2003 compensation package for any
nature for the organization and, in
subject to the lobbying expenditure
person listed in Part I.
return, received over $50,000 for the
definitions of section 4911, which are
year from the organization. Examples of
generally more liberal than the
Column (c)
such contractors include attorneys,
definitions under the “substantial part”
Enter salary, fees, bonuses, and
accountants, doctors, and professional
test. Section 4911 applies only to public
severance payments received by each
fundraisers.
charities that made a valid section
listed employee. Include current year
501(h) election by filing Form 5768,
Show also the number of other
Election/Revocation of Election by an
payments of amounts reported or
independent contractors who received
Eligible Section 501(c)(3) Organization
reportable as deferred compensation in
more than $50,000 for the year for
To Make Expenditures To Influence
any prior year.
performing such services but who are
Legislation.
not individually listed in Part II.
Column (d)
Electing public charities. If the
The organization may, at its
Include in column (d) all forms of
organization is an electing public
discretion, provide an attachment to
deferred compensation and future
charity, you must complete Part VI-A of
explain the entire year 2003
severance payments (whether or not
this form.
compensation package for any person
funded, whether or not vested, and
Nonelecting public charities. If the
listed in Part II.
whether or not the deferred
organization checked “Yes” but is not
compensation plan is a qualified plan
Fundraising fees exceeding $50,000
an electing public charity, you must
under section 401(a)). Include in this
should be reported in Part II, but not
complete Part VI-B and attach a
column payments to welfare benefit
reimbursements for amounts paid by
statement giving a detailed description
plans on behalf of the employee. Such
the fundraiser to others for printing,
of the organization’s lobbying activities.
plans provide benefits such as medical,
paper, envelopes, postage, mailing list
Important: All charities, both electing
dental, life insurance, severance pay,
rental, etc. Part II is intended for the fee
and nonelecting, are absolutely
disability, etc. Reasonable estimates
portion of payments to contractors, not
prohibited from intervening in a political
may be used if precise cost figures are
for any expense reimbursements.
campaign for or against any candidate
not readily available.
for an elective public office. If a charity
Part III—Statements
Unless the amounts are reported in
does intervene in a political campaign,
column (c), report as deferred
About Activities
it will lose both its tax-exempt status
compensation in column (d), salaries
and its eligibility to receive
and other compensation earned during
Line 1. If you checked “Yes” on this
tax-deductible charitable contributions.
the period covered by the return, but
line, you must complete Part VI-A or
Both the organization and its managers
not yet paid by the date the
VI-B and provide the required additional
are subject to the tax on political
organization files its return.
information; otherwise, the return may
expenditures under section 4955.
be considered incomplete.
Column (e)
Line 2. See Part IV, Definitions, for
Enter the total expenses paid or
the meaning of the term “family
Enter in column (e) both taxable and
incurred in connection with the lobbying
member.”
nontaxable fringe benefits (other than
activities described on line 1. The
de minimis fringe benefits described in
Lines 2a through 2e apply to both
amount of expenses you enter should
sides of a listed transaction. Reporting
section 132(e)). Include expense
equal the amounts on line 38, Part
is required, for example, whether the
allowances or reimbursements that the
VI-A, or line i, Part VI-B. If columns (a)
exempt organization is a payer or
recipients must report as income on
and (b) of line 38 are both completed,
payee, buyer or seller, lender or
their separate income tax returns.
enter both amounts separately.
borrower.
Examples include:
•
Substantial part test. In general, a
Amounts for which the recipient did
Line 2d. Compensation or
section 501(c)(3) organization may not
not account to the organization,
Repayment. If the only compensation
•
devote a “substantial part” of its
Allowances that were more than the
or repayment relates to amounts the
activities to attempts to influence
payee spent on serving the
organization reported in Part V of Form
legislation. Under the “substantial part”
organization, and
990, or Part IV of Form 990-EZ, check
•
test, if such an organization engages in
Payments made in connection with
“Yes” and write “See Part V, Form 990,”
substantial lobbying activities, the
indemnification arrangements, the
or “See Part IV of Form 990-EZ,” on the
organization will lose both its
value of the personal use of housing,
dotted line to the left of the entry space.
tax-exempt status and its ability to
automobiles, or other assets owned or
Line 3a. Scholarships, etc. The term
receive tax-deductible charitable
leased by the organization (or provided
“qualify” in line 3a means that
contributions. Except for churches,
for the organization’s use without
organizations or individuals will use the
certain church affiliated organizations,
charge), as well as any other taxable
funds the organization provides for
and private foundations, an
and nontaxable fringe benefits.
charitable purposes described in
organization that loses its section
See Pub. 525, Taxable and Nontaxable
sections 170(c)(1) and 170(c)(2).
501(c)(3) status because it did not meet
Income, for more information.
the “substantial part” test will owe an
The term “qualify” also means that
excise tax under section 4912 on all of
individual recipients belong to a
Part II—Compensation
its lobbying expenditures. Managers of
charitable class and the payments are
of the Five Highest Paid
the organization may also be jointly and
to aid them. Examples include:
•
severally liable for this tax.
Helping the aged poor;
Independent Contractors
•
Training teachers and social workers
Expenditure test. As an alternative
for Professional
from underdeveloped countries; and
to the “substantial part” test, eligible
•
Awarding scholarships to individuals.
public charities may elect the
Services
“expenditure test” of section 501(h).
Complete Part II for the five highest
The expenditure test generally permits
Line 3b. Section 403(b) Annuity Plan.
paid independent contractors (whether
higher limits for lobbying expenditures
Indicate whether you have a section
individuals or firms) who performed
than allowed under the “substantial
403(b) annuity plan available for your
personal services of a professional
part” test. Electing public charities are
employees.
-2-
Instructions for Schedule A (Form 990 or 990-EZ)