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


501(c)(3) (including a nonexempt
1. Do officials of the supported
Section 509(a)(2) computation:
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 . . . .
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) . . . . . . . . . . . .
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) . . . . . . . .
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) . . . . . . . .
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.
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
(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 . .
organizations, and but for the
(a) through (e) of the line 13 table.
Membership fees . . . . . . . . .
involvement of the supporting
Type of supporting organization.
Gross receipts from
organization, would normally be
Use the information below to determine
admissions, merchandise, etc.
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. . . . . . . . . . . .
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
functionally integrated have not
one or more publicly supported
b Excess gross receipts from
been issued since section
organizations. The relationship between
nondisqualified persons . . . . .
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
questions, check the box for “Type I.”
Integrated organization.
Instructions for Schedule A (Form 990 or 990-EZ)


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