2008 Instructions For Schedule J (Form 990) (Page 2 of 6) in pdf

of all or part of a listed person’s

to reimbursing or allowing all such

employment agreements involving

residence for any purpose of the

expenses incurred by all officers,

similarly situated top management

organization.

directors, and trustees, including the

officials with similarly situated

CEO, executive director, or other top

organizations, or written employment

Health or social club dues or

management official (all referred to as

offers to the top management official

initiation fees refers to any payment of

top management official). An

from other organizations dealing at

dues by the organization for the

organization may answer “Yes” if it

arm’s length.

membership of a listed person in a

checked the “Discretionary spending

Compensation survey or study refers

health or fitness club or a social or

account” box on line 1 and required

to a study of top management official

recreational club, whether or not such

substantiation of expenses under the

compensation or functionally

clubs are tax-exempt. It does not

rules for accountable plans for all listed

comparable positions in similarly

include membership fees for an

benefits on line 1 other than for

situated organizations.

organization described in section

discretionary spending accounts.

501(c)(3) or section 501(c)(6) unless

Approval by board or compensation

Line 3. Check the appropriate box(es)

such organization provides health,

committee refers to the ultimate

to indicate which methods, if any, the

fitness, or recreational facilities

decision by the governing body or

organization used to establish the

available for the regular use of a listed

compensation committee on behalf of

compensation of the organization’s top

person. Health club dues do not include

the organization whether to enter into

management official. Do not check any

provision by the organization of an

an employment agreement with the top

box(es) for methods used by a related

on-premises athletic facility described in

management official, and the terms of

organization to establish the filing

section 132(j)(4), or provision by a

such agreement.

organization’s compensation of its top

school of an athletic facility available for

Line 4. List in Part III the names of

management official. Explain in Part III

general use by its students, faculty, and

listed persons paid amounts during the

that the organization relied on a related

employees. Dues include the entrance

year by the filing organization or a

organization that used one or more of

fee, periodic fees, and amounts paid for

related organization under any

the methods described below to

use of such facilities.

arrangement described in lines 4a

establish the top management official’s

Personal services refers to any

through 4c, and report the amounts

compensation.

services for the personal benefit of a

paid during the year to each such listed

Compensation committee refers to a

listed person or the family or friends of

person. Also describe in Part III the

committee of the organization’s

a listed person, whether provided

terms and conditions of any

governing body responsible for

regularly (on a full-time or part-time

arrangement described in lines 4a

determining the top management

basis) or as needed, whether provided

through 4c in which one or more listed

official’s compensation package,

by an employee of the organization or

persons participated during the year,

whether or not the committee has been

independent contractor (and whether

regardless of whether any payments to

delegated the authority to make an

the independent contractor is an

the listed person were made during the

employment agreement with the top

individual or an organization). They

year.

management official on behalf of the

include, but are not limited to, services

Line 4a. Answer “Yes” if a listed

organization. The compensation

of a babysitter, bodyguard, butler,

person received a severance or

committee may also have other duties.

chauffeur, chef, concierge or other

change-of-control payment from the

person who regularly runs

Independent compensation

organization or a related organization.

non-incidental personal errands, escort,

consultant refers to a person outside

A severance payment is a payment

financial planner, handyman,

the organization who advises the

made if the right to the payment is

landscaper, lawyer, maid, masseur/

organization regarding the top

contingent solely upon the person’s

masseuse, nanny, personal trainer,

management official’s compensation

severance from service in specified

personal advisor or counselor, pet

package, holds himself or herself out to

circumstances, such as upon an

sitter, physician or other medical

the public as a compensation

involuntary separation from service.

specialist, tax preparer, and tutor for

consultant, or performs valuations of

Payments under a change-of-control

non-business purposes. Personal

non-profit executive compensation on a

arrangement are made in connection

services do not include services

regular basis, and is qualified to make

with a termination or change in the

provided to all employees on a

valuations of the type of services

terms of employment resulting from a

nondiscriminatory basis under a

provided. The consultant is

change in control of the organization.

qualified employee benefit plan.

independent if he or she does not have

Treat as a severance payment any

a family relationship or business

Line 1b. If the organization

payment to a listed person in

relationship with the top management

provided any of the benefits listed in

satisfaction or settlement of a claim for

official, and if a majority of his or her

line 1a, to one or more listed persons,

wrongful termination or demotion.

appraisals made during his or her

answer “Yes” if the organization

Line 4b. Answer “Yes” if a listed

taxable year are performed for persons

followed a written policy regarding the

person participated in or received

other than the organization, even if the

payment, provision, or reimbursement

payment from any supplemental

consultant’s firm also provides tax,

of all such benefits to listed persons. If

nonqualified retirement plan

audit, and other professional services to

the organization did not follow a written

established, sponsored, or maintained

the organization.

policy for payment, provision, or

by or for the organization or a related

reimbursement of any listed benefits,

Form 990 of other organizations

organization. A supplemental

explain in Part III who determined the

refers to compensation information

nonqualified retirement plan is a

organization would provide such

reported on Forms 990, Form 990-EZ,

nonqualified retirement plan that is not

benefits and the decision-making

or Form 990-PF of similarly situated

generally available to all employees but

process.

organizations.

is available only to a certain class or

Line 2. Answer “Yes” if the

Written employment contract refers

classes of management or highly

organization required substantiation of

to one or more recent or current written

compensated employees. For this

all expenses or benefits listed on line 1,

employment agreements to which the

purpose, include as a supplemental

in accordance with the rules for

top management official and another

nonqualified retirement plan a plan

accountable plans discussed later, prior

organization are or were parties, written

described in section 457(f), but do not

-2-

2008 Instructions For Schedule J (Form 990) Page 2

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