Instructions For Schedule A (Form 990 Or 990-Ez) - 2001 Page 2

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Form 990 or in Part IV of Form 990-EZ
Part II—Compensation
excise tax under section 4912 on all of
(List of Officers, Directors, Trustees,
its lobbying expenditures. Managers of
of the Five Highest Paid
and Key Employees).
the organization may also be jointly and
severally liable for this tax.
Independent Contractors
In columns (c) through (e), show all
Expenditure test. As an alternative
cash and noncash forms of
for Professional
to the “substantial part” test, eligible
compensation for each listed employee
public charities may elect the
Services
whether paid currently or deferred. The
“expenditure test” of section 501(h).
organization may also provide an
Complete Part II for the five highest
The expenditure test generally permits
attachment to explain the entire year
paid independent contractors (whether
higher limits for lobbying expenditures
2001 compensation package for any
individuals or firms) who performed
than allowed under the “substantial
person listed in Part I.
personal services of a professional
part” test. Electing public charities are
nature for the organization and, in
subject to the lobbying expenditure
Column (c)
return, received over $50,000 for the
definitions of section 4911, which are
year from the organization. Examples of
generally more liberal than the
Enter salary, fees, bonuses, and
such contractors include attorneys,
definitions under the “substantial part”
severance payments received by each
accountants, doctors, and professional
test. Section 4911 applies only to public
listed employee. Include current year
fundraisers.
charities that made a valid section
payments of amounts reported or
501(h) election by filing Form 5768,
Show also the number of other
reportable as deferred compensation in
Election/Revocation of Election by an
independent contractors who received
any prior year.
Eligible Section 501(c)(3) Organization
more than $50,000 for the year for
To Make Expenditures To Influence
performing such services but who are
Column (d)
Legislation.
not individually listed in Part II.
Include in column (d) all forms of
Electing public charities. If the
The organization may, at its
deferred compensation and future
organization is an electing public
discretion, provide an attachment to
severance payments (whether or not
charity, you must complete Part VI-A of
explain the entire year 2001
funded, whether or not vested, and
this form.
compensation package for any person
whether or not the deferred
listed in Part II.
compensation plan is a qualified plan
Nonelecting public charities. If the
under section 401(a)). Include in this
organization checked “Yes” but is not
Fundraising fees exceeding $50,000
column payments to welfare benefit
an electing public charity, you must
should be reported in Part II, but not
plans on behalf of the employee. Such
complete Part VI-B and attach a
reimbursements for amounts paid by
plans provide benefits such as medical,
statement giving a detailed description
the fundraiser to others for printing,
dental, life insurance, severance pay,
of the organization’s lobbying activities.
paper, envelopes, postage, mailing list
disability, etc. Reasonable estimates
rental, etc. Part II is intended for the fee
Important: All charities, both
may be used if precise cost figures are
portion of payments to contractors, not
electing and nonelecting, are absolutely
not readily available.
for any expense reimbursements.
prohibited from intervening in a political
campaign for or against any candidate
Unless the amounts are reported in
Part III—Statements
for an elective public office. If a charity
column (c), report, as deferred
About Activities
does intervene in a political campaign,
compensation in column (d), salaries
it will lose both its tax-exempt status
and other compensation earned during
Line 1. If you checked “Yes” on this
and its eligibility to receive
the period covered by the return, but
line, you must complete Part VI-A or
tax-deductible charitable contributions.
not yet paid by the date the
VI-B and provide the required additional
Both the organization and its managers
organization files its return.
information; otherwise, the return may
are subject to the tax on political
be considered incomplete.
expenditures under section 4955.
Column (e)
Enter the total expenses paid or
Line 2. See Part IV, Definitions, for
Enter in column (e) both taxable and
incurred in connection with the lobbying
the meaning of the term “members of
nontaxable fringe benefits (other than
activities described on line 1. The
their families.”
de minimis fringe benefits described in
amount of expenses you enter should
Lines 2a through 2e apply to both
section 132(e)). Include expense
equal the amounts on line 38, Part
sides of a listed transaction. Reporting
allowances or reimbursements that the
VI-A, or line i, Part VI-B. If columns (a)
is required, for example, whether the
recipients must report as income on
and (b) of line 38 are both completed,
exempt organization is a payer or
their separate income tax returns.
enter both amounts separately.
payee, buyer or seller, lender or
Examples include:
Substantial part test. In general, a
borrower.
Amounts for which the recipient did
section 501(c)(3) organization may not
not account to the organization,
Line 2d. Compensation or
devote a “substantial part” of its
Repayment. If the only compensation
Allowances that were more than the
activities to attempts to influence
payee spent on serving the
or repayment relates to amounts the
legislation. Under the “substantial part”
organization, and
organization reported in Part V of Form
test, if such an organization engages in
990, or Part IV of Form 990-EZ, check
Payments made in connection with
substantial lobbying activities, the
“Yes” and write “See Part V, Form 990,”
indemnification arrangements, the
organization will lose both its
or “See Part IV of Form 990-EZ,” on the
value of the personal use of housing,
tax-exempt status and its ability to
dotted line to the left of the entry space.
automobiles, or other assets owned or
receive tax-deductible charitable
leased by the organization (or provided
contributions. Except for churches,
Line 3. Scholarships, etc. The term
for the organization’s use without
certain church affiliated organizations,
“qualify” in the Note for line 3 means
charge), as well as any other taxable
and private foundations, an
that organizations or individuals will use
and nontaxable fringe benefits.
organization that loses its section
the funds the organization provides for
See Pub. 525, Taxable and Nontaxable
501(c)(3) status because it did not meet
charitable purposes described in
Income, for more information.
the “substantial part” test will owe an
sections 170(c)(1) and 170(c)(2).
-2-
Instructions for Schedule A (Form 990 or 990-EZ)

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