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


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.
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)
it primarily gives funds to other
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
Instructions for Schedule A (Form 990 or 990-EZ)


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