2006 Instructions For Schedule A (Form 990 Or 990-Ez) Page 5
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15Line 7. Hospital or Cooperative
a substantial contributor for all future
expends funds to benefit a college or
Hospital Service Organization. Check
periods even if later contributions by
university that is owned or operated by
the box on line 7 for an organization
others push that person’s contributions
one or more states or their political
whose main purpose is to provide hospital
below the 2% figure discussed above.
subdivisions. The school must be as
•
or medical care. A rehabilitation institution
Gifts from the contributor’s spouse
described in the first paragraph of the
are treated as gifts from the contributor.
or an outpatient clinic may qualify as a
instructions for line 6.
•
Gifts are generally valued at fair
hospital, but the term does not include
Expending funds to benefit a college or
market value as of the date the
medical schools, medical research
university includes acquiring and
organization received them.
organizations, convalescent homes,
maintaining the campus, its buildings, and
2. An officer, director, or trustee of
homes for the aged, or vocational training
its equipment, granting scholarships and
institutions for the handicapped.
the organization or any individual having
student loans, and making any other
powers or responsibilities similar to those
Check the box on line 7 also for a
payments in connection with the normal
of officers, directors, or trustees.
cooperative hospital service organization
functions of colleges and universities.
3. An owner of more than 20% of the
described in section 501(e).
voting power of a corporation, profits
The organization must meet
Line 9. Hospital Medical Research
interest of a partnership, or beneficial
essentially the same public support test
Organization. Check the box on line 9
interest of a trust or an unincorporated
described below for line 11. See Rev. Rul.
for a medical research organization
enterprise that is a substantial contributor
82-132, 1982-2 C.B. 107.
operated in connection with or in
to the organization.
conjunction with a hospital. The hospital
Line 11. Organization Meeting the
4. A family member of an individual in
must be described in section 501(c)(3) or
Section 509(a)(1) Public Support Test.
the first three categories. A family
operated by the Federal government, a
Check either box (but not both) on line
member includes only a person’s spouse,
state or its political subdivision, a U.S.
ancestors, children, grandchildren, great
11a or 11b and complete the Support
possession or its political subdivision, or
grandchildren, and the spouses of
Schedule to determine whether the
the District of Columbia.
children, grandchildren, and great
organization meets the section 509(a)(1)/
grandchildren.
170(b)(1)(A)(vi) public support test
Medical research is studies and
5. A corporation, partnership, trust, or
described below.
experiments done to increase or verify
estate in which persons described in 1
information about physical or mental
The Support Schedule is completed for
through 4 above own more than 35% of
diseases and disabilities and their
an organization that normally (see Part
the voting power, profits interest, or
causes, diagnosis, prevention, treatment,
IV, Definitions) receives at least 33
1
/
% of
3
beneficial interest. See section
or control. The organization must conduct
its support (excluding income received in
4946(a)(1).
the research directly and continuously. If
exercising its charitable, etc., function)
it primarily gives funds to other
from:
Normally to satisfy public support test.
organizations (or grants and scholarships
•
Direct or indirect contributions from the
An organization is considered normally to
to individuals) for them to do the
general public;
satisfy the public support test (for lines
research, the organization is not a
•
Other publicly supported (section
10, 11, and 12 of the Support Schedule)
medical research organization.
170(b)(1)(A)(vi)) organizations; or
for its current tax year and the tax year
•
The organization is not required to be
immediately following its current tax year,
A governmental unit.
an affiliate of the hospital, but there must
if the organization satisfies the applicable
To determine whether the section
be an understanding that there will be
support test for the 4 tax years
509(a)(1)/170(b)(1)(A)(vi) test is met,
close and continuous cooperation in any
immediately before the current tax year.
donor contributions are considered
joint-effort medical research.
If the organization has a material
support from direct or indirect
Assets test/Expenditure test. An
change (other than from unusual grants —
contributions from the general public only
organization qualifies as a medical
see instructions for line 28) in its sources
to the extent that the total amount
research organization if its principal
of support during the current tax year, the
received from any one donor during the
purpose is medical research, and it
data ordinarily required in the Support
4-tax-year period is 2% or less of the
devotes more than half its assets, or
Schedule covering the years 2002
organization’s total support for those 4 tax
spends at least 3.5% of the fair market
through 2005 must be submitted for the
years as described below.
value of its endowment, in conducting
•
years 2002 through 2006. Prepare and
Any contribution by one individual will
medical research directly.
attach a 5-year schedule using the same
be included in full in the total support
format as provided in the Support
Either test may be met based on a
denominator of the fraction determining
Schedule for lines 15 through 28.
computation period consisting of the
the 33
/
%-of-support or the
1
3
immediately preceding tax year or the
10%-of-support limitation.
Lines 5 through 14. Reason for
•
immediately preceding 4 tax years.
Non-Private Foundation Status. Check
Only the portion of each donor’s
one of the boxes on these lines to
contribution that is 2% or less of the total
If an organization does not satisfy
indicate the reason the organization is not
support denominator will be included in
either the assets test or the expenditure
a private foundation. The organization’s
the numerator.
test, it may still qualify as a medical
exemption letter states this reason, or the
research organization, based on the
In applying the 2% limitation, all
local IRS office can tell the organization
circumstances involved.
contributions by any person(s) related to
the reason.
the donor as described in section
These tests are discussed in
4946(a)(1)(C) through (G) (and related
Line 6. School. Check the box on line 6
Regulations sections 1.170A-9(c)(2)(v)
regulations) will be treated as if made by
for a school whose primary function is the
and (vi). Value the organization’s assets
the donor.
presentation of formal instruction, and
as of any day in its tax year but use the
The 2% limitation does not apply to
which regularly has a faculty, a
same day every year. Value the
support from governmental units referred
curriculum, an enrolled body of students,
endowment at fair market value, using
to in section 170(c)(1), or to contributions
and a place where educational activities
commonly accepted valuation methods.
from publicly supported organizations
are regularly conducted.
(See Regulations section 20.2031.)
(section 170(b)(1)(A)(vi)), that check the
A private school, in addition, must
Line 10. Organization Operated for the
box on their line 11a or 11b.
have a racially nondiscriminatory policy
Benefit of a Governmental Unit. Check
toward its students. For details about
the box on line 10 and complete the
Example. X organization reported the
these requirements, see the instructions
Support Schedule if the organization
following amounts in its Support Schedule
for Part V.
receives and manages property for and
for the 4-year period 2002 through 2005:
-5-
Instructions for Schedule A (Form 990 or 990-EZ)
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