Instructions For Schedule A (Form 990 Or 990-Ez) - 2007 Page 11


made on its behalf (after November 6,
faculty, and administrative staff for each
and information will create a
1975) that are contrary to its publicity of
academic year.
presumption that the organization has
a racially nondiscriminatory policy as to
2. Records sufficient to document
failed to comply with these guidelines.
students, to the extent that the school
that scholarship and other financial
Part VI-A. Lobbying
or its principal official were aware of
assistance is awarded on a racially
such statements.
nondiscriminatory basis.
Expenditures by Electing
3. Copies of all brochures,
4.04 Facilities and programs. A
catalogues, and advertising dealing
Public Charities
school must be able to show that all of
with student admissions, programs, and
its programs and facilities are operated
Complete Part VI-A only for an eligible
scholarships. Schools advertising
in a racially nondiscriminatory manner.
organization that elected to be subject
nationally or in a large geographic
to the lobbying expenditure limitations
4.05 Scholarship and loan
segment or segments of the United
of section 501(h) by filing Form 5768
programs. As a general rule, all
States need only maintain a record
and for which the election was valid
scholarship or other comparable
sufficient to indicate when and in what
and in effect for its tax year beginning
benefits procurable for use at any given
publications their advertisements were
in the year 2007.
school must be offered on a racially
nondiscriminatory basis. Their
4. Copies of all materials used by or
A public charity that makes a valid
availability on this basis must be known
on behalf of the school to solicit
section 501(h) election may spend up
throughout the general community
to a certain percentage of its exempt
being served by the school and should
purpose expenditures to influence
be referred to in the publicity required
7.02 Limitation.
legislation without incurring tax or losing
by this section in order for that school
its tax-exempt status.
1. For purposes of section 7.01, the
to be considered racially
racial composition of the student body,
Expenditure test. Under the
nondiscriminatory as to students. . . .
faculty, and administrative staff may be
expenditure test, there are limits both
Scholarships and loans that are made
an estimate based on the best
upon the amount of the organization’s
pursuant to financial assistance
information readily available to the
grassroots lobbying expenditures and
programs favoring members of one or
school, without requiring student
upon the total amount of its direct
more racial minority groups that are
applicants, students, faculty, or
lobbying and grassroots lobbying
designed to promote a school’s racially
administrative staff to submit
expenditures. If the electing public
nondiscriminatory policy will not
information to the school that the
charity does not meet this expenditure
adversely affect the school’s exempt
school otherwise does not require. For
test, it will owe a section 4911 excise
status. Financial assistance programs
each academic year, however, a record
tax on its excess lobbying expenditures.
favoring members of one or more racial
of the method by which racial
Moreover, if over a 4-year averaging
groups that do not significantly
composition is determined must be
period the organization’s average
derogate from the school’s racially
maintained. . . .
annual total lobbying or grassroots
nondiscriminatory policy similarly will
2. The Service does not require that
lobbying expenditures are more than
not adversely affect the school’s
a school release personally identifiable
150% of its dollar limits, the
exempt status.
records or personal information
organization will lose its exempt status.
contained therein except in accordance
4.06 Certification. An individual
The following terms are used in Part
with the requirements of the ‘‘Family
authorized to take official action on
VI-A. See Regulations section 56.4911
Educational Rights and Privacy Act of
behalf of a school that claims to be
for details.
1974,’’ 20 U.S.C. section 1232g (1974).
racially nondiscriminatory as to
Exempt purpose expenditures. The
Similarly, the Service does not require a
students is required to certify annually,
amount an electing public charity may
school to keep records the
under penalties of perjury, that to the
spend on lobbying (without incurring
maintenance of which is prohibited
best of his or her knowledge and belief
tax) is a scaled percentage of the
under state or federal law.
the school has satisfied the applicable
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
In general, exempt purpose
information that each of these records
faculty and administrative staff is
expenditures are:
would provide has been included in a
indicative of a racially discriminatory
1. The total amount paid or incurred
report or reports filed in accordance
policy as to students. Conversely, the
for religious, charitable, scientific,
with law with an agency or agencies of
absence of racial discrimination in
literary, or educational purposes, or for
Federal, state, or local government, and
employment of faculty and
the prevention of cruelty to children or
this information is current within one
administrative staff is indicative of a
animals, or to foster national or
year, and
racially nondiscriminatory policy as to
2. The school maintains copies of
international amateur sports
these reports from which this
competition (not including providing
7.01 Specific records. Except as
athletic facilities or equipment, other
information is readily obtainable.
provided in section 7.03, each exempt
than by qualified amateur sports
Records described in section 7.01
private school must maintain for a
organizations described in section
providing information not included in
minimum period of three years,
reports filed with an agency or agencies
beginning with the year after the year of
2. The allocable portion of
must be maintained by the school for
compilation or acquisition, the following
Service use.
administrative expenses paid or
records for the use of the Service on
incurred for the above purposes,
proper request:
7.04 Failure to maintain records.
3. Amounts paid or incurred to try to
1. Records indicating the racial
Failure to maintain or to produce upon
influence legislation, whether or not for
composition of the student body,
the proper request the required records
the purposes described in 1 above,
Instructions for Schedule A (Form 990 or 990-EZ)


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