Instructions For Schedule J (Form 990) (Page 2 of 6) in pdf

payment by the organization for the use

relationship or business relationship

Line 2. Answer “Yes” if the organization

of all or part of a listed person's

with the top management official, and if

required substantiation of all expenses

residence for any purpose of the

a majority of his or her appraisals are

or benefits listed on line 1a, in

organization.

performed for persons other than the

accordance with the rules for

organization, even if the consultant's

Health or social club dues or initiation

accountable plans discussed in

firm also provides tax, audit, and other

fees refers to any payment of dues by

Accountable plan amounts, later (under

professional services to the

the organization for the membership of

Part II, column (D) instructions), before

organization.

a listed person in a health or fitness club

reimbursing or allowing all such

or a social or recreational club, whether

expenses incurred by any directors,

Form 990 of other organizations

or not such clubs are tax exempt. It

trustees, and officers, including the

refers to compensation information

doesn't include membership fees for an

organization's top management

reported on a Form 990 series return of

organization described in section 501(c)

official (all referred to as “top

similarly situated organizations, and

(3) or section 501(c)(6) unless such

management official”). An organization

includes Forms 990, 990-EZ, Short

organization provides health, fitness, or

can answer “Yes” if it checked the

Form Return of Organization Exempt

recreational facilities available for the

“Discretionary spending account” box

From Income Tax, and 990-PF, Return

regular use of a listed person. Health

on line 1a and required substantiation of

of Private Foundation.

club dues don't include provision by the

expenses under the rules for

Written employment contract refers

organization of an on-premises athletic

accountable plans for all listed benefits

to one or more recent or current written

facility described in section 132(j)(4), or

on line 1a other than for discretionary

employment agreements to which the

provision by a school of an athletic

spending accounts.

top management official and another

facility available for general use by its

Line 3. Check the appropriate box(es)

organization are or were parties, written

students, faculty, and employees. Dues

to indicate which methods, if any, the

employment agreements involving

include the entrance fee, periodic fees,

organization used to establish the

similarly situated top management

and amounts paid for use of such

compensation of the organization's

officials with similarly situated

facilities.

top management official. If the

organizations, or written employment

Personal services refers to any

organization relied on a compensation

offers to the top management official

services for the personal benefit of a

consultant that used a method

from other organizations dealing at

listed person or the family or friends of a

described in line 3 to help determine

arm's length.

listed person, whether provided

compensation for the top management

Compensation survey or study refers

regularly (on a full-time or part-time

official, the organization may check the

to a study of top management official

basis) or as needed, whether provided

box for that method in line 3. Do not

compensation or functionally

by an employee of the organization or

check any box(es) for methods used by

comparable positions in similarly

independent contractor (and whether

a related organization to establish the

situated organizations.

the independent contractor is an

filing organization's compensation of the

individual or an organization). They

filing organization's top management

Approval by board or compensation

include, but aren't limited to, services of

official. Explain in Part III if the

committee refers to the ultimate

a babysitter, bodyguard, butler,

organization relied on a related

decision by the governing body or

chauffeur, chef, concierge or other

organization that used one or more of

compensation committee on behalf of

person who regularly runs nonincidental

the methods described next to establish

the organization regarding whether to

personal errands, escort, financial

the top management official's

enter into an employment agreement

planner, handyman, landscaper, lawyer,

compensation.

with the top management official, and

maid, masseur/masseuse, nanny,

the terms of such agreement.

Compensation committee refers to a

personal trainer, personal advisor or

committee of the organization's

Line 4. List in Part III the names of

counselor, pet sitter, physician or other

governing body responsible for

listed persons paid amounts during the

medical specialist, tax preparer, and

determining the top management

year by the filing organization or a

tutor for nonbusiness purposes.

official's compensation package,

related organization under any

Personal services don't include services

whether or not the committee has been

arrangement described in lines 4a

provided to all employees on a

delegated the authority to make an

through 4c, and report the amounts paid

nondiscriminatory basis under a

employment agreement with the top

during the year to each such listed

qualified employee benefit plan.

management official on behalf of the

person. Also describe in Part III the

organization. The compensation

Line 1b. If the organization provided

terms and conditions of any

committee can also have other duties.

any of the benefits listed in line 1a to

arrangement described in lines 4a

one or more listed persons, answer

through 4c in which one or more listed

Independent compensation

“Yes” if the organization followed a

persons participated during the year,

consultant refers to a person outside the

written policy regarding the payment,

regardless of whether any payments to

organization who advises the

provision, or reimbursement of all such

the listed person were made during the

organization regarding the top

benefits to listed persons. If the

year.

management official's compensation

organization didn't follow a written policy

package, holds himself or herself out to

Line 4a. Answer “Yes” if a listed

for payment, provision, or

the public as a compensation

person received a severance or

reimbursement of any listed benefits,

consultant, performs valuations of

change-of-control payment from the

explain in Part III who determined the

nonprofit executive compensation on a

organization or a related organization.

organization would provide such

regular basis, and is qualified to make

A severance payment is a payment

benefits and the decision-making

valuations of the type of services

made if the right to the payment is

process.

provided. The consultant is independent

contingent upon the person's severance

if he or she doesn't have a family

from service in specified circumstances,

-2-

2017 Instructions for Schedule J (Form 990)

Instructions For Schedule J (Form 990) Page 2

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