2008 Instructions For Schedule H (Form 990) Page 15
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15grants or gifts to another organization that
cost of conducting the community needs
and D. Each of the organizations files a
may, at the discretion of the grantee
assessment in Part I, line 7e, column (c)
Form 990 and a Schedule H (Form 990).
organization, be used other than to
in the year it conducts the needs
A makes a restricted grant to B that is
provide the type of community benefit
assessment, but A need not report the
restricted to one or more of the
described in the table in Part I, line 7.
restricted grant from B in Part I, line 7e,
community benefit activities described in
column (d). The same result is obtained if
the table in Part I, line 7 (and the related
Special rule for grants to joint
B is unrelated to A, or if the grant is
worksheets and instructions). A’s grant is
ventures. If the organization makes a
unrestricted rather than required to be
not funded by a related organization. B
grant to a joint venture in which it has an
used by A to provide community benefit.
makes a restricted grant to C that is
ownership interest to be used to
funded by A’s restricted grant. C makes
accomplish one of the community benefit
Example 2. Use the same facts as in
an unrestricted grant to D that is funded
activities reportable in the table, in Part I,
Example 1, except A may also use the
by B’s restricted grant. Under these
line 7, report the grant on line 7i, but do
grant from B to make a grant to another
circumstances, A can report the grant to
not include the organization’s
organization (C), which must be used by
B on A’s Schedule H (Form 990), Part I,
proportionate share of the amount spent
C to provide community benefit. A makes
line 7i, but neither B nor C can report their
by the joint venture on such activities in
such a grant to C. A may not report the
respective grants to C and D on Part I,
any other part of the Table, to avoid
grant to C in Part I, line 7i, because it is
line 7i of their own Schedule H (Form
double-counting.
funded by a related organization, but A
990). If D uses the grant funds to make a
need not report the grant from B in Part I,
Example 1. The filing organization
grant restricted to one or more of the
line 7, column (d) for any line 7 item. This
(A) and foundation (B) are related
community benefit activities described in
is the result regardless of whether B and
organizations. B makes a grant to A that
the Table in Part I, D can report the grant
C are related organizations.
must be used by A to conduct a
on line 7i.
community needs assessment in a
Example 3. A is a related
community served by A. A may report the
organization with respect to each of B, C,
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