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Part III. Grants or

IRS, unless abated. Form 4720, Return of

Loans from a credit union made to an

Certain Excise Taxes Under Chapters 41

interested person on the same terms as

Assistance Benefiting

and 42 of the Internal Revenue Code,

offered to other members of the credit

Interested Persons

must be filed to report and pay the tax on

union.

excess benefit transactions.

Tax-exempt bonds purchased from

Report each grant or other assistance

the filing organization and held by an

(including provision of goods, services, or

Part II. Loans to and/or

interested person, so long as the

use of facilities), regardless of amount,

From Interested Persons

interested person purchased the bonds on

provided by the organization to any

the same terms as offered to the general

interested person at any time during the

Report details on loans, including salary

public.

organization's tax year. Examples of

advances and other advances and

Deposits into a bank account (when the

grants are scholarships, fellowships,

receivables (referred to collectively as

bank is an interested person) in the

discounts on goods or services,

“loans”), as described in Form 990, Part

ordinary course of business, on the same

internships, prizes, and awards. A grant

IV, line 26 (including receivables reported

terms as the bank offers to the general

includes the gift portion of a part-sale,

on Form 990, Part X, lines 5, 6, or 22),

public.

part-gift transaction.

Form 990-EZ, Part V, line 38a, or Form

Receivables for a section 501(c)(9)

990, Part X, line 5, 6, or 22. Report only

See Reasonable effort later,

voluntary employees' beneficiary

loans between the organization and

applicable to Part III.

organization from a sponsoring

TIP

interested persons that are outstanding as

organization or contributing employer of

of the end of the organization's tax year.

the VEBA, if those receivables were

Interested person. For purposes of Part

Report each loan separately, regardless of

created in the ordinary course of business

III, an “interested person” means a current

amount.

and have been due for 90 days or fewer.

or former officer, director, trustee, or

In addition to loans originally made

Receivables outstanding that were

key employee listed in Form 990, Part

between the organization and an

created in the ordinary course of the

VII, Section A; a substantial contributor; or

interested person, report also loans

organization's business on the same

a related person.

originally between the organization and a

terms as offered to the general public

For purposes of Schedule L, Part III, a

third party or between an interested

(such as receivables for medical services

“substantial contributor” is a person that

person and a third party that were

provided by a hospital to an officer of the

contributed during the organization's tax

transferred so as to become a debt

hospital).

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

outstanding between the organization and

Column (a). Identify the interested

reported by name in Schedule B (Form

an interested person.

person that was the debtor or creditor on

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

Interested persons. For Form 990 filers,

the loan.

Contributors, for the organization's tax

interested persons for purposes of Part II,

year. Thus, organizations not required to

Column (b). Identify the relationship

are:

file Schedule B are not required to report

between the interested person and the

For all organizations, current or former

transactions with substantial contributors

organization.

officers, directors, trustees, key

or their related persons in Schedule L,

employees, and highest compensated

Column (c). Describe the organization's

Part III.

purpose for engaging in the transaction.

employees listed in Form 990, Part VII,

A “related person” means:

Section A, are interested persons.

Column (d). Check either “To” or “From”,

A member of the organization's grant

For organizations described in section

whichever is applicable.

selection committee;

501(c)(3), 501(c)(4), or 501(c)(29),

A family member of any of the

Column (e). Enter the original dollar

disqualified persons as described in

organization's current or former officers,

amount owed (the loan principal).

section 4958(f)(1) are also interested

directors, trustees, or key employees

persons.

Column (f). Enter the balance due as of

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

For organizations described in section

the end of the organization's tax year,

substantial contributors, or of members of

509(a)(3), disqualified persons as

including outstanding principal, accrued

the organization's grant selection

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

interest, and any applicable penalties and

committee;

also interested persons.

collection costs. For Form 990 filers, the

A 35% controlled entity of any of the

For organizations described in section

sum total indicated in column (d) must

organization's current or former officers,

501(c)(9), contributing employers and

equal the total of Form 990, Part X,

directors, trustees, or key employees

sponsoring organizations are also

Balance Sheet, column (B), lines 5 and 6

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

interested persons.

(for amounts owed to the organization),

the family members thereof; of a

and column (B), line 22 (for amounts owed

For Form 990-EZ filers, interested

substantial contributor; or of a member of

by the organization).

persons for purposes of Part II are current

the organization's grant selection

officers, directors, trustees, and key

committee; or

Column (g). Answer “Yes” if any

employees listed on Form 990-EZ, Part IV.

An employee (or child of an employee)

payment by the debtor was past due as of

of a substantial contributor or of a 35%

the end of the organization's tax year, or if

Exceptions. Do not report the following

controlled entity of a substantial

the debtor otherwise is in default under the

in Part II:

contributor, but only if the employee (or

terms and conditions of the loan.

Excess benefit transactions reported

child of an employee) received the grant

in Schedule L, Part I.

Column (h). State whether the

or assistance by the direction or advice of

Advances under an accountable plan

organization's governing body (or a

the substantial contributor or 35%

as described in the instructions for Part II

committee of the governing body)

controlled entity, or under a program

of Schedule J (Form 990), Compensation

approved the loan transaction.

funded by the substantial contributor that

Information.

was intended primarily to benefit such

Column (i). State whether the loan is

Pledges receivable that would qualify

employees (or their children).

evidenced by a promissory note or other

as charitable contributions when paid.

written agreement signed by the debtor.

Accrued but unpaid compensation

Exceptions. Do not report the following

owed by the organization.

in Part III:

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Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2013 Page 2

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