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organizations will be supported or

(1) individual members of the charitable

Lines 4b and 4c. A supporting

benefited if those contingencies occur.

class benefited by its supported

organization must exercise control and

organization(s) or (2) other supporting

discretion over funds granted to an

Line 2. If the organization supported any

organizations that also support or benefit

organization that is not exempt under

domestic or foreign organization (other

its supported organization(s). See

section 501(c)(3). See Rev. Rul. 68-489,

than an organization described in section

Regulations section 1.509(a)-4(e). If the

1968-2 C.B. 210. Also, a domestic charity

501(c)(4), (5), or (6)) that did not have an

organization made any grants or provided

generally must exercise control and

IRS determination of status under section

any benefits to any other organization or

discretion over funds granted to a foreign

509(a)(1) or (2), check “Yes” and explain

individual, check “Yes” and provide detail

organization. See Rev. Rul. 63-252,

in Part VI how the organization determined

in Part VI.

1963-2 C.B. 101, and Rev. Rul. 66-79,

that the supported organization was

1966-1 C.B. 48.

described in section 509(a)(1) or (2) and

Lines 7 and 8. Under section 4958(c)(3),

why the supported organization does not

any grant, loan, compensation, or other

Explain in Part VI how the organization

have such an IRS determination (for

similar payment provided by a supporting

retained such control and discretion

example, because it has applied for but

organization to a substantial contributor

despite being controlled or supervised by

not yet received such a determination, or it

(defined in section 4958(c)(3)(C)), to a

or in connection with such foreign

is not required to obtain recognition of its

family member (defined in section

supported organization(s). Also explain

public charity status because it is a

4958(f)(4)), and to a 35% controlled

what controls the organization used to

church, a State university, or described in

entity of such persons, is considered a

ensure that all support to the foreign

section 4948(b)).

per se excess benefit in its entirety,

supported organization(s) was used

regardless of the fairness or

exclusively for charitable, educational, etc.

Line 3a. A supporting organization may

reasonableness of the payment, and is

purposes described in section

support an organization described in

subject to tax under section 4958(a). The

170(c)(2)(B) if the foreign supported

section 501(c)(4), (5), or (6), if the

same is true of any loan by a supporting

organization does not have an IRS

supported organization satisfies the public

organization to a disqualified person

determination under sections 501(c)(3)

support tests applicable to a section

under section 4958 (other than loans to

and 509(a)(1) or (2).

509(a)(2) organization. See Regulations

certain exempt organizations). If the

section 1.509(a)-4(k) and the instructions

Line 5. Supporting organizations may

organization made any such payment or

for Part III. If the organization supports a

add, substitute, or remove supported

loan during the tax year, check “Yes” and

section 501(c)(4), (5), or (6) organization,

organizations only in certain limited

report the transaction on Schedule L

check “Yes” for line 3a.

situations. See Regulations section

(Form 990 or 990-EZ), Transactions With

1.509(a)-4(d). Generally, a Type I or Type

Line 3b. If the organization confirmed that

Interested Persons, Part I. For more

II supporting organization may add or

the supported organization qualified under

information on excess benefit transactions

substitute particular supported

section 501(c)(4), (5), or (6) and met the

generally, see the Instructions for

organizations within the class or classes

section 509(a)(2) public support test for its

Schedule L.

designated in its articles, but may not add

most recent tax year, check “Yes” and

Line 9. A supporting organization may

or substitute supported organizations

describe in Part VI how the organization

not be controlled by disqualified

outside of the designated class(es). A

made this determination. For example, the

persons, as defined in section 4946.

Type III supporting organization, which

organization may ask its section 501(c)(4),

Section 509(a)(1) or (2) organizations, and

must specify its supported organizations

(5), or (6) supported organization to

foundation managers who are disqualified

by name, may only substitute supported

furnish a copy of its IRS determination

persons only as a result of being

organizations if such substitution is

letter and to complete annually a pro

foundation managers, are not treated as

conditioned upon the occurrence of an

forma Schedule A, Part III, and keep the

disqualified persons for this purpose.

event which is beyond the control of the

letter and support calculation in the

Impermissible control may be direct or

supporting organization (such as a

supporting organization’s files.

indirect. If a disqualified person holds any

supported organization’s lapse into private

If the supporting organization does not

of the interests described in lines 9b or 9c,

foundation status).

annually confirm that its supported

or derives personal benefit from any such

If the organization has added,

organization satisfies the section 509(a)(2)

assets, provide detail in Part VI.

substituted, or removed any supported

public support test, it must explain in Part

organization during the tax year, check

Line 10. Under section 4943(f), a Type II

VI how it knows that the supported

“Yes” and provide detail in Part VI,

supporting organization that accepts a

organization would have been described

including (i) the names and EINs of the

contribution from a person who controls

in section 509(a)(2) if it were described in

organizations added, substituted, or

the governing body of a supported

section 501(c)(3) during the tax year.

removed; (ii) the reasons for each

organization (or from a family member of

Line 3c. Support given to a supported

addition, substitution, or removal; (iii) the

such person, or from a 35% controlled

section 501(c)(4), (5), or (6) organization

authority under the organization’s

entity of such person) is subject to the

must be used solely for charitable

organizing document for each addition,

excess business holdings tax under

purposes. If the supporting organization

substitution, or removal; and (iv) an

section 4943. All Type III non-functionally

has put into place measures to ensure that

explanation of how the action was

integrated supporting organizations

such support is used solely for charitable

accomplished (such as by amendment to

generally are also subject to the tax. For

purposes, check “Yes” and describe those

the organizing document substituting a

more information about excess business

measures in Part VI. If not, check “No” and

new supported organization).

holdings, see the Instructions for Form

describe in Part VI how the supporting

4720, Return of Certain Excise Taxes

Line 6. A supporting organization must

organization ensured during the tax year

Under Chapters 41 and 42 of the Internal

engage solely in activities that support or

that its assets were used solely for

Revenue Code.

benefit its supported organization(s). In

charitable purposes.

addition to making grants and providing

Line 11. Section 509(f)(2) prohibits Type

Line 4a. A supporting organization

services and facilities directly to its

I and Type III supporting organizations

cannot qualify for Type III status in the tax

supported organization(s), a supporting

from accepting a gift or contribution from

year if any supported organization was not

organization generally may also make

certain persons associated with a

organized in the United States.

grants or provide services or facilities to

supported organization of such supporting

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

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Instructions For Schedule A (Form 990 Or 990-Ez) - Public Charity Status And Public Support - 2014 Page 11

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