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the debtor otherwise is in default under the

trauma counseling. However, grants for

the interested person during the

terms and conditions of the loan.

travel, study (such as scholarships or

organization's tax year.

fellowships), or other similar purposes

Column (h). State whether the

Column (d). Describe the type of

(such as to achieve a specific objective,

organization's governing body (or a

assistance provided to the interested

produce a report or other similar product,

committee of the governing body)

person.

or improve or enhance a literary, artistic,

approved the loan transaction.

musical, scientific, teaching, or other

Column (e). Describe the organization's

Column (i). State whether the loan is

similar capacity, skill, or talent of the

purpose in providing assistance to the

evidenced by a promissory note or other

interested person.

grantee) like those described in section

written agreement signed by the debtor.

4945(d)(3) are not excluded from

Example. A substantial contributor to the

reporting under this exception.

organization states that he would like Mr.

Part III. Grants or

(But see Schools, later, for instructions on

X and Ms. Y to be beneficiaries of a grant.

how to report grants, scholarships, and

Assistance Benefiting

The organization inquires of the

other assistance from colleges,

Interested Persons

substantial contributor whether Mr. X or

universities, primary, and secondary

Ms. Y are interested persons with respect

schools.) Grants that are awards

Report each grant or other assistance

to the organization because of a family or

recognizing past achievements also are

(including provision of goods, services, or

business relationship they have with the

not excluded from reporting under this

use of facilities), regardless of amount,

substantial contributor (using the pertinent

exception. Grants for travel, study, or

provided by the organization to any

instructions and definitions), and the

similar purposes do not include such

interested person at any time during the

substantial contributor replies in writing

purposes as short-term disaster relief,

organization's tax year. Examples of

that they are not. Whether they actually

poverty relief, or trauma counseling.

grants are scholarships, fellowships,

are interested persons or not, the

Grants or assistance to a section 501(c)

discounts on goods or services,

organization has made a reasonable effort

internships, prizes, and awards. A grant

(3) organization.

in this situation.

includes the gift portion of a part-sale,

Column (a). Enter the name of the

Schools. Colleges, universities, and

part-gift transaction.

interested person that benefitted from the

primary and secondary schools are not

grant or assistance. If the person has

See Reasonable effort earlier,

required to identify interested persons to

status as an interested person only

applicable to Part III.

whom they provided scholarships,

TIP

because the person is a substantial

fellowships, and similar financial

contributor, a family member of a

assistance. Instead, these organizations

Exceptions. Do not report the following

substantial contributor, a 35% controlled

must, in Part III, group each type of

in Part III:

entity of a substantial contributor, or an

financial assistance (for example,

Excess benefit transactions reported

employee of a substantial contributor or

need-based scholarships, merit

in Schedule L, Part I.

35% controlled entity of a substantial

scholarships, discounted tuition) provided

Loans reported (or not required to be

contributor, then enter the term

to interested persons in separate lines.

reported) in Schedule L, Part II.

“substantial contributor” or “related to

For each line, the school should report in

Business transactions that do not

substantial contributor” (as the case may

column (c) the aggregate dollar amount of

contain any gift element and that are

be) instead of the interested person's

each type of assistance, the type of

engaged in to serve the direct and

name, in order to protect the

assistance in column (d), and the purpose

immediate needs of the organization, such

confidentiality of the substantial

of the assistance in column (e), unless

as payment of compensation (including

contributor.

such reporting would be an unauthorized

taxable and nontaxable fringe benefits

disclosure of student education records

Column (b). Describe the relationship

treated as compensation) to an employee

under the Family Educational Rights and

between the interested person that

or independent contractor in exchange

Privacy Act (FERPA). Columns (a) and (b)

benefitted from the grant or assistance

for services of comparable value. Some

should be left blank for these lines.

and the organization, such as “spouse of

business transactions may be reportable

Director John Smith.” If “substantial

on Schedule L, Part IV.

Part IV. Business

contributor” was entered in column (a),

Compensation to a person listed in

enter “substantial contributor” here as well.

Transactions Involving

Form 990, Part VII, Section A (including

If “related to substantial contributor” was

taxable and nontaxable fringe benefits

Interested Persons

entered in column (a), then describe the

treated as compensation).

relationship without referring to specific

Report in Part IV business transactions for

Grants to employees (and their

names, for example: “child of employee of

which payments were made during the

children) of a substantial contributor or

35% controlled entity of substantial

organization's tax year between the

35% controlled entity of a substantial

contributor.”

organization and an interested person, if

contributor, awarded on an objective and

such payments exceeded the reporting

If an interested person has interested

nondiscriminatory basis based on

thresholds described below, and

person status other than by being a

pre-established criteria and reviewed by a

regardless of when the transaction was

substantial contributor or related to a

selection committee, as described in

entered into by the parties. The “ordinary

substantial contributor, then make no

Regulations section 53.4945-4(b).

course of business” exception to reporting

reference to the substantial contributor

Grants or assistance provided to an

business relationships on Form 990, Part

status. For example, if grantee Jane Smith

interested person as a member of the

VI, line 2, does not apply for purposes of

is both a substantial contributor and the

charitable class or other class (such as a

Schedule L, but see the exception below

spouse of Director John Smith, then she

member of a section 501(c)(5), 501(c)(6),

for publicly-traded companies.

must be listed by name in column (a), and

or 501(c)(7) organization) that the

column (b) must state “spouse of Director

organization intends to benefit in

In general, an organization must report

John Smith” or words to similar effect.

furtherance of its exempt purpose, if

business transactions in Part IV with an

provided on similar terms as provided to

Column (c). Enter the total dollar amount

interested person if: (1) all payments

other members of the class, such as

of grants and other assistance provided to

during the tax year between the

short-term disaster relief, poverty relief, or

organization and the interested person

Instructions for Schedule L

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Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2014 Page 3

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