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4942(g)(4)(B)) if a disqualified person of

individually liable for the entire tax in

Expenses of conducting polls,

the foundation controls such supporting

connection with the expenditure.

surveys, or other studies, or preparing

organization or the supported

However, the foundation managers who

papers or other material for use by the

organizations of such supporting

are liable for the tax may prorate the

individual;

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organizations, and

payment among themselves. Enter in

Expenses of advertising, publicity,

b. Type III supporting organizations

column (c) the tax each foundation

and fundraising for such individual; and

•

(as described in section 4943(f)(5)(B))

manager will pay.

Any other expense which has the

that are not functionally integrated with

primary effect of promoting public

Carry the total amount in column (d)

its supported organizations; or

recognition or otherwise primarily

for each foundation manager to Part

accruing to the benefit of the individual.

5. For any purpose other than

II-A, column (e).

religious, charitable, scientific, literary,

Initial tax on organization or

educational, or public purposes, or the

foundation. The initial tax on the

prevention of cruelty to children or

organization or foundation is 10% of the

Schedule F—Initial

animals.

amount involved.

Taxes on Political

Initial tax on organization managers

Exceptions. Section 4945(d)(4)(B)

or foundation managers. An initial

Expenditures (Section

provides an exception to taxable

tax of 2

% of the amount involved (up

expenditures that applies to certain

4955)

to $5,000 of tax on any one

grants to organizations when the

expenditure) is imposed on any

granting foundation exercises

manager who agrees to an expenditure,

General Instructions

expenditure responsibility described in

knowing that it is a political expenditure,

section 4945(h). Additional information

Requirement. Complete Schedule F if

unless the agreement is not willful and

on special rules and exceptions to the

you answered “Yes,” to question 5a(2)

is due to reasonable cause.

definition of taxable expenditures given

and 5b of Form 990-PF, Part VII-B.

above can be found at

Any manager who agreed to the

Complete Schedule F if you entered an

expenditure must pay the tax.

gov/irm/part7/irm_07-027-019.html.

amount on line 2 of Schedule C (Form

Initial tax on foundation. An initial

990 or 990-EZ), Part 1-A. Complete

Specific Instructions

tax of 20% is imposed on each taxable

Schedule F if you are otherwise a

expenditure of the foundation.

Part I. Complete this part for all

section 501(c)(3) organization that

political expenditures.

Initial tax on foundation managers.

made a political expenditure.

When a tax is imposed on a taxable

Part II. Enter in column (a) the names

Political expenditures. These include

expenditure of the foundation, a tax of

of all managers who took part in

any amount paid or incurred by a

5% of the expenditure will be imposed

making the political expenditures listed

section 501(c)(3) organization that

on any foundation manager who

in Part I. See Initial tax on organization

participates or intervenes in (including

agreed to the expenditure and who

managers or foundation managers

the publication or distribution of

knew that it was a taxable expenditure.

above.

statements) any political campaign on

Foundation managers whose

If more than one manager is listed in

behalf of, or in opposition to, any

participation was not willful and was

candidate for public office. The tax is

column (a), each is individually liable for

due to reasonable cause are not liable

the entire amount of tax on the

imposed even if the political

for the tax. Any foundation manager

expenditure gives rise to a revocation

expenditure. However, the managers

who took part in the expenditure and is

of the organization’s section 501(c)(3)

who are liable for the tax may prorate

liable for the tax must pay the tax. The

status.

payment among themselves. Enter in

maximum total amount of tax on all

column (c) the tax each manager will

foundation managers for any one

These taxes apply in the case of

pay.

taxable expenditure is $10,000. If more

both public charities and private

Carry the total amount in column (d)

than one foundation manager is liable

foundations. When tax is imposed

for each manager to Part II-A, column

for tax on a taxable expenditure, all

under this provision in the case of a

(f).

private foundation, however, the

those foundation managers are jointly

and severally liable for the tax.

expenditure in question will not be

treated as a taxable expenditure under

Specific Instructions

Schedule G—Tax on

section 4945.

Part I. Complete this part for all

Excess Lobbying

For an organization formed primarily

taxable expenditures. Enter in column

to promote the candidacy or

Expenditures (Section

(f) the number designation from Form

prospective candidacy of an individual

990-PF, Part VII-B, question 5a, or

for public office (or that is effectively

4911)

Form 5227, Part VI-B, question 79a,

controlled by a candidate or prospective

that applies to the act; for example,

Requirement. Schedule G must be

candidate and is used primarily for such

“5a(1).”

purposes), amounts paid or incurred for

completed by eligible section 501(c)(3)

Part II. Enter in column (a) the names

any of the following purposes are

organizations that elected to be subject

of all foundation managers who agreed

deemed political expenditures:

to the limitations on lobbying

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to make the taxable expenditure. See

Remuneration to the candidate or

expenditures under section 501(h) and

Initial tax on foundation managers

prospective candidate for speeches or

that made excess lobbying

above. If more than one foundation

other services;

expenditures as defined in section

•

manager is listed in column (a), each is

Travel expenses of the individual;

4911(b).

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Form 4720 Instructions

Instructions For Form 4720 - Return Of Certain Excise Taxes - Department Of The Treasury - 2011 Page 12

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