Instructions For Form 5227 (Page 7 of 15) in pdf

connection with an activity functionally related to the

Part IV. Balance Sheet

trust’s charitable purposes may be reported as a single

Complete the balance sheet using the accounting

total for all the officers, directors, etc. Travel advances

method the trust uses in keeping its books and records.

made in connection with official business of the trust may

All filers must complete columns (a) and (b). Also, all

also be reported as a single total.

charitable remainder unitrusts must complete column (c).

For each outstanding loan or other receivable that

Enter the end-of-year book value where space is

must be reported separately, the attached schedule

provided to the left of column (a) to report receivables

should use a columnar format and show the following

and the related allowance for doubtful accounts or

information:

depreciable assets and accumulated depreciation. Enter

•

Borrower’s name and title,

the net amounts in column (b).

•

Original amount,

•

Column (c)

Balance due,

•

Date of note,

In computing the net fair market value (FMV) of the

•

Maturity date,

unitrust’s assets, take into account all assets and

•

Repayment terms,

liabilities without regard to whether particular items are

•

Interest rate,

taken into account in determining the income of the trust.

•

Security provided by the borrower,

The net FMV of the trust’s assets may be determined on

•

Purpose of the loan, and

any one date during the tax year of the trust, or by taking

•

Description and FMV of the consideration furnished by

the average of valuations made on more than one date

the lender.

during the tax year of the trust, as long as the same

valuation date or dates and valuation methods are used

The above detail is not required for receivables or

each year. See Regulations section 1.664-3.

travel advances that may be reported as a single total

(see instruction (2) above). However, report and identify

Line 38. Cash —non-interest-bearing. Enter the

those totals separately in the attachment.

amount of cash on deposit in checking accounts,

deposits in transit, change funds, petty cash funds, or

Line 42. Other notes and loans receivable. Enter the

any other non-interest-bearing account. Do not include

combined total of notes receivable and net loans

receivable.

advances to employees or officers or refundable deposits

paid to suppliers or others.

Notes receivable. Enter the amount of all notes

Line 39. Savings and temporary cash investments.

receivable not listed on line 41 and not acquired as

investments. Attach a schedule similar to that called for in

Enter the total of cash in savings or other interest-bearing

the line 41 instructions. The schedule should also identify

accounts and temporary cash investments, such as

money market funds, commercial paper, certificates of

the relationship of the borrower to any officer, director,

trustee, or other disqualified person.

deposit, U.S. Treasury bills, or other governmental

obligations that mature in less than one year.

For a note receivable from any section 501(c)(3)

Line 40. Accounts receivable. Enter the total accounts

organization, list only the name of the borrower and the

receivable (reduced by the corresponding allowance for

balance due on the required schedule.

doubtful accounts) that arose from the sale of goods and/

Loans receivable. Enter the gross amount of loans

or the performance of services. Claims against vendors

receivable, less the allowance for doubtful accounts,

or refundable deposits with suppliers or others may be

arising from the normal activities of the trust. An itemized

reported here if not significant in amount. (Otherwise,

list of these loans is not required, but attach a schedule

report them on line 49, Other assets.) Any receivables

indicating the total amount of each type of loan

due from officers, directors, trustees, foundation

outstanding. Report loans to officers, directors, trustees,

managers, or other disqualified persons must be reported

or other disqualified persons on line 41, and loans to

on line 41. Receivables (including loans and advances)

other employees on line 49.

due from other employees should be reported on line 49.

Line 43. Inventories for sale or use. Enter the amount

Line 41. Receivables due from officers, directors,

of materials, goods, and supplies purchased or

trustees, and other disqualified persons. Enter here

manufactured by the trust and held for sale or use in

(and in an attached schedule described below) all

some future period.

receivables due from officers, directors, trustees, and

Line 44. Prepaid expenses and deferred charges.

other disqualified persons and all secured and unsecured

Enter the amount of short-term and long-term

loans (including advances) to such persons.

prepayments of future expenses attributable to one or

Attached schedule.

more future accounting periods. Examples include

prepayments of rent, insurance, and pension costs, and

1. In the required schedule, report each loan

separately, even if more than one loan was made to the

expenses incurred in connection with a solicitation

campaign to be conducted in a future accounting period.

same person, or the same terms apply to all loans made.

Salary advances and other advances for personal use

Lines 45a, b, and c. Investments —U.S. and state

and benefit, and receivables subject to special terms or

government obligations, corporate stock, and

arising from transactions not functionally related to the

corporate bonds. Enter the book value (which may be

trust’s charitable purposes must be reported as separate

market value) of these investments. Attach a schedule

loans for each officer, director, etc.

that lists each security held at the end of the year and

2. Receivables that are subject to the same terms and

shows whether the security is listed at cost (including the

conditions (including credit limits and rate of interest) as

value recorded at the time of receipt in the case of

receivables due from the general public and that arose in

donated securities) or end-of-year market value. Do not

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Instructions For Form 5227 Page 7

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