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

501(c)(3) (including a nonexempt

1. Do officials of the supported

Section 509(a)(2) computation:

Line

charitable trust described in section

public charity(ies) select a majority of

the supporting organization’s directors

4947(a)(1)), that is required to

27c Add: Amounts from column (e),

or trustees?

distribute, or normally distributes, at

lines 15, 16, 17, 20, and 21 . . . $120,000

least 25% of its adjusted net income

2. Does the organization otherwise

27d Total of line 27a . . . . $25,000

(within the meaning of section 4942(f))

meet the requirements of Regulations

Total of line 27b . . . .

20,000

45,000

to a section 509(a)(2) organization, if

section 1.509(a)-4(g)?

•

27e Public support (line 27c minus

the distribution normally comprises at

Type II. A Type II supporting

line 27d total) . . . . . . . . . . . .

$75,000

least 5% of the distributee

organization is supervised or controlled

27f Total support (line 23,

organization’s adjusted net income.

in connection with one or more publicly

column (e)) . . . . . . . $200,000

supported organizations. A Type II

27g Public support percentage (line

If an organization receives an

relationship is comparable to a

27e divided by line 27f —

amount from a split-interest trust

brother-sister relationship. If the

$75,000/$200,000) . . . . . . . .

37.50%

described in section 4947(a)(2) that is

27h Investment income percentage

organization can answer “Yes,” to one

required to distribute, or normally

(line 18 divided by line 27f —

of the following questions, check the

$80,000/$200,000) . . . . . . . .

40.00%

distributes, at least 25% of its adjusted

box for “Type II.”

net income to a section 509(a)(2)

1. Is majority control of

T organization received 37.50% of

organization, and the distribution

management of the supported

its total support from the public and

normally comprises at least 5% of the

organization(s) vested in the same

thus met the more-than-one-third test of

distributee organization’s adjusted net

persons who control or manage the

public support to total support. T

income, the amount retains the

supporting organization, such as

organization’s investment income

character of gross investment income if

directors, trustees, and officers?

percentage was 40.00%. Therefore, it

it would be characterized as gross

did not meet the second part of the

2. Does the organization otherwise

investment income attributable to

section 509(a)(2) test — the

meet the requirements of Regulations

transfers in trust after May 26, 1969, if

not-more-than-one-third of total support

section 1.509(a)-4(h)?

the trust were a private foundation.

•

from gross investment income and net

Type III – Functionally Integrated. A

unrelated business taxable income.

Type III functionally integrated

All income characterized under the

Since T organization did not satisfy

organization is a Type III supporting

rules above as gross investment

both of the one-third tests of section

organization which is not required,

income in the possession of the

509(a)(2), it failed the section 509(a)(2)

under regulations established by the

distributing organization is considered

public support test for this year. An

Secretary, to make payments to

to be distributed first by the

organization that fails the public support

supported organizations (as defined

organization and keeps its character as

test for 2 consecutive years loses its

under section 509(f)(3)) due to the

such in the possession of the recipient.

public charity status and becomes a

activities of the organization related to

private foundation.

performing the functions of, or carrying

For more details, see Regulations

out the purposes of, such supported

Line 13. Supporting organization.

section 1.509(a)-5 that covers special

organizations, see section 4943(f)(5).

Check the box on line 13 if the

rules of attribution.

Check the Type III Functionally

organization is a supporting

Integrated box if the organization has

If the organization received any

organization. A supporting organization

provided a written representation along

amounts from either kind of

is an organization that is operated only

with specified documents to a grantor

for the benefit of and in connection with

organization above, attach a statement.

to establish that the organization is a

organizations listed in lines 5 through

Show the amounts received from each

functionally integrated Type III

12, or with organizations described in

organization, including amounts, such

supporting organization in accordance

sections 501(c)(4), (5), or (6) that meet

as gifts, that are not investment

the tests of section 509(a)(2) (described

with Section 3 of Notice 2006-109.

income.

in line 12). For more information about

Notice 2006-109 states that for limited

Example. T organization reported

supporting organizations, see

purposes, an organization will be

Regulations section 1.509(a)-4.

the following amounts in its Support

considered a functionally integrated

Schedule for the 4-year period 2003

Type III supporting organization if the

If the organization is a supporting

activities it engages in is for, or on

through 2006:

organization, it must also check one of

behalf of, the supported organization

the four boxes above the line 13 table

Line

(e) Total

are activities to perform the functions

to show the type of supporting

of, or to carry out the purposes of, such

organization it is and complete columns

Gifts, grants & contributions . .

$45,000

organizations, and but for the

(a) through (e) of the line 13 table.

Membership fees . . . . . . . . .

50,000

involvement of the supporting

Type of supporting organization.

Gross receipts from

organization, would normally be

Use the information below to determine

admissions, merchandise, etc.

25,000

engaged in by the supported

the type of supporting organization the

organizations themselves. See

Gross income from interest,

organization is. Check only one of the

dividends, etc. . . . . . . . . . . .

80,000

Regulations section 1.509(a)-4(i)(3)(ii).

four boxes.

•

Total of lines 15 through 22 . . $200,000

Type I. A Type I organization is

Regulations defining

operated, supervised or controlled by

27a Gifts from disqualified persons

$25,000

functionally integrated have not

one or more publicly supported

b Excess gross receipts from

been issued since section

CAUTION

organizations. The relationship between

nondisqualified persons . . . . .

$20,000

509(a)(3) was revised by the Pension

the supported organization and the

Protection Act of 2006, H.R. 4.

supporting organization is comparable

•

T organization determined whether

Type III – Other. Check this box if

to that of a parent-subsidiary

or not it met the one-third tests of

the organization is not described as a

relationship. If the organization can

section 509(a)(2) in the following

answer “Yes” to one of the following

Type I, Type II, or Type III-Functionally

computation:

questions, check the box for “Type I.”

Integrated organization.

-7-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2007 Page 7

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