Form 990 Schedule A Instructions (Page 13 of 19) in pdf

Instructions for Form 4720, Return of

participate in the control relationship

doesn't qualify as a Type III supporting

Certain Excise Taxes Under Chapters

described in line 1, but only if such

organization for the tax year in which it

41 and 42 of the Internal Revenue

activity carries out the purposes of the

fails to timely submit.

Code.

controlling supported organizations.

State whether during the tax year

being reported the organization

Section C. Type II Supporting

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

provided a timely notice with the

Type I and Type III supporting

Organizations

required information in the required

organizations from accepting a gift or

manner.

Line 1. A Type II supporting

contribution from certain persons

organization must be supervised or

associated with a supported

Lines 2 and 3. A Type III supporting

controlled in connection with its

organization of such supporting

organization must be responsive to the

supported organization(s). This means

organization. Specifically, if a Type I or

needs or demands of a supported

that there must be common supervision

Type III supporting organization accepts

organization. An organization meets this

or control by the persons supervising or

a contribution after August 16, 2006,

responsiveness test with regard to a

controlling both the supporting

from a person who controls the

particular supported organization if:

organization and the supported

governing body of a supported

1. The supported organization has

organization(s) to ensure that the

organization (or from a family member

an adequate relationship with the

supporting organization will be

of such person, or from a 35%

supporting organization because:

responsive to the needs and

controlled entity of such persons),

a. The supported organization

requirements of the supported

then the supporting organization loses

regularly appoints or elects (whether

organization(s). This relationship is

its status as a supporting organization.

or not during the tax year) at least

most clearly established when the same

Such supporting organization must file

one officer, director, or trustee of the

persons serve as all or a majority of the

Form 990-PF unless it qualifies as a

supporting organization;

directors or trustees of all of the

public charity under section 509(a)(1) or

b. At least one member of the

organizations involved. However, there

(2).

governing body of the supported

may be other ways to establish this

Section B. Type I Supporting

organization also serves as an

relationship. If the organization relies on

Organizations

other than overlap of at least a majority

officer, director, or trustee of the

of directors or trustees of all

supporting organization; or

Line 1. A Type I supporting

organizations involved, check “No” and

c. The officers, directors, or trustees

organization must be operated,

describe in Part VI how the necessary

of the supporting organization and

supervised, or controlled by one or

relationship is established.

of the supported organization

more of its supported organizations (the

maintain a close and continuous

Section D. All Type III

“controlling supported organizations”).

working relationship; and

This means that the controlling

Supporting Organizations

2. Because of this relationship, the

supported organizations must have a

supported organization has a significant

Line 1. A Type III supporting

substantial degree of direction over the

voice in the supporting organization’s

organization must supply annually a

policies, programs, and activities of the

investment policies, timing of grants,

written notice, addressed to a principal

supporting organization, and the

manner of making grants, selection of

officer of each supported organization,

supporting organization in turn must be

grant recipients, and other use of

which includes the following.

responsive to the needs or demands of

income or assets (the “significant voice”

the controlling supported organizations,

1. A description of the type and

test).

and must constitute an integral part of,

amount of all support the supporting

or maintain a significant involvement in,

organization provided to the supported

In the case of a supporting

the operations of the controlling

organization during the supporting

organization that supported a supported

supported organizations. This

organization’s tax year preceding the

organization before November 20,

relationship is most clearly established

tax year in which the notice is provided.

1970, additional facts and

when one or more supported

circumstances such as a historic and

2. A copy of the supporting

organizations (through their officers,

continuing relationship between the

organization’s most recently filed Form

directors, trustees, or membership)

organizations may also be taken into

990 (the supporting organization may

have the unconditional power to remove

account in considering the

redact the names and addresses of

and replace at least a majority of the

responsiveness test.

contributors).

supporting organization’s directors or

If the organization had an adequate

3. A copy of the supporting

trustees at any time. The relationship is

relationship with at least one supported

organization’s updated governing

also commonly established when one or

organization only by means of a “close

documents (including articles of

more supported organizations have the

and continuous working relationship” or

organization, bylaws, and any

power to appoint or elect at least a

a “historic and continuing relationship,”

amendments), to the extent not

majority of the supporting organization’s

then in Part VI explain the relationship

previously provided.

directors or trustees at regular intervals.

and how it was maintained. Also, all

However, there may be other ways to

See Regulations section

Type III supporting organizations that

establish this relationship. If the

1.509(a)-4(i)(2). The notice must be

claim to meet the significant voice test

organization relies on other ways to

submitted by the last day of the fifth

must describe in Part VI the voice or role

establish the relationship, check “No”

month of the supporting organization's

of the supported organization(s) in

and describe in Part VI how the

tax year being reported (May 31 for

directing the supporting organization’s

necessary relationship is established.

calendar-year filers). An organization

use of its income or assets.

that doesn't timely submit the required

Line 2. The supporting organization

information in the required manner

may benefit organizations that don't

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

-13-

Form 990 Schedule A Instructions Page 13

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