Instructions For Schedule A (Form 990 Or 990-Ez)

Line 7. Hospital or Cooperative

a substantial contributor for all future

one or more states or their political

Hospital Service Organization. Check

periods even if later contributions by

subdivisions. The school must be as

the box on line 7 for an organization

others push that person’s contributions

described in the first paragraph of the

whose main purpose is to provide hospital

below the 2% figure discussed above.

instructions for line 6.

•

or medical care. A rehabilitation institution

Gifts from the contributor’s spouse

or an outpatient clinic may qualify as a

Expending funds to benefit a college or

are treated as gifts from the contributor.

•

hospital, but the term does not include

university includes acquiring and

Gifts are generally valued at fair

medical schools, medical research

maintaining the campus, its buildings, and

market value as of the date the

organizations, convalescent homes,

its equipment, granting scholarships and

organization received them.

homes for the aged, or vocational training

student loans, and making any other

2. An officer, director, or trustee of

institutions for the handicapped.

payments in connection with the normal

the organization or any individual having

functions of colleges and universities.

powers or responsibilities similar to those

Check the box on line 7 also for a

of officers, directors, or trustees.

cooperative hospital service organization

The organization must meet

described in section 501(e).

3. An owner of more than 20% of the

essentially the same public support test

voting power of a corporation, profits

Line 9. Hospital Medical Research

described below for line 11. See Rev. Rul.

interest of a partnership, or beneficial

Organization. Check the box on line 9

82-132, 1982-2 C.B. 107.

interest of a trust or an unincorporated

for a medical research organization

enterprise that is a substantial contributor

operated in connection with or in

Line 11. Organization Meeting the

to the organization.

conjunction with a hospital. The hospital

Section 509(a)(1) Public Support Test.

4. A family member of an individual in

must be described in section 501(c)(3) or

Check either box (but not both) on line

the first three categories. A family

operated by the Federal government, a

11a or 11b and complete the Support

member includes only a person’s spouse,

state or its political subdivision, a U.S.

Schedule to determine whether the

ancestors, children, grandchildren, great

possession or its political subdivision, or

organization meets the section 509(a)(1)/

grandchildren, and the spouses of

the District of Columbia.

170(b)(1)(A)(vi) public support test

children, grandchildren, and great

Medical research means studies and

described below.

grandchildren.

experiments done to increase or verify

5. A corporation, partnership, trust, or

information about physical or mental

The Support Schedule is completed for

estate in which persons described in 1

diseases and disabilities and their

an organization that normally (see Part

through 4 above own more than 35% of

causes, diagnosis, prevention, treatment,

IV, Definitions) receives at least 33

% of

the voting power, profits interest, or

or control. The organization must conduct

its support (excluding income received in

beneficial interest. See section

the research directly and continuously. If

exercising its charitable, etc., function)

4946(a)(1).

it primarily gives funds to other

from:

•

organizations (or grants and scholarships

Direct or indirect contributions from the

Normally to satisfy public support test.

to individuals) for them to do the

general public;

An organization is considered normally to

•

research, the organization is not a

Other publicly supported (section

satisfy the public support test (for lines

medical research organization.

170(b)(1)(A)(vi)) organizations; or

10, 11, and 12 of the Support Schedule)

•

The organization is not required to be

A governmental unit.

for its current tax year and the tax year

an affiliate of the hospital, but there must

immediately following its current tax year,

be an understanding that there will be

To determine whether the section

if the organization satisfies the applicable

close and continuous cooperation in any

509(a)(1)/170(b)(1)(A)(vi) test is met,

support test for the 4 tax years

joint-effort medical research.

donor contributions are considered

immediately before the current tax year.

Assets test/Expenditure test. An

support from direct or indirect

organization qualifies as a medical

contributions from the general public only

If the organization has a material

research organization if its principal

change (other than from unusual grants —

to the extent that the total amount

purpose is medical research, and it

see instructions for line 28) in its sources

received from any one donor during the

devotes more than half its assets, or

of support during the current tax year, the

4-tax-year period is 2% or less of the

spends at least 3.5% of the fair market

data ordinarily required in the Support

organization’s total support for those 4 tax

value of its endowment, in conducting

Schedule covering the years 2001

years as described below.

•

medical research directly.

through 2004 must be submitted for the

Any contribution by one individual will

years 2001 through 2005. Prepare and

be included in full in the total support

Either test may be met based on a

attach a 5-year schedule using the same

computation period consisting of the

denominator of the fraction determining

format as provided in the Support

immediately preceding tax year or the

the 33

%-of-support or the

Schedule for lines 15 through 28.

immediately preceding 4 tax years.

10%-of-support limitation.

•

Only the portion of each donor’s

If an organization does not satisfy

Lines 5 through 14. Reason for

contribution that is 2% or less of the total

either the assets test or the expenditure

Non-Private Foundation Status. Check

support denominator will be included in

test, it may still qualify as a medical

one of the boxes on these lines to

the numerator.

research organization, based on the

indicate the reason the organization is not

circumstances involved.

a private foundation. The organization’s

In applying the 2% limitation, all

exemption letter states this reason, or the

contributions by any person(s) related to

These tests are discussed in

local IRS office can tell you.

Regulations sections 1.170A-9(c)(2)(v)

the donor as described in section

and (vi). Value the organization’s assets

4946(a)(1)(C) through (G) (and related

Line 6. School. Check the box on line 6

as of any day in its tax year but use the

regulations) will be treated as if made by

for a school whose primary function is the

same day every year. Value the

the donor.

presentation of formal instruction, and

endowment at fair market value, using

The 2% limitation does not apply to

which regularly has a faculty, a

commonly accepted valuation methods.

support from governmental units referred

curriculum, an enrolled body of students,

(See Regulations section 20.2031.)

to in section 170(c)(1), or to contributions

and a place where educational activities

Line 10. Organization Operated for the

from publicly supported organizations

are regularly conducted.

Benefit of a Governmental Unit. Check

(section 170(b)(1)(A)(vi)), that check the

A private school, in addition, must

the box on line 10 and complete the

box on their line 11a or 11b.

have a racially nondiscriminatory policy

Support Schedule if the organization

Example. X organization reported the

toward its students. For details about

receives and manages property for and

following amounts in its Support Schedule

these requirements, see the instructions

expends funds to benefit a college or

for the 4-year period 2001 through 2004:

for Part V.

university that is owned or operated by

-4-

Instructions for Schedule A (Form 990 or 990-EZ)

Instructions For Schedule A (Form 990 Or 990-Ez) - 2005 Page 4

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