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

maintain library facilities that are open

member includes only a person’s

organization described in section

to the public.

spouse, ancestors, children,

501(e).

•

Tax revenues levied for the

grandchildren, great grandchildren, and

Line 9. Hospital Medical Research

organization’s benefit and either paid to

the spouses of children, grandchildren,

Organization. Check the box on line 9

or expended on its behalf.

and great grandchildren.

for a medical research organization

•

The value of services or facilities

5. A corporation, partnership, trust,

operated in connection with or in

(exclusive of services or facilities

or estate in which persons described in

conjunction with a hospital. The hospital

generally furnished, without charge, to

1 through 4 above own more than 35%

must be described in section 501(c)(3)

the public) furnished by a governmental

of the voting power, profits interest, or

or operated by the Federal government,

unit to the organization without charge.

beneficial interest. See section

a state or its political subdivision, a U.S.

For example, a city pays the salaries of

4946(a)(1).

possession or its political subdivision,

personnel to guard a museum, art

or the District of Columbia.

Normally to satisfy public support

gallery, etc., or provides the use of a

Medical research is studies and

test. An organization is considered

building rent free. However, the term

experiments done to increase or verify

normally to satisfy the public support

does not include the value of any

information about physical or mental

test (for lines 10, 11, and 12 of the

exemption from federal, state, or local

diseases and disabilities and their

Support Schedule) for its current tax

tax or any similar benefit.

causes, diagnosis, prevention,

year and the tax year immediately

Indirect contributions from the

treatment, or control. The organization

following its current tax year, if the

general public. Indirect contributions

must conduct the research directly and

organization satisfies the applicable

are what the organization receives from

continuously. If it primarily gives funds

support test for the 4 tax years

other organizations that receive a

to other organizations (or grants and

immediately before the current tax year.

substantial part of their support from

scholarships to individuals) for them to

If the organization has a material

general public contributions. An

do the research, the organization is not

change (other than from unusual

example is the organization’s share of

a medical research organization.

grants — see instructions for line 28) in

the proceeds from an annual

The organization is not required to

its sources of support during the current

community chest drive (such as the

be an affiliate of the hospital, but there

tax year, the data ordinarily required in

United Way or United Fund). These are

must be an understanding that there

the Support Schedule covering the

included on line 15.

will be close and continuous

years 2003 through 2006 must be

cooperation in any joint-effort medical

Disqualified person. A disqualified

submitted for the years 2003 through

research.

person is:

2007. Prepare and attach a 5-year

Assets test/Expenditure test. An

1. A substantial contributor, who

schedule using the same format as

organization qualifies as a medical

is —

provided in the Support Schedule for

research organization if its principal

lines 15 through 28.

a. Any person who gave an

purpose is medical research, and it

aggregate amount of more than $5,000,

Lines 5 through 14. Reason for

devotes more than half its assets, or

if that amount is more than 2% of the

Non-Private Foundation Status.

spends at least 3.5% of the fair market

total contributions the foundation or

Check one of the boxes on these lines

value of its endowment, in conducting

organization received from its inception

to indicate the reason the organization

medical research directly.

through the end of the year in which

is not a private foundation. The

Either test may be met based on a

that person’s contributions were

organization’s exemption letter states

computation period consisting of the

received.

this reason, or the local IRS office can

immediately preceding tax year or the

b. The creator of a trust (without

tell the organization the reason.

immediately preceding 4 tax years.

regard to the amount of contributions

Line 6. School. Check the box on line

received by the trust from the creator

If an organization does not satisfy

6 for a school whose primary function is

and other persons).

either the assets test or the expenditure

•

the presentation of formal instruction,

Any person who is a substantial

test, it may still qualify as a medical

and which regularly has a faculty, a

contributor at any time generally

research organization, based on the

curriculum, an enrolled body of

remains a substantial contributor for all

circumstances involved.

students, and a place where

future periods even if later contributions

These tests are discussed in

educational activities are regularly

by others push that person’s

Regulations sections 1.170A-9(c)(2)(v)

conducted.

contributions below the 2% figure

and (vi). Value the organization’s

discussed above.

A private school, in addition, must

assets as of any day in its tax year but

•

Gifts from the contributor’s spouse

have a racially nondiscriminatory policy

use the same day every year. Value the

are treated as gifts from the contributor.

toward its students. For details about

endowment at fair market value, using

•

Gifts are generally valued at fair

these requirements, see the

commonly accepted valuation methods.

market value as of the date the

instructions for Part V.

(See Regulations section 20.2031.)

organization received them.

Line 7. Hospital or Cooperative

Line 10. Organization Operated for

2. An officer, director, or trustee of

Hospital Service Organization.

the Benefit of a Governmental Unit.

the organization or any individual

Check the box on line 7 for an

Check the box on line 10 and complete

having powers or responsibilities similar

organization whose main purpose is to

the Support Schedule if the

to those of officers, directors, or

provide hospital or medical care. A

organization receives and manages

trustees.

rehabilitation institution or an outpatient

property for and expends funds to

3. An owner of more than 20% of

clinic may qualify as a hospital, but the

benefit a college or university that is

the voting power of a corporation,

term does not include medical schools,

owned or operated by one or more

profits interest of a partnership, or

medical research organizations,

states or their political subdivisions. The

beneficial interest of a trust or an

convalescent homes, homes for the

school must be as described in the first

unincorporated enterprise that is a

aged, or vocational training institutions

paragraph of the instructions for line 6.

substantial contributor to the

for the handicapped.

organization.

Expending funds to benefit a college

4. A family member of an individual

Check the box on line 7 also for a

or university includes acquiring and

in the first three categories. A family

cooperative hospital service

maintaining the campus, its buildings,

-5-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2007 Page 5

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