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outstanding between the organization and

committee of the governing body)

Excess benefit transactions reported

an interested person.

approved the loan transaction.

in Schedule L, Part I.

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Loans reported (or not required to be

Interested persons. For Form 990

Column (g). State whether the loan is

reported) in Schedule L, Part II.

filers, interested persons for purposes of

evidenced by a promissory note or other

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Business transactions that do not

Part II, are as follows.

written agreement signed by the debtor.

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contain any gift element and that are

Current or former officers, directors,

engaged in to serve the direct and

Part III. Grants or

trustees, key employees, and five

immediate needs of the organization,

highest compensated employees listed

Assistance Benefiting

such as payment of compensation

in Form 990, Part VII, Section A are

(including taxable and nontaxable fringe

interested persons for all organizations.

Interested Persons

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benefits treated as compensation) to an

For organizations described in sections

Report each grant or other assistance

employee or consultant in exchange for

501(c)(3) or 501(c)(4), disqualified

(including provision of goods, services, or

services of comparable value. Some such

persons as described in section

use of facilities), regardless of amount,

transactions may be reportable on

4958(f)(1) are also interested persons.

provided by the organization to any

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Schedule L, Part IV.

For organizations described in section

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interested person at any time during the

Compensation to a person listed in

509(a)(3), disqualified persons as

organization’s tax year. Examples of

Form 990, Part VII, Section A (including

described in section 4958(c)(3)(B) are

grants are scholarships, fellowships,

taxable and nontaxable fringe benefits

also interested persons.

internships, prizes, and awards. A grant

treated as compensation).

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For Form 990-EZ filers, interested

includes the gift portion of a part-sale,

Grants to employees (and their

persons for purposes of Part II are current

part-gift transaction.

children) of a substantial contributor or

officers, directors, trustees, and key

35% controlled entity of a substantial

See the reasonable effort

employees listed on Form 990-EZ, Part

contributor, awarded on an objective and

TIP

instruction later, applicable to Part

IV.

nondiscriminatory basis based on

III.

pre-established criteria and reviewed by a

Exceptions. Do not report the following

selection committee, as described in

in Part II.

Interested person. For purposes of Part

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Regulations section 53.4945-4(b).

Excess benefit transactions reported

III, an “interested person” means a

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Grants or assistance provided to an

in Schedule L, Part I.

current or former officer, director, trustee,

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interested person as a member of the

Advances under an accountable plan

or key employee listed in Form 990, Part

charitable class or other class (such as a

as described in the Schedule J (Form

VII, Section A; a substantial contributor;

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

990), Compensation Information, Part II

or a related person.

(c)(7) organization) that the organization

instructions.

For purposes of Schedule L, Part III, a

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intends to benefit in furtherance of its

Pledges receivable that would qualify

“substantial contributor” is a person that

exempt purpose, if provided on similar

as charitable contributions when paid.

contributed during the organization’s tax

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terms as provided to other members of

Accrued but unpaid compensation

year at least $5,000 and is required to be

the class, such as short-term disaster

owed by the organization.

reported by name in Schedule B (Form

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relief or trauma counseling. However,

Loans from a credit union made to an

990, 990-EZ, or 990-PF), Schedule of

grants for travel, study, or other similar

interested person on the same terms as

Contributors, for the organization’s tax

purposes (such as to achieve a specific

offered to other members of the credit

year. Thus, organizations not required to

objective, produce a report or other

union.

file Schedule B are not required to report

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similar product, or improve or enhance a

Receivables outstanding that were

transactions with substantial contributors

literary, artistic, musical, scientific,

created in the ordinary course of the

and their related persons in Schedule L,

teaching, or other similar capacity, skill, or

organization’s business on the same

Part III.

talent of the grantee) like those described

terms as offered to the public (such as

A “related person” in turn means:

in section 4945(d)(3) are not excluded

receivables for medical services provided

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A member of the organization’s grant

from reporting under this exception.

by a hospital to an officer of the hospital).

selection committee;

Column (a). Identify the interested

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Column (a). Enter the name of the

A family member of any of the

person that was the debtor or creditor on

interested person that benefitted from the

organization’s current or former officers,

the loan. Also, state the organization’s

grant or assistance. If the person has

directors, trustees, or key employees

purpose for engaging in the transaction

status as an interested person only

listed in Form 990, Part VII, Section A, of

(for example, “compensation package”).

because the person is a substantial

substantial contributors, or of members of

contributor, a family member of a

Column (b). Check either “to” or “from”

the organization’s grant selection

substantial contributor, a 35% controlled

whichever is applicable.

committee;

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entity of a substantial contributor, or an

A 35% controlled entity (as defined in

Column (c). State the original dollar

employee of a substantial contributor or

section 4958(f)(3)) of any of the

amount owed (the loan principal).

35% controlled entity of a substantial

organization’s current or former officers,

Column (d). State the balance due as of

contributor, then enter the term

directors, trustees, or key employees

the end of the organization’s tax year,

“substantial contributor” or “related to

listed in Form 990, Part VII, Section A; of

including outstanding principal, accrued

substantial contributor” (as the case may

a substantial contributor; or of a member

interest, and any applicable penalties and

be) instead of the interested person’s

of the organization’s selection committee;

collection costs. For Form 990 filers, the

name, in order to protect the

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sum total indicated in column (d) must

confidentiality of the substantial

An employee (or child of an employee)

equal the total of Form 990, Part X

contributor.

of a substantial contributor or of a 35%

(Balance Sheet), lines 5 and 6, column

controlled entity of a substantial

Column (b). Describe the relationship

(B) (for amounts owed to the

contributor, but only if the employee (or

between the interested person that

organization), and line 22, column (B) (for

child of an employee) received the grant

benefitted from the grant or assistance

amounts owed by the organization).

or assistance by the direction or advice of

and the organization, such as “spouse of

Column (e). Answer “Yes” if any

the substantial contributor or 35%

Director John Smith.” If “substantial

payment by the debtor was past due as of

controlled entity, or under a program

contributor” was entered in column (a),

the end of the organization’s tax year, or

funded by the substantial contributor that

enter “substantial contributor” here as

if the debtor otherwise is in default under

was intended primarily to benefit such

well. If “related to substantial contributor”

the terms and conditions of the loan.

employees (or their children).

was entered in column (a), then describe

Column (f). State whether the

Exceptions. Do not report the following

the relationship without referring to

organization’s governing body (or a

in Part III.

specific names, for example: “child of

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Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2008 Page 2

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