maintain library facilities that are open
member includes only a person’s
organization described in section
to the public.
spouse, ancestors, children,
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
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
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
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
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
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)
contributions below the 2% figure
and (vi). Value the organization’s
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
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.
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,
Instructions for Schedule A (Form 990 or 990-EZ)