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Part III. Grants or

schools.) Grants that are awards

to interested persons in separate lines.

recognizing past achievements also are

For each line, the school should report in

Assistance Benefiting

not excluded from reporting under this

column (c) the aggregate dollar amount of

Interested Persons

exception. Grants for travel, study, or

each type of assistance, the type of

similar purposes do not include such

assistance in column (d), and the purpose

Report each grant or other assistance

purposes as short-term disaster relief,

of the assistance in column (e), unless

(including provision of goods, services, or

poverty relief, or trauma counseling.

such reporting would be an unauthorized

use of facilities), regardless of amount,

Grants or assistance to a section 501(c)

disclosure of student education records

provided by the organization to any

under the Family Educational Rights and

(3) organization.

interested person at any time during the

Privacy Act (FERPA). Columns (a) and (b)

organization's tax year. Examples of

Column (a). Enter the name of the

should be left blank for these lines.

grants are scholarships, fellowships,

interested person that benefitted from the

discounts on goods or services,

grant or assistance. If the person has

Part IV. Business

internships, prizes, and awards. A grant

status as an interested person only

Transactions Involving

includes the gift portion of a part-sale,

because the person is a substantial

part-gift transaction.

Interested Persons

contributor, a family member of a

substantial contributor, a 35% controlled

See Reasonable effort earlier,

Report in Part IV business transactions for

entity of a substantial contributor, or an

applicable to Part III.

which payments were made during the

TIP

employee of a substantial contributor or

organization's tax year between the

35% controlled entity of a substantial

organization and an interested person, if

Exceptions. Do not report the following

contributor, then enter the term

such payments exceeded the reporting

in Part III:

“substantial contributor” or “related to

thresholds described below, and

Excess benefit transactions reported

substantial contributor” (as the case may

regardless of when the transaction was

in Schedule L, Part I.

be) instead of the interested person's

entered into by the parties. The “ordinary

Loans reported (or not required to be

name, in order to protect the

course of business” exception to reporting

reported) in Schedule L, Part II.

confidentiality of the substantial

business relationships on Form 990, Part

Business transactions that do not

contributor.

VI, line 2, does not apply for purposes of

contain any gift element and that are

Column (b). Describe the relationship

Schedule L, but see the exception below

engaged in to serve the direct and

between the interested person that

for publicly-traded companies.

immediate needs of the organization, such

benefitted from the grant or assistance

as payment of compensation (including

In general, an organization must report

and the organization, such as “spouse of

taxable and nontaxable fringe benefits

business transactions in Part IV with an

Director John Smith.” If “substantial

treated as compensation) to an employee

interested person if: (1) all payments

contributor” was entered in column (a),

or independent contractor in exchange

during the tax year between the

enter “substantial contributor” here as well.

for services of comparable value. Some

organization and the interested person

If “related to substantial contributor” was

business transactions may be reportable

exceeded $100,000; (2) all payments

entered in column (a), then describe the

on Schedule L, Part IV.

during the tax year from a single

relationship without referring to specific

Compensation to a person listed in

transaction between such parties

names, for example: “child of employee of

Form 990, Part VII, Section A (including

exceeded the greater of $10,000 or 1% of

35% controlled entity of substantial

taxable and nontaxable fringe benefits

the filing organization's total revenue for

contributor.”

treated as compensation).

the tax year; (3) compensation payments

If an interested person has interested

Grants to employees (and their

during the tax year by the organization to a

person status other than by being a

children) of a substantial contributor or

family member of a current or former

substantial contributor or related to a

35% controlled entity of a substantial

officer, director, trustee, or key employee

substantial contributor, then make no

contributor, awarded on an objective and

of the organization listed in Form 990, Part

reference to the substantial contributor

nondiscriminatory basis based on

VII, Section A exceeded $10,000; or (4) in

status. For example, if grantee Jane Smith

pre-established criteria and reviewed by a

the case of a joint venture with an

is both a substantial contributor and the

selection committee, as described in

interested person, the organization has

spouse of Director John Smith, then she

Regulations section 53.4945-4(b).

invested $10,000 or more in the joint

must be listed by name in column (a), and

Grants or assistance provided to an

venture, whether or not during the tax

column (b) must state “spouse of Director

interested person as a member of the

year, and the profits or capital interest of

John Smith” or words to similar effect.

charitable class or other class (such as a

the organization and of the interested

member of a section 501(c)(5), 501(c)(6),

person each exceeds 10% at some time

Column (c). Enter the total dollar amount

or 501(c)(7) organization) that the

during the tax year.

of grants and other assistance provided to

organization intends to benefit in

the interested person during the

Business transactions. Business

furtherance of its exempt purpose, if

organization's tax year.

transactions include but are not limited to

provided on similar terms as provided to

joint ventures and contracts of sale, lease,

Column (d). Describe the type of

other members of the class, such as

license, insurance, and performance of

assistance provided to the interested

short-term disaster relief, poverty relief, or

services, whether initiated during the

person.

trauma counseling. However, grants for

organization's tax year or ongoing from a

travel, study (such as scholarships or

Column (e). Describe the organization's

prior year.

fellowships), or other similar purposes

purpose in providing assistance to the

(such as to achieve a specific objective,

Certain management company trans-

interested person.

produce a report or other similar product,

actions with former officers, etc. A

Schools. Colleges, universities, and

or improve or enhance a literary, artistic,

business transaction also includes a

primary and secondary schools are not

musical, scientific, teaching, or other

transaction between the organization and

required to identify interested persons to

similar capacity, skill, or talent of the

a management company of which a

whom they provided scholarships,

grantee) like those described in section

former officer, director, trustee, or key

fellowships, and similar financial

4945(d)(3) are not excluded from

employee of the organization (within the

assistance. Instead, these organizations

reporting under this exception.

last five tax years, even if not listed in

must, in Part III, group each type of

(But see Schools, later, for instructions on

Form 990, Part VII, Section A, because the

financial assistance (for example,

how to report grants, scholarships, and

individual did not receive any

need-based scholarships, merit

other assistance from colleges,

compensation from the organization) is a

scholarships, discounted tuition) provided

universities, primary, and secondary

direct or indirect 35% owner (as measured

Instructions for Schedule L

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Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2015 Page 3

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