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Public support is measured using a

contributions, but not gross receipts from

(if the cash accounting method is used) or

5-year computation period that includes

exercising or performing the organization's

accrued each year (if the accrual

the current and four prior tax years

tax-exempt purpose or function, which

accounting method is used).

(including short years). If the

should be reported on line 2. Contributions

Do not include the names of the

organization's current tax year or any of its

are sometimes difficult to distinguish from

grantors because Part VI will be

four prior tax years were short years,

such gross receipts—the label on the

made available for public

explain in Part VI.

agreement is not controlling. An amount

CAUTION

inspection.

received from a governmental unit is

In Part III, if the organization was not a

treated as gross receipts from exercising

section 501(c)(3) organization for the

Unusual grants recordkeeping. An

or performing the organization's

entire 5-year period, report amounts only

organization that received any unusual

tax-exempt purpose or function if the

for the years the organization was a

grants during the 5-year period, should

purpose of the payment is primarily to

section 501(c)(3) organization.

also keep for its records a list showing, for

serve the direct and immediate needs of

each year, the name of the contributor, the

Line 1. Do not include any "unusual

the payor governmental unit. An amount is

date and amount of the grant, and a brief

grants." See Unusual grants, later. Include

treated as a contribution if the purpose of

description of the grant. If the organization

membership fees only to the extent to

the payment is primarily to provide a direct

used the cash method for the applicable

which the fees are payments to provide

benefit to the public. For example, if a

year, show only amounts the organization

support for the organization rather than to

state government agency pays an

actually received during that year. If the

purchase admissions, merchandise,

organization to operate an institute to train

organization used the accrual method for

services, or the use of facilities. To the

agency employees in the principles of

the applicable year, show only amounts

extent that the membership fees are

management and administration, the

the organization accrued for that year. An

payments to purchase admissions,

funds received should be included on

example of this list is given below.

merchandise, services, or the use of

line 2 as gross receipts. See Regulations

facilities in a related activity, include the

section 1.509(a)-3(g). Refer to the

Do not file this list with the

membership fees on line 2. See

instructions for Form 990, Part VIII, lines

organization's Form 990 or

Regulations section 1.509(a)-3(h). To the

1e and 2, for more examples addressing

990-EZ because it may be made

extent that the membership fees are

CAUTION

the distinction between government

available for public inspection.

payments to purchase admissions,

payments that are contributions and

merchandise, services, or the use of

government payments that are gross

Line 1. Example—List of unusual

facilities in an activity that is not an

receipts from activities related to the

grants

unrelated business under section 513,

organization's tax-exempt purpose or

report the membership fees on line 3. To

function. Medicare and Medicaid

▶

the extent that the membership fees are

Description

payments are treated as gross receipts

Year

2014

payments to purchase admissions,

from patients rather than as contributions

▶

Undeveloped land

merchandise, services, or the use of

from the government payor for purposes

Name

Mr.

facilities in an activity that is an unrelated

of the public support test. See Rev. Rul.

Distinguished Donor

business, report the net amount either on

83-153, 1983-2 C.B. 48.

▶

line 10b or line 11, as appropriate.

Date of Grant

Unusual grants. Unusual grants

January 15, 2014

Noncash contributions. Use any

generally are substantial contributions

▶

reasonable method to determine the value

and bequests from disinterested persons

Amount of Grant

of noncash contributions reported on

and are:

$600,000

line 1.

1. Attracted because of the

Do not report any donations of services

Conservation easements and qualified

organization's publicly supported nature,

(such as the value of donated advertising

conservation contributions. The

2. Unusual and unexpected because

space or broadcast air time) or donations

organization must report any qualified

of the amount, and

of use of materials, equipment, or

conservation contributions and

3. Large enough to endanger the

facilities, on line 1 as gifts, grants, or

contributions of conservation easements

organization's status as normally meeting

contributions. Donated services and

consistently with how it reports revenue

the 33

% public support test.

facilities from a governmental unit are

from such contributions in its books,

reported on line 5.

records, and financial statements and in

For a list of other factors to be

Form 990, Part VIII, Statement of

considered in determining whether a grant

Loss on uncollectible pledge. If an

Revenue.

is an unusual grant, see Regulations

organization records a loss on an

section 1.509(a)-3(c)(4).

uncollectible pledge that it reported on a

Reporting contributions not reported

prior year's Schedule A, it should deduct

as revenue. If the organization reports

An unusual grant is excluded even if

that loss from the contribution amount for

any contributions on line 1 of Schedule A

the organization receives or accrues the

the year in which it originally counted that

(Form 990 or 990-EZ), Part III, that it does

funds over a period of years.

contribution as revenue. For example, if in

not report on Form 990, as revenue in Part

Do not report gross investment income

the prior tax year the organization reported

VIII or as assets in Part X, or as revenue or

items as unusual grants. Instead, include

a pledged contribution with a then-present

assets on Form 990-EZ, explain in Part VI

all investment income on line 10a.

value of $50,000 in Part III, line 1, column

the basis for characterizing such transfers

See Rev. Rul. 76-440, 1976-2 C.B. 58;

(e), but learned during the current tax year

as contributions but not as revenue or

Regulations section 1.170A-9(f)(6)(ii); and

that it would not receive any of that

assets. For example, if an organization is

Regulations sections 1.509(a)-3(c)(3) and

pledged contribution, it should deduct the

a community foundation that receives and

1.509(a)-3(c)(4) for details about unusual

$50,000 from the amount reported in Part

holds a cash transfer for another

grants.

III, line 1, column (d), for the prior tax year.

tax-exempt organization and reports

Include in Part VI a list showing the

contributions of such property on

Support from a governmental unit.

amount, but not the grantor, of each

Schedule A (Form 990 or 990-EZ), Part III,

Include on line 1 support received from a

unusual grant actually received each year

line 1, without reporting it on Form 990, as

governmental unit. This includes

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 8

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