Instructions For Schedule A (Form 990 Or 990-Ez) - 2001 Page 4
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14the Support Schedule covering the
will be close and continuous
2. Other publicly supported (section
years 1997 through 2000 must be
cooperation in any joint-effort medical
170(b)(1)(A)(vi)) organizations; or
submitted for the years 1997 through
research.
3. A governmental unit.
2001. Prepare and attach a 5-year
Assets test/Expenditure test.
To determine whether the section
schedule using the same format as
An organization qualifies as a
509(a)(1)/170(b)(1)(A)(vi) test is met,
provided in the Support Schedule for
medical research organization if its
donor contributions are considered
lines 15 through 28.
principal purpose is medical research,
support from direct or indirect
Lines 5 through 14. Reason for
and it devotes more than half its assets,
contributions from the general public
Non-Private Foundation Status.
or spends at least 3.5% of the fair
only to the extent that the total amount
Check one of the boxes on these lines
market value of its endowment, in
received from any one donor during the
to indicate the reason the organization
conducting medical research directly.
4-tax-year period is 2% or less of the
is not a private foundation. The
organization’s total support for those 4
Either test may be met based on a
organization’s exemption letter states
tax years as described below.
this reason, or the local IRS office can
computation period consisting of the
•
tell you.
immediately preceding tax year or the
Any contribution by one individual will
immediately preceding 4 tax years.
be included in full in the total support
Line 6. School. Check the box on line
denominator of the fraction
6 for a school whose primary function is
If an organization does not satisfy
determining the 33
/
%-of-support or
the presentation of formal instruction,
1
either the “assets test” or the
3
and which regularly has a faculty, a
the 10%-of-support limitation.
“expenditure test,” it may still qualify as
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curriculum, an enrolled body of
a medical research organization, based
Only the portion of each donor’s
students, and a place where
on the circumstances involved.
contribution that is 2% or less of the
educational activities are regularly
total support denominator will be
These tests are discussed in
conducted.
included in the numerator.
Regulations sections 1.170A-9(c)(2)(v)
A private school, in addition, must
and (vi). Value the organization’s
In applying the 2% limitation, all
have a racially nondiscriminatory policy
assets as of any day in its tax year but
contributions by any person(s) related
toward its students. For details about
use the same day every year. Value the
to the donor as described in section
these requirements, see the
endowment at fair market value, using
4946(a)(1)(C) through (G) (and related
instructions for Part V.
commonly accepted valuation methods.
regulations) will be treated as if made
(See Regulations section 20.2031.)
Line 7. Hospital or Cooperative
by the donor.
Hospital Service Organization.
Line 10. Organization Operated for
The 2% limitation does not apply to
Check the box on line 7 for an
the Benefit of a Governmental Unit.
support from governmental units
organization whose main purpose is to
Check the box on line 10 and complete
referred to in section 170(c)(1), or to
provide hospital or medical care. A
the Support Schedule if the
contributions from publicly supported
rehabilitation institution or an outpatient
organization receives and manages
organizations (section 170(b)(1)(A)(vi)),
clinic may qualify as a hospital, but the
property for and expends funds to
that check the box on line 11a or 11b.
term does not include medical schools,
benefit a college or university that is
medical research organizations,
owned or operated by one or more
Example. X organization reported
convalescent homes, homes for the
states or their political subdivisions. The
the following amounts in its Support
aged, or vocational training institutions
school must be as described in the first
Schedule for the 4-year period 1997
for the handicapped.
paragraph of the instructions for line 6.
through 2000:
Check the box on line 7 also for a
Expending funds to benefit a college
cooperative hospital service
Line
(e) Total
or university includes acquiring and
organization described in section
15
Gifts, grants & contributions . . . . . . . . .
$300,000
maintaining the campus, its buildings,
501(e).
17
Gross receipts from admissions, etc. . . . .
100,000
and its equipment, granting
Line 9. Hospital Medical Research
scholarships and student loans, and
18
Dividends & interest . . . . . . . . . . . . . .
300,000
Organization. Check the box on line 9
making any other payments in
24
Line 23 minus line 17 . . . . . . . . . . . . .
600,000
for a medical research organization
connection with the normal functions of
26a
2% of line 24 (2% limitation) . . . . . . . . .
12,000
operated in connection with or in
colleges and universities.
b Total of contributions exceeding the 2%
conjunction with a hospital. The hospital
limitation . . . . . . . . . . . . . . . . . . . .
98,000
The organization must meet
must be described in section 501(c)(3)
essentially the same public support test
or operated by the Federal government,
The X organization determined
described below for line 11. See Rev.
a state or its political subdivision, a U.S.
whether or not it met the section
Rul. 82-132, 1982-2 C.B. 107.
possession or its political subdivision,
509(a)(1)/170(b)(1)(A)(vi) public
or the District of Columbia.
Line 11. Organization Meeting the
support test as follows:
Section 509(a)(1) Public Support
“Medical research” means studies
Total support (line 24): . . . . . . . . . . . . . . . . .
$600,000
Test. Check either box (but not both)
and experiments done to increase or
on line 11a or 11b and complete the
Direct contributions:
verify information about physical or
Support Schedule to determine whether
mental diseases and disabilities and
Total direct contributions from persons
the organization meets the section
their causes, diagnosis, prevention,
who contributed less than 2% of total
509(a)(1)/170(b)(1)(A)(vi) public
support . . . . . . . . . . . . . . . . . . . . . . . . .
50,000
treatment, or control. The organization
support test described below.
must conduct the research directly and
Total direct contributions from
six donors, each of whom gave
continuously. If it primarily gives funds
The Support Schedule is completed
more than 2% ($12,000) of total
to other organizations (or grants and
for an organization that “normally” (see
support . . . . . . . . . . . . . . . . . . . . . . . . .
170,000
scholarships to individuals) for them to
Part IV, Definitions) receives at least
Indirect contributions from
do the research, the organization is not
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% of its support (excluding income
the general public:
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a medical research organization.
received in exercising its charitable,
United Fund . . . . . . . . . . . . . . . . . . . . . .
40,000
etc., function) from:
The organization is not required to
Grant from Y City . . . . . . . . . . . . . . . . . . . .
40,000
be an affiliate of the hospital, but there
1. Direct or indirect contributions
must be an understanding that there
from the general public;
Total gifts, grants & contributions . . . . . . . . . . .
$300,000
-4-
Instructions for Schedule A (Form 990 or 990-EZ)
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