Instructions For Schedule A (Form 990 Or 990-Ez) - Public Charity Status And Public Support - 2010 Page 8
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9Line 7a. Example
Disqualified Person
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
David Smith
$7,000
$6,000
$2,000
$15,000
Anne Parker
$5,000
$7,000
4,000
16,000
Total
$7,000
$6,000
$5,000
$7,000
$6,000
$31,000
Line 7a. Enter the amounts that are
512) from trades or businesses that it
accounting period. When the organization
included on lines 1, 2, and 3 that the
acquired or commenced after June 30,
prepares Part III for 2010 through 2014, it
organization received from disqualified
1975, over the amount of tax imposed on
should check the box on line 14 and
persons. See second Glossary definition
this income under section 511. Include
should not complete the rest of Part III.
of disqualified person in the Instructions
membership fees to the extent they are
When the organization prepares Part III
for Form 990.
payments to purchase admissions,
for 2015 and subsequent years, it should
merchandise, services, or the use of
not check the box on line 14 and should
For amounts included on lines 1, 2,
facilities in an unrelated business activity
complete the rest of Part III.
and 3 that were received from a
that is a trade or business that was
disqualified person, the organization
An organization in its first 5 years
acquired or commenced after June 30,
should keep for its records a list showing
as a section 501(c)(3)
TIP
1975.
the name of, and total amounts received
organization should make the
Net income and net losses from all of
in each year from, each disqualified
public support and investment income
these trades or businesses should be
person. Enter the total of such amounts
computations on a copy of Schedule A
for each year on line 7a. See an example
aggregated. If a net loss results, enter -0-
(Form 990 or 990-EZ) that it keeps for
of this list above.
on this line. See Regulations section
itself. An organization should carefully
1.509(a)-3(a)(3).
monitor its public support on an ongoing
Do not file this list with the
Line 11. Enter the organization’s net
basis to ensure that it will meet the public
!
organization’s Form 990 or
income from carrying on unrelated
support tests in the sixth year and
990-EZ because it may be made
CAUTION
business activities not included on line
succeeding years.
available for public inspection.
10b, whether or not the activities are
Line 15. Round to the nearest hundredth
Line 7b. For any gross receipts included
regularly carried on as a trade or
decimal point in reporting the percentage
on lines 2 and 3 from related activities
business. See sections 512 and 513 and
of public support. For example, if the
received from a person or from a bureau
the applicable regulations. Include
organization calculates its public support
or similar agency of a governmental
membership fees to the extent they are
percentage as 58.3456%, this percentage
unit, other than from a disqualified
payments to purchase admissions,
would be rounded to 58.35% when
person, that exceed the greater of $5,000
merchandise, services, or the use of
reported on line 15.
or 1% of the amount on line 13 for the
facilities in an activity that is an unrelated
Line 16. For 2010, enter the public
applicable year, enter the excess on line
business not included on line 10b.
7b. The organization should keep for its
support percentage from the 2009
Net income and net losses from all of
records a list showing, for each year, the
Schedule A (Form 990 or 990-EZ), Part
the organization’s unrelated business
name of the person or government
III, line 15. Round to the nearest
activities should be aggregated. If a net
agency, the amount received during the
hundredth decimal point in reporting the
loss results, enter “-0-” on this line.
applicable year, the larger of $5,000 or
percentage of public support.
Line 12. Include all support as defined in
1% of the amount on line 13 for the
Line 17. Round to the nearest whole
section 509(d) that is not included
applicable year, and the excess, if any.
percentage.
elsewhere in Part III. Explain in Part IV
See an example of this list below.
the nature and source of each amount
Line 18. For 2010, enter the investment
Do not file this list with the
reported. Do not include gain or loss from
income percentage from the 2009
!
organization’s Form 990 or
sale of capital assets.
Schedule A (Form 990 or 990-EZ), Part
990-EZ because it may be made
III, line 17. Round to the nearest whole
Line 14. An organization that checks this
CAUTION
available for public inspection.
percentage.
box should stop here and should not
complete the rest of Part III. It should not
Line 19a. If the organization did not
Line 10a. Include the gross income from
make a public support computation on
check the box on line 14, line 15 is more
interest, dividends, payments received on
line 15 or 16 or an investment income
than 33
/
%, and line 17 is not more than
securities loans (section 512(a)(5)), rents,
1
3
computation on line 17 or 18, or check
%, check the box on this line and
33
/
royalties, and income from similar
1
3
any of the boxes on line 19 or 20.
do not complete the rest of this
sources. Do not include on this line
schedule. The organization qualifies as a
payments that result from activities of the
Example. An organization receives
publicly supported organization for 2010
organization that further its exempt
an exemption letter from the IRS that it is
and 2011.
purpose. Instead, report these amounts
exempt from tax under section 501(c)(3)
on line 2.
and qualifies as a public charity under
Line 19b. If the organization did not
Line 10b. Enter the excess of the
section 509(a)(2) effective March 25,
check the box on line 14 or 19a, line 16 is
organization’s unrelated business
2010, its date of incorporation. The
more than 33
/
%, and line 18 is not more
1
3
taxable income (as defined in section
organization uses a calendar year
than 33
/
%, check the box on this line
1
3
Line 7b. Example
Year 2010
(a) Name
(b) Amount received in
(c) 1% of amount on line
(d) Enter the larger of
(e) 2010 excess (column
2010
13 in 2010
column (c) or $5,000
(b) minus column (d))
Word Processing, Inc.
$25,000
$2,000
$5,000
$20,000
Enter on Schedule A, column (e), line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$20,000
-8-
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