Instructions For Schedule A (Form 990 Or 990-Ez)

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

placed.

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

contributions.

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

students.

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,

501(j)(2)),

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,

-11-

Instructions for Schedule A (Form 990 or 990-EZ)

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

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