Instructions For Schedule A (Form 990 Or 990-Ez) - 2001 Page 5

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Total direct contributions from six donors,
government unit (described in section
organization, including amounts, such
each of whom gave more than 2% of
170(c)(1)) to the extent such receipts
as gifts, that are not investment
total support . . . . . . . . . . . . . . . . $170,000
exceed the greater of $5,000 or 1% of
income.
2% limitation for six donors: (2% ×
$600,000 × 6) . . . . . . . . . . . . . . .
the organization’s support in such tax
72,000
Example. T organization reported
year.
Less: Direct contributions in excess of 2%
the following amounts in its Support
of total support . . . . . . . . . . . . . . .
98,000
2. The organization normally
Schedule for the 4-year period 1997
Total public support . . . . . . . . . . . . .
$202,000
receives not more than one-third of its
through 2000:
support each tax year from the sum of:
Section 509(a)(1)/170(b)(1)(A)(vi) computation:
Gross investment income (as
Line
(e) Total
Line 26c Total support . . . . . . . . . . . . . . .
$600,000
defined in section 509(e)), and
15
Gifts, grants & contributions . . . . . . . . . .
$45,000
Line 26d Less total of lines:
The excess (if any) of the amount
16
Membership fees . . . . . . . . . . . . . . . .
50,000
18 . . . .
$300,000
of the unrelated business taxable
17
Gross receipts from admissions, merchandise,
19 . . . .
– 0 –
income (as defined in section 512) over
etc. . . . . . . . . . . . . . . . . . . . . . . . .
25,000
22 . . . .
– 0 –
the amount of the tax imposed by
18
Gross income from interest, dividends, etc. . .
80,000
26b . . .
98,000
$398,000
section 511.
23
Total of lines 15 through 22 . . . . . . . . . . . $200,000
Line 26e Total public support . . . . . . . . . . . .
$202,000
27a Gifts from disqualified persons . . . . . . . . .
$25,000
Line 26f Public support percentage (line 26e
Gross investment income. When
b
Excess gross receipts from nondisqualified
divided by line 26c — $202,000/$600,000) . . .
33.67%
determining whether an organization
persons . . . . . . . . . . . . . . . . . . . . . .
$20,000
meets the gross investment income test
Since X organization received more
T organization determined whether
of section 509(a)(2)(B), amounts
than 33
/
% of its total support for the
1
3
or not it met the one-third tests of
received from the following
period from public sources, it qualifies
section 509(a)(2) in the following
organizations retain the character of
as a section 509(a)(1)/170(b)(1)(A)(vi)
computation:
gross investment income (rather than
publicly supported organization. Note
gifts or contributions) to the extent that
that if an organization fails the public
Section 509(a)(2) computation:
these organizations characterize the
Line
support test for 2 consecutive years, it
27c
Add: Amounts from column (e),
amounts as gross investment income:
loses its public charity status and
lines 15, 16, 17, 20, and 21 . . . . . . . . . .
$120,000
An organization that claims to be
becomes a private foundation.
27d
Total of line 27a . . . . . . . . . . . $25,000
described in section 509(a)(3) because
Total of line 27b . . . . . . . . . . .
20,000
45,000
Facts and circumstances – Public
it supports a section 509(a)(2)
27e
Public support (line 27c minus line
support test. An organization that
organization; or
27d total) . . . . . . . . . . . . . . .
$75,000
does not qualify as publicly supported
A charitable trust, corporation, fund,
27f
Total support (line 23, column (e))
$200,000
under the test described above may be
27g
Public support percentage (line 27e
or association described in section
divided by line 27f — $75,000/
publicly supported on the basis of the
501(c)(3) (including a nonexempt
$200,000) . . . . . . . . . . . . . . .
37.50%
facts in its case if it receives at least
27h
Investment income percentage (line
charitable trust described in section
18 divided by line 27f — $80,000/
10% of its support from the general
4947(a)(1)), that is required to
$200,000) . . . . . . . . . . . . . . .
40.0%
public. If you believe your organization
distribute, or normally distributes, at
is publicly supported according to
T organization received 37.50% of
least 25% of its adjusted net income
applicable regulations, attach a detailed
its total support from the public and
(within the meaning of section 4942(f))
statement of the facts upon which you
thus met the more-than-one-third test of
to a section 509(a)(2) organization, if
base your conclusion.
public support to total support. T
the distribution normally comprises at
organization’s investment income
least 5% of the distributee
Line 12. Organization Meeting the
percentage was 40.0%. Therefore, it
organization’s adjusted net income.
Section 509(a)(2) Public Support
did not meet the second part of the
If an organization receives an
Tests. Check the box on line 12 and
section 509(a)(2) test — the
amount from a split-interest trust
complete the Support Schedule to
not-more-than-one-third of total support
described in section 4947(a)(2) that is
determine whether an organization
from gross investment income and net
required to distribute, or normally
meets both of the following section
unrelated business taxable income.
distributes, at least 25% of its adjusted
509(a)(2) support tests:
net income to a section 509(a)(2)
1. The organization normally
Since T organization did not satisfy
organization, and the distribution
receives more than one-third of its
both of the one-third tests of section
normally comprises at least 5% of the
support for each tax year from:
509(a)(2), it failed the section 509(a)(2)
distributee organization’s adjusted net
Persons other than disqualified
public support test for this year. An
income, the amount retains the
organization that fails the public support
persons (see Part IV, Definitions) with
character of gross investment income if
test for 2 consecutive years loses its
respect to the organization,
it would be characterized as gross
Governmental units (described in
public charity status and becomes a
investment income attributable to
section 170(c)(1)), or
private foundation.
transfers in trust after May 26, 1969, if
Organizations described in section
Line 13. Supporting Organization.
the trust were a private foundation.
170(b)(1)(A) (other than in clauses (vii)
Check the box on line 13 and complete
and (viii)), and
All income characterized as gross
columns (a) and (b) for a supporting
Such support is received by the
investment income in the possession of
organization operated only for the
organization from any combination of:
the distributing organization is
benefit of and in connection with
Gifts, grants, contributions, or
considered to be distributed first by the
organizations listed in lines 5 through
membership fees, and
organization and keeps its character as
12, or with organizations described in
Gross receipts from admissions,
such in the possession of the recipient.
section 501(c)(4), (5), or (6) that meet
sales of merchandise, performance of
the tests of section 509(a)(2) (described
For more details, see Regulations
services, or furnishing of facilities, in an
in line 12). General principles governing
section 1.509(a)-5 that covers special
activity that is not an unrelated trade or
supporting organizations are described
rules of attribution.
business (within the meaning of section
in Regulations section 1.509(a)-4.
513).
If the organization received any
Gross receipts, in any tax year, do
amounts from either kind of
For column (b), identify the
not include receipts from any person,
organization above, attach a statement.
organization supported if it is included
bureau, or similar agency of a
Show the amounts received from each
in lines 5 through 12. For example, if
-5-
Instructions for Schedule A (Form 990 or 990-EZ)

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