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

private school must maintain for a

providing information not included in

organizations described in section

minimum period of three years,

reports filed with an agency or agencies

501(j)(2)),

beginning with the year after the year of

must be maintained by the school for

2. The allocable portion of

compilation or acquisition, the following

Service use.

administrative expenses paid or

records for the use of the Service on

incurred for the above purposes,

7.04 Failure to maintain records.

proper request:

3. Amounts paid or incurred to try to

Failure to maintain or to produce upon

influence legislation, whether or not for

1. Records indicating the racial

the proper request the required records

the purposes described in 1 above,

composition of the student body,

and information will create a

4. Allowance for depreciation or

faculty, and administrative staff for each

presumption that the organization has

amortization, and

academic year.

failed to comply with these guidelines.

5. Fundraising expenditures, except

2. Records sufficient to document

that exempt purpose expenditures do

that scholarship and other financial

Part VI-A—Lobbying

not include amounts paid to or incurred

assistance is awarded on a racially

for either the organization’s separate

nondiscriminatory basis.

Expenditures by Electing

fundraising unit or other organizations,

3. Copies of all brochures,

Public Charities

if the amounts are primarily for

catalogues, and advertising dealing

fundraising.

with student admissions, programs, and

Complete Part VI-A only for an eligible

scholarships. Schools advertising

organization that elected to be subject

See also Regulations section

nationally or in a large geographic

to the lobbying expenditure limitations

56.4911-4(c) for a discussion of

segment or segments of the United

excluded expenditures.

of section 501(h) by filing Form 5768

States need only maintain a record

and for which the election was valid

Lobbying expenditures. The term

sufficient to indicate when and in what

and in effect for its tax year beginning

“lobbying expenditures” means

publications their advertisements were

in the year 2001.

expenditures paid or incurred for the

placed.

purpose of attempting to influence

A public charity that makes a valid

4. Copies of all materials used by or

legislation:

section 501(h) election may spend up

on behalf of the school to solicit

to a certain percentage of its “exempt

contributions.

•

Through communication with any

purpose expenditures” to influence

member or employee of a legislative

legislation without incurring tax or losing

7.02 Limitation.

body, or with any government official or

its tax-exempt status.

1. For purposes of section 7.01, the

employee who may participate in the

Expenditure test. Under the

racial composition of the student body,

formulation of the legislation, and

“expenditure test,” there are limits both

faculty, and administrative staff may be

•

By attempting to affect the opinions

upon the amount of the organization’s

an estimate based on the best

of the general public.

grassroots lobbying expenditures and

information readily available to the

To determine if an organization has

upon the total amount of its direct

school, without requiring student

spent excessive amounts on lobbying,

lobbying and grassroots lobbying

applicants, students, faculty, or

you must know which expenditures are

expenditures. If the electing public

administrative staff to submit

lobbying expenditures and which are

charity does not meet this “expenditure

information to the school that the

not lobbying expenditures. An electing

test,” it will owe a section 4911 excise

school otherwise does not require. For

public charity’s lobbying expenditures

tax on its excess lobbying expenditures.

each academic year, however, a record

for a year are the sum of its

Moreover, if over a 4-year averaging

of the method by which racial

expenditures during that year for (1)

period the organization’s average

composition is determined must be

direct lobbying communications (“direct

annual total lobbying or grassroots

maintained. . . .

lobbying expenditures”) plus (2)

lobbying expenditures are more than

2. The Service does not require that

grassroots lobbying communications

150% of its dollar limits, the

a school release personally identifiable

(“grassroots expenditures”).

organization will lose its exempt status.

records or personal information

Direct lobbying communications

contained therein except in accordance

The following terms are used in Part

(“direct lobbying expenditures”). A

with the requirements of the ‘‘Family

VI-A. See Regulations section 56.4911

direct lobbying communication is any

Educational Rights and Privacy Act of

for details.

attempt to influence any legislation

1974,’’ 20 U.S.C. section 1232g (1974).

Exempt purpose expenditures. The

through communication with any:

Similarly, the Service does not require a

•

amount an electing public charity may

Member or employee of a legislative

school to keep records the

spend on lobbying (without incurring

body, or

maintenance of which is prohibited

•

tax) is a scaled percentage of the

Government official or employee

under state or federal law.

organization’s exempt purpose

(other than a member or employee of a

expenditures. In general, an

legislative body) who may participate in

7.03 Exceptions. The records

expenditure is an exempt purpose

the formulation of the legislation, but

described in section 7.01 need not be

expenditure if it is paid or incurred by

only if the principal purpose of the

independently maintained for Internal

an electing public charity to accomplish

communication is to influence

Revenue Service use if:

the organization’s exempt purpose.

legislation.

1. Substantially the same

A communication with a legislator or

In general, exempt purpose

information that each of these records

government official will be treated as a

expenditures are:

would provide has been included in a

direct lobbying communication, if, but

report or reports filed in accordance

1. The total amount paid or incurred

only if, the communication:

with law with an agency or agencies of

for religious, charitable, scientific,

•

Refers to specific legislation, and

Federal, state, or local government, and

literary, or educational purposes, or for

•

Reflects a view on such legislation.

this information is current within one

the prevention of cruelty to children or

year, and

animals, or to foster national or

Grassroots lobbying

2. The school maintains copies of

international amateur sports

communications (“grassroots

these reports from which this

competition (not including providing

expenditures”). A grassroots lobbying

information is readily obtainable.

athletic facilities or equipment, other

communication is any attempt to

Records described in section 7.01

than by qualified amateur sports

influence any legislation through an

-9-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2001 Page 9

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