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2015

Department of the Treasury

Internal Revenue Service

Instructions for Schedule L

(Form 990 or 990-EZ)

Transactions With Interested Persons

Section references are to the Internal Revenue

must attach Schedule L to Form 990 or

to be listed on Form 990-EZ, Part IV. For

Code unless otherwise noted.

990-EZ.

purposes of reporting management

company transactions in Part IV, however,

Future Developments

Note. The organization should answer

a former officer, director, trustee, or key

“Yes” to Form 990, Part IV, lines 28a, 28b,

employee of the organization within the

or 28c, only if the party to the transaction

For the latest information about

last five tax years is treated as an

was an “interested person” as defined in

developments related to Form 990 and its

interested person whether or not required

these instructions, and the threshold

instructions, such as legislation enacted

to be so listed.

amounts described in the specific

after they were published, go to

2. The creator or founder of the

instructions to Schedule L, Part IV (later)

organization, including the sponsoring

are met.

organizations of a Voluntary Employees'

General Instructions

If an organization is not required to file

Beneficiary Association (VEBA).

Form 990 or 990-EZ but chooses to do so,

Note. Terms in bold are defined in the

3. A substantial contributor. For

it must file a complete return and provide

Glossary of the Instructions for Form 990.

purposes of Schedule L, Parts II-IV, a

all of the information requested, including

substantial contributor is an individual or

the required schedules.

Purpose of Schedule

organization that made contributions

during the tax year in the aggregate of at

Schedule L (Form 990 or 990-EZ) is used

Specific Instructions

least $5,000 and is required to be reported

by an organization that files Form 990 or

by name in Schedule B (Form 990,

990-EZ to provide information on certain

For Parts I, II, and III, report all

990-EZ, or 990-PF), Schedule of

financial transactions or arrangements

transactions regardless of amount. Part IV

Contributors, for the organization’s tax

between the organization and

instructions provide individual and total

year. A substantial contributor may include

disqualified person(s) under section

reporting thresholds below which reporting

an employer that contributes to a VEBA.

4958 or other interested persons.

is not required for an interested person.

Schedule L is also used to determine

4. For purposes of Part III, a member

whether a member of the organization's

Each reportable transaction is to be

of the organization’s grant selection

governing body is an independent

reported in only one part of Schedule L, as

committee.

member for purposes of Form 990, Part

described below.

5. A family member of any individual

VI, line 1b.

described above.

Interested persons. For purposes of

Supplemental information. Parts I-IV

Part I, an interested person is a

6. A 35% controlled entity of one or

can be duplicated if additional space is

disqualified person under section 4958.

more individuals and/or organizations

needed. Also, Part V may be used to

For purposes of Parts II-IV, an interested

described above.

explain a transaction or to provide

person is one of the following:

7. For purposes of Part III, an

additional information.

1. For Form 990 filers, a person

employee (or child of an employee) of a

required to be listed in Form 990, Part VII,

substantial contributor or of a 35%

Who Must File

Section A as a current or former officer,

controlled entity of such person, but only if

The chart at the bottom of this page

director, trustee, or key employee, and

the employee (or child of an employee)

provides which organizations must

for Form 990-EZ filers, a current officer,

received the grant or assistance by the

complete all or a part of Schedule L and

director, trustee, or key employee required

direction or advice of the substantial

contributor or designee or of the 35%

controlled entity, or under a program

Type of filer

IF you answer “Yes” to

THEN you must

. . . .

funded by the substantial contributor that

complete

. . . . . . . . . . .

was intended primarily to benefit such

employees (or their children).

Section 501(c)(3), 501(c)(4), or

Form 990, Part IV, line 25a or 25b

Schedule L, Part I.

501(c)(29) organization

(regarding excess benefit

An interested person for purposes of

transactions)

Parts II-IV does not include a section

Section 501(c)(3), 501(c)(4), or

Form 990-EZ, Part V, line 40b

Schedule L, Part I.

501(c)(3) organization, an exempt

501(c)(29) organization

(regarding excess benefit

organization with the same tax-exempt

transactions)

status (for example, section 501(c)(3) or

527 status) as the filing organization, or a

All organizations

Form 990, Part IV, line 26 (regarding

Schedule L, Part II.

governmental unit or instrumentality.

loans)

Treat as a section 501(c)(3) organization a

All organizations

Form 990-EZ, Part V, line 38a

Schedule L, Part II.

foreign organization for which the filing

(regarding loans)

organization has made a reasonable

All organizations

Form 990, Part IV, line 27 (regarding

Schedule L, Part III.

judgment (or has an opinion of U.S.

grants)

counsel) that the foreign organization is

described in section 501(c)(3).

All organizations

Form 990, Part IV, line 28a, 28b, or

Schedule L, Part IV.

28c (regarding business

Reasonable effort. The organization is

transactions)

not required to provide information about a

transaction if it is unable to secure

Nov 10, 2015

Cat. No. 51522J

Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2015

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