Instructions For Schedule A (Form 990 Or 990-Ez) - 2003 Page 9
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144.06 Certification. An individual
contained therein except in accordance
The following terms are used in Part
authorized to take official action on
with the requirements of the ‘‘Family
VI-A. See Regulations section 56.4911
behalf of a school that claims to be
Educational Rights and Privacy Act of
for details.
racially nondiscriminatory as to
1974,’’ 20 U.S.C. section 1232g (1974).
Exempt purpose expenditures. The
students is required to certify annually,
Similarly, the Service does not require a
amount an electing public charity may
under penalties of perjury, that to the
school to keep records the
spend on lobbying (without incurring
best of his or her knowledge and belief
maintenance of which is prohibited
tax) is a scaled percentage of the
the school has satisfied the applicable
under state or federal law.
organization’s exempt purpose
requirements of sections 4.01 through
expenditures. In general, an
7.03 Exceptions. The records
4.05 of the Rev. Proc. This certification
expenditure is an exempt purpose
described in section 7.01 need not be
is line 35 in Part V.
expenditure if it is paid or incurred by
independently maintained for Internal
4.07 Faculty and staff. The
an electing public charity to accomplish
Revenue Service use if:
existence of a racially discriminatory
the organization’s exempt purpose.
1. Substantially the same
policy with respect to employment of
information that each of these records
In general, exempt purpose
faculty and administrative staff is
would provide has been included in a
expenditures are:
indicative of a racially discriminatory
report or reports filed in accordance
1. The total amount paid or incurred
policy as to students. Conversely, the
with law with an agency or agencies of
for religious, charitable, scientific,
absence of racial discrimination in
Federal, state, or local government, and
literary, or educational purposes, or for
employment of faculty and
this information is current within one
the prevention of cruelty to children or
administrative staff is indicative of a
year, and
animals, or to foster national or
racially nondiscriminatory policy as to
2. The school maintains copies of
international amateur sports
students.
these reports from which this
competition (not including providing
7.01 Specific records. Except as
information is readily obtainable.
athletic facilities or equipment, other
provided in section 7.03, each exempt
Records described in section 7.01
than by qualified amateur sports
private school must maintain for a
providing information not included in
organizations described in section
minimum period of three years,
reports filed with an agency or agencies
501(j)(2)),
beginning with the year after the year of
must be maintained by the school for
2. The allocable portion of
compilation or acquisition, the following
Service use.
administrative expenses paid or
records for the use of the Service on
incurred for the above purposes,
7.04 Failure to maintain records.
proper request:
3. Amounts paid or incurred to try to
Failure to maintain or to produce upon
1. Records indicating the racial
influence legislation, whether or not for
the proper request the required records
composition of the student body,
the purposes described in 1 above,
and information will create a
faculty, and administrative staff for each
4. Allowance for depreciation or
presumption that the organization has
academic year.
amortization, and
failed to comply with these guidelines.
2. Records sufficient to document
5. Fundraising expenditures, except
that scholarship and other financial
that exempt purpose expenditures do
Part VI-A—Lobbying
assistance is awarded on a racially
not include amounts paid to or incurred
nondiscriminatory basis.
for either the organization’s separate
Expenditures by Electing
3. Copies of all brochures,
fundraising unit or other organizations,
Public Charities
catalogues, and advertising dealing
if the amounts are primarily for
with student admissions, programs, and
fundraising.
Complete Part VI-A only for an eligible
scholarships. Schools advertising
organization that elected to be subject
See also Regulations section
nationally or in a large geographic
to the lobbying expenditure limitations
56.4911-4(c) for a discussion of
segment or segments of the United
of section 501(h) by filing Form 5768
excluded expenditures.
States need only maintain a record
and for which the election was valid
sufficient to indicate when and in what
Lobbying expenditures. The term
and in effect for its tax year beginning
publications their advertisements were
“lobbying expenditures” means
in the year 2003.
placed.
expenditures paid or incurred for the
A public charity that makes a valid
4. Copies of all materials used by or
purpose of attempting to influence
section 501(h) election may spend up
on behalf of the school to solicit
legislation:
to a certain percentage of its “exempt
contributions.
•
purpose expenditures” to influence
Through communication with any
legislation without incurring tax or losing
7.02 Limitation.
member or employee of a legislative
its tax-exempt status.
1. For purposes of section 7.01, the
body, or with any government official or
racial composition of the student body,
Expenditure test. Under the
employee who may participate in the
faculty, and administrative staff may be
“expenditure test,” there are limits both
formulation of the legislation, and
•
an estimate based on the best
upon the amount of the organization’s
By attempting to affect the opinions
information readily available to the
grassroots lobbying expenditures and
of the general public.
school, without requiring student
upon the total amount of its direct
To determine if an organization has
applicants, students, faculty, or
lobbying and grassroots lobbying
spent excessive amounts on lobbying,
administrative staff to submit
expenditures. If the electing public
you must know which expenditures are
information to the school that the
charity does not meet this “expenditure
lobbying expenditures and which are
school otherwise does not require. For
test,” it will owe a section 4911 excise
not lobbying expenditures. An electing
each academic year, however, a record
tax on its excess lobbying expenditures.
public charity’s lobbying expenditures
of the method by which racial
Moreover, if over a 4-year averaging
for a year are the sum of its
composition is determined must be
period the organization’s average
expenditures during that year for (1)
maintained. . . .
annual total lobbying or grassroots
direct lobbying communications (“direct
2. The Service does not require that
lobbying expenditures are more than
lobbying expenditures”) plus (2)
a school release personally identifiable
150% of its dollar limits, the
grassroots lobbying communications
records or personal information
organization will lose its exempt status.
(“grassroots expenditures”).
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Instructions for Schedule A (Form 990 or 990-EZ)
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