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

a private foundation. The organization’s

research organization, based on the

4946(a)(1)(C) through (G) (and related

exemption letter states this reason, or the

circumstances involved.

regulations) will be treated as if made by

local IRS office can tell you.

the donor.

These tests are discussed in

The 2% limitation does not apply to

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

Line 6. School. Check the box on line 6

support from governmental units referred

and (vi). Value the organization’s assets

for a school whose primary function is the

to in section 170(c)(1), or to contributions

as of any day in its tax year but use the

presentation of formal instruction, and

from publicly supported organizations

same day every year. Value the

which regularly has a faculty, a

(section 170(b)(1)(A)(vi)), that check the

endowment at fair market value, using

curriculum, an enrolled body of students,

box on their line 11a or 11b.

commonly accepted valuation methods.

and a place where educational activities

(See Regulations section 20.2031.)

are regularly conducted.

Example. X organization reported the

Line 10. Organization Operated for the

following amounts in its Support Schedule

A private school, in addition, must

Benefit of a Governmental Unit. Check

for the 4-year period 2000 through 2003:

have a racially nondiscriminatory policy

the box on line 10 and complete the

toward its students. For details about

Support Schedule if the organization

Line

(e) Total

these requirements, see the instructions

receives and manages property for and

for Part V.

Gifts, grants & contributions . . $300,000

expends funds to benefit a college or

Line 7. Hospital or Cooperative

university that is owned or operated by

Gross receipts from

Hospital Service Organization. Check

admissions, etc. . . . . . . . . . .

100,000

one or more states or their political

the box on line 7 for an organization

subdivisions. The school must be as

Dividends & interest . . . . . . .

300,000

whose main purpose is to provide hospital

described in the first paragraph of the

or medical care. A rehabilitation institution

Line 23 minus line 17 . . . . . . .

600,000

instructions for line 6.

or an outpatient clinic may qualify as a

26a 2% of line 24 (2% limitation) . .

12,000

Expending funds to benefit a college or

hospital, but the term does not include

university includes acquiring and

medical schools, medical research

b Total of contributions

maintaining the campus, its buildings, and

exceeding the 2% limitation . .

98,000

organizations, convalescent homes,

its equipment, granting scholarships and

homes for the aged, or vocational training

The X organization determined

student loans, and making any other

institutions for the handicapped.

whether or not it met the section

payments in connection with the normal

509(a)(1)/170(b)(1)(A)(vi) public support

Check the box on line 7 also for a

functions of colleges and universities.

test as follows:

cooperative hospital service organization

The organization must meet

described in section 501(e).

essentially the same public support test

Total support (line 24): . . . . . . . . . $600,000

Line 9. Hospital Medical Research

described below for line 11. See Rev. Rul.

Direct Contributions:

Organization. Check the box on line 9

82-132, 1982-2 C.B. 107.

for a medical research organization

Total direct contributions from

Line 11. Organization Meeting the

operated in connection with or in

persons who contributed less than

Section 509(a)(1) Public Support Test.

conjunction with a hospital. The hospital

2% of total support . . . . . . . . . . . .

50,000

Check either box (but not both) on line

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

11a or 11b and complete the Support

Total direct contributions from six

operated by the Federal Government, a

Schedule to determine whether the

donors, each of whom gave more

state or its political subdivision, a U.S.

organization meets the section 509(a)(1)/

than 2% ($12,000) of total support

170,000

possession or its political subdivision, or

170(b)(1)(A)(vi) public support test

Indirect contributions from the

the District of Columbia.

described below.

general public:

“Medical research” means studies and

The Support Schedule is completed for

United Fund . . . . . . . . . . . . . . . .

40,000

experiments done to increase or verify

an organization that “normally” (see Part

information about physical or mental

IV, Definitions) receives at least 33

% of

Grant from Y City . . . . . . . . . . . . .

40,000

diseases and disabilities and their

its support (excluding income received in

Total gifts, grants & contributions . . $300,000

causes, diagnosis, prevention, treatment,

exercising its charitable, etc., function)

or control. The organization must conduct

Total direct contributions

from:

•

the research directly and continuously. If

from six donors, each of

Direct or indirect contributions from the

whom gave more than 2%

it primarily gives funds to other

general public;

•

of total support . . . . . . . $170,000

organizations (or grants and scholarships

Other publicly supported (section

to individuals) for them to do the

170(b)(1)(A)(vi)) organizations; or

2% limitation for six

•

research, the organization is not a

A governmental unit.

donors:

medical research organization.

(2% × $600,000 × 6) . . . .

72,000

To determine whether the section

The organization is not required to be

509(a)(1)/170(b)(1)(A)(vi) test is met,

Less: Direct contributions in excess

an affiliate of the hospital, but there must

donor contributions are considered

of 2% of total support . . . . . . . . . .

98,000

be an understanding that there will be

support from direct or indirect

Total public support . . . . . . . . . . .

202,000

close and continuous cooperation in any

contributions from the general public only

joint-effort medical research.

to the extent that the total amount

Section 509(a)(1)/170(b)(1)(A)(vi)

computation:

received from any one donor during the

Assets test/Expenditure test. An

4-tax-year period is 2% or less of the

organization qualifies as a medical

Line 26c Total support . . . . . . . . $600,000

organization’s total support for those 4 tax

research organization if its principal

Line 26d Less total of lines:

years as described below.

purpose is medical research, and it

•

18 . . . . $300,000

Any contribution by one individual will

devotes more than half its assets, or

19 . . . .

– 0 –

be included in full in the total support

spends at least 3.5% of the fair market

22 . . . .

– 0 –

denominator of the fraction determining

value of its endowment, in conducting

26b . . .

98,000 $398,000

the 33

%-of-support or the

medical research directly.

10%-of-support limitation.

Line 26e Total public support . . . . $202,000

•

Either test may be met based on a

Only the portion of each donor’s

Line 26f Public support

computation period consisting of the

contribution that is 2% or less of the total

percentage (line 26e

immediately preceding tax year or the

support denominator will be included in

divided by line 26c —

immediately preceding 4 tax years.

the numerator.

$202,000/ $600,000) . . .

33.67%

If an organization does not satisfy

In applying the 2% limitation, all

either the “assets test” or the “expenditure

contributions by any person(s) related to

Since X organization received more

test,” it may still qualify as a medical

the donor as described in section

than 33

% of its total support for the

-4-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2004 Page 4

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