Form 990 Schedule A Instructions (Page 12 of 19) in pdf

supported organization was described

discretion over funds granted to an

supporting organization generally may

in section 509(a)(1) or (2) and why the

organization that isn't exempt under

also make grants or provide services or

supported organization doesn't have

section 501(c)(3). See Rev. Rul.

facilities to (1) individual members of the

such an IRS determination (for example,

68-489, 1968-2 C.B. 210. Also, a

charitable class benefited by its

because it has applied for but not yet

domestic charity generally must

supported organization(s) or (2) other

received such a determination, or it isn't

exercise control and discretion over

supporting organizations that also

required to obtain recognition of its

funds granted to a foreign organization.

support or benefit its supported

public charity status because it is a

See Rev. Rul. 63-252, 1963-2 C.B. 101,

organization(s). See Regulations

church, a State university, or described

and Rev. Rul. 66-79, 1966-1 C.B. 48.

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

in section 4948(b)).

made any grants or provided any

Explain in Part VI how the

benefits to any other organization or

organization retained such control and

Line 3a. A supporting organization may

individual, check “Yes” and provide

discretion despite being controlled or

support an organization described in

detail in Part VI.

supervised by or in connection with

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

such foreign supported organization(s).

supported organization satisfies the

Lines 7 and 8. Under section

Also explain what controls the

public support tests applicable to a

4958(c)(3), any grant, loan,

organization used to ensure that all

section 509(a)(2) organization. See

compensation, or other similar payment

support to the foreign supported

Regulations section 1.509(a)-4(k) and

provided by a supporting organization to

organization(s) was used exclusively for

the instructions for Part III. If the

a substantial contributor (defined in

charitable, educational, etc., purposes

organization supports a section

section 4958(c)(3)(C)), to a family

described in section 170(c)(2)(B) if the

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

member (defined in section 4958(f)(4)),

foreign supported organization doesn't

“Yes” for line 3a.

and to a 35% controlled entity of such

have an IRS determination under

persons, is considered a per se excess

Line 3b. If the organization confirmed

sections 501(c)(3) and 509(a)(1) or (2).

benefit in its entirety, regardless of the

that the supported organization qualified

fairness or reasonableness of the

Line 5. Supporting organizations may

under section 501(c)(4), (5), or (6) and

payment, and is subject to tax under

add, substitute, or remove supported

met the section 509(a)(2) public support

section 4958(a). The same is true of any

organizations only in certain limited

test for its most recent tax year, check

loan by a supporting organization to a

situations. See Regulations section

“Yes” and describe in Part VI how the

disqualified person under section

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

organization made this determination.

4958 (other than loans to certain

Type II supporting organization may add

For example, the organization may ask

exempt organizations). If the

or substitute particular supported

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

organization made any such payment or

organizations within the class or classes

supported organization to furnish a copy

loan during the tax year, check “Yes”

designated in its articles, but may not

of its IRS determination letter and to

and report the transaction on

add or substitute supported

complete annually a pro forma

Schedule L (Form 990 or 990-EZ),

organizations outside of the designated

Schedule A, Part III, and keep the letter

Transactions With Interested Persons,

class(es). A Type III supporting

and support calculation in the

Part I. For more information on excess

organization, which must specify its

supporting organization’s files.

benefit transactions generally, see the

supported organizations by name, may

If the supporting organization doesn't

Instructions for Schedule L.

only substitute supported organizations

annually confirm that its supported

if such substitution is conditioned upon

Line 9. A supporting organization may

organization satisfies the section

the occurrence of an event which is

not be controlled by disqualified

509(a)(2) public support test, it must

beyond the control of the supporting

persons, as defined in section 4946.

explain in Part VI how it knows that the

organization (such as a supported

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

supported organization would have

organization’s lapse into private

and foundation managers who are

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

foundation status).

disqualified persons only as a result of

were described in section 501(c)(3)

being foundation managers, aren't

If the organization has added,

during the tax year.

treated as disqualified persons for this

substituted, or removed any supported

Line 3c. Support given to a supported

purpose. Impermissible control may be

organization during the tax year, check

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

direct or indirect. If a disqualified person

“Yes” and provide detail in Part VI,

organization must be used solely for

holds any of the interests described in

including (i) the names and EINs of the

charitable purposes. If the supporting

lines 9b or 9c, or derives personal

organizations added, substituted, or

organization has put into place

benefit from any such assets, provide

removed; (ii) the reasons for each

measures to ensure that such support is

detail in Part VI.

addition, substitution, or removal; (iii)

used solely for charitable purposes,

the authority under the organization’s

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

check “Yes” and describe those

organizing document for each addition,

II supporting organization that accepts a

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

substitution, or removal; and (iv) an

contribution from a person who controls

and describe in Part VI how the

explanation of how the action was

the governing body of a supported

supporting organization ensured during

accomplished (such as by amendment

organization (or from a family member

the tax year that its assets were used

to the organizing document substituting

of such person, or from a 35%

solely for charitable purposes.

a new supported organization).

controlled entity of such person) is

Line 4a. A supporting organization

subject to the excess business holdings

Line 6. A supporting organization must

can't qualify for Type III status in the tax

tax under section 4943. All Type III

engage solely in activities that support

year if any supported organization

non-functionally integrated supporting

or benefit its supported organization(s).

wasn't organized in the United States.

organizations generally are also subject

In addition to making grants and

to the tax. For more information about

providing services and facilities directly

Lines 4b and 4c. A supporting

excess business holdings, see the

to its supported organization(s), a

organization must exercise control and

-12-

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

Form 990 Schedule A Instructions Page 12

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