Fillable Form 990 Schedule E - Schools - 2017 (Page 4 of 4) in pdf

Schedule E (Form 990 or 990-EZ) 2017

Page

satisfies the preceding sentence will be determined on the basis

4.07 Faculty and staff. The existence of a racially

of the facts and circumstances of each case.

discriminatory policy for employment of faculty and

administrative staff is indicative of a racially discriminatory

c. If a school customarily draws its students from local

policy as to students. On the other hand, the absence of racial

communities and follows a racially nondiscriminatory policy as

discrimination in employment of faculty and administrative staff

to students, the publicity requirement may be satisfied by

is indicative of a racially nondiscriminatory policy as to students.

complying with section 4.02, earlier. Such a school may

7.01 Specific records. Except as provided in section 7.03, each

demonstrate that it follows a racially nondiscriminatory policy

exempt private school must maintain for a minimum period of 3

within the meaning of the preceding sentence by showing that it

currently enrolls students of racial minority groups in meaningful

years, beginning with the year after the year of compilation or

numbers. The question whether a school satisfies the preceding

acquisition, the following records for the use of the IRS on

sentence will be determined on the basis of the facts and

proper request.

circumstances of each case. One of the facts and

1. Records indicating the racial composition of the student

circumstances that the IRS will consider is whether the school’s

body, faculty, and administrative staff for each academic year.

promotional activities and recruiting efforts in each area were

2. Records sufficient to document that scholarship and other

reasonably designed to inform students of all racial segments in

financial assistance is awarded on a racially nondiscriminatory

the general communities within the area of the availability of the

basis.

school. The IRS recognizes that the failure by a school drawing

3. Copies of all brochures, catalogues, and advertising

its students from local communities to enroll racial minority

dealing with student admissions, programs, and scholarships.

group students may not necessarily indicate the absence of a

Schools advertising nationally or in a large geographic segment

racially nondiscriminatory policy as to students when there are

or segments of the United States need only maintain a record

relatively few or no such students in these communities. Actual

sufficient to indicate when and in which publications their

enrollment is, however, a meaningful indication of a racially

advertisements were placed.

nondiscriminatory policy in a community in which a public

school or schools became subject to a desegregation order of a

4. Copies of all materials used by or on behalf of the school to

federal court or otherwise expressly became obligated to

solicit contributions.

implement a desegregation plan under the terms of any written

7.02 Limitation.

contract or other commitment to which any federal agency was

1. For purposes of section 7.01, the racial composition of the

a party.

student body, faculty, and administrative staff may be an

The IRS encourages schools to satisfy the publicity

estimate based on the best information readily available to the

requirement by the methods described in subsection 1, section

school, without requiring student applicants, students, faculty,

4.03, regardless of whether a school considers itself within

or administrative staff to submit information to the school that

subsection 2, because it believes these methods to be the most

the school otherwise doesn't require. For each academic year,

effective to make known a school’s racially nondiscriminatory

however, a record of the method by which racial composition is

policy. It's each school’s responsibility to determine whether

determined must be maintained.

paragraph (a), (b), or (c), subsection 2, applies to it. On audit, a

2. The IRS doesn't require that a school release personally

school must be prepared to demonstrate that the failure to

identifiable records or personal information contained therein

publish its racially nondiscriminatory policy in accordance with

except in accordance with the requirements of the “Family

subsection 1, section 4.03, was justified by the application to it

Educational Rights and Privacy Act of 1974,” 20 U.S.C. section

of paragraph (a), (b), or (c), subsection 2. Further, a school must

1232(g) (1974). Similarly, the IRS doesn't require a school to

be prepared to demonstrate that it has publicly disavowed or

keep records the maintenance of which is prohibited under state

repudiated any statements purported to have been made on its

or federal law.

behalf (after November 6, 1975) that are contrary to its publicity

of a racially nondiscriminatory policy as to students, to the

7.03 Exceptions. The records described in section 7.01 need

extent that the school or its principal official were aware of such

not be independently maintained for IRS use if:

statements.

1. Substantially the same information that each of these

4.04 Facilities and programs. A school must be able to show

records would provide has been included in a report or reports

that all of its programs and facilities are operated in a racially

filed in accordance with law with an agency or agencies of

nondiscriminatory manner.

federal, state, or local government, and this information is

current within 1 year; and

4.05 Scholarship and loan programs. As a general rule, all

scholarship or other comparable benefits available for use at

2. The school maintains copies of these reports from which

any school must be offered on a racially nondiscriminatory

this information is readily obtainable. Records described in

basis. Their availability on this basis must be known throughout

section 7.01 providing information not included in reports filed

the general community being served by the school and should

with an agency or agencies must be maintained by the school

be referred to in the publicity required by this section in order for

for IRS use.

that school to be considered racially nondiscriminatory as to

7.04 Failure to maintain records. Failure to maintain or to

students. Scholarships and loans that are made pursuant to

produce upon the proper request the required records and

financial assistance programs favoring members of one or more

information will create a presumption that the organization has

racial minority groups that are designed to promote a school’s

failed to comply with these guidelines.

racially nondiscriminatory policy won't adversely affect the

school’s exempt status.

Part II. Supplemental Information

Financial assistance programs favoring members of one or

Use Part II to provide the narrative explanations required, if

more racial groups that don't significantly derogate from the

applicable, to supplement responses to Part I, lines 3, 4d, 5h,

school’s racially nondiscriminatory policy similarly won't

6b, and 7. Part II may also be used to supplement other

adversely affect the school’s exempt status.

responses to questions on Schedule E (Form 990 and 990-EZ).

4.06 Certification. An individual authorized to take official

In Part II, identify the specific line number that each response

action on behalf of a school that claims to be racially

supports, in the order in which those lines appear on Schedule

nondiscriminatory as to students is required to certify annually,

E (Form 990 or 990-EZ). Part II can be duplicated if more space

under penalties of perjury, that to the best of his or her

is needed.

knowledge and belief the school has satisfied the applicable

requirements of sections 4.01 through 4.05, Rev. Proc. 75-50.

This certification is line 7, Schedule E.

Form 990 Schedule E - Schools - 2017 Page 4

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