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An employee (or child of an employee)

In addition to loans originally made

sum total indicated in column (d) must

between the organization and an

equal the total of Form 990, Part X,

of a substantial contributor or of a 35%

interested person, report also loans

Balance Sheet, column (B), lines 5 and 6

controlled entity of a substantial

originally between the organization and a

(for amounts owed to the organization),

contributor, but only if the employee (or

third party or between an interested

and column (B), line 22 (for amounts

child of an employee) received the grant

person and a third party that were

owed by the organization).

or assistance by the direction or advice of

transferred so as to become a debt

the substantial contributor or 35%

Column (e). Answer “Yes” if any

outstanding between the organization and

controlled entity, or under a program

payment by the debtor was past due as of

an interested person.

funded by the substantial contributor that

the end of the organization’s tax year, or

was intended primarily to benefit such

Interested persons. For Form 990

if the debtor otherwise is in default under

employees (or their children).

filers, interested persons for purposes of

the terms and conditions of the loan.

Part II, are as follows.

Column (f). State whether the

Exceptions. Do not report the following

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For all organizations, current or former

organization’s governing body (or a

in Part III.

officers, directors, trustees, key

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committee of the governing body)

Excess benefit transactions reported

employees, and highest compensated

approved the loan transaction.

in Schedule L, Part I.

employees listed in Form 990, Part VII,

•

Loans reported (or not required to be

Column (g). State whether the loan is

Section A, are interested persons.

reported) in Schedule L, Part II.

evidenced by a promissory note or other

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For organizations described in section

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Business transactions that do not

written agreement signed by the debtor.

501(c)(3) or 501(c)(4), disqualified

contain any gift element and that are

persons as described in section

Part III. Grants or

engaged in to serve the direct and

4958(f)(1) are also interested persons.

immediate needs of the organization,

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Assistance Benefiting

For organizations described in section

such as payment of compensation

509(a)(3), disqualified persons as

Interested Persons

(including taxable and nontaxable fringe

described in section 4958(c)(3)(B) are

benefits treated as compensation) to an

also interested persons.

Report each grant or other assistance

employee or consultant in exchange for

(including provision of goods, services, or

For Form 990-EZ filers, interested

services of comparable value. Some

use of facilities), regardless of amount,

persons for purposes of Part II are current

transactions may be reportable on

provided by the organization to any

officers, directors, trustees, and key

Schedule L, Part IV.

interested person at any time during the

employees listed on Form 990-EZ, Part

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Compensation to a person listed in

organization’s tax year. Examples of

IV.

Form 990, Part VII, Section A (including

grants are scholarships, fellowships,

Exceptions. Do not report the following

taxable and nontaxable fringe benefits

internships, prizes, and awards. A grant

in Part II.

treated as compensation).

includes the gift portion of a part-sale,

•

Excess benefit transactions reported

Grants to employees (and their

part-gift transaction.

in Schedule L, Part I.

children) of a substantial contributor or

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Advances under an accountable plan

35% controlled entity of a substantial

See Reasonable effort on page

as described in the instructions for Part II

contributor, awarded on an objective and

3, applicable to Part III.

TIP

of Schedule J (Form 990), Compensation

nondiscriminatory basis based on

Information.

pre-established criteria and reviewed by a

Interested person. For purposes of Part

•

Pledges receivable that would qualify

selection committee, as described in

III, an “interested person” means a

as charitable contributions when paid.

Regulations section 53.4945-4(b).

current or former officer, director,

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Accrued but unpaid compensation

Grants or assistance provided to an

trustee, or key employee listed in Form

owed by the organization.

interested person as a member of the

990, Part VII, Section A; a substantial

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Loans from a credit union made to an

charitable class or other class (such as a

contributor; or a related person.

interested person on the same terms as

member of a section 501(c)(5), 501(c)(6),

For purposes of Schedule L, Part III, a

offered to other members of the credit

or 501(c)(7) organization) that the

“substantial contributor” is a person that

union.

organization intends to benefit in

•

contributed during the organization’s tax

Tax-exempt bonds purchased from

furtherance of its exempt purpose, if

year at least $5,000 and is required to be

the filing organization and held by an

provided on similar terms as provided to

reported by name in Schedule B (Form

interested person, so long as the

other members of the class, such as

990, 990-EZ, or 990-PF), Schedule of

interested person purchased the bonds

short-term disaster relief, poverty relief, or

Contributors, for the organization’s tax

on the same terms as offered to the

trauma counseling. However, grants for

year. Thus, organizations not required to

general public.

travel, study (such as scholarships or

•

file Schedule B are not required to report

Receivables outstanding that were

fellowships), or other similar purposes

transactions with substantial contributors

created in the ordinary course of the

(such as to achieve a specific objective,

and their related persons in Schedule L,

organization’s business on the same

produce a report or other similar product,

Part III.

terms as offered to the general public

or improve or enhance a literary, artistic,

(such as receivables for medical services

musical, scientific, teaching, or other

A “related person” in turn means:

•

provided by a hospital to an officer of the

similar capacity, skill, or talent of the

A member of the organization’s grant

hospital).

grantee) like those described in section

selection committee;

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4945(d)(3) are not excluded from

A family member of any of the

Column (a). Identify the interested

reporting under this exception.

organization’s current or former officers,

person that was the debtor or creditor on

But see Schools, later, for instructions on

directors, trustees, or key employees

the loan. Also, state the organization’s

how to report grants, scholarships, and

listed in Form 990, Part VII, Section A, of

purpose for engaging in the transaction

other assistance from colleges,

substantial contributors, or of members of

(for example, “compensation package”).

universities, primary, and secondary

the organization’s grant selection

Column (b). Check either “To” or “From”

schools. Grants that are awards

committee;

whichever is applicable.

•

recognizing past achievements also are

A 35% controlled entity (as defined in

Column (c). Enter the original dollar

not excluded from reporting under this

section 4958(f)(3)) of any of the

amount owed (the loan principal).

exception. Grants for travel, study, or

organization’s current or former officers,

similar purposes do not include such

Column (d). Enter the balance due as of

directors, trustees, or key employees

purposes as short-term disaster relief,

the end of the organization’s tax year,

listed in Form 990, Part VII, Section A; of

poverty relief, or trauma counseling.

including outstanding principal, accrued

a substantial contributor; or of a member

•

interest, and any applicable penalties and

of the organization’s grant selection

Grants or assistance to a section

collection costs. For Form 990 filers, the

committee; or

501(c)(3) organization.

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Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2010 Page 2

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