Form 990 Schedule A Instructions (Page 9 of 19) in pdf

$50,000 in Part III, line 1, column (e), but

grant is an unusual grant, see

conservation contributions and

learned during the current tax year that

Regulations section 1.509(a)-3(c)(4).

contributions of conservation

it wouldn't receive any of that pledged

easements consistently with how it

An unusual grant is excluded even if

contribution, it should deduct the

reports revenue from such contributions

the organization receives or accrues the

$50,000 from the amount reported in

in its books, records, and financial

funds over a period of years.

Part III, line 1, column (d), for the prior

statements and in Form 990, Part VIII,

Don't report gross investment income

tax year.

Statement of Revenue.

items as unusual grants. Instead,

Reporting contributions not reported

Support from a governmental

include all investment income on

as revenue. If the organization reports

unit. Include on line 1 support received

line 10a.

any contributions on line 1 of

from a governmental unit. This

See Rev. Rul. 76-440, 1976-2 C.B.

Schedule A (Form 990 or 990-EZ), Part

includes contributions, but not gross

58; Regulations section

III, that it doesn't report on Form 990, as

receipts from exercising or performing

1.170A-9(f)(6)(ii); and Regulations

revenue in Part VIII or as assets in Part

the organization's tax-exempt purpose

sections 1.509(a)-3(c)(3) and

X, or as revenue or assets on Form

or function, which should be reported on

1.509(a)-3(c)(4) for details about

990-EZ, explain in Part VI the basis for

line 2. Contributions are sometimes

unusual grants.

characterizing such transfers as

difficult to distinguish from such gross

Include in Part VI a list showing the

contributions but not as revenue or

receipts—the label on the agreement

amount, but not the grantor, of each

assets. For example, if an organization

isn't controlling. An amount received

unusual grant actually received each

is a community foundation that receives

from a governmental unit is treated as

year (if the cash accounting method is

and holds a cash transfer for another

gross receipts from exercising or

used) or accrued each year (if the

tax-exempt organization and reports

performing the organization's

accrual accounting method is used).

contributions of such property on

tax-exempt purpose or function if the

Schedule A (Form 990 or 990-EZ), Part

purpose of the payment is primarily to

Don't include the names of the

III, line 1, without reporting it on Form

serve the direct and immediate needs of

grantors because Part VI will be

990, as revenue in Part VIII or assets in

the payor governmental unit. An amount

made available for public

CAUTION

Part X, explain the basis for

is treated as a contribution if the

inspection.

characterizing the property as

purpose of the payment is primarily to

contributions but not as revenue or

provide a direct benefit to the public. For

Unusual grants recordkeeping.

assets.

example, if a state government agency

An organization that received any

pays an organization to operate an

unusual grants during the 5-year period,

Line 2. Include gross receipts from

institute to train agency employees in

should also keep for its records a list

admissions, merchandise sold, services

the principles of management and

showing, for each year, the name of the

performed, or facilities furnished in any

administration, the funds received

contributor, the date and amount of the

activity that is related to the

should be included on line 2 as gross

grant, and a brief description of the

organization's tax-exempt purpose

receipts. See Regulations section

grant. If the organization used the cash

(such as charitable, educational, etc.).

1.509(a)-3(g). Refer to the instructions

method for the applicable year, show

To the extent that membership fees

for Form 990, Part VIII, lines 1e and 2,

only amounts the organization actually

are payments to purchase admissions,

for more examples addressing the

received during that year. If the

merchandise, services, or the use of

distinction between government

organization used the accrual method

facilities in a related activity, include the

payments that are contributions and

for the applicable year, show only

membership fees on this line 2. See

government payments that are gross

amounts the organization accrued for

Regulations section 1.509(a)-3(h).

receipts from activities related to the

that year. An example of this list is given

organization's tax-exempt purpose or

later.

Line 3. Include gross receipts from

function. Medicare and Medicaid

activities that aren't an unrelated trade

Don't file this list with the

payments are treated as gross receipts

or business under section 513, such as:

organization's Form 990 or

from patients rather than as

A trade or business in which

990-EZ because it may be

contributions from the government

CAUTION

substantially all work is performed by

made available for public inspection.

payor for purposes of the public support

volunteers (such as book fairs and

test. See Rev. Rul. 83-153, 1983-2 C.B.

sales of gift wrap paper). See section

Line 1. Example—List of unusual

48.

513(a)(1).

grants

A trade or business carried on by the

Unusual grants. Unusual grants

organization primarily for the

▶

generally are substantial contributions

Description

convenience of its members, students,

Year

2016

and bequests from disinterested

patients, officers, or employees. See

▶

persons and are:

Undeveloped land

section 513(a)(2).

Name

Mr.

1. Attracted because of the

A trade or business which is the

Distinguished Donor

organization's publicly supported

selling of merchandise, substantially all

▶

nature,

Date of Grant

of which the organization received as

2. Unusual and unexpected

gifts or contributions. See section

January 15, 2016

▶

because of the amount, and

513(a)(3).

Amount of Grant

“Qualified public entertainment

3. Large enough to endanger the

$600,000

activities” or “qualified convention and

organization's status as normally

trade show activities” of certain

meeting the 33

% public support test.

Conservation easements and quali-

organizations. See section 513(d).

For a list of other factors to be

fied conservation contributions. The

Furnishing certain hospital services.

considered in determining whether a

organization must report any qualified

See section 513(e).

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

-9-

Form 990 Schedule A Instructions Page 9

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