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

Total direct contributions from six

Gross receipts, in any tax year, do

If the organization received any

donors, each of whom gave more

not include receipts from any person,

amounts from either kind of

than 2% of total support . . . . . . $170,000

bureau, or similar agency of a

organization above, attach a statement.

2% limitation for six donors: (2% ×

government unit (described in section

Show the amounts received from each

$600,000 × 6) . . . . . . . . . . . .

72,000

170(c)(1)) to the extent such receipts

organization, including amounts, such

Less: Direct contributions in excess

exceed the greater of $5,000 or 1% of

as gifts, that are not investment

of 2% of total support . . . . . . . .

98,000

the organization’s support in such tax

income.

Total public support . . . . . . . . . .

$202,000

year.

Example. T organization reported

2. The organization normally

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

the following amounts in its Support

computation:

receives not more than one-third of its

Schedule for the 4-year period 1999

support each tax year from the sum of:

Line 26c Total support . . . . . . . . . . . . $600,000

through 2002:

•

Gross investment income (as

Line 26d Less total of lines:

defined in section 509(e)), and

Line

(e)

18 . . . $300,000

•

Total

The excess (if any) of the amount

19 . . . – 0 –

of the unrelated business taxable

Gifts, grants & contributions . . . . . . . $45,000

22 . . . – 0 –

income (as defined in section 512) over

Membership fees . . . . . . . . . . . . .

50,000

the amount of the tax imposed by

26b . . . 98,000

$398,000

Gross receipts from admissions,

section 511.

Line 26e Total public support . . . . . . . . $202,000

merchandise, etc. . . . . . . . . . . . . .

25,000

Line 26f Public support percentage (line

Gross income from interest, dividends,

80,000

Gross investment income. When

26e divided by line 26c — $202,000/

etc. . . . . . . . . . . . . . . . . . . . . . .

$600,000) . . . . . . . . . . . . . . . . . . .

33.67%

determining whether an organization

Total of lines 15 through 22 . . . . . . . $200,000

meets the gross investment income test

Since X organization received more

27a Gifts from disqualified persons . . . . . $25,000

of section 509(a)(2)(B), amounts

than 33

% of its total support for the

Excess gross receipts from

received from the following

period from public sources, it qualifies

nondisqualified persons . . . . . . . . . $20,000

organizations retain the character of

as a section 509(a)(1)/170(b)(1)(A)(vi)

T organization determined whether

gross investment income (rather than

publicly supported organization. Note

or not it met the one-third tests of

gifts or contributions) to the extent that

that if an organization fails the public

section 509(a)(2) in the following

these organizations characterize the

support test for 2 consecutive years, it

computation:

amounts as gross investment income:

•

loses its public charity status and

An organization that claims to be

becomes a private foundation.

Section 509(a)(2) computation:

described in section 509(a)(3) because

Line

Facts and circumstances – Public

it supports a section 509(a)(2)

27c Add: Amounts from column (e),

support test. An organization that

organization; or

lines 15, 16, 17, 20, and 21 . . . . . . . . $120,000

•

does not qualify as publicly supported

A charitable trust, corporation, fund,

27d Total of line 27a . . . . . . . . . . $25,000

under the test described above may be

or association described in section

Total of line 27b . . . . . . . . . . 20,000 45,000

publicly supported on the basis of the

501(c)(3) (including a nonexempt

27e Public support (line 27c minus

facts in its case if it receives at least

charitable trust described in section

line 27d total) . . . . . . . . . . .

$75,000

10% of its support from the general

4947(a)(1)), that is required to

27f

Total support (line 23, column

$200,000

public. If you believe your organization

distribute, or normally distributes, at

(e)) . . . . . . . . . . . . . . . . . .

is publicly supported according to

27g Public support percentage (line

least 25% of its adjusted net income

27e divided by line 27f —

applicable regulations, attach a detailed

(within the meaning of section 4942(f))

$75,000/$200,000) . . . . . . . .

37.50%

statement of the facts upon which you

to a section 509(a)(2) organization, if

27h Investment income percentage

base your conclusion.

the distribution normally comprises at

(line 18 divided by line 27f —

$80,000/$200,000) . . . . . . . .

40.0%

Line 12. Organization Meeting the

least 5% of the distributee

organization’s adjusted net income.

Section 509(a)(2) Public Support

T organization received 37.50% of

If an organization receives an

Tests. Check the box on line 12 and

its total support from the public and

amount from a split-interest trust

complete the Support Schedule to

thus met the more-than-one-third test of

described in section 4947(a)(2) that is

determine whether an organization

public support to total support. T

required to distribute, or normally

meets both of the following section

organization’s investment income

distributes, at least 25% of its adjusted

509(a)(2) support tests:

percentage was 40.0%. Therefore, it

net income to a section 509(a)(2)

1. The organization normally

did not meet the second part of the

organization, and the distribution

receives more than one-third of its

section 509(a)(2) test — the

normally comprises at least 5% of the

support for each tax year from:

not-more-than-one-third of total support

•

distributee organization’s adjusted net

Persons other than disqualified

from gross investment income and net

income, the amount retains the

persons (see Part IV, Definitions) with

unrelated business taxable income.

character of gross investment income if

respect to the organization,

•

Since T organization did not satisfy

it would be characterized as gross

Governmental units (described in

both of the one-third tests of section

investment income attributable to

section 170(c)(1)), or

•

509(a)(2), it failed the section 509(a)(2)

transfers in trust after May 26, 1969, if

Organizations described in section

public support test for this year. An

the trust were a private foundation.

170(b)(1)(A) (other than in clauses (vii)

organization that fails the public support

and (viii)), and

All income characterized under the

test for 2 consecutive years loses its

Such support is received by the

rules above as gross investment

public charity status and becomes a

organization from any combination of:

income in the possession of the

•

private foundation.

Gifts, grants, contributions, or

distributing organization is considered

membership fees, and

Line 13. Supporting Organization.

to be distributed first by the

•

Gross receipts from admissions,

Check the box on line 13 and complete

organization and keeps its character as

sales of merchandise, performance of

columns (a) and (b) for a supporting

such in the possession of the recipient.

services, or furnishing of facilities, in an

organization operated only for the

activity that is not an unrelated trade or

For more details, see Regulations

benefit of and in connection with

business (within the meaning of section

section 1.509(a)-5 that covers special

organizations listed in lines 5 through

513).

rules of attribution.

12, or with organizations described in

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2003 Page 5

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