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

4.06 Certification. An individual

7.03 Exceptions. The records

1. The total amount paid or incurred

authorized to take official action on behalf

described in section 7.01 need not be

for religious, charitable, scientific, literary,

of a school that claims to be racially

independently maintained for Internal

or educational purposes, or for the

nondiscriminatory as to students is

Revenue Service use if:

prevention of cruelty to children or

required to certify annually, under

animals, or to foster national or

1. Substantially the same information

penalties of perjury, that to the best of his

international amateur sports competition

that each of these records would provide

or her knowledge and belief the school

(not including providing athletic facilities

has been included in a report or reports

has satisfied the applicable requirements

or equipment, other than by qualified

filed in accordance with law with an

of sections 4.01 through 4.05 of the Rev.

amateur sports organizations described in

agency or agencies of Federal, state, or

Proc. This certification is line 35 in Part V.

section 501(j)(2)),

local government, and this information is

2. The allocable portion of

current within one year, and

4.07 Faculty and staff. The existence

administrative expenses paid or incurred

2. The school maintains copies of

of a racially discriminatory policy with

for the above purposes,

these reports from which this information

respect to employment of faculty and

3. Amounts paid or incurred to try to

is readily obtainable. Records described

administrative staff is indicative of a

influence legislation, whether or not for

in section 7.01 providing information not

racially discriminatory policy as to

the purposes described in 1 above,

included in reports filed with an agency or

students. Conversely, the absence of

4. Allowance for depreciation or

agencies must be maintained by the

racial discrimination in employment of

amortization, and

school for Service use.

faculty and administrative staff is

5. Fundraising expenditures, except

indicative of a racially nondiscriminatory

7.04 Failure to maintain records.

that exempt purpose expenditures do not

policy as to students.

Failure to maintain or to produce upon the

include amounts paid to or incurred for

proper request the required records and

either the organization’s separate

7.01 Specific records. Except as

information will create a presumption that

fundraising unit or other organizations, if

provided in section 7.03, each exempt

the organization has failed to comply with

the amounts are primarily for fundraising.

private school must maintain for a

these guidelines.

minimum period of three years, beginning

See also Regulations section

with the year after the year of compilation

Part VI-A. Lobbying

56.4911-4(c) for a discussion of excluded

or acquisition, the following records for

expenditures.

Expenditures by Electing

the use of the Service on proper request:

1. Records indicating the racial

Lobbying expenditures. The term

Public Charities

composition of the student body, faculty,

lobbying expenditures means

Complete Part VI-A only for an eligible

and administrative staff for each

expenditures paid or incurred for the

organization that elected to be subject to

academic year.

purpose of attempting to influence

the lobbying expenditure limitations of

legislation:

2. Records sufficient to document that

section 501(h) by filing Form 5768 and for

scholarship and other financial assistance

which the election was valid and in effect

•

Through communication with any

is awarded on a racially nondiscriminatory

for its tax year beginning in the year 2005.

member or employee of a legislative

basis.

A public charity that makes a valid

body, or with any government official or

3. Copies of all brochures,

section 501(h) election may spend up to a

employee who may participate in the

catalogues, and advertising dealing with

certain percentage of its exempt purpose

formulation of the legislation, and

student admissions, programs, and

•

expenditures to influence legislation

By attempting to affect the opinions of

scholarships. Schools advertising

without incurring tax or losing its

the general public.

nationally or in a large geographic

tax-exempt status.

segment or segments of the United

To determine if an organization has

Expenditure test. Under the

States need only maintain a record

spent excessive amounts on lobbying,

expenditure test, there are limits both

sufficient to indicate when and in what

you must know which expenditures are

upon the amount of the organization’s

publications their advertisements were

lobbying expenditures and which are not

placed.

grassroots lobbying expenditures and

lobbying expenditures. An electing public

upon the total amount of its direct

4. Copies of all materials used by or

charity’s lobbying expenditures for a year

lobbying and grassroots lobbying

on behalf of the school to solicit

are the sum of its expenditures during

expenditures. If the electing public charity

contributions.

that year for (1) direct lobbying

does not meet this expenditure test, it will

communications (direct lobbying

owe a section 4911 excise tax on its

7.02 Limitation.

expenditures) plus (2) grassroots lobbying

excess lobbying expenditures. Moreover,

communications (grassroots

1. For purposes of section 7.01, the

if over a 4-year averaging period the

expenditures).

racial composition of the student body,

organization’s average annual total

faculty, and administrative staff may be

lobbying or grassroots lobbying

Direct lobbying communications

an estimate based on the best information

expenditures are more than 150% of its

(direct lobbying expenditures). A direct

readily available to the school, without

dollar limits, the organization will lose its

lobbying communication is any attempt to

requiring student applicants, students,

exempt status.

influence any legislation through

faculty, or administrative staff to submit

communication with any:

The following terms are used in Part

•

information to the school that the school

Member or employee of a legislative

VI-A. See Regulations section 56.4911 for

otherwise does not require. For each

body, or

details.

•

academic year, however, a record of the

Government official or employee (other

Exempt purpose expenditures. The

method by which racial composition is

than a member or employee of a

amount an electing public charity may

determined must be maintained. . . .

legislative body) who may participate in

spend on lobbying (without incurring tax)

2. The Service does not require that a

the formulation of the legislation, but only

is a scaled percentage of the

school release personally identifiable

if the principal purpose of the

organization’s exempt purpose

records or personal information contained

communication is to influence legislation.

expenditures. In general, an expenditure

therein except in accordance with the

is an exempt purpose expenditure if it is

A communication with a legislator or

requirements of the ‘‘Family Educational

paid or incurred by an electing public

government official will be treated as a

Rights and Privacy Act of 1974,’’ 20

charity to accomplish the organization’s

direct lobbying communication, if, but only

U.S.C. section 1232g (1974). Similarly,

exempt purpose.

if, the communication:

the Service does not require a school to

•

keep records the maintenance of which is

Refers to specific legislation, and

In general, exempt purpose

•

prohibited under state or federal law.

expenditures are:

Reflects a view on such legislation.

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2005 Page 9

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