Form 990 Schedule A Instructions Page 5

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Regulations section 1.509(a)-4(e). If no
contributions made directly or
Part II, line 1, column (d), for the prior
monetary support was provided during
indirectly by the general public.
tax year.
the tax year, enter “-0-.”
Public support is measured using a
Support from a governmental
Column (vi). In this column, the
5-year computation period that includes
unit. Include on line 1 support received
organization may (but isn't required to)
the current and four prior tax years
from a governmental unit. This
provide an estimate of the fair market
(including short years). If the
includes contributions, but not gross
value of goods, other property, services,
organization's current tax year or any of
receipts from exercising or performing
and use of facilities that is provided to or
its four prior tax years were short years,
the organization's tax-exempt purpose
for the benefit of the supported
explain in Part VI.
or function, which should be reported on
organizations during the tax year.
If the organization wasn't a section
line 12. An amount received from a
Describe in Part VI any such goods,
501(c)(3) organization for the entire
governmental unit is treated as gross
other property, services, and use of
5-year period in Part II, report amounts
receipts from exercising or performing
facilities, whether or not an amount is
only for the years the organization was a
the organization's tax-exempt purpose
reported for them in column (vi).
section 501(c)(3) organization.
or function if the purpose of the payment
is primarily to serve the direct and
Part II. Support Schedule
Line 1. Don't include any “unusual
immediate needs of the payor
for Organizations
grants.” See Unusual grants, later.
governmental unit, and is treated as a
Include membership fees only to the
Described in Sections
contribution, if the purpose is primarily
extent to which the fees are payments to
to provide a direct benefit to the public.
170(b)(1)(A)(iv) and
provide support for the organization
For example, a payment to maintain
170(b)(1)(A)(vi)
rather than to purchase admissions,
library facilities that are open to the
merchandise, services, or the use of
public should be treated as a
If the organization checked a
facilities. To the extent that the
contribution. See Regulations section
box in Part I, on line 5, 7, or 8, it
!
membership fees are payments to
1.170A-9(f)(8) and Rev. Rul. 81-276,
should complete Part II and
purchase admissions, merchandise,
CAUTION
1981-2 C.B. 128. Refer to the
insert the appropriate dollar amounts.
services, or the use of facilities in a
instructions for Form 990, Part VIII, lines
Don't leave Part II blank or report only
related activity, report the membership
1e and 2, for more examples addressing
zeros if the organization had any
fees on line 12. To the extent that the
the distinction between government
support during the period. If the
membership fees are payments to
payments that are contributions and
organization checks the box in Part II,
purchase admissions, merchandise,
government payments that are gross
on line 13, it should stop there and not
services, or the use of facilities in an
receipts from activities related to the
complete the rest of Part II.
unrelated business activity, report the
organization's tax-exempt purpose or
membership fees on line 9. See
function. Medicare and Medicaid
If the organization checked a
Regulations section 1.170A-9(f)(7)(iv).
payments are treated as gross receipts
box in Part I, on line 5, 7, or 8
Include qualified sponsorship payments
TIP
from patients rather than as
and also checks the box in Part
under section 513(i).
contributions from the government
II, on line 18, the organization should
Noncash contributions. Use any
payor for purposes of the public support
complete Part III to determine if it
reasonable method to determine the
test. See Rev. Rul. 83-153, 1983-2 C.B.
qualifies as a publicly supported
value of noncash contributions reported
48.
organization under section 509(a)(2). If
on line 1.
it does qualify, the organization should
Unusual grants. Unusual grants
instead check the box in Part I, on
Don't report any donations of
generally are substantial contributions
line 10.
services (such as the value of donated
and bequests from disinterested
advertising space or broadcast air time)
persons and are:
Public Support Test. For an
or donations of use of materials,
1. Attracted because of the
organization to qualify as a publicly
equipment, or facilities, on line 1 as
organization's publicly supported
supported organization under section
gifts, grants, or contributions. Donated
nature,
170(b)(1)(A)(vi), either:
services and facilities from a
33
% or more of its total support
2. Unusual and unexpected
1
governmental unit only are reported
3
must come from governmental
because of the amount, and
on line 3.
agencies, contributions from the general
3. Large enough to endanger the
Loss on uncollectible pledge. If
public, and contributions or grants from
organization's status as normally
an organization records a loss on an
other public charities; or
meeting either the 33
% public support
1
3
uncollectible pledge that it reported on a
10% or more of its total support must
test or the 10% facts and circumstances
prior year's Schedule A, it should deduct
come from governmental agencies,
test.
that loss from the contribution amount
contributions from the general public,
for the year in which it originally counted
For a list of other factors to be
and contributions or grants from other
that contribution as revenue. For
considered in determining whether a
public charities and the facts and
example, if in the prior tax year the
grant is an unusual grant, see
circumstances indicate it is a publicly
organization reported a pledged
Regulations section 1.509(a)-3(c)(4).
supported organization.
contribution with a then-present value of
An unusual grant is excluded even if
$50,000 in Part II, line 1, column (e), but
Note. An organization won't meet either
the organization receives or accrues the
learned during the current tax year that
of these public support tests if almost all
funds over a period of years.
it wouldn't receive any of that pledged
of its support comes from gross receipts
Don't report gross investment income
contribution, it should deduct the
from related activities and an
items as unusual grants. Instead,
$50,000 from the amount reported in
insignificant amount of its support
include all investment income on line 8.
comes from governmental units and
Instructions for Schedule A (Form 990 or 990-EZ)
-5-

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