Instructions For Schedule A (Form 990 Or 990-Ez) - Public Charity Status And Public Support - 2010 Page 2
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9Customer Account Services, P.O. Box
and by court decisions. They include:
to do the research, the organization is not
2508, Cincinnati, OH 45201. See the
distinct legal existence; recognized creed
a medical research organization.
examples below.
and form of worship; definite and distinct
The organization is not required to be
ecclesiastical government; formal code of
Example 1. The organization
an affiliate of the hospital, but there must
doctrine and discipline; distinct religious
be a joint effort by the organization and
received an exemption letter that it is a
history; membership not associated with
the hospital to maintain continuing close
public charity under section
any other church or denomination;
cooperation in the active conduct of
170(b)(1)(A)(vi). For the tax year, it meets
organization of ordained ministers;
the requirements for public charity status
medical research.
ordained ministers selected after
under section 170(b)(1)(A)(vi). The
The definition of medical research
completing prescribed courses of study;
organization should check the box on line
for Schedule A (Form 990 or
TIP
literature of its own; established places of
7 and complete Part II.
990-EZ), Part I, is different from
worship; regular congregations; regular
Example 2. The organization
the definition for Schedule H (Form 990).
religious services; Sunday schools for the
received an exemption letter that it is a
Accordingly, research that constitutes
religious instruction of the young; schools
public charity under section
medical research for purposes of
for the preparation of its ministers. The
170(b)(1)(A)(vi). For the tax year, it does
determining whether an organization is a
IRS generally uses a combination of
not meet the requirements for public
medical research organization is not
these characteristics, together with other
charity status under section
necessarily medical research for
facts and circumstances, to determine
170(b)(1)(A)(vi). Instead, it meets the
Schedule H (Form 990) reporting
whether an organization is considered a
requirements for public charity status
purposes.
church for federal tax purposes.
under section 509(a)(2). The organization
Assets test/expenditure test. An
Line 2. Check the box for a school
should check the box on line 9 and
organization qualifies as a medical
whose primary function is the
complete Part III.
presentation of formal instruction, which
research organization if its principal
Example 3. The organization
purpose is medical research, and if it
regularly has a faculty, a curriculum, an
received an exemption letter that it is a
devotes more than half its assets, or
enrolled body of students, and a place
public charity under section 509(a)(2). For
spends at least 3.5% of the fair market
where educational activities are regularly
the tax year, it does not meet the
value of its endowment, directly in
conducted. A private school must have a
requirements for public charity status
conducting medical research. Either test
racially nondiscriminatory policy toward its
under section 509(a)(2) or
can be met based on a computation
students. For details about these
170(b)(1)(A)(vi). Instead, it meets the
period consisting of the immediately
requirements, see Schedule E (Form 990
requirements for public charity status as a
preceding tax year or the immediately
or 990-EZ), and its related instructions.
supporting organization under section
preceding 4 tax years.
An organization that checks the
509(a)(3). The organization should (a)
If an organization does not satisfy
box on line 2 must also complete
TIP
check the box on line 11; (b) check the
either the assets test or the expenditure
Schedule E (Form 990 or 990-EZ).
box on either line 11a, 11b, 11c, or 11d;
test, it can still qualify as a medical
Line 3. Check the box for an
(c) complete lines 11e through 11g; and
research organization based on the
organization whose main purpose is to
(d) complete the table on line 11h.
circumstances involved.
provide hospital or medical care. A
Example 4. The organization
These tests are discussed in
rehabilitation institution or an outpatient
received an exemption letter that it is a
Regulations sections 1.170A-9(d)(2)(v)
clinic can qualify as a hospital if its
supporting organization under section
and (vi). Under these tests, value the
principal purposes or functions are the
509(a)(3). Based on Announcement
organization’s assets as of any day in its
providing of hospital or medical care, but
2009-62, 2009-33 I.R.B. 247, the
tax year using the same day every year,
the term does not include medical
organization submitted a request to the
and value the endowment at fair market
schools, medical research organizations,
IRS to change its classification to public
value, using commonly accepted
convalescent homes, homes for children
charity status under section 509(a)(2).
valuation methods. See Regulations
or the aged, or vocational training
The organization received a
section 20.2031.
institutions for handicapped individuals.
determination letter that it has been
Line 5. Check the box and complete
Check the box on line 3 also for a
reclassified as a public charity under
Part II if the organization receives and
cooperative hospital service organization
section 509(a)(2). The organization
manages property for and expends funds
described in section 501(e).
should check the box on line 9 and
to benefit a college or university that is
complete Part III.
The definition of hospital for
owned or operated by one or more states
Schedule A (Form 990 or 990-EZ),
Example 5. The organization
TIP
or political subdivisions. The school must
Part I, is different from the
received an exemption letter that it is a
be an organization described in the
definition for Schedule H (Form 990),
public charity under section
instructions for line 2.
Hospitals. Accordingly, see Who Must
170(b)(1)(A)(vi). For the tax year, it does
Expending funds to benefit a college or
File in the Instructions for Schedule H
not meet the requirements for public
university includes acquiring and
(Form 990) regarding whether the
charity status under section
maintaining the campus, its buildings and
organization also is required to complete
170(b)(1)(A)(vi) or 509(a)(2), or as a
equipment, granting scholarships and
Schedule H (Form 990), Hospitals.
supporting organization under section
student loans, and making any other
509(a)(3). Nor does it meet the
Line 4. Check the box for an
payments in connection with the normal
requirements for public charity status
organization whose principal purpose or
functions of colleges and universities.
under any other provision of the Internal
function is to engage in medical
The organization must meet the same
Revenue Code. The organization is a
research, and that is directly engaged in
public support test described below for
private foundation and should not file
the continuous active conduct of medical
line 7. See Rev. Rul. 82-132, 1982-2 C.B.
Form 990, Form 990-EZ, or Schedule A
research in conjunction with a hospital.
107.
(Form 990 or Form 990-EZ) for the tax
The hospital must be described in section
year but should file Form 990-PF instead.
Line 6. Only a federal, state, or local
501(c)(3) or operated by the federal
government, a state or its political
government or governmental unit that
Line 1. Check the box for a church,
has received an exemption letter
subdivision, a U.S. possession or its
convention of churches, or association of
political subdivision, or the District of
recognizing it as exempt from tax under
churches. Pub. 1828, Tax Guide for
section 501(c)(3) should check this box.
Columbia.
Churches and Religious Organizations,
See Rev. Rul. 60-384, 1960-2 C.B. 172.
provides certain characteristics generally
If the organization primarily gives
attributed to churches. These attributes of
funds to other organizations (or grants
Line 7. Check the box and complete
a church have been developed by the IRS
and scholarships to individuals) for them
Part II if the organization meets one of the
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