Instructions For Schedule A (Form 990 Or 990-Ez) - 2004 Page 5
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13period from public sources, it qualifies as
characterize the amounts as gross
Section 509(a)(2) computation:
a section 509(a)(1)/170(b)(1)(A)(vi)
investment income:
Line
•
publicly supported organization. Note that
An organization that claims to be
27c Add: Amounts from column (e),
if an organization fails the public support
described in section 509(a)(3) because it
lines 15, 16, 17, 20, and 21 . . . $120,000
test for 2 consecutive years, it loses its
supports a section 509(a)(2) organization;
27d Total of line 27a . . . . $25,000
public charity status and becomes a
or
private foundation.
•
Total of line 27b . . . .
20,000
45,000
A charitable trust, corporation, fund, or
Facts and circumstances — Public
association described in section 501(c)(3)
27e Public support (line 27c minus
support test. An organization that does
line 27d total) . . . . . . . . . . . .
$75,000
(including a nonexempt charitable trust
27f Total support (line 23,
not qualify as publicly supported under
described in section 4947(a)(1)), that is
column (e)) . . . . . . . $200,000
the test described above may be publicly
required to distribute, or normally
27g Public support percentage (line
supported on the basis of the facts in its
distributes, at least 25% of its adjusted
27e divided by line 27f —
case if it receives at least 10% of its
net income (within the meaning of section
$75,000/$200,000) . . . . . . . .
37.50%
support from the general public. If you
4942(f)) to a section 509(a)(2)
27h Investment income percentage
believe your organization is publicly
organization, if the distribution normally
(line 18 divided by line 27f —
supported according to applicable
comprises at least 5% of the distributee
$80,000/$200,000) . . . . . . . .
40.0%
regulations, attach a detailed statement of
organization’s adjusted net income.
the facts upon which you base your
T organization received 37.50% of its
conclusion.
If an organization receives an amount
total support from the public and thus met
from a split-interest trust described in
the more-than-one-third test of public
Line 12. Organization Meeting the
section 4947(a)(2) that is required to
support to total support. T organization’s
Section 509(a)(2) Public Support Tests.
distribute, or normally distributes, at least
investment income percentage was
Check the box on line 12 and complete
25% of its adjusted net income to a
40.0%. Therefore, it did not meet the
the Support Schedule to determine
section 509(a)(2) organization, and the
second part of the section 509(a)(2)
whether an organization meets both of
distribution normally comprises at least
test — the not-more-than-one-third of total
the following section 509(a)(2) support
5% of the distributee organization’s
support from gross investment income
tests:
adjusted net income, the amount retains
and net unrelated business taxable
1. The organization normally receives
the character of gross investment income
income.
more than one-third of its support for each
if it would be characterized as gross
Since T organization did not satisfy
tax year from:
investment income attributable to
•
both of the one-third tests of section
Persons other than disqualified
transfers in trust after May 26, 1969, if the
509(a)(2), it failed the section 509(a)(2)
persons (see Part IV, Definitions) with
trust were a private foundation.
public support test for this year. An
respect to the organization,
•
organization that fails the public support
Governmental units (described in
All income characterized under the
test for 2 consecutive years loses its
section 170(c)(1)), or
•
rules above as gross investment income
public charity status and becomes a
Organizations described in section
in the possession of the distributing
private foundation.
170(b)(1)(A) (other than in clauses (vii)
organization is considered to be
and (viii)), and
Line 13. Supporting Organization.
distributed first by the organization and
Such support is received by the
Check the box on line 13 and complete
keeps its character as such in the
organization from any combination of:
columns (a) and (b) for a supporting
•
possession of the recipient.
organization operated only for the benefit
Gifts, grants, contributions, or
of and in connection with organizations
membership fees, and
•
For more details, see Regulations
listed in lines 5 through 12, or with
Gross receipts from admissions,
section 1.509(a)-5 that covers special
organizations described in section
sales of merchandise, performance of
rules of attribution.
501(c)(4), (5), or (6) that meet the tests of
services, or furnishing of facilities, in an
section 509(a)(2) (described in line 12).
activity that is not an unrelated trade or
General principles governing supporting
business (within the meaning of section
If the organization received any
organizations are described in
513).
amounts from either kind of organization
Regulations section 1.509(a)-4.
Gross receipts, in any tax year, do not
above, attach a statement. Show the
include receipts from any person, bureau,
amounts received from each organization,
For column (b), identify the
or similar agency of a government unit
including amounts, such as gifts, that are
organization supported if it is included in
(described in section 170(c)(1)) to the
not investment income.
lines 5 through 12. For example, if your
extent such receipts exceed the greater of
organization supported a hospital, enter
$5,000 or 1% of the organization’s
Example. T organization reported the
“7” in column (b).
support in such tax year.
following amounts in its Support Schedule
Line 14. Organization Operated to Test
2. The organization normally receives
for the 4-year period 2000 through 2003:
for Public Safety. Check the box on line
not more than one-third of its support
14 only if the organization has received a
each tax year from the sum of:
Line
(e) Total
ruling from the IRS that it is organized
•
Gross investment income (as
and operated primarily to test for public
15
Gifts, grants & contributions . .
$45,000
defined in section 509(e)), and
safety.
•
The excess (if any) of the amount of
16
Membership fees . . . . . . . . .
50,000
the unrelated business taxable income
Part IV-A. Support
17
Gross receipts from
(as defined in section 512) over the
admissions, merchandise, etc.
25,000
Schedule
amount of the tax imposed by section
18
Gross income from interest,
511.
Complete the Support Schedule if a box
dividends, etc. . . . . . . . . . . .
80,000
on line 10, 11, or 12 was checked.
Gross investment income. When
23
Total of lines 15 through 22 . . $200,000
Note: The Support Schedule must be
determining whether an organization
27a Gifts from disqualified persons
$25,000
completed on the cash method of
meets the gross investment income test
accounting.
b Excess gross receipts from
of section 509(a)(2)(B), amounts received
nondisqualified persons . . . . .
$20,000
from the following organizations retain the
For example, if a grantor makes a
character of gross investment income
T organization determined whether or
grant to an organization payable over a
(rather than gifts or contributions) to the
not it met the one-third tests of section
term of years, such grant will be includible
extent that these organizations
509(a)(2) in the following computation:
in the support fraction of the grantee
-5-
Instructions for Schedule A (Form 990 or 990-EZ)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial