital items such as on line 13. gains on line 8. securities, land, buildings, or equipment Line 15 Contributions to employee Include only net short-term capital gain on line 10. Enter these amounts on pension plans and other benefits. for the year (assets sold or exchanged line 6a. Enter the employer s share of the that were held not more than 1 year). Do Do not include any business expenses contributions the organization paid to not include a net long-term capital gain or such as salaries, taxes, rent, etc., on line qualified and nonqualified pension plans a net loss in column (c). 10. Include them on lines and the employer s share of contributions Do not include on line 8 a net gain to employee benefit programs (such as from the sale or exchange of depreciable Attach a schedule showing the insurance, health, and welfare programs) property, or land used in a trade or following items: Gross sales, Cost of that are not an incidental part of a business (section 1231) and held for goods sold, Gross profit or (loss). These pension plan. Complete the return/report more than 1 year. However, include a net items should be classified according to of the Form 5500 series appropriate for loss from such property on line 23 as an type of inventory sold (such as books, the organization s plan. (See the Other expense. tapes, other educational or religious Instructions for Form 5500 for information material, etc.). The totals from the In general, organizations may carry to about employee welfare benefit plans schedule should agree with the entries on line 8 the net short-term capital gain required to file that form.) lines 10a 10c. reported on Part IV, line 3. However, if the Also include the amount of Federal, In column (c), enter the gross profit foundation had any short-term capital state, and local payroll taxes for the year, or (loss) from sales of inventory shown in gain from sales of debt-financed property, but only those that are imposed on the column (a), line 10c. add it to the amount reported on Part IV, organization as an employer. This line 3, to figure the amount to include on Line 11 Other income. Enter the total includes the employer s share of social line 8. For the definition of debt-financed of all the foundation s other income for the security and Medicare taxes, FUTA tax, property, see the instructions for Form year. Attach a schedule that gives a state unemployment compensation tax, 990-T. description and the amount of the income. and other state and local payroll taxes. Include all income not reported on lines 1 Line 9 Income modifications. Include Do not include taxes withheld from through 10c. Also, see the instructions for on this line: employees salaries and paid over to the Part XVI-A, line 11. Amounts received or accrued as various governmental units (such as repayments of amounts taken into Include imputed interest on certain Federal and state income taxes and the account as qualifying distributions (see deferred payments figured under section employee s share of social security and the instructions for Part XII for an 483 and any investment income not Medicare taxes). explanation of qualifying distributions) for reportable on lines 3 through 5, including Lines 16a, b, and c Legal, any year. income from program-related investments accounting, and other professional Amounts received or accrued from the (defined in the instructions for Part IX-B). fees. On the appropriate line(s), enter the sale or other disposition of property to the Do not include unrealized gains and amount of legal, accounting, auditing, and extent that the acquisition of the property losses on investments carried at market other professional fees (such as fees for was considered a qualifying distribution value. Report those as fund balance or fundraising or investment services) for any tax year. net asset adjustments in Part III. charged by outside firms and Any amount set aside for a specific In column (b), enter the amount of individuals who are not employees of the project (see explanation in the investment income included in line 11, foundation. instructions for Part XII) that was not column (a). Include dividends, interest, Attach a schedule for lines 16a, b, and necessary for the purposes for which it rents, and royalties derived from assets c. Show the type of service and amount of was set aside. devoted to charitable activities, such as expense for each. If the same person Income received from an estate, but interest on student loans. provided more than one of these services, only if the estate was considered In column (c), include all other items include an allocation of those expenses. terminated for income tax purposes due includible in adjusted net income not to a prolonged administration period. Report any fines, penalties, or covered elsewhere in column (c). Amounts treated in an earlier tax year judgments imposed against the as qualifying distributions to: Line 12 Total. In column (b), foundation as a result of legal domestic organizations should enter the proceedings on line 23, Other expenses. 1. A nonoperating private foundation, total of lines Exempt foreign if the amounts were not redistributed by Line 18 Taxes. Attach a schedule organizations, enter the total of lines 3, 4, the grantee organization by the close of listing the type and amount of each tax 5, and 11 only. its tax year following the year in which it reported on line 18. Do not enter any received the funds, or Line 13 Compensation of officers, taxes included on line An organization controlled by the directors, trustees, etc. In column (a), enter the taxes paid (or distributing foundation or a disqualified In column (a), enter the total accrued) during the year. Include all types person if the amounts were not compensation for the year of all officers, of taxes recorded on the books, including redistributed by the grantee organization directors, and trustees. If none was paid, real estate tax not reported on line 20; the by the close of its tax year following the enter zero. Complete line 1 of Part VIII to tax on investment income; and any year in which it received the funds. show the compensation of officers, income tax. Lines 10a, b, c Gross profit from directors, trustees, and foundation In column (b), enter only those taxes sales of inventory. Enter the gross managers. included in column (a) that are related to sales (less returns and allowances), cost In columns (b), (c), and (d), enter the investment income taxable under section of goods sold, and gross profit or (loss) portion of the compensation included in Do not include the section 4940 tax from the sale of all inventory items, column (a) that is applicable to the paid or incurred on net investment income including those sold in the course of column. For example, in column (c) enter or the section 511 tax on unrelated special events and activities. These the portion of the compensation included business income. Sales taxes may not be Form 990-PF Instructions -13-

14 deducted separately, but must be treated meetings, etc. Include transportation 5. The organizational status of donee as a part of the cost of acquired property, (including fares, mileage allowance, or (e.g., public charity an organization or as a reduction of the amount realized automobile expenses), meals and described in section 509(a)(1), (2), or (3)). on disposition of the property. lodging, and related costs whether paid You do not have to give the name of In column (c), enter only those taxes on the basis of a per diem allowance or any indigent person who received one or included in column (a) that relate to actual expenses incurred. Do not include more gifts or grants from the foundation income included in column (c). Do not any compensation paid to those who unless that individual is a disqualified include any excise tax paid or incurred on participate. person or one who received a total of the net investment income (as shown in In column (b), only 50% of the more than $1,000 from the foundation Part VI), or any tax reported on Form expense for business meals, etc., paid or during the year. 990-T. incurred in connection with travel, meetings, etc., relating to the production Activities should be classified In column (d), do not include any of investment income, may be deducted according to purpose and in greater detail excise tax paid on investment income (as in figuring net investment income (section than merely classifying them as reported in Part VI of this return or the 274(n)). charitable, educational, religious, or equivalent part of a return for prior years) scientific activities. For example, use unless the organization is claiming status In column (c), enter the total amount identification such as: payments for as a private operating foundation and of expenses paid or incurred by officers, nursing service, for fellowships, or for completes Part XIV. employees, or others for travel, assistance to indigent families. Line 19 Depreciation and depletion. conferences, meetings, etc., related to In column (a), enter the expense income included in column (c). Foundations may include, as a single recorded in the books for the year. entry on the schedule, the total of Line 22 Printing and publications. amounts paid as grants for which the For depreciation, attach a schedule Enter the expenses for printing or foundation exercised expenditure showing: publishing and distributing any responsibility. Attach a separate report for 1. A description of the property, newsletters, magazines, etc. Also include each grant. 2. The date acquired, the cost of subscriptions to, or purchases of, magazines, newspapers, etc. When the fair market value of the 3. The cost or other basis (exclude property at the time of disbursement is any land), Line 23 Other expenses. Enter all the measure of a contribution, the 4. The depreciation allowed or other expenses for the year. Include all schedule must also show: allowable in prior years, expenses not reported on lines The method of computation, Attach a schedule showing the type and 1. A description of the contributed 6. The rate (%) or life (years), and amount of each expense. property, 7. The depreciation this year. 2. The book value of the contributed If a deduction is claimed for property, On a separate line on the schedule, amortization, attach a schedule showing: 3. The method used to determine the show the amount of depreciation included Description of the amortized expenses; book value, in cost of goods sold and not included on Date acquired, completed, or 4. The method used to determine the line 19. expended; fair market value, and In columns (b) and (c), a deduction Amount amortized; 5. The date of the gift. for depreciation is allowed only for Deduction for prior years; property used in the production of income Amortization period (number of The difference between fair reported in the column, and only using months); market value and book value TIP the straight line method of computing Current-year amortization; and should be shown in the books of depreciation. A deduction for depletion is Total amount of amortization. account and as a net asset adjustment in allowed but must be figured only using In column (c), in addition to the Part III. the cost depletion method. applicable portion of expenses from In column (d), enter on line 25 all The basis used in figuring depreciation column (a), include any net loss from the contributions, gifts, and grants the and depletion is the basis determined sale or exchange of land or depreciable foundation paid during the year. under normal basis rules, without regard property that was held for more than Do not include contributions to to the special rules for using the fair 1 year and used in a trade or business. organizations controlled by the foundation market value on December 31, 1969, that A deduction for amortization is allowed or by a disqualified person (see General relate only to gain or loss on dispositions but only for assets used for the production Instruction C for definitions). Do not for purposes of the tax on net investment of income reported in column (c). include contributions to nonoperating income. Line 25 Contributions, gifts, grants private foundations unless the donees are Line 20 Occupancy. Enter the amount paid. exempt from tax under section 501(c)(3), paid or incurred for the use of office they redistribute the contributions, and space or other facilities. If the space is In column (a), enter the total of all they maintain sufficient evidence of rented or leased, enter the amount of contributions, gifts, grants, and similar redistributions according to the rent. If the space is owned, enter the amounts paid (or accrued) for the year. regulations under section 4942(g). amount of mortgage interest, real estate List each contribution, gift, grant, etc., in Do not reduce the amount of grants taxes, and similar expenses, but not Part XV, or attach a schedule of the items paid in the current year by the amount of depreciation (reportable on line 19). In included on line 25 and list: grants paid in a prior year that was either case, include the amount for 1. Each class of activity, returned or recovered in the current year. utilities and related expenses (e.g., heat, 2. A separate total for each activity, Report those repayments in column (c), lights, water, power, telephone, sewer, 3. Name and address of donee, line 9, and in Part XI, line 4a. trash removal, outside janitorial services, 4. Relationship of donee if related by: Do not include any payments of and similar services). Do not include any a. Blood, set-asides (see instructions for Part XII, salaries of the organization s own b. Marriage, line 3) taken into account as qualifying employees that are reportable on line 15. c. Adoption, or distributions in the current year or any Line 21 Travel, conferences, and d. Employment (including children of prior year. All set-asides are included in meetings. Enter the expenses for employees) to any disqualified person qualifying distributions (Part XII, line 3) in officers, employees, or others during the (see General Instruction C for definitions), the year of the set-aside regardless of year for travel, attending conferences, and when paid Form 990-PF Instructions

15 Do not include current year s write-offs reduced by the corresponding allowance 6. Repayment terms. of prior years program-related for doubtful accounts). Claims against 7. Interest rate. investments. All program-related vendors or refundable deposits with 8. Security provided by the borrower. investments are included in qualifying suppliers or others may be reported here 9. Purpose of the loan. distributions (Part XII, line 1b) in the year if not significant in amount. (Otherwise, 10. Description and fair market value of the investment is made. report them on line 15, Other assets.) Any the consideration furnished by the lender Do not include any payments that are receivables due from officers, directors, (e.g., cash $1,000; or 100 shares of not qualifying distributions as defined in trustees, foundation managers, or other XYZ, Inc., common stock $9,000). section 4942(g)(1). disqualified persons must be reported on The above detail is not required for line 6. Report receivables (including loans Net Amounts receivables or travel advances that may and advances) due from other employees be reported as a single total (see (b) Line 27a Excess of revenue over on line 15. above); however, report and identify expenses. Subtract line 26, column (a), Line 4 Pledges receivable. On the those totals separately on the attachment. from line 12, column (a). Enter the result. dashed lines to the left of column (a), Generally, the amount shown in column Line 7 Other notes and loans enter the year-end figures for total (a) on this line is also the amount by receivable. On the dashed lines to the pledges receivable and allowance for which net assets (or fund balances) have left of column (a), enter the combined doubtful accounts (pledges estimated to increased or decreased for the year. See total year-end figures for notes receivable be uncollectable). In columns (a), (b), and the instructions for Part III, Analysis of and loans receivable and the allowance (c), enter net amounts (total pledges Changes in Net Assets or Fund Balances. for doubtful accounts. receivable reduced by the corresponding Line 27b Net investment income. allowance for doubtful accounts). Notes receivable. In columns (a), (b), Domestic organizations, subtract line 26 and (c), enter the amount of all notes Line 5 Grants receivable. Enter the from line 12. Enter the result. Exempt receivable not listed on line 6 and not total grants receivable from governmental foreign organizations, enter the amount acquired as investments. Attach a agencies, foundations, and other shown on line 12. However, if the schedule similar to the one for line 6. The organizations as of the beginning and end organization is a domestic organization schedule should also identify the of the year. and line 26 is more than line 12 (i.e., relationship of the borrower to any officer, expenses exceed income), enter zero Line 6 Receivables due from officers, director, trustee, foundation manager, or (not a negative amount). directors, trustees, and other other disqualified person. disqualified persons. Enter here (and Line 27c Adjusted net income. For a note receivable from any section on an attached schedule described Subtract line 26, column (c) from line 12, 501(c)(3) organization, list only the name below) all receivables due from officers, column (c) and enter the result. of the borrower and the balance due on directors, trustees, foundation managers, the required schedule. and other disqualified persons and all Part II Balance Sheets secured and unsecured loans (including Loans receivable. In columns (a), (b), For column (b), show the book value at advances) to such persons. Disqualified and (c), enter the gross amount of loans the end of the year. For column (c), show person is defined in General receivable, minus the allowance for the fair market value at the end of the Instruction C. doubtful accounts, from the normal year. Attached schedules must show the activities of the filing organization (such Attached schedules. (a) On the end-of-year value for each asset listed in as scholarship loans). An itemized list of required schedule, report each loan columns (b) and (c). these loans is not required but attach a separately, even if more than one loan Foundations whose books of account schedule showing the total amount of was made to the same person, or the included total assets of $5,000 or more at each type of outstanding loan. Report same terms apply to all loans made. any time during the year must complete loans to officers, directors, trustees, all of columns (a), (b), and (c). Salary advances and other advances foundation managers, or other Foundations with less than $5,000 of for the personal use and benefit of the disqualified persons on line 6 and loans to total assets per books at all times during recipient and receivables subject to other employees on line 15. the year must complete all of columns (a) special terms or arising from transactions Line 8 Inventories for sale or use. and (b), and only line 16 of column (c). not functionally related to the foundation s Enter the amount of materials, goods, and Line 1 Cash Non-interest-bearing. charitable purposes must be reported as supplies purchased or manufactured by Enter the amount of cash on deposit in separate loans for each officer, director, the organization and held for sale or use checking accounts, deposits in transit, etc. in some future period. change funds, petty cash funds, or any (b) Receivables that are subject to the Line 9 Prepaid expenses and other non-interest-bearing account. Do same terms and conditions (including deferred charges. Enter the amount of not include advances to employees or credit limits and rate of interest) as short-term and long-term prepayments of officers or refundable deposits paid to receivables due from the general public expenses attributable to one or more suppliers or others. from an activity functionally related to the future accounting periods. Examples Line 2 Savings and temporary cash foundation s charitable purposes may be include prepayments of rent, insurance, investments. Enter the total of cash in reported as a single total for all the and pension costs, and expenses savings or other interest-bearing accounts officers, directors, etc. Travel advances incurred in connection with a solicitation and temporary cash investments, such as made for official business of the campaign to be conducted in a future money market funds, commercial paper, organization may also be reported as a accounting period. certificates of deposit, and U.S. Treasury single total. Lines 10a, b, and c Investments bills or other governmental obligations For each outstanding loan or other government obligations, corporate that mature in less than 1 year. receivable that must be reported stocks and bonds. Enter the book value Line 3 Accounts receivable. On the separately, the attached schedule should (which may be market value) of these dashed lines to the left of column (a), show the following information (preferably investments. enter the year-end figures for total in columnar form): Attach a schedule that lists each accounts receivable and allowance for 1. Borrower s name and title. security held at the end of the year and doubtful accounts from the sale of goods 2. Original amount. shows whether the security is listed at and/or the performance of services. In 3. Balance due. cost (including the value recorded at the columns (a), (b), and (c), enter net 4. Date of note. time of receipt in the case of donated amounts (total accounts receivable 5. Maturity date. securities) or end-of-year market value. Form 990-PF Instructions -15-

16 Do not include amounts shown on line 2. are investments made primarily to absence of donor-imposed restrictions Governmental obligations reported on line accomplish a charitable purpose of the and the nature of those restrictions. Show 10a are those that mature in 1 year or filing organization rather than to produce the sum of the three classes of net assets more. Debt securities of the U.S. income. on line 30. On line 31, add the amounts Government may be reported as a single Line 16 Total assets. All filers must on lines 23 and 30 to show total liabilities total rather than itemized. Obligations of complete line 16 of columns (a), (b), and and net assets. This figure should be the state and municipal governments may (c). These entries represent the totals of same as the figure for Total assets on also be reported as a lump-sum total. Do lines 1 through 15 of each column. line 16. not combine U.S. Government obligations However, organizations that have assets Line 24 Unrestricted. Enter the with state and municipal obligations on of less than $5,000 per books at all times balances per books of the unrestricted this schedule. during the year need not complete lines 1 class of net assets. Unrestricted net Line 11 Investments land, through 15 of column (c). assets are neither permanently restricted buildings, and equipment. On the nor temporarily restricted by The column (c) amount is also dashed lines to the left of column (a), donor-imposed stipulations. All funds TIP entered on the entry space for I on enter the year-end book value (cost or without donor-imposed restrictions must page 1. other basis) and accumulated be classified as unrestricted, regardless depreciation of all land, buildings, and Line 17 Accounts payable and of the existence of any board equipment held for investment purposes, accrued expenses. Enter the total of designations or appropriations. such as rental properties. In columns (a) accounts payable to suppliers and others Line 25 Temporarily restricted. Enter and (b), enter the book value of all land, and accrued expenses, such as salaries the balances per books of the temporarily buildings, and equipment held for payable, accrued payroll taxes, and restricted class of net assets. Donors investment less accumulated interest payable. temporary restrictions may require that depreciation. In column (c), enter the fair Line 18 Grants payable. Enter the resources be used in a later period or market value of these assets. Attach a unpaid portion of grants and awards that after a specified date (time restrictions), schedule listing these investment fixed the organization has made a commitment or that resources be used for a specified assets held at the end of the year and to pay other organizations or individuals, purpose (purpose restrictions), or both. showing, for each item or category listed, whether or not the commitments have the cost or other basis, accumulated Line 26 Permanently restricted. been communicated to the grantees. depreciation, and book value. Enter the total of the balances for the Line 19 Deferred revenue. Include permanently restricted class of net Line 12 Investments mortgage revenue that the organization has assets. Permanently restricted net assets loans. Enter the amount of mortgage received but not yet earned as of the are (a) assets, such as land or works of loans receivable held as investments but balance sheet date under its method of art, donated with stipulations that they be do not include program-related accounting. used for a specified purpose, be investments (see instructions for line 15). Line 20 Loans from officers, preserved, and not be sold or (b) assets Line 13 Investments other. Enter directors, trustees, and other donated with stipulations that they be the amount of all other investment disqualified persons. Enter the unpaid invested to provide a permanent source holdings not reported on lines 10 through balance of loans received from officers, of income. The latter result from gifts and 12. Attach a schedule listing and directors, trustees, and other disqualified bequests that create permanent describing each of these investments held persons. For loans outstanding at the end endowment funds. at the end of the year. Show the book of the year, attach a schedule that shows Organizations that do not follow SFAS value for each and indicate whether the (for each loan) the name and title of the 117. If the organization does not follow investment is listed at cost or end-of-year lender and the information listed in items SFAS 117, check the box above line 27 market value. Do not include 2 through 10 of the instructions for line 6 and report account balances on lines 27 program-related investments (see on page 15. through 29. Report net assets or fund instructions for line 15). Line 21 Mortgages and other notes balances on line 30. Also complete line Line 14 Land, buildings, and payable. Enter the amount of mortgages 31 to report the sum of the total liabilities equipment. On the dashed lines to the and other notes payable at the beginning and net assets/fund balances. left of column (a), enter the year-end book and end of the year. Attach a schedule Line 27 Capital stock, trust principal, value (cost or other basis) and showing, as of the end of the year, the or current funds. For corporations, enter accumulated depreciation of all land, total amount of all mortgages payable the balance per books for capital stock buildings, and equipment owned by the and, for each nonmortgage note payable, accounts. Show par or stated value (or for organization and not held for investment. the name of the lender and the other stock with no par or stated value, total In columns (a) and (b), enter the book information specified in items 2 through amount received upon issuance) of all value of all land, buildings, and equipment 10 of the instructions for line 6. The classes of stock issued and, as yet, not held for investment less accumulated schedule should also identify the uncancelled. For trusts, enter the amount depreciation. In column (c), enter the fair relationship of the lender to any officer, in the trust principal or corpus account. market value of these assets. Include any director, trustee, foundation manager, or For organizations continuing to use the property, plant, and equipment owned other disqualified person. fund method of accounting, enter the fund and used by the organization to conduct Line 22 Other liabilities. List and balances for the organization s current its charitable activities. Attach a schedule show the amount of each liability not restricted and unrestricted funds. listing these fixed assets held at the end reportable on lines 17 through 21. Attach of the year and showing the cost or other Line 28 Paid-in or capital surplus, or a separate schedule if more space is basis, accumulated depreciation, and land, bldg., and equipment fund. Enter needed. book value of each item or category the balance per books for all paid-in listed. Lines 24 Through 30 Net capital in excess of par or stated value for all stock issued and uncancelled. If Line 15 Other assets. List and show Assets or Fund Balances stockholders or others gave donations the book value of each category of assets Organizations that follow SFAS 117. If that the organization records as paid-in not reportable on lines 1 through 14. the organization follows SFAS 117, check capital, include them here. Report any Attach a separate schedule if more space the box above line 24. Classify and report current-year donations you included on is needed. net assets in three groups unrestricted, line 28 in Part I, line 1. The fund balance One type of asset reportable on line 15 temporarily restricted, and permanently for the land, building, and equipment fund is program-related investments. These restricted based on the existence or would be entered here Form 990-PF Instructions

17 Line 29 Retained earnings, Nonoperating private foundations may The rules that generally apply to accumulated income, endowment, or not have to figure their short-term capital property dispositions reported in this part other funds. For corporations, enter the gain or loss on line 3. See the rules for are: balance in the retained earnings, or Nonoperating private foundations on Section 1011, Adjusted basis for similar account, minus the cost of any page 11. determining gain or loss. corporate treasury stock. For trusts, enter Private foundations must report gains Section 1012, Basis of property cost. the balance per books in the accumulated and losses from the sale or other Section 1014, Basis of property income or similar account. For disposition of property: acquired from a decedent. organizations using fund accounting, Held for investment purposes or Section 1015, Basis of property enter the total of the fund balances for the Used to produce unrelated business acquired by gifts and transfers in trust. permanent and term endowment funds as income; however, only include in net Section 1016, Adjustments to basis. well as balances of any other funds not investment income the part of the gain or To figure a loss, basis on the date of reported on lines 27 and 28. loss that is not included in the disposition is determined under normal Line 30 Total net assets or fund computation of its unrelated business basis rules. balances. For organizations that follow taxable income. The completed Form 990-PF in SFAS 117, enter the total of lines 24 Property held for investment Package 990-PF, Returns for Private through 26. For all other organizations, purposes. Property is treated as held for Foundations or Section 4947(a)(1) enter the total of lines 27 through 29. investment purposes if the property is of a Nonexempt Charitable Trusts Treated as Enter the beginning-of-year figure in type that generally produces interest, Private Foundations, contains an example column (a) on line 1, Part III. The dividends, rents, or royalties, even if the of a sale of investment property in which end-of-year figure in column (b) must foundation disposes of the property as the gain was computed using the donor s agree with the figure in Part III, line 6. soon as it receives it. basis under the rules of section 1015(a). Line 31 Total liabilities and net assets/fund balances. Enter the total of Charitable use property. Do not include Part V Qualification lines 23 and 30. This amount must equal any gain or loss from disposing of property used for the foundation s Under Section 4940(e) for the amount for total assets reported on line 16 for both the beginning and end of charitable purposes in the computation of Reduced Tax on Net the year. tax on net investment income. If the foundation uses property for its charitable Investment Income purposes, but also incidentally derives This part is used by domestic private Part III Analysis of income from the property that is subject to foundations (exempt and taxable) to Changes in Net Assets or the net investment income tax, any gain determine whether they qualify for the or loss from the sale or other disposition reduced 1% tax under section 4940(e) on Fund Balances of the property is not subject to the tax. net investment income rather than the 2% Generally, the excess of revenue over However, if the foundation uses tax on net investment income under expenses accounts for the difference property both for charitable purposes and section 4940(a). between the net assets at the beginning (other than incidentally) for investment Do not complete Part V if this is the and end of the year. purposes, include in the computation of organization s first year. A private On line 2, Part III, re-enter the figure tax on net investment income the part of foundation cannot qualify under section from Part I, line 27(a), column (a). the gain or loss from the sale or 4940(e) for its first year of existence, nor On lines 3 and 5, list any changes in disposition of the property that is allocable can a former public charity qualify for the net assets that were not caused by the to the investment use of the property. first year it is treated as a private receipts or expenses shown in Part I, foundation. Program-related investments. Do column (a). For example, if a foundation not include gains or losses from the sale A separate computation must be made follows FASB Statement No. 12 and or exchange of program-related for each year in which the foundation shows an asset in the ending balance investments as defined in the instructions wants to qualify for the reduced tax. sheet at a higher value than in the for Part IX-B. Line 1, column (b). Enter the amount of beginning balance sheet because of an adjusted qualifying distributions made for increased market value (after a larger Losses. If the disposition of investment each year shown. The amounts in column decrease in a prior year), include the property results in a loss, that loss may (b) are taken from Part XII, line 6 of the increase in Part III, line 3. be subtracted from capital gains realized Form 990-PF for If the organization uses a stepped-up from the disposition of property during the Line 1, column (c). Enter the net value basis to determine gains on sales of same tax year but only to the extent of the gains. If losses are more than gains, the of noncharitable-use assets for each year. assets included in Part I, column (a), then excess may not be subtracted from gross The amounts in column (c) are taken from include the amount of step-up in basis in investment income, nor may the losses Part X, line 5, for Part III. If you entered a contribution, gift, or grant of property valued at fair market be carried back or forward to other tax years. Part VI Excise Tax Based value on line 25 of Part I, column (a), the difference between fair market value and Basis. The basis for determining gain on Investment Income book value should be shown in the books from the sale or other disposition of (Section 4940(a), 4940(b), of account and as a net asset adjustment property is the larger of: in Part III. 1. The fair market value of the 4940(e), or 4948) Part IV Capital Gains and property on December 31, 1969, plus or minus all adjustments after December 31, General Rules Losses for Tax on 1969, and before the date of disposition, if Domestic exempt private foundations. the foundation held the property on that These foundations are subject to a 2% Investment Income date and continuously after that date until tax on net investment income under Use Part IV to figure the amount of net disposition or section 4940(a). However, certain exempt capital gain to report on lines 7 and 8 of 2. The basis of the property on the operating foundations described in Part I. date of disposition under normal basis section 4940(d)(2) may not owe any tax, Part IV does not apply to foreign rules (actual basis). See Code sections and certain private foundations that meet organizations the requirements of section 4940(e) may Form 990-PF Instructions -17-

18 qualify for a reduced tax of 1% (see the 1. It is an operating foundation Line 6b. Exempt foreign foundations Part V instructions). described in section 4942(j)(3), must enter the amount of tax withheld at Exception. The section 4940 tax does 2. It has been publicly supported for at the source. not apply to an organization making an least 10 tax years or was a private Line 6d. Enter the amount of any backup election under section 41(e)(6). Enter operating foundation on January 1, 1983, withholding erroneously withheld. N/A in Part VI. or for its last tax year ending before Recipients of interest or dividend January 1, 1983, payments must generally certify their Domestic taxable private foundations 3. Its governing body, at all times correct tax identification number to the and section 4947(a)(1) nonexempt during the tax year, consists of individuals bank or other payer on Form W-9, charitable trusts. These organizations less than 25% of whom are disqualified Request for Taxpayer Identification are subject to a modified 2% tax on net individuals, and is broadly representative Number and Certification. If the payer investment income under section 4940(b). of the general public, and does not get this information, it must (See Part V and its instructions to find out 4. It has no officer who was a withhold part of the payments as backup if they meet the requirements of section disqualified individual at any time during withholding. If the organization files Form 4940(e) that allows them to use a the tax year. 990-PF and was subject to erroneous modified 1% tax on net investment backup withholding because the payer did income.) However, they must first Line 2 Section 511 tax. Under section not realize the payee was an exempt compute the tax under section 4940(a) as 4940(b), a domestic section 4947(a)(1) organization and not subject to this if that tax applied to them. nonexempt charitable trust or taxable withholding, the organization can claim Foreign organizations. Under section private foundation must add to the tax credit for the amount withheld. 4948, exempt foreign private figured under section 4940(a) (on line 1) foundations are subject to a 4% tax on the tax which would have been imposed Do not claim erroneous backup their gross investment income derived under section 511 for the tax year if it had! withholding on line 6d if you claim CAUTION from U.S. sources. been exempt from tax under section it on Form 990-T. 501(a). If the domestic section 4947(a)(1) Taxable foreign private foundations Line 8 Penalty. Enter any penalty for nonexempt charitable trust or taxable that filed Form 1040NR, U.S. underpayment of estimated tax shown on private foundation has unrelated business Nonresident Alien Income Tax Return, or Form Form 2220 is used by both taxable income that would have been Form 1120-F, U.S. Income Tax Return of corporations and trusts. subject to the tax imposed by section 511, a Foreign Corporation, enter N/A in Part the computation of tax must be shown in Line 9 Tax due. Domestic foundations VI. an attachment. Form 990-T may be used should see General Instruction P. Estimated tax. Domestic exempt and as the attachment. All other filers, enter All foreign organizations should taxable private foundations and section zero. enclose a check or money order (in U.S. 4947(a)(1) nonexempt charitable trusts funds), made payable to the United may have to make estimated tax Line 4 Subtitle A tax. Domestic States Treasury, with Form 990-PF. payments for the excise tax based on section 4947(a)(1) nonexempt charitable trusts and taxable private foundations, Amended return. If you are amending investment income. See General enter the amount of subtitle A (income) Part VI, be sure to combine any tax due Instruction O for more information. tax for the year reported on Form 1041 or that was paid with the original return (or Form All other filers, enter zero. any overpayment credited or refunded) in Tax Computation the total for line 7. On the dotted line to Line 5 Tax based on investment the left of the line 7 entry space, write Line 1a only applies to domestic income. Subtract line 4 from line 3 and Tax Paid w/ O.R. and the amount paid.! exempt operating foundations that enter the difference (but not less than If you had an overpayment, write O.R. CAUTION are described in section zero) on line 5. Any overpayment entered Overpayment and the amount credited or 4940(d)(2) and that have a ruling letter on line 10 that is the result of a negative refunded in brackets. from the IRS establishing exempt amount shown on line 5 will not be operating foundation status. If your If you file more than one amended refunded. Unless the organization is a organization does not have this letter, return, attach a schedule listing the tax domestic section 4947(a)(1) nonexempt skip line 1a. due amounts that were paid and charitable trust or taxable private overpayment amounts that were credited Line 1a. A domestic exempt private foundation, the amount on line 5 is the or refunded. Write See Attachment on foundation that qualifies as an exempt same as on line 1. the dotted line and enter the net amount operating foundation under section Line 6a. Enter the amount of 2003 in the entry space for line (d)(2) is not liable for any tax on net estimated tax payments, and any 2002 investment income on this return. overpayment of taxes that the Part VII-A Statements If your organization qualifies, check the organization specified on its 2002 return Regarding Activities box and enter the date of the ruling letter to be credited toward payment of 2003 on line 1a and enter N/A on line 1. estimated taxes. Each question in this section must be Leave the rest of Part Vl blank. For the answered Yes, No, or N/A (not first year, the organization must attach a Line 6a applies only to domestic applicable). copy of the ruling letter establishing! organizations. Line 1. Political purposes include, but are CAUTION exempt operating foundation status. As not limited to: directly or indirectly long as the organization retains this Trust payments treated as accepting contributions or making status, write the date of the ruling letter in beneficiary payments. A trust may treat payments to influence the selection, the space on line 1a. If the organization any part of estimated taxes it paid as nomination, election, or appointment of no longer qualifies under section taxes paid by the beneficiary. If the filing any individual to any Federal, state, or 4940(d)(2), leave the date line blank and organization was a beneficiary that local public office or office in a political compute the section 4940 tax in the received the benefit of such a payment organization, or the election of normal manner. from a trust, include the amount on line presidential or vice presidential electors, Qualification. To qualify as an 6a of Part VI, and write, Includes section whether or not the individual or electors exempt operating foundation for a tax 643(g) payment. See section 643(g) for are actually selected, nominated, elected, year, an organization must meet the more information about estimated tax or appointed. following requirements of section payments treated as paid by a Line 3. A conformed copy of an 4940(d)(2): beneficiary. organizational document is one that -18- Form 990-PF Instructions

19 agrees with the original document and all persons who became substantial well as tax-exempt interest received its amendments. If copies are not signed, contributors during the year. directly. attach a written declaration signed by an The term substantial contributor officer authorized to sign for the means any person whose contributions or organization, certifying that they are bequests during the current tax year and complete and accurate copies of the prior tax years total more than $5,000 and original documents. Part VII-B Activities for Which Form 4720 May Be Required are more than 2% of the total Line 6. For a private foundation to be contributions and bequests received by The purpose of these questions is to exempt from income tax, its governing the foundation from its creation through determine if there is any initial excise tax instrument must include provisions that the close of its tax year. In the case of a due under sections 170(f)(10), require it to act or refrain from acting so trust, the term substantial contributor , and section If the as not to engage in an act of self-dealing also means the creator of the trust answer is Yes to question 1b, 1c, 2b, (section 4941), or subject the foundation (section 507(d)(2)). 3b, 4a, 4b, 5b, or 6b, complete and file to the taxes imposed by sections 4942 The term person includes individuals, Form 4720, unless an exception applies. (failure to distribute income), 4943 trusts, estates, partnerships, associations, (excess business holdings), 4944 Line 1 Self-dealing. The activities corporations, and other exempt (investments which jeopardize charitable listed in 1a(1) (6) are considered organizations. purpose), and 4945 (taxable self-dealing under section 4941 unless expenditures). A private foundation may Each contribution or bequest must be one of the exceptions applies. See Pub. satisfy these section 508(e) requirements valued at fair market value on the date it 578. either by express language in its was received. The terms disqualified person and governing instrument or by application of Any person who is a substantial foundation manager are defined in state law that imposes the above contributor on any date will remain a General Instruction C. requirements on the foundation or treats substantial contributor for all later periods. Line 1b. If you answered Yes to any of these requirements as being contained in However, a person will cease to be a the questions in 1a, you should answer the governing instrument. If an substantial contributor with respect to any Yes to 1b unless all of the acts engaged organization claims it satisfies the private foundation if: in were excepted acts. Excepted acts requirements of section 508(e) by 1. The person, and all related are described in Regulations sections operation of state law, the provisions of persons, made no contributions to the (d)-3 and 4 or appear in Notices state law must effectively impose the foundation during the 10-year period published in the Internal Revenue section 508(e) requirements on the ending with the close of the taxable year; Bulletin, relating to disaster assistance. organization. See Rev. Rul , C.B.161, for a list of states with 2. The person, or any related person, Line 2 Taxes on failure to distribute legislation that satisfies the requirements was never the foundation s manager income. If you answer No to question of section 508(e). during this 10-year period; and 2b, attach a statement explaining: 3. The aggregate contributions made However, if the state law does not 1. All the facts regarding the incorrect by the person, and related persons, are apply to a governing instrument that valuation of assets and determined by the IRS to be insignificant contains mandatory directions conflicting 2. The actions taken (or planned) to compared to the aggregate amount of with any of its requirements and the comply with section 4942(a)(2)(B), (C), contributions to the foundation by any organization has such mandatory and (D) and the related regulations. other person and the appreciated value of directions in its governing instrument, contributions held by the foundation. then the organization has not satisfied the Line 3a. A private foundation is not requirements of section 508(e) by the The term related person includes any treated as having excess business operation of that legislation. other person who would be a disqualified holdings in any enterprise if, together with person because of a relationship with the related foundations, it owns 2% or less of Line 8a. In the space provided list all substantial contributor (section 4946). the voting stock and 2% or less in value states: When the substantial contributor is a of all outstanding shares of all classes of 1. To which the organization reports in corporation, the term also includes any stock. (See disqualified person under any way about its organization, assets, or officer or director of the corporation. The General Instruction C.) A similar activities and term substantial contributor does not exception applies to a beneficial or profits 2. With which the organization has include public charities (organizations interest in any business enterprise that is registered (or which it has otherwise described in section 509(a)(1), (2), or (3)). a trust or partnership. notified in any manner) that it intends to Line 11 Public inspection For more information about excess be, or is, a charitable organization or that requirements and web site address. All business holdings, see Pub. 578 and the it is, or intends to be, a holder of property domestic private foundations (including instructions for Form devoted to a charitable purpose. section 4947(a)(1) nonexempt charitable Line 4 Taxes on investments that Attach a separate list if you need more trusts treated as private foundations) are jeopardize charitable purposes. In space. subject to the public inspection general, an investment that jeopardizes Line 9. If the organization claims status requirements. See General Instruction Q any of the charitable purposes of a private as a private operating foundation for 2003 for information on making the foundation s foundation is one for which a foundation and, in fact, meets the private operating annual returns and exemption application manager did not exercise ordinary foundation requirements for that year (as available for public inspection. business care to provide for the long- and reflected in Part XIV), any excess Enter the foundation s web site short-term financial needs of the distributions carryover from 2002 or prior address if the foundation has a web site. foundation in carrying out its charitable years may not be carried over to 2003 or Otherwise, enter N/A. purposes. For more details, see Pub. 578 any year after 2003 in which it does not Line 13 Section 4947(a)(1) trusts. and the regulations under section meet the private operating foundation Section 4947(a)(1) nonexempt charitable Line 5 Taxes on taxable requirements. See the instructions for trusts that file Form 990-PF instead of expenditures and political Part XIII. Form 1041 must complete this line. The expenditures. In general, payments Line 10 Substantial contributors. If trust should include exempt-interest made for the activities described on lines you answer Yes, attach a schedule dividends received from a mutual fund or 5a(1) (5) are taxable expenditures. See listing the names and addresses of all other regulated investment company as Pub. 578 for exceptions. Form 990-PF Instructions -19-

20 A grant by a private foundation to a benefit contract, or there is an Column (c). Enter salary, fees, public charity is not a taxable expenditure understanding or expectation that any bonuses, and severance payments if the private foundation does not earmark person will directly or indirectly pay these received by each person listed. Include the grant for any of the activities premiums. current year payments of amounts described in lines 5a(1) (5), and there is Report the premiums it paid and the reported or reportable as deferred no oral or written agreement by which the premiums paid by others, but treated as compensation in any prior year. grantor foundation may cause the grantee paid by the private foundation, on Form Column (d). Include all forms of to engage in any such prohibited activity 8870 and pay the excise tax (which is deferred compensation and future or to select the grant recipient. equal to premiums paid) on Form severance payments (whether or not Grants made to exempt operating For more information, see Form 8870 funded or vested, and whether or not the foundations (as defined in section and Notice , I.R.B deferred compensation plan is a qualified 4940(d)(2) and the instructions to Part VI) plan under section 401(a)). Include are not subject to the expenditure payments to welfare benefit plans responsibility provisions of section Part VIII Information (employee welfare benefit plans covered Under section 4955, a section About Officers, Directors, by Part I of Title 1 of ERISA, providing 501(c)(3) organization must pay an excise benefits such as medical, dental, life Trustees, Foundation tax for any amount paid or incurred on insurance, apprenticeship and training, behalf of or opposing any candidate for Managers, Highly Paid scholarship funds, severance pay, public office. The organization must pay disability, etc.) on behalf of the officers, an additional excise tax if it does not Employees, and etc. Reasonable estimates may be used if correct the expenditure timely. Contractors precise cost figures are not readily available. A manager of a section 501(c)(3) Line 1 List of officers, directors, organization who knowingly agrees to a Unless the amounts are reported in trustees, etc. List the names, addresses, political expenditure must pay an excise column (c), report, as deferred and other information requested for those tax unless the agreement is not willful and compensation in column (d), salaries and who were officers, directors, and trustees there is reasonable cause. A manager other compensation earned during the (or any person who had responsibilities or who does not agree to a correction of the period covered by the return, but not yet powers similar to those of officers, political expenditure may have to pay an paid by the date the foundation files its directors, or trustees) of the foundation at additional excise tax. return. any time during the year. Each must be A section 501(c)(3) organization will listed whether or not they receive any Column (e). Enter both taxable and lose its exempt status if it engages in compensation from the foundation. Give nontaxable fringe benefits, expense political activity. the preferred address at which officers, account and other allowances (other than A political expenditure that is treated etc., want the Internal Revenue Service to de minimis fringe benefits described in as an expenditure under section 4955 is contact them. section 132(e)). See Pub. 525 for more not treated as a taxable expenditure information. Examples of allowances Also include on this list, any officers or under section include amounts for which the recipient directors (or any person who had did not account to the organization or For purposes of the section 4955 tax, responsibilities or powers similar to those allowances that were more than the when an organization promotes a of officers or directors) of a disregarded payee spent on serving the organization. candidate for public office (or is used or entity owned by the foundation who are Include payments made in connection controlled by a candidate or prospective not officers, directors, etc., of the with indemnification arrangements, the candidate), amounts paid or incurred for foundation. value of the personal use of housing, the following purposes are political If the foundation (or disregarded entity) automobiles, or other assets owned or expenditures: pays any other person, such as a leased by the organization (or provided 1. Remuneration to the individual (or management services company, for the for the organization s use without charge). candidate or prospective candidate) for services provided by any of the Line 2 Compensation of five speeches or other services. foundation s officers, directors, or trustees highest-paid employees. Fill in the 2. Travel expenses of the individual. (or any person who had responsibilities or information requested for the five 3. Expenses of conducting polls, powers similar to those of officers, employees (if any) of the foundation (or surveys, or other studies, or preparing directors, or trustees), report the disregarded entity that the foundation papers or other material for use by the compensation and other items on Part owns) who received the greatest amount individual. VIII as if you had paid the officers, etc., of annual compensation over $50,000. Do 4. Expenses of advertising, publicity, directly. not include employees listed on line 1. and fundraising for such individual. Show all forms of compensation Also enter the total number of other 5. Any other expense that has the earned by each listed officer, etc. In employees who received more than primary effect of promoting public addition to completing Part VIII, if you $50,000 in annual compensation. recognition or otherwise primarily want to explain the compensation of one accruing to the benefit of the individual. Show each listed employee s entire or more officers, directors, and trustees, compensation package for the period See the regulations under section you may provide an attachment covered by the return. Include all forms of 4945 for more information. describing the person s entire 2003 compensation that each listed employee Line 5b. If you answered Yes to any of compensation package. received in return for his or her services. the questions in 5a, you should answer Enter zero in columns (c), (d), and (e) See the line 1 instructions for more details Yes to 5b unless all of the transactions if no compensation was paid. Attach a on includible compensation. engaged in were excepted transactions. schedule if more space is needed. Line 3 Five highest-paid independent Excepted transactions are described in Column (b). A numerical estimate of contractors for professional services. Regulations section or appear in the average hours per week devoted to Fill in the information requested for the Notices published in the Internal Revenue the position is required for the answer to five highest-paid independent contractors Bulletin, relating to disaster assistance. be considered complete. (if any), whether individuals or Line 6b. Check Yes if, in connection professional service corporations or with any transfer of funds to a private foundation, the foundation directly or indirectly pays premiums on any personal! CAUTION Phrases such as as needed or as required are unacceptable entries for column (b). associations, to whom the organization paid more than $50,000 for the year to perform personal services of a -20- Form 990-PF Instructions