Instructions For Schedule A (Form 990 Or 990-Ez) - 2007 Page 2


and Key Employees). Also do not
Example. S is not a key employee.
Part II-B. Compensation
include key employees in table one.
S receives a salary of $35,000 and a
of the Five Highest Paid
$3,000 bonus. S also receives
In columns (c) through (e), show all
company-paid medical, dental, and life
cash and noncash forms of
Independent Contractors
insurance benefits for his family of
compensation for each listed non-key
$12,000. During the year, S received
for Other Services
employee whether paid currently or
family educational benefits of $5,000.
deferred. For purposes of reporting all
Complete Part II-B for the five highest
Enter in column (c) $38,000; enter in
amounts in columns (c) through (e),
paid independent contractors (whether
column (d) $12,000; enter in column (e)
either use the organization’s tax year,
individuals or firms) who performed
$5,000. Total compensation of S is
or the calendar year ending within such
services, that were other than services
$55,000, even though his salary and
tax year.
of a professional nature for the
bonus is only $38,000. S is listed in
organization and, in return, received
The organization also may provide
Part I as one of the highest paid
over $50,000 for the year from the
an attachment to explain the entire year
organization. For a definition of
2007 compensation package for any
independent contractor, see Part II-A,
See Pub. 525, Taxable and
person listed in Part I.
Nontaxable Income, for more
Column (c)
For purposes of reporting amounts in
column (c), either use the
Enter salary, fees, bonuses, and
organization’s tax year, or the calendar
severance payments received by each
Part II-A. Compensation
year ending within such tax year.
listed non-key employee. Include
of the Five Highest Paid
current year payments of amounts
Also show the number of other
reported or reportable as deferred
independent contractors who received
Independent Contractors
compensation in any prior reporting
more than $50,000 for the year for
for Professional
performing such services but who are
not individually listed in Part II-B.
Column (d)
The organization may include an
Include in column (d) all forms of
Complete Part II-A for the five highest
attachment that explains the 2007
deferred compensation and future
paid independent contractors (whether
compensation package for any person
severance payments (whether or not
individuals or firms) who performed
listed in Part II-B.
funded, whether or not vested, and
personal services of a professional
whether or not the deferred
nature for the organization and, in
Part III. Statements
compensation plan is a qualified plan
return, received over $50,000 for the
About Activities
under section 401(a)). Include in this
year from the organization.
column payments to welfare benefit
Line 1. If the organization answered
plans on behalf of the employee. Such
For purposes of reporting amounts in
“Yes” on this line, it must complete Part
plans provide benefits such as medical,
column (c), either use the
VI-A or VI-B and include the additional
dental, life insurance, severance pay,
organization’s tax year, or the calendar
information discussed under those
disability, etc. Reasonable estimates
year ending within such tax year.
parts; otherwise, the return may be
may be used if precise cost figures are
considered incomplete.
not readily available.
Also show the number of other
independent contractors who received
Enter the total expenses paid or
Unless the amounts are reported in
more than $50,000 for the year for
incurred in connection with the lobbying
column (c), report as deferred
performing professional services but
activities described on line 1. The
compensation in column (d), salaries
who are not individually listed in Part
amount of expenses the organization
and other compensation earned during
enters must equal the amounts on line
the reporting period, but not yet paid by
38, Part VI-A, or line i, Part VI-B.
the date the organization files its return.
Independent contractors are persons
Substantial part test. In general,
who are not treated as employees for
Column (e)
a section 501(c)(3) organization may
employment tax purposes. Independent
not devote a substantial part of its
Enter in column (e) both taxable and
contractors may be individuals or firms.
activities to attempts to influence
nontaxable fringe benefits (other than
Professional independent contractors
legislation. Under the substantial part
de minimis fringe benefits described in
generally include attorneys,
test, if such an organization engages in
section 132(e)). Include expense
accountants, auditors, health care
substantial lobbying activities, the
allowances or reimbursements that the
professionals, investment advisors, and
organization will lose both its
recipients must report as income on
professional fundraisers.
tax-exempt status and its ability to
their separate income tax returns.
receive tax-deductible charitable
Examples include:
The organization may, at its
contributions. Except for churches,
Amounts for which the recipient did
discretion, provide an attachment to
certain church affiliated organizations,
not account to the organization,
explain the entire year 2007
and private foundations, an
Allowances that were more than the
compensation package for any person
organization that loses its section
payee spent on serving the
listed in Part II-A.
501(c)(3) status because it did not meet
organization, and
the substantial part test will owe an
Fundraising fees exceeding $50,000
Payments made in connection with
excise tax under section 4912 on all of
are reported in Part II-A, but not
indemnification arrangements, the
its lobbying expenditures. Managers of
reimbursements for amounts paid by
value of the personal use of housing,
the organization may also be jointly and
the fundraiser to others for printing,
automobiles, or other assets owned or
severally liable for this tax.
paper, envelopes, postage, mailing list
leased by the organization (or provided
rental, etc. Part II-A is intended for the
for the organization’s use without
Expenditure test. As an
fee portion of payments to contractors,
charge), as well as any other taxable
alternative to the substantial part test,
not for any expense reimbursements.
and nontaxable fringe benefits.
eligible public charities may elect the
Instructions for Schedule A (Form 990 or 990-EZ)


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