Fillable Schedule E (Form 990 Or 990-Ez) - Schools

Schedule E (Form 990 or 990-EZ) (2013)

Page

c. If a school customarily draws its students from local

4.07 Faculty and staff. The existence of a racially

communities and follows a racially nondiscriminatory policy as

discriminatory policy for employment of faculty and

to students, the publicity requirement may be satisfied by

administrative staff is indicative of a racially discriminatory

complying with section 4.02, earlier. Such a school may

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

discrimination in employment of faculty and administrative staff

demonstrate that it follows a racially nondiscriminatory policy

within the meaning of the preceding sentence by showing that it

is indicative of a racially nondiscriminatory policy as to students.

currently enrolls students of racial minority groups in meaningful

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

numbers. The question whether a school satisfies the preceding

exempt private school must maintain for a minimum period of

sentence will be determined on the basis of the facts and

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

circumstances of each case. One of the facts and

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

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

proper request:

promotional activities and recruiting efforts in each area were

1. Records indicating the racial composition of the student

reasonably designed to inform students of all racial segments in

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

the general communities within the area of the availability of the

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

2. Records sufficient to document that scholarship and other

its students from local communities to enroll racial minority

financial assistance is awarded on a racially nondiscriminatory

group students may not necessarily indicate the absence of a

basis,

racially nondiscriminatory policy as to students when there are

3. Copies of all brochures, catalogues, and advertising

relatively few or no such students in these communities. Actual

dealing with student admissions, programs, and scholarships.

enrollment is, however, a meaningful indication of a racially

Schools advertising nationally or in a large geographic segment

nondiscriminatory policy in a community in which a public

or segments of the United States need only maintain a record

school or schools became subject to a desegregation order of a

sufficient to indicate when and in which publications their

federal court or otherwise expressly became obligated to

advertisements were placed, and

implement a desegregation plan under the terms of any written

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

contract or other commitment to which any federal agency was

solicit contributions.

a party.

The IRS encourages schools to satisfy the publicity

7.02 Limitation.

requirement by the methods described in subsection 1 of this

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

section 4.03, regardless of whether a school considers itself

student body, faculty, and administrative staff may be an

within subsection 2, because it believes these methods to be

estimate based on the best information readily available to the

the most effective to make known a school’s racially

school, without requiring student applicants, students, faculty,

nondiscriminatory policy. It is each school’s responsibility to

or administrative staff to submit information to the school that

determine whether paragraph (a), (b), or (c) of subsection 2

the school otherwise does not require. For each academic year,

applies to it. On audit, a school must be prepared to

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

demonstrate that the failure to publish its racially

determined must be maintained.

nondiscriminatory policy in accordance with subsection 1 of this

2. The IRS does not require that a school release personally

section 4.03 was justified by the application to it of paragraph

identifiable records or personal information contained therein

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

except in accordance with the requirements of the “Family

prepared to demonstrate that it has publicly disavowed or

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

repudiated any statements purported to have been made on its

1232(g) (1974). Similarly, the IRS does not require a school to

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

keep records the maintenance of which is prohibited under state

of a racially nondiscriminatory policy as to students, to the

or federal law.

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

7.03 Exceptions. The records described in section 7.01 need

statements.

not be independently maintained for IRS use if:

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

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

1. Substantially the same information that each of these

records would provide has been included in a report or reports

nondiscriminatory manner.

filed in accordance with law with an agency or agencies of

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

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

scholarship or other comparable benefits available for use at

current within one year, and

any school must be offered on a racially nondiscriminatory

basis. Their availability on this basis must be known throughout

2. The school maintains copies of these reports from which

the general community being served by the school and should

this information is readily obtainable. Records described in

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

section 7.01 providing information not included in reports filed

that school to be considered racially nondiscriminatory as to

with an agency or agencies must be maintained by the school

students. Scholarships and loans that are made pursuant to

for IRS use.

financial assistance programs favoring members of one or more

7.04 Failure to maintain records. Failure to maintain or to

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

produce upon the proper request the required records and

racially nondiscriminatory policy will not adversely affect the

information will create a presumption that the organization has

school’s exempt status.

failed to comply with these guidelines.

Financial assistance programs favoring members of one or

Part II. Supplemental Information

more racial groups that do not significantly derogate from the

school’s racially nondiscriminatory policy similarly will not

Use Part II to provide the narrative explanations required, if

adversely affect the school’s exempt status.

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

4.06 Certification. An individual authorized to take official

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

action on behalf of a school that claims to be racially

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

nondiscriminatory as to students is required to certify annually,

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

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

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

knowledge and belief the school has satisfied the applicable

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

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

is needed.

This certification is line 7 of Schedule E.

Schedule E (Form 990 Or 990-Ez) - Schools - 2013 Page 4

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