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

years 1999 through 2002 must be

cooperation in any joint-effort medical

3. A governmental unit.

submitted for the years 1999 through

research.

To determine whether the section

2003. Prepare and attach a 5-year

Assets test/Expenditure test. An

509(a)(1)/170(b)(1)(A)(vi) test is met,

schedule using the same format as

organization qualifies as a medical

donor contributions are considered

provided in the Support Schedule for

research organization if its principal

support from direct or indirect

lines 15 through 28.

purpose is medical research, and it

contributions from the general public

Lines 5 through 14. Reason for

devotes more than half its assets, or

only to the extent that the total amount

Non-Private Foundation Status.

spends at least 3.5% of the fair market

received from any one donor during the

Check one of the boxes on these lines

value of its endowment, in conducting

4-tax-year period is 2% or less of the

to indicate the reason the organization

medical research directly.

organization’s total support for those 4

is not a private foundation. The

Either test may be met based on a

tax years as described below.

organization’s exemption letter states

•

computation period consisting of the

Any contribution by one individual will

this reason, or the local IRS office can

immediately preceding tax year or the

be included in full in the total support

tell you.

immediately preceding 4 tax years.

denominator of the fraction

Line 6. School. Check the box on line

If an organization does not satisfy

determining the 33

%-of-support or

6 for a school whose primary function is

either the “assets test” or the

the 10%-of-support limitation.

the presentation of formal instruction,

•

“expenditure test,” it may still qualify as

Only the portion of each donor’s

and which regularly has a faculty, a

a medical research organization, based

contribution that is 2% or less of the

curriculum, an enrolled body of

on the circumstances involved.

total support denominator will be

students, and a place where

These tests are discussed in

included in the numerator.

educational activities are regularly

Regulations sections 1.170A-9(c)(2)(v)

conducted.

In applying the 2% limitation, all

and (vi). Value the organization’s

contributions by any person(s) related

A private school, in addition, must

assets as of any day in its tax year but

to the donor as described in section

have a racially nondiscriminatory policy

use the same day every year. Value the

4946(a)(1)(C) through (G) (and related

toward its students. For details about

endowment at fair market value, using

regulations) will be treated as if made

these requirements, see the

commonly accepted valuation methods.

by the donor.

instructions for Part V.

(See Regulations section 20.2031.)

The 2% limitation does not apply to

Line 7. Hospital or Cooperative

Line 10. Organization Operated for

support from governmental units

Hospital Service Organization.

the Benefit of a Governmental Unit.

Check the box on line 7 for an

referred to in section 170(c)(1), or to

Check the box on line 10 and complete

organization whose main purpose is to

contributions from publicly supported

the Support Schedule if the

provide hospital or medical care. A

organizations (section 170(b)(1)(A)(vi)),

organization receives and manages

rehabilitation institution or an outpatient

that check the box on their line 11a or

property for and expends funds to

clinic may qualify as a hospital, but the

11b.

benefit a college or university that is

term does not include medical schools,

owned or operated by one or more

Example. X organization reported

medical research organizations,

states or their political subdivisions. The

the following amounts in its Support

convalescent homes, homes for the

school must be as described in the first

aged, or vocational training institutions

Schedule for the 4-year period 1999

paragraph of the instructions for line 6.

for the handicapped.

through 2002:

Expending funds to benefit a college

Check the box on line 7 also for a

Line

(e) Total

or university includes acquiring and

cooperative hospital service

maintaining the campus, its buildings,

Gifts, grants & contributions . . . . . . $300,000

organization described in section

and its equipment, granting

Gross receipts from admissions, etc.

100,000

501(e).

scholarships and student loans, and

Dividends & interest . . . . . . . . . . .

300,000

Line 9. Hospital Medical Research

making any other payments in

Organization. Check the box on line 9

Line 23 minus line 17 . . . . . . . . . .

600,000

connection with the normal functions of

for a medical research organization

26a 2% of line 24 (2% limitation) . . . . . .

12,000

colleges and universities.

operated in connection with or in

b Total of contributions exceeding the

The organization must meet

conjunction with a hospital. The hospital

2% limitation . . . . . . . . . . . . . . .

98,000

essentially the same public support test

must be described in section 501(c)(3)

The X organization determined

described below for line 11. See Rev.

or operated by the Federal government,

whether or not it met the section

Rul. 82-132, 1982-2 C.B. 107.

a state or its political subdivision, a U.S.

509(a)(1)/170(b)(1)(A)(vi) public

possession or its political subdivision,

Line 11. Organization Meeting the

support test as follows:

or the District of Columbia.

Section 509(a)(1) Public Support

Total support (line 24): . . . . . . . . . . . . .

$600,000

Test. Check either box (but not both)

“Medical research” means studies

on line 11a or 11b and complete the

and experiments done to increase or

Direct contributions:

Support Schedule to determine whether

verify information about physical or

Total direct contributions from persons

the organization meets the section

mental diseases and disabilities and

who contributed less than 2% of total

509(a)(1)/170(b)(1)(A)(vi) public

their causes, diagnosis, prevention,

support . . . . . . . . . . . . . . . . . . . . . . .

50,000

support test described below.

treatment, or control. The organization

Total direct contributions from

must conduct the research directly and

The Support Schedule is completed

six donors, each of whom gave

continuously. If it primarily gives funds

for an organization that “normally” (see

more than 2% ($12,000) of total

to other organizations (or grants and

Part IV, Definitions) receives at least

support . . . . . . . . . . . . . . . . . . . . . . .

170,000

scholarships to individuals) for them to

% of its support (excluding income

Indirect contributions from

do the research, the organization is not

received in exercising its charitable,

the general public:

a medical research organization.

etc., function) from:

United Fund . . . . . . . . . . . . . . . . . . . .

40,000

The organization is not required to

1. Direct or indirect contributions

be an affiliate of the hospital, but there

from the general public;

Grant from Y City . . . . . . . . . . . . . . . . .

40,000

must be an understanding that there

2. Other publicly supported (section

will be close and continuous

170(b)(1)(A)(vi)) organizations; or

Total gifts, grants & contributions . . . . . . .

$300,000

-4-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2003 Page 4

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