Form 990 Juhised
Form 990 Tulumaksuvaba organisatsiooni tagastamine Vastavalt riigitulude seadustiku paragrahvile 501(c), 527 või paragrahvi 4947(a)(1) (välja arvatud eraõiguslikud sihtasutused)
Rev. 2023
Seotud vormid
- Form 990 - Tulumaksust vabastatud organisatsiooni tagastamine
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 990
Return of Organization
Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code
(except private foundations)
Section references are to the Internal Revenue Code unless
otherwise noted.
Contents
Page
Appendix A. Exempt Organizations Reference
Contents
Page
Appendix B. How To Determine Whether an
Organization's Gross Receipts Are Normally
Appendix C. Special Gross Receipts Tests for
Determining Exempt Status of Section 501(c)
B. Organizations Not Required To File Form
Appendix E. Group Returns—Reporting
C. Sequencing List To Complete the Form
Appendix F. Disregarded Entities and Joint
Appendix G. Section 4958 Excess Benefit
Appendix H. Forms and Publications To File or
Appendix I. Use of Form 990 or 990-EZ To Satisfy
J. Requirements for a Properly Completed
Appendix K. Reporting Information for Section
Future Developments
Part III. Statement of Program Service
For the latest information about developments related to Form
990 and its instructions, such as legislation enacted after they
Part V. Statements Regarding Other IRS
Reminders
Ann. 2021-18 revoked Ann. 2001-33. Ann. 2001-33, 2001-17
I.R.B. 1137, provided tax-exempt organizations with reasonable
cause for purposes of relief from the penalty imposed under
section 6652(c)(1)(A)(ii) if they reported compensation on their
annual information returns in the manner described in Ann.
2001-33 instead of in accordance with certain form instructions.
Ann. 2021-18, 2021-52 I.R.B. 910, revoked Ann. 2001-33 and
instructs affected tax-exempt organizations to follow the specific
instructions for Form 990, Form 990-EZ, and Form 990-PF,
effective for annual information returns required for tax years
beginning on or after January 1, 2022.
Part VI. Governance, Management, and
Part VII. Compensation of Officers, Directors,
Trustees, Key Employees, Highest
Compensated Employees, and
Section 501(c)(21) trusts. Form 990-BL, Information and
Initial Excise Tax Return for Black Lung Benefit Trusts and
Certain Related Persons, has been a historical form since tax
year 2021. Section 501(c)(21) trusts can no longer file Form
990-BL and will file Form 990 (or submit Form 990-N, Electronic
Notice (e-Postcard) for Tax-Exempt Organizations Not Required
To File Form 990 or 990-EZ, if eligible) to meet their annual filing
Appendix of Special Instructions to Form 990
Dec 14, 2023
Cat. No. 11283J
obligations under section 6033. Some section 501(c)(21) trusts
may also be required to file Form 6069, Return of Certain Excise
Taxes on Mine Operators, Black Lung Trusts, and Other Persons
Under Sections 4951, 4952, and 4953.
and the filing organization (see Appendix D), and can be
required to be filed with state governments to satisfy state
reporting requirements. See Appendix I. Use of Form 990 or
990-EZ To Satisfy State Reporting Requirements.
Reminder: Don't include social security numbers
Purpose of Form
(SSNs) on publicly disclosed forms. Because the
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Forms 990 and 990-EZ are used by tax-exempt organizations,
nonexempt charitable trusts, and section 527 political
organizations to provide the IRS with the information required by
section 6033.
CAUTION
filing organization and the IRS are required to publicly
disclose the organization's annual information returns, SSNs
shouldn't be included on this form. By law, with limited
exceptions, neither the organization nor the IRS may remove that
information before making the form publicly available.
Documents subject to disclosure include statements and
attachments filed with the form. For more information, see
Appendix D.
An organization's completed Form 990 or 990-EZ, and a
section 501(c)(3) organization's Form 990-T, Exempt
Organization Business Income Tax Return, are generally
available for public inspection as required by section 6104.
Schedule B (Form 990), Schedule of Contributors, is available
for public inspection for section 527 organizations filing Form
990 or 990-EZ. For other organizations that file Form 990 or
990-EZ, parts of Schedule B (Form 990) can be open to public
inspection. See Appendix D. Public Inspection of Returns, and
the Instructions for Schedule B (Form 990) for more details.
Helpful hints. The following hints can help you more efficiently
review these instructions and complete the form.
See General Instructions, Section C, later, which provides
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guidance on the recommended order for completing the form
and applicable statements.
Throughout these instructions, “the organization” and the
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Some members of the public rely on Form 990 or 990-EZ as
their primary or sole source of information about a particular
organization. How the public perceives an organization in such
cases can be determined by information presented on its return.
“filing organization” both refer to the organization filing Form 990.
Unless otherwise specified, information should be provided
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for the organization's tax year. For instance, an organization
should answer “Yes” to a question asking whether it conducted a
certain type of activity only if it conducted that activity during the
tax year.
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The examples appearing throughout the Instructions for Form
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990 are illustrative only. They are for the purpose of completing
this form and aren't all-inclusive.
Instructions for the Form 990 schedules are published
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separately from these instructions.
Organizations that have $1,000 or more for the tax year
of total gross income from all unrelated trades or
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CAUTION
businesses must file Form 990-T to report and pay tax
Phone Help
on the resulting unrelated business taxable income (UBTI), in
addition to any required Form 990, 990-EZ, or 990-N.
If you have questions and/or need help completing Form 990,
please call 877-829-5500. This toll-free telephone service is
available Monday through Friday.
A. Who Must File
Email Subscription
Most organizations exempt from income tax under section
501(a) must file an annual information return (Form 990 or
990-EZ) or submit an annual electronic notice (Form 990-N),
depending upon the organization's gross receipts and total
assets.
The IRS has established a subscription-based email service for
tax professionals and representatives of tax-exempt
organizations. Subscribers will receive periodic updates from the
IRS regarding exempt organization tax law and regulations,
available services, and other information. To subscribe, go to
An organization may not file a “consolidated” Form 990
to aggregate information from another organization that
TIP
has a different employer identification number (EIN),
unless it is filing a group return and reporting information from a
subordinate organization or organizations, reporting
information from a joint venture or disregarded entity (see
Appendix E. Group Returns—Reporting Information on Behalf of
the Group, and Appendix F. Disregarded Entities and Joint
Ventures—Inclusion of Activities and Items, later), or as
otherwise provided for in the Code, regulations, or official IRS
guidance. A parent-exempt organization of a section 501(c)(2)
title-holding company may file a consolidated Form 990-T with
the section 501(c)(2) organization, but not a consolidated Form
990.
General Instructions
Overview of Form 990
Note. Terms in bold are defined in the Glossary of the
Instructions for Form 990.
Form 990 is an annual information return required to be filed with
the IRS by most organizations exempt from income tax under
section 501(a), and certain political organizations and
nonexempt charitable trusts. Parts I through XII of the form
must be completed by all filing organizations and require
reporting on the organization's exempt and other activities,
finances, governance, compliance with certain federal tax filings
and requirements, and compensation paid to certain persons.
Additional schedules are required to be completed depending
upon the activities and type of the organization. By completing
Part IV, the organization determines which schedules are
required. The entire completed Form 990 filed with the IRS,
except for certain contributor information on Schedule B (Form
990), is required to be made available to the public by the IRS
Form 990 must be filed by an organization exempt from
income tax under section 501(a) (including an organization that
hasn't applied for recognition of exemption) if it has either (1)
gross receipts greater than or equal to $200,000, or (2) total
assets greater than or equal to $500,000 at the end of the tax
year (with exceptions described below for organizations eligible
to submit Form 990-N and for certain organizations described in
Section B. Organizations Not Required To File Form 990 or
990-EZ, later). This includes:
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Instructions to Form 990
Organizations described in section 501(c)(3) (other than
2. The exclusively religious activities of a religious order; or
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private foundations), and
3. An organization, the gross receipts of which are normally
not more than $5,000, that supports a section 501(c)(3) religious
organization.
Organizations described in other 501(c) subsections.
Gross receipts are the total amounts the organization
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received from all sources during its tax year, without subtracting
any costs or expenses. See Appendix B. How To Determine
Whether an Organization's Gross Receipts Are Normally
$50,000 (or $5,000) or Less, later, for a discussion of gross
receipts.
If the organization is described in (3) but not in (1) or (2), then it
must submit Form 990-N unless it voluntarily files Form 990 or
990-EZ.
Section 501(c)(7) and 501(c)(15) organizations. Section
501(c)(7) and 501(c)(15) organizations apply the same gross
receipts test as other organizations to determine whether they
must file Form 990, but use a different definition of gross receipts
to determine whether they qualify as tax exempt for the tax year.
See Appendix C. Special Gross Receipts Tests for Determining
Exempt Status of Section 501(c)(7) and 501(c)(15)
For purposes of Form 990 reporting, the term “section 501(c)
(3)” includes organizations exempt under sections 501(e) and (f)
(cooperative service organizations), 501(j) (amateur sports
organizations), 501(k) (childcare organizations), and 501(n)
(charitable risk pools). In addition, any organization described in
one of these sections is also subject to section 4958 if it obtains
a determination letter from the IRS stating that it is described in
section 501(c)(3).
Organizations for more information.
Section 527 political organizations. A tax-exempt political
organization must file Form 990 or 990-EZ if it had $25,000 or
more in gross receipts during its tax year, even if its gross
receipts are normally $50,000 or less, unless it meets one of the
exceptions for certain political organizations under Section B,
later. A qualified state or local political organization must file
Form 990 or 990-EZ only if it has gross receipts of $100,000 or
more. Political organizations aren't required to submit Form
990-N.
Form 990-N. If an organization normally has gross receipts of
$50,000 or less, it must submit Form 990-N, if it chooses not to
file Form 990 or 990-EZ (with exceptions described below for
certain section 509(a)(3) supporting organizations and for
certain organizations described in Section B, later). See
Appendix B for a discussion of gross receipts.
Form 990-EZ. If an organization has gross receipts less than
$200,000 and total assets at the end of the tax year less than
$500,000, it can choose to file Form 990-EZ, Short Form Return
of Organization Exempt From Income Tax, instead of Form 990.
See the Instructions for Form 990-EZ for more information. See
the special rules below regarding section 501(c)(21) black
lung trusts, controlling organizations under section 512(b)
(13), and sponsoring organizations of donor advised funds.
Section 4947(a)(1) nonexempt charitable trusts. A
nonexempt charitable trust described under section 4947(a)
(1) (if it isn't treated as a private foundation) is required to file
Form 990 or 990-EZ, unless excepted under Section B, later.
Such a trust is treated like an exempt section 501(c)(3)
organization for purposes of completing the form. Section
4947(a)(1) trusts must complete all sections of the Form 990 and
schedules that section 501(c)(3) organizations must complete.
All references to a section 501(c)(3) organization in the Form
990, schedules, and instructions include a section 4947(a)(1)
trust (for instance, such a trust must complete Schedule A (Form
990), Public Charity Status and Public Support, unless otherwise
specified). If such a trust doesn't have any taxable income under
subtitle A of the Code, it can file Form 990 or 990-EZ to meet its
section 6012 filing requirement and doesn't have to file Form
1041, U.S. Income Tax Return for Estates and Trusts.
If an organization eligible to submit the Form 990-N or file the
Form 990-EZ chooses to file the Form 990, it must file a
complete return.
Foreign and U.S. territory organizations. Foreign
organizations and U.S. territory organizations as well as
domestic organizations must file Form 990 or 990-EZ unless
specifically excepted under Section B, later. Report amounts in
U.S. dollars and state what conversion rate the organization
uses. Combine amounts from inside and outside the United
States and report the total for each item. All information must be
written in English.
Returns when exempt status not yet established. An
organization is required to file Form 990 under these instructions
if the organization claims exempt status under section 501(a) but
hasn't established such exempt status by filing Form 1023,
Application for Recognition of Exemption Under Section 501(c)
(3) of the Internal Revenue Code; Form 1023-EZ, Streamlined
Application for Recognition of Exemption Under Section 501(c)
(3) of the Internal Revenue Code; Form 1024, Application for
Recognition of Exemption Under Section 501(a); or Form
1024-A, Application for Recognition of Exemption Under Section
501(c)(4) of the Internal Revenue Code, and receiving an IRS
determination letter recognizing tax-exempt status. In such a
case, the organization must check the “Application pending”
checkbox on Form 990, item B, page 1 (whether or not a Form
1023, 1023-EZ, 1024, or 1024-A has been filed) to indicate that
Form 990 is being filed in the belief that the organization is
exempt under section 501(a), but that the IRS hasn't yet
recognized such exemption.
Section 501(c)(21) black lung trusts. The trustee of a trust
exempt from tax under section 501(a) and described in section
501(c)(21) must file Form 990 and not Form 990-EZ, unless the
trust normally has gross receipts in each tax year of not more
than $50,000 and can file Form 990-N.
Sponsoring organizations of donor advised funds. If
required to file an annual information return for the year,
sponsoring organizations of donor advised funds must file
Form 990 and not Form 990-EZ.
Controlling organizations described in section 512(b)(13).
A controlling organization of one or more controlled entities,
as described in section 512(b)(13), must file Form 990 and not
Form 990-EZ if it is required to file an annual information return
for the year and if there was any transfer of funds between the
controlling organization and any controlled entity during the year.
To be recognized as exempt retroactive to the date of its
organization or formation, an organization claiming tax-exempt
status under section 501(c) (other than 501(c)(29)) must
generally file an application for recognition of exemption (Form
1023, 1023-EZ, 1024, or 1024-A) within 27 months of the end of
the month in which it was legally organized or formed.
Section 509(a)(3) supporting organizations. A section
509(a)(3) supporting organization must file Form 990 or
990-EZ, even if its gross receipts are normally $50,000 or less,
and even if it is described in Rev. Proc. 96-10, 1996-1 C.B. 577,
or is an affiliate of a governmental unit described in Rev. Proc.
95-48,1995-2 C.B. 418, unless it qualifies as:
1. An integrated auxiliary of a church described in
Regulations section 1.6033-2(h);
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2023 Instructions for Form 990
An organization that has filed a letter application for
recognition of exemption as a qualified nonprofit health
insurance issuer under section 501(c)(29), or plans to do
11. Foreign organizations and organizations located in U.S.
territories, whose gross receipts from sources within the
United States are normally $50,000 or less and which didn't
engage in significant activity in the United States (other than
investment activity). Such organizations, if they claim U.S. tax
exemption or are recognized by the IRS as tax exempt, are
generally required to submit Form 990-N if they choose not to file
Form 990 or 990-EZ.
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CAUTION
so, but hasn't yet received an IRS determination letter
recognizing exempt status, must check the “Application pending”
checkbox on the Form 990, item B, page 1 .
B. Organizations Not Required To File
Form 990 or 990-EZ
If a foreign organization or U.S. territory organization is required
to file Form 990 or 990-EZ, then its worldwide gross receipts, as
well as assets, are taken into account in determining whether it
qualifies to file Form 990-EZ.
An organization doesn't have to file Form 990 or 990-EZ even if it
has at least $200,000 of gross receipts for the tax year or
$500,000 of total assets at the end of the tax year if it is
described below (except for section 509(a)(3) supporting
organizations, which are described earlier). See Section A. Who
Must File, earlier, to determine if the organization can file Form
990-EZ instead of Form 990. An organization described in
paragraph 10, 11, or 13 of this Section B is required to submit
Form 990-N unless it voluntarily files Form 990 or 990-EZ, as
applicable.
Certain organizations that file different kinds of annual
information returns.
12. A private foundation (including a private operating
foundation) exempt under section 501(c)(3) and described in
section 509(a). Use Form 990-PF, Return of Private Foundation
or Section 4947(a)(1) Trust Treated as Private Foundation. Also
use Form 990-PF for a taxable private foundation, a section
4947(a)(1) nonexempt charitable trust treated as a private
foundation, and a private foundation terminating its status by
becoming a public charity under section 507(b)(1)(B) (for tax
years within its 60-month termination period). If the organization
successfully terminates, then it files Form 990 or 990-EZ in its
final year of termination.
Certain religious organizations.
1. A church, an interchurch organization of local units of a
church, a convention or association of churches, or an integrated
auxiliary of a church as described in Regulations section
1.6033-2(h) (such as a men's or women's organization, religious
school, mission society, or youth group).
2. A church-affiliated organization that is exclusively
engaged in managing funds or maintaining retirement programs
and is described in Rev. Proc. 96-10. But see the filing
requirements for section 509(a)(3) supporting organizations in
Section A, earlier.
13. A religious or apostolic organization described in section
501(d). Use Form 1065, U.S. Return of Partnership Income.
14. A stock bonus, pension, or profit-sharing trust that
qualifies under section 401. Use Form 5500, Annual Return/
Report of Employee Benefit Plan.
3. A school below college level affiliated with a church or
operated by a religious order described in Regulations section
1.6033-2(g)(1)(vii).
4. A mission society sponsored by, or affiliated with, one or
more churches or church denominations, if more than half of the
society's activities are conducted in, or directed at, persons in
foreign countries.
Subordinate organizations in a group exemption
which are included in a group return filed by the
central organization for the tax year shouldn't file a
TIP
separate Form 990, 990-EZ, or 990-N for the tax year.
C. Sequencing List To Complete the
Form and Schedules
5. An exclusively religious activity of any religious order
You may find the following list helpful. It limits jumping from one
part of the form to another to make a calculation or determination
needed to complete an earlier part. Certain later parts of the
form must first be completed in order to complete earlier parts. In
general, first complete the core form, and then complete
alphabetically Schedules A–N and Schedule R, except as
provided below. Schedule O (Form 990), Supplemental
Information to Form 990 or 990-EZ, should be completed as the
core form and schedules are completed. Note that all
described in Rev. Proc. 91-20, 1991-1 C.B. 524.
Certain governmental organizations.
6. A state institution whose income is excluded from gross
income under section 115.
7. A governmental unit or affiliate of a governmental unit
described in Rev. Proc. 95-48. But see the filing requirements for
section 509(a)(3) supporting organizations in Section A, earlier.
8. An organization described in section 501(c)(1). A section
501(c)(1) organization is a corporation organized under an Act of
Congress that is an instrumentality of the United States, and
exempt from federal income taxes.
organizations filing Form 990 must file Schedule O.
A public charity described in section 170(b)(1)(A)(iv),
170(b)(1)(A)(vi), or 509(a)(2) that isn't within its initial 5
years of existence should first complete Part II or III of
TIP
Certain political organizations.
Schedule A (Form 990) to ensure that it continues to qualify as a
public charity for the tax year. If it fails to qualify as a public
charity, then it must file Form 990-PF rather than Form 990 or
990-EZ, and check the box for “Initial return of a former public
charity” on page 1 of Form 990-PF.
9. A political organization that is:
A state or local committee of a political party,
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A political committee of a state or local candidate,
A caucus or association of state or local officials, or
Required to report under the Federal Election Campaign Act
of 1971 as a political committee (as defined in section 301(4) of
1. Complete items A through F and H(a) through M in the
heading of Form 990, on page 1.
such Act).
Certain organizations with limited gross receipts.
2. See the instructions for definitions of related
10. An organization whose gross receipts are normally
$50,000 or less. Such organizations are generally required to
submit Form 990-N if they choose not to file Form 990 or
990-EZ. To determine what an organization's gross receipts
“normally” are, see Appendix B .
organization and control and determine the organization's
related organizations required to be listed on Schedule R (Form
990), Related Organizations and Unrelated Partnerships.
3. Determine the organization's officers, directors, trustees,
key employees, and five highest compensated employees
required to be listed on Form 990, Part VII, Section A.
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2023 Instructions for Form 990
4. Complete Parts VIII, IX, and X of Form 990.
990-series filing requirement or income tax return filing
requirement at any time during that 10-year period, it must also
file a Form 1128, Application To Adopt, Change, or Retain a Tax
Year, with the short-period return. See Rev. Proc. 85-58, 1985-2
C.B. 740.
If an organization that submits Form 990-N changes its
accounting period, it must report this change on Form 990, Form
990-EZ, or Form 1128, or by sending a letter to Internal Revenue
Service, 1973 Rulon White Blvd., Ogden, UT 84201.
5. Complete item G in the heading section of Form 990, on
page 1.
6. Complete Parts III, V, VII, XI, and XII of Form 990.
7. See the Instructions for Schedule L (Form 990),
Transactions With Interested Persons, and complete Schedule L
(Form 990) (if required).
8. Complete Part VI of Form 990. Transactions reported on
Schedule L (Form 990) are relevant to determining
independence of members of the governing body under Form
990, Part VI, line 1b.
Accounting Methods
An “accounting method,” for federal income tax purposes, is a
practice a taxpayer follows to determine the tax year in which to
report revenue and expenses for federal income tax purposes.
An accounting method includes not only the overall plan of
accounting for gross income or deductions (for example, an
accrual method or the cash receipts and disbursement method),
but also the treatment of any item that involves the proper time
for the inclusion of an item in income or the taking of an item as a
deduction, or both. However, a practice that does not affect the
timing for reporting an item of income or deduction for purposes
of determining taxable income is not an accounting method. A
taxpayer, including a tax-exempt entity, generally adopts any
permissible accounting method in the first year in which it uses
the method in determining its taxable income. See Rev. Proc.
2015-13, 2015-5 I.R.B. 419, as modified by Rev. Proc. 2021-34
and any successor, for general procedures for obtaining consent
to change an accounting method.
9. Complete Part I of Form 990 based on information derived
from other parts of the form.
10. Complete Part IV of Form 990 to determine which
schedules must be completed by the organization.
11. Complete Schedule O (Form 990) and any other
applicable schedules (for “Yes” boxes that were checked in Part
IV). Use Schedule O (Form 990) to provide required
supplemental information and other narrative explanations for
questions on the core Form 990. For questions on Form 990
schedules, use the narrative part of each schedule to provide
supplemental narrative.
12. Complete Part II, Signature Block, of Form 990.
D. Accounting Periods and Methods
These are the accounting periods covered under the law.
An exempt organization may adopt an accounting
Accounting Periods
method not only for purposes of calculating taxable
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CAUTION
income, but also for purposes of determining whether
Calendar year. Use the 2023 Form 990 to report on the 2023
calendar year accounting period. A calendar year accounting
period begins on January 1 and ends on December 31.
taxable income will be subject to federal income tax. For
example, a tax-exempt entity may adopt an accounting method
for an item of income from an unrelated trade or business activity
even if the gross income from such activity is less than $1,000
and is therefore not taxed for federal income tax purposes
pursuant to Regulations section 1.6012-2(e).
Fiscal year. If the organization has established a fiscal year
accounting period, use the 2023 Form 990 to report on the
organization's fiscal year that began in 2023 and ended 12
months later. A fiscal year accounting period should normally
coincide with the natural operating cycle of the organization. Be
certain to indicate in item A of Form 990, page 1, the date the
organization's fiscal year began in 2023 and the date the fiscal
year ended in 2024.
An accounting method for an item of income or deduction
may generally be adopted separately for each of the taxpayer’s
trades or businesses. However, in order to be permissible, an
accounting method must clearly reflect the taxpayer’s income.
Unless instructed otherwise, the organization should generally
use the same accounting method on the return (including the
Form 990 and all schedules) to report revenue and expenses
that it regularly uses to keep its books and records.
Short period. A short accounting period is a period of less than
12 months, which exists when an organization first commences
operations, changes its accounting period, or terminates. If the
organization's short year began in 2023, and ended before
December 31, 2023 (not on or after December 31, 2023), it may
use either 2022 Form 990 or 2023 Form 990 to file for the short
year. If using the 2022 return, provide the information for
designated years listed on the return, other than the tax year
being reported, as if the years shown in the form text and
headings were updated. For example, if filing for a short period
beginning in 2023 on the 2022 Form 990, provide the information
on Schedule A, Part II, for the tax years 2019–2023, rather than
for tax years 2018–2022. Check the “Initial return” box or the
“Final return/terminated” box in item B of the heading if either of
those situations applies.
Accounting method change. Once a taxpayer, including a
tax-exempt entity, adopts an accounting method for federal
income tax purposes, the taxpayer must generally request the
IRS’s consent before it can change its accounting method (even
if the year in which the taxpayer seeks to make the change is a
year in which it generates only tax-exempt income or is
otherwise not taxed on its taxable income). In most cases, a
taxpayer requests consent to change an accounting method by
filing a Form 3115, Application for Change in Accounting
Method. See Rev. Proc. 2015-13, as modified by Rev. Proc.
2021-34 and any successor, for general procedures for obtaining
consent to change an accounting method.
Accounting period change. If the organization changes its
accounting period, it must file a Form 990 for the short period
resulting from the change. If you are filing a short period return
because you changed your accounting period, use software with
a change of accounting period field to file. Also, include the
reason for the change, either “Form 1128 was approved” or
“Revenue Procedure 85-58 rules apply.”
If the organization has previously changed its annual
accounting period at any time within the 10-calendar-year period
that includes the beginning of the short period resulting from
the current change in accounting period, and it had a Form
Depending on the specific accounting method change
being requested, the taxpayer may be able to request
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CAUTION
“automatic” consent. This means that as long as the
taxpayer follows the applicable procedures, the taxpayer does
not have to wait for formal approval by the IRS before applying
the new accounting method. See Rev. Proc. 2023-24, 2023-8
I.R.B. 1207, or its successor, for a list of accounting method
changes that generally qualify for automatic consent.
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2023 Instructions for Form 990
For example, a tax-exempt entity that has adopted an
accounting method for an item of income from an unrelated trade
or business must generally request consent before it can change
its method of accounting for that item in any subsequent year.
This is true regardless of whether gross income from the
unrelated trade or business is greater than or equal to $1,000 in
such subsequent year.
Alternatively, if a taxpayer, including a tax-exempt entity, has
not yet adopted an accounting method for an item of income or
deduction, a change in how the entity reports the item is not a
change in accounting method. In this case, the procedures
applicable to requests for accounting method changes (for
example, the requirement to file a Form 3115) are not applicable.
required to provide such reconciliations on Schedule D (Form
990), Parts XI through XII.
See Pub. 538, Accounting Periods and Methods, and the
instructions for Forms 1128 and 3115, about reporting
changes to accounting periods and methods.
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E. When, Where, and How To File
File Form 990 by the 15th day of the 5th month after the
organization's accounting period ends (May 15th for a
calendar-year filer). If the due date falls on a Saturday, Sunday,
or legal holiday, file on the next business day. A business day is
any day that isn't a Saturday, Sunday, or legal holiday.
Thus, a tax-exempt entity that has never taken into account
an item of income or deduction in determining taxable income
does not have to request consent to change its method of
reporting that item on Form 990. Additionally, a tax-exempt entity
that has never been subject to federal income tax on an item of
income or deduction but that is required to file a Form 990-T
solely due to owing a section 6033(e)(2) proxy tax does not have
to request consent to change its method for reporting the item.
If the organization is liquidated, dissolved, or terminated, file
the return by the 15th day of the 5th month after liquidation,
dissolution, or termination.
If the return isn't filed by the due date (including any extension
granted), provide a reasonable-cause explanation giving the
reasons for not filing on time.
Required electronic filing. If you are filing a 2023 Form 990,
you are required to file electronically.
Adjustments required when changing an accounting meth-
od. A taxpayer, including a tax-exempt entity, that changes its
accounting method must generally calculate and report an
adjustment to ensure that no portion of the item being changed
is permanently omitted or duplicated (see section 481(a)).
However, depending on the specific method change, the IRS
may provide that an adjustment is not required or permitted. An
organization must report any adjustment required by section
481(a) in Parts VIII through XI and on Schedule D (Form 990),
Parts XI and XII, as applicable, and provide an explanation for
the change on Schedule O (Form 990).
For additional information on the electronic filing requirement,
F. Extension of Time To File
Use Form 8868, Application for Extension of Time To File an
Exempt Organization Return or Excise Taxes Related to
Employee Benefit Plans, to request an automatic extension of
time to file.
G. Amended Return/Final Return
To amend the organization's return for any year, file a new return
including any required schedules. Use the version of Form 990
applicable to the year being amended. The amended return
must provide all the information called for by the form and
instructions, not just the new or corrected information. Check the
“Amended return” box in item B in the heading area of the form.
Also, enter on Schedule O (Form 990) which parts and
schedules of the Form 990 were amended and describe the
amendments.
Generally, a taxpayer, including a tax-exempt entity, will
recognize a positive section 481(a) adjustment (such as
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CAUTION
an increase to income) ratably over 4 tax years and will
recognize a negative section 481(a) adjustment in full in the year
of change. See Rev. Proc. 2015-13, as modified by Rev. Proc.
2021-34 and any successor, for general procedures for obtaining
consent to change an accounting method.
However, as discussed above, if a tax-exempt entity has not
yet adopted an accounting method for an item, a change in how
the entity reports the item for purposes of the Form 990 is not a
change in accounting method. In this case, an adjustment under
section 481(a) is not required or permitted.
The organization can file an amended return at any time to
change or add to the information reported on a previously filed
return for the same period. It must make the amended return
available for inspection for 3 years from the date of filing or 3
years from the date the original return was due, whichever is
later.
State reporting. Many states that accept Form 990 in place of
their own forms require that all amounts be reported based on
the accrual method of accounting. If the organization prepares
Form 990 for state reporting purposes, it can file an identical
return with the IRS even though the return doesn't agree with the
books of account, unless the way one or more items are reported
on the state return conflicts with the instructions for preparing
Form 990 for filing with the IRS.
Example 1. The organization maintains its books on the
cash receipts and disbursements method of accounting but
prepares a Form 990 return for the state based on the accrual
method. It could use that return for reporting to the IRS.
Example 2. A state reporting requirement requires the
organization to report certain revenue, expense, or balance
sheet items differently from the way it normally accounts for them
on its books. A Form 990 prepared for that state is acceptable for
IRS reporting purposes if the state reporting requirement doesn't
conflict with the Instructions for Form 990.
If the organization needs a complete copy of its previously
filed return, it can file Form 4506, Request for Copy of Tax
Return.
If the return is a final return, the organization must check the
“Final return/terminated” box in item B in the heading area of the
form, and complete Schedule N (Form 990), Liquidation,
Termination, Dissolution, or Significant Disposition of Assets.
Amended returns and state filing considerations. State law
may require that the organization send a copy of an amended
Form 990 return (or information provided to the IRS
supplementing the return) to the state with which it filed a copy of
Form 990 to meet that state's reporting requirement. A state may
require an organization to file an amended Form 990 to satisfy
state reporting requirements, even if the original return was
accepted by the IRS.
An organization should keep a reconciliation of any
differences between its books of account and the Form 990 that
is filed. Organizations with audited financial statements are
H. Failure-To-File Penalties
Against the organization. Under section 6652(c)(1)(A), a
penalty of $20 a day, not to exceed the lesser of $12,000 or 5%
6
2023 Instructions for Form 990
of the gross receipts of the organization for the year, can be
charged when a return is filed late, unless the organization
shows that the late filing was due to reasonable cause.
Organizations with annual gross receipts exceeding
$1,208,500 are subject to a penalty of $120 for each day failure
continues (with a maximum penalty for any one return of
$60,000). The penalty applies on each day after the due date
that the return isn't filed.
Tax-exempt organizations that are required to file
electronically but don't are deemed to have failed to file the
return. This is true even if a paper return is submitted.
The penalty can also be charged if the organization files an
incomplete return, such as by failing to complete a required line
item or a required part of a schedule. To avoid penalties and
having to supply missing information later:
A subordinate organization may choose to file a separate
annual information return instead of being included in the group
return.
If the central organization is required to file a return for itself,
it must file a separate return and can't be included in the group
return. See Regulations section 1.6033-2(d)(1). See Section B,
earlier, for a list of organizations not required to file.
Every year, each subordinate organization must authorize the
central organization in writing to include it in the group return and
must declare, under penalties of perjury, that the authorization
and the information it submits to be included in the group return
are true and complete.
The central organization should send the annual information
update required to maintain a group exemption ruling (a separate
requirement from the annual return) to:
Complete all applicable line items;
•
Unless instructed to skip a line, answer each question on the
•
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
return;
Make an entry (including a zero when appropriate) on all lines
•
requiring an amount or other information to be reported; and
Provide required explanations as instructed.
•
For special instructions regarding answering certain Form 990
questions about parts or schedules in the context of a group
return, see Appendix E.
Also, this penalty can be imposed if the organization's return
contains incorrect information. For example, an organization that
reports contributions net of related fundraising expenses can be
subject to this penalty.
J. Requirements for a Properly
Completed Form 990
Use of a paid preparer doesn't relieve the organization of its
responsibility to file a complete and accurate return.
All organizations filing Form 990 must complete Parts I through
XII, Schedule O (Form 990), and any schedules for which a “Yes”
response is indicated in Part IV. If an organization isn't required
to file Form 990 but chooses to do so, it must file a complete
return and provide all of the information requested, including the
required schedules.
Against responsible person(s). If the organization doesn't file
a complete return or doesn't furnish correct information, the IRS
will send the organization a letter that includes a fixed time to
fulfill these requirements. After that period expires, the person
failing to comply will be charged a penalty of $10 a day. The
maximum penalty on all persons for failures for any one return
shall not exceed $6,000.
There are also penalties (fines and imprisonment) for willfully
not filing returns and for filing fraudulent returns and statements
with the IRS (see sections 7203, 7206, and 7207). States can
impose additional penalties for failure to meet their separate
filing requirements.
Public inspection. In general, all information the organization
reports on or with its Form 990, including schedules and
attachments, will be available for public inspection. Note,
however, the special rules for Schedule B (Form 990), a required
schedule for certain organizations that file Form 990. Make sure
PDF attachments (if any) are clear and legible. For more
information on public inspection requirements, see Appendix D,
and Pub. 557, Tax-Exempt Status for Your Organization.
Automatic revocation for nonfiling for 3 consecutive years.
The law requires most tax-exempt organizations to file an annual
Form 990, 990-EZ, or 990-PF with the IRS, or to submit a Form
990-N e-Postcard to the IRS. For information on exceptions to
this requirement, go to Annual Exempt Organization Return:
Who Must File. If an organization fails to file an annual return or
submit a notice as required for 3 consecutive years, its
tax-exempt status is automatically revoked on and after the due
date for filing its third annual return or notice. Organizations that
lose their tax-exempt status may need to file income tax returns
and pay income tax, but may apply for reinstatement of
Signature. A Form 990 isn't complete without a proper
signature. For details, see the instructions under Part II,
Signature Block, later.
Recordkeeping. The organization's records should be kept for
as long as they may be needed for the administration of any
provision of the Internal Revenue Code. Usually, records that
support an item of income, deduction, or credit must be kept for
a minimum of 3 years from the date the return is due or filed,
whichever is later. Keep records that verify the organization's
basis in property for as long as they are needed to figure the
basis of the original or replacement property. Applicable law and
an organization's policies can require that the organization retain
records longer than 3 years. Form 990, Part VI, line 14, asks
whether the organization has a document retention and
destruction policy.
I. Group Return
A central, parent, or similar organization can file a group return
on Form 990 for two or more subordinate or local organizations
that are:
Affiliated with the central organization at the time its tax year
The organization should also keep copies of any returns it has
filed. They help in preparing future returns and in making
computations when filing an amended return.
•
ends,
Subject to the central organization's general supervision or
•
control,
Rounding off to whole dollars. The organization must round
off cents to whole dollars on the returns and schedules, unless
otherwise noted for particular questions. To round, drop amounts
under 50 cents and increase amounts from 50 to 99 cents to the
next dollar. For example, $1.49 becomes $1 and $2.50 becomes
$3. If the organization has to add two or more amounts to figure
the amount to enter on a line, include cents when adding the
amounts and round off only the total.
Exempt from tax under a group exemption letter that is still in
•
effect, and
Using the same tax year as the central organization.
•
The central organization can't use a Form 990-EZ for the
group return.
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2023 Instructions for Form 990
2. Schedules, completed as applicable, filed in alphabetical
order (see Form 990, Part IV, for required schedules).
Completing all lines. Make an entry (including -0- when
appropriate) on all lines requiring an amount or other information
to be reported. Don't leave any applicable lines blank, unless
expressly instructed to skip that line. If answering a line is
predicated on a “Yes” answer to the preceding line, and if the
organization's answer to the preceding line was “No,” then leave
the “If Yes” line blank.
All filers must file Schedule O (Form 990). Certain questions
require all filers to provide an explanation on Schedule O (Form
990). In general, answers can be explained or supplemented on
Schedule O (Form 990) if the allotted space on the form or other
schedule is insufficient, or if a “Yes” or “No” answer is required
but the organization wishes to explain its answer.
3. Attachments, completed as applicable. These include (a)
name change amendment to organizing document required by
item B on page 1; (b) list of subordinate organizations
included in a group return required by item H on page 1; (c)
articles of merger or dissolution, resolutions, and plans of
liquidation or merger required by Schedule N (Form 990); and
(d) for hospital organizations only, a copy of the most recent
audited financial statements.
Don't attach materials not authorized in the instructions or not
otherwise authorized by the IRS.
To facilitate the processing of your return, don't
Missing or incomplete parts of the form and/or required
schedules may result in the IRS contacting you to obtain the
missing information. Failure to supply the information may result
in a penalty being assessed to your account. For tips on filing
password protect or encrypt PDF attachments.
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CAUTION
Password protecting or encrypting a PDF file that is
attached to an e-filed return prevents the IRS from opening the
attachment.
Reporting proper amounts. Some lines request information
reported on other forms filed by the organization (such as Forms
W-2, 1099, and 990-T). If the organization is aware that the
amount actually reported on the other form is incorrect, it must
report on Form 990 the information that should have been
reported on the other form (in addition to filing an amended form
with the proper amount).
In general, don't report negative numbers, but use -0- instead
of a negative number, unless the instructions otherwise provide.
Report revenue and expenses separately and don't net related
items, unless otherwise provided.
Specific Instructions
Heading. Items A–M
Complete items A through M.
Item A. Accounting period. File the 2023 return for calendar
year 2023 and fiscal years that began in 2023 and ended in
2024. For a fiscal year return, fill in the tax year space at the top
of page 1. See General Instructions, Section D, earlier, for
additional information about accounting periods.
Inclusion of activities and items of disregarded entities
and joint ventures. An organization must report on its Form
990 all of the revenues, expenses, assets, liabilities, and net
assets or funds of a disregarded entity of which it is the sole
member, and must report on its Form 990 its share of all such
items of a joint venture or other investment or arrangement
treated as a partnership for federal income tax purposes. This
includes passive investments. In addition, the organization must
generally report activities of a disregarded entity or a joint
venture on the appropriate parts or schedules of Form 990. For
special instructions about the treatment of disregarded entities
and joint ventures for various parts of the form, see Appendix F.
Item B. Checkboxes. The following checkboxes are under Item
B.
Address change. Check this box if the organization changed
its address and hasn't reported the change on its most recently
filed Form 990, 990-EZ, 990-N, or 8822-B, Change of Address or
Responsible Party—Business, or in correspondence to the IRS.
If a change in address occurs after the return is filed, use
Form 8822-B to notify the IRS of the new address.
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Name change. Check this box if the organization changed its
legal name (not its “doing business as” name) and if the
Reporting information from third parties. Some lines
request information that the organization may need to obtain
from third parties, such as compensation paid by related
organizations; family and business relationships between
officers, directors, trustees, key employees, and certain
businesses they own or control; the organization's share of the
income and assets of a partnership or joint venture in which it
has an ownership interest; and certain transactions between the
organization and interested persons. The organization should
make reasonable efforts to obtain this information. If it is unable
to obtain certain information by the due date for filing the return,
it should file Form(s) 8868 to request a filing extension. See
Section F. Extension of Time To File, earlier. If the organization is
unable to obtain this information by the extended due date after
making reasonable efforts, and isn't certain of the answer to a
particular question, it may make a reasonable estimate, where
applicable, and explain on Schedule O.
organization hasn't reported the change on its most recently filed
Form 990 or 990-EZ or in correspondence to the IRS. If the
organization changed its name, attach the following documents.
IF the organization is . . .
THEN attach . . .
a corporation
a copy of the amendment to the
articles of incorporation and proof of
filing with the appropriate state
authority.
a trust
a copy of the amendment to the trust
instrument, or a resolution to amend
the trust instrument, showing the
effective date of the change of name
and signed by at least one trustee.
an unincorporated association
a copy of the amendment to the
articles of association, constitution, or
other organizing document, showing
the effective date of the change of
name and signed by at least two
officers, trustees, or members.
Assembling Form 990, Schedules, and
Attachments
Before filing Form 990, assemble the package of forms,
schedules, and attachments in the following order.
1. Core form with Parts I through XII completed, filed in
Initial return. Check this box if this is the first time the
organization is filing a Form 990 and it hasn't previously filed a
Form 990-EZ, 990-PF, 990-T, or 990-N.
numerical order.
8
2023 Instructions for Form 990
Final return/terminated. Check this box if the organization
has terminated its existence or ceased to be a section 501(a) or
section 527 organization and is filing its final return as an exempt
organization or section 4947(a)(1) trust. For example, an
organization should check this box when it has ceased
operations and dissolved, merged into another organization, or
has had its exemption revoked by the IRS. An organization that
checks this box because it has liquidated, terminated, or
dissolved during the tax year must also attach Schedule N (Form
990).
another organization, even if the organizations are related. The
organization must have only one EIN. If it has more than one and
hasn't been advised which to use, notify the:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
State the numbers the organization has, the name and
address to which each EIN was assigned, and the address of the
organization's principal office. The IRS will advise the
organization which number to use.
An organization must support any claim to have
liquidated, terminated, dissolved, or merged by
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CAUTION
attaching a certified copy of its articles of dissolution or
A subordinate organization that files a separate Form
merger approved by the appropriate state authority. If a certified
copy of its articles of dissolution or merger isn't available, the
organization must submit a copy of a resolution or resolutions of
its governing body approving plans of liquidation, termination,
dissolution, or merger.
990 instead of being included in a group return must use
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its own EIN, and not that of the central organization.
A section 501(c)(9) voluntary employees' beneficiary
association must use its own EIN and not the EIN of its
sponsor.
Amended return. Check this box if the organization
previously filed a return with the IRS for a tax year and is now
filing another return for the same tax year to amend the
previously filed return. Enter on Schedule O (Form 990) the parts
and schedules of the Form 990 that were amended and describe
the amendments. See General Instructions, Section G, earlier,
for more information.
Application pending. Check this box if the organization
either has filed a Form 1023, 1023-EZ, 1024, or 1024-A with the
IRS and is awaiting a response, or claims tax-exempt status
under section 501(a) but hasn't filed Form 1023, 1023-EZ, 1024,
or 1024-A to be recognized by the IRS as tax exempt. If this box
is checked, the organization must complete all parts of Form 990
and any required schedules. An organization that is required to
file an annual information return (Form 990 or 990-EZ) or submit
an annual electronic notice (Form 990-N) for a tax year (see
General Instructions, Section A, earlier) must do so even if it
hasn't yet filed a Form 1023, 1023-EZ, 1024, or 1024-A with the
IRS, if it claims tax-exempt status.
Item E. Telephone number. Enter a telephone number of the
organization that members of the public and government
personnel can use during normal business hours to obtain
information about the organization's finances and activities. If the
organization doesn’t have a telephone number, enter the
telephone number of an organization official who can provide
such information.
Item F. Name and address of principal officer. The address
provided must be a complete mailing address to enable the IRS
to communicate with the organization's current (as of the date
this return is filed) principal officer, if necessary. If the officer
prefers to be contacted at the organization's address listed in
item C, enter “same as C above.” For purposes of this item,
“principal officer” means an officer of the organization who,
regardless of title, has ultimate responsibility for implementing
the decisions of the organization's governing body, or for
supervising the management, administration, or operation of the
organization.
To qualify for tax exemption retroactive to the date of its
organization or formation, an organization claiming tax-exempt
status under section 501(c) (other than 501(c)(29)) must
generally file an application for recognition of exemption (Form
1023, 1023-EZ, 1024, or 1024-A) within 27 months of the end of
the month in which it was legally organized or formed.
If a change in responsible party occurs after the return is
filed, use Form 8822-B to notify the IRS of the new
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responsible party.
Item G. Gross receipts. On Form 990, Part VIII, column A ,
add line 6b (both columns (i) and (ii)), line 7b (both columns (i)
and (ii)), line 8b, line 9b, line 10b, and line 12, and enter the total
here. See the exceptions from filing Form 990 based on gross
receipts and total assets as described under General
Instructions, Sections A and B, earlier.
Item C. Name and address. Enter the organization's legal
name on the “Name of organization” line. If the organization
operates under a name different from its legal name, enter the
alternate name on the “Doing Business As” (DBA) line. If multiple
DBA names won't fit on the line, enter one on the line and enter
the others on Schedule O (Form 990).
If the organization receives its mail in care of a third party
(such as an accountant or an attorney), enter on the street
address line “C/O” followed by the third party's name and street
address or P.O. box.
Include the suite, room, or other unit number after the street
address. If the post office doesn’t deliver mail to the street
address and the organization has a P.O. box, enter the box
number instead of the street address.
For foreign addresses, enter the information in the following
order: city or town, state or province, the name of the country,
and the postal code. Don't abbreviate the country name.
Item H. Group returns. If the organization answers “No” to item
H(a), it shouldn't check a box in item H(b). If the organization
answers “Yes” to item H(a) but “No” to item H(b), attach a list (not
on Schedule O (Form 990)) showing the name, address, and
EIN of each local or subordinate organization included in the
group return. Additionally, attach a list (not on Schedule O)
showing the name, address, and EIN of each subordinate
organization not included in the group return. If the organization
answers “Yes” to item H(a) and “Yes” to item H(b), attach a list
(not on Schedule O) showing the name, address, and EIN of
each subordinate organization included in the group return. See
Regulations section 1.6033-2(d)(2)(ii). A central or subordinate
organization filing an individual return should not attach such a
list. Enter in item H(c) the four-digit group exemption number
(GEN) if the organization is filing a group return, or if the
If a change of address occurs after the return is filed, use
Form 8822-B to notify the IRS of the new address.
organization is a central or subordinate organization in a group
exemption and is filing a separate return. Don't confuse the
four-digit GEN with the nine-digit EIN reported in item D of the
form's heading. A central organization filing a group return
Item D. EIN. Each organization (including a subordinate of a
central organization) must have its own EIN. Use the EIN
provided to the organization for filing its Form 990 and federal tax
returns. An organization should never use the EIN issued to
9
2023 Instructions for Form 990
must not report its own EIN in item D, but report the special EIN
issued for use with the group return.
determine what to report for prior year revenue and expense
amounts.
If attaching a list:
Line 16a. Enter the total of (i) the fees for professional
fundraising services reported in Part IX, column (A), line 11e;
and (ii) the portion of the amount reported in Part IX, column (A),
lines 5 and 6, that comprises fees for professional fundraising
services paid to officers, directors, trustees, key employees, and
disqualified persons, whether or not such persons are
employees of the organization. Exclude the latter amount from
Part I, line 15.
Enter the form number (“Form 990”) and tax year,
Enter the group exemption name and EIN, and
Enter the four-digit GEN.
•
•
•
Item I. Tax-exempt status. Check the applicable box. If the
organization is exempt under section 501(c) (other than section
501(c)(3)), check the second box and insert the appropriate
subsection number within the parentheses (for example, “4” for a
section 501(c)(4) organization).
Part II. Signature Block
Item J. Website. Enter the organization's current address for its
primary website, as of the date of filing this return. If the
organization doesn’t maintain a website, enter “N/A” (not
applicable).
The return must be signed by the current president, vice
president, treasurer, assistant treasurer, chief accounting officer,
or other corporate officer (such as a tax officer) who is
authorized to sign as of the date this return is filed. A receiver,
trustee, or assignee must sign any return he or she files for a
corporation or association. See Regulations section 1.6012-3(b)
(4). For a trust, the authorized trustee(s) must sign. The definition
of “officer” for purposes of Part II is different from the definition of
officer (see the Glossary) used to determine which officers to
report elsewhere on the form and schedules, and from the
definition of principal officer for purposes of the Form 990
heading (see the Glossary).
Item K. Form of organization. Check the box describing the
organization's legal entity form or status under state law in its
state of legal domicile. These include corporations, trusts,
unincorporated associations, and other entities (for example,
partnerships and limited liability companies (LLCs)).
Item L. Year of formation. Enter the year in which the
organization was legally created under state or foreign law. If a
corporation, enter the year of incorporation.
Paid Preparer
Item M. State of legal domicile. For a corporation, enter the
state of incorporation (country of incorporation for a foreign
corporation formed outside the United States). For a trust or
other entity, enter the state whose law governs the organization's
internal affairs (or the foreign country whose law governs for a
foreign organization other than a corporation).
Generally, anyone who is paid to prepare the return must sign
the return, list the preparer taxpayer identification number
(PTIN), and fill in the other blanks in the Paid Preparer Use Only
area. An employee of the filing organization isn't a paid preparer.
The paid preparer must:
Part I. Summary
Sign the return in the space provided for the preparer's
•
signature;
Because Part I generally reports information reported
Enter the preparer information, including the preparer's PTIN;
•
elsewhere on the form, complete Part I after the other
parts of the form are completed. See General
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and
Give a copy of the return to the organization.
•
Instructions, Section C, earlier.
Any paid preparer can apply for and obtain a PTIN online at
Complete lines 3–5 and 7–22 by using applicable references
made in Part I to other items.
Identification Number (PTIN) Application and Renewal.
Line 1. Describe the organization's mission or its most
significant activities for the year, whichever the organization
wishes to highlight, on the summary page.
Enter the paid preparer's PTIN, not his or her SSN, in the
“PTIN” box in the paid preparer's block. The IRS won't
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CAUTION
redact the paid preparer's SSN if such SSN is entered
Line 2. Check this box if the organization answered “Yes” on
Part IV, line 31 or 32, and complete Schedule N (Form 990), Part
I or Part II.
on the paid preparer's block. Because Form 990 is a publicly
disclosable document, any information entered in this block will
be publicly disclosed (see Appendix D). For more information
Line 6. Enter the number of volunteers, full-time and part-time,
including volunteer members of the organization's governing
body, who provided volunteer services to the organization during
the reporting year. Organizations that don't keep track of this
information in their books and records or report this information
elsewhere (such as in annual reports or grant proposals) can
provide a reasonable estimate, and can use any reasonable
basis for determining this estimate. Organizations can, but aren't
required to, provide an explanation on Schedule O (Form 990) of
how this number was determined, the number of hours those
volunteers served during the tax year, and the types of services
or benefits provided by the organization's volunteers.
Note. A paid preparer may sign original or amended returns by
rubber stamp, mechanical device, or computer software
program.
Paid Preparer Authorization
On the last line of Part II, check “Yes” if the IRS can contact the
paid preparer who signed the return to discuss the return. This
authorization applies only to the individual whose signature
appears in the Paid Preparer Use Only section of Form 990. It
doesn’t apply to the firm, if any, shown in that section.
Line 7b. If the organization isn't required to file a Form 990-T for
the tax year, enter “0.” If the organization hasn't yet filed Form
990-T for the tax year, provide an estimate of the amount it
expects to report on Form 990-T, Part I, line 11, when it is filed.
By checking “Yes,” the organization is authorizing the IRS to
contact the paid preparer to answer any questions that arise
during the processing of the return. The organization is also
authorizing the paid preparer to:
Lines 8–19. If this is an initial return, or if the organization filed
Form 990-EZ or 990-PF in the prior year, leave the “Prior Year”
column blank. Use the same lines from the 2022 Form 990 to
Give the IRS any information missing from the return;
Call the IRS for information about processing the return; and
Respond to certain IRS notices about math errors, offsets,
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•
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and return preparation.
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2023 Instructions for Form 990
The organization isn't authorizing the paid preparer to bind
the organization to anything or otherwise represent the
organization before the IRS.
The authorization will automatically end no later than the due
date (excluding extensions) for filing of the organization's 2024
Form 990. If the organization wants to expand the paid
preparer's authorization or revoke it before it ends, see Pub. 947,
Practice Before the IRS and Power of Attorney.
facilities). If there were three or fewer of such activities, describe
each program service activity. The organization can report on
Schedule O (Form 990) additional activities that it considers of
comparable or greater importance, although smaller in terms of
expenses incurred (such as activities conducted with volunteer
labor).
Code. For the 2023 tax year, leave this blank.
Expenses and grants. For each program service reported
on lines 4a–4c, section 501(c)(3) and 501(c)(4) organizations
must enter total expenses included on Part IX, line 25, column
(B), and total grants and allocations (if any) included within such
total expenses that were reported on Part IX, lines 1–3, column
(B). For all other organizations, entering these amounts is
optional.
Check “No” if the IRS should contact the organization or its
principal officer listed in item F of the heading on page 1, rather
than the paid preparer.
Part III. Statement of Program Service
Accomplishments
Revenue. For each program service, section 501(c)(3) and
501(c)(4) organizations must report any revenue derived directly
from the activity, such as fees for services or from the sale of
goods that directly relate to the listed activity. This revenue
includes program service revenue reported on Part VIII, line 2,
column (A), and includes other amounts reported on Part VIII,
lines 3–11, as related or exempt function revenue. Also include
unrelated business income from a business that exploits an
exempt function, such as advertising in a journal. For this
purpose, charitable contributions and grants (including the
charitable contribution portion, if any, of membership dues)
reported on Part VIII, line 1, aren't considered revenue derived
from program services. For organizations other than section
501(c)(3) and 501(c)(4) organizations, entering these amounts is
optional.
Check the box in the heading of Part III if Schedule O (Form 990)
contains any information pertaining to this part. Part III requires
reporting regarding the organization's program service
accomplishments. A program service is an activity of an
organization that accomplishes its exempt purpose. Examples of
program service accomplishments can include:
A section 501(c)(3) organization's charitable activities such as
•
a hospital's provision of charity care under its charity care policy,
a college's provision of higher education to students under a
degree program, a disaster relief organization's provision of
grants or assistance to victims of a natural disaster, or a nursing
home's provision of rehabilitation services to residents;
A section 501(c)(5) labor union's conduct of collective
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bargaining on behalf of its members;
A section 501(c)(6) business league's conduct of meetings for
Description of program services. For each program
service reported, include the following.
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members to discuss business issues; or
Describe program service accomplishments through specific
•
A section 501(c)(7) social club's operation of recreational and
•
measurements such as clients served, days of care provided,
number of sessions or events held, or publications issued.
dining facilities for its members.
Don't report a fundraising activity as a program service
accomplishment unless it is substantially related to the
accomplishment of the organization's exempt purposes (other
than by raising funds).
Describe the activity's objective, for both this time period and
•
the longer-term goal, if the output is intangible, such as in a
research activity.
Give reasonable estimates for any statistical information if
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exact figures aren't readily available. Indicate that this
information is estimated.
Line 1. Describe the organization's mission as articulated in its
mission statement or as otherwise adopted by the organization's
governing body, if applicable. If the organization doesn’t have a
mission that has been adopted or ratified by its governing
body, enter “None.”
Be clear, concise, and complete in the description. Use
•
Schedule O (Form 990) if additional space is needed.
Donated services or use of equipment, materials, or
facilities. The organization can report the amount of any
donated services, or use of materials, equipment, or facilities it
received or used in connection with a specific program service,
on the lines for the narrative description of the appropriate
program service. However, don't include these amounts in
revenue, expenses, or grants reported on Part III, lines 4a–4e,
even if prepared according to generally accepted accounting
principles (GAAP).
Line 2. Answer “Yes” if the organization undertook any new
significant program services prior to the end of the tax year that
it didn’t describe in a prior year's Form 990 or 990-EZ. Describe
these items on Schedule O (Form 990). If any are among the
activities described on Form 990, Part III, line 4, the organization
can reference the detailed description on line 4. If the
organization has never filed a Form 990 or 990-EZ, answer “No.”
Public interest law firm. A public interest law firm exempt
under section 501(c)(3) or section 501(c)(4) must include a list of
all the cases in litigation or that have been litigated during the
year. For each case:
Line 3. Answer “Yes” if the organization made any significant
changes prior to the end of the tax year in how it conducts its
program services to further its exempt purposes, or if the
organization ceased conducting significant program services
that had been conducted in a prior year. Describe these items on
Schedule O (Form 990).
Describe the matter in dispute,
•
•
•
Explain how the litigation will benefit the public generally, and
Enter the fees sought and recovered.
An organization must report new, significant program
See Rev. Proc. 92-59, 1992-2 C.B. 411.
services, or significant changes in how it conducts
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Line 4d. Other program services. Enter on Schedule O (Form
990) the organization's other program services. The detailed
description required for the three largest program services need
not be provided for these other program services. Section 501(c)
(3) and 501(c)(4) organizations must report on line 4d their total
revenues reported on Part VIII, line 2, column (A), and their total
expenses (including grants) reported on Part IX, column (B), that
are attributable to these other program services, and must report
on Part III, line 4e, their total program service expenses from Part
III, lines 4a–4d. For all other organizations, entering these
program services on its Form 990, Part III, rather than in
a letter to IRS Exempt Organizations Determinations (“EO
Determinations”). EO Determinations no longer issues letters
confirming the tax-exempt status of organizations that report
such new services or significant changes.
Lines 4a–4c. All organizations must describe their
accomplishments for each of their three largest program
services, as measured by total expenses incurred (not including
donated services or the donated use of materials, equipment, or
11
2023 Instructions for Form 990
amounts is optional. The organization may report the
non-contribution portion of membership dues on line 4d or
allocate that portion among lines 4a–4c.
Line 5. Answer “Yes” only if the organization is a section 501(c)
(4), 501(c)(5), or 501(c)(6) organization that receives
membership dues, assessments, or similar amounts as defined
in Rev. Proc. 98-19, 1998-1 C.B. 547. Other organizations
answer “No.”
Part IV. Checklist of Required
Schedules
Line 6. Answer “Yes” if the organization maintained at any time
during the organization's tax year a donor advised fund or
another similar fund or account (that is, any account over which
the donor or a person appointed by the donor had advisory
privileges over the use or investment of any portion of the
account, but which isn't a donor advised fund). Examples of
other similar funds or accounts include, but aren't limited to, the
types of funds or accounts described as exceptions to the
Glossary definition of a donor advised fund.
For each “Yes” answer to a question on Form 990, Part IV,
complete the applicable schedule (or part or line of the
schedule). See the Glossary and instructions for the pertinent
schedules for definitions of terms and explanations that are
relevant to questions in this part.
The organization isn't required to answer “Yes” to a question
on Form 990, Part IV, or complete the schedule (or part of a
schedule) to which the question is directed if the organization
isn't required to provide any information in the schedule (or part
of the schedule). Thus, a minimum dollar threshold for reporting
information on a schedule may be relevant in determining
whether the organization must answer “Yes” on a question on
Form 990, Part IV.
Line 7. Answer “Yes” if the organization received or held any
conservation easement at any time during the year, regardless
of how the organization acquired the easement or whether a
charitable deduction was claimed by a donor of the easement.
Line 8. Answer “Yes” if, at any time during the year, the
organization maintained collections of works of art, historical
treasures, and other similar assets as described in ASC
958-360-45, whether or not the organization reported revenue
and assets related to such collections in its financial statements.
Line 1. Answer “Yes” if the organization is a section 501(c)(3)
organization that isn't a private foundation. Answer “Yes” if the
organization claims section 501(c)(3) status but hasn't yet filed a
Form 1023 or Form 1023-EZ application or received a
determination letter recognizing its section 501(c)(3) status. All
other organizations answer “No.”
Organizations that answer “Yes” on line 8 will often
answer “Yes” on Part IV, line 30, which addresses
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current-year noncash contributions of such items.
Line 2. Answer “Yes” if any of the following are satisfied.
A section 501(c)(3) organization met the 331/3% support test
•
Line 9. Answer “Yes” if, at any time during the organization's tax
year, the organization (1) had an escrow or custodial account;
(2) provided credit counseling services and/or debt
management plan services, such as credit repair or debt
negotiations; or (3) acted as an agent, trustee, custodian, or
other intermediary for contributions or other assets not included
in Part X.
of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi);
checks the box on Schedule A (Form 990), Part II, line 13, 16a,
or 16b; and received from any one contributor, during the year,
contributions of the greater of $5,000 (in money or property) or
2% of the amount on Form 990, Part VIII, line 1h. An organization
filing Schedule B (Form 990) can limit the contributors it reports
on Schedule B (Form 990) using this greater-than-$5,000/2%
threshold only if it checks the box on Schedule A (Form 990),
Part II, line 13, 16a, or 16b.
Line 10. Answer “Yes” if the organization, a related
organization, or an organization formed and maintained
exclusively to further one or more exempt purposes of the
organization (such as a foundation formed and maintained
exclusively to hold endowment funds to provide scholarships
and other funds for a college or university described within
section 501(c)(3)) held assets in donor-restricted endowment
funds, board designated (quasi), or endowment funds at any
time during the year, whether or not the organization follows ASC
958, or reports endowment funds in Part X, line 31. See the
instructions for Schedule D (Form 990), Part V, for the definitions
of these types of endowment funds.
A section 501(c)(3) organization didn’t meet the 331/3%
•
support test of the regulations under sections 509(a)(1) and
170(b)(1)(A)(vi), and received during the year contributions of
$5,000 or more from any one contributor.
A section 501(c)(7), 501(c)(8), or 501(c)(10) organization
•
received, during the year, (a) contributions of any amount for
use exclusively for religious, charitable, scientific, literary, or
educational purposes, or for the prevention of cruelty to children
or animals; or (b) contributions of $5,000 or more not exclusively
for such purposes from any one contributor.
Any other organization that received, during the year,
•
Line 11. Answer “Yes” if the organization reported an amount for
land, buildings, equipment, or leasehold improvements on Part
X, line 10; an amount for other liabilities on Part X, line 25; or if its
financial statements for the tax year included a footnote that
addresses its liability for uncertain tax positions under FIN 48
(FASB ASC 740) (including a statement that the organization
had no liability for uncertain tax positions). Also, answer “Yes” if
the organization reported in Part X an amount for
contributions of $5,000 or more from any one contributor.
Don't attach substitutes for Schedule B (Form 990).
!
CAUTION
Line 3. All organizations must answer this question, even if they
aren't subject to a prohibition against political campaign
activities. Answer “Yes” whether the activity was conducted
directly or indirectly through a disregarded entity or a joint
venture or other arrangement treated as a partnership for
federal income tax purposes and in which the organization is an
owner.
investments-other securities, investments-program related, or
other assets, on any of line 12,13, or 15, that is 5% or more of
the total assets reported on Part X, line 16.
Line 12a. Answer “Yes” if the organization received separate,
independent audited financial statements for the year for
which it is completing this return, or if the organization is
reporting for a short year that is included in, but not identical to,
the period for which the audited financial statements were
obtained. All other organizations answer “No.” Answer “No” if the
organization was included in consolidated audited financial
statements, unless the organization also received separate
audited financial statements.
Line 4. Complete only if the organization is a section 501(c)(3)
organization. Other organizations leave this line blank. Answer
“Yes” if the organization engaged in lobbying activities or had a
section 501(h) election in effect during the tax year. All section
501(c)(3) organizations that had a section 501(h) election in
effect during the tax year must complete Schedule C (Form 990),
Part II-A, whether or not they engaged in lobbying activities
during the tax year.
12
2023 Instructions for Form 990
An accountant's compilation or review of financial
statements isn't considered to be an audit and doesn't produce
audited financial statements. If the organization answers “No,”
but has prepared, for the year for which it is completing this
return, a financial statement that wasn't audited, the organization
can (but isn't required to) provide the reconciliations contained
on Schedule D (Form 990), Parts XI–XII.
Line 20a. Answer “Yes” if the organization, directly or indirectly
through a disregarded entity or joint venture treated as a
partnership for federal income tax purposes, operated one or
more hospital facilities at any time during the tax year. Except
in the case of a group return, don't include hospital facilities
operated by another organization that is treated as a separate
taxable or tax-exempt corporation for federal income tax
purposes. For group returns, answer “Yes” if any subordinate
included in the group return operated such a hospital facility.
Line 12b. Answer “Yes” if the organization was included in
consolidated, independent audited financial statements for
the year for which it is completing this return. All other
organizations answer “No.” Answer “Yes” if the organization is
reporting for a short year that is included in, but not identical to,
the period for which the audited financial statements were
obtained.
Line 20b. If the organization operated one or more hospital
facilities at any time during the tax year, then it must attach a
copy of its most recent audited financial statements. If the
organization was included in consolidated audited financial
statements but not separate audited financial statements for the
tax year, then it must attach a copy of the consolidated financial
statements, including details of consolidation (whether or not
audited).
Line 13. Answer “Yes” if the organization checked the box on
Schedule A (Form 990), Part I, line 2, indicating that it is a
school.
Line 21. Answer “Yes” if the organization reported on Part IX,
line 1, column (A), more than $5,000 of grants and other
assistance to any domestic organization, or to any domestic
government. For instance, answer “No” if the organization made
a $4,000 grant to each of two domestic organizations and no
other grants. Don't report grants or other assistance provided to
domestic organizations or domestic governments for the
purpose of providing grants or other assistance to designated
foreign organizations or foreign individuals.
Section 501(c)(21) trusts. Use Schedule I (Form 990),
Grants and Other Assistance to Organizations, Governments,
and Individuals in the United States, to report amounts over
$5,000 paid by the trust (1) to the Federal Black Lung Disability
Trust Fund pursuant to section 3(b)(3) of Public Law 95-227, or
(2) for insurance exclusively covering liabilities under sections
501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV). For details, see
Regulations section 1.501(c)(21)-1(d).
Lines 14a–14b. Answer “Yes” on line 14a if the organization
maintained an office, or had employees or agents, or
independent contractors outside the United States. Answer
“Yes” on line 14b if the organization had aggregate revenue or
expenses of more than $10,000 from or attributable to
grantmaking, fundraising activities, business, investment, and
program service activities outside the United States, or if the
book value of the organization's aggregate investments in foreign
partnerships, foreign corporations, and other foreign entities was
$100,000 or more at any time during the tax year.
In the case of indirect investments made through investment
entities, the extent to which revenue or expenses are taken into
account in determining whether the $10,000 threshold is
exceeded will depend upon whether the investment entity is
treated as a partnership or corporation for U.S. tax purposes. For
example, an organization with an interest in a foreign partnership
would need to take into account its share of the partnership's
revenue and expenses in determining whether the $10,000
threshold is exceeded. An organization with an investment in a
foreign corporation would need to take into account dividends it
receives from the corporation, but wouldn't need to take into
account or report any portion of the revenues, expenses, or
expenditures of a foreign corporation in which it holds an
investment, provided that the corporation is treated as a
separate corporation for U.S. tax purposes.
Line 22. Answer “Yes” if the organization reported on Part IX,
line 2, column (A), more than $5,000 of aggregate grants and
other assistance to or for domestic individuals. Don't report
grants or other assistance provided to or for domestic individuals
for the purpose of providing grants or other assistance to
designated foreign organizations or foreign individuals.
Section 501(c)(21) trusts. Use Schedule I (Form 990) to
report amounts over $5,000 paid by the black lung trust to or for
the benefit of miners or their beneficiaries other than amounts
included on line 21. Such payments could include direct
payment of medical bills, etc., authorized by the Act and
accident and health benefits for retired miners and their spouses
and dependents.
Line 15. Answer “Yes” if the organization reported on Part IX,
line 3, column (A), more than $5,000 of grants and other
assistance to any foreign organization or entity (including a
foreign government), or to a domestic organization or
domestic individual for the purpose of providing grants or other
assistance to a designated foreign organization or
organizations.
Line 23. Answer “Yes” if the organization:
Listed in Part VII a former officer, director, trustee, key
•
employee, or highest compensated employee; or
Line 16. Answer “Yes” if the organization reported on Part IX,
line 3, column (A), more than $5,000 of aggregate grants and
other assistance to foreign individuals, or to domestic
organizations or domestic individuals for the purpose of
providing grants or other assistance to a designated foreign
individual or individuals.
Reported for any person listed in Part VII more than $150,000
•
of reportable compensation and other compensation.
Also answer “Yes” if, under the circumstances described in
the instructions for Part VII, Section A, line 5, the filing
organization had knowledge that any person listed in Part VII,
Section A, received or accrued compensation from an
unrelated organization for services rendered to the filing
organization.
Lines 17–18. Answer “Yes” on line 17 if the total amount
reported for professional fundraising services in Part IX
(line 11e, plus the portion of the line 6 amount attributable to
professional fundraising services) exceeds $15,000.
Answer “Yes” on line 18 if the sum of the amounts reported on
lines 1c and 8a of Form 990, Part VIII, exceeds $15,000. An
organization that answers “No” should consider whether to
complete Schedule G (Form 990) in order to report its
fundraising activities or gaming activities for state or other
reporting purposes.
Line 24. Lines 24a–24d involve questions regarding
tax-exempt bonds. All organizations must answer “Yes” or “No”
on line 24a. Those organizations that answer “Yes” on line 24a
must also answer lines 24b through 24d and complete
Schedule K (Form 990), Supplemental Information on
Tax-Exempt Bonds. Those that answer “No” to line 24a can skip
to line 25a.
13
2023 Instructions for Form 990
Line 24a. Answer “Yes” and complete Schedule K (Form 990)
for each tax-exempt bond issued by or for the benefit of the
organization after December 31, 2002, (including refunding
bonds) with an outstanding principal amount of more than
$100,000 as of the last day of the organization's tax year. For this
purpose, bonds that have been legally defeased, and as a result
are no longer treated as a liability of the organization, aren't
considered outstanding.
these questions. The organization should review carefully the
instructions for Schedule L (Form 990), Parts II–IV, before
answering these questions and completing Schedule L (Form
990).
Line 29. The organization is required to answer “Yes” on line 29
if it received during the year more than $25,000 in fair market
value (FMV) of donations, gifts, grants, or other contributions
of property other than cash, regardless of the manner received
(such as for use in a charity auction). Don't include
Line 24b. For purposes of line 24b, the organization need not
include the following as investments of proceeds.
contributions of services or use of facilities.
Any investment of proceeds relating to a reasonably required
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Line 30. The organization is required to answer “Yes” on line 30
if during the year it received as a donation, gift, grant, or other
contribution:
reserve or replacement fund as described in section 148(d).
Any investment of proceeds properly characterized as
•
replacement proceeds as defined in Regulations section
1.148-1(c).
Any work of art, historical treasure, historical artifact,
•
scientific specimen, archaeological artifact, or similar asset,
including a fractional interest, regardless of amount or whether
the organization maintains collections of such items; or
Any investment of net proceeds relating to a refunding
•
escrow as defined in Regulations section 1.148-1(b).
Temporary period exceptions are described in section 148(c)
and Regulations section 1.148-2(e). For example, there is a
3-year temporary period applicable to proceeds spent on
expenditures for capital projects and a 13-month temporary
period applicable to proceeds spent on working capital
expenditures.
Any qualified conservation contributions regardless of
•
whether the contributor claimed a charitable contribution
deduction for such contribution.
See the instructions for Schedule M (Form 990), Noncash
Contributions, for definitions of these terms.
Line 24c. For purposes of line 24c, the organization is treated
as maintaining an escrow account if such account is maintained
by a trustee for tax-exempt bonds issued for the benefit of the
organization.
Lines 31–32. The organization must answer “Yes” if it
liquidated, terminated, dissolved, ceased operations, or
engaged in a significant disposition of net assets during the
year. See the instructions for Schedule N (Form 990) for
definitions and explanations of these terms and transactions or
events, and a description of articles of dissolution and other
information that must be filed with Form 990.
Note that a significant disposition of net assets may result
from either an expansion or contraction of operations.
Organizations that answer “Yes” on either of these questions
must also check the box in Part I, line 2, and complete
Schedule N (Form 990), Part I or Part II.
Line 24d. Answer “Yes” if the organization has received a
letter ruling that its obligations were issued on behalf of a state or
local governmental unit; meets the conditions for issuing
tax-exempt bonds as set forth in Rev. Rul. 63-20, 1963-1 C.B.
24 (see Rev. Proc. 82-26, 1982-1 C.B. 476); or is a constituted
authority organized by a state or local governmental unit to issue
tax-exempt bonds in order to further public purposes (see Rev.
Rul. 57-187, 1957-1 C.B. 65). Also answer “Yes” if the
organization has outstanding qualified scholarship funding
bonds under section 150(d) or bonds of a qualified volunteer fire
department under section 150(e).
Lines 33–34. The organization is required to report on
Schedule R (Form 990) certain information regarding ownership
or control of, and transactions with, its disregarded entities and
tax-exempt and taxable related organizations. An organization
that answers “Yes” on line 33 or 34 must enter its disregarded
entities and related organizations on Schedule R (Form 990) and
provide specified information regarding such organizations.
Report disregarded entities on Schedule R (Form 990), Part I;
related tax-exempt organizations on Part II; related organizations
taxable as partnerships on Part III; and any related organizations
taxable as C or S corporations or trusts on Part IV.
Lines 25a–25b. Complete lines 25a and 25b only if the
organization is a section 501(c)(3), 501(c)(4), or 501(c)(29)
organization. If the organization isn't described in section 501(c)
(3), 501(c)(4), or 501(c)(29), skip lines 25a and 25b and leave
them blank. On line 25b, answer “Yes” if the organization
became aware, prior to filing this return, that it engaged in an
excess benefit transaction with a disqualified person in a
prior year, and if the transaction hasn’t been reported on any of
the organization’s prior Forms 990 or 990-EZ.
An excess benefit transaction can have serious
Lines 35a–35b. If an organization was a controlled entity of
the filing organization under section 512(b)(13) during the tax
year, the filing organization must answer “Yes” on line 35a. It
must answer “Yes” on line 35b and complete Schedule R (Form
990), Part V, line 2, if it either (1) received or accrued from its
controlled entity any interest, annuities, royalties, or rent,
regardless of amount, during the tax year; or (2) engaged in
another type of transaction (see Schedule R (Form 990) for a list
of transactions) with the controlled entity, if the amounts involved
during the tax year for that type of transaction exceeded
$50,000. See the Glossary and the Instructions for Schedule R
(Form 990).
implications for the disqualified person that entered
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into the transaction with the organization, any
organization managers that knowingly approved of the
transaction, and the organization itself. A section 501(c)(3),
501(c)(4), or 501(c)(29) organization that becomes aware that it
may have engaged in an excess benefit transaction should
obtain competent advice regarding section 4958, pursue
correction of any excess benefit, and take other appropriate
steps to protect its interests with regard to such transaction and
the potential impact it could have on the organization's continued
exempt status. See Appendix G, later, for a discussion of section
4958; Schedule L (Form 990), Part I; and Form 4720, Schedule I,
regarding reporting of excess benefit transactions.
Controlled entities are a subset of related organizations.
Answer “No” to line 35a if the organization had no related
organizations during the tax year. If the answer to line 35a is
“No,” leave line 35b blank.
Lines 26–28. Lines 26 through 28 ask questions about loans
and other receivables and payables between the organization
and certain interested persons, and certain direct and indirect
business transactions between the organization and governance
and management officials of the organization or their associated
businesses or family members. All organizations must answer
Line 36. Complete line 36 only if the organization is a section
501(c)(3) organization and engaged in a transaction over
$50,000 during the tax year with a related organization that
was tax exempt under a section other than section 501(c)(3). All
14
2023 Instructions for Form 990
other organizations leave this line blank and go to line 37. See
the Instructions for Schedule R (Form 990) for more information
on what needs to be reported on Schedule R (Form 990), Part V,
line 2.
agents of the filing organization, including common paymasters
and payroll agents, for the calendar year ending with or within
the organization's tax year. Enter -0- if the organization didn't file
any such forms for the calendar year ending with or within its tax
year, or if the organization is filing for a short year and no
calendar year ended within its tax year.
Line 37. Answer “Yes” if, at any time during the year, the
organization conducted more than 5% of its activities, measured
by total gross revenue for the tax year or total assets of the
organization at the end of its tax year, whichever is greater,
through an unrelated organization that is treated as a
partnership for federal income tax purposes, and in which the
organization was a partner or member at any time during the tax
year. The 5% test is applied on a partnership-by-partnership
basis, although direct ownership by the organization and indirect
ownership through disregarded entities or tiered entities treated
as partnerships are aggregated for this purpose. The
Line 1b. Form W-2G pertains to certain gambling winnings.
Line 1c. For more information on backup withholding for
missing or incorrect names or taxpayer identification numbers,
see Pub. 1281, Backup Withholding for Missing and Incorrect
Name/TIN(s). If backup withholding rules didn't apply to the
organization because it didn't make a reportable payment to a
vendor or provide reportable gaming (gambling) winnings to a
prize winner, then leave line 1c blank.
Line 2a. Include on this line the number of the organization's
employees (not the number of Forms W-2) reported on a Form
W-3, Transmittal of Wage and Tax Statements, by both the filing
organization and reporting agents of the filing organization,
including common paymasters and payroll agents, for the
calendar year ending with or within the filing organization's tax
year. Enter -0- if the organization didn't have any employees
during the calendar year ending with or within its tax year, or if
the organization is filing for a short year and no calendar year
ended within its tax year.
organization need not report on Schedule R (Form 990), Part VI,
either (1) the conduct of activities through an organization
treated as a taxable or tax-exempt corporation for federal income
tax purposes, or (2) unrelated partnerships that meet both of the
following conditions.
95% or more of the filing organization's gross revenue from
•
the partnership for the partnership's tax year ending with or
within the organization's tax year is described in sections 512(b)
(1), 512(b)(2), 512(b)(3), and 512(b)(5), such as interest,
dividends, royalties, rents, and capital gains (including unrelated
debt-financed income).
Line 2b. If the organization reported at least one employee on
line 2a, answer whether the organization or reporting agents of
the organization filed all required federal employment tax returns
(which include Form 940, Employer's Annual Federal
The primary purpose of the filing organization's investment in
•
the partnership is the production of income or appreciation of
property and not the conduct of a section 501(c)(3) charitable
activity such as program-related investing.
Unemployment (FUTA) Tax Return; and Form 941, Employer's
QUARTERLY Federal Tax Return) relating to such employees.
For more information, see the discussion of employment taxes in
Pub. 557. The organization may leave line 2b blank if it didn't
report any employees on line 2a.
Line 38. Answer “Yes” if the organization completed
Schedule O (Form 990).
Schedule O (Form 990) must be completed and filed by
all organizations that file Form 990. All filers must
provide narrative responses to certain questions (for
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Line 3a. Check “Yes” on line 3a if the organization's total gross
income from all of its unrelated trades or businesses is
$1,000 or more for the tax year. See Pub. 598, Tax on Unrelated
Business Income of Exempt Organizations, for a description of
unrelated business income and the Form 990-T filing
requirements for organizations having such income.
example, Part VI, lines 11b and 19) on Schedule O (Form 990).
Certain filers must provide narrative responses to other
questions (for example, Part III, line 4d; Part V, line 3b; Part VI,
lines 2–7b, 9, 12c, and 15a–b, for “Yes” responses; Part VI, lines
8a–b and 10b, for “No” responses; and Part XII, line 3b, for a
“No” response). All filers can supplement their answers to other
Form 990 questions on Schedule O (Form 990).
Neither Form 990-T nor Form 990 is a substitute for the
other. Report on Form 990 items of income and expense
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CAUTION
that are also required to be reported on Form 990-T
Part V. Statements Regarding Other
IRS Filings and Tax Compliance
when the organization is required to file both forms.
Line 3b. Answer “Yes” if the organization checked “Yes” on
line 3a and filed Form 990-T by the time this Form 990 is filed.
Check “No” if the organization answered “Yes” on line 3a but
hasn’t filed Form 990-T by the time this Form 990 is filed, even if
the organization has applied for an extension to file Form 990-T.
If “No” on line 3b, provide an explanation on Schedule O (Form
990).
Check the box in the heading of Part V if Schedule O (Form 990)
contains any information pertaining to this part.
See the Glossary for definitions of terms used in the
questions in this section.
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Some questions in this part pertain to other IRS forms.
Forms are available by downloading from the IRS
All tax-exempt organizations must pay estimated taxes
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for their unrelated business income if they expect their
!
CAUTION
tax liability to be $500 or more.
Forms and Publications To File or Use.
Line 4a. Answer “Yes” if either (1) or (2) below applies.
Line 1a. The organization must use Form 1096, Annual
Summary and Transmittal of U.S. Information Returns, to
transmit to the IRS paper Forms 1099, 1098, 5498, and W-2G,
which are information returns reporting certain amounts paid or
received by the organization. Report all such returns filed for the
calendar year ending with or within the organization's tax year. If
the organization transmits any of these forms electronically, add
this number to the total reported. Examples of payments
requiring Form 1099 reporting include certain payments to
independent contractors for services rendered. Report on this
line Forms 1099, 1098, 5498, and W-2G filed by reporting
1. At any time during the calendar year ending with or within
the organization's tax year, the organization had an interest in,
or signature or other authority over, a financial account in a
foreign country (such as a bank account, securities account, or
other financial account); and
a. The combined value of all such accounts was more than
$10,000 at any time during the calendar year; and
b. The accounts weren't with a U.S. military banking facility
operated by a U.S. financial institution.
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2023 Instructions for Form 990
2. The organization owns more than 50% of the stock in any
corporation that would answer “Yes” to item 1 above.
Example. A donor gives a charity $100 in consideration for a
concert ticket valued at $40 (a quid pro quo contribution). In
this example, $60 would be deductible. Because the donor's
payment exceeds $75, the organization must furnish a
If “Yes,” electronically file FinCEN Form 114, Report of Foreign
Bank and Financial Accounts (FBAR), with the Department of
the Treasury using FinCEN's BSA E-Filing System. Because
FinCEN Form 114 isn't a tax form, don't file it with Form 990.
disclosure statement even though the taxpayer's deductible
amount doesn't exceed $75. Separate payments of $75 or less
made at different times of the year for separate fundraising
events won't be aggregated for purposes of the $75 threshold.
Line 4b. Enter the name of each foreign country in which a
foreign account described on line 4a is located. Use Schedule O
(Form 990) if more space is needed.
See section 6113 and Notice 88-120, 1988-2 C.B. 454.
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Lines 7c and 7d. If the organization is required to file Form
8282, Donee Information Return, to report information to the IRS
and to donors about dispositions of certain donated property
made within 3 years after the donor contributed the property, it
must answer “Yes” and indicate the number of Forms 8282 filed.
Lines 7e and 7f. If, in connection with a transfer to or for the
use of the organization, the organization directly or indirectly
pays premiums on any personal benefit contract, or there is an
understanding or expectation that any person will directly or
indirectly pay such premiums, the organization must report on
Form 8870, Information Return for Transfers Associated With
Certain Personal Benefit Contracts, the premiums it paid, and
the premiums paid by others but treated as paid by the
organization. The organization must report and pay an excise
tax, equal to premiums paid, on Form 4720. A personal benefit
contract is generally any life insurance, annuity, or endowment
contract that benefits, directly or indirectly, the transferor, a
member of the transferor's family, or any other person
designated by the transferor (other than an organization
described in section 170(c)).
Line 7g. Form 8899, Notice of Income From Donated
Intellectual Property, must be filed by certain organizations that
received a charitable gift of qualified intellectual property that
produces net income. The organization should check “Yes” if it
provided all required Forms 8899 for the year for net income
produced by donated qualified intellectual property. Qualified
intellectual property is any patent, copyright (other than certain
self-created copyrights), trademark, trade name, trade secret,
know-how, software (other than certain “canned” or
Line 5. Answer “Yes” on line 5a if the organization was party to a
prohibited tax shelter transaction as described in section
4965(e) at any time during the organization's tax year. A
prohibited tax shelter transaction is any listed transaction, within
the meaning of section 6707A(c)(2), and any prohibited
reportable transaction. A prohibited reportable transaction is a
confidential transaction within the meaning of Regulations
section 1.6011-4(b)(3), and a transaction with contractual
protection within the meaning of Regulations section 1.6011-4(b)
(4). For more information on prohibited tax shelter transactions,
An organization that files Form 990 (other than a section 527
political organization) and that is a party to a prohibited tax
shelter transaction must file Form 8886-T, Disclosure by
Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction,
and may also have to file Form 4720, Return of Certain Excise
Taxes Under Chapters 41 and 42 of the Internal Revenue Code,
and pay an excise tax imposed by section 4965. For more
information, see the instructions for Forms 8886-T and 4720.
Line 6. Answer “Yes” on line 6a only if the organization has
annual gross receipts that are normally greater than $100,000
and if it solicited contributions not deductible under section 170
during the tax year.
Any fundraising solicitation (including solicitation of member
dues) by or on behalf of any section 501(c) or 527 organization
that isn't eligible to receive contributions deductible as
charitable contributions for federal income tax purposes must
include an explicit statement that contributions or gifts to it aren't
deductible as charitable contributions. The statement must be in
an easily recognizable format whether the solicitation is made in
written or printed form, by television or radio, or by telephone.
Failure to disclose that contributions aren't deductible could
result in a penalty of $1,000 for each day on which a failure
occurs. The maximum penalty for failures by any organization,
during any calendar year, shall not exceed $10,000. See section
6710 for details. In cases where the failure to make the
disclosure is due to intentional disregard of the law, more severe
penalties apply. No penalty will be imposed if the failure is due to
reasonable cause.
“off-the-shelf” software or self-created software), or similar
property, or applications or registrations of such property. If the
organization didn't receive a contribution of qualified intellectual
property, leave line 7g blank.
Line 7h. A donor of (1) a motor vehicle for use on public
roads, (2) a boat, or (3) an airplane can't claim a charitable
contribution deduction in excess of $500 unless the donee
organization provides the donor with a Form 1098-C,
Contributions of Motor Vehicles, Boats, and Airplanes, for the
donation (or a written acknowledgment with the same
information). See the instructions for Form 1098-C for more
information. If the organization didn't receive a contribution of a
car, boat, airplane, or other vehicle, leave line 7h blank.
All organizations that qualify under section 170(c) to receive
contributions that are deductible as charitable contributions for
federal income tax purposes (such as domestic section 501(c)
(3) organizations other than organizations that test for public
safety) should answer “No” on line 6a.
Line 8. A sponsoring organization of a donor advised fund
must answer “Yes” if any one of its donor advised funds had
excess business holdings at any time during the organization's
tax year. All other organizations should leave this line blank and
go to line 9. If “Yes,” see the instructions for Schedule C of Form
4720 to determine whether the organization is subject to the
excess business holdings tax under section 4943 and is required
to file Form 4720.
Line 7. Line 7 is directed only to organizations that can receive
deductible charitable contributions under section 170(c). See
Pub. 526, Charitable Contributions, for a description of such
organizations. All other organizations should leave lines 7a
through 7h blank and go to line 8.
Lines 7a and 7b. If a donor makes a payment in excess of
$75 partly as a contribution and partly in consideration for goods
or services provided by the organization, the organization must
generally notify the donor of the value of goods and services
provided.
For purposes of the excise tax on excess business holdings
under section 4943, a donor advised fund is treated as a private
foundation.
Line 9. Line 9 is required to be completed by sponsoring
organizations maintaining a donor advised fund. All other
organizations can leave this line blank and go to line 10.
16
2023 Instructions for Form 990
Line 9a. Answer “Yes” if the organization made any taxable
distributions under section 4966 during the organization's tax
year. If “Yes,” complete and file Form 4720, Schedule K, to
calculate and pay the tax.
Line 10a. Enter the amount of initiation fees, capital
contributions, and unusual amounts of income included in Part
VIII. Statement of Revenue, line 12, Total revenue, but not
included in the definition of gross receipts for section 501(c)(7)
exemption purposes as discussed in Appendix C. However, if the
organization is a college fraternity or sorority that charges
membership initiation fees but not annual dues, don't include
such initiation fees.
Line 10b. Enter the amount of gross receipts included in
Part VIII. Statement of Revenue, line 12, Total Revenue, derived
from the general public for use of the organization's facilities, that
is, from persons other than members or their spouses,
dependents, or guests.
Under section 4966, a taxable distribution includes a
distribution from a donor advised fund to an individual. A
taxable distribution also includes a distribution from a donor
advised fund to an estate, partnership, association, company, or
corporation unless:
The distribution is for a charitable purpose (for example, a
•
purpose described in section 170(c)(2)(B)), and
The organization exercises expenditure responsibility for the
•
distribution.
The above doesn't apply to distributions to any organization
Include the amount entered on line 10b of Form 990 on
described in section 170(b)(1)(A) (other than a disqualified
supporting organization, defined in section 4966(d)(4)), to the
sponsoring organization of such donor advised fund, or to any
other donor advised fund.
the club's Form 990-T if required to be filed. Investment
income earned by a section 501(c)(7) organization isn't
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tax-exempt income unless set aside for the following purposes:
religious, charitable, scientific, literary, educational, or prevention
of cruelty to children or animals.
Line 9b. Answer “Yes” if the organization made a distribution
from a donor advised fund to a donor, donor advisor, or
related person during the organization's tax year. For purposes
of this question, a related person is any family member of the
donor or donor advisor and any 35% controlled entity (as
defined in section 4958(f)) of the donor or donor advisor. If “Yes,”
complete and file Form 4720 , Schedule L (Form 990).
If the combined amount of an organization's gross investment
income, and other gross income from unrelated trades or
businesses, is $1,000 or more for the tax year, the organization
must report the investment income, and other unrelated
business income, on Form 990-T.
If an organization makes a distribution from a
Line 11. Answer lines 11a and 11b only if the organization is
donor advised fund resulting from the advice of a
exempt under section 501(c)(12).
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CAUTION
donor, donor advisor, family member, or 35%
One of the requirements that an organization must meet to
qualify under section 501(c)(12) is that at least 85% of its gross
income consists of amounts collected from members for the sole
purpose of meeting losses and expenses. For purposes of
section 501(c)(12), the term “gross income” means gross
receipts without reduction for any cost of goods sold.
Member income for purposes of this 85% Member Income
Test is income derived directly from the members to pay for
services that form the basis for tax exemption under section
501(c)(12), and includes payments for purchases of water,
electricity, and telephone service. Member income doesn't
include interest income, gains from asset or security sales, or
dividends from another cooperative (unless that cooperative is
also a member).
controlled entity of any of these persons, which
distribution directly or indirectly provides a more than
incidental benefit to one of such persons, section 4967
imposes a tax on (1) the person upon whose advice the
distribution was made, (2) the beneficiary of the
distribution, and (3) the fund manager for knowingly
agreeing to make the distribution. The persons liable for
the section 4967 tax must file Form 4720 to pay the tax. No
section 4967 tax will be imposed on a distribution if a tax
has been imposed for the distribution under section 4958.
If an organization makes a distribution from a donor
advised fund to a donor, donor advisor, family member, or
35% controlled entity of these persons, then the
transaction might be a section 4958 transaction. Such
transactions include any grant, loan, compensation, or
other similar payment to these persons, as well as any
other payment resulting in excess benefit.
Members are those individuals or entities that have the right
to elect the governing board of the organization, are involved in
the operations of the organization, and receive a share of its
excess operating revenues.
When calculating the member income percentage to
determine whether an organization meets the 85% Member
Income Test, the organization may exclude specific sources of
income from both the numerator and the denominator of the
fraction. For example, if an organization is a corporation and it
receives an amount that qualifies as a contribution to capital
under section 118, then that amount isn't included in either the
numerator or the denominator because it isn't considered to be
income for tax purposes. However, the payment must meet the
following conditions (see Rev. Rul. 93-16, 1993-1 C.B. 26) to
qualify as a contribution to capital.
Line 10. Answer lines 10a and 10b only if the organization is
exempt under section 501(c)(7).
A section 501(c)(7) organization isn't exempt from
income tax if any written policy statement, including the
governing instrument and bylaws, allows discrimination
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on the basis of race, color, or religion.
However, section 501(i) allows social clubs to retain their
exemption under section 501(c)(7) even though their
membership is limited (in writing) to members of a particular
religion if the social club:
It must become a permanent part of the organization’s
•
working capital.
1. Is an auxiliary of a fraternal beneficiary society exempt
It must not be compensation for specific quantifiable services.
It must be bargained for.
•
•
•
•
under section 501(c)(8); and
2. Limits its membership to the members of a particular
religion, or the membership limitation is:
It must benefit the organization commensurately with its value.
It must ordinarily be used in or contribute to the production of
a. A good-faith attempt to further the teachings or principles
additional income.
of that religion, and
Gross income for mutual or cooperative electric companies is
figured by excluding any income received or accrued from the
following.
b. Not intended to exclude individuals of a particular race or
color.
1. Qualified pole rentals.
17
2023 Instructions for Form 990
2. Any provision or sale of electric energy transmission
services or ancillary services if the services are provided on a
nondiscriminatory, open-access basis under an open-access
transmission tariff; approved or accepted by the Federal Energy
Regulatory Commission (FERC) or under an independent
transmission provider agreement approved or accepted by
FERC (other than income received or accrued directly or
indirectly from a member).
3. The provision or sale of electric energy distribution
services or ancillary services, if the services are provided on a
nondiscriminatory, open-access basis to distribute electric
energy not owned by the mutual or electric cooperative
company:
a. To end-users who are served by distribution facilities not
owned by the company or any of its members (other than income
received or accrued directly or indirectly from a member), or
b. Generated by a generation facility not owned or leased by
the company or any of its members and which is directly
connected to distribution facilities owned by such company or
any of its members (other than income received or accrued
directly or indirectly from a member).
Line 13a. If the organization is licensed to issue qualified
health plans in more than one state, check “Yes.” If the
organization is licensed to issue qualified health plans in only
one state, check “No.” In either case, report on Schedule O
(Form 990) each state in which the organization is licensed to
issue qualified health plans, the dollar amount of reserves each
state requires the organization to maintain, and the dollar
amount of reserves the organization maintains and reports to
each state.
Line 13b. Report the highest dollar amount of reserves the
organization is required to maintain by any of the states in which
the organization is licensed to issue qualified health plans.
Line 13c. Report the highest dollar amount of reserves the
organization maintains on hand and reports to a state in which
the organization is licensed to issue qualified health plans.
Line 14a. Answer “Yes” on line 14a if the organization
received any payments during the year for indoor tanning
services. “Indoor tanning services” are services employing any
electronic product designed to incorporate one or more
ultraviolet lamps and intended for the irradiation of an individual
by ultraviolet radiation, with wavelengths in air between 200 and
400 nanometers, to induce skin tanning.
Line 14b. If an organization received a payment for services
for indoor tanning services during the year, it must collect from
the recipient of the services a tax equal to 10% of the amount
paid for such service, whether paid by insurance or otherwise,
and remit such tax quarterly to the IRS by filing Form 720,
Quarterly Federal Excise Tax Return. If the organization filed
Form 720 during the year, it should check “Yes” on line 14b. If it
answers “No” on line 14b, it should explain on Schedule O (Form
990) why it didn't file Form 720.
Line 15. See the instructions for Form 4720, Schedule N, to
determine if you paid to any covered employee more than $1
million in remuneration or paid an excess parachute payment
during the year. Remuneration paid to a covered employee
includes any remuneration paid by a related organization.
Line 16. Line 16 applies to private colleges and universities
subject to the excise tax on net investment income under section
4968. All other organizations, including state colleges and
universities described in the first sentence of section 511(a)(2)
(B), aren’t subject to this tax, and therefore check the “No” box
on line 16, and go to Part VI. A private college or university will
be subject to the excise tax on net investment income under
section 4968 only if four threshold tests are met.
4. From any nuclear decommissioning transaction.
5. From any asset exchange or conversion transaction.
For a mutual or cooperative telephone company, gross
income doesn't include amounts received or accrued either from
another telephone company for completing long distance calls to
or from or between the telephone company's members, from
qualified pole rentals, from the sale of display listings in a
directory furnished to the telephone company's members, or
from prepayment of a loan under section 306A, section 306B, or
section 311 of the Rural Electrification Act of 1936 (as in effect
on January 1, 1987).
If the calculated member income percentage for a
section 501(c)(12) organization is less than 85% for the
tax year, then the organization fails to qualify for
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tax-exempt status for that year, and it must file Form 1120, U.S.
Corporation Income Tax Return, in lieu of Form 990 or 990-EZ for
the year. However, failing the 85% Member Income Test in one
year doesn't cause permanent loss of tax-exempt status under
section 501(c)(12). So long as the organization's member
income percentage is equal to or greater than 85% in any
subsequent tax year, the organization may file Form 990 or
990-EZ for that year, even if Form 1120 was filed in a prior year.
1. The organization must be an eligible educational
institution as defined in section 25A(f)(2). Section 25A(f)(2)
defines “eligible educational institution” as an institution that is
described in section 481 of the Higher Education Act of 1965 (20
U.S.C. 1088), as in effect on August 5, 1997, and is eligible to
participate in a program under title IV of such Act (20 USCS
sections 1070 et seq.).
2. The organization must have had at least 500
tuition-paying students, based upon a daily average student
count, during the preceding tax year.
Line 12. All organizations that aren't section 4947(a)(1) trusts
are to leave line 12 blank.
If a section 4947(a)(1) nonexempt charitable trust has no
taxable income under subtitle A, its filing of Form 990 can be
used to meet its income tax return filing requirement under
section 6012. Such a trust must, if it answers “Yes” on line 12a,
report its tax-exempt interest received or accrued (if reporting
under the accrual method) during the tax year on line 12b.
3. More than 50% of those students must have been located
Section 4947(a)(1) trusts must complete all sections of the
Form 990 and schedules that section 501(c)(3) organizations
must complete. All references to a section 501(c)(3) organization
on the Form 990, schedules, and instructions shall include a
section 4947(a)(1) trust (for instance, such a trust must complete
Schedule A (Form 990), unless expressly excepted).
in the United States.
4. The aggregate FMV, at the end of the preceding tax year,
of the assets not used directly in carrying out the organization’s
exempt purpose, held by the organization and related
organizations, must be at least $500,000 per student.
Line 13. Answer lines 13a, 13b, and 13c only if the organization
has received a loan or grant under the Department of Health and
Human Services CO-OP program.
Use the worksheet below to determine whether the
organization meets the last three threshold tests above. Save
this worksheet with the organization’s records.
18
2023 Instructions for Form 990
Threshold Tests for Section 4968
1. Enter the daily average number of FTE tuition-paying students in all locations. If fewer than 500, check “No” on line 16. If 500 or more, go to line 2.
2. Enter the daily average number of FTE tuition-paying students in the United States.
3. Divide line 2 by line 1. If 50% or less, check “No” on line 16. If greater than 50%, go to line 4.
4. Enter the FMV of assets held by the organization but not used directly in carrying out the
$
$
organization’s exempt purpose.
5. Enter the FMV of assets held by one or more related organizations.
6. Total. Add lines 4 and 5.
$
$
7. Divide line 6 by the daily average number of FTE students. If less than $500,000, check “No” on line 16. If $500,000 or more, check “Yes” on
line 16.
When calculating the FMV of such assets of a related
organization, exclude (1) assets of any related organization to
the extent that such assets are taken into account with respect to
another educational institution; and (2) unless the related
organization is controlled by the educational institution, or unless
the related organization is a supporting organization of the
educational institution, omit assets that are not intended, or are
not available, for the use or benefit of the educational institution.
Worksheet line 1. To calculate the number of tuition-paying
students during the preceding tax year (including for purposes of
determining the number of students at a particular location),
enter the daily average number of full-time equivalent (FTE)
tuition-paying students attending the institution, taking part-time
tuition-paying students into account on a full-time student
equivalent basis.
If worksheet line 1 is fewer than 500, the organization is not
subject to the section 4968 excise tax on net investment income.
The organization should answer “No” on line 16. If worksheet
line 1 is 500 or more, continue to line 2.
Worksheet line 6. Add lines 4 and 5.
Worksheet line 7. Divide line 6 by the daily average number
of FTE students.
Worksheet line 2. Enter the number of FTE tuition-paying
students included on line 1 who were located in the United
States during the preceding tax year and enter it on line 2.
Worksheet line 3. Divide line 2 by line 1. If 50% or less, the
organization is not subject to the section 4968 excise tax and the
organization should answer “No” on line 16. If greater than 50%,
continue to line 4.
Worksheet line 4. Calculate the FMV of the organization’s
assets not used directly in carrying out the organization’s exempt
purpose as of the end of the preceding tax year. To determine
which assets are used directly in carrying out the organization’s
exempt purpose, under these instructions, follow the principles of
section 4942(e)(1)(A) and Regulations section 53.4942(a)-2(c)
(3). To determine the FMV of the assets, use any reasonable
method as long as such method is consistently used. Under
these instructions, the principles of Regulations section
53.4942(a)-2(c)(4) will be considered to provide a reasonable
method.
If line 7 is less than $500,000, the organization is not subject
to the section 4968 excise tax on net investment income and the
organization should answer “No” on line 16. If line 7 is $500,000
or more, the organization is subject to the section 4968 excise
tax on net investment income and the organization should
answer “Yes” on line 16.
Line 17. Did the trust, or any disqualified or other person
engage in any activities that would result in the imposition of an
excise tax under section 4951, 4952, or 4953? See the
Instructions for Form 6069. If “Yes,” complete Form 6069.
Part VI. Governance, Management,
and Disclosure
Check the box in the heading of Part VI if Schedule O (Form 990)
contains any information pertaining to this part. All organizations
must complete Part VI. Use Schedule O (Form 990) to provide
required supplemental information as described in this part, and
to provide any additional information that the organization
considers relevant to this part.
Assets held for the production of income or for
investment aren't considered to be used directly for
!
Part VI requests information regarding an organization's
governing body and management, governance policies, and
disclosure practices. Although federal tax law generally doesn't
mandate particular management structures, operational policies,
or administrative practices, every organization is required to
answer each question in Part VI. For example, all organizations
must answer lines 11a and 11b, which ask about the
organization's process, if any, it uses to review Form 990, even
though the governing body isn't required by federal tax law to
review Form 990.
Even though the information on policies and procedures
requested in Section B generally isn't required under the Code,
the IRS considers such policies and procedures to generally
improve tax compliance. The absence of appropriate policies
and procedures can lead to opportunities for excess benefit
transactions, inurement, operation for nonexempt purposes, or
other activities inconsistent with exempt status. Whether a
particular policy, procedure, or practice should be adopted by an
organization depends on the organization's size, type, and
culture. Accordingly, it is important that each organization
consider the governance policies and practices that are most
appropriate for that organization in assuring sound operations
and compliance with tax law. For more governance information
CAUTION
charitable functions even though the income from the
assets is used for charitable functions. It is a factual question
whether an asset is held for the production of income or for
investment rather than used directly by the organization for
charitable purposes. For example, an office building used to
provide offices for employees engaged in managing endowment
funds for the organization isn't considered an asset used for
charitable purposes.
Worksheet line 5. Calculate the FMV of the assets of related
organizations (as defined below) using the FMV of assets as of
the end of the preceding tax year that ends with or within the
preceding tax year of the organization.
Section 4968 defines “related organization” to include only:
Organizations that control or are controlled by the educational
•
institution,
Organizations that are controlled by one or more of the same
•
persons who control the educational institution,
Supported organizations (as defined in section 509(f)(3)), and
Supporting organizations described in section 509(a)(3) that
•
•
support the educational institution during the tax year.
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2023 Instructions for Form 990
4. Neither the member, nor any family member of the
member, was involved in a transaction with a taxable or
tax-exempt related organization (whether directly or indirectly
through affiliation with another organization) of a type and
amount that would be reportable on Schedule L (Form 990) if
required to be filed by the related organization.
Lifecycle of an Exempt Organization.
Section A. Governing Body and Management
Line 1a. The governing body is the group of one or more
persons authorized under state law to make governance
decisions on behalf of the organization and its shareholders or
members, if applicable. The governing body is, generally
speaking, the board of directors (sometimes referred to as
“board of trustees”) of a corporation or association, or the
trustee or trustees of a trust (sometimes referred to as the “board
of trustees”).
Enter the number, as of the end of the organization's tax year,
of members of the governing body of the organization with
power to vote on all matters that come before the governing body
(other than when a conflict of interest disqualifies the member
from voting). If members of the governing body don't all have the
same voting rights, explain material differences on Schedule O
(Form 990).
If the organization's governing body or governing documents
delegated authority to act on its behalf to an executive
committee or similar committee with broad authority to act on
behalf of the governing body, and the committee held such
authority at any time during the organization's tax year, describe
on Schedule O (Form 990) the composition of the committee,
whether any of the committee's members aren't on the governing
body, and the scope of the committee's authority. The
organization need not describe on Schedule O (Form 990)
delegations of authority that are limited in scope to particular
areas or matters, such as delegations to an audit committee,
investment committee, or compensation committee of the
governing body.
Note. The independence standard for purposes of Part VI isn't
the same as the “absence of conflict of interest” standard for
purposes of the rebuttable presumption under Regulations
section 53.4958-6, which focuses on conflicts with respect to a
particular transaction.
A member of the governing body isn't considered to lack
independence merely because of the following circumstances.
1. The member is a donor to the organization, regardless of
the amount of the contribution.
2. Religious exception: The member has taken a bona fide
vow of poverty and either (a) receives compensation as an
agent of a religious order or a section 501(d) religious or
apostolic organization, but only under circumstances in which
the member doesn't receive taxable income (see Rev. Rul.
77-290, 1977-2 C.B. 26; and Rev. Rul. 80-332, 1980-2 C.B. 34);
or (b) belongs to a religious order that receives sponsorship or
payments from the organization or a related organization that
don't constitute taxable income to the member.
3. The member receives financial benefits from the
organization solely in the capacity of being a member of the
charitable or other class served by the organization in the
exercise of its exempt function, such as being a member of a
section 501(c)(6) organization, so long as the financial benefits
comply with the organization's terms of membership.
Example 1. B is a voting member of the organization's board
of directors. B is also a partner with a profits and capital interest
greater than 35% in a law firm, C, that charged $120,000 to the
organization for legal services in a court case. The transaction
between C and the organization must be reported on Schedule L
(Form 990) because it is a transaction between the organization
and an entity of which B is a more-than-35% owner, and
because the payment to C from the organization exceeded
$100,000 (see the instructions for Schedule L (Form 990), Part
IV, regarding both factors). Accordingly, B isn't an independent
member of the governing body because the $120,000 payment
must be reported on Schedule L (Form 990) as an indirect
business transaction with B. If B were an associate attorney (an
employee) rather than a partner with a greater-than-35%
interest, and not an officer, director, trustee, or owner of the law
firm, the transaction wouldn't affect B's status as an independent
member of the organization's governing body.
Example. A voluntary employees' beneficiary association
(VEBA) is a trust under state law. Bank B is the sole trustee of
the trust. In completing line 1a, the VEBA will report one voting
member of the governing body.
Line 1b. Enter the number of independent voting members
of the governing body as of the end of the organization's tax
year. A member of the governing body is considered
“independent” only if all four of the following circumstances
applied at all times during the organization's tax year.
1. The member wasn't compensated as an officer or other
employee of the organization or of a related organization (see
the Instructions for Schedule R (Form 990)) except as provided
in the religious exception discussed below. Nor was the member
compensated by an unrelated organization or individual for
services provided to the filing organization or to a related
organization, if such compensation is required to be reported in
Part VII, Section A.
2. The member didn't receive total compensation
exceeding $10,000 during the organization's tax year (including
a short year, regardless of whether such compensation is
reported in Part VII) from the organization and related
organizations as an independent contractor, other than
reasonable compensation for services provided in the
capacity as a member of the governing body. For example, a
person who receives reasonable expense reimbursements and
reasonable compensation as a director of the organization
doesn't cease to be independent merely because she or he also
receives payments of $7,500 from the organization for other
arrangements.
Example 2. D is a voting member of both the organization's
governing body and the governing body of C, a related
organization. D's child, E, received $40,000 in taxable
compensation as a part-time employee of C. D isn't an
independent member of the governing body, because E received
compensation from C, a related organization to D, and the
compensation was of a type (compensation to a family member
of a member of C's governing body) and amount (over $10,000)
that would be reportable on Schedule L (Form 990) if the related
organization, C, were required to file Schedule L (Form 990).
Example 3. C was Board Chair of X school during the tax
year. X's bylaws designate the following as officer positions:
Board Chair, Secretary, and Treasurer. C set the agenda for
board of directors meetings, officiated board meetings,
coordinated development of board policy and procedure, was an
ex-officio member of all committees of the board, conducted
weekly staff meetings, and performed teacher and staff
evaluations. X compensated C during the tax year for C's
services. This compensation was attributable to C's board and
3. Neither the member, nor any family member of the
member, was involved in a transaction with the organization
(whether directly or indirectly through affiliation with another
organization) that is required to be reported on Schedule L (Form
990) for the organization's tax year.
20
2023 Instructions for Form 990
committee activities, and to C's non-director activities involving
staff meetings and evaluations. Because X compensated C for
services as an officer/employee, C isn't an independent member
of the governing body. See Rev. Rul. 68-597 and Rev. Rul.
57-246 for a description of the distinction between director
services and officer services.
Example 4. The facts are the same as in Example 3, except
that the Board Chair position wasn't designated as an officer
position under X's bylaws, board resolutions, or state law.
Nevertheless, because X compensated C for non-director
activities involving staff meetings and evaluations during the tax
year, C is deemed to have received compensation as an
employee—not as a governing body member—for those
activities. Therefore, C isn't an independent member of the
governing body.
Example 5. The facts are the same as in Example 3, except
that (1) C conducted only director and committee activities
during the tax year; (2) C didn't conduct staff meetings and
evaluations; and (3) X compensated C a reasonable amount for
C's Board Chair services during the tax year, but didn't provide
any other compensation to C in any other capacity. C's
independence as a Board member isn't compromised by
receiving compensation from X as a Board member (and not as
an officer or employee).
3. The two persons are each a director, trustee, officer, or
greater-than-10% owner in the same business or investment
entity (but not in the same tax-exempt organization).
Ownership is measured by stock ownership (either voting
power or value, whichever is greater) of a corporation, profits or
capital interest in a partnership or an LLC (whichever is greater),
membership interest in a nonprofit organization, or beneficial
interest in a trust. Ownership includes indirect ownership (for
example, ownership in an entity that has ownership in the entity
in question); there may be ownership through multiple tiers of
entities.
Privileged relationship exception. For purposes of line 2, a
business relationship doesn't include a relationship between an
attorney and client, a medical professional (including
psychologist) and patient, or a priest/clergy and penitent/
communicant.
Example 1. B is an officer of the organization, and C is a
member of the organization's governing body. B is C's sister's
spouse. The organization must report that B and C have a family
relationship.
Example 2. D and E are officers of the organization. D is
also a partner in an accounting firm with 300 partners (with a
1/300 interest in the firm's profits and capital) but isn't an officer,
director, or trustee of the accounting firm. D's accounting firm
provides services to E in the ordinary course of the accounting
firm's business, on terms generally offered to the public, and
receives $100,000 in fees during the year. The relationship
between D and E isn't a reportable business relationship, either
because (1) it is in the ordinary course of business on terms
generally offered to the public, or (2) D doesn't hold a
greater-than-35% interest in the accounting firm's profits or
capital.
Example 3. F and G are trustees of the organization. F is the
owner and CEO of an automobile dealership. G purchased a
$45,000 car from the dealership during the organization's tax
year in the ordinary course of the dealership's business, on
terms generally offered to the public. The relationship between F
and G isn't a reportable business relationship because the
transaction was in the ordinary course of business on terms
generally offered to the public.
Example 4. H and J are members of the organization's
board of directors. Both are CEOs of publicly traded corporations
and serve on each other's board. The relationship between H
and J is a reportable business relationship because each is a
director or officer in the same business entity.
Example 5. K is an officer of the organization, and L is on its
board of directors. L is a greater-than-35% partner of a law firm
that charged $60,000 during the organization's tax year for legal
services provided to K that were worth $600,000 at the law firm's
ordinary rates. Thus, the ordinary course of business exception
doesn't apply. However, the relationship between K and L isn't a
reportable business relationship because of the privileged
relationship of attorney and client.
Also see Examples 2 and 3 in the instructions for Part VII,
Section A, line 5, later.
Reasonable effort. The organization need not engage in
more than a reasonable effort to obtain the necessary
information to determine the number of independent voting
members of its governing body and can rely on information
provided by such members. For instance, the organization can
rely on information it obtains in response to a questionnaire sent
annually to each member of the governing body that includes the
member's name and title, blank lines for the member's signature
and signature date, and the pertinent instructions and definitions
for line 1b, to determine whether the member is or isn't
independent.
Line 2. Answer “Yes” if any of the organization's current
officers, directors, trustees, or key employees, as reported in
Part VII, Section A, had a family relationship or business
relationship with another of the organization's current officers,
directors, trustees, or key employees, as reported in Part VII,
Section A, at any time during the organization's tax year. For
each family and business relationship, identify the persons and
describe their relationship on Schedule O (Form 990). It is
sufficient to enter “family relationship” or “business relationship”
without greater detail.
Business relationship. Business relationships between two
persons include any of the following.
1. One person is employed by the other in a sole
proprietorship or by an organization with which the other is
associated as a trustee, director, officer, or greater-than-35%
owner, even if that organization is tax exempt. However, don't
report a person’s employment by the filing organization as a
business relationship.
2. One person is transacting business with the other (other
than in the ordinary course of either party's business on the
same terms as are generally offered to the public), directly or
indirectly, in one or more contracts of sale, lease, license, loan,
performance of services, or other transaction involving transfers
of cash or property valued in excess of $10,000 in the aggregate
during the organization's tax year. Indirect transactions are
transactions with an organization with which the one person is
associated as a trustee, director, officer, or greater-than-35%
owner. Such transactions don't include charitable contributions
to tax-exempt organizations.
Reasonable effort. The organization isn't required to provide
information about a family or business relationship between two
officers, directors, trustees, or key employees if it is unable
to secure the information after making a reasonable effort to
obtain it. An example of a reasonable effort would be for the
organization to distribute a questionnaire annually to each such
person that includes the name and title of each person reporting
information, blank lines for those persons' signatures and
signature dates, and the pertinent instructions and definitions for
line 2.
Line 3. Answer “Yes” if, at any time during the organization's tax
year, the organization used a management company or other
person (other than persons acting in their capacities as officers,
21
2023 Instructions for Form 990
directors, trustees, or key employees) to perform any
management duties customarily performed by or under the direct
supervision of officers, directors, trustees, or key
the state and to the required or permitted number or frequency of
governing body or member meetings.
Describe significant changes on Schedule O (Form 990), but
don't attach a copy of the amendments or amended document to
Form 990 (or recite the entire amended document verbatim),
unless such amended documents reflect a change in the
organization's name. See Specific Instructions, Item B, earlier,
regarding attachments required in the event of a change in the
organization's name.
employees. Such management duties include, but aren't limited
to, hiring, firing, and supervising personnel; planning or
executing budgets or financial operations; or supervising exempt
operations or unrelated trades or businesses of the organization.
Management duties don't include administrative services (such
as payroll processing) that don't involve significant managerial
decision making. Management duties also don't include
investment management unless the filing organization conducts
investment management services for others.
An organization must report significant changes to its
organizational documents on Form 990, Part VI, rather
than in a letter to EO Determinations. EO Determinations
TIP
If “Yes,” on Schedule O (Form 990), list the name(s) of the
management company or companies or other person(s)
performing management duties; describe the services they
provided to the organization; list any of the organization’s current
or former officers, directors, trustees, key employees, and
highest compensated employees listed in Part VII, Section A,
who were compensated by the management company or
companies or other person(s) during the calendar year ending
with or within the organization's tax year; and list the amounts of
reportable and other compensation they received from the
management company or companies or other person(s) for
services provided to the filing organization and related
organizations during that year.
no longer issues letters confirming the tax-exempt status of
organizations that report significant changes to their
organizational documents, though it will, on request, issue an
affirmation letter confirming an organization's name change. The
IRS will no longer require a new exemption application from a
domestic section 501(c) organization that undergoes certain
changes of form or place of organization described in Rev. Proc.
2018-15, 2018-9 I.R.B. 379.
Line 5. Answer “Yes” if the organization became aware during
the organization's tax year of a significant diversion of its assets,
whether or not the diversion occurred during the year. If “Yes,”
explain the nature of the diversion, dollar amounts and/or other
property involved, corrective actions taken to address the matter,
and pertinent circumstances on Schedule O (Form 990),
although the person or persons who diverted the assets
shouldn't be identified by name.
A diversion of assets includes any unauthorized conversion or
use of the organization's assets other than for the organization's
authorized purposes, including but not limited to embezzlement
or theft. Report diversions by the organization's officers,
directors, trustees, employees, volunteers, independent
contractors, grantees (diverting grant funds), or any other
person, even if not associated with the organization other than
by the diversion. A diversion of assets doesn't include an
authorized transfer of assets for FMV consideration, such as to a
joint venture or for-profit subsidiary in exchange for an interest
in the joint venture or subsidiary. For this purpose, a diversion is
considered significant if the gross value of all diversions (not
taking into account restitution, insurance, or similar recoveries)
discovered during the organization's tax year exceeds the lesser
of (1) 5% of the organization's gross receipts for its tax year, (2)
5% of the organization's total assets as of the end of its tax year,
or (3) $250,000.
Line 4. The organization must report significant changes to its
organizing or enabling document by which it was created
(articles of incorporation, association, or organization; trust
instrument; constitution; or similar document), and to its rules
governing its affairs commonly known as bylaws (or regulations,
operating agreement, or similar document). Report significant
changes that weren't reported on any prior Form 990, and that
were made before the end of the tax year. Don't report changes
to policies described or established outside of the organizing or
enabling document and bylaws (or similar documents), such as
adoption of, or change to, a policy adopted by resolution of the
governing body that doesn't entail a change to the organizing
document or bylaws.
Examples of significant changes to the organizing or enabling
document or bylaws include changes to:
The organization's exempt purposes or mission;
•
•
The organization’s name (also see the instructions under
Specific Instructions, Item B, earlier);
The number, composition, qualifications, authority, or duties of
•
the governing body's voting members;
The number, composition, qualifications, authority, or duties of
•
the organization's officers or key employees;
Note. A diversion of assets can in some cases be inurement of
the organization's net earnings. In the case of section 501(c)(3),
501(c)(4), and 501(c)(29) organizations, it can also be an
excess benefit transaction taxable under section 4958 and
reportable on Schedule L (Form 990).
The role of the stockholders or membership in governance;
The distribution of assets upon dissolution;
•
•
•
The provisions to amend the organizing or enabling document
or bylaws;
The quorum, voting rights, or voting approval requirements of
•
the governing body members or the organization's stockholders
or membership;
Line 6. Answer “Yes” if the organization is organized as a stock
corporation, a joint-stock company, a partnership, a joint
venture, or an LLC. Also answer “Yes” if the organization is
organized as a non-stock, nonprofit, or not-for-profit corporation
or association with members. For purposes of Form 990, Part VI,
member means (without regard to what a person, including a
corporation or other legal entity, is called in the governing
documents) any person who, pursuant to a provision of the
organization's governing documents or applicable state law, has
the right to participate in the organization's governance or to
receive distributions of income or assets from the organization.
Members don't include governing body members. For purposes
of Part VI, a membership organization includes members with
the following kinds of rights.
The policies or procedures contained within the organizing
•
documents or bylaws regarding compensation of officers,
directors, trustees, or key employees, conflicts of interest,
whistleblowers, or document retention and destruction; and
The composition or procedures contained within the
•
organizing document or bylaws of an audit committee.
Example. Organization X has a written conflicts of interest
policy that isn't contained within the organizing document or
bylaws. The policy is changed by board resolution. The policy
change doesn't need to be reported on line 4.
Examples of insignificant changes made to organizing or
enabling documents or bylaws that aren't required to be reported
here include changes to the organization's registered agent with
22
2023 Instructions for Form 990
1. The members elect the members of the governing body
(but not if the persons on the governing body are the
organization's only members) or their delegates.
Line 10a. Answer “Yes” if the organization had during its tax
year any local chapters, local branches, local lodges, or other
similar local units or affiliates over which the organization had the
legal authority to exercise direct or indirect supervision and
control (whether or not in a group exemption) and local units
that aren't separate legal entities under state law over which the
organization had such authority. An affiliate or unit is considered
“local” for this purpose if it is responsible for a smaller
geographical area than the filing organization is responsible for.
Thus, a regional organization would be considered local for a
national organization.
2. The members approve significant decisions of the
governing body.
3. The members can receive a share of the organization's
profits or excess dues or a share of the organization's net assets
upon the organization's dissolution.
Describe on Schedule O (Form 990) the classes of members or
stockholders with the rights described above.
Line 7a. Answer “Yes” on line 7a if at any time during the
organization's tax year there were one or more persons (other
than the organization's governing body itself, acting in such
capacity) that had the right to elect or appoint one or more
members of the organization's governing body, whether
periodically, or as vacancies arise, or otherwise. If “Yes,” describe
on Schedule O (Form 990) the class or classes of such persons
and the nature of their rights.
Example 1. X is a national organization dedicated to the
reform of K. X has affiliates in 15 states that conduct activities to
carry out the purposes of X at the state level. X has the authority
to approve the annual budget of each affiliate. X must answer
“Yes” on line 10a.
Example 2. Y is a section 170(b)(1)(A)(iii) hospital located in
M City. Y appoints a majority of the board of directors of Z, a
section 509(a)(3) supporting organization that invests funds and
makes grants for the benefit of Y. Although Y controls Z, Z isn't a
local affiliate of Y that would require Y to answer “Yes” on
line 10a.
Line 7b. Answer “Yes” on line 7b if at any time during the
organization's tax year any governance decisions of the
organization were reserved to (or subject to approval by)
members, stockholders, or persons other than the governing
body, whether or not any such governance decisions were
made during the tax year, such as approval of the governing
body's election or removal of members of the governing body, or
approval of the governing body's decision to dissolve the
organization. If “Yes,” describe on Schedule O (Form 990) the
class or classes of such persons, the decisions that require their
approval, and the nature of their voting rights.
Line 10b. Written policies and procedures governing the
activities of local chapters, branches, and affiliates to ensure
their operations are consistent with the organization's tax-exempt
purposes are documents used by the organization and its local
units to address the policies, practices, and activities of the local
unit. Such policies and procedures can include policies and
procedures similar to those described in lines 11–16 of this
section, whether separate or included as required provisions in
the chapter's articles of organization or bylaws, a manual
provided to chapters, a constitution, or similar documents. If
“No,” explain on Schedule O (Form 990) how the organization
ensures that the local unit's activities are consistent with the
organization's tax-exempt purposes.
Line 8. Answer “Yes” on lines 8a and 8b if the organization
contemporaneously documented by any means permitted by
state law every meeting held and written action taken during the
organization's tax year by its governing body and committees
with authority to act on behalf of the governing body (which
ordinarily don't include advisory boards). Documentation
permitted by state law can include approved minutes, email, or
similar writings that explain the action taken, when it was taken,
and who made the decision. For this purpose, contemporaneous
means by the later of (1) the next meeting of the governing body
or committee (such as approving the minutes of the prior
meeting), or (2) 60 days after the date of the meeting or written
action. If the answer to either line 8a or 8b is “No,” explain on
Schedule O (Form 990) the organization's practices or policies, if
any, regarding documentation of meetings and written actions of
its governing body and committees with authority to act on its
behalf. If the organization had no committees, answer “No” to
line 8b.
Note. The central organization (parent organization) named in
a group exemption letter is required to have general
supervision or control over its subordinate organizations as a
condition of the group exemption.
Line 11a. Answer “Yes” only if a complete copy of the
organization's final Form 990 (including all required schedules),
as ultimately filed with the IRS, was provided to each person who
was a voting member of the governing body at the time the
Form 990 was provided, whether in paper or electronic form,
before its filing with the IRS. The organization can answer “Yes” if
it emailed all of its governing body members a link to a
password-protected website on which the entire Form 990 can
be viewed, and noted in the email that the Form 990 is available
for review on that site. However, answer “No” if the organization
merely informed its governing body members that a copy of the
Form 990 is available upon request. Answer “No” if the
Line 9. The IRS needs a current mailing address to contact the
organization's officers, directors, trustees, or key employees.
The organization can use its official mailing address stated on
the first page of Form 990 as the mailing address for such
persons. Otherwise, enter on Schedule O (Form 990) the mailing
addresses for such persons who are to be contacted at a
different address. Such information will be available to the public.
organization redacted or removed any information from the copy
of its final Form 990 that it provided to its governing body
members before filing the form. For example, answer “No” if the
organization, at the request of a donor, redacted the name and
address of that donor from the copy of its Schedule B (Form
990), that it provided to its governing body members. Under
those circumstances, the organization may explain on
Section B. Policies
Answer “Yes” to any question in this section that asks whether
the organization had a particular policy or practice only if the
organization's governing body (or a committee of the governing
body, if the governing body delegated authority to that committee
to adopt the policy) adopted the policy by the end of its tax year,
and if the policy applied to the organization as a whole. If the
policy applied only on a division-wide or department-wide level,
answer “No.” The organization may explain the scope of such
policy on Schedule O (Form 990).
Schedule O (Form 990) why it answered “No” to line 11a.
Line 11b. Describe on Schedule O (Form 990) the process, if
any, by which any of the organization's officers, directors,
trustees, board committee members, or management reviewed
the prepared Form 990, whether before or after it was filed with
the IRS, including specifics about who conducted the review,
when they conducted it, and the extent of any such review. If no
23
2023 Instructions for Form 990
review was or will be conducted, enter “No review was or will be
conducted.”
Certain federal or state laws provide protection against
whistleblower retaliation and prohibit destruction of
certain documents. For instance, while the federal
TIP
Example. The return preparer emails a copy of the final
version of Form 990 to each Board member before it was filed.
However, no Board member undertakes any review of the form
either before or after filing. Because such a copy of the final
version of the form was provided to each voting member of the
organization's governing body before it was filed, the
Sarbanes-Oxley legislation generally doesn't pertain to
tax-exempt organizations, it does impose criminal liability on
tax-exempt as well as other organizations for (1) retaliation
against whistleblowers that report federal offenses, and (2)
destruction of records with the intent to obstruct a federal
investigation. See 18 U.S.C. sections 1513(e) and 1519. Also
note that an organization is required to keep books and records
relevant to its tax exemption and its filings with the IRS. Some
states provide additional protection for whistleblowers.
organization can answer “Yes” even though no review took place.
The organization must describe its Form 990 review process (or
lack thereof) on Schedule O (Form 990).
Line 12a. Answer “Yes” if, as of the end of the organization's tax
year, the organization had a written conflict of interest policy.
A conflict of interest policy defines conflicts of interest, identifies
the classes of individuals within the organization covered by the
policy, facilitates disclosure of information that can help identify
conflicts of interest, and specifies procedures to be followed in
managing conflicts of interest. A conflict of interest arises when a
person in a position of authority over an organization, such as an
officer, director, manager, or key employee can benefit
financially from a decision he or she could make in such
capacity, including indirect benefits such as to family members
or businesses with which the person is closely associated. For
this purpose, a conflict of interest doesn't include questions
involving a person's competing or respective duties to the
organization and to another organization, such as by serving on
the boards of both organizations, that don't involve a material
financial interest of, or benefit to, such person.
Example. B is a member of the governing body of X Charity
and of Y Charity, both of which are section 501(c)(3) public
charities with different charitable purposes. X Charity has taken a
public stand in opposition to a specific legislative proposal. At an
upcoming board meeting, Y Charity will consider whether to
publicly endorse the same specific legislative proposal. While B
may have a conflict of interest in this decision, the conflict
doesn't involve a material financial interest of B's merely as a
result of Y Charity's position on the legislation.
Line 15. Answer “Yes” on line 15a if, during the tax year, the
organization (not a related organization or other third party)
used a process for determining compensation (reported on Part
II or Schedule J (Form 990), Compensation Information) of the
CEO, executive director, or other person who is the top
management official, that included all of the following
elements.
Review and approval by a governing body or compensation
•
committee, provided that persons with a conflict of interest
regarding the compensation arrangement at issue weren't
involved. For purposes of this question, a member of the
governing body or compensation committee has a conflict of
interest regarding a compensation arrangement if any of the
following circumstances apply.
1. The member (or a family member of the member) is
participating in or economically benefitting from the
compensation arrangement.
2. The member is in an employment relationship subject to
the direction or control of any person participating in or
economically benefitting from the compensation arrangement.
3. The member receives compensation or other payments
subject to approval by any person participating in or
economically benefitting from the compensation arrangement.
4. The member has a material financial interest affected by
Line 12b. Answer “Yes” if the organization's officers, directors,
trustees, and key employees are required to disclose or
update annually (or more frequently) information regarding their
interests and those of their family members that could give rise
to conflicts of interest, such as a list of family members,
substantial business or investment holdings, and other
transactions or affiliations with businesses and other
organizations and those of family members.
the compensation arrangement.
5. The member approves a transaction providing economic
benefits to any person participating in the compensation
arrangement, who in turn has approved or will approve a
transaction providing economic benefits to the member. See
Regulations section 53.4958-6(c)(1)(iii).
Use of data as to comparable compensation for similarly
•
qualified persons in functionally comparable positions at similarly
situated organizations.
Line 12c. If “Yes,” describe on Schedule O (Form 990) the
organization's practices for monitoring proposed or ongoing
transactions for conflicts of interest and dealing with potential or
actual conflicts, whether discovered before or after the
transaction has occurred. The description should include an
explanation of which persons are covered under the policy, the
level at which determinations of whether a conflict exists are
made, and the level at which actual conflicts are reviewed. Also
explain any restrictions imposed on persons with a conflict, such
as prohibiting them from participating in the governing body's
deliberations and decisions in the transaction.
Contemporaneous documentation and recordkeeping for
•
deliberations and decisions regarding the compensation
arrangement.
Answer “Yes” on line 15b if the process for determining
compensation of one or more officers or key employees other
than the top management official included all of the elements
listed above.
If the answer was “Yes” on line 15a or 15b, describe the
process on Schedule O (Form 990), identify the offices or
positions for which the process was used to establish
compensation of the persons who served in those offices or
positions, and enter the year in which this process was last
undertaken for each such person.
If the organization didn't compensate its CEO, executive
director, or top management official during the tax year, answer
“No” to line 15a. If the organization didn't compensate any of its
other officers or key employees during the tax year, even if such
employees were compensated by a related organization, answer
“No” to line 15b.
Lines 13 and 14. A whistleblower policy encourages staff and
volunteers to come forward with credible information on illegal
practices or violations of adopted policies of the organization,
specifies that the organization will protect the individual from
retaliation, and identifies those staff or board members or
outside parties to whom such information can be reported. A
document retention and destruction policy identifies the record
retention responsibilities of staff, volunteers, board members,
and outsiders for maintaining and documenting the storage and
destruction of the organization's documents and records.
24
2023 Instructions for Form 990
listed on Schedule B (Form 990)) of any such forms during the
tax year.
Line 16. Answer “Yes” on line 16a if, at any time during its tax
year, the organization invested in, contributed assets to, or
otherwise participated in a joint venture or similar arrangement
with one or more taxable persons. For purposes of line 16, a joint
venture or similar arrangement (or a “venture or arrangement”)
means any joint ownership or contractual arrangement through
which there is an agreement to jointly undertake a specific
business enterprise, investment, or exempt-purpose activity
without regard to (1) whether the organization controls the
venture or arrangement, (2) the legal structure of the venture or
arrangement, or (3) whether the venture or arrangement is
treated as a partnership for federal income tax purposes, or as
an association, or corporation for federal income tax purposes.
Disregard ventures or arrangements that meet both of the
following conditions.
1. 95% or more of the venture's or arrangement's income for
its tax year ending with or within the organization's tax year is
described in sections 512(b)(1)–(5) (including unrelated
debt-financed income).
2. The primary purpose of the organization's contribution to,
or investment or participation in, the venture or arrangement is
the production of income or appreciation of property.
If “Other” is checked, explain on Schedule O (Form 990). Also
explain on Schedule O (Form 990) if the organization didn't make
publicly available upon request any of Forms 1023, 1023-EZ,
1024, 1024-A, 990, or 990-T that are subject to public inspection
requirements. Exempt organizations must make available for
public inspection their Form 1023, 1023-EZ, 1024, or 1024-A
application for recognition of exemption. Applications filed before
July 15, 1987, need not be made publicly available unless the
organization had a copy on July 15, 1987.
Organizations that file Form 990 must make it publicly
available for a period of 3 years from the date it is required to be
filed (including extensions) or, if later, is actually filed.
Organizations aren't required to make publicly available the
names and addresses of contributors (as set forth on
Schedule B (Form 990), and on Form 1023, 1023-EZ, 1024, or
1024-A). Section 501(c)(3) organizations that file Form 990-T are
also required to make their Forms 990-T publicly available for the
corresponding 3-year period for forms filed after August 17, 2006
(unless the form was filed solely to request a refund of telephone
excise taxes). See Appendix D for more information on public
inspection requirements.
Answer “Yes” on line 16b if, as of the end of the organization's
tax year, the organization had both:
Line 19. Explain on Schedule O (Form 990) whether the
organization made its governing documents (for example,
articles of incorporation, constitution, bylaws, trust instrument),
conflict of interest policy, and financial statements (whether
or not audited) available to the general public during the tax year,
and, if so, how it made them available to the public (for example,
posting on the organization's website, posting on another
website, providing copies on request, inspection at an office of
the organization, etc.). If the organization didn't make any of
these documents available to the public, enter “No documents
available to the public.”
1. Followed a written policy or procedure that required the
organization to negotiate, in its transactions and arrangements
with other members of the venture or arrangement, such terms
and safeguards as are adequate to ensure that the
organization's exempt status is protected; and
2. Taken steps to safeguard the organization's exempt status
for the venture or arrangement.
Some examples of safeguards include the following.
Control over the venture or arrangement sufficient to ensure
•
Federal tax law doesn't require that such documents be made
publicly available unless they were included on a form that is
publicly available (such as Form 1023, 1023-EZ, 1024, or
1024-A).
that the venture furthers the exempt purpose of the organization.
Requirements that the venture or arrangement give priority to
•
exempt purposes over maximizing profits for the other
participants.
The venture or arrangement not engage in activities that
•
Line 20. Provide the name of the person who possesses the
organization's books and records, and the business address and
telephone number of such person (or of the organization if the
books and records are kept by such person at a personal
residence). If the books and records are kept at more than one
location, provide the name, business address, and telephone
number of the person responsible for coordinating the
maintenance of the books and records. The organization isn't
required to provide the address or telephone number of a
personal residence of an individual. If provided, however, such
information will be available to the public.
would jeopardize the organization's exemption (such as political
intervention or substantial lobbying for a section 501(c)(3)
organization).
All contracts entered into with the organization be on terms
•
that are at arm's length or more favorable to the organization.
Section C. Disclosure
Line 17. List the states with which a copy of this Form 990 is
required to be filed, even if the organization hasn't yet filed Form
990 with that state. Use Schedule O (Form 990) if additional
space is necessary.
Part VII. Compensation of Officers,
Directors, Trustees, Key Employees,
Highest Compensated Employees,
and Independent Contractors
Some states require or permit the filing of Form 990 to
fulfill state exempt organization or charitable solicitation
reporting requirements.
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Line 18. Check the box for “Own website” only if the
organization posted an exact reproduction (other than for
information permitted by law to be withheld from public
disclosure, such as the names and addresses of contributors
listed on Schedule B (Form 990)) of its Form 990, Form 990-T
(for section 501(c)(3) organizations), or application for
recognition of exemption (Form 1023, 1023-EZ, 1024, or
1024-A) on its website during its tax year. Check the box for
“Another's website” only if the organization provided to another
individual or organization and that other individual or
Check the box in the heading of Part VII if Schedule O (Form
990) contains any information pertaining to this part.
Overview. Form 990, Part VII, requires the listing of the
organization's current or former officers, directors, trustees,
key employees, and highest compensated employees, and
current independent contractors, and reporting of certain
compensation information relating to such persons.
All organizations are required to complete Part VII, and when
applicable, Schedule J (Form 990), for certain persons.
Compensation must be reported for the calendar year ending
with or within the organization's tax year. In some cases,
organization posted on its website, an exact reproduction (other
than for information permitted by law to be withheld from public
disclosure, such as the names and addresses of contributors
25
2023 Instructions for Form 990
persons are reported in Part VII or Schedule J (Form 990) only if
their reportable compensation (as explained below) and “other
compensation” (as explained below) from the organization and
related organizations (as explained in the Glossary and in the
Instructions for Schedule R (Form 990)) exceeds certain
thresholds. In some cases, compensation from an unrelated
organization must be reported on Form 990. See the
instructions for Part VII, Section A, line 5, later. The amount of
compensation reported on Form 990, Part VII, for a listed person
may differ from the amount reported on Form 990, Part IX, line 5,
for that person due to factors such as a different accounting
period (calendar vs. fiscal year) or a different accounting
method.
Special rules apply to disregarded entities of which the
organization is the sole member. See Disregarded Entities, later.
To determine which persons are current or former officers,
directors, trustees, key employees, or highest compensated
employees, see the instructions for Part VII, Section A, column
(C), later.
Order of reporting. List the persons required to be included in
Part VII, Section A, in order from highest to lowest compensation
based on the sum of columns (D), (E), and (F) for each person.
When the amount of total compensation is the same, list the
persons in the following order: individual trustees or directors,
institutional trustees, officers, key employees, highest
compensated employees, and former such persons.
Form 990, Part VII, relies on definitions of reportable
compensation and other compensation. Reportable
compensation generally refers to compensation reported in
box 1 or 5 (whichever amount is greater) of Form W-2, Wage and
Tax Statement; box 1 of Form 1099-NEC, Nonemployee
Compensation; and box 6 of Form 1099-MISC, Miscellaneous
Information. Organizations must also report other compensation
in Part VII, as discussed in the instructions for Part VII, Section A,
column (F), later.
Fiscal year filers. To determine which persons are listed in Part
VII, Section A, the organization must use the calendar year
ending with or within the organization's fiscal year for some
(those whose compensation must exceed minimum thresholds
in order to be reported) and the fiscal year for others. Report
officers, directors, and trustees that served at any time during
the fiscal year as “current” officers, directors, and trustees.
Report the following persons based on reportable
compensation and status for the calendar year ending within
the fiscal year.
Organizations must report compensation for both current and
former officers, directors, trustees, key employees, and highest
compensated employees. The distinction between current and
former such persons is discussed below. The determination of
“former” uses a 5-year lookback period.
Current key employees (over $150,000 of reportable
•
compensation from the organization and related
organizations).
Current five highest compensated employees (over
•
$100,000 of reportable compensation from the organization and
related organizations), other than current officers, directors,
trustees, and key employees.
Organizations must report compensation from themselves
and from related organizations, which generally consist of
parents, subsidiaries, brother/sister organizations, supporting
organizations, supported organizations, sponsoring
organizations of VEBAs, and contributing employers to VEBAs.
See the Instructions for Schedule R (Form 990) for a fuller
discussion of related organizations.
Former officers, key employees, and five highest
•
compensated employees (over $100,000 of reportable
compensation from the organization and related organizations,
with special rules for former highest compensated employees).
Former directors and trustees (over $10,000 of reportable
•
compensation for services in the capacity as director or trustee
of the organization, from the organization and related
organizations).
Part VII, Section A, requires reporting of officers, directors,
trustees, key employees, and up to five of the organization's
highest compensated employees. Compensation from related
organizations must also be taken into account in determining a
person's compensation and reported in Part VII, Section A,
columns (E) and (F).
Report compensation on Form 990, Part VII, for the calendar
year ending within the organization's fiscal year, including that
of current officers, directors, and trustees, even if the fiscal year
is used to determine which such persons must be listed in Part
VII.
Section B requires reporting of the five highest compensated
independent contractors. Section B doesn't require reporting of
compensation from related organizations.
Director or trustee. A director or trustee is a member of the
organization's governing body, but only if the member has
voting rights. A director or trustee that served at any time during
the organization's tax year is deemed a current director or
trustee. Members of advisory boards that don't exercise any
governance authority over the organization aren't considered
directors or trustees.
An “institutional trustee” is a trustee that isn't an individual or
natural person but an organization. For instance, a bank or trust
company serving as the trustee of a trust is an institutional
trustee.
Section A. Officers, Directors, Trustees, Key
Employees, and Highest Compensated
Employees
Overview. Organizations are required to enter in Part VII,
Section A, the following officers, directors, trustees, and
employees of the organization whose reportable
compensation from the organization and related
organizations (as explained in the Glossary and the
Instructions for Schedule R (Form 990)) exceeded the following
thresholds for the tax year.
Officer. An officer is a person elected or appointed to manage
the organization's daily operations. An officer that served at any
time during the organization's tax year is deemed a current
officer. The officers of an organization are determined by
reference to its organizing document, bylaws, or resolutions of its
governing body, or as otherwise designated consistent with
state law, but, at a minimum, include those officers required by
applicable state law. Officers can include a president, vice
president, secretary, treasurer, and, in some cases, a Board
Chair. In addition, for purposes of Form 990, including Part VII,
Section A, and Schedule J (Form 990), treat as an officer the
following persons, regardless of their titles.
Current officers, directors, and trustees (no minimum
•
compensation threshold).
Current key employees (over $150,000 of reportable
•
compensation).
Current five highest compensated employees other than
•
officers, directors, trustees, or listed key employees (over
$100,000 of reportable compensation).
Former officers, key employees, and highest compensated
•
employees (over $100,000 of reportable compensation, with
special rules for former highest compensated employees).
Former directors and trustees (over $10,000 of reportable
•
compensation in the capacity as a former director or trustee).
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2023 Instructions for Form 990
1. Top management official. The person who has ultimate
responsibility for implementing the decisions of the governing
body or for supervising the management, administration, or
operation of the organization, for example, the organization's
president, CEO, or executive director.
2. Top financial official. The person who has ultimate
responsibility for managing the organization's finances, for
example, the organization's treasurer or chief financial officer.
In the examples set forth below, assume the individual
involved is an employee that satisfies the $150,000 Test and Top
20 Test and isn't an officer, director, or trustee.
Example 1. T is a large section 501(c)(3) university. L is the
dean of the law school of T, which generates more than 10% of
the revenue of T, including contributions from alumni and
foundations. Although L doesn't have ultimate responsibility for
managing the university as a whole, L meets the Responsibility
Test and is reportable as a key employee of T.
If ultimate responsibility resides with two or more individuals (for
example, co-presidents or co-treasurers), who can exercise such
responsibility in concert or individually, then treat all such
individuals as officers.
Example 2. S chairs a small academic department in the
College of Arts and Sciences of the same university, T, described
above. As department chair, S supervises faculty in the
department, approves the course curriculum, and oversees the
operating budget for the department. The department represents
less than 10% of the university's activities, assets, income,
expenses, capital expenditures, operating budget, and employee
compensation. Under these facts and circumstances, S doesn't
meet the Responsibility Test and isn't a key employee of T.
Key employee. For purposes of Form 990, a current key
employee is an employee of the organization (other than an
officer, director, or trustee) who meets all three of the following
tests, applied in the following order.
1. $150,000 Test: Receives reportable compensation
from the organization and all related organizations in excess of
$150,000 for the calendar year ending with or within the
organization's tax year.
Example 3. U is a large acute-care section 501(c)(3)
hospital. U employs X as a radiologist. X gives instructions to
staff for the radiology work X conducts, but X doesn't supervise
other U employees, manage the radiology department, or have
or share authority to control or determine 10% or more of U's
capital expenditures, operating budget, or employee
2. Responsibility Test: At any time during the calendar year
ending with or within the organization's tax year:
a. Has responsibilities, powers, or influence over the
organization as a whole that is similar to those of officers,
directors, or trustees;
compensation. Under these facts and circumstances, X doesn't
meet the Responsibility Test and isn't a key employee of U.
b. Manages a discrete segment or activity of the
organization that represents 10% or more of the activities,
assets, income, or expenses of the organization, as compared to
the organization as a whole; or
c. Has or shares authority to control or determine 10% or
more of the organization's capital expenditures, operating
budget, or compensation for employees.
3. Top 20 Test: Is one of the 20 employees other than
officers, directors, and trustees who satisfy the $150,000 Test
and Responsibility Test with the highest reportable
compensation from the organization and related organizations
for the calendar year ending with or within the organization's tax
year.
Example 4. W is a cardiologist and head of the cardiology
department of the same hospital, U, described above. The
cardiology department is a major source of patients admitted to
U and consequently represents more than 10% of U's income,
as compared to U as a whole. As department head, W manages
the cardiology department. Under these facts and
circumstances, W meets the Responsibility Test and is a key
employee of U.
Five highest compensated employees. The organization is
required to enter its current five highest compensated
employees whose reportable compensation combined from
the organization and related organizations is greater than
$100,000 for the calendar year ending with or within the
organization's tax year and who aren't also current officers,
directors, trustees, or key employees of the organization.
Such individuals are the “current” five highest compensated
employees. These can include persons who meet some but not
all of the tests for key employee status. The organization isn't
required to enter more than the top five such persons, ranked by
amount of reportable compensation. Use the calendar year
ending with or within the organization's tax year for determining
the organization's current five highest compensated employees.
If the organization has more than 20 individuals who meet the
$150,000 Test and Responsibility Test, report as key
employees only the 20 individuals who have the highest
reportable compensation from the organization and related
organizations. Note that any others, up to five, might be
reportable as current highest compensated employees, with
over $100,000 in reportable compensation. Use the calendar
year ending with or within the organization's tax year for
determining the organization's current key employees.
Example. X is an employee of Y University and isn't an
officer, director, or trustee. X's reportable compensation for the
calendar year exceeds $150,000, and X meets the
An individual that isn't an employee of the organization (or of
a disregarded entity of the organization) is nonetheless treated
as a key employee if she or he serves as an officer or director of
a disregarded entity of the organization and otherwise meets the
standards of a key employee set forth above. See Disregarded
Entities, later, for treatment of certain employees of a
Responsibility Test. X would qualify as a key employee of Y,
except that 20 employees had higher reportable compensation
and otherwise qualify as key employees. Therefore, those 20 are
listed as the organization's key employees. X has the highest
reportable compensation from the organization and related
organizations of all employees other than the 20 key employees.
X must be listed as one of the organization's five highest
compensated employees.
disregarded entity as key employees of the organization.
If an employee is a key employee of the organization for only
a portion of the year, that person's entire compensation for the
calendar year ending with or within the organization's tax year,
from both the filing organization and related organizations,
should be reported in Part VII, Section A.
Management companies and similar entities that are
independent contractors shouldn't be reported as key
employees. The organization's top management official and
top financial official are deemed officers rather than key
employees.
$10,000 exceptions for reporting compensation. Report
compensation paid or accrued by the filing organization and
related organizations. Special rules apply for reporting
reportable compensation and other compensation.
All reportable compensation paid by the filing organization
must be reported. Reportable compensation paid by a related
organization isn't required to be reported unless (1) it is $10,000
27
2023 Instructions for Form 990
or more for the calendar year ending with or within the
organization's tax year (the “$10,000-per-related-organization
exception”), or (2) it is paid for past services to the filing
organization in the person's capacity as a former director or
trustee.
Income Subject to Withholding, then treat this income as
reportable compensation and report it in Part VII, Section A,
column (D) or (E). For foreign persons for whom compensation
reporting on Form W-2, Form 1099-NEC, Form 1099-MISC, or
Form 1042-S isn't required, treat as reportable compensation in
column (D) or (E) the total value of the compensation paid in the
form of cash or property during the calendar year ending with or
within the organization's tax year. Report other compensation
from foreign organizations as “other compensation” in column
(F).
To determine whether an individual received more than
$100,000 (or $150,000) in reportable compensation in the
aggregate from the filing organization (and, as discussed later,
certain third parties such as common paymasters, payroll/
reporting agents, and certain unrelated organizations,
compensation from which is considered compensation from the
filing organization) and related organizations, add the following
amounts.
A particular item of other compensation (such as listed in the
compensation table, later) paid or accrued by the filing
organization isn't required to be reported unless (1) it is $10,000
or more for the calendar year ending with or within the
organization's tax year (the “$10,000-per-item exception”), or (2)
it is one of the five types of compensation (generally constituting
deferred compensation (including retirement plan benefits) and
health benefits) that must be reported regardless of amount (see
the instructions for column (F)). The same principles apply to
items of other compensation paid or accrued by a related
organization (applied separately to each related organization).
The $10,000 exceptions don't apply to reporting
compensation on Schedule J (Form 990), Part II.
!
The amount reported in box 1 or 5 of Form W-2 (whichever
•
CAUTION
amount is greater), in box 1 of Form 1099-NEC, and/or in box 6
of Form 1099-MISC, issued to the individual by the organization.
Reportable compensation. Reportable compensation
Amounts reported in box 1 or 5 of Form W-2 (whichever
consists of:
•
amount is greater), in box 1 of Form 1099-NEC, or in box 6 of
Form 1099-MISC, issued to the individual by each related
organization that reported $10,000 or more.
For officers and other employees, amounts required to be
•
reported in box 1 or 5 of Form W-2 (whichever amount is greater)
(as well as in box 1 of Form 1099-NEC, and/or in box 6 of Form
1099-MISC if the officer or employee is also compensated as an
independent contractor of the filing organization or a related
organization);
To determine whether an individual received solely in his or
her capacity as a former trustee or director of the organization
more than $10,000 in reportable compensation for the calendar
year ending with or within the organization's tax year, in the
aggregate, from the organization and all related organizations
(and thus must be reported on Form 990, Part VII, and
Schedule J (Form 990), Part II), add the amounts reported in
box 1 of all Forms 1099-NEC, box 6 of all Forms 1099-MISC,
and, if relevant, box 1 or 5 of all Forms W-2 (whichever amount is
greater) issued to the individual by the organization and all
related organizations for the calendar year ending with or within
the organization's tax year. Report such amounts only to the
extent that such amounts relate to the individual's past services
as a trustee or director of the organization, and don't disregard
any payments from a related organization if below $10,000, for
such purpose.
For directors and individual trustees, amounts required to
•
be reported in box 1 of Form 1099-NEC; and/or in box 6 of Form
1099-MISC for director and other independent contractor
services to the organization or a related organization, plus
amounts required to be reported in box 1 or 5 of Form W-2
(whichever amount is greater) if also compensated as an officer
or employee of the filing organization or a related organization;
and
For institutional trustees, fees for services paid pursuant to
•
a contractual agreement or statutory entitlement. While the
compensation of institutional trustees must be reported on Form
990, Part VII, it need not be reported on Schedule J (Form 990).
If the organization didn't file a Form 1099-NEC or 1099-MISC
because the amounts paid were below the threshold reporting
requirement, then include and report the amount actually paid.
For a full definition of reportable compensation, see the
Glossary.
Other compensation. Other compensation includes
compensation other than reportable compensation, including
deferred compensation not currently reportable in box 1 or 5 of
Form W-2, box 1 of Form 1099-NEC, or box 6 of Form
1099-MISC, and certain nontaxable benefits, as discussed in
detail in the instructions for Schedule J (Form 990), Part II. See
the instructions for other compensation reported in column (F),
later, which includes a table to show where and how to report
certain types of compensation in Part VII, Section A, and
Schedule J (Form 990).
Corporate officers are considered employees for
purposes of Form W-2 reporting, unless they perform no
services as officers, or perform only minor services and
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neither receive nor are entitled to receive, directly or indirectly,
any compensation. Corporate directors are considered
independent contractors, not employees, and director
compensation, if any, is generally required to be reported on
Form 1099-NEC. See Regulations section 31.3401(c)-1(f).
Note. Don't report the same item of compensation in more than
one column of Part VII, Section A, for the tax year.
For certain kinds of employees and for retirees, the amount in
box 5 of Form W-2 can be zero or less than the amount in box 1
of Form W-2. For instance, recipients of disability pay, certain
members of the clergy, and religious workers who aren't subject
to social security and Medicare taxes as employees can receive
compensation that isn't reported in box 5. In that case, the
amount required to be reported in box 1 of Form W-2 must be
reported as reportable compensation.
If an officer, director, trustee, key employee, or highest
compensated employee of the organization is a foreign person
who received U.S. source income during the calendar year
ending with or within the organization's tax year from the filing
organization or a related organization, and if such income was
reported in box 2 of Form 1042-S, Foreign Person's U.S. Source
Disregarded entities. Disregarded entities (such as an LLC
that is wholly owned by the organization and not treated as a
separate entity for federal tax purposes) are generally treated as
part of the organization rather than as related organizations for
purposes of Form 990, including Part VII and Schedule J (Form
990). A person isn't considered an officer or director of the
organization by virtue of being an officer or director of a
disregarded entity, but he or she can qualify as a key employee
or highest compensated employee of the organization. An
officer, director, or employee of a disregarded entity is a key
employee of the organization if she or he meets the $150,000
Test and Top 20 Test for the filing organization as a whole, and if,
for the Responsibility Test, the person has responsibilities,
powers, or influence over a discrete segment or activity of the
28
2023 Instructions for Form 990
disregarded entity that represents at least 10% of the activities,
assets, income, or expenses of the filing organization as a
whole, or has or shares authority to control or determine the
disregarded entity's capital expenditures, operating budget, or
compensation for employees that is at least 10% of the filing
organization's respective items as a whole. If an officer or
director of a disregarded entity also serves as an officer, director,
trustee, or key employee of the organization, report this
individual as an officer, director, trustee, or key employee, as
applicable, of the organization, and add the compensation, if
any, paid by the disregarded entity to this individual to the
compensation, if any, paid directly by the organization to this
individual. Report the total aggregate amount in column (D).
Compensation from common paymasters, payroll/reporting
agents, and unrelated organizations or individuals (except for
compensation from management companies or leasing
companies, and compensation described in Taxable
organization employee exception, later) must be treated as
reportable compensation in determining whether the dollar
thresholds are met for reporting (1) current or former employees
as current or former key employees or highest compensated
employees; or (2) former officers, directors, or trustees, on Form
990, Part VII, Section A. If the Form 990, Part VII, thresholds for
reporting are met, then the compensation from the common
paymaster, payroll/reporting agent, or unrelated organization or
individual must be reported as compensation from the filing
organization in Part VII. The compensation may also need to be
reported on Schedule J (Form 990), Part II (see the instructions
for Form 990, Part VII, Section A, line 5).
A disregarded entity must generally use the EIN of its
sole member. An exception applies to employment
TIP
taxes: for wages paid to employees of a disregarded
entity, the disregarded entity must file separate employment tax
returns and use its own EIN on such returns. See Regulations
sections 301.6109-1(h) and 301.7701-2(c)(2)(iv).
The use of a leasing company, common paymaster,
payroll/reporting agent, or other payroll service provider
!
CAUTION
doesn't relieve an employer of its obligation for
employment tax liabilities. The IRS strongly suggests that the
organization doesn't change its address to that of its payroll
service provider or other third-party payer. Doing so could limit
the organization’s ability to stay informed of tax matters, because
the IRS sends correspondence regarding problems with an
employer's account to the employer's address of record.
Alternatively, an employer may grant permission for a third-party
payer to receive copies of IRS correspondence by using Form
8822-B; Form 2848, Power of Attorney and Declaration of
Representative; or Form 8655, Reporting Agent Authorization, as
appropriate.
Management companies. Management companies, as
independent contractors, are reported on Form 990, Part VII,
(if at all) only in Section B. Independent Contractors, and aren't
reported on Schedule J (Form 990), Part II. If a current or former
officer, director, trustee, or key employee has a relationship
with a management company that provides services to the
organization, then the relationship may be reportable on
Schedule L (Form 990), Part IV. A key employee of a
management company must be reported as a current officer of
the filing organization if he or she is the filing organization's top
management official or top financial official or is designated
as an officer of the filing organization. However, that person
doesn't qualify as a key employee of the filing organization solely
on the basis of being a key employee of the management
company. If a current or former officer, director, trustee, key
employee, or highest compensated employee received
compensation from a management company that provided
services to the organization and was a related organization
during the tax year, then the individual's compensation from the
management company must be reported on Form 990, Part VII,
Section A, columns (E) and (F). If the management company
wasn't a related organization during the tax year, the individual’s
compensation from the management company isn't reportable in
Part VII, Section A. Questions pertaining to management
companies also appear on Form 990, Part VI, line 3; and
Schedule H (Form 990), Hospitals, Part IV.
Compensation from unrelated organizations or individuals.
If a current or former officer, director, trustee, key employee,
or highest compensated employee received or accrued
compensation or payments from an unrelated organization
(other than from management companies or leasing
companies, as discussed above) or an individual for services
rendered to the filing organization in that person's capacity as an
officer, director, trustee, or employee of the filing organization,
then the filing organization must report (subject to the Taxable
organization employee exception next) such amounts as
compensation from the filing organization if it has knowledge of
the arrangement, whether or not the unrelated organization or
the individual treats the amounts as compensation, grants,
contributions, or otherwise. Report such compensation from
unrelated organizations in Section A, columns (D) and (F), as
appropriate. If the organization can't distinguish between
reportable compensation and other compensation from the
unrelated organization, report all such compensation in column
(D).
Employee leasing companies and professional employer
organizations. In some cases, instead of hiring a management
company, an exempt organization “leases” one or more
employees from another company, which may be in the business
of leasing employees. Alternatively, the organization may enter
into an agreement with a professional employer organization to
perform some or all of the federal employment tax withholding,
reporting, and payment functions related to workers performing
services for the organization. The organization should treat
employees of an employee leasing company, a professional
employer organization (whether or not certified under the new
Certified Professional Employer Organization), or a management
company as the organization's own employees if such persons
have the status of employees of the filing organization under the
usual common law rules applicable in determining the
employer-employee relationship or who are treated as
employees of the filing organization for federal employment tax
purposes under section 3121(d). See Pub. 1779, Independent
Contractor or Employee, for more information. Otherwise, the
compensation paid to leasing companies and professional
employer organizations should be treated like compensation to a
management company for purposes of Form 990 compensation
reporting.
Taxable organization employee exception. Don't report as
compensation any payments from an unrelated taxable
organization that employs the individual and continues to pay the
individual's regular compensation while the individual provides
services without charge to the filing organization, but only if the
unrelated organization doesn't treat the payments as a charitable
contribution to the filing organization.
Column (A). For each person required to be listed, enter the
name on the top of each row and the person's title or position
with the organization on the bottom of the row. If more than one
title or position, list all. List persons in the order described under
Order of reporting, earlier. List each person on only one line.
Column (B). For each person listed in column (A), estimate the
average hours per week devoted to the organization during the
year. Entry of a specific number is required for a complete
answer. Enter “-0-” if applicable. Don't include statements such
as “as needed,” “as required,” or “40+.” If the average is less than
29
2023 Instructions for Form 990
1 hour per week, then the organization can enter a decimal
rounded to the nearest tenth (for example, 0.2 hours per week).
For each person listed in column (A), list below the dotted line
an estimate of the average hours per week (if any) devoted to
related organizations.
tax year either (1) by the organization in a lesser capacity other
than as an officer, director, trustee, key employee, or highest
compensated employee; or (2) by a related organization in any
capacity, but not by the filing organization, and if the person
received reportable compensation that exceeded the threshold
amount described above, then check only the “Former” box. For
example, don't check both the “Former” and “Officer” boxes for a
former president of the organization who wasn't an officer of the
organization during the tax year.
Whether or not the organization files Form 990 based on a
fiscal year, use the calendar year ending within the
organization's tax year to determine all “former” officers,
directors, trustees, key employees, and five highest
compensated employees (because their status depends on their
reportable compensation, which is reported for the calendar
year).
Column (C). For each person listed in column (A), check the
box that reflects the person's position with the organization
during the tax year. Don't check more than one box, unless the
person was both an officer and a director/trustee of the
organization during the tax year. For a former officer, director,
trustee, key employee, or highest compensated employee,
check only the “Former” box and indicate the former status in the
person's title.
“Current” officers, directors, trustees, key employees,
and highest compensated employees. A “current” officer,
director, or trustee is a person that was an officer, director, or
trustee at any time during the organization's tax year. A “current”
key employee or highest compensated employee is a person
who was an employee at any time during the calendar year
ending with or within the organization's tax year, and was a key
employee or highest compensated employee for such calendar
year.
If the organization files Form 990 based on a fiscal year, use
the fiscal year to determine the organization's “current” officers,
directors, and trustees. Whether or not the organization files
Form 990 based on a fiscal year, use the calendar year ending
with or within the organization's tax year to determine the
organization's “current” key employees and five highest
compensated employees.
Check the “Former” box for the former five highest
compensated employees only if all four conditions below apply.
1. The individual wasn't an employee of the organization at
any time during the calendar year ending with or within the
organization's tax year.
2. The individual was reported (or should have been
reported, under the instructions in effect for such years) on any
of the organization's Forms 990, 990-EZ, or 990-PF for 1 or more
of the 5 prior years as one of the five highest compensated
employees.
3. The individual's reportable compensation exceeded
$100,000 for the calendar year ending with or within the
organization's tax year.
Don't check the “Former” box if the person was a current
officer, director, or trustee at any time during the organization's
tax year, or a current key employee or among the five highest
compensated employees for the calendar year ending with or
within the organization's tax year. A current employee (other than
a current officer, director, trustee, key employee, or highest
compensated employee) can be reported on Form 990, Part VII,
and Schedule J (Form 990), Part II, as (1) a former director or
trustee because she or he served as a director or trustee within
the last 5 years, and received more than $10,000 in reportable
compensation for the calendar year ending with or within the
organization’s tax year in his or her capacity as a former director
or trustee; or (2) a former officer or key employee (but not as a
former highest compensated employee) because he or she
served as an officer or key employee within the last 5 years and
received more than $100,000 of reportable compensation for the
calendar year ending with or within the organization’s tax year. In
such a case, indicate the individual's former position in his or her
title (for example, “former president”).
4. The amount of the individual's reportable compensation
for such year would place him or her among the organization's
current five highest compensated employees if the individual
were an employee during the calendar year ending with or within
the organization's tax year.
Example 1. X was reported as one of Y Charity's five highest
compensated employees on one of Y's Forms 990, 990-EZ, or
990-PF from 1 of its 5 prior tax years. During Y’s tax year, X
wasn't a current officer, director, trustee, key employee, or
highest compensated employee of Y. X wasn't an employee of Y
during the calendar year ending with or within Y's tax year.
During this calendar year, X received reportable compensation in
excess of $100,000 from Y for past services and would be
among Y's five highest compensated employees if X were a
current employee. Y must report X as a former highest
compensated employee on Y's Form 990, Part VII, Section A, for
Y's tax year.
Example 2. T was reported as one of Y Charity's five highest
compensated employees on one of Y's Forms 990, 990-EZ, or
990-PF from 1 of its 5 prior tax years. During Y’s tax year, T
wasn't a current officer, director, trustee, key employee, or
highest compensated employee of Y, although T was still an
employee of Y during the calendar year ending with or within Y's
tax year. T received reportable compensation in excess of
$100,000 from Y and related organizations for such calendar
year. T isn't reportable as a former highest compensated
employee on Y's Form 990, Part VII, Section A, for Y’s tax year
because T was an employee of Y during the calendar year
ending with or within Y's tax year.
“Former” officers, directors, trustees, key employees,
and highest compensated employees. Check the “Former”
box for former officers, directors, trustees, and key employees
only if both conditions below apply.
The organization reported (or should have reported, applying
•
the instructions in effect for such years) an individual on any of
the organization's Forms 990, 990-EZ, or 990-PF for any 1 or
more of the 5 prior years in one or more of the following
capacities: officer, director, trustee, or key employee.
The individual received reportable compensation, from the
•
organization and/or related organizations, in the calendar year
ending with or within the organization's current tax year in
excess of the threshold amount ($100,000 for former officers and
key employees; $10,000 paid to former directors and trustees for
services rendered in their former capacity as directors or
trustees).
Example 3. Z was reported as one of Y Charity's key
employees on Y's Form 990 filed for 1 of its 5 prior tax years.
During Y’s tax year, Z wasn't a current officer, director, trustee,
key employee, or highest compensated employee of Y. For the
calendar year ending with or within Y’s tax year, Z received
reportable compensation of $90,000 from Y as an employee
(and no reportable compensation from related organizations).
Because Z received less than $100,000 reportable
If a person was reported (or should have been reported) as
an officer, director, trustee, or key employee on any of the
organization's prior five Forms 990, 990-EZ, or 990-PF, and if the
person was still employed at any time during the organization's
30
2023 Instructions for Form 990
compensation for the calendar year ending with or within Y’s tax
year from Y and its related organizations, Y isn't required to
report Z as a former key employee on Y's Form 990, Part VII,
Section A, for Y’s tax year.
pertinent instructions and definitions for Form 990, Part VII,
Section A, columns (E) and (F).
Short year and final returns. For a short year return in
which there is no calendar year that ends with or within the short
year, leave columns (D) and (E) blank, and don't report any key
employees, highest compensated employees, or highest
compensated independent contractors (because such
persons are determined according to compensation received in
the calendar year ending with or within the tax year for which the
return is filed), unless the return is a final return. If the return is a
final return, report the compensation that is reportable
compensation on Forms W-2 and 1099 for the short year, from
both the filing organization and related organizations, whether or
not Forms W-2 or 1099 have been filed yet to report such
compensation.
Columns (D) and (E). Enter the amounts required to be
reported (whether or not actually reported) in box 1 or 5 of Form
W-2 (whichever is greater), box 1 of Form 1099-NEC, and/or
box 6 of Form 1099-MISC, issued to the person for the calendar
year ending with or within the organization's tax year. Enter an
amount for each person in each of columns (D) and (E). Enter
“-0-” if the person received no reportable compensation. For
institutional trustees that don't receive a Form 1099-NEC or
1099-MISC, enter the amount that the organization would have
reported in box 1 of Form 1099-NEC or box 6 of Form
1099-MISC if the form(s) had been required.
Column (F). Other compensation generally includes
compensation not currently reportable in box 1 or 5 of Form W-2,
in box 1 of Form 1099-NEC, or in box 6 of Form 1099-MISC,
including nontaxable benefits other than disregarded benefits, as
discussed under Disregarded benefits, later, and in the
instructions for Schedule J (Form 990), Part II. Treat amounts
paid or accrued under a deferred compensation plan, or held
by a deferred compensation trust, that is established,
sponsored, or maintained by the organization (or a related
organization) as paid, accrued, or held directly by the
organization (or the related organization). Deferred
Reportable compensation paid to the person by a related
organization at any time during the entire calendar year ending
with or within the filing organization's tax year should be reported
in column (E). If the related organization was related to the filing
organization for only a portion of the tax year, then the filing
organization may choose to report only compensation paid or
accrued by the related organization during the time it was
actually related. If the filing organization reports compensation
on this basis, it must explain on Schedule O (Form 990) and
state the period during which the related organization was
related.
$10,000-per-related-organization exception. For purposes
of column (E), the organization need not include payments from
a single related organization if it is less than $10,000 for the
calendar year ending with or within the organization's tax year,
except to the extent paid to a former director or former trustee
of the filing organization for services as a director or trustee of
the organization. For example, if an officer of the organization
received compensation of $6,000, $15,000, and $50,000 from
three separate related organizations for services provided to
those organizations, the organization needs to report only
$65,000 in column (E) for the officer.
compensation to be reported in column (F) includes
compensation that is earned or accrued in one year and deferred
to a future year, whether or not funded, vested, qualified or
nonqualified, or subject to a substantial risk of forfeiture. But
don't report in column (F) a deferral of compensation that causes
an amount to be deferred from the calendar year ending with or
within the tax year to a date that isn't more than 21/2 months after
the end of the calendar year ending with or within the tax year if
such compensation is currently reported as reportable
compensation.
Enter an amount in column (F) for each person listed in Part
VII, Section A. (Enter “-0-” if applicable.) Report a reasonable
estimate if actual numbers aren't readily available.
Volunteer exception. The organization need not report in
column (E) or (F) compensation from a related organization paid
to a volunteer officer, director, or trustee of the filing
organization if the related organization is a for-profit organization;
isn't owned or controlled, directly or indirectly, by the
organization or one or more related tax-exempt organizations;
and doesn't provide management services for a fee to the
organization.
Other compensation paid to the person by a related
organization at any time during the calendar year ending with or
within the filing organization's tax year should be reported in
column (F). If the related organization was related to the filing
organization for only a portion of the tax year, then the filing
organization may choose to report only other compensation paid
or accrued by the related organization during the time it was
actually related. If the filing organization reports compensation
on this basis, it must explain on Schedule O (Form 990) and
state the period during which the related organization was
related.
Bank or financial institution trustee. If the organization is a
trust with a bank or financial institution trustee that is also a
trustee of another trust, it need not report in column (E) or (F)
compensation from the other trust for services provided as the
trustee to the other trust, because the other trust isn't a related
organization (see the Glossary definition of related
The following items of compensation provided by the filing
organization and related organizations must be reported as
“other compensation” in column (F) in all cases regardless of the
amount, to the extent they aren't included in column (D).
organization).
Reasonable effort. The organization isn't required to report
compensation from a related organization to a person listed on
Form 990, Part VII, Section A, if the organization is unable to
secure the information on compensation paid by the related
organization after making a reasonable effort to obtain it, and if
it is unable to make a reasonable estimate of such
1. Tax-deferred contributions by the employer to a qualified
defined contribution retirement plan.
2. The annual increase or decrease in actuarial value of a
qualified defined benefit plan, whether or not funded or vested.
compensation. If the organization makes reasonable efforts but
is unable to obtain the information or provide a reasonable
estimate of compensation from a related organization in column
(E) or (F), then it must report the efforts undertaken on
Schedule O (Form 990). An example of a reasonable effort is for
the organization to distribute a questionnaire annually to each of
its current and former officers, directors, trustees, key
employees, and highest compensated employees that includes
the name and title of each person reporting information, blank
lines for those persons' signatures and signature dates, and the
3. The value of health benefits provided by the employer, or
paid by the employee with pre-tax dollars, that aren't included in
reportable compensation. For this purpose, health benefits
include (1) payments of health benefit plan premiums, (2)
medical reimbursement and flexible spending programs, and (3)
the value of health coverage (rather than actual benefits paid)
provided by an employer's self-insured or self-funded
arrangement. Health benefits include dental, optical, drug, and
medical equipment benefits. They don't include disability or
31
2023 Instructions for Form 990
long-term care insurance premiums or allocated benefits for this
purpose.
compensation (excluding the excludable items below $10,000) is
$11,000. Under these circumstances, the officer's dependent
care, group life, and tuition assistance items need not be
reported as other compensation on Form 990, Part VII,
Section A, column (F), and the officer's total reportable and other
compensation ($142,000) isn't reportable on Schedule J (Form
990). If, instead, the officer's reportable compensation from Y
were $30,000 rather than $21,000, then the officer's total
reportable and other compensation ($151,000) would be
reportable on Schedule J (Form 990), including the dependent
care, group life, and tuition assistance items, even though these
items wouldn't have to be reported as other compensation on
Form 990, Part VII.
Example 2. Organization S provides health benefits to B (its
CEO) under a self-insured medical reimbursement plan. The
value of the plan benefits for the tax year is $10,000, which
represents the estimated cost of providing coverage for the year
if the employer paid a third-party insurer for similar benefits, as
determined on an actuarial basis. The actual benefits paid for B
and B's family for the year are $30,000. If the benefits aren't
reportable compensation to B, then Organization S must report
the $10,000 value of plan benefits as other compensation to B
on Form 990, Part VII, Section A, column (F).
4. Tax-deferred contributions by the employer and employee
to a funded nonqualified defined contribution plan, and deferrals
under an unfunded nonqualified defined contribution plan,
whether or not such plans are vested or subject to a substantial
risk of forfeiture. See the examples in the Schedule J (Form 990),
Part II, instructions.
5. The annual increase or decrease in actuarial value of a
nonqualified defined benefit plan, whether or not funded, vested,
or subject to a substantial risk of forfeiture.
$10,000-per-item exception. Except for the five items listed
above, neither the organization nor a related organization is
required to report on Form 990, Part VII, Section A, any item of
“other compensation” (as set forth in the compensation table
beginning later) if its total value is less than $10,000 for the
calendar year ending with or within the organization's tax year.
Amounts excluded under the two separate $10,000
exceptions (the $10,000-per-related-organization and
$10,000-per-item exceptions) are to be excluded from
compensation in determining whether an individual's total
reportable compensation and other compensation exceeds
the thresholds set forth on Form 990, Part VII, Section A, line 4. If
the individual's total compensation exceeds the relevant
threshold, then the amounts excluded under the $10,000
exceptions are included in the individual's compensation
reported on Schedule J (Form 990). Thus, the total amount of
compensation reported on Schedule J (Form 990) can be higher
than the amount reported on Form 990, Part VII, Section A.
Disregarded benefits. Disregarded benefits under Regulations
section 53.4958-4(a)(4) need not be reported in column (F).
Disregarded benefits generally include fringe benefits excluded
from gross income under section 132. These benefits include:
No-additional cost service,
•
•
•
•
•
•
•
Qualified employee discount,
Working condition fringe,
De minimis fringe,
The $10,000-per-item exception applies separately for each
item of other compensation from the organization and from each
related organization.
Qualified transportation fringe,
Qualified retirement planning services, and
Qualified military base realignment and closure fringe.
Example 1. Organization X provides the following
For descriptions of each of these disregarded benefits, see
compensation to its current officer.
the Instructions for Schedule J (Form 990).
$110,000 Reportable compensation (including pre-tax employee
contributions of $5,000 to a qualified defined contribution
retirement plan and $2,500 to a qualified health benefit plan)
Short year and final returns. For a short year return in which
there is no calendar year that ends with or within the short year,
leave column (F) blank, unless the return is a final return. If the
return is a final return, report the other compensation for the
short year from both the filing organization and related
organizations.
5,000 Tax-deferred employer contribution to qualified defined
contribution retirement plan
5,000 Nontaxable employer contributions to health benefit plan
4,000 Nontaxable dependent care assistance
Compensation table for reporting on Part VII, Section A; or
Schedule J (Form 990), Part II. The following table may be
useful in determining how and where to report items of
compensation on Form 990, Part VII, Section A, and on
Schedule J (Form 990), Part II. The list isn't comprehensive but
covers most items for most organizations. Many items of
compensation may or may not be taxable or currently taxable,
depending on the plan or arrangement adopted by the
organization and other circumstances. The list attempts to take
into account these varying facts and circumstances. The list is
merely a guideline to report amounts for those persons required
to be listed. In all cases, items included in box 1 or 5 of Form
W-2 (whichever is greater), in box 1 of Form 1099-NEC, and/or in
box 6 of Form 1099-MISC are required to be reported on Part
VII, Section A, and, for applicable persons, Schedule J (Form
990), Part II, column (B). Items listed as “taxable” or “taxable in
current year” are currently includible in reportable compensation,
but aren't necessarily subject to federal income tax in the current
year.
500 Nontaxable group life insurance premium
Organization Y, a related organization, also provides
compensation to the officer as follows.
$21,000 Reportable compensation (including $1,000 pre-tax
employee contribution to qualified defined contribution
retirement plan)
1,000 Tax-deferred employer contribution to qualified defined
contribution retirement plan
5,000 Nontaxable tuition assistance
The officer receives no compensation in the capacity as a
former director or trustee of X, and no unrelated organization
pays the officer for services provided to X. The organization can
disregard as other compensation (a) the $4,500 in dependent
care and group life insurance payments from the organization
(under the $10,000-per-item exception), and (b) the $5,000 in
tuition assistance from the related organization (under the
$10,000-per-item exception) in determining whether the officer's
total reportable and other compensation from the organization
and related organizations exceeds $150,000. In this case, total
reportable compensation is $131,000, and total other
Any item listed in the following compensation table that isn't
followed by a star (x) or asterisk (*) in any column shouldn't be
reported on Part VII, Section A; or in Schedule J (Form 990), Part
II.
32
2023 Instructions for Form 990
Where To Report
Form 990, Part VII, Section A, column (D) or (E)
Form 990, Part VII, Section A, column
(F)
Type of Compensation
Schedule J
Schedule J (Form Schedule J (Form Schedule J (Form Schedule J (Form
(Form 990), Part 990), Part II,
II, column B(i) column B(ii)
990), Part II,
column B(iii)
990), Part II,
column C
990), Part II,
column D
Base salary/wages/fees paid
x
x
Base salary/wages/fees deferred (taxable)
Base salary/wages/fees deferred (nontaxable)
Bonus paid (including signing bonus)
Bonus deferred (taxable in current year)
Bonus deferred (not taxable in current year)
Incentive compensation paid
x
x
x
x
x
x
Incentive compensation deferred (taxable in
current year)
Incentive compensation deferred (not taxable in
current year)
x
Severance or change of control payments made
Sick pay paid by employer
x
x
x
Third-party sick pay
Other compensation amounts deferred (taxable in
current year)
x
Other compensation amounts deferred (not
taxable in current year)
x
x
x
Tax gross-ups paid
x
x
Vacation/sick leave cashed out
Stock options at time of grant
Stock options at time of exercise
x
x
Stock awards paid by taxable organizations
substantially vested
Stock awards paid by taxable organizations not
substantially vested
Stock equivalents paid by taxable organizations
substantially vested
x
x
Stock equivalents paid by taxable organizations
not substantially vested
x
x
Loans—forgone interest or debt forgiveness
Contributions (employer) to qualified retirement
plan
Contributions (employee deferrals) to section
401(k) plan
x
x
Contributions (employee deferrals) to section
403(b) plan
Qualified or nonqualified retirement plan defined
benefit accruals (reasonable estimate of increase
or decrease in actuarial value)
x
Qualified retirement (defined contribution) plan
investment earnings or losses (not reportable or
other compensation)
Taxable distributions from qualified retirement
plan, including section 457(b) eligible
governmental plan (reported on Form 1099-R but
not reportable or other compensation on Form 990)
33
2023 Instructions for Form 990
Where To Report
Form 990, Part VII, Section A, column (D) or (E)
Form 990, Part VII, Section A, column
(F)
Type of Compensation
Schedule J (Form Schedule J (Form Schedule J (Form Schedule J (Form Schedule J (Form
990), Part II,
column B(i)
990), Part II,
column B(ii)
990), Part II,
column B(iii)
990), Part II,
column C
990), Part II,
column D
Distributions from nongovernmental section 457(b)
plan
x
Amounts includible in income under section 457(f)
x
x
Amounts deferred by employer or employee (plus
earnings) under section 457(b) plan (substantially
vested)
Amounts deferred by employer or employee under
section 457(b) or 457(f) plan (not substantially
vested)
x
x
Amounts deferred under nonqualified defined
contribution plans (substantially vested)
x
x
x
Amounts deferred under nonqualified defined
contribution plans (not substantially vested)
Earnings or losses of nonqualified defined
contribution plan (substantially vested)
Earnings or losses of nonqualified defined
contribution plan (not substantially vested)
Scholarships and fellowship grants (taxable)
Health benefit plan premiums paid by employer
(taxable)
x
x
Health benefit plan premiums paid by the employee
(taxable)
Health benefit plan premiums (nontaxable)
x
x
Medical reimbursement and flexible spending
programs (taxable)
x
Medical reimbursement and flexible spending
programs (nontaxable)
Other health benefits (taxable)
x
x
Other health benefits (nontaxable)
x
Life, disability, or long-term-care insurance (taxable)
Life, disability, or long-term-care insurance
(nontaxable)
*
Split-dollar life insurance (see Notice 2002-8, 2002-1
C.B. 398)
x
x
Housing provided by employer or ministerial housing
allowance (taxable)
Housing provided by employer or ministerial housing
allowance (nontaxable) (but see Schedule J
instructions regarding working condition fringes)
*
Personal legal services (taxable)
x
x
x
x
x
Personal legal services (nontaxable)
Personal financial services (taxable)
Personal financial services (nontaxable)
Dependent care assistance (taxable)
Dependent care assistance (nontaxable)
Adoption assistance (taxable)
*
*
*
*
Adoption assistance (nontaxable)
Tuition assistance for family (taxable)
34
2023 Instructions for Form 990
Where To Report
Form 990, Part VII, Section A, column (D) or (E)
Form 990, Part VII, Section A, column
(F)
Type of Compensation
Schedule J (Form Schedule J (Form Schedule J (Form Schedule J (Form Schedule J (Form
990), Part II,
column B(i)
990), Part II,
column B(ii)
990), Part II,
column B(iii)
990), Part II,
column C
990), Part II,
column D
Tuition assistance for family (nontaxable)
Cafeteria plans (nontaxable health benefit)
Cafeteria plans (nontaxable benefit other than health)
Liability insurance (taxable)
*
x
*
x
x
x
x
x
x
x
x
x
Employer-provided automobile (taxable)
Employer-subsidized parking (taxable)
Travel (taxable)
Moving (taxable)
Meals and entertainment (taxable)
Social club dues (taxable)
Spending account (taxable)
Gift cards
Disregarded benefits under Regulations section
53.4958-4(a)(4) (see Schedule J, Part II, instructions)
Note. Items marked with an asterisk (*) instead of a star (x) are
excludable from Form 990, Part VII, Section A, column (F), if
below $10,000.
$10,000 of reportable compensation (Part VII, Section A,
columns (D) and (E)) during the year from the organization or
related organizations. To determine whether an individual
received or accrued more than $10,000 in reportable
compensation solely in the capacity as a former trustee or
director of the organization, add the amounts reported in box 1 of
all Forms 1099-NEC, and, if applicable, box 1 or 5 of all Forms
W-2 (whichever is greater), and/or issued to the individual by the
organization and all related organizations, to the extent that such
amounts relate to the individual's past services as a trustee or
director of the organization and not of a related organization. The
$10,000-per-related-organization exception doesn't apply for this
purpose.
Line 1b. Report the subtotals of compensation from the
Section A, line 1a, table in line 1b, columns (D), (E), and (F).
Line 1c. Report the subtotals of compensation from duplicate
Section A tables for filers that report more than 25 persons in the
Section A, line 1a, table in line 1c, columns (D), (E), and (F).
Line 1d. Add the totals of lines 1b and 1c in line 1d for columns
(D), (E), and (F).
Line 2. Report the total number of individuals, both those listed
in the Part VII, Section A, table, and those not listed, to whom the
filing organization (not related organizations) paid over
$100,000 in reportable compensation during the tax year.
Line 4. Complete Schedule J (Form 990) for each individual
listed in Section A who received or accrued more than $150,000
of reportable and other compensation from the organization and
related organizations. To determine whether any listed individual
received or accrued more than $150,000 of reportable and other
compensation, add all compensation included in Part VII,
Section A, columns (D), (E), and (F), but disregard any
Line 3. Complete Schedule J (Form 990) for each of the
following persons.
Each individual listed in Part VII, Section A, as a former
•
officer, former key employee, or former highest
compensated employee. To determine whether an individual
received more than $100,000 in reportable compensation in
the aggregate from the organization and related organizations,
add the amounts reported in box 1 or 5 of all Forms W-2
(whichever is greater), in box 1 of all Forms 1099-NEC, and/or in
box 6 of all Forms 1099-MISC issued to the individual by the
organization and all related organizations (disregarding amounts
from a related organization if below $10,000) for the calendar
year ending with or within the organization's tax year.
decreases in the actuarial value of defined benefit plans.
The following chart explains which officers, directors,
trustees, key employees, and highest compensated
employees must be reported on Form 990, Part VII, Section A,
and on Schedule J (Form 990). See also Line 5, later, for
additional individuals who must be reported on Schedule J
(Form 990), Part II.
Each individual that received, solely in the capacity as a
•
former director or former trustee of the organization, more than
35
2023 Instructions for Form 990
Matrix for Part VII, Section A, Lines 3 and 4
Enter on Form 990, Part VII,
Section A . . .
Enter on Schedule J (Form 990),
Part II . . .
Position
Current or former
If reportable and other compensation is
greater than $150,000 in the aggregate
from organization and related
organizations (don't report institutional
trustees)
Current
All
Directors and Trustees
If reportable compensation in capacity
as former director or trustee is greater If listed on Form 990, Part VII, Section A
Former
Current
than $10,000 in the aggregate from
organization and related organizations
(don't report institutional trustees)
If reportable and other compensation is
greater than $150,000 in the aggregate
from organization and related
organizations
All
Officers
If reportable compensation is greater
than $100,000 in the aggregate from
organization and related organizations
Former
Current
Former
If listed on Form 990, Part VII, Section A
All
All
If reportable compensation is greater
than $100,000 in the aggregate from
organization and related organizations
Key Employees
If listed on Form 990, Part VII, Section A
If reportable and other compensation is
greater than $150,000 in the aggregate
from organization and related
organizations
If reportable compensation is greater
than $100,000 in the aggregate from
organization and related organizations
Current
Former
Other Five Highest Compensated
Employees
If reportable compensation is greater
than $100,000 in the aggregate from
organization and related organizations
If listed on Form 990, Part VII, Section A
management official of the organization, must be listed as an
officer of the organization in Part VII, Section A. However, the
amounts paid by B to A require that the organization answer
“Yes” on line 5 and complete Schedule J (Form 990) about A.
Example 2. C is an attorney employed by a law firm that isn't
a related organization to the organization. The organization and
the law firm enter into an arrangement where C serves the
organization, a section 501(c)(3) legal aid society pro bono, on a
full-time basis as its vice president and as a board member while
continuing to receive her regular compensation from the law firm.
The organization doesn't provide any compensation to C for the
services provided by C to the organization, and doesn't report
C's compensation on Form W-2, Form 1099-NEC, or Form
1099-MISC. The law firm doesn't treat any part of C's
Line 5. Complete Schedule J (Form 990) for any individual
listed on Form 990, Part VII, Section A, if the person receives or
accrues compensation from an unrelated organization (other
than from management companies and leasing companies, as
discussed earlier) for services rendered to the filing organization
in the person's capacity as an officer, director, trustee, or
employee of the filing organization. Also, specify on Schedule J
(Form 990), Part III, the name of the unrelated organization, the
type and amount of compensation it paid or accrued, and the
person receiving or accruing such compensation. See
Compensation from unrelated organizations or individuals,
earlier.
For purposes of line 5, disregard:
1. Payments from a deferred compensation trust or plan
established, sponsored, or maintained by the organization (or a
related organization), and deferred compensation held by such
trust or plan;
compensation as a charitable contribution to the legal aid
society. Under these circumstances, the amounts paid by the law
firm to C don't require that the organization answer “Yes” on
line 5 about C. Also, nothing in these facts would prevent C from
qualifying as an independent member of the organization's
governing body for purposes of Form 990, Part VI, line 1b.
2. Payments from a common paymaster for services
provided to the organization (or to a related organization); or
3. Payments from an unrelated taxable organization that
employs the individual and continues to pay the individual's
regular compensation while the individual provides services
without charge to the filing organization, but only if the unrelated
organization doesn't treat the payments as a charitable
contribution to the filing organization.
Example 3. D, a volunteer director of the organization, is
also the sole owner and CEO of M management company (an
unrelated organization), which provides management services to
the organization. The organization pays M an annual fee of
$150,000 for management services. Under the circumstances,
the amounts paid by M to D (in the capacity as owner and CEO
of M) don't require that the organization answer “Yes” on line 5
regarding D. However, the organization must report the
transaction with M, including the relationship between D and M,
on Schedule L (Form 990), Part IV. Also, D doesn't qualify as an
independent member of the organization's governing body
because D receives indirect financial benefits from the
organization through M that are reportable on Schedule L (Form
990), Part IV.
Example 1. A is the CEO (and the top management
official) of the organization. In addition to compensation paid by
the organization to A, A receives payments from B, an unrelated
corporation (using the definition of relatedness on Schedule R
(Form 990)), for services provided by A to the organization. B
also makes rent payments for A's personal residence. The
organization is aware of the compensation arrangement between
A and B, and doesn't treat the payments as paid by the
organization for Form W-2 reporting purposes. A, as the top
36
2023 Instructions for Form 990
purposes. Also report here any revenue that is excludable from
gross income other than by section 512, 513, or 514, such as
interest on state and local bonds that is excluded from tax by
section 103.
Section B. Five Highest Compensated
Independent Contractors
Complete this table for the five highest compensated
independent contractors that received more than $100,000 in
compensation for services, whether professional or other
services, from the organization. Independent contractors include
organizations as well as individuals and can include professional
fundraisers, law firms, accounting firms, publishing companies,
management companies, and investment management
companies. Don't report public utilities or insurance providers as
independent contractors. See Pub. 1779, and Pub. 15-A,
Employer's Supplemental Tax Guide, for distinguishing
employees from independent contractors.
Column (C). In column (C), report any unrelated business
revenue received by the organization during the tax year from
an unrelated trade or business, unless that revenue is
reportable in Part VIII, column (D). See Pub. 598 and the
Instructions for Form 990-T for more information.
A section 501(c)(3) organization that is an S corporation
shareholder must treat all allocations of income from the
TIP
S corporation as unrelated business income. Gain on
the disposition of stock is also treated as unrelated business
income. See section 512(e).
Column (C). Enter the amount the organization paid, whether
reported in box 1 of Form 1099-NEC, in box 6 of Form
1099-MISC, or paid under the parties' agreement or applicable
state law, for the calendar year ending with or within the
organization's tax year.
Column (D). In column (D), report any revenue excludable from
unrelated business income by section 512, 513, or 514.
Examples of such revenue include receipts from the sale of
donated merchandise, interest (unless debt-financed), and
receipts from bingo games.
Neither Form 5500 nor DOL Forms LM-2 or LM-3, Labor
Organization Annual Report, should be substituted for the Form
990, Part VIII or IX.
For a short year return in which there is no calendar year that
ends with or within the short year, don't report any information in
columns (A) through (C), unless the return is a final return. If the
return is a final return, report the compensation paid to the
independent contractor(s) under the parties' agreement during
the short year or the compensation that is reportable
Line 1. In General
compensation on Form 1099 for the short year, whether or not
Form 1099 has been filed yet to report such compensation.
On lines 1a through 1f, report cash and noncash amounts
received as voluntary contributions, gifts, grants, or other
similar amounts from the general public, governmental units,
foundations, and other exempt organizations. The general public
includes individuals, corporations, trusts, estates, and other
entities. Voluntary contributions are payments, or the part of any
payment, for which the payer (donor) doesn't receive fair market
value (FMV) from the recipient (donee) organization.
Contributions are reported on line 1 regardless of whether they
are deductible by the contributor. The noncash portion of
contributions reported on lines 1a through 1f is also reported on
line 1g.
Compensation includes fees and similar payments to
independent contractors but not reimbursement of expenses
unless incidental to providing the service. However, for this
purpose, the organization must report gross payments to the
independent contractor that include expenses and fees if the
expenses aren't separately reported to the organization.
Form 1099-NEC and/or Form 1099-MISC may be
required to be issued for payments to an independent
contractor, with compensation reported in box 1 of Form
TIP
1099-NEC and/or box 6 of Form 1099-MISC.
Report gross amounts of contributions collected in the
organization's name by fundraisers.
Part VIII. Statement of Revenue
Check the box in the heading of Part VIII if Schedule O (Form
990) contains any information pertaining to this part.
Report all expenses of raising contributions on Part IX,
column (D), Fundraising expenses. The organization must enter
on Part IX, line 11e, fees for professional fundraising services
relating to the gross amounts of contributions collected in the
organization's name by professional fundraisers.
Column (A). All organizations must complete column (A),
reporting their gross receipts for all sources of revenue. All
organizations (except section 527 political organizations) must
complete columns (B) through (D), which must add up to the
amount in column (A) for each line in Part VIII. Refer to the
specific instructions in this part for completing each column.
Report on line 1 assets contributed to the organization by
another entity in the course of the entity's liquidation, dissolution,
or termination.
If the organization enters an amount in column (A) for
Report the value of noncash contributions at the time of the
donation. For example, report the FMV of a donated car at the
time the car was received as a donation.
lines 2a through 2e or lines 11a through 11c, it must also
enter a corresponding business activity code from
TIP
Business Activity Codes, later. If none of the listed codes, or
other 6-digit codes listed on the North American Industry
Classification System (NAICS) website at 2022 NAICS Census
these codes doesn't imply that the business activity is unrelated
to the organization's exempt purpose. For nonstore retailers,
select the principal business activity (PBA) code by the primary
product that your establishment sells. For example,
establishments primarily selling prescription and
Don't net losses from uncollectible pledges from prior years,
refunds of contributions and service revenue from prior years, or
reversal of grant expenses from prior years on line 1. Rather,
report any such items as “Other changes in net assets or fund
balances” on Part XI, line 9, and explain on Schedule O (Form
990).
The organization must report any contributions of
conservation easements and other qualified conservation
contributions consistently with how it reports revenue from
such contributions in its books, records, and financial
statements.
non-prescription drugs, select PBA code 456110 Pharmacies
and drug retailers.
Column (B). In column (B), report all revenue from activities
substantially related to the organization's exempt purposes. Use
of revenue for the organization's exempt purposes doesn't make
the activity that produced the income (for example, fundraising
activity) substantially related to the organization's exempt
Reporting on line 1 according to ASC 958 is generally
acceptable (though not required) for Form 990 purposes, but the
value of donated services or use of materials, equipment, or
facilities may not be reported. An organization that receives a
37
2023 Instructions for Form 990
grant to be paid in future years should, according to ASC 958,
report the grant's present value on line 1. Accruals of present
value increments to the unpaid grant should be reported on
line 1 in future years.
concert series before they go on sale to the general public, but
must pay the same price as any other member of the public.
They are also entitled to attend a number of rehearsals each
season without charge. Under these circumstances, M's receipts
from members are contributions reported on line 1b.
Membership dues that aren't contributions because they
compare reasonably with available benefits are reported on
line 2, Program Service Revenue.
Membership dues can consist of both contributions and
payment for goods and services. In that case, the portion of the
membership dues that is a payment for goods or services should
be reported on line 2, Program Service Revenue. The portion
that exceeds the FMV of the goods or services provided should
be reported on line 1b.
The portion of membership dues attributable to certain
membership benefits that are considered to be insubstantial (for
example, low-cost articles, free or discounted admission to the
organization's activities, discounts on purchases from the
organization's gift shop, free or discounted parking) may be
reported as contributions on line 1, rather than as payments for
goods or services on line 2. See Pub. 1771, Charitable
Contributions—Substantiation and Disclosure Requirements, for
more information on insubstantial membership benefits that
need not be valued or reported.
Contributions don't include the following.
Grants, fees, or other support from governmental units,
•
foundations, or other exempt organizations that represent a
payment for a service, facility, or product that primarily gives
some economic or physical benefit to the payer.
The portion of any fundraising solicitation representing
•
payment for goods, services, or anything else at retail value.
Unreimbursed expenses of officers, employees, or
•
volunteers. (See the explanations of charitable contributions
and employee business expenses in Pub. 526 and Pub. 463,
respectively.)
Payments received from employers for welfare benefits under
•
plans described in sections 501(c)(9), (17), and (18). Report
these amounts on line 2, Program Service Revenue.
Donations of services such as the value of donated
•
advertising space, broadcast air time (including donated public
service announcements), or discounts on services or donations
of use of materials, equipment, or facilities, even though
reporting donated services and facilities as items of revenue and
expense is called for in certain circumstances by GAAP. The
optional reporting of donated services and facilities is discussed
in the instructions for Form 990, Part III.
Line 1c. Enter the total amount of contributions received from
fundraising events, which includes, but isn't limited to, dinners,
auctions, and other events conducted for the sole or primary
purpose of raising funds for the organization's exempt activities.
Report contributions received from gaming activities on line 1f,
not on line 1c.
Example. An organization holds a dinner, charging $400 per
person for the meal. The dinner has a retail value of $160. A
person who purchases a ticket is really purchasing the dinner for
$160 and making a contribution of $240. The contribution of
$240, which is the difference between the buyer's payment and
the retail value of the dinner, would be reported on line 1c and
again on line 8a (within parentheses). The revenue received
($160 retail value of the dinner) would be reported in the
right-hand column on line 8a.
If a contributor gives more than $160, that person would be
making a contribution of the difference between the dinner's
retail value of $160 and the amount actually given. Rev. Rul.
67-246, 1967-2 C.B. 104, as distinguished by Rev. Rul. 74-348,
1974-2 C.B. 80, explains this principle in detail. See also the
instructions for lines 8a through 8c and Pub. 526.
Organizations that report more than $15,000 total on lines 1c
and 8a must also answer “Yes” on Part IV, line 18, and complete
Part II of Schedule G (Form 990).
Example 1. A hotel in a city's entertainment district donates
100 “right to use” certificates covering 15 hotel rooms a night to
disaster relief organization B. B then uses these certificates as
emergency housing in furtherance of its exempt purposes. B
shouldn't report the value of this contribution on line 1 (or on any
other line in Part VIII), because this is a donation of services and
use of facilities to B. Similarly, if B were to auction off the
certificates as part of a fundraising event, B shouldn't report the
value of the contributed certificates on line 1 (or on any other line
in Part VIII). Rather, it should report gross income from the
auction on Part VIII, line 8a.
Example 2. Organization C purchases 100 “right to use”
certificates (as described in Example 1 above) from the hotel,
then contributes them to disaster relief organization B and
designates that they be used for disaster relief purposes. B
should report the FMV of these certificates on line 1. If B were to
auction off the certificates as part of a fundraising event, then
use the proceeds for disaster relief purposes, B should report the
gross income from the auction on Part VIII, line 8a; report the
FMV of the contributed certificates on line 8b; and report the
difference between lines 8a and 8b on line 8c.
Line 1a. Enter on line 1a the total amount of contributions
received indirectly from the public through solicitation campaigns
conducted by federated fundraising agencies and similar
fundraising organizations (such as from a United Way
organization). Federated fundraising agencies normally conduct
fundraising campaigns within a single metropolitan area or some
part of a particular state, and allocate part of the net proceeds to
each participating organization on the basis of the donors'
individual designations and other factors.
Line 1d. Enter on line 1d amounts contributed to the
organization by related organizations. Don't report amounts
reportable on line 1a.
Line 1e. Enter the total amount of contributions in the form of
grants or similar payments from local, state, or federal
government sources, as well as foreign governments. Include
grant amounts from U.S. territories.
Whether a payment from a governmental unit is labeled a
“grant” or a “contract” doesn't determine where the payment
should be reported on Part VIII. Rather, a grant or other payment
from a governmental unit is reported here if its primary purpose
is to enable the organization to provide a service to, or maintain
a facility for, the direct benefit of the public rather than to serve
the direct and immediate needs of the governmental unit. In
other words, the payment is recorded on line 1e if the general
public receives the primary and direct benefit from the payment
and any benefit to the governmental unit is indirect and
insubstantial as compared to the public benefit.
Federated fundraising agencies must, like all other filers,
identify the sources of contributions made to them on
lines 1a through 1g.
TIP
Line 1b. Report on line 1b membership dues and assessments
that represent contributions from the public rather than
payments for benefits received or payments from affiliated
organizations.
Example. M is an organization whose primary purpose is to
support the local symphony orchestra. Members have the
privilege of purchasing subscriptions to the symphony's annual
38
2023 Instructions for Form 990
The following are examples of governmental grants and other
payments that are treated as contributions and reported on
line 1e.
Program service revenue. Program service revenue includes
income earned by the organization for providing a government
agency with a service, facility, or product that benefited that
government agency directly rather than benefiting the public as a
whole. Program service revenue also includes tuition received by
a school; revenue from admissions to a concert or other
performing arts event or to a museum; royalties received as
author of an educational publication distributed by a commercial
publisher; interest income on loans a credit union makes to its
members; payments received by a section 501(c)(9)
Payments by a governmental unit for the construction or
•
maintenance of library or museum facilities open to the public.
Payments by a governmental unit to nursing homes to provide
•
care to their residents (but not Medicare/Medicaid or similar
payments made on behalf of the residents).
Payments by a governmental unit to child placement or child
•
guidance organizations under government programs to better
serve children in the community.
organization from participants or employers of participants for
health and welfare benefits coverage; insurance premiums
received by a fraternal beneficiary society; and registration fees
received in connection with a meeting or convention.
Line 1f. Enter all other contributions, gifts, and similar
amounts the organization received from sources not reported
separately on lines 1a through 1e. This amount includes
contributions from donor advised funds (unless the
sponsoring organization is a related organization) and from
gaming activities. For a section 501(c)(21) trust, enter the total
contributions received under section 192 from the coal mine
operator who established the trust. Contributions to the trust
must be in cash or property of the type in which the trust is
permitted to invest (for example, public debt securities of the
United States, obligations of a state or local government that are
not in default as to principal or interest, or time and demand
deposits in a bank or insured credit union as described in section
501(c)(21)(D)(ii)).
Program-related investments. Program service revenue also
includes income from program-related investments. These
investments are made primarily to accomplish an exempt
purpose of the investing organization rather than to produce
income. Examples are scholarship loans and low-interest loans
to charitable organizations, indigents, or victims of a disaster.
Rental income from an exempt function is another example of
program-related investment income. For purposes of this return,
report all rental income from an affiliated organization on line 2.
Unrelated trade or business activities. Unrelated trade or
business activities (not including any fundraising events or
fundraising activities) that generate fees for services can also
be program service activities. A social club, for example, should
report as program service revenue the fees it charges both
members and nonmembers for the use of its tennis courts and
golf course.
Line 1g. Enter on line 1g the value of noncash contributions
included on lines 1a through 1f. If this amount exceeds $25,000,
the organization must answer “Yes” on Part IV, line 29, and
complete and attach Schedule M (Form 990).
Noncash contributions are anything other than cash, checks,
money orders, credit card charges, wire transfers, and other
transfers and deposits to a cash account of the organization.
Value noncash donated items, like cars and securities, as of the
time of their receipt, even if they were sold immediately after they
were received.
Example. A charity receives a gift of stock from an unrelated
donor. The stock is delivered to the charity's broker, who sells it
on the same day and remits the sales proceeds, net of
commissions, to the charity. The value of the stock at the time of
the contribution must be reported on line 1f and also on line 1g.
The sale of the stock, and the related sales expenses (including
the amounts reported on lines 1f and 1g), must be reported on
lines 7a through 7d.
Sales of inventory items by hospitals, colleges, and univer-
sities. Books and records maintained according to GAAP for
hospitals, colleges, and universities are more specialized than
books and records maintained according to those accounting
principles for other types of organizations that file Form 990.
Accordingly, hospitals, colleges, and universities can report, as
program service revenue on line 2, sales of inventory items
otherwise reportable on line 10a. In that event, enter the
applicable cost of goods sold as program service expenses in
column (B) of Part IX. No other organizations should report sales
of inventory items on line 2.
Common types of program service revenue.
Medicare and Medicaid payments, and other government
•
Museums and other organizations that elect not to
payments made to pay or reimburse the organization for medical
services provided to individuals who qualify under a government
program for the services provided, and who select the service
provider. See Rev. Rul. 83-153, 1983-2 C.B. 48.
capitalize their collections (according to ASC
TIP
958-360-45) shouldn't report an amount on line 1g for
works of art and other collection items donated to them.
Payments for medical services by patients and their
•
For more information on noncash contributions, see the
guarantors.
instructions for Schedule M (Form 990).
Fees and contracts from government agencies for a service,
•
Line 1h. Enter on line 1h the total of lines 1a through 1f (but not
facility, or product that primarily benefited the government
line 1g).
agencies.
The organization may also need to attach Schedule B
Example 1. A payment by a governmental agency to a
medical clinic to provide vaccinations to the general public is a
contribution reported on line 1e. A payment by a governmental
agency to a medical clinic to provide vaccinations to employees
of the agency is program service revenue reported on line 2.
(Form 990) to report certain contributors and their
TIP
contributions. See the instructions for Schedule B
(Form 990) for more information.
Line 2. On lines 2a through 2e, enter the organization's five
largest sources of program service revenue. Program services
are primarily those that form the basis of an organization's
exemption from tax. For a more detailed description of program
service revenue, refer to the instructions for Part IX, column (B).
On line 2f, enter the total received from all other sources of
program service revenue not listed individually on lines 2a
through 2e. On line 2g, enter the total of column (A), lines 2a
through 2f.
Example 2. A payment by a governmental agency to an
organization to provide job training and placement for disabled
individuals is a contribution reported on line 1e. A payment by a
governmental agency to the same organization to operate the
agency's internal mail delivery system is program service
revenue reported on line 2.
Income from program-related investments. Report interest,
•
dividends, and other revenues from those investments made
primarily to accomplish the organization's exempt purposes
39
2023 Instructions for Form 990
rather than to produce income. Examples of program-related
investments include student loans and notes receivable from
other exempt organizations that borrowed the funds to pursue
the filing organization's exempt function.
Line 6a. Enter on line 6a the rental income received for the year
from investment property and any other real property rented by
the organization. Allocate revenue to real property and personal
property in the spaces provided. Don't include on line 6a rental
income related to the filing organization's exempt function
(program service). Report such income on line 2. For example,
an exempt organization whose exempt purpose is to provide
low-rental housing to persons with low income would report that
rental income as program service revenue on line 2.
Only for purposes of completing this return, the filing
organization must report any rental income received from an
affiliated exempt organization as program service revenue on
line 2.
Rental revenue can be from an activity that is related or
unrelated to the organization's exempt purpose. In general, rents
from real property are excluded in computing unrelated
business income, while rental income from personal property is
included. There are special rules when rents are received from
personal property leased with real property (a mixed lease). In
general, rental revenue from real property is excluded from
unrelated business revenue when:
Membership dues and assessments received that compare
•
reasonably with the membership benefits provided by the
organization. Organizations described in section 501(c)(5), (6),
or (7) generally provide benefits that have a reasonable
relationship with dues.
Examples of membership benefits include:
Subscriptions to publications,
•
•
Newsletters (other than one only about the organization's
activities),
Free or reduced-rate admissions to events sponsored by the
•
organization,
Use of the organization's facilities, and
•
•
Discounts on articles or services that members and
nonmembers can buy.
For each amount entered on lines 2a through 2e, the
organization must also enter a corresponding business
!
CAUTION
activity code from Business Activity Codes, later. If you
don't see a code for the activity you are trying to categorize,
select the appropriate code from the NAICS website at 2022
NAICS Census Chart. Select the most specific 6-digit code
available that describes the activity producing the income. Note
that most codes describe more than one type of activity. Avoid
using codes that describe the organization rather than the
income-producing activity. For example, a credit union reporting
income from consumer lending activities should use code
522291. Sales revenue from a museum gift shop should be
reported with code 459420. An organization providing credit
counseling services should use code 541990. If none of the
listed codes accurately describe the activity, enter “900099.” Use
of these codes doesn't imply that the activity is unrelated to the
organization's exempt purpose.
The determination of the amount of such rents isn't based on
•
income or net profits derived by any person from the property
leased other than an amount based on a fixed percentage of the
gross receipts or sales;
The lease doesn't include personal services other than
•
customary ones such as trash removal and cleaning of public
areas;
Any portion attributable to personal property is 10% or less of
•
the total rent; and
The real property isn't debt-financed within the meaning of
•
section 512, 513, or 514. (Rent from debt-financed real property
is generally includible in unrelated business income, but there
can be exceptions based on use of the property. See Pub. 598.)
Rent received from leased personal property is generally
taxable except when leased with real property, and the rent
attributable to the personal property doesn't exceed 10% of the
total rents from all leased property.
Line 3. Enter the gross amount of interest income from savings
and temporary cash investments, dividend and interest income
from equity and debt securities (stocks and bonds), and
amounts received from payments on securities loans, as defined
in section 512(a)(5), as well as interest from notes and loans
receivable. Don't include unrealized gains and losses on
investments carried at FMV. Don't deduct investment
management fees from this amount, but report these fees on
Part IX, line 11f.
Section 501(c)(21) trusts. Use line 3 to report income from
“qualified investments” as defined in section 501(c)(21)(D)(ii)
(public debt securities of the United States; obligations of a state
or local government which are not in default as to principal or
interest; and time or demand deposits in a bank (as defined in
section 581) or an insured credit union (within the meaning of
section 101(7) of the Federal Credit Union Act, 12 U.S.C.
1752(7)) located in the United States).
Line 6b. Enter on line 6b the expenses paid or incurred for the
income reported on line 6a. Include interest related to rental
property and depreciation if it is recorded in the organization's
books and records. If the organization reported on line 2 any
rental income reportable as program service revenue, report any
rental expense allocable to such activity on the applicable lines
of Part IX, column (B).
Line 6c. Subtract line 6b from line 6a for both columns (i) and
(ii) and enter on line 6c. Show any loss in parentheses.
Line 6d. Add line 6c, columns (i) and (ii), and enter on line 6d.
Show any loss in parentheses.
Lines 7a through 7d. Enter on lines 7a through 7c all sales of
securities in column (i). Use column (ii) to report sales of all
other types of investments (such as real estate, royalty interests,
or partnership interests) and all other non-inventory assets (such
as program-related investments and fixed assets used by the
organization in its related and unrelated activities).
On line 7a, for each column, enter the total gross sales price
of all such assets. Total the cost or other basis (less
depreciation) and selling expenses and enter the result on
line 7b. On line 7c, enter the gain or loss. Show any loss in
parentheses.
Line 4. Enter all investment income actually or constructively
received from investing the proceeds of a tax-exempt bond
issue, which are under the control of the organization. For this
purpose, don't include any investment income received from
investing proceeds that are technically under the control of the
governmental issuer. For example, proceeds deposited into a
defeasance escrow that is irrevocably pledged to pay the
principal and interest (debt service) on a bond issue isn't under
the control of the organization.
On lines 7a and 7c, also report capital gains dividends, the
organization's share of capital gains and losses from a joint
venture, and capital gains distributions from trusts.
Line 5. Enter on line 5 royalties received by the organization
from licensing the ongoing use of its property to others. Typically,
royalties are received for the use of intellectual property, such as
patents and trademarks. Royalties also include payments to the
owner of the property for the right to exploit natural resources on
the property, such as oil, natural gas, or minerals.
Combine the gain or loss figures reported on line 7c, columns
(i) and (ii), and report that total on line 7d. Show any loss in
40
2023 Instructions for Form 990
parentheses. Don't include any unrealized gains or losses on
Amounts paid in excess of retail value of goods or services
•
securities carried at FMV in the books of account.
furnished. See Example, earlier, under Line 1c.
Amounts received from fundraising events when the
•
For reporting sales of securities on Form 990, the
organization can use the more convenient average cost basis
method to figure the organization's gain or loss. When a security
is sold, compare its sales price with the average cost basis of the
particular security to determine gain or loss. However, for
reporting sales of securities on Form 990-T, don't use the
average cost basis to determine gain or loss.
The organization should maintain books and records to
substantiate information about any securities or other assets
sold for which market quotations weren't published or weren't
otherwise readily available. The recorded information should
include:
organization gives items of only nominal value to recipients. See
Pub. 1771.
Example. In return for a contribution of any amount, donors
receive a keychain with the organization's logo. All amounts
received should be reported as contributions on line 1f and all
associated expenses on the appropriate lines in Part IX, column
(D). In such a case, no amounts would be reported on line 8.
Line 8b. Enter on this line both the cost or other basis of any
items sold at the events and the expenses that relate directly to
the production of the revenue portion of the fundraising activity,
whether incurred before, during, or after the event. In the line 1c
dinner example referred to earlier, the cost of the food and
beverages served and invitation to the dinner would be among
the items reported on line 8b. Indirect fundraising expenses,
such as certain advertising expenses associated with raising
these contributions, must be reported on the appropriate lines
in Part IX, column (D), and not on line 8b.
A description of the asset;
•
•
•
•
•
•
•
Date acquired;
Whether acquired by donation or purchase;
Date sold and to whom sold;
Gross sales price;
Cost, other basis, or, if donated, value at time acquired;
Expense of sale and cost of improvements made after
Line 8c. Enter on line 8c the difference between lines 8a and
8b. Show any loss in parentheses. The organization must report
net income from fundraising events as unrelated business
revenue (column (C)) or as revenue excluded from tax under
section 512, 513, or 514 (column (D)).
Example 1. If an organization receives a donation of a home
theater system with an FMV of $5,000 at the time of donation;
sells the system for $7,500 at an auction, after having displayed
the system and its FMV (which remains $5,000) at and before
auction so that its value was known to the bidders; and incurs
$500 in costs related to selling the system at auction, it should
report the following amounts in Part VIII.
acquisition; and
Depreciation since acquisition, if depreciable property.
•
Line 8a. Enter in the line 8a box the gross income from
fundraising events, not including the amount of contributions
from fundraising events reported on line 1c. Report the line 1c
amount in the line 8a parenthetical. If the sum of the amounts
reported on line 1c and the line 8a box exceeds $15,000, then
the organization must answer “Yes” on Part IV, line 18, and
complete Schedule G (Form 990), Part II. If gaming is conducted
at a fundraising event, the income and expenses must be
allocated between the gaming and the fundraising event on Form
990, Part VIII; report all income from gaming on line 9a.
Compute the organization's gross income from fees, ticket
Line 1c (contributions from
fundraising events):
sales, or other revenue from fundraising events.
$2,500
$5,000
$5,000
Line 1f (all other contributions):
Line 1g (noncash contributions):
Line 8a (gross income from
fundraising events):
Line 8a parenthetical (contributions
reported on line 1c):
Line 8b (direct expenses: $5,000 FMV
on donation date + $500 in auction
costs):
Line 8c (net income from fundraising
event, line 8a minus line 8b):
Fundraising events include:
Fundraising events don't include:
• Dinners/dances,
• Sales or gifts of goods or services of
only nominal value,
$5,000
$2,500
• Door-to-door sales of merchandise, • Raffles or lotteries in which prizes
have only nominal value, and
• Solicitation campaigns that generate
only contributions.
• Concerts,
• Carnivals,
$5,500
($500)
• Sports events, and
Proceeds from these activities are
considered contributions and should
be reported on line 1f.
• Auctions.
Example 2. If the home theater system in Example 1 sold at
auction for $2,500 instead of $7,500, and all other facts in
Example 1 remain the same, then the organization should report
the following amounts in Part VIII.
Fundraising events don't include events or activities that
substantially further the organization's exempt purpose even if
they also raise funds. Revenue from such program service
activities is reported on line 2.
Example. An organization formed to promote and preserve
folk music and related cultural traditions holds an annual folk
music festival featuring concerts, handcraft demonstrations, and
similar activities. Because the festival directly furthers the
organization's exempt purpose, income from ticket sales should
be reported on line 2 as program service revenue.
Line 1c (contributions from
fundraising events):
$0
Line 1f (all other contributions):
Line 1g (noncash contributions):
$5,000
$5,000
Line 8a (gross income from
fundraising events):
$2,500
$0
Line 8a parenthetical (contributions
reported on line 1c):
Fundraising events sometimes generate both contributions
and income, such as when an individual pays more than the
retail value for the goods or services furnished. Report in
parentheses the total amount from fundraising events that
represents contributions rather than payment for goods or
services. Treat the following as contributions.
Line 8b (direct expenses: $5,000 FMV
on donation date + $500 in auction
costs):
Line 8c (net income from fundraising
event, line 8a minus line 8b):
$5,500
($3,000)
41
2023 Instructions for Form 990
In both Example 1 and Example 2, the organization would
need to report the $5,000 value of this contribution on
Schedule M (Form 990) if it received over $25,000 in total
noncash contributions during the tax year.
direct and indirect labor, materials and supplies consumed,
freight-in, and a portion of overhead expenses. Marketing and
distribution costs aren't included in the cost of goods sold but are
reported as expenses in Part IX. For purposes of Part VIII, the
organization may include as cost of donated goods their FMVs
at the time of acquisition.
Line 9a. Line 9a should include only gross income from
gaming activities. It shouldn't include contributions from
gaming activities, which should be reported on line 1f.
Organizations that report more than $15,000 on line 9a must
also answer “Yes” on Part IV, line 19, and complete Part III of
Schedule G (Form 990).
Line 10c. Enter in the appropriate columns (A) through (D) the
net income or (loss) from the sale of inventory items. Show any
loss in parentheses.
Line 11. Enter all other types of revenue not reportable on lines
1 through 10. Enter the three largest sources on lines 11a
through 11c and all other revenue on line 11d.
Types of gaming include, but aren't limited to:
- Bingo
- Nevada Club tickets
For each amount entered on lines 11a, 11b, and 11c, the
- Pull tabs
- Instant bingo
- Raffles
- Certain Casino nights
- Certain Las Vegas nights
- Coin-operated
gambling devices
including:
organization must also enter a corresponding business
TIP
activity code from Business Activity Codes, later. If you
don't see a code for the activity you are trying to categorize,
select the appropriate code from the NAICS website at 2022
NAICS Census Chart. Select the most specific 6-digit code
available that describes the activity producing the income. Note
that most codes describe more than one type of activity. Avoid
using codes that describe the organization rather than the
income-producing activity. If none of the listed codes accurately
describe the activity, enter “900099.” Use of these codes doesn't
imply that the activity is unrelated to the organization's exempt
purpose.
- Scratch-offs
• Slot machines
- Charitable gaming tickets
• Electronic video
slot or line games
- Break-opens
- Hard cards
- Banded tickets
- Jar tickets
• Video poker
• Video blackjack
• Video keno
• Video bingo
- Pickle cards
• Video pull tab
games
Line 12. For column (A), add lines 1h, 2g, 3 through 5, 6d, 7d,
8c, 9c, 10c, and 11e. For columns (B) through (D), add lines 2a
through 2f, 3, 4, 5, 6d, 7d, 8c, 9c, 10c, and 11a through 11d. The
amounts reported on line 12 in columns (B), (C), and (D), plus
the amount reported on line 1h, should equal line 12, column (A).
Many games of chance are taxable. Income from bingo
games isn’t generally subject to the tax on unrelated business
income if the games meet the legal definition of bingo. For a
game to meet the legal definition of bingo, wagers must be
placed, winners must be determined, and prizes or other
property must be distributed in the presence of all persons
placing wagers in that game.
A wagering game that doesn't meet the legal definition of
bingo doesn't qualify for the exclusion, regardless of its name.
For example, instant bingo, in which a player buys a
pre-packaged bingo card with pull tabs that the player removes
to determine if she or he is a winner, doesn't qualify. See Pub.
598.
Part IX. Statement of Functional
Expenses
Check the box in the heading of Part IX if Schedule O (Form 990)
contains any information pertaining to this part.
Use the organization's normal accounting method to
complete this section. If the organization's accounting system
doesn't allocate expenses, the organization can use any
reasonable method of allocation. The organization must report
amounts accurately and document the method of allocation in its
records. Report any expense described on lines 1–23 on the
appropriate line; don't report such expense on line 24. Don't
report in Part IX expenses that must be reported on line 6b, 7b,
8b, 9b, or 10b in Part VIII.
Line 9b. Enter on this line the expenses that relate directly to
the production of the revenue portion of the gaming activity.
Direct expenses of gaming include:
Cash prizes;
•
•
•
•
•
Noncash prizes;
Column (A)—Total
Compensation to bingo callers and workers;
Rental of gaming equipment; and
Cost of gaming supplies such as pull tabs, bingo cards, etc.
Section 501(c)(3) and 501(c)(4) organizations must complete
columns (A) through (D).
All other organizations must complete column (A) but can
complete columns (B), (C), and (D).
Line 9c. Enter the difference between lines 9a and 9b. Show
any loss in parentheses.
State reporting requirements can be different from IRS
reporting requirements applicable to Part IX.
Line 10a. Enter the organization's gross income from sales of
inventory items, less returns and allowances. Sales of inventory
items reportable on line 10a are sales of items that are donated
to the organization, that the organization makes to sell to others,
or that it buys for resale. Sales of inventory don't, however,
include the sale of goods related to a fundraising event, which
must be reported on line 8. Sales of investments on which the
organization expected to profit by appreciation and sale aren't
reported here. Report sales of investments on line 7.
!
CAUTION
Column (B)—Program Services
Program services are mainly those activities that further the
organization's exempt purposes. Fundraising expenses shouldn't
be reported as program service expenses even though one of
the organization's purposes is to solicit contributions.
Include lobbying expenses in this column if the lobbying is
directly related to the organization's exempt purposes.
The organization must report the sales revenue regardless of
whether the sales activity is an exempt function of the
organization or an unrelated trade or business.
Example. Foundation M, an organization exempt under
section 501(c)(3), has the exempt purpose of improving health
care for senior citizens. Foundation M operates in State N. The
legislature of State N is considering legislation to improve
funding of health care for senior citizens. Foundation M lobbies
Line 10b. Enter the cost of goods sold related to the sales of
inventory. The usual items included in cost of goods sold are
42
2023 Instructions for Form 990
state legislators in support of the legislation. Since this lobbying
is directly related to Foundation M's exempt purpose, it would be
considered an exempt function expense, and would be included
under column (B).
Program services can also include the organization's
unrelated trade or business activities. Publishing a magazine
is a program service even though the magazine contains both
editorials and articles that further the organization's exempt
purpose as well as advertising, the income from which is taxable
as unrelated business income.
Also include costs to secure a grant, or contract, to conduct
research, produce an item, or perform a program service, if the
activities are conducted to meet the grantor’s or other
contracting party’s specific needs. Don't report these costs as
fundraising expenses in column (D). Costs to solicit restricted or
unrestricted grants to provide services to the general public
should be reported in column (D).
Example. For an employee who works on fundraising 40% of
the time and program management 60% of the time, an
organization must allocate that employee's salary 40% to
fundraising and 60% to program service expenses. It can’t report
the 100% of salary as program expenses simply because the
employee spent over 50% of his time on program management.
Allocating Indirect Expenses
Direct costs are expenses that can be identified specifically with
an organization's activity or project, and can be assigned to an
activity or project with a high degree of accuracy. Indirect costs
are costs that can't be identified specifically with an activity or
project. For example, a computer bought by a university
specifically for a research project is a direct cost. In contrast, the
costs of software licensing for programs that run on all the
university's computers are indirect costs.
Colleges, universities, hospitals, and other organizations that
incur indirect expenses in various cost centers (such as
organizational memberships, books and subscriptions, and
regular telecommunications costs) can allocate and report such
expenses in the following manner.
Column (C)—Management and General
Use column (C) to report expenses that relate to the
organization's overall operations and management, rather than
to fundraising activities or program services. Overall
management usually includes the salaries and expenses of the
organization's CEO and his or her staff, unless a part of their
time is spent directly supervising program services or
fundraising activities. In that case, their salaries and expenses
should be allocated among management, fundraising, and
program services.
1. Report the expenses of all indirect cost centers in column
(C), lines 5 through 24.
2. As a separate line item of line 24, enter “Allocation of
[name of indirect cost center] expenses.”
a. If any of the cost center's expenses are allocated to
expenses listed in Part VIII such as the expenses attributable to
fundraising events and activities, enter such expenses as a
negative figure in columns (A) and (C).
Expenses incurred to manage investments must be reported
in column (C). Lobbying expenses should be reported in this
column if they don't directly relate to the organization's exempt
purposes.
Organizations must also report the following in column (C):
costs of board of directors meetings; committee meetings and
staff meetings (unless they involve specific program services or
fundraising activities); general legal services; accounting
(including patient accounting and billing); general liability
insurance; office management; auditing, human resources, and
other centralized services; preparation, publication, and
distribution of an annual report; and management of
investments.
However, report expenses related to the production of
program-related income in column (B) and expenses related to
the production of rental income on Part VIII, line 6b. Rental
expenses incurred for the organization's office space or facilities
are reported on line 16.
Don't use this column to report costs of special meetings or
other activities that relate to fundraising or specific program
services.
b. Allocate expenses to column (B) or (D) as positive
amounts.
c. Add the amounts in columns (B) and (D) and enter the
sum as a negative offsetting amount in column (C). Don't make
any entries in column (A) for these offsetting entries.
Example. An organization reports in column (C) $50,000 of
its actual management and general expenses and $100,000 of
expenses of an indirect cost center that are allocable in part to
other functions. The total of lines 5 through 24 of column (C)
would be $150,000 before the indirect cost center allocations
were made. Assume that of the $100,000 total expenses of the
cost center, $10,000 was allocable to fundraising; $70,000 to
various program services; $15,000 to management and general
functions; and $5,000 to special events and activities. To report
this in Part IX under this optional method:
1. Indicate the cost center, the expenses of which are being
allocated, on line 24 as “Allocation of [specify the indirect cost
center] expenses”;
2. Enter a decrease of $5,000 on the same line in column
(A), Total expenses, representing the fundraising event
expenses that were already reported in Part VIII, line 8b;
Column (D)—Fundraising
Fundraising expenses are the expenses incurred in soliciting
cash and noncash contributions, gifts, and grants. Report as
fundraising expenses all expenses, including allocable overhead
costs, incurred in (a) publicizing and conducting fundraising
campaigns; and (b) soliciting bequests and grants from
individuals, foundations, other organizations, or governmental
units that are reported on Part VIII, line 1. This includes
expenses incurred in participating in federated fundraising
campaigns; preparing and distributing fundraising manuals,
instructions, and other materials; and preparing to solicit or
receive contributions. Report direct expenses of fundraising
events on Part VIII, line 8b, rather than in Part IX, column (D).
However, report indirect expenses of fundraising events, such as
certain advertising expenses, in Part IX, column (D), rather than
on Part VIII, line 8b.
3. Enter $70,000 on the same line in column (B), Program
service expenses;
4. Enter $10,000 on the same line in column (D),
Fundraising expenses; and
5. Enter a decrease of $85,000 on the same line in column
(C), Management and general expenses, to represent the
allocations to functional areas other than management and
general.
43
2023 Instructions for Form 990
For insurance exclusively covering liabilities under sections
•
After making these allocations, the column (C), line 25, total
functional expenses would be $65,000, consisting of the
$50,000 actual management and general expense amount and
the $15,000 allocation of the aggregate cost center expenses to
management and general.
501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV). For details, see
Regulations section 1.501(c)(21)-1(d).
Line 2. Enter the amount paid by the organization to domestic
individuals in the form of scholarships, fellowships, stipends,
research grants, and similar payments and distributions.
The above is an example of a one-step allocation that shows
how to report the allocation in Part IX. This reporting method
would actually be more useful to avoid multiple-step allocations
involving two or more cost centers. Without this optional
reporting method, the total expenses of the first cost center
would be allocated to the other functions and might include an
allocation of part of these expenses to another cost center. The
expenses of the second cost center would then be allocated to
other functions and, perhaps, to other cost centers, and so on.
The greater the number of these cost centers that are allocated
out, the more difficult it is to preserve the object classification
identity of the expenses of each cost center (for example,
salaries, interest, supplies, etc.). Using the reporting method
described above avoids this problem.
Also include grants and other assistance paid to third-party
providers for the benefit of specified domestic individuals. For
example, a grant payment to a hospital to cover the medical
expenses of a specific patient must be reported on line 2. By
comparison, a grant to the same hospital to provide services to
the general public or to unspecified charity patients must be
reported on line 1.
If line 2 exceeds $5,000, the organization must complete
Parts I and III of Schedule I (Form 990).
Section 501(c)(21) trusts. Use line 2 to report amounts paid
by the trust to or for the benefit of miners or their beneficiaries.
Line 3. The organization must enter the total amount of grants
and other assistance made to foreign organizations, foreign
governments, and foreign individuals, and to domestic
organizations or domestic individuals for the purpose of
providing grants or other assistance to designated foreign
organizations or foreign individuals.
If line 3 exceeds $5,000, the organization may have to
complete Part II and/or Part III of Schedule F (Form 990),
Statement of Activities Outside the United States. See the
Instructions for Schedule F (Form 990) for more information.
The intent of the above instructions is only to facilitate
reporting indirect expenses by both object classification
!
CAUTION
and function. These instructions don't authorize the
allocation to other functions of expenses that should be reported
as management and general expenses.
Grants and Other Assistance to
Governments, Organizations, and
Individuals
Line 4. Enter the payments made by the organization to provide
benefits to members (such as payments made by an
organization exempt under section 501(c)(8), 501(c)(9), or
501(c)(17) to obtain insurance benefits for members, or
patronage dividends paid by section 501(c)(12) organizations to
their members). Don't report on this line the cost of
Organizations should report the amount of grants and other
assistance on lines 1 through 3. Report expenses incurred in
selecting recipients or monitoring compliance with the terms of a
grant or award on lines 5 through 24. See the following
instructions.
employment-related benefits such as health insurance, life
insurance, or disability insurance provided by the organization to
its officers, directors, trustees, key employees, and other
employees. Report such costs for officers, directors, trustees,
and key employees on Part IX, line 5; report such costs for other
disqualified persons on Part IX, line 6; and report such costs for
other employees on Part IX, lines 8 and 9.
Note. Organizations can report this information according to
ASC 958 but aren't required to do so. For example, an
organization that follows ASC 958 and makes a grant during the
tax year to be paid in future years should report the grant's
present value on this year's Form 990 and report accruals of
additional value increments in future years.
Line 5. Enter the total compensation paid to current officers,
directors, trustees, and key employees (as defined under Part
VII, earlier) for the organization's tax year. Compensation
includes all forms of income and other benefits earned or
received from the filing organization, common paymasters, and
payroll/reporting agents in return for services rendered to the
filing organization, including compensation reported on Forms
W-2 and 1099, pension plan contributions and accruals, and
other employee benefits, but doesn't include non-compensatory
expense reimbursements or allowances. Report all
Line 1. Enter the amount that the organization, at its own
discretion, paid in grants to domestic organizations and
domestic governments. United Way and similar federated
fundraising organizations should report grants to member or
participating agencies on line 1. Organizations must report
voluntary grants to state or local affiliates for specific (restricted)
purposes or projects on line 1.
If the organization reported on line 1 more than $5,000 of
grants or other assistance to any domestic organization or
to any domestic government, the organization must complete
Parts I and II of Schedule I (Form 990).
compensation amounts relating to such an individual, including
those related to services performed in a capacity other than as
an officer, director, trustee, or key employee.
Section 501(c)(21) trusts. Use line 1 to report amounts paid
by the trust to:
The Federal Black Lung Disability Trust Fund pursuant to
•
section 3(b)(3) of Public Law 95-227, or
Allocating Indirect Expenses—Example
Line
(A)
(B)
(C)
$150,000
(D)
5–24a
$150,000
-
-
24b Allocation of $100,000 indirect cost center expenses reported in
(C)
(5,000)
70,000
(85,000)
$65,000
10,000
25
$145,000
$70,000
$10,000
44
2023 Instructions for Form 990
Compensation for Part IX is reported based on the
accounting method and tax year used by the
Line 11. Fees for services paid to nonemployees (inde-
pendent contractors). Enter on lines 11a through 11g
amounts for services provided by independent contractors for
management, legal, accounting, lobbying, professional
fundraising services, investment management, and other
services, respectively. Include amounts whether or not a Form
1099 was issued to the independent contractor. Don't include
on line 11 amounts paid to or earned by employees, officers,
directors, trustees, or disqualified persons for these types of
services, which must be reported on lines 5 through 7.
TIP
organization, rather than the definitions and calendar
year used to complete Part VII or Schedule J (Form 990)
regarding compensation of certain officers, directors,
trustees, and other employees.
Note. To the extent the following examples discuss allocation of
expenses in columns (B), (C), and (D), they apply only to filers
required to complete those columns.
Line 6. Section 501(c)(3), 501(c)(4), and 501(c)(29)
organizations must report the total compensation and other
distributions provided to disqualified persons and persons
described in section 4958(c)(3)(B) to the extent not included on
line 5. See Appendix G.
Compensation includes all forms of income and other
benefits earned or received from the filing organization, common
paymasters, and payroll/reporting agents in return for services
rendered to the filing organization, including compensation
reported on Forms W-2 and 1099, pension plan contributions
and accruals, and other employee benefits, but doesn't include
non-compensatory expense reimbursements or allowances.
If the organization is able to distinguish between fees paid for
independent contractor services and expense payments or
reimbursements to the contractor(s), report the fees paid for
services on line 11 and the expense payments or
reimbursements on the applicable lines in Part IX (including
line 24 if no other line is applicable). If the organization is unable
to distinguish between service fees and expense payments or
reimbursements, report all such amounts on line 11.
Line 11a. Management fees. Enter the total fees charged for
management services provided by outside firms and individuals.
Line 11b. Legal fees. Enter the total legal fees charged by
outside firms and individuals. Don't include any penalties, fines,
settlements, or judgments imposed against the organization as a
result of legal proceedings. Report those expenses on line 24.
Report any amounts for lobbying services provided by attorneys
on line 11d.
Line 7. Enter the total amount of employee salaries, wages,
fees, bonuses, severance payments, and similar amounts paid
or provided from the filing organization, common paymasters,
and payroll/reporting agents in return for services rendered to
the filing organization that aren't reported on line 5 or 6.
Line 11c. Accounting fees. Enter the total accounting and
Line 8. Enter the employer's share of contributions to, or
accruals under, qualified and nonqualified pension and deferred
compensation plans for the year. The organization should
include contributions made by the filing organization, common
paymasters, and payroll/reporting agents to the filing
auditing fees charged by outside firms and individuals.
Line 11d. Lobbying fees. Enter amounts for activities intended
to influence foreign, national, state, or local legislation, including
direct lobbying and grassroots lobbying.
organization's sections 401(k) and 403(b) pension plans on
behalf of employees. However, it shouldn't include contributions
to qualified pension, profit-sharing, and stock bonus plans under
section 401(a) solely for the benefit of current or former officers,
directors, trustees, key employees, or disqualified persons,
which are reportable on line 5 or 6.
Line 11e. Professional fundraising fees. Enter amounts paid
for professional fundraising services, including solicitation
campaigns and advice or other consulting services supporting
in-house fundraising campaigns. If the organization is able to
distinguish between fees paid for professional fundraising
services and amounts paid for fundraising expenses such as
printing, paper, envelopes, postage, mailing list rental, and
equipment rental, then fees paid for professional fundraising
services should be reported on line 11e and amounts paid for
fundraising expenses should be reported on line 24 as other
expenses. If the organization is unable to distinguish between
these amounts, it should report all such fees and amounts on
line 11e.
Complete Form 5500 for the organization's plan and file
it as a separate return. If the organization has more than
one pension plan, complete a Form 5500 for each plan.
TIP
File the form by the last day of the 7th month after the plan year
ends.
Line 9. Other employee benefits. Enter contributions by the
filing organization, common paymasters, and payroll/reporting
agents to the filing organization's employee benefit programs
(such as insurance, health, and welfare programs that aren't an
incidental part of a pension plan included on line 8), and the cost
of other employee benefits.
For example, report expenses for employee events such as a
picnic or holiday party on line 9. Don't include contributions on
behalf of current or former officers, directors, trustees, key
employees, or other persons that were included on line 5 or 6.
Line 11f. Investment management fees. Enter amounts for
investment counseling and portfolio management. Monthly
account service fees are considered portfolio management
expenses and must be reported here. Don't include transaction
costs such as brokerage fees and commissions, which are
considered sales expenses and are included on Part VIII, line 7b.
Line 11g. Other fees for services. Enter amounts for other
independent contractor services not listed on lines 11a
through 11f. For example, amounts paid to an independent
contractor for advocacy services that don't constitute lobbying
should be reported here. For health care organizations,
payments to health care professionals who are independent
contractors are reported on line 11g. Report on line 11g
payments to payroll agents, common paymasters, and other
third parties for services provided by those third parties to the
filing organization. Report on lines 5–10, as appropriate,
payments that reimburse third parties for compensation to the
organization's officers, directors, trustees, key employees, or
other employees. Report payments to contractors for
information technology services on line 14, rather than on
line 11g.
Line 10. Payroll taxes. Enter the amount of federal, state, and
local payroll taxes for the year but only those taxes that are
imposed on the organization as an employer. This includes the
employer's share of social security and Medicare taxes, the
federal unemployment tax (FUTA), state unemployment
compensation taxes, and other state and local payroll taxes.
Don't include on line 10 taxes withheld from employees' salaries
and paid to various governmental units such as federal, state,
and local income taxes and the employees' shares of social
security and Medicare taxes. Such withheld amounts are
reported as compensation.
45
2023 Instructions for Form 990
If the amount on line 11g exceeds 10% of the amount in
line 25, column (A), the organization must list the type and
amount of each line 11g expense on Schedule O (Form 990).
public officials (as determined under section 4946(c)) and their
family members (as determined under section 4946(d)). Report
amounts for a particular public official only if aggregate
expenditures for the year relating to such official (including family
members of such official) exceed $1,000 for the year.
For expenditures that aren't specifically identifiable to a
particular individual, the organization can use any reasonable
allocation method to estimate the cost of the expenditure to an
individual. Amounts not described above can be included in the
reported total amount for line 18 or can be reported on line 24.
The organization is responsible for keeping records of all travel
and entertainment expenses related to a government official
whether or not the expenses are reported on line 18 or line 24.
Line 12. Advertising and promotion expenses. Enter
amounts paid for advertising. Include amounts for print and
electronic media advertising. Also include Internet site link costs,
signage costs, and advertising costs for the organization's
in-house fundraising campaigns. Include fees paid to
independent contractors for advertising, except for fees paid to
independent contractors for conducting professional
fundraising services or campaigns, which are reported on
line 11e.
Line 13. Office expenses. Enter amounts for supplies (office,
classroom, or other supplies); telephone (cell phones and
landlines) and facsimile; postage (overnight delivery, parcel
delivery, trucking, and other delivery expenses) and mailing
expenses; shipping materials; equipment rental; bank fees; and
other similar costs. Also include printing costs of a general
nature. Printing costs that relate to conferences or conventions
must be reported on line 19.
Line 19. Conferences, conventions, and meetings. Enter the
total expenses incurred by the organization in conducting
meetings related to its activities. Include such expenses as
facility rentals, speakers' fees and expenses, and printed
materials. Include the registration fees (but not travel expenses)
paid for sending any of the organization's staff to conferences,
conventions, and meetings conducted by other organizations.
Travel expenses incurred by officers, directors, and
employees attending such conferences, conventions, and
meetings must be reported on line 17.
Line 14. Information technology. Enter amounts for
information technology, including hardware, software, and
support services such as maintenance, help desk, and other
technical support services. Also include expenses for
infrastructure support, such as website design and operations,
virus protection and other information security programs and
services to keep the organization's website operational and
secured against unauthorized and unwarranted intrusions, and
other information technology contractor services. Report
payments to information technology employees on lines 5
through 10. Report depreciation/amortization related to
information technology on line 22.
Line 20. Interest. Enter the total interest expense for the year.
Don't include any interest attributable to rental property (reported
on Part VIII, line 6b) or any mortgage interest (reported as an
occupancy expense on line 16).
Line 21. Payments to affiliates. Enter certain types of
payments to organizations affiliated with (closely related to) the
filing organization.
Payments to affiliated state or national organizations.
Dues paid by a local organization to its affiliated state or national
(parent) organization are reported on line 21. Report on this line
predetermined quota support and dues (excluding membership
dues of the type described below) by local agencies to their state
or national organizations for unspecified purposes, that is,
general use of funds for the national organization's own program
and support services.
Line 15. Royalties. Enter amounts for royalties, license fees,
and similar amounts that allow the organization to use
intellectual property such as patents and copyrights.
Line 16. Occupancy. Enter amounts for the use of office space
or other facilities, including rent; heat, light, power, and other
utilities expenses; property insurance; real estate taxes;
mortgage interest; and similar occupancy-related expenses.
Don't include on line 16 expenses reported as office expenses
(such as telephone expenses) on line 13.
Don't net any rental income received from leasing or
subletting rented space against the amount reported on line 16
for occupancy expenses. If the tenant's activities are related to
the organization's exempt purpose, report rental income as
program service revenue on Part VIII, line 2, and allocable
occupancy expenses on line 16. However, if the tenant's
activities aren't program related, report the rental income on Part
VIII, line 6a, and related rental expenses on Part VIII, line 6b.
Purchases from affiliates. Purchases of goods or services
from affiliates aren't reported on line 21 but are reported as
expenses in the usual manner.
Expenses for providing goods or services to affiliates. In
addition to payments made directly to affiliated organizations,
expenses for providing goods or services to affiliates can be
reported on line 21 if:
The goods or services provided aren't related to the program
•
services conducted by the organization furnishing them (for
example, when a local organization incurs expenses in the
production of a solicitation film for the state or national
organization); and
Don't include employee salaries or depreciation as
occupancy expenses. These expenses are reported on lines 5
through 7 and 22, respectively.
The costs involved aren't connected with the management
•
and general or fundraising functions of the filing organization. For
example, when a local organization gives a copy of its mailing list
to the state or national organization, the expense of preparing
the copy provided can be reported on line 21, but not the
expenses of preparing and maintaining the local organization's
master list.
Line 17. Travel. Enter the total travel expenses, including
transportation costs (fares, mileage allowances, and automobile
expenses), meals and lodging, and per diem payments. Travel
costs include the expenses of purchasing, leasing, operating,
and repairing any vehicles owned by the organization and used
for the organization's activities. However, if the organization
leases vehicles on behalf of its executives or other employees as
part of an executive or employee compensation program, the
leasing costs are considered employee compensation and are
reported on lines 5 through 7.
Voluntary awards or grants to affiliates. Don't report on
line 21 voluntary awards or grants made by the organization to its
state or national organizations for specified purposes.
Membership dues paid to other organizations. Report
membership dues paid to obtain general membership benefits
from other organizations, such as regular services, publications,
and other materials, on line 24. This is the case if a charitable
organization pays dues to a trade association comprised of
otherwise unrelated members.
Line 18. Payments of travel or entertainment expenses for
any federal, state, or local public officials. Enter total
amounts for travel or entertainment expenses (including
reimbursement for such costs) for any federal, state, or local
46
2023 Instructions for Form 990
Properly distinguishing between payments to affiliates
and grants and allocations is especially important if the
organization uses Form 990 for state reporting purposes.
$90,000 in column (D). Any costs reported here aren't to be
deducted from the other lines in Part IX on which they are
reported. Don't check the box unless the organization followed
SOP 98-2 (FASB ASC 958-720) in allocating such costs.
An organization conducts a combined educational campaign
and fundraising solicitation when it solicits contributions (by
mail, telephone, broadcast media, or any other means) and
includes, with the solicitation, educational material or other
information that furthers a bona fide non-fundraising exempt
purpose of the organization.
Expenses attributable to providing information regarding the
organization itself, its use of past contributions, or its planned
use of contributions received are fundraising expenses and must
be reported in column (D). Don't report such expenses as
program service expenses in column (B).
Any method of allocating joint costs between columns (B) and
(D) must be reasonable under the facts and circumstances of
each case. Most states with reporting requirements for charitable
organizations and other organizations that solicit contributions
either require or allow reporting of joint costs under AICPA
Statement of Position 98-2 (SOP 98-2), Accounting for Costs of
Activities of Not-for-Profit Organizations and State and Local
Governmental Entities That Include Fundraising, now codified in
FASB Accounting Standards Codification 958-720, Not-for-Profit
Entities—Other Expenses (FASB ASC 958-720).
TIP
If the organization uses Form 990 only for reporting to the IRS,
payments to affiliated or national organizations that don't
represent membership dues reportable as miscellaneous
expenses on line 24 can be reported on either line 21 or line 1.
Line 22. Depreciation, depletion, and amortization. If the
organization records depreciation, depletion, amortization, or
similar expenses, enter the total on line 22. Include any
depreciation or amortization of leasehold improvements and
intangible assets. An organization isn't required to use the
Modified Accelerated Cost Recovery System (MACRS) to
compute depreciation reported on Form 990. For an explanation
of acceptable methods for computing depreciation, see Pub.
946, How To Depreciate Property. If an amount is reported on
this line, the organization is required to maintain books and
records to substantiate any amount reported.
Line 23. Insurance. Enter total insurance expenses other than
insurance attributable to rental property (reported on Part VIII,
line 6b). Don't report on this line payments made by
organizations exempt under section 501(c)(8), (9), or (17) to
obtain insurance benefits for members. Report those expenses
on line 4. Don't report on this line the cost of employment-related
benefits such as health insurance, life insurance, or disability
insurance provided by the organization to or for its officers,
directors, trustees, key employees, and other employees.
Report the costs for officers, directors, trustees, and key
employees on Part IX, line 5; report the costs for other
disqualified persons on Part IX, line 6; and report the costs for
other employees on Part IX, line 9. Report the costs for members
on Part IX, line 4, not on Part IX, line 23. Don't report on this line
property or occupancy-related insurance. Report those
expenses on line 16.
Part X. Balance Sheet
Check the box in the heading of Part X if Schedule O (Form 990)
contains any information pertaining to this part.
Section 501(c)(21) trusts. Use Schedule O (Form 990) to
report the FMV of the trust's assets at the beginning of the mine
operator's tax year within which the trust's tax year begins.
All organizations must complete Part X. No substitute balance
sheet will be accepted. All references to Schedule D are to
Schedule D (Form 990).
Line 24. Other expenses. Enter the types and amounts of
expenses which weren't reported on lines 1 through 23. Include
expenses for medical supplies incurred by health care/medical
organizations. Include payments by the organization to
professional fundraisers of fundraising expenses such as
printing, paper, envelopes, postage, mailing list rental, and
equipment rental, if the organization is able to distinguish these
expense amounts from fees for professional fundraising services
reportable on line 11e. Enter the four largest dollar amounts on
lines 24a through 24d and the total of all remaining
Column (A)—Beginning of year. In column (A), enter the
amount from the preceding year's Form 990, column (B). If the
organization was excepted from filing Form 990 for the preceding
year, enter amounts the organization would have entered in
column (B) for that year. If this is the organization's first year of
existence, enter zeros on lines 16, 26, 32, and 33 in column (A).
Column (B)—End of year. When Schedule D (Form 990)
reporting is required for any item in Part X, it is only for the
end-of-year balance sheet figure reported in column (B). If this is
the organization's final return, enter zeros on lines 16, 26, 32,
and 33 in column (B).
miscellaneous expenses on line 24e. Don't include a separate
entry for “miscellaneous expenses,” “program expenses,” “other
expenses,” or a similar general category on lines 24a–d. If the
amount on line 24e exceeds 10% of the amount on line 25,
column (A), the organization must list the type and amount of
each line 24e expense on Schedule O (Form 990).
The organization must separately report the amount, if any, of
unrelated business income taxes that it paid or accrued during
the tax year on line 24.
Line 1. Cash (non-interest-bearing). Enter the total funds that
the organization has in cash, including amounts held as “petty
cash” at its offices or other facilities, and amounts held in banks
in non-interest-bearing accounts. Don't include cash balances
held in an investment account with a financial institution and
reported on lines 11 through 13.
Line 2. Savings and temporary cash investments. Enter the
combined total of amounts held in interest-bearing checking and
savings accounts, deposits in transit, temporary cash
Line 25. Total functional expenses. Section 501(c)(3) and
501(c)(4) organizations. Add lines 1 through 24e and enter
the totals on line 25 in columns (A), (B), (C), and (D).
investments (such as money market funds, commercial paper,
and certificates of deposit), and U.S. Treasury bills or other
governmental obligations that mature in less than a year. Don't
include cash balances held in an investment account with a
financial institution and reported on lines 11 through 13. Don't
include advances to employees or officers or refundable
deposits paid to suppliers or other independent contractors.
Report the income from these investments on Part VIII, line 3.
All other organizations. Add lines 1 through 24e and enter the
total on line 25 in column (A).
Line 26. Joint costs. Organizations that included in program
service expenses (column (B) of Part IX) any joint costs from a
combined educational campaign and fundraising solicitation
must disclose how the total joint costs of all such combined
activities were allocated in Part IX between education and
fundraising. For instance, if the organization spent $100,000 on
joint costs and allocated 10% to education, it would report
$100,000 in line 26, column (A); $10,000 in column (B); and
Line 3. Pledges and grants receivable, net. Enter the total of
(a) all pledges receivable, less any amounts estimated to be
uncollectible, including pledges made by officers, directors,
47
2023 Instructions for Form 990
trustees, key employees, and highest compensated
employees; and (b) all grants receivable.
on line 10a must equal the total of Schedule D, Part VI, columns
(a) and (b).
Organizations that follow ASC 958 can report the present
Line 10b. Accumulated depreciation. Enter the total amount
of accumulated depreciation for the assets reported on line 10a.
The amount reported on line 10b must equal the total of
Schedule D (Form 990), Part VI, column (c).
value of the grants receivable as of each balance sheet date.
Line 4. Accounts receivable, net. Enter the organization's
total accounts receivable (reduced by any allowance for doubtful
accounts) from the sale of goods and the performance of
services. Report claims against vendors or refundable deposits
with suppliers or others here, if not significant in amount.
Otherwise, report them on line 15, Other assets. Report the net
amount of all receivables due from officers, directors,
trustees, or key employees on line 5. Report receivables
(including loans and advances) due from other disqualified
persons on line 6. Receivables (including loans and advances)
from employees who aren't current or former officers, directors,
trustees, key employees, or disqualified persons must be
reported on line 7.
Line 10c. Column (A)—Beginning of year. Enter the cost or
other basis of land, buildings, and equipment, net of any
accumulated depreciation, as of the beginning of the year.
Line 10c. Column (B)—End of year. Enter line 10a minus
line 10b. The amount reported must equal the total of
Schedule D (Form 990), Part VI, column (d).
Line 11. Investments—publicly traded securities. Enter the
total value of publicly traded securities held by the
organization as investments. Publicly traded securities include
common and preferred stocks, bonds (including governmental
obligations such as bonds and Treasury bills), and mutual fund
shares that are listed and regularly traded in an over-the-counter
market or an established exchange and for which market
quotations are published or are otherwise readily available.
Report dividends and interest from these securities on Part VIII,
line 3.
Don't report on line 11 publicly traded stock for which the
organization holds 5% or more of the outstanding shares of the
same class or publicly traded stock in a corporation that
comprises more than 5% of the organization's total assets.
Report these investments on line 12.
Lines 5 and 6. Loans and other receivables from current
and former officers, directors, trustees, key employees,
and creator or founder, substantial contributor, or 35%
controlled entity or family member of any of these persons.
Report on line 5 loans and other receivables due from current or
former officers, directors, trustees, key employees, and
creator or founder, substantial contributor, or 35%
controlled entity or family member of any of these persons.
Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must
also report on line 6 receivables due from other disqualified
persons (for purposes of section 4958, see Appendix G), and
from persons described in section 4958(c)(3)(B). Include all
amounts owed on secured and unsecured loans made to such
persons. Report interest from such receivables on Part VIII,
line 11. Don't report on line 5 or 6 (a) pledges or grants
receivable, which are to be reported on line 3; or (b) receivables
that are excepted from reporting on Schedule L (Form 990), Part
II (except for excess benefit transactions involving
Line 12. Investments—other securities. Enter on this line the
total value of all securities, partnerships, or funds that aren't
publicly traded. This includes stock in a closely held company
whose stock isn't available for sale to the general public or which
isn't widely traded. Other securities reportable on line 12 also
include publicly traded stock for which the organization holds 5%
or more of the outstanding shares of the same class, and
publicly traded stock in a corporation that comprises more than
5% of the organization's total assets. Don't include
receivables). If the organization must report loans and other
receivables on either line 5 or 6, it must answer “Yes” on Part IV,
line 26.
program-related investments.
Line 7. Notes and loans receivable, net. Enter the net
amount of all notes receivable and loans receivable not listed on
lines 5 and 6, including receivables from unrelated third parties.
The term “unrelated third parties” includes independent
contractors providing goods or services and employees who
aren't current or former officers, directors, trustees, key
employees, highest compensated employees, or
If an amount is reported on this line that is 5% or more of the
amount reported on Part X, line 16, answer “Yes” on Part IV,
line 11b, and complete Schedule D (Form 990), Part VII. The
amount reported in Part X, line 12, column (B), must equal the
total of Schedule D (Form 990), Part VII, column (b).
Line 13. Program-related investments. Report here the total
book value of all investments made primarily to accomplish the
organization's exempt purposes rather than to produce income.
Examples of program-related investments include student loans
and notes receivable from other exempt organizations that
obtained the funds to pursue the filing organization's exempt
function.
If the amount reported on this line is 5% or more of the
amount reported on Part X, line 16, answer “Yes” on Part IV,
line 11c, and complete Part VIII of Schedule D (Form 990). The
amount reported in Part X, line 13, column (B), must equal the
total of Schedule D (Form 990), Part VIII, column (b).
disqualified persons. Don't include the following.
Receivables reported on line 4.
•
•
•
Program-related investments reported on line 13.
Notes receivable acquired as investments reported on line 12.
Line 8. Inventories for sale or use. Enter the amount of
materials, goods, and supplies held for future sale or use,
whether purchased, manufactured by the organization, or
donated.
Line 9. Prepaid expenses and deferred charges. Enter the
amount of short-term and long-term prepayments of expenses
attributable to one or more future accounting periods. Examples
include prepayments of rent, insurance, or pension costs, and
expenses incurred for a solicitation campaign to be conducted in
a future accounting period.
Line 14. Intangible assets. Report on this line the total value
of all non-monetary, non-physical assets such as copyrights,
patents, trademarks, mailing lists, or goodwill.
Line 15. Other assets. Report on this line the total book value
Line 10a. Land, buildings, equipment, and leasehold im-
provements. Enter the cost or other basis of all land, buildings,
equipment, and leasehold improvements held at the end of the
year. Include both property held for investment purposes and
property used for the organization's exempt functions. If an
amount is reported here, answer “Yes” on Part IV, line 11a, and
complete Schedule D (Form 990), Part VI. The amount reported
of all assets held and not reported on lines 1 through 14.
If an amount is reported on this line that is 5% or more of the
amount reported on Part X, line 16, answer “Yes” on Part IV,
line 11d, and complete Schedule D (Form 990), Part IX. The
amount reported in Part X, line 15, column (B), must equal the
total of Schedule D, Part IX, column (b).
48
2023 Instructions for Form 990
organization's assets as of the end of the tax year. Report on
line 25 (and not line 23) any secured mortgages and notes
payable to related organizations.
On line 24, enter the total amount of notes and loans that are
payable to unrelated third parties but aren't secured by the
organization's assets. Report on line 25 (and not line 24) any
unsecured payables to related organizations.
Line 16. Total assets. Add the totals in columns (A) and (B) of
lines 1 through 15. The amounts on line 16 must equal the
amounts on line 33 for both the beginning and end of the year.
The organization must enter a zero or a dollar amount on this
line.
Line 17. Accounts payable and accrued expenses. Enter
the total of accounts payable to suppliers, service providers,
property managers, and other independent contractors, plus
accrued expenses such as salaries payable, accrued payroll
taxes, and interest payable.
Section 501(c)(21) trusts. Include accrued trustee fees, etc.
Do not include the present value of payments for approved
claims, or the estimated liability for future claims.
Line 25. Other liabilities. Enter the total amount of all liabilities
not properly reportable on lines 17 through 24. Items properly
reported on this line include federal income taxes payable and
secured or unsecured payables to related organizations. The
organization must also answer “Yes” on Part IV, line 11e, and
complete Schedule D (Form 990), Part X.
Line 26. Total liabilities. Add the totals in columns (A) and (B),
lines 17 through 25. The organization must enter a zero or a
dollar amount on this line.
Line 18. Grants payable. Enter the unpaid portion of grants
and awards that the organization has committed to pay other
organizations or individuals, whether or not the commitments
have been communicated to the grantees.
Net Assets and Fund Balances
Section 501(c)(21) trusts. Include payments for approved
black lung claims that are due but not paid. Do not include
amounts for black lung claims being contested.
FASB Accounting Standards Codification 958, Not-for-Profit
Entities (ASC 958) provides standards for external financial
statements certified by an independent accountant for certain
types of nonprofit organizations. ASC 958-10-15-5 doesn't apply
to credit unions, VEBAs, supplemental unemployment benefit
trusts, section 501(c)(12) cooperatives, and other member
benefit or mutual benefit organizations.
Line 19. Deferred revenue. Report revenue that the
organization has received but not yet earned as of the balance
sheet date under its method of accounting.
Line 20. Tax-exempt bond liabilities. Enter the amount of
tax-exempt bonds (or other obligations) for which the
organization has a direct or indirect liability that were either
issued by the organization on behalf of a state or local
governmental unit, or by a state or local governmental unit on
behalf of the organization, and for which the organization has a
direct or indirect liability. Tax-exempt bonds include state or local
bonds and any obligations, including direct borrowing from a
lender, or certificates of participation, the interest on which is
excluded from the gross income of the recipient for federal
income tax purposes under section 103.
While some states may require reporting according to FASB
ASC 958, the IRS doesn't. However, a Form 990 return prepared
according to ASC 958 will be acceptable to the IRS.
Organizations that follow ASC 958. If the organization follows
ASC 958, check the box above line 27, and complete lines 27
through 28 and lines 32 and 33. Classify and report net assets in
two groups in Part X (unrestricted, donor-restricted) based on
the existence or absence of donor-imposed restrictions and the
nature of those restrictions. Enter the sum of the two classes of
net assets on line 32. On line 33, add the amounts on lines 26
and 32 to show total liabilities and net assets. The amount on
line 33 must equal the amount on line 16.
See also Part IV, line 24a, and Schedule K (Form 990).
Line 21. Escrow or custodial account liability. Enter the
amount of funds or other assets held in an escrow or custodial
account for other individuals or organizations. Enter these
amounts only if the related assets (such as cash) are reported
on lines 1 through 15 of this part. If an amount is reported on this
line, the organization must also answer “Yes” on Part IV, line 9,
and complete Schedule D (Form 990), Part IV. If the organization
has signature authority over, or another interest in, an escrow or
custodial account for which it doesn't report the assets or
liabilities, it must also answer “Yes” on Part IV, line 9, and
complete Schedule D, Part IV.
Effective for reporting years ending after December 15,
2017, ASC 958-205, Not-for-Profit
!
CAUTION
Entities—Presentation of Financial Statements (ASC
958), addresses reporting of donor-restricted endowments
and board-designated (quasi) endowments. Further, most
states have enacted the Uniform Prudent Management of
Institutional Funds Act (UPMIFA). If the organization is subject to
UPMIFA or ASC 958, it may affect the amounts reported on lines
27 through 28.
Example. A credit counseling organization collects amounts
from debtors to remit to creditors and reports the amounts
temporarily in its possession as cash on line 1 of the balance
sheet. It must then report the corresponding liability (the
amounts to be paid to the creditors on the debtors' behalf) on
line 21.
Line 27. Net assets without donor restrictions. Enter the
balance per books of net assets without donor restrictions. All
funds without donor-imposed restrictions must be reported on
line 27, regardless of the existence of any board designations or
appropriations.
Line 28. Net assets with donor restrictions. Enter the
balance per books of net assets with donor restrictions.
Donors' restrictions may require that resources be used after a
specified date (time restrictions), or that resources be used for a
specified purpose (purpose restrictions), or both. Donors may
also stipulate that assets, such as land or works of art, be used
for a specified purpose, be preserved, and not be sold or
donated with stipulations that they be invested to provide a
permanent source of income.
Lines 22–24. Enter on line 22 the unpaid balance of loans and
other payables (whether or not secured) to current and former
officers, directors, trustees, key employees, creator or
founder, substantial contributor, or 35% controlled entity
or family member of any of these persons, and persons
described in section 4958(c)(3)(B). If the organization reports a
loan payable on this line, it must answer “Yes” on Part IV, line 26.
Don't report on line 22 accrued but unpaid compensation owed
by the organization. Don't report on line 22 loans and payables
excepted from reporting on Schedule L (Form 990), Part II
(except for excess benefit transactions involving receivables).
Organizations that don't follow ASC 958. If the organization
doesn't follow ASC 958, check the box above line 29 and
complete lines 29 through 33. Report capital stock, trust
principal, or current funds on line 29. Report paid-in capital
surplus or land, building, or equipment funds on line 30. Report
On line 23, enter the total amount of secured mortgages and
notes payable to unrelated third parties that are secured by the
49
2023 Instructions for Form 990
retained earnings, endowment, accumulated income, or other
funds on line 31.
prior years, or changes in accounting principles applied to such
years. The errors may include math errors, mistakes in applying
accounting principles, or oversight or misuse of facts that existed
at the time the financial statements were prepared.
Line 29. Capital stock or trust principal, or current funds.
For corporations, enter the balance per books of capital stock
accounts. Show par or stated value (or for stock with no par or
stated value, total amount received on issuance) of all classes of
stock issued and not yet canceled. For trusts, enter the amount
in the trust principal or corpus. For organizations using the fund
method of accounting, enter the fund balances for the
Line 9. Enter the total amount of other changes in net assets or
fund balances during the year. Amounts to report here include
losses on uncollectible pledges, refunds of contributions and
program service revenue, reversal of grant expenses, any
difference between FMV and book value of property given as an
award or grant, and any other changes in net assets or fund
balances not listed on lines 5–8. Itemize these changes on
Schedule O (Form 990) and check the box in the heading of Part
XI.
organization's current restricted and unrestricted funds.
Line 30. Paid-in or capital surplus, or land, building, and
equipment fund. Enter the balance of paid-in capital in excess
of par or stated value for all stock issued and not yet canceled,
as recorded on the corporation's books. If stockholders or others
made donations that the organization records as paid-in capital,
include them here. Enter the fund balance for the land, building,
and equipment fund on this line.
Line 10. Combine the amounts on lines 3 through 9. The total
must equal the amount reported in Part X, line 32, column (B).
Part XII. Financial Statements and
Reporting
Line 31. Retained earnings, endowment, accumulated in-
come, or other funds. For corporations, enter the balance of
retained earnings as recorded on the corporation's books, or
similar account, minus the cost of any corporate treasury stock.
For trusts, enter the balance in the accumulated income or
similar account. For those organizations using the fund method
of accounting, enter the total of the fund balances for the net
assets without donor restrictions funds, and the net assets
with donor restrictions funds, as well as balances of any other
funds not reported on lines 29 and 30.
Check the box in the heading of Part XII if Schedule O (Form
990) contains any information pertaining to this part.
Line 1. Accounting method. Indicate the method of
accounting used in preparing this return. See Part D, earlier.
Provide an explanation on Schedule O (Form 990) (1) if the
organization changed its method of accounting from a prior year,
or (2) if the organization checked the “Other” accounting method
box.
Line 32. Total net assets or fund balances. For organizations
that follow ASC 958, enter the total of lines 27 through 28. For all
other organizations, enter the total of lines 29 through 31. All
filers must enter a zero or a dollar amount on this line.
Line 2. Financial statements and independent accountant.
Answer “Yes” or “No” to indicate on line 2a or line 2b whether the
organization's financial statements for the tax year were
compiled, reviewed, or audited by an independent
accountant. An accountant is independent if he or she meets the
standards of independence set forth by the American Institute of
Certified Public Accountants (AICPA), the Public Company
Accounting Oversight Board (PCAOB), or another similar body
that oversees or sets standards for the accounting or auditing
professions.
If “Yes” on either line 2a or 2b, answer “Yes” or “No” on line 2c
to indicate whether the organization has a committee that is
responsible under its governing documents or through
delegation by its governing body for (i) overseeing the
compilation, review, or audit of the financial statements; and (ii)
the selection of an independent accountant that compiled,
reviewed, or audited the statements. Answer “Yes” only if both (i)
and (ii) apply. If this process has changed from the prior year,
describe on Schedule O (Form 990).
Line 33. Total liabilities and net assets/fund balances.
Enter the total of line 26 and line 32. This amount must equal the
amount on line 16. The organization must enter a zero or a dollar
amount on this line.
Part XI. Reconciliation of Net Assets
Check the box in the heading of Part XI if Schedule O (Form 990)
contains any information pertaining to this part.
Line 1. Enter the amount of total revenue reported in Part VIII,
line 12, column (A).
Line 2. Enter the amount of total expenses reported in Part IX,
line 25, column (A).
Line 3. Enter the difference between lines 1 and 2.
Line 3a. Uniform Guidance, 2 C.F.R. Part 200, Subpart F.
Answer “Yes” if, during the year, the organization was required
under the Uniform Guidance, 2 C.F.R. Part 200, Subpart F, to
undergo an audit or audits because of its receipt of federal
contract awards. The Uniform Guidance, 2 C.F.R. Part 200,
Subpart F, requires states, local governments, and nonprofit
organizations that spend $750,000 or more of federal awards in
a year to obtain an annual audit.
Line 4. Enter the amount of net assets or fund balances at the
beginning of year reported in Part X, line 32, column (A). This
amount should be the same amount reported in Part X, line 32,
column (B), for the prior year’s return.
Line 5. Report the net unrealized gains or losses on investments
reported in the organization's audited financial statements (or
other financial statements). This amount represents the change
in market value of investments that weren't sold or exchanged
during the tax year.
Line 3b. Required audits. If “Yes” on line 3a, indicate whether
the organization has undergone the required audit or audits.
Answer “Yes” if the audit was completed or in progress during the
organization's tax year. If the answer to line 3b is “No,” explain on
Schedule O (Form 990) why the organization hasn't undergone
any required audits and describe any steps taken to undergo
such audits.
Line 6. Report the value of services or use of facilities donated
to the organization (net of services or use of facilities donated by
the organization) reported as income or expense in the financial
statements.
Paperwork Reduction Act Notice. We ask for the information
on these forms to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We
need it to ensure that you are complying with these laws and to
Line 8. Report the net prior period adjustments during the tax
year reported in the financial statements. Prior period
adjustments are corrections of errors in financial statements of
50
2023 Instructions for Form 990
allow us to figure and collect the right amount of tax. You are not
required to provide the information requested on a form that is
subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. Books or records relating to a form
or its instructions must be retained as long as their contents may
become material in the administration of any Internal Revenue
law. Generally, tax returns and return information are
Fiscal Year 2024 Form 990 Series Taxpayer
Compliance Cost Estimates
Table 1—Fiscal Year 2024 Form 990 Series Taxpayer Compliance Cost Estimates
Type of Return
Form 990
Form 990-EZ
Form 990-PF
Form 990-T
Form 990-N
Projections of
the Number of
Returns to be
Filed with IRS
confidential, as required by section 6103. However, certain
returns and return information of tax-exempt organizations and
trusts are subject to public disclosure and inspection, as
provided by section 6104.
351,100
107
251,000
69
130,100
53
233,200
42
733,100
5
Estimated
Average Total
Time (Hours)
Estimates of taxpayer burden. These include forms in the
990 series and attachments and Forms 1023, 1024, 1028, 5578,
5884-C, 8038, 8038-B, 8038-CP, 8038-G, 8038-GC, 8038-R,
8038-T, 8038-TC, 8328, 8718, 8282, 8453-TE, 8453-X, 8868,
8870, 8871, 8872, 8879-TE, 8886-T, and 8899 and their
schedules and all the forms tax-exempt organizations attach to
their tax returns. Time spent and out-of-pocket costs are
presented separately. Time burden includes the time spent
preparing to file and to file, with recordkeeping representing the
largest component. Out-of-pocket costs include any expenses
incurred by taxpayers to prepare and submit their tax returns.
Examples include tax return preparation and submission fees,
postage and photocopying costs, and tax preparation software
costs. Note that these estimates don't include burden associated
with post-filing activities. IRS operational data indicate that
electronically prepared and filed returns have fewer arithmetic
errors, implying lower post-filing burden.
Estimated
Average Total
Out-of-Pocket
Costs
$2,900
$600
$2,200
$2,200
$20
Estimated
Average Total
Monetized
Burden
$9,900
$1,700
$4,600
$5,700
$100
Estimated Total
Time (Hours)
37,710,000
$1,023,200,000
$3,466,900,000
17,400,000
$152,200,000
$425,200,000
6,940,000
9,790,000
3,660,000
$14,000,000
$71,400,000
Estimated Total
Out-of-Pocket
Costs
$282,600,000
$594,600,000
$506,400,000
$1,324,000,000
Estimated Total
Monetized
Burden
Note. Amounts above are for FY2024. Reported time and cost burdens are national averages and do not
necessarily reflect a “typical” case. Most taxpayers experience lower-than-average burden, with taxpayer burden
varying considerably by taxpayer type. Detail may not add due to rounding.
Reported time and out-of-pocket cost burdens are national
averages and include all associated forms and schedules,
across all preparation methods and taxpayer activities. As a
result, the averages don't necessarily reflect a "typical" case.
Most taxpayers experience lower-than-average burden, with
taxpayer burden varying considerably by taxpayer type.
Comments and suggestions. We welcome your comments
concerning the accuracy of these time estimates or suggestions
FormComments. Or you can write to the Internal Revenue
Service, Tax Forms and Publications Division, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224.
Although we can't respond individually to each comment
received, we do appreciate your feedback and will consider your
comments and suggestions as we revise our tax forms,
instructions, and publications. Don't send your return to the
above address. Instead, see General Instructions, Section E,
earlier, for the location for filing your return.
51
2023 Instructions for Form 990
Business Activity Codes
The codes listed in this section are a
selection from the North American
to categorize, select the appropriate code
from the NAICS website at 2022 NAICS
Census Chart. Select the most specific
6-digit code available that describes the
activity producing the income being
more than one type of activity. Avoid
using codes that describe the
organization rather than the
income-producing activity.
Industry Classification System (NAICS)
that should be used in completing Form
990, Part VIII, lines 2 and 11. If you don't
see a code for the activity you are trying
reported. Note that most codes describe
Business Activity Codes
524113 Direct life insurance carriers
551112 Offices of other holding
companies
Agriculture, Forestry, Fishing
Note
524114 Direct health and medical
Note for Nonstore Retailers
insurance carriers
and Hunting
Code
Administrative and Support
Nonstore retailers sell all types of
524126 Direct property and casualty
merchandise using such
insurance carriers
Services
Code
110000 Agriculture, forestry, fishing and
methods as Internet, mail-order
catalogs, interactive television, or
direct sales. These types of
retailers should select the PBA
associated with their primary line
of products sold. For example,
establishments primarily selling
prescription and non-prescription
drugs, select PBA code 456110
Pharmacies and drug
524130 Reinsurance carriers
hunting
524292 Pharmacy benefit management
111000 Crop production
561000 Administrative and support
and other third party
services
administration of insurance and
pension funds
Mining
Code
561300 Employment services
561439 Other business service centers
524298 All other insurance-related
(including copy shops)
211100 Oil and gas extraction
211120 Crude petroleum extraction
211130 Natural gas extraction
212000 Mining (except oil and gas)
activities
561499 All other business support
services
525100 Insurance and employee benefit
funds
retailers.
561500 Travel arrangement and
525920 Trusts, estates, and agency
reservation services
accounts
Transportation and
561520 Tour operators
Utilities
525990 Other financial vehicles
(including mortgage REITs)
Warehousing
561700 Services to buildings and
Code
dwellings
Code
221000 Utilities
Real Estate and Rental and
Leasing
Code
480000 Transportation
Waste Management and
Remediation Services
Code
562000 Waste management and
remediation services (sanitary
services)
Construction
Code
230000 Construction
236000 Construction of buildings
485000 Transit and ground passenger
transportation
493000 Warehousing and storage
531110 Lessors of residential buildings
and dwellings (including equity
REITs)
Information
Code
512000 Motion picture and sound
Manufacturing
531120 Lessors of nonresidential
buildings (except
Code
Educational Services
miniwarehouses) (including
equity REITs)
recording industries
310000 Manufacturing
Code
513110 Newspaper publishers
513120 Periodical publishers
513130 Book publishers
323100 Printing and related support
531130 Lessors of miniwarehouses and
self-storage units (including
equity REITs)
611420 Computer training
activities
611430 Professional and management
339110 Medical equipment and supplies
manufacturing
development training
513140 Directory and mailing list
531190 Lessors of other real estate
611600 Other schools and instruction
(other than elementary and
secondary schools or colleges
and universities, which should
select a code to describe their
unrelated activities)
publishers
property (including equity REITs)
Wholesale Trade
513190 Other publishers
516100 Radio and television
531310 Real estate property managers
531320 Offices of real estate appraisers
Code
broadcasting stations
423000 Merchant wholesalers, durable
531390 Other activities related to real
goods
516210 Media streaming, social
networks, and other content
providers
517000 Telecommunications (including
wired, wireless, satellite, cable
and other program distribution,
resellers, agents, other
estate
611710 Educational support services
Health Care and Social
Assistance
424000 Merchant wholesalers,
nondurable goods
532000 Rental and leasing services
532289 All other consumer goods rental
Retail Trade
532420 Office machinery and equipment
rental and leasing
Code
533110 Lessors of nonfinancial
intangible assets (except
copyrighted works)
Code
441100 Automobile dealers
telecommunications, and internet
service providers)
621110 Offices of physicians
444100 Building material and supplies
621300 Offices of other health
dealers
Data Processing, Web Search
Portals, and Other Information
Services
practitioners
Professional, Scientific, and
Technical Services
445100 Grocery and convenience
retailers
621400 Outpatient care centers
621500 Medical and diagnostic
445200 Specialty food retailers
laboratories
Code
449100 Furniture and home furnishings
621610 Home health care services
621910 Ambulance services
541100 Legal services
retailers
Code
541200 Accounting, tax preparation,
bookkeeping, and payroll
services
449210 Electronics and appliance
retailers (including computers)
518210 Computing infrastructure
providers, data processing, web
hosting, and related services
621990 All other ambulatory health care
services
455000 General merchandise retailers
456110 Pharmacies and drug retailers
541300 Architectural, engineering, and
623000 Nursing and residential care
facilities
519200 Web search portals, libraries,
archives, and other information
services
related services
456199 All other health and personal
541380 Testing laboratories and services
623990 Other residential care facilities
624100 Individual and family services
624110 Child and youth services
care retailers
541511 Custom computer programming
458000 Clothing, clothing accessories,
shoe, and jewelry retailers
Finance and Insurance
Code
services
541519 Other computer-related services
541610 Management consulting services
459110 Sporting goods retailers
624200 Community food and housing,
and emergency and other relief
services
522100 Depository credit intermediation
(including commercial banking,
savings institutions, and credit
unions)
459120 Hobby, toy, and game retailers
541700 Scientific research and
459130 Sewing, needlework, and piece
development services
624210 Meal delivery programs, soup
goods retailers
kitchens, or food banks
541800 Advertising, public relations, and
related services
459140 Musical instrument and supplies
retailers
522200 Nondepository credit
624310 Vocational rehabilitation services
624410 Childcare services
intermediation
541860 Direct mail advertising
459210 Book retailers and news dealers
522210 Credit card issuing
522220 Sales financing
522291 Consumer lending
522292 Real estate credit
541900 Other professional, scientific,
(including newsstands)
Arts, Entertainment, and
Recreation
and technical services
459310 Florists
541990 Consumer credit counseling
services
459410 Office supplies and stationery
retailers
Code
522299 International, secondary market,
459420 Gift, novelty, and souvenir
retailers
Management of Companies and
and all other nondepository
711110 Theater companies and dinner
credit intermediation
theaters
Enterprises
459510 Used merchandise retailers
459900 Other miscellaneous retailers
523000 Securities, commodity contracts,
and other financial investments
and related activities
523940 Portfolio management and
711120 Dance companies
Code
711130 Musical groups and artists
711190 Other performing arts companies
551111 Offices of bank holding
companies
711210 Spectator sports (including
investment advice
sports clubs and racetracks)
52
2023 Instructions for Form 990
Business Activity Codes (Continued)
711300 Promoters of performing arts,
721110 Hotels (except casino hotels)
900003 Passive income activities with
controlled organizations
900004 Exploited exempt activities
900099 Other activity
Other Services
sports, and similar events
and motels
Code
713110 Amusement and theme parks
713200 Gambling industries
721210 RV (recreational vehicle) parks
and recreational camps
811000 Repair and maintenance
721310 Rooming and boarding houses,
dormitories, and workers’ camps
812300 Drycleaning and laundry
713910 Golf courses and country clubs
services
713940 Fitness and recreational sports
722320 Caterers
812900 Other personal services
812930 Parking lots and garages
centers
722410 Drinking places (alcoholic
713990 All other amusement and
recreation industries (including
skiing facilities, marinas, and
bowling centers)
beverages)
Other
Code
722511 Full-service restaurants
722513 Limited-service restaurants
722514 Cafeterias, grill buffets, and
900001 Investment activities of section
Accommodation and Food
Services
buffets
501(c)(7), (9), or (17)
organizations
722515 Snack and non-alcoholic
beverage bars
900002 Rental of personal property
Code
721000 Accommodation
Glossary
Words in bold within a definition are defined elsewhere within the Glossary.
All section references are to the Internal Revenue Code (title 26 of U.S. Code) or
•
•
NOTES:
regulations under title 26, unless otherwise specified.
Definitions are for purposes of filing Form 990 (and schedules) only.
•
35% controlled entity
An entity that is owned, directly or indirectly (for example, under constructive
ownership rules of section 267(c)), by a given person, such as the
organization's current or former officers, directors, trustees, or key
employees listed on Form 990, Part VII, Section 1, or the family members
thereof (listed persons) as follows.
1. A corporation in which listed persons own more than 35% of the total
combined voting power.
2. A partnership in which listed persons own more than 35% of the profits
interest.
3. A trust or estate in which listed persons own more than 35% of the
beneficial interest.
Accountable plan
A reimbursement or other expense allowance arrangement that satisfies the
requirements of section 62(c) by meeting the requirements of business
connection, substantiation, and returning amounts in excess of substantiated
expenses. See Regulations section 1.62-2(c)(2).
Activities conducted outside the United States
For purposes of Schedule F (Form 990), Statement of Activities Outside the
United States, include grantmaking, fundraising, unrelated trade or
business, program services, program-related investments, other
investments, or maintaining offices, employees, or agents in particular
regions outside the United States.
Applicable tax-exempt organization
A section 501(c)(3), 501(c)(4), or 501(c)(29) organization that is tax exempt
under section 501(a), or that was such an organization at any time during the
5-year period ending on the day of the excess benefit transaction.
Art
See Works of art.
ASC 740
ASC 958
See FIN 48 (ASC 740).
Financial Accounting Standards Board, Accounting Standards Codification 958
(ASC 958) provides standards for external financial statements certified by an
independent accountant for certain types of nonprofit organizations. ASC 958
doesn't apply to credit unions, voluntary employees' beneficiary associations,
supplemental unemployment benefit trusts, section 501(c)(12) cooperatives,
and other member benefit or mutual benefit organizations.
While some states may require reporting according to ASC 958, the IRS
doesn't. However, a Form 990 return prepared according to ASC 958 will be
acceptable to the IRS.
ASC 2016-14
Accounting Standards Update 2016-14 is codified in Accounting Standards
Codification 958, Not-for-Profit Entities (ASC 958).
2023 Instructions for Form 990
53
Audit
A formal examination of an organization's financial records and practices by an
independent, certified public accountant with the objective of issuing a report
on the organization's financial statements as to whether those statements are
fairly stated according to generally accepted accounting principles (or other
recognized comprehensive basis of accounting).
Audited financial statements
Audit committee
Financial statements accompanied by a formal opinion or report prepared by an
independent, certified public accountant with the objective of assessing the
accuracy and reliability of the organization's financial statements.
A committee, generally established by the governing body of an organization,
with the responsibilities to oversee the organization's financial reporting
process, monitor choice of accounting policies and principles, monitor internal
control processes, or oversee hiring and performance of any external auditors.
Bingo
A game of chance played with cards that are generally printed with five rows of
five squares each. Participants place markers over randomly called numbers on
the cards in an attempt to form a pre-selected pattern such as a horizontal,
vertical, or diagonal line, or all four corners. The first participant to form the
pre-selected pattern wins the game. To be a bingo game, the game must be of
the type described in which wagers are placed, winners are determined, and
prizes or other property are distributed in the presence of all persons placing
wagers in that game. Satellite, Internet, and progressive or event bingo aren't
bingo, because they are conducted in many different places simultaneously,
and the winners aren't all present when the wagers are placed, the winners are
determined, and the prizes are distributed. Thus, all revenue and expenses
associated with satellite, Internet, and progressive or event bingo should
generally be included under pull tabs. Certain bingo games within a hybrid
gaming event (such as progressive or event bingo) can also qualify as bingo if
the individual game meets the preceding definition of bingo.
Board-designated endowment
Bond issue
See Quasi-endowment.
An issue of two or more bonds that are:
1. Sold at substantially the same time,
2. Sold under the same plan of financing, and
3. Payable from the same source of funds.
See Regulations section 1.150-1(c).
Business relationship
For purposes of Part VI, line 2, business relationships between two persons
include the following.
1. One person is employed by the other in a sole proprietorship or by an
organization with which the other is associated as a trustee, director, officer,
or greater-than-35% owner.
2. One person is transacting business with the other (other than in the
ordinary course of either party's business on the same terms as are generally
offered to the public), directly or indirectly, in one or more contracts of sale,
lease, license, loan, performance of services, or other transaction involving
transfers of cash or property valued in excess of $10,000 in the aggregate
during the organization's tax year. Indirect transactions are transactions with an
organization with which the one person is associated as a trustee, director,
officer, or greater-than-35% owner. Such transactions don't include charitable
contributions to tax-exempt organizations.
3. The two persons are each a director, trustee, officer, or
greater-than-10% owner in the same business or investment entity (but not in
the same tax-exempt organization).
Ownership is measured by stock ownership (either voting power or value) of
a corporation, profits or capital interest in a partnership or limited liability
company, membership interest in a nonprofit organization, or beneficial interest
in a trust. Ownership includes indirect ownership (for example, ownership in an
entity that has ownership in the entity in question); there can be ownership
through multiple tiers of entities.
Cash contributions
54
Contributions received in the form of cash, checks, money orders, credit card
charges, wire transfers, and other transfers and deposits to a cash account of
the organization.
2023 Instructions for Form 990
Central organization
The organization, sometimes referred to as the “parent organization,” that holds
a group exemption letter for one or more subordinate organizations under
its general supervision and control.
CEO, executive director, or top management
official
See Top management official. “CEO” stands for chief executive officer.
Certified historic structure
Any building or structure listed in the National Register of Historic Places as
well as any building certified as being of historic significance to a registered
historic district. See section 170(h)(4)(B) for special rules that apply to
contributions made after August 17, 2006.
Church
Certain characteristics are generally attributed to churches. These attributes of
a church have been developed by the IRS and by court decisions. They include
distinct legal existence; recognized creed and form of worship; definite and
distinct ecclesiastical government; formal code of doctrine and discipline;
distinct religious history; membership not associated with any other church or
denomination; organization of ordained ministers; ordained ministers selected
after completing prescribed courses of study; literature of its own; established
places of worship; regular congregations; regular religious services; Sunday
schools for the religious instruction of the young; and schools for the
preparation of its ministers. The IRS generally uses a combination of these
characteristics, together with other facts and circumstances, to determine
whether an organization is considered a church for federal tax purposes. A
convention or association of churches is generally treated like a church for
federal tax purposes. See Pub. 1828, Tax Guide for Churches and Religious
Organizations.
Closely held stock
Collectibles
Generally, shares of stock in a closely held company that isn't available for sale
to the general public or which isn't widely traded (see further explanation in the
instructions for Part X, line 12, and Schedule M (Form 990), Noncash
Contributions, line 10).
Include autographs, sports memorabilia, dolls, stamps, coins, books (other than
books and publications reported on line 4 of Schedule M (Form 990)), gems,
and jewelry (other than costume jewelry reportable on line 5 of Schedule M
(Form 990)).
Collections of works of art, historical
treasures, and other similar assets
Include collections, as described in ASC 958-360-45, of works of art,
historical treasures, and other similar assets held for public exhibition,
education, or research in furtherance of public service.
Compensation
Unless otherwise provided, all forms of cash and noncash payments or benefits
provided in exchange for services, including salary and wages, bonuses,
severance payments, deferred payments, retirement benefits, fringe benefits,
and other financial arrangements or transactions such as personal vehicles,
meals, housing, personal and family educational benefits, below-market loans,
payment of personal or family travel, entertainment, and personal use of the
organization's property. Compensation includes payments and other benefits
provided to both employees and independent contractors in exchange for
services. See also Deferred compensation, Nonqualified deferred
compensation, and Reportable compensation.
Compilation (compiled financial statements)
A compilation is a presentation of financial statements and other information
that is the representation of the management or ownership of an organization
and which hasn't been reviewed or audited by an independent accountant.
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Conflict of interest policy
A policy that defines conflict of interest, identifies the classes of individuals
within the organization covered by the policy, facilitates disclosure of
information that can help identify conflicts of interest, and specifies procedures
to be followed in managing conflicts of interest. A conflict of interest arises
when a person in a position of authority over an organization, such as an
officer, director, or manager, can benefit financially from a decision she or he
could make in such capacity, including indirect benefits such as to family
members or businesses with which the person is closely associated. For this
purpose, a conflict of interest doesn't include questions involving a person's
competing or respective duties to the organization and to another organization,
such as by serving on the boards of both organizations, that don't involve a
material financial interest of, or benefit to, such person. For a description of
“conflict of interest” for purposes of determining whether governing body
members who are reviewing a potential excess benefit transaction have a
conflict of interest, pursuant to Regulations section 53.4958-6(c)(1)(iii), see the
instructions for Part VI, line 15.
Conservation easement
A restriction (granted in perpetuity) on the use that may be made of real
property granted exclusively for conservation purposes. Conservation purposes
include preserving land areas for outdoor recreation by, or for the education of,
the general public; protecting a relatively natural habitat of fish, wildlife, or
plants, or a similar ecosystem; preserving open space, including farmland and
forest land, where such preservation will yield a significant public benefit and is
either for the scenic enjoyment of the general public or pursuant to a clearly
defined federal, state, or local governmental conservation policy; and
preserving a historically important land area or a certified historic structure. For
more information, see section 170(h) and Notice 2004-41, 2004-1 C.B. 31.
Contributions
Unless otherwise provided, includes donations, gifts, bequests, grants, and
other transfers of money or property to the extent that adequate consideration
isn't provided in exchange and that the contributor intends to make a gift,
whether or not made for charitable purposes. A transaction can be partly a sale
and partly a contribution, but discounts provided on sales of goods in the
ordinary course of business shouldn't be reported as contributions. Neither
donations of services (such as the value of donated advertising space,
broadcast air time, or discounts on services) nor donations of use of materials,
equipment, or facilities should be reported as contributions. For purposes of
Form 990, a distribution to a section 501(c)(3) organization from a split-interest
trust (for example, charitable remainder trust, charitable lead trust) is reportable
as a contribution. See also Cash contributions and Noncash contributions.
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2023 Instructions for Form 990
Control
For purposes of determining related organizations:
Control of a nonprofit organization (or other organization without owners or
persons having beneficial interests, whether the organization is taxable or tax
exempt)
One or more persons (whether individuals or organizations) control a nonprofit
organization if they have the power to remove and replace (or to appoint, elect,
or approve or veto the appointment or election of, if such power includes a
continuing power to appoint, elect, or approve or veto the appointment or
election of, periodically or in the event of vacancies) a majority of the nonprofit
organization's directors or trustees, or a majority of members who elect a
majority of the nonprofit organization's directors or trustees. Such power can be
exercised directly by a (parent) organization through one or more of the (parent)
organization's officers, directors, trustees, or agents, acting in their capacities
as officers, directors, trustees, or agents of the (parent) organization. Also, a
(parent) organization controls a (subsidiary) nonprofit organization if a majority
of the subsidiary's directors or trustees are trustees, directors, officers,
employees, or agents of the parent.
Control of a stock corporation
One or more persons (whether individuals or organizations) control a stock
corporation if they own more than 50% of the stock (by voting power or value) of
the corporation.
Control of a partnership or limited liability company
One or more persons control a partnership if they own more than 50% of the
profits or capital interests in the partnership (including a limited liability
company treated as a partnership or disregarded entity for federal tax
purposes, regardless of the designation under state law of the ownership
interests as stock, membership interests, or otherwise). A person also controls
a partnership if the person is a managing partner or managing member of a
partnership or limited liability company which has three or fewer managing
partners or managing members (regardless of which partner or member has
the most actual control), or if the person is a general partner in a limited
partnership which has three or fewer general partners (regardless of which
partner has the most actual control). For this purpose, a “managing partner” is a
partner designated as such under the partnership agreement, or regularly
engaged in the management of the partnership even though not so designated.
Control of a trust with beneficial interests
One or more persons control a trust if they own more than 50% of the beneficial
interests in the trust. A person's beneficial interest in a trust shall be determined
in proportion to that person's actuarial interest in the trust as of the end of the
tax year. See Regulations sections 301.7701-2, -3, and -4 for more information
on classification of corporations, partnerships, disregarded entities, and trusts.
Control can be indirect. See the Schedule R (Form 990) instructions for a
description of indirect control.
Controlled entity
An organization controlled by a controlling organization under section
512(b)(13). A controlled entity may be a nonprofit organization. For the
definition of control in this context, see section 512(b)(13)(D) and Regulations
section 1.512(b)-1(l)(4) (substituting “more than 50%” for “at least 80%” in the
regulation, for purposes of this definition). Controlled entities are a subset of
related organizations. For purposes of Form 990, controlled entities don't
include disregarded entities of the filing organization.
2023 Instructions for Form 990
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Controlling organization under section 512(b)
(13)
An exempt organization that controls a controlled entity. Section 512(b)(13)
treats payments of interest, annuity, royalties, and rent from a controlled entity
to a controlling organization as unrelated business taxable income under
certain circumstances. Control in this context means (i) in the case of a
corporation, ownership (by vote or value) of more than 50% of the stock in such
corporation; (ii) in the case of a partnership, ownership of more than 50% of the
profits interests or capital interests in such partnership; or (iii) in any other case,
ownership of more than 50% of the beneficial interests in the entity. Section 318
(relating to constructive ownership of stock) shall apply for purposes of
determining ownership of stock in a corporation. Similar principles shall apply
for purposes of determining ownership of interests in any other entity.
Core form
The Form 990, Return of Organization Exempt From Income Tax. It doesn't
include any schedules that may be attached to Form 990.
Credit counseling services
Include the providing of information to the general public on budgeting,
personal finance, and saving and spending practices, or assisting individuals
and families with financial problems by providing them with counseling. See
section 501(q)(4)(A).
Current year
The tax year for which the Form 990 is being filed; see also Fiscal year.
Debt management plan services
Services related to the repayment, consolidation, or restructuring of a
consumer's debt, including the negotiation with creditors of lower interest rates,
the waiver or reduction of fees, and the marketing and processing of debt
management plans. See section 501(q)(4)(B).
Defeasance escrow
An irrevocable escrow established to redeem the bonds on their earliest call
date in an amount that, together with investment earnings, is sufficient to pay all
the principal of, and interest and call premiums on, bonds from the date the
escrow is established to the earliest call date. See Regulations section
1.141-12(d)(5).
Deferred compensation
Compensation that is earned or accrued in, or is attributable to, one year and
deferred to a future year for any reason, whether or not funded, vested,
qualified or nonqualified, or subject to a substantial risk of forfeiture. However, a
deferral of compensation that causes an amount to be deferred from the
calendar year ending with or within the tax year to a date that isn't more than
21/2 months after the end of the calendar year ending with or within the tax year
isn't treated as deferred compensation for purposes of Form 990, if such
compensation is currently reported as reportable compensation. Deferred
compensation may or may not be included in reportable compensation for
the current year.
Director
See Director or trustee.
Director or trustee
Unless otherwise provided, a member of the organization's governing body at
any time during the tax year, but only if the member has any voting rights. A
member of an advisory board that doesn't exercise any governance authority
over the organization isn't considered a director or trustee.
Disqualified person
A. For purposes of section 4958; Form 990, Parts IX and X; and Schedule L
(Form 990), Transactions With Interested Persons, Parts I and II, any person
(including an individual, a corporation, or other entity) who was in a position to
exercise substantial influence over the affairs of the applicable tax-exempt
organization at any time during a 5-year period ending on the date of the
transaction. If the 5-year period ended within the organization's tax year, the
organization may treat the person as a disqualified person for the entire tax
year. Persons who hold certain powers, responsibilities, or interests are among
those who are in positions to exercise substantial influence over the affairs of
the organization.
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2023 Instructions for Form 990
A disqualified person includes:
A disqualified person's family member;
•
•
A 35% controlled entity of a (1) disqualified person, and/or (2) family members
of the disqualified person;
A donor or donor advisor to a donor advised fund; or
An investment advisor of a sponsoring organization.
•
•
The disqualified persons of a supported organization include the
disqualified persons of a section 509(a)(3) supporting organization that
supports the supported organization.
See Appendix G for more information on disqualified persons and section
4958 excess benefit transactions.
B. Under section 4946, a disqualified person includes the following.
1. A substantial contributor, which is any person who gave an aggregate
amount of more than $5,000, if that amount is more than 2% of the total
contributions the foundation or organization received from its inception
through the end of the year in which that person's contributions were received.
If the organization is a trust, a substantial contributor includes the creator of the
trust (without regard to the amount of contributions the trust received from the
creator and related persons). Any person who is a substantial contributor at any
time generally remains a substantial contributor for all future periods even if
later contributions by others push that person's contributions below the 2%
figure discussed above. Gifts from the contributor's spouse are treated as gifts
from the contributor. Gifts are generally valued at FMV as of the date the
organization received them.
2. A foundation manager, defined as an officer, director, or trustee of the
organization or any individual having powers or responsibilities similar to those
of officers, directors, or trustees.
3. An owner of more than 20% of the voting power of a corporation, profits
interest of a partnership, or beneficial interest of a trust or an unincorporated
enterprise that is a substantial contributor to the organization.
4. A family member of an individual in the first three categories. For this
purpose, “family member” includes only the individual's spouse, ancestors,
children, grandchildren, and great-grandchildren, and the spouses of children,
grandchildren, and great-grandchildren.
5. A corporation, partnership, trust, or estate in which persons described in
(1) through (4) above own more than 35% of the voting power, profits interest,
or beneficial interest.
For purposes of section 509(a)(2), as referenced in Schedule A (Form 990),
Public Charity Status and Public Support, a disqualified person is defined in
section 4946, except that it doesn't include an organization described in section
509(a)(1).
For purposes of section 509(a)(3), as referenced in Schedule A (Form 990),
a disqualified person is defined in section 4946, except that it doesn't include a
foundation manager or an organization described in section 509(a)(1) or 509(a)
(2).
Disregarded entity or entities
An entity wholly owned by the organization that is generally not treated as a
separate entity for federal tax purposes (for example, single-member limited
liability company of which the organization is the sole member). See
Regulations sections 301.7701-2 and -3. A disregarded entity must generally
use the EIN of its sole member. An exception applies to employment taxes: for
wages paid to employees of a disregarded entity, the disregarded entity must
file separate employment tax returns and use its own EIN on such returns. See
Regulations sections 301.6109-1(h) and 301.7701-2(c)(2)(iv).
Domestic government
Domestic individual
See Governmental unit.
An individual who lives or resides in the United States and isn't a foreign
individual.
2023 Instructions for Form 990
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Domestic organization
Donor advised fund
A corporation or partnership is domestic if created or organized in the United
States or under the law of the United States or of any state or territory. A trust is
domestic if a court within the United States or a U.S. territory is able to
exercise primary supervision over the administration of the trust, and one or
more U.S. persons (or persons in territories of the United States) have the
authority to control all substantial decisions of the trust.
A fund or account:
1. That is separately identified by reference to contributions of a donor or
donors,
2. That is owned and controlled by a sponsoring organization, and
3. For which the donor or donor advisor has or reasonably expects to
have advisory privileges in the distribution or investment of amounts held in the
donor advised funds or accounts because of the donor's status as a donor.
A donor advised fund doesn't include any fund or account:
1. That makes distributions only to a single identified organization or
governmental entity; or
2. In which a donor or donor advisor gives advice about which individuals
receive grants for travel, study, or other similar purposes, if:
a. The donor or donor advisor's advisory privileges are performed
exclusively by such person in his or her capacity as a committee member in
which all of the committee members are appointed by the sponsoring
organization;
b. No combination of donors or donor advisors (and related persons as
defined below) directly or indirectly controls the committee; and
c. All grants from the fund or account are awarded on an objective and
nondiscriminatory basis following a procedure approved in advance by the
board of directors of the sponsoring organization. The procedure must be
designed to ensure that all grants meet the requirements of section 4945(g)(1),
(2), or (3); or
3. That the IRS exempts from being treated as a donor advised fund
because either such fund or account is advised by a committee not directly or
indirectly controlled by the donor or donor advisor or such fund benefits a single
identified charitable purpose. For example, see section 5.01 of Notice
2006-109, 2006-51 I.R.B. 1121, and any future related guidance.
Donor advisor
Any person appointed or designated by a donor to advise a sponsoring
organization on the distribution or investment of amounts held in the donor's
donor advised fund.
Donor-imposed restriction
A donor stipulation (donors include other types of contributors, including
makers of certain grants) that specifies a use for a contributed asset that is
more specific than broad limits resulting from:
The nature of the not-for-profit entity,
•
•
•
The environment in which it operates, or
The purposes specified in its articles of incorporation or bylaws or comparable
documents for an unincorporated association.
Some donors impose restrictions that are temporary in nature, for example,
stipulating that resources may be used only after a specified date, for particular
programs or services, or to acquire buildings and/or equipment. Other donors
impose restrictions that are perpetual in nature, for example, stipulating that
resources be maintained in perpetuity.
Donor-restricted endowment fund
An endowment fund created by a donor stipulation (donors include other types
of contributors, including makers of certain grants) requiring investment of the
gift in perpetuity or for a specified term. Some donors or laws may require that a
portion of income, gains, or both be added to the gift and invested subject to
similar restrictions.
EIN
Employer identification number, a nine-digit number. Use Form SS-4 to apply
for an EIN.
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2023 Instructions for Form 990
Employee
Any individual who, under the usual common law rules applicable in
determining the employer-employee relationship, has the status of an
employee, and any other individual who is treated as an employee for federal
employment tax purposes under section 3121(d). See Pub. 1779 for more
information.
Endowment fund
An established fund of cash, securities, or other assets to provide income for
the maintenance of a not-for-profit entity. The use of the assets of the fund may
be with or without donor-imposed restrictions. Endowment funds are generally
established by donor-restricted gifts and bequests to provide a source of
income in perpetuity or for a specified period. Alternatively, a not-for-profit's
governing board may earmark a portion of its net assets (see
Quasi-endowment).
Escrow or custodial account
Refers to an account (whether a segregated account at a financial institution or
a set-aside on the organization's books and records) over which the
organization has signature authority, in which the funds are held for the benefit
of other organizations or individuals, whether or not the funds are reported on
Part X, line 21, and whether or not the account is labeled as “escrow account,”
“custodial account,” “trust account,” or some similar term. An escrow or
custodial account doesn't include a split-interest trust (or the beneficial interest
in such trust) described in section 4947(a)(2) for which the filing organization is
a trustee, other than a trust in the trade or business of lending money; repairing
credit; or providing debt management plan services, payment processing, or
similar services.
Excess benefit transaction
In the case of an applicable tax-exempt organization, any transaction in
which an excess benefit is provided by the organization, directly or indirectly to,
or for the use of, any disqualified person, as defined in section 4958. Excess
benefit generally means the excess of the economic benefit received from the
applicable organization over the consideration given (including services) by a
disqualified person, but see the special rules below regarding donor advised
funds and supporting organizations. See Appendix G for more information.
Donor advised fund. For a donor advised fund, an excess benefit
transaction also includes a grant, loan, compensation, or similar payment from
the fund to a:
Donor or donor advisor,
•
•
•
•
Family member of a donor or donor advisor,
35% controlled entity of a donor or donor advisor, or
35% controlled entity of a family member of a donor or donor advisor.
The excess benefit in this transaction is the amount of the grant, loan,
compensation, or similar payments.
For additional information, see the Instructions for Form 4720.
Supporting organization. For any supporting organization, defined in
section 509(a)(3), an excess benefit transaction also includes grants, loans,
compensation, or similar payments provided by the supporting organization to
a:
Substantial contributor,
•
•
•
•
Family member of a substantial contributor,
35% controlled entity of a substantial contributor, or
35% controlled entity of a family member of a substantial contributor.
For this purpose, the excess benefit is defined as the amount of the grant, loan,
compensation, or similar payments. Additionally, an excess benefit transaction
includes any loans provided by the supporting organization to a disqualified
person (other than an organization described in section 509(a)(1), (2), or (4)).
Exempt bond
See Tax-exempt bond.
Fair market value (FMV)
The price at which property, or the right to use property, would change hands
between a willing buyer and a willing seller, neither being under any compulsion
to buy, sell, or transfer property or the right to use property, and both having
reasonable knowledge of relevant facts.
2023 Instructions for Form 990
61
Family member, family relationship
FIN 48 (FASB ASC 740)
Unless specified otherwise, the family of an individual includes only his or her
spouse (see Rev. Rul. 2013-17 regarding same-sex marriage), ancestors,
brothers and sisters (whether whole or half blood), children (whether natural or
adopted), grandchildren, great-grandchildren, and spouses of brothers, sisters,
children, grandchildren, and great-grandchildren.
Financial Accounting Standards Board (FASB) Interpretation No. 48,
Accounting for Uncertainty in Income Taxes, an interpretation of FASB
Statement No. 109, now codified in FASB Accounting Standards Codification
740, Income Taxes (ASC 740). The organization can be required to provide in
Schedule D (Form 990), Supplemental Financial Statements, the text of the
footnote to its financial statements regarding the organization's liability for
uncertain tax positions under FIN 48 (ASC 740).
Financial statements
An organization's statements of revenue and expenses and balance sheet, or
similar statements prepared regarding the financial operations of the
organization.
Fiscal year
An annual accounting period ending on the last day of a month other than
December. See also Tax year and Current year.
Foreign government
A governmental agency or entity, or a political subdivision thereof, that isn't
classified as a United States agency or governmental unit, regardless of
where it is located or operated.
Foreign individual
A person, including a U.S. citizen or resident, who lives or resides outside the
United States. For purposes of Form 990, Part IX, and Schedule F (Form 990),
Statement of Activities Outside the United States, a person who lives or resides
outside the United States at the time the grant is paid or distributed to the
individual is a foreign individual.
Foreign organization
An organization that isn't a domestic organization. A foreign organization
includes an affiliate that is organized as a legal entity separate from the filing
organization, but doesn't include any branch office, account, or employee of a
domestic organization located outside the United States.
Fundraising
See Fundraising activities.
Fundraising activities
Activities undertaken to induce potential donors to contribute money, securities,
services, materials, facilities, other assets, or time. They include publicizing and
conducting fundraising campaigns; maintaining donor mailing lists;
conducting fundraising events; preparing and distributing fundraising
manuals, instructions, and other materials; professional fundraising
services; and conducting other activities involved with soliciting contributions
from individuals, foundations, governments, and others. Fundraising activities
don't include gaming, the conduct of any trade or business that is regularly
carried on, or activities substantially related to the accomplishment of the
organization's exempt purpose (other than by raising funds).
Fundraising events
Include dinners and dances, door-to-door sales of merchandise, concerts,
carnivals, sports events, auctions, casino nights (in which participants can play
casino-style games but the only prizes or auction items provided to participants
are noncash items that were donated to the organization), and similar events
not regularly carried on that are conducted for the primary purpose of raising
funds. Fundraising events don't include:
1. The conduct of a trade or business that is regularly carried on;
2. Activities substantially related to the accomplishment of the
organization's exempt purposes (other than by raising funds);
3. Solicitation campaigns that generate only contributions, which may
involve gifts of goods or services from the organization of only nominal value, or
sweepstakes, lotteries, or raffles in which the names of contributors or other
respondents are entered in a drawing for prizes of only nominal value; and
4. Gaming.
GAAP
See Generally accepted accounting principles.
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2023 Instructions for Form 990
Gaming
Includes (but isn't limited to) bingo, pull tabs/instant bingo (including satellite
and progressive or event bingo), Texas Hold-Em Poker, 21, and other card
games involving betting, raffles, scratch-offs, charitable gaming tickets,
break-opens, hard cards, banded tickets, jar tickets, pickle cards, Lucky Seven
cards, Nevada Club tickets, casino nights/Las Vegas nights (other than events
not regularly carried on in which participants can play casino-style games but
the only prizes or auction items provided to participants are noncash items that
were donated to the organization, which events are fundraising events), and
coin-operated gambling devices. Coin-operated gambling devices include slot
machines, electronic video slot or line games, video poker, video blackjack,
video keno, video bingo, video pull tab games, etc. See Pub. 3079, Tax-Exempt
Organizations and Gaming.
Generally accepted accounting principles/
GAAP
The accounting principles set forth by the Financial Accounting Standards
Board (FASB) and the American Institute of Certified Public Accountants
(AICPA) that guide the work of accountants in reporting financial information
and preparing audited financial statements for organizations.
Governing body
The group of one or more persons authorized under state law to make
governance decisions on behalf of the organization and its shareholders or
members, if applicable. The governing body is, generally speaking, the board of
directors (sometimes referred to as “board of trustees”) of a corporation or
association, or the trustee or trustees of a trust (sometimes referred to as the
“board of trustees”).
Government official
Governmental issuer
Governmental unit
A federal, state, or local official described within section 4946(c).
A state or local governmental unit that issues a tax-exempt bond.
A state, a territory of the United States, or a political subdivision of a state
or U.S. territory, the United States, or the District of Columbia. See section
170(c)(1).
Grants and other assistance
For purposes of Part IX, lines 1–3; Schedule F (Form 990); and Schedule I
(Form 990), includes awards, prizes, contributions, noncash assistance, cash
allocations, stipends, scholarships, fellowships, research grants, and similar
payments and distributions made by the organization during the tax year. It
doesn't include salaries or other compensation to employees or payments to
independent contractors if the primary purpose is to serve the direct and
immediate needs of the organization (such as legal, accounting, or fundraising
services); the payment of any benefit by a section 501(c)(9) voluntary
employees' beneficiary association (VEBA) to employees of a sponsoring
organization or contributing employer, if such payment is made under the terms
of the VEBA and in compliance with section 505; or payments or other
assistance to affiliates or branch offices that aren't organized as legal entities
separate from the filing organization.
Gross proceeds
Gross receipts
For purposes of Schedule K (Form 990), Supplemental Information on
Tax-Exempt Bonds, generally any sale proceeds, investment proceeds,
transferred proceeds, and replacement proceeds of an issue. See Regulations
sections 1.148-1(b) and -1(c).
The total amounts the organization received from all sources during its tax year,
without subtracting any costs or expenses. See Appendix B. How To Determine
Whether an Organization's Gross Receipts Are Normally $50,000 (or $5,000)
or Less and Appendix C. Special Gross Receipts Tests for Determining Exempt
Status of Section 501(c)(7) and 501(c)(15) Organizations.
Group exemption
Tax exemption of a group of organizations all exempt under the same Code
section, applied for and obtained by a central organization on behalf of
subordinate organizations under the central organization's general
supervision or control. See Rev. Proc. 80-27, 1980-1 C.B. 677; Rev. Proc.
96-40, 1996-2 C.B. 301; and Appendix E. Group Returns—Reporting
Information on Behalf of the Group, for more information.
2023 Instructions for Form 990
63
Group return
A Form 990 filed by the central organization of a group exemption for two or
more of the subordinate organizations. See General Instructions, Section I.
Group Return, earlier, and Appendix E. Group Returns—Reporting Information
on Behalf of the Group, for more information.
Highest compensated employee
One of the five highest compensated employees of the organization (including
employees of a disregarded entity of the organization), other than current
officers, directors, trustees, or key employees, whose aggregate
reportable compensation from the organization and related organizations
is greater than $100,000 for the calendar year ending with or within the
organization's tax year. These employees should be reported on Part VII,
Section A, of Form 990.
Historical treasure
A building, structure, area, or property (real or personal) with recognized
cultural, aesthetic, or historical value that is significant in the history,
architecture, archaeology, or culture of a country, state, or city.
Hospital/hospital facility
For purposes of Schedule H (Form 990), Hospitals, a hospital, or hospital
facility, is a facility that is, or is required to be, licensed, registered, or similarly
recognized by a state as a hospital. This includes a hospital facility that is
operated through a disregarded entity or a joint venture treated as a
partnership for federal income tax purposes. It doesn't include hospital facilities
that are located outside the United States. It also doesn't include hospital
facilities that are operated by entities organized as separate legal entities from
the organization that are taxable as a corporation for federal tax purposes
(except for members of a group exemption included in a group return filed by
an organization).
Hospital organization
An organization which operates one or more hospital facilities.
Hospital (or cooperative hospital service
organization)
For purposes of Schedule A (Form 990), Public Charity Status and Public
Support, a hospital (or cooperative hospital service organization) is an
organization whose main purpose is to provide hospital or medical care. For
purposes of Schedule A, a rehabilitation institution or an outpatient clinic can
qualify as a hospital if its principal purposes or functions are the providing of
hospital or medical care, but the term doesn't include medical schools, medical
research organizations, convalescent homes, homes for children or the aged,
animal hospitals, or vocational training institutions for handicapped individuals.
Household goods
Include furniture, furnishings, electronics, appliances, linens, and other similar
items. They don't include food, paintings, antiques and other objects of art,
jewelry and gems (other than costume jewelry), and collections.
Independent contractor
An individual or organization that receives compensation for providing services
to the organization but who isn't treated as an employee. See Pub. 1779 for
more information.
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2023 Instructions for Form 990
Independent voting member of governing
body
A voting member of the governing body, if all four of the following
circumstances applied at all times during the organization's tax year.
1. The member wasn't compensated as an officer or other employee of
the organization or of a related organization (see the Instructions for
Schedule R (Form 990), Related Organizations and Unrelated Partnerships),
except as provided in the religious exception discussed in the instructions for
Form 990, Part VI.
2. The member didn't receive total compensation or other payments
exceeding $10,000 during the organization's tax year from the organization or
from related organizations as an independent contractor, other than
reasonable compensation for services provided in the capacity as a member
of the governing body. For example, a person who receives reasonable
expense reimbursements and reasonable compensation as a director of the
organization doesn't cease to be independent merely because he or she also
received payments of $7,500 from the organization for other arrangements.
3. Neither the member, nor any family member of the member, was
involved in a transaction with the organization (whether directly or indirectly
through affiliation with another organization) required to be reported on
Schedule L (Form 990), Transactions With Interested Persons, for the
organization's tax year.
4. Neither the member, nor any family member of the member, was
involved in a transaction with a taxable or tax-exempt related organization of a
type and amount that would be reportable on Schedule L (Form 990) if required
to be filed by the related organization.
A member of the governing body isn't considered to lack independence merely
because of any of the following circumstances.
1. The member is a donor to the organization, regardless of the amount of
the contribution.
2. The member has taken a bona fide vow of poverty and either:
a. Receives compensation as an agent of a religious order or a section
501(d) religious or apostolic organization, but only under circumstances in
which the member doesn't receive taxable income (for example, Rev. Rul.
77-290, 1977-2 C.B. 26; and Rev. Rul. 80-332, 1980-2 C.B. 34); or
b. Belongs to a religious order that receives sponsorship or payments from
the organization that don't constitute taxable income to the member.
3. The member receives financial benefits from the organization solely in
the capacity of being a member of the charitable or other class served by the
organization in the exercise of its exempt function, such as being a member of a
section 501(c)(6) organization, so long as the financial benefits comply with the
organization's terms of membership.
Initial contract
A binding written contract between an applicable tax-exempt organization
and a person who wasn't a disqualified person immediately before entering
into the contract.
Instant bingo
See Pull tabs.
Institutional trustee
A trustee that isn't an individual or natural person but an organization. For
instance, a bank or trust company serving as the trustee of a trust is an
institutional trustee.
Joint venture
Unless otherwise provided, a partnership, limited liability company, or other
entity treated as a partnership for federal tax purposes, as described in
Regulations sections 301.7701-1 through 301.7701-3.
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Key employee
For purposes of Form 990, an employee of an organization (other than an
officer, director, or trustee) who meets all three of the following tests applied
in the following order.
1. $150,000 Test. Receives reportable compensation from the
organization and all related organizations in excess of $150,000 for the
calendar year ending with or within the organization's tax year.
2. Responsibility Test. The employee:
a. Has responsibilities, powers or influence over the organization as a whole
similar to those of officers, directors, or trustees;
b. Manages a discrete segment or activity of the organization that represents
10% or more of the activities, assets, income, or expenses of the organization,
as compared to the organization as a whole; or
c. Has or shares authority to control or determine 10% or more of the
organization's capital expenditures, operating budget, or compensation for
employees.
3. Top 20 Test. Is one of the 20 employees (that satisfy the $150,000 Test
and Responsibility Test) with the highest reportable compensation from the
organization and related organizations for the calendar year ending with or
within the organization's tax year.
See the instructions for Part VII for examples of key employees.
Legislation
Includes action by Congress, any state legislature, any local council, or similar
governing body about acts, bills, resolutions, or similar items, or action by the
public in referenda, ballot initiatives, constitutional amendments, or similar
procedures. It doesn't include actions by executive, judicial, or administrative
bodies.
Lobbying
See Lobbying activities.
Lobbying activities
All activities intended to influence foreign, national, state, or local legislation.
Such activities include direct lobbying (attempting to influence the legislators)
and grassroots lobbying (attempting to influence legislation by influencing the
general public).
Maintaining offices, employees, or agents
Management company
For purposes of Schedule F (Form 990), Statement of Activities Outside the
United States, includes principal, regional, district, or branch offices, such
offices maintained by agents, independent contractors, and persons situated at
those offices paid wages for services performed. “Agent” is defined under
traditional agency principles (but doesn't include volunteers).
An organization that performs management duties for another organization
customarily performed by or under the direct supervision of the other
organization's officers, directors, trustees, or key employees. These
management duties include, but aren't limited to, hiring, firing, and supervising
personnel; planning or executing budgets or financial operations; and
supervising exempt operations or unrelated trades or businesses. When a
management company is used, the employees may be employed by either the
management company or the exempt organization. Whether the management
company or the exempt organization is the employer will be determined by the
facts and circumstances.
Medical research
For purposes of a medical research organization operated in conjunction with a
hospital (see Schedule A (Form 990), Public Charity Status and Public
Support), medical research means investigations, studies, and experiments
performed to discover, develop, or verify knowledge relating to physical or
mental diseases and impairments and their causes, diagnoses, prevention,
treatments, or control.
Member of the governing body
A person who serves on an organization's governing body, including a
director or trustee, but not if the person lacks voting power.
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Net assets with donor restrictions
Includes endowment funds established by donor-restricted gifts that are
maintained to provide a source of income for either a specified period of time or
until a specific event occurs (see ASC 958-205-45), as well as all other
temporarily restricted net assets held in a donor-restricted endowment,
including unappropriated income from permanent endowments that isn't
subject to a permanent restriction. After Accounting Standards Update
2016-14, ASC 958 uses two classifications, instead of three—net assets with
donor restrictions and net assets without donor restrictions. ASC 958 no longer
uses the term “temporarily-restricted endowment.”
The part of net assets of a not-for-profit entity that is subject to donor-imposed
restrictions.
Net assets without donor restrictions
Noncash contributions
Part of net assets of a not-for-profit entity that is not subject to donor-imposed
restrictions.
Contributions of property, tangible or intangible, other than money. Noncash
contributions include, but aren't limited to, stocks, bonds, and other securities;
real estate; works of art; stamps, coins, and other collectibles; clothing and
household goods; vehicles, boats, and airplanes; inventories of food, medical
equipment or supplies, books, or seeds; intellectual property, including patents,
trademarks, copyrights, and trade secrets; donated items that are sold
immediately after donation, such as publicly traded stock or used cars; and
items donated for sale at a charity auction. Noncash contributions don't include
volunteer services performed for the reporting organization or donated use of
materials, facilities, or equipment.
Nonexempt charitable trust
A trust that meets the following conditions.
Isn't exempt from tax under section 501(a).
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•
•
All of its unexpired interests are devoted to charitable purposes.
A charitable deduction was allowed for contributions to the trust under section
170, section 545(b)(2), section 642(c), section 2055, section 2106(a)(2), or section
2522, or for amounts paid by or permanently set aside by the trust under section
642(c).
Nonqualified deferred compensation
Deferred compensation that is earned pursuant to a nonqualified plan or
nongovernmental section 457 plan. Different rules can apply for purposes of
identifying arrangements subject to sections 83, 409A, 457(f), and 3121(v).
Earned but unpaid incentive compensation can be deferred pursuant to a
nonqualified deferred compensation plan.
Officer
Unless otherwise provided (for example, Signature Block, principal officer in
Heading), a person elected or appointed to manage the organization's daily
operations at any time during the tax year, such as a president, vice president,
secretary, treasurer, and, in some cases, Board Chair. The officers of an
organization are determined by reference to its organizing document, bylaws, or
resolutions of its governing body, or as otherwise designated consistent with
state law, but at a minimum include those officers required by applicable state
law. For purposes of Form 990, treat the organization's top management
official and top financial official as officers.
“On behalf of” issuer
A corporation organized under the general nonprofit corporation law of a state
whose obligations are considered obligations of a state or local governmental
unit. See Rev. Proc. 82-26, 1982-1 C.B. 476, for a description of the
circumstances under which the IRS will ordinarily issue an advance ruling that
the obligations of a nonprofit corporation were issued on behalf of a state or
local governmental unit. See also Rev. Rul. 63-20, 1963-1 C.B. 24; Rev. Rul.
59-41, 1959-1 C.B. 13; and Rev. Rul. 54-296, 1954-2 C.B. 59. An “on behalf of”
issuer also includes any corporation organized by a state or local governmental
unit specifically to issue tax-exempt bonds to further public purposes. See
Rev. Rul. 57-187, 1957-1 C.B. 65.
Organization manager
For purposes of section 4958, any officer, director, or trustee of an
applicable tax-exempt organization, or any individual having powers or
responsibilities similar to officers, directors, or trustees of the organization,
regardless of title.
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Political campaign activities
All activities that support or oppose candidates for elective federal, state, or
local public office. It doesn't matter whether the candidate is elected. A
candidate is one who offers himself or herself or is proposed by others for
public office. Political campaign activity doesn't include any activity to
encourage participation in the electoral process, such as voter registration or
voter education, provided that the activity doesn't directly or indirectly support
or oppose any candidate.
Political subdivision
Principal officer
A division of any state or local governmental unit which is a municipal
corporation or which has been delegated the right to exercise part of the
sovereign power of the unit. Sovereign power includes the power to make and
enforce laws.
For purposes of the Heading on page 1 of Form 990 (but not for the purposes of
the Signature Block or other parts of the Form 990), an officer of the
organization who, regardless of title, has ultimate responsibility for
implementing the decisions of the organization's governing body, or for
supervising the management, administration, or operation of the organization.
Private business use
Private foundation
For purposes of Schedule K (Form 990), Supplemental Information on
Tax-Exempt Bonds, use by the organization or another 501(c)(3) organization in
an unrelated trade or business. Private business use also generally includes
any use by a nongovernmental person, other than a section 501(c)(3)
organization, unless otherwise permitted through an exception or safe harbor
provided under the regulations or a revenue procedure.
An organization described in section 501(c)(3) that isn't a public charity.
Some private foundations are classified as operating foundations (also known
as private operating foundations) under section 4942(j)(3) or exempt operating
foundations under section 4940(d)(2). A private foundation retains its private
foundation status until such status is terminated under section 507. Thus, a
tax-exempt private foundation becomes a taxable private foundation if its
section 501(c)(3) status is revoked.
Proceeds
For purposes of Schedule K (Form 990), Supplemental Information on
Tax-Exempt Bonds, generally the sale proceeds of an issue (other than those
sale proceeds used to retire bonds of the issue that aren't deposited in a
reasonably required reserve or replacement fund). Proceeds also include any
investment proceeds from investments that accrue during the project period
(net of rebate amounts attributable to the project period). See Regulations
section 1.141-1(b).
Professional fundraising services
Services performed for the organization requiring the exercise of professional
judgment or discretion consisting of planning, management, preparation of
materials (such as direct mail solicitation packages and applications for grants
or other assistance), provision of advice and consulting regarding solicitation of
contributions, and direct solicitation of contributions, such as soliciting
restricted or unrestricted grants to provide services to the general public.
However, professional fundraising doesn't include services provided by the
organization's employees in their capacity as employees (except as provided
in the instructions for Part I, line 16a), nor does professional fundraising include
purely ministerial tasks, such as printing, mailing services, or receiving and
depositing contributions to a charity, such as services provided by a bank or
caging service.
Program-related investment
Public charity
Investments made primarily to accomplish the organization's exempt purposes
rather than to produce income. Examples of program-related investments
include student loans and notes receivable from other exempt organizations
that obtained the funds to pursue the filing organization's exempt function.
An organization described in section 501(c)(3) and that is excepted from private
foundation status because it is described in section 509(a)(1) (which
cross-references sections 170(b)(1)(A)(i) through (vi), and (ix)), 509(a)(2),
509(a)(3), or 509(a)(4).
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2023 Instructions for Form 990
Publicly traded securities
Generally, include common and preferred stocks, bonds (including
governmental obligations such as bonds and Treasury bills), mutual fund
shares, and other investments listed and regularly traded in an over-the-counter
market or an established exchange and for which market quotations are
published or are otherwise readily available. (See further explanation in the
instructions for Part X, line 11; and Schedule M (Form 990), Noncash
Contributions, line 9).
Pull tabs
Includes games in which an individual places a wager by purchasing preprinted
cards that are covered with pull tabs. Winners are revealed when the individual
pulls back the sealed tabs on the front of the card and compares the patterns
under the tabs with the winning patterns preprinted on the back of the card.
Included in the definition of pull tabs are “instant bingo,” “mini bingo,” and other
similar scratch-off cards. Satellite, Internet, and progressive or event bingo are
games conducted in many different places simultaneously and the winners
aren't all present when the wagers are placed, the winners are determined, and
the prizes are distributed. Revenue and expenses associated with satellite,
Internet, and progressive bingo should be included under this category.
However, certain bingo games within a hybrid gaming event (such as
progressive or event bingo) can also qualify as bingo if the individual game
meets the preceding definition of bingo.
Qualified 501(c)(3) bond
A tax-exempt bond, the proceeds of which are used by a section 501(c)(3)
organization to advance its charitable purpose. Requirements generally
applicable to a qualified section 501(c)(3) bond under section 145 include the
following.
1. All property financed by the bond issue is to be owned by a section
501(c)(3) organization or a governmental unit.
2. At least 95% of net proceeds of the bond issue are used either by a
governmental unit or a section 501(c)(3) organization in activities that aren't
unrelated trades or businesses (determined by applying section 513).
Qualified conservation contribution
Any contribution of a qualified real property interest to a qualified organization
exclusively for conservation purposes. A “qualified real property interest”
means any of the following interests in real property.
1. The entire interest of the donor.
2. A remainder interest.
3. A restriction (such as an easement), granted in perpetuity, on the use
which may be made of the real property.
A “qualified organization” means an organization which is:
a. A governmental unit described in section 170(c)(1),
b. A publicly supported charitable organization described in sections 509(a)(1)
and 170(b)(1)(A)(vi) or section 509(a)(2) (see the instructions for Parts II and III
of Schedule A (Form 990)), or
c. A supporting organization described in sections 501(c)(3) and 509(a)(3)
that is controlled by a governmental unit or a publicly supported charitable
organization.
In addition, a qualified organization must have a commitment to protect the
conservation purposes of a qualified conservation contribution, and have the
resources to enforce the restrictions.
A “conservation purpose” means:
1. The preservation of land areas for outdoor recreation by, or for the
education of, the general public;
2. The protection of a relatively natural habitat of fish, wildlife, plants, or
similar ecosystems;
3. The preservation of open space (including farm and forest land) where
such preservation will yield a significant public benefit and is for the scenic
enjoyment of the general public or is pursuant to a clearly delineated federal,
state, or local governmental conservation policy; or
4. The preservation of a historically important land area or a certified
historic structure.
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See section 170(h) for additional information, including special rules about the
conservation purpose requirement for buildings in registered historic districts.
See also Conservation easement.
Qualified state or local political organization
A type of political organization that meets the following requirements.
It limits its exempt function to the selection process relating solely to any state or
•
local public office or office in a state or local political organization.
It is required under a state law to report to a state agency (and does report)
•
information that would otherwise be required to be reported on Form 8872, Political
Organization Report of Contributions and Expenditures, or it is required to report
under state law (and does report) at least the following information.
1. The name and address of every person who contributes a total of $500 or
more during the calendar year and the amount of each contribution.
2. The name and address of every person to whom the organization makes
expenditures aggregating $800 or more during the calendar year, and the amount
of each expenditure.
3. Any additional information specified in section 527(j)(3), if state law requires
the reporting of that information to the state agency.
The state agency makes the reports filed by the organization publicly available.
The organization makes the reports filed with the state agency publicly available
•
•
in the manner described in section 6104(d).
No federal candidate or office holder controls or materially participates in the
•
direction of the organization, solicits contributions to the organization, or directs
any of the organization's disbursements.
Quasi-endowment
Net assets without donor restrictions designated by an entity's governing board
to be invested to provide income for generally a long but not necessarily
specified period. A board-designated endowment, which results from an
internal designation, is generally not donor-restricted and is classified as net
assets without donor restrictions. The governing board has the right to decide
at any time to expend such funds. Also referred to as a “board-designated
endowment.”
Reasonable compensation
Reasonable effort
The value that would ordinarily be paid for like services by like enterprises
under like circumstances.
A reasonable amount of effort in information gathering that the organization is
expected to undertake in order to provide information requested on Form 990.
See the specific instructions for Part VI, lines 1b and 2; Part VII, Section A
(compensation from related organizations); and Schedule L (Form 990), Parts
III and IV, for examples of reasonable efforts.
Refunding escrow
Refunding issue
One or more funds established as part of a single transaction or a series of
related transactions, containing proceeds of a refunding issue and any other
amounts to provide for payment of principal or interest on one or more prior
issues. See Regulations section 1.148-1(b).
An issue of obligations, the proceeds of which are used to pay principal,
interest, or redemption price on another issue (a prior issue), including the
issuance costs, accrued interest, capitalized interest on the refunding issue, a
reserve or replacement fund, or similar costs, if any, properly allocable to that
refunding issue. A current refunding issue is a refunding issue that is issued not
more than 90 days before the last expenditure of any proceeds of the refunding
issue for the payment of principal or interest on the prior issue. An advance
refunding issue is a refunding issue that isn't a current refunding issue. See
Regulations sections 1.150-1(d)(1), 1.150-1(d)(3), and 1.150-1(d)(4).
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2023 Instructions for Form 990
Related organization
An organization, including a nonprofit organization, a stock corporation, a
partnership or limited liability company, a trust, and a governmental unit or
other government entity, that stands in one or more of the following
relationships to the filing organization at any time during the tax year.
Parent: an organization that controls the filing organization.
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•
•
Subsidiary: an organization controlled by the filing organization.
Brother/Sister: an organization controlled by the same person or persons that
control the filing organization. However, if the filing organization is a trust that has a
bank or financial institution trustee that is also the trustee of another trust, the other
trust isn't a Brother/Sister related organization of the filing organization on the
ground of common control by the bank or financial institution trustee.
Supporting/Supported: an organization that claims to be at any time during the
•
tax year, or that is classified by the IRS at any time during the tax year, as (i) a
supporting organization of the filing organization within the meaning of section
509(a)(3), if the filing organization is a supported organization within the meaning
of section 509(f)(3); or (ii) a supported organization, if the filing organization is a
supporting organization.
Sponsoring Organization of a VEBA: an organization that establishes or
•
maintains a section 501(c)(9) voluntary employees’ beneficiary association (VEBA)
during the tax year. A sponsoring organization of a VEBA also includes an
employee organization, association, committee, joint board of trustees, or other
similar group of representatives of the parties which establish or maintain a VEBA.
Although a VEBA must report a sponsoring organization as a related organization,
a sponsoring organization shouldn't report a VEBA as a related organization,
unless the VEBA is related to the sponsoring organization in some other capacity
described in this definition.
Contributing Employer of a VEBA: an employer that makes a contribution or
•
contributions to the VEBA during the tax year. Although a VEBA must report a
contributing employer as a related organization, a contributing employer shouldn't
report a VEBA as a related organization, unless the VEBA is related to the
contributing employer in some other capacity described in this definition.
The organization must determine its related organizations for purposes of
completing Form 990, Parts VI (Governance), VII (Compensation), VIII
(Statement of Revenue), and X (Balance Sheet); Schedule D (Form 990);
Schedule J (Form 990); and Schedule R (Form 990). See the instructions for
those parts and schedules for related organization reporting requirements.
Religious order
An organization described in Rev. Proc. 91-20, 1991-1 C.B. 524.
Reportable compensation
In general, the aggregate compensation that is reported (or required to be
reported, if greater) in box 1 or 5 of Form W-2 (whichever amount is greater);
box 1 of Form 1099-NEC; and/or in box 6 of Form 1099-MISC, for the calendar
year ending with or within the organization's tax year. For foreign persons who
receive U.S. source income, reportable compensation includes the amount
reportable in box 2 of Form 1042-S. For persons for whom compensation
reporting on Form W-2, 1099-NEC, 1099-MISC, or 1042-S isn't required
(certain foreign persons, institutional trustees, and persons whose
compensation was below the $600 reporting threshold for Form 1099-NEC or
1099-MISC), reportable compensation includes the total value of the
compensation paid in the form of cash or property during the calendar year
ending with or within the organization's tax year.
Review of financial statement
An examination of an organization's financial records and practices by an
independent accountant with the objective of assessing whether the financial
statements are plausible, without the extensive testing and external validation
procedures of an audit.
School
An organization, the primary function of which is the presentation of formal
instruction, and which has a regular faculty, a curriculum, an enrolled body of
students, and a place where educational activities are regularly conducted.
Security/securities
Any bond, debenture, note, or certificate or other evidence of indebtedness
issued by a corporation, government or political subdivision, share of stock,
voting trust certificate, or any certificate of interest or participation in, certificate
of deposit or receipt for, temporary or interim certificate for, or warrant or right to
subscribe to or purchase, any of the foregoing.
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Short accounting period
An accounting period of less than 12 months, which exists when an
organization changes its annual accounting period, and which can exist in its
initial or final year of existence (see Tax year).
Short period
See Short accounting period.
Significant disposition of net assets
A disposition of net assets, consisting of a sale, exchange, disposition, or other
transfer of more than 25% of the FMV of the organization's net assets during
the year, whether or not the organization received full or adequate
consideration. A significant disposition of net assets involves:
1. One or more dispositions during the organization's tax year, amounting
to more than 25% of the FMV of the organization's net assets as of the
beginning of its tax year; or
2. One of a series of related dispositions or events begun in a prior year
that, when combined, comprise more than 25% of the FMV of the
organization's net assets as of the beginning of the tax year when the first
disposition in the series was made. Whether a significant disposition of net
assets occurred through a series of related dispositions depends on the facts
and circumstances in each case.
Examples of the types of transactions that are “a significant disposition of net
assets” required to be reported on Schedule N (Form 990), Liquidation,
Termination, Dissolution, or Significant Disposition of Assets, Part II, include:
Taxable or tax-free sales or exchanges of exempt assets for cash or other
•
consideration (a social club described in section 501(c)(7) selling land or an
exempt organization selling assets it had used to further its exempt purposes);
Sales, contributions, or other transfers of assets to establish or maintain a
•
partnership, joint venture, or corporation (for-profit or nonprofit) whether or not the
sales or transfers are governed by section 721 or section 351, whether or not the
transferor received an ownership interest in exchange for the transfer;
Sales of assets by a partnership or joint venture in which the exempt partner has
•
an ownership interest; and
Transfers of assets pursuant to a reorganization in which the organization is a
•
surviving entity.
The following types of situations aren't considered significant dispositions of net
assets for purposes of Schedule N, Part II.
The change in composition of publicly traded securities held in an exempt
•
organization's passive investment portfolio.
Asset sales made in the ordinary course of the organization's exempt activities to
•
accomplish the organization's exempt purposes, for example, gross sales of
inventory.
Grants or other assistance made in the ordinary course of the organization's
•
exempt activities to accomplish the organization's exempt purposes, for example,
the regular charitable distributions of a United Way or other federated fundraising
organization.
A decrease in the value of net assets due to market fluctuation in the value of
•
assets held by the organization.
Transfers to a disregarded entity of which the organization is the sole member.
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Sponsoring organization
State of legal domicile
Any organization which is all of the following.
Described in section 170(c), other than governmental units described in section
•
170(c)(1) and without regard to section 170(c)(2)(A).
Not a private foundation as defined in section 509(a).
Maintains one or more donor advised funds.
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For a corporation, the state of incorporation (country of incorporation for a
foreign corporation formed outside the United States). For a trust or other entity,
the state whose law governs the organization's internal affairs (the foreign
country whose law governs for a foreign organization other than a corporation).
Subordinate organization
Supported organization
One of the organizations, typically local in nature, that is recognized as exempt
in a group exemption letter and subject to the general supervision and control
of a central organization.
A public charity described in section 509(a)(1) or 509(a)(2) supported by a
supporting organization described in section 509(a)(3).
72
2023 Instructions for Form 990
Supporting organization
A public charity claiming status on Form 990 or otherwise under section 509(a)
(3). A supporting organization is organized and operated exclusively to support
one or more supported organizations. A supporting organization that is
operated, supervised, or controlled by one or more supported organizations is
a Type I supporting organization. The relationship of a Type I supporting
organization with its supported organization(s) is comparable to that of a
parent-subsidiary relationship. A supporting organization supervised or
controlled in connection with one or more supported organizations is a Type II
supporting organization. A Type II supporting organization is controlled or
managed by the same persons that control or manage its supported
organization(s). A supporting organization that is operated in connection with
one or more supported organizations is a Type III supporting organization. A
Type III supporting organization is further considered either functionally
integrated with its supported organization(s) or not functionally integrated with
its supported organization(s) (Type III other). Finally, a supporting organization
can't be controlled directly or indirectly by one or more disqualified persons
(as defined in section 4946), other than foundation managers and other than
one or more public charities described in section 509(a)(1) or (2).
Tax-exempt bond
Tax year
An obligation issued by or on behalf of a governmental issuer on which the
interest paid is excluded from the holder's gross income under section 103. For
this purpose, a bond can be any form of indebtedness under federal tax law,
including a bond, note, loan, or lease-purchase agreement.
The annual accounting period for which the Form 990 is being filed, whether
the calendar year ending December 31 or a fiscal year ending on the last day of
any other month. The organization may have a short tax year in its first year of
existence, in any year when it changes its annual accounting period (for
example, from a December 31 year-end to a June 30 year-end), and in its last
year of existence (for example, when it merges into another organization or
dissolves). See also Current year, Fiscal year, and Short period.
Term endowment
An endowment fund established to provide income for a specified period.
Territory of the United States
Includes the Commonwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, Guam, American Samoa, and the U.S. Virgin
Islands.
Top financial official
The person who has ultimate responsibility for managing the organization's
finances, for example, the treasurer or chief financial officer.
Top management official
A person who has ultimate responsibility for implementing the decisions of the
organization's governing body or for supervising the management,
administration, or operation of the organization (for example, the organization's
president, CEO, or executive director).
Total assets
Trustee
The amount reported on Form 990, Part X, line 16, column (B).
See Director or trustee.
United States
Unless otherwise provided, includes the 50 states, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana
Islands, Guam, American Samoa, and the U.S. Virgin Islands.
Unrelated business
See Unrelated trade or business.
Unrelated business income
Unrelated business gross income
Unrelated organization
Income from an unrelated trade or business as defined in section 513.
Gross income from an unrelated trade or business as defined in section 513.
An organization that isn't a related organization to the filing organization.
Unrelated trade or business
Any trade or business, the conduct of which isn't substantially related to the
exercise or performance by the organization of its charitable, educational, or
other purpose or function constituting the basis for its exemption. See Pub. 598
and the Instructions for Form 990-T for a discussion of what is an unrelated
trade or business.
U.S. territory
See Territory of the United States.
2023 Instructions for Form 990
73
Volunteer
A person who serves the organization without compensation, for example, a
member of the organization's governing body who serves the organization
without compensation. “Compensation” for this purpose includes tips and
noncash benefits, except for:
Reimbursement of expenses under a reimbursement or other expense
•
allowance arrangement in which there is adequate accounting to the organization,
Working condition fringe benefits described in section 132,
•
•
Liability insurance coverage for acts performed on behalf of the exempt
organization, and
De minimis fringe benefits.
•
Voting member of the governing body
Works of art
A member of the organization's governing body with power to vote on all
matters that may come before the governing body (other than a conflict of
interest that disqualifies the member from voting).
Include paintings, sculptures, prints, drawings, ceramics, antiques, decorative
arts, textiles, carpets, silver, photography, film, video, installation and
multimedia arts, rare books and manuscripts, historical memorabilia, and other
similar objects. Art doesn't include collectibles.
Year of formation
The year in which the organization was created or formed under applicable
state law (if a corporation, the year of incorporation).
74
2023 Instructions for Form 990
Appendix of Special
Instructions to Form
990
Contents
A
B
C
D
E
F
G
H
I
Exempt Organizations Reference Chart
How To Determine Whether an Organization's Gross Receipts Are Normally $50,000 (or $5,000) or Less
Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and Section 501(c)(15) Organizations
Public Inspection of Returns
Group Returns—Reporting Information on Behalf of the Group
Disregarded Entities and Joint Ventures—Inclusion of Activities and Items
Section 4958 Excess Benefit Transactions
Forms and Publications To File or Use
Use of Form 990 or 990-EZ To Satisfy State Reporting Requirements
Contributions
J
2022 Instructions for Form 990
75
Appendix A. Exempt
Organizations
Reference Chart
Type of Organization
Corporations Organized Under Act of Congress
Internal Revenue Code Section
501(c)(1)
Title Holding Corporations
501(c)(2)
501(c)(3)
Charitable, Religious, Educational, Scientific, etc., Organizations
Civic Leagues and Social Welfare Organizations
Labor, Agricultural, and Horticultural Organizations
Business Leagues, etc.
501(c)(4)
501(c)(5)
501(c)(6)
Social and Recreation Clubs
501(c)(7)
Fraternal Beneficiary and Domestic Fraternal Societies and Associations
Voluntary Employees' Beneficiary Associations
Teachers' Retirement Fund Associations
501(c)(8) & (c)(10)
501(c)(9)
501(c)(11)
501(c)(12)
Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies,
Mutual or Cooperative Telephone Companies, etc.
Cemetery Companies
501(c)(13)
501(c)(14)
State-Chartered Credit Unions, Mutual Reserve Funds
Insurance Companies or Associations Other Than Life
Cooperative Organizations to Finance Crop Operations
Supplemental Unemployment Benefit Trusts
Employee Funded Pension Trusts (created before June 25, 1959)
Organizations of Past or Present Members of the Armed Forces
Black Lung Benefit Trusts
501(c)(15)
501(c)(16)
501(c)(17)
501(c)(18)
501(c)(19) & (c)(23)
501(c)(21)
Withdrawal Liability Payment Funds
501(c)(22)
Trusts described in section 4049 of the Employer Retirement Income Security
Act
501(c)(24)
Title Holding Corporations or Trusts
501(c)(25)
501(c)(26)
State-Sponsored Organizations Providing Health Coverage for High-Risk
Individuals
State-Sponsored Workmen's Compensation and Insurance and Reinsurance
Organizations
501(c)(27)
National Railroad Retirement Investment Trust
Qualified Nonprofit Health Insurance Issuers
Religious and Apostolic Associations
501(c)(28)
501(c)(29)
501(d)
Cooperative Hospital Service Organizations
501(e)
76
2023 Instructions for Form 990
Cooperative Service Organizations of Operating Educational Organizations
Amateur Sports Organizations
501(f)
501(j)
501(k)
501(n)
527
Child Care Organizations
Charitable Risk Pools
Political Organizations
1. Up to a year old and has received,
or donors have pledged to give, $7,500 or
less during its first tax year;
2. Between 1 and 3 years old and
averaged $6,000 or less in gross receipts
during each of its first 2 tax years; or
3. Three years old or more and
averaged $5,000 or less in gross receipts
for the immediately preceding 3 tax years
(including the year for which the return
would be filed).
Form 990-EZ. Gross receipts are the
Appendix B. How To
Determine Whether an
Organization's Gross
Receipts Are Normally
$50,000 (or $5,000) or
Less
sum of lines 5b, 6c, 7b, and 9 of Form
990-EZ, Part I.
Example. Organization M reported
$50,000 as total revenue on line 9 of its
Form 990-EZ. M added back the costs
and expenses it had deducted on lines
5b ($2,000), 6c ($1,500), and 7b ($500)
to its total revenue of $50,000 and
determined that its gross receipts for the
tax year were $54,000.
To figure whether an organization has to
file Form 990-EZ (or Form 990), apply the
$50,000 (or $5,000) gross receipts test
(below) using the following definition of
gross receipts and information in Figuring
Gross Receipts below.
$50,000 Gross Receipts
Test
Appendix C. Special
Gross Receipts Tests
for Determining Exempt
Status of Section 501(c)
(7) and 501(c)(15)
To determine whether an organization's
gross receipts are normally $50,000 or
less, apply the following test. An
organization's gross receipts are
considered to be normally $50,000 or
less if the organization is:
Gross Receipts
Gross receipts are the total amounts the
organization received from all sources
during its annual tax year (including short
years) without subtracting any costs or
expenses.
Organizations
1. Up to a year old and has received,
or donors have pledged to give, $75,000
or less during its first tax year;
2. Between 1 and 3 years old and
averaged $60,000 or less in gross
receipts during each of its first 2 tax
years; or
3. Three years old or more and
averaged $50,000 or less in gross
receipts for the immediately preceding 3
tax years (including the year for which the
return would be filed).
Section 501(c)(7) organizations (social
clubs) and section 501(c)(15)
Don't use the definition of gross
organizations (insurance companies)
apply the same gross receipts test as
other organizations to determine whether
they must file Form 990 or 990-EZ.
However, section 501(c)(7) and section
501(c)(15) organizations are also subject
to separate gross receipts tests to
determine whether they qualify as tax
exempt for the tax year. The following
tests use a special definition of gross
receipts for purposes of determining
whether these organizations are exempt
for a particular tax year.
receipts described in Appendix
!
CAUTION
C. Special Gross Receipts Tests
for Determining Exempt Status of Section
501(c)(7) and 501(c)(15) Organizations
to figure gross receipts for this purpose.
Those tests are limited to determining the
exempt status of section 501(c)(7) and
501(c)(15) organizations.
Gross receipts when acting as an
agent. If a local chapter of a section
501(c)(8) fraternal organization collects
insurance premiums for its parent lodge
and merely sends those premiums to the
parent without asserting any right to use
the funds or otherwise deriving any
benefit from them, the local chapter
doesn't include the premiums in its gross
receipts. The parent lodge reports them
instead. The same treatment applies in
other situations in which one organization
collects funds merely as an agent for
another.
If the organization's gross receipts are
normally $50,000 or less, it must submit
Form 990-N, Electronic Notice
Section 501(c)(7). A section 501(c)(7)
organization can receive up to 35% of its
gross receipts, including investment
income, from sources outside its
membership and remain tax exempt. Part
of the 35% (up to 15% of gross receipts)
can be from public use of a social club's
facilities.
Gross receipts, for purposes of
determining the tax-exempt status of
section 501(c)(7) organizations, are the
club's income from its usual activities and
include:
(e-Postcard) for Tax-Exempt
Organizations Not Required to File Form
990 or 990-EZ, if it chooses not to file
Form 990 or 990-EZ. In general,
organizations excepted from filing Form
990 or 990-EZ because of low gross
receipts must submit Form 990-N. See
filing exceptions described under General
Instructions, Section B, earlier.
$5,000 Gross Receipts
Test
Figuring Gross Receipts
Figure gross receipts for Form 990 and
990-EZ as follows.
To determine whether an organization's
gross receipts are normally $5,000 or
less, apply the following test. An
organization's gross receipts are
considered to be normally $5,000 or less
if the organization is:
Charges;
•
•
•
•
•
Admissions;
Membership fees;
Dues;
Form 990. Gross receipts are the sum of
lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b,
and 12 (column (A)) of Form 990, Part
VIII.
Assessments; and
2023 Instructions for Form 990
77
Investment income (dividends, rents,
premiums or premiums paid for
reinsurance;
2. Gross investment income of a
non-life insurance company (as
described in section 834(b)); and
3. Other items that are included in
the filer's gross income under subchapter
B, chapter 1, subtitle A, of the Code.
•
and similar receipts), and normal
recurring capital gains on investments.
The IRS can't disclose portions of an
exemption application relating to any
trade secrets, etc. Additionally, the IRS
generally can't disclose the names and
addresses of contributors. See the
Instructions for Schedule B (Form 990)
for more information about the disclosure
of that schedule.
Gross receipts for this purpose don't
include capital contributions (see
Regulations section 1.118-1), initiation
fees, or unusual amounts of income (the
sale of the clubhouse).
College fraternities or sororities
This definition doesn't, however, include
contributions to capital. For more
information, see Notice 2006-42.
Premiums. Premiums consist of all
amounts received as a result of entering
into an insurance contract. They are
reported on Form 990, Part VIII, line 2, or
on Form 990-EZ, Part I, line 2.
Anti-abuse rule. The anti-abuse rule,
found in section 501(c)(15)(C), explains
how gross receipts (including premiums)
from all members of a controlled group
are aggregated in figuring the above
tests.
or other organizations that
!
CAUTION
charge membership initiation
Notice 2008-49, 2008-20 I.R.B. 979,
provides interim guidance regarding the
requirement that section 501(c)(3)
organizations and the IRS make available
for public inspection Form 990-T.
fees, but not annual dues, must include
initiation fees in their gross receipts.
Section 501(c)(15). If any section
501(c)(15) insurance company (other
than life insurance) meets both parts of
the following test, then the company can
file Form 990 (or Form 990-EZ, if
applicable).
Form 990 or 990-EZ can only be
requested for section 527 organizations
for tax years beginning after June 30,
2000.
A return, report, notice, or exemption
application can be inspected at an IRS
office free of charge. Copies of these
items can also be obtained through the
organization as discussed in the following
section.
1. The company's gross receipts
must be equal to or less than $600,000.
2. The company's premiums must be
Appendix D. Public
more than 50% of its gross receipts.
If the company didn't meet this test and
the company is a mutual insurance
company, then it must meet the Alternate
test next to qualify to file Form 990 (or
Form 990-EZ, if applicable). Insurance
companies that don't qualify as tax
exempt must file Form 1120-PC, U.S.
Property and Casualty Insurance
Inspection of Returns
Some members of the public rely on
Form 990, or 990-EZ, as the primary or
sole source of information about a
particular organization. How the public
perceives an organization in those cases
may be determined by the information
presented on its returns.
Through the
Organization
Public inspection and distribution of
certain returns of unrelated business
income. Section 501(c)(3) organizations
that are required to file Form 990-T after
August 17, 2006, must make Form 990-T
available for public inspection under
section 6104(d)(1)(A)(ii).
Company Income Tax Return, or Form
1120, U.S. Corporation Income Tax
Return, as taxable entities for the year.
See Notice 2006-42, 2006-19 I.R.B. 878.
Alternate test. If any section 501(c)
(15) insurance company (other than life
insurance) is a mutual insurance
An organization's completed Form 990
or 990-EZ is available for public
inspection as required by section 6104.
Schedule B (Form 990), Schedule of
Contributors, is open for public inspection
for section 527 organizations filing Form
990 or 990-EZ. For other organizations
that file Form 990 or 990-EZ, the names
and addresses of contributors listed on
Schedule B aren't required to be made
available for public inspection. All other
information reported on Schedule B,
including the amount of contributions, the
description of noncash contributions, and
any other information, is required to be
made available for public inspection
unless it clearly identifies the contributor.
Form 990-T filed after August 17, 2006,
by a section 501(c)(3) organization to
report any unrelated business income is
also available for public inspection and
disclosure.
Public inspection and distribution of
returns and reports for a political or-
ganization. Section 527 political
company and it didn't meet the above
test, then the company must meet both
parts of the following alternate test.
organizations required to file Form 990 or
990-EZ must, in general, make their
Forms 8871, 8872, 990, or 990-EZ
available for public inspection in the same
manner as annual information returns of
section 501(c) organizations are made
available. See Public inspection and
distribution of applications for tax
1. The company's gross receipts
must be equal to or less than $150,000.
2. The company's premiums must be
more than 35% of its gross receipts.
If the company doesn't meet either test,
then it must file Form 1120-PC or Form
1120 (if the company isn't entitled to
insurance reserves) instead of Form 990
or 990-EZ.
exemption and annual information returns
of tax-exempt organizations, later.
Generally, Form 8871 and Form 8872 are
available for inspection and printing at
The alternate test doesn't apply if
Note that a section 527 political
any employee of the mutual
!
organization (and an organization
filing Form 990-PF) must disclose
TIP
CAUTION
insurance company or a member
Through the IRS
of the employee's family is an employee
of another company that is exempt under
section 501(c)(15) (or would be exempt if
this provision didn't apply).
their Schedule B (Form 990). See the
Instructions for Schedule B. The
penalties discussed in General
Use Form 4506-A, Request for a Copy of
Exempt or Political Organization IRS
Form, to request:
Instructions, Section H, Failure-To-File
Penalties, earlier, also apply to section
527 political organizations (Rev. Rul.
2003-49, 2003-20 I.R.B. 903).
A copy of an exempt or political
•
Gross receipts. To determine
whether a section 501(c)(15)
organization's return, report, notice, or
exemption application; or
organization satisfies either of the above
tests described in Appendix C, figure
gross receipts by adding:
An inspection of a return, report,
•
notice, or exemption application at an IRS
Public inspection and distribution of
applications for tax exemption and
annual information returns of
office.
1. Premiums (including deposits and
Complete information is available on
assessments) without reduction for return
the IRS website at IRS.gov/Charities-
tax-exempt organizations. Under
78
2023 Instructions for Form 990
Regulations sections 301.6104(d)-1
through -3, a tax-exempt organization
must:
Any amended return the organization
individual provides photocopying
equipment at the place of inspection.
Organizations that don't maintain
permanent offices. A tax-exempt
organization with no permanent office:
•
files with the IRS after the date the
original return is filed (both the original
and amended return are subject to the
public inspection requirements), or
Make its application for recognition of
•
exemption and its annual information
returns available for public inspection
without charge at its principal, regional,
and district offices during regular
business hours;
An exact copy of Form 990-T if one is
•
Must make its application for tax
•
filed by a section 501(c)(3) organization.
exemption and its annual information
returns available for inspection at a
reasonable location of its choice;
The copy must include all information
furnished to the IRS on Form 990,
990-EZ, or 990-T as well as all
Make each annual information return
•
Must permit public inspection within a
•
available for a period of 3 years beginning
on the date the return is required to be
filed (determined with regard to any
extension of time for filing) or is actually
filed, whichever is later; and
reasonable amount of time after receiving
a request for inspection (normally not
more than 2 weeks) and at a reasonable
time of day;
statements, attachments, and supporting
documents, except for the name and
address of any contributor to the
organization. See the Instructions for
Schedule B (Form 990). However,
statements, attachments, and supporting
documents filed with Form 990-T that
don't relate to the imposition of unrelated
business income tax aren't required to be
made available for public inspection and
copying. See Notice 2008-49.
Can mail, within 2 weeks of receiving
•
Provide a copy without charge (for
•
the request, a copy of its application for
tax exemption and annual information
returns to the requester instead of
allowing an inspection; and
Form 990-T, this requirement applies only
to Forms 990-T filed after August 17,
2006), other than a reasonable fee for
reproduction and actual postage costs, of
all or any part of any application or return
required to be made available for public
inspection to any individual who makes a
request for a copy in person or in writing
(except as provided in Regulations
Can charge the requester for copying
•
and actual postage costs only if the
requester consents to the charge.
Annual returns more than 3 years
old. An annual information return doesn't
include any return after the expiration of 3
years from the date the return is required
to be filed (including any extension of
time that has been granted for filing the
return) or is actually filed, whichever is
later.
An organization that has a permanent
office, but has no office hours, or very
limited hours during certain times of the
year, must make its documents available
during those periods when office hours
are limited, or not available, as though it
were an organization without a
sections 301.6104(d)-2 and -3).
Definitions
Tax-exempt organization is any
organization that is described in section
501(c) or (d) and is exempt from taxation
under section 501(a). The term
“tax-exempt organization” also includes
any section 4947(a)(1) nonexempt
charitable trust or nonexempt private
foundation that is subject to the reporting
requirements of section 6033.
permanent office.
If an organization files an amended
return, however, the amended return
must be made available for a period of 3
years beginning on the date it is filed with
the IRS.
Special Rules Relating
to Copies
Time and place for providing copies
in response to requests made in
person. A tax-exempt organization
must:
Local or subordinate organizations.
For rules relating to annual information
returns of local or subordinate
Application for tax exemption
includes:
organizations, see Regulations section
301.6104(d)-1(f)(2).
Provide copies of required documents
•
under section 6104(d) in response to a
request made in person at its principal,
regional, and district offices during
regular business hours; and
Any prescribed application form (Form
•
Regional or district offices. A
regional or district office is any office of a
tax-exempt organization, other than its
principal office, that has paid employees,
whether part-time or full-time, whose
aggregate number of paid hours a week
is normally at least 120.
1023, 1023-EZ, 1024, or 1024-A),
All documents and statements the IRS
•
requires an applicant to file with the form,
Provide copies to a requester on the
Any statement or other supporting
•
•
day the request is made, except for
unusual circumstances (explained next).
Unusual circumstances. In the case
of an in-person request, where unusual
circumstances exist so that fulfilling the
request on the same business day
causes an unreasonable burden to the
tax-exempt organization, the organization
must provide the copies no later than the
next business day following the day that
the unusual circumstances cease to
exist, or the 5th business day after the
date of the request, whichever occurs
first.
document submitted in support of the
application, and
Any letter or other document issued by
•
A site isn't considered a regional or
the IRS concerning the application.
Application for tax exemption
doesn't include:
district office, however, if:
The only services provided at the site
•
further exempt purposes (daycare, health
care, scientific or medical research); and
Any application for tax exemption filed
•
before July 15, 1987, unless the
The site doesn't serve as an office for
•
organization filing the application had a
copy of the application on July 15, 1987;
management staff, other than managers
who are involved solely in managing the
exempt function activities at the site.
In the case of a tax-exempt
•
organization other than a private
foundation, the name and address of any
contributor to the organization; or
Special Rules Relating
to Public Inspection
Any material that isn't available for
•
Unusual circumstances include:
public inspection under section 6104.
Requests received that exceed the
•
Permissible conditions on public
organization's daily capacity to make
copies;
If there is no prescribed
inspection. A tax-exempt organization:
application form, see Regulations
Can have an employee present in the
•
!
Requests received shortly before the
•
CAUTION
section 301.6104(d)-1(b)(3)(ii).
room during an inspection;
end of regular business hours that require
an extensive amount of copying; or
Must allow the individual conducting
•
Annual information return includes:
the inspection to take notes freely during
the inspection; and
An exact copy of the Form 990 or Form
•
Requests received on a day when the
•
990-EZ filed by a tax-exempt organization
as required by section 6033,
organization's managerial staff capable of
fulfilling the request is conducting special
duties (student registration or attending
Must allow the individual to photocopy
•
the document at no charge, if the
2023 Instructions for Form 990
79
an off-site meeting or convention), rather
than its regular administrative duties.
Agents for providing copies. For
rules relating to use of agents to provide
copies, see Regulations sections
301.6104(d)-1(d)(1)(iii) and -1(d)(2)(ii)
(C).
Request for copies in writing. A
tax-exempt organization must honor a
written request for a copy of documents
(or the requested part) required under
section 6104(d) if the request:
1. Is addressed to (and delivered by
mail, electronic mail, facsimile, or a
private delivery service, as defined in
section 7502(f)) a principal, regional, or
district office of the organization; and
2. Sets forth the address to which the
copy of the documents should be sent.
Time and Manner of Fulfilling Written Requests
IF the organization...
THEN the organization...
receives a written request for a copy
must mail the copy of the requested documents (or the requested parts) within 30
days from the date it receives the request.
mails the copy of the requested document
is deemed to have provided the copy on the postmark date or private delivery
mark (if sent by certified or registered mail, the date of registration or the date of
the postmark on the sender's receipt).
requires payment in advance
is required to provide the copies within 30 days from the date it receives payment.
receives a request or payment by mail
is deemed to have received it 7 days after the date of the postmark, absent
evidence to the contrary.
receives a request transmitted by email or facsimile
is deemed to have received it the day the request is transmitted successfully.
receives a written request without payment or with an insufficient payment, when must notify the requester of the prepayment policy and the amount due within 7
payment in advance is required
days from the date of the request's receipt.
receives consent from an individual making a request
can provide a copy of the requested document exclusively by email (the material
is provided on the date the organization successfully transmits the email).
Request for a copy of parts of a
document. A tax-exempt organization
must fulfill a request for a copy of the
organization's entire application for tax
exemption or annual information return or
any specific part or schedule of its
application or return. A request for a copy
of less than the entire application or less
than the entire return must specifically
identify the requested part or schedule.
Fees for copies. A tax-exempt
doesn't enclose payment with a request,
subordinate organization in the group
exemption letter.
However, if the central or parent
organization submits to the IRS a list or
directory of local or subordinate
an organization must receive consent
from a requester before providing copies
for which the fee charged for copying and
postage exceeds $20.
Documents to be provided by
regional and district offices. Except as
otherwise provided, a regional or district
office of a tax-exempt organization must
satisfy the same rules as the principal
office for allowing public inspection and
providing copies of its application for tax
exemption and annual information
returns.
A regional or district office isn't
required, however, to make its annual
information return available for inspection
or to provide copies until 30 days after the
date the return is required to be filed
(including any extension of time that is
granted for filing the return) or is actually
filed, whichever is later.
organizations covered by the group
exemption letter, the local or subordinate
organization is required to provide only
the application for the group exemption
ruling and the pages of the list or
directory that specifically refer to it. The
local or subordinate organization must
permit public inspection, or comply with a
request for copies made in person, within
a reasonable amount of time (normally
not more than 2 weeks) after receiving a
request made in person for public
organization can charge a reasonable fee
for providing copies. Before the
organization provides the documents, it
can require that the individual requesting
copies of the documents pay the fee. If
the organization has provided an
individual making a request with notice of
the fee, and the individual doesn't pay the
fee within 30 days, or if the individual
pays the fee by check and the check
doesn't clear upon deposit, the
inspection or copies and at a reasonable
time of day. See Regulations section
301.6104(d)-1(f) for further information.
Annual information returns. A local
or subordinate organization that doesn't
file its own annual information return
(because it is affiliated with a central or
parent organization that files a group
return) must, upon request, make
organization can disregard the request.
Form of payment.
Documents Provided by
Local and Subordinate
Organizations
a. Request made in person. If a
tax-exempt organization charges a fee for
copying, it must accept payment by cash
and money order for requests made in
person. The organization can accept
other forms of payment, such as credit
cards and personal checks.
available for public inspection, or provide
copies of, the group returns filed by the
central or parent organization.
Applications for tax exemption.
Except as otherwise provided, a
However, if the group return includes
separate statements for each local or
subordinate organization included in the
group return, the local or subordinate
organization receiving the request can
omit any statements relating only to other
organizations included in the group
return.
The local or subordinate organization
must permit public inspection, or comply
with a request for copies made in person,
within a reasonable amount of time
tax-exempt organization that didn't file its
own application for tax exemption
(because it is a local or subordinate
organization covered by a group
b. Request made in writing. If a
tax-exempt organization charges a fee for
copying and postage, it must accept
payment by certified check, money order,
and either personal check or credit card
for requests made in writing. The
exemption letter) must, upon request,
make available for public inspection, or
provide copies of, the application
submitted to the IRS by the central or
parent organization to obtain the group
exemption letter and those documents
which were submitted by the central or
parent organization to include the local or
organization can accept other forms of
payment.
Avoidance of unexpected fees.
Where a tax-exempt organization doesn't
require prepayment and a requester
80
2023 Instructions for Form 990
(normally not more than 2 weeks) after
receiving a request made in person for
public inspection or copies and at a
reasonable time of day.
annual information return widely available
if the organization complies with the
Internet posting requirements and the
notice requirements given below.
Internet posting. A tax-exempt
Tax-Exempt Organization
Subject to Harassment
Campaign
Under section 6104(d)(4), if the Office of
Associate Chief Counsel (Tax Exempt
and Government Entities) determines
that the organization is being harassed, a
tax-exempt organization isn't required to
comply with any request for copies that it
reasonably believes is part of a
harassment campaign.
When a requester seeks inspection,
organization can make its application for
tax exemption and/or an annual
the local or subordinate organization can:
Mail a copy of the applicable
•
information return widely available by
posting the document on a web page that
the tax-exempt organization establishes
and maintains, or by having the
documents to the requester within the
same time period instead of allowing an
inspection; and
Charge the requester for copying and
•
document posted, as part of a database
of similar documents of other tax-exempt
organizations, on a web page established
and maintained by another entity. The
document will be considered widely
available only if:
actual postage costs, if the requester
consents to the charge.
Whether a group of requests is a
harassment campaign depends on the
relevant facts and circumstances such
as:
If the local or subordinate organization
receives a written request for a copy of its
annual information return, it must fulfill the
request by providing a copy of the group
return in the time and manner specified
under Request for copies in writing,
earlier.
The requester has the option of
requesting from the central or parent
organization, at its principal office,
inspection or copies of group returns filed
by the central or parent organization. The
central or parent organization must fulfill
the requests in the time and manner
specified under Special Rules Relating to
Public Inspection and Special Rules
Relating to Copies, earlier.
Failure to comply. Any person who
doesn't comply with the public inspection
requirements will be assessed a penalty
of $20 for each day that inspection wasn't
permitted, up to a maximum of $10,000
for each return. Organizations with gross
receipts exceeding $1 million will be
assessed a penalty of $100 for each day,
not to exceed $50,000 for each return.
The penalties for failure to comply with
the public inspection requirements for
applications are the same as those for
annual returns, except that the $10,000
limitation doesn't apply (sections 6652(c)
(1)(C) and (D)). Any person who willfully
fails to comply with the public inspection
requirements for annual returns or
exemption applications will be subject to
an additional penalty of $5,000 (section
6685).
A sudden increase in requests,
•
The web page through which it is
An extraordinary number of requests
•
•
available clearly informs readers that the
document is available and provides
instructions for downloading it;
by form letters or similarly worded
correspondence,
Hostile requests,
•
The document is posted in a format
Evidence showing bad faith or
•
•
that, when accessed, downloaded,
viewed, and printed in hard copy, exactly
reproduces the image of the application
for tax exemption or annual information
return as it was originally filed with the
IRS, except for any information permitted
by statute to be withheld from public
disclosure; and
deterrence of the organization's exempt
purpose,
Prior provision of the requested
•
documents to the purported harassing
group, and
A demonstration that the organization
•
routinely provides copies of its
documents upon request.
Any individual with access to the
•
A tax-exempt organization can
Internet can access, download, view, and
print the document without special
computer hardware or software required
for that format (other than software that is
readily available to members of the public
without payment of any fee) and without
payment of a fee to the tax-exempt
organization or to another entity
disregard any request for copies of all or
part of any document beyond the first two
received within any 30-day period or the
first four received within any 1-year period
from the same individual or the same
address, whether or not the Office of
Associate Chief Counsel (Tax Exempt
and Government Entities) has
maintaining the web page.
determined that the organization is
subject to a harassment campaign.
Reliability and accuracy. In order for
the document to be widely available
through an Internet posting, the entity
maintaining the web page must have
procedures for ensuring the reliability and
accuracy of the document that it posts on
the page and must take reasonable
precautions to prevent alteration,
A tax-exempt organization can apply
for a determination that it is the subject of
a harassment campaign and that
compliance with requests that are part of
the campaign wouldn't be in the public
interest by submitting a signed
application to the Office of Associate
Chief Counsel (Tax Exempt and
Government Entities). See Rev. Proc.
2023-1, 2023-1 I.R.B. 1, or as updated
annually.
In addition, the organization can
suspend compliance with any request it
reasonably believes to be part of the
harassment campaign until it receives a
response to its application for a
destruction, or accidental loss of the
document when posted on its page. In
the event that a posted document is
altered, destroyed, or lost, the entity must
correct or replace the document.
Notice requirement. If a tax-exempt
organization has made its application for
tax exemption and/or an annual
Making Applications and
Returns Widely Available
A tax-exempt organization isn't required
to comply with a request for a copy of its
application for tax exemption or an
annual information return if the
information return widely available, it
must notify any individual requesting a
copy where the documents are available
(including the address on the Internet, if
applicable). If the request is made in
person, the organization must provide the
notice to the individual immediately. If the
request is made in writing, the notice
must be provided within 7 days of
harassment campaign determination.
However, if the Office of Associate Chief
Counsel (Tax Exempt and Government
Entities) determines that the organization
didn't have a reasonable basis for
organization has made the requested
document widely available (see below).
An organization that makes its
application for tax exemption and/or
annual information return widely available
must also make the document available
for public inspection, as required under
Regulations section 301.6104(d)-1(a).
requesting a determination that it was
subject to a harassment campaign or
reasonable belief that a request was part
of the campaign, the officer, director,
trustee, employee, or other responsible
individual of the organization remains
liable for any penalties for not providing
receiving the request.
A tax-exempt organization makes its
application for tax exemption and/or an
2023 Instructions for Form 990
81
the copies in a timely fashion. See
Regulations section 301.6104(d)-3.
Schedule J (Form 990), Compensation
between officers, directors, trustees,
and key employees of the same
subordinate organization, not
relationships between officers, directors,
trustees, and key employees of one
subordinate and officers, directors,
trustees, and key employees of another
subordinate.
•
Information, Part I, lines 1b and 2.
Schedule M (Form 990), Noncash
•
Appendix E. Group
Returns—Reporting
Information on Behalf of
the Group
Contributions, Part I, line 31.
Schedule N (Form 990), Liquidation,
•
Termination, Dissolution, or Significant
Disposition of Assets, Part I, lines 3, 4a–
b, 5, and 6a–c.
12. Part VI, line 4. Significant
The following is a list of other special
instructions for group returns.
Except where otherwise instructed,
where a line calls for a dollar amount or
numerical data, the central organization
filing the group return must aggregate
the data from all the subordinate
organizations included in the group
return and report the aggregate number.
For example, in answering Form 990, Part
I, line 6, the total number of volunteers for
all of the subordinate organizations would
be reported.
changes to organizational
documents. Report only changes to
standardized organizational documents
maintained by the central organization
that subordinates are required to adopt.
1. Item B. Final return/terminated.
If the central organization is terminating
its group exemption and filing its final
group return, don't check the “Final
return/terminated” box. Refer to Rev.
Proc. 80-27, 1980-1 C.B. 677, as
modified, for procedures for terminating
the group exemption.
2. Item C. Name. Enter the name of
the group exemption. Note that the group
exemption may have a different name
than the central organization's name.
13. Part VI, line 5. Significant
diversion of assets. In determining
whether a diversion of a subordinate’s
assets meets the 5%/$250,000 reporting
threshold, consider only the total assets
and gross receipts of that subordinate,
not of the parent or other subordinates.
For purposes of Form 990, Part III,
summarize the mission and activities of
all of the subordinate organizations as if
all of the subordinate organizations were
one entity.
14. Part VI, line 20. Person who
possesses books and records. Identify
the person who possesses the
information furnished by the subordinate
organizations used in compiling the group
return.
15. Part VII. Compensation of
officers, directors, trustees, key
employees, and highest compensated
employees. File a single consolidated
Form 990, Part VII, showing the officers,
directors, trustees, and key employees of
each subordinate included in the group
return, and a single consolidated
3. Item D. EIN. Use the special EIN
(separate from the central organization's
EIN) that is issued solely for the purposes
of the group return. The central
In general, if a line requires a “Yes” or
“No” answer and the answer isn't the
same for all subordinate organizations to
which the line applies, then check “Yes”
and explain the answer in the schedule's
supplemental information section (if
applicable) or on Schedule O (Form 990).
For the following lines, however, check
“No” if the answer is “No” for any of the
subordinates to which the line applies,
and explain on Schedule O.
organization must have received a group
exemption letter before it can file a group
ruling.
4. Items E, F, and J. Enter
information for the central organization
only.
5. Item H. Group returns. If the
organization answers “Yes” to item H(a)
but “No” to item H(b) (not all subordinate
organizations are included in the group
return), then attach a list (not on
Schedule J (Form 990), Part II, for all
officers, directors, trustees, and key
employees above the compensation
thresholds. Report the five highest
compensated employees and
Form 990, Part V, lines 1c, 2b, 3b, 5c,
•
6b, 7b, 7g, and 7h.
Form 990, Part VI, lines 8a, 8b, 10b,
Schedule O (Form 990)) showing the
name, address, and EIN of each
•
12b, and 12c.
independent contractors above
$100,000 for the whole group of
subordinate organization included in the
group return. Additionally, attach a list
(not on Schedule O (Form 990)) showing
the name, address, and EIN of each
subordinate organization not included in
the group return. See Regulations section
1.6033-2(d)(2)(ii).
Schedule C (Form 990), Political
•
Campaign and Lobbying Activities, Part
I-B, lines 3 and 4a.
subordinates, not for each subordinate. If
one or more officers, directors, trustees,
key employees, or highest compensated
employees received compensation from
more than one organization in the group,
the person's compensation from the
several organizations must be reported in
column (D).
Schedule C (Form 990), Part I-C,
•
line 4.
Schedule C (Form 990), Part II-A,
•
line 1j.
6. Item K. Form of organization.
Check “Other” if the group has more than
one form of organization.
Schedule C (Form 990), Part II-B,
•
line 2d.
Schedule C (Form 990), Part III-A,
•
16. Part VII. Compensation from
lines 1–3.
7. Item L. Year of formation. Leave
related organizations. Report
Schedule D (Form 990), Supplemental
blank for group return.
•
compensation from an organization that
is included in the group ruling but that
isn't among the subordinates included in
the group return as compensation from a
related organization in column (E), even if
the related organization isn't required to
be reported on Schedule R (Form 990),
Related Organizations and Unrelated
Partnerships.
Financial Statements, Part I, lines 5 and
6.
8. Item M. State of legal domicile.
Leave blank for group return.
Schedule D (Form 990), Part II, lines 5
•
9. Part IV, lines 14b–19, 21–22,
and 29, dollar thresholds. Apply the
dollar thresholds for the aggregate data
for the group as a whole, not subordinate
by subordinate.
10. Part IV, line 20. Hospitals.
Answer “Yes” if any affiliate included
within the group return operated a
hospital facility.
and 8.
Schedule E (Form 990), Schools, lines
•
1–4d and 7.
Schedule F (Form 990), Statement of
•
Activities Outside the United States, Part
I, line 1.
17. Part XII, lines 2a–2b. Compiled,
reviewed, or audited financial
statements. Answer “Yes” only if all the
subordinates in the group had their
financial statements compiled, reviewed,
or audited individually (rather than on a
consolidated basis).
Schedule G (Form 990), Supplemental
•
Information Regarding Fundraising or
Gaming Activities, Part III, line 9a.
Schedule I (Form 990), Grants and
•
11. Part VI, line 2. Relationships
among officers, directors, trustees,
and key employees. Describe on
Other Assistance to Organizations,
Governments, and Individuals in the
United States, Part I, line 1.
Schedule O (Form 990) only relationships
82
2023 Instructions for Form 990
18. Schedule A (Form 990), Part I.
Reason for public charity status. If the
subordinates don't all have the same
public charity status, then check the
public charity status box for the largest
number of subordinates in the group, and
explain on Schedule A (Form 990), Public
Charity Status and Public Support, Part
IV. However, if any section 509(a)(3)
organizations are among the
consolidated financial statements), to
describe the filing organization's share of
the liability.
24. Schedule H (Form 990).
Hospitals. Complete one Schedule H for
all of the hospitals operated by
Appendix F.
Disregarded Entities
and Joint
Ventures—Inclusion of
Activities and Items
subordinates in the group, and report
aggregate data from all the hospitals. In
Part V, Section A, list each of the
organization’s hospital facilities
separately. List in Section A the name
and EIN of the subordinate hospital
organization that operates the hospital
facility. Complete separate Sections B
and C for each of the hospital facilities or
facility reporting groups listed in
Section A.
25. Schedule J (Form 990).
Compensation from related
organizations. See Part VII instructions,
earlier, in this Appendix.
26. Schedule L (Form 990).
Transactions with interested persons.
On Schedule L (Form 990), Part IV, report
only transactions between a subordinate
organization and its interested
Disregarded Entities
subordinates in the group return, also
answer lines 12e through 12g.
A disregarded entity, as described in
Regulations sections 301.7701-1 through
301.7701-3, is generally treated as a
branch or division of its parent
19. Schedule A (Form 990), Parts II
and III. Support statements. Report
aggregate data for all subordinates with
the public charity status corresponding to
Part II or III.
20. Schedule A (Form 990), Parts
IV through VI. In addition to Part I in
paragraph 18 above, if any section 509(a)
(3) organizations are among the
organization for federal tax purposes (but
see the TIP next for treatment of
disregarded entities as separate entities
for employment tax purposes). Therefore,
financial and other information applicable
to a disregarded entity must be reported
as the parent organization's information,
except on Form 990, Part VI, lines 10a
and 10b, and on Schedule R (Form 990),
in which disregarded entities must be
separately reported.
subordinates in the group return, also
complete the relevant sections of Parts IV
and V. If an answer in Part IV requires
more information with respect to any
section 509(a)(3) organizations, then
answer with respect to those
An organization must report on its
Form 990, including Parts VIII through X,
all of the revenues, expenses, assets,
liabilities, and net assets or funds of a
disregarded entity of which it is the sole
member. The disregarded entity is
deemed to have the same accounting
period as its parent for federal tax
purposes. The organization must also
report the activities of a disregarded
entity in the appropriate parts (including
schedules) of the Form 990. For example,
support of a disregarded entity must be
taken into account by the filing
persons—not transactions between a
subordinate organization and the
interested persons of other subordinates.
In determining whether a transaction
between the subordinate and its
organizations and provide that additional
information in Part VI. For instance, if the
group includes 50 section 509(a)(3)
organizations, and one of them doesn't
list all of its supported organizations by
name in its governing documents, then
answer “No” to Part IV, Section A, line 1,
and explain in Part VI. If the group
includes more than one Type III
interested persons meets the financial
reporting thresholds of Schedule L, Part
IV, consider only the payments between
the subordinate and its interested
persons, not payments between
non-functionally-integrated supporting
organization, then provide aggregate
data in Part V.
21. Schedule B (Form 990).
Contributors. Report a consolidated
Schedule B (Form 990) for all
interested persons and the parent or
other subordinates.
27. Schedule N (Form 990).
Liquidation or significant disposition
of assets. Explain on Schedule N (Form
990), Part III, which of the subordinates
have undergone a liquidation,
organization for purposes of the public
support tests set forth on Schedule A
(Form 990). Similarly, political
subordinates included in the group
return. Apply the dollar and percentage
thresholds (including the greater of
$5,000 or 2% threshold for section 501(c)
(3) organizations described in sections
509(a)(1) and 170(b)(1)(A)(vi))
subordinate by subordinate, not on a
group basis.
campaign activity or lobbying activity
conducted by a disregarded entity of
which the organization is the sole
member must be reported on Schedule C
(Form 990).
termination, dissolution, or significant
disposition of assets during the tax year.
28. Schedule R (Form 990). Related
organizations. See the Instructions for
Schedule R (Form 990) to determine
when related organizations of a member
of a group exemption must be included
on Schedule R (Form 990). In general,
central organizations and subordinate
organizations of a group exemption
aren't required to be listed as related
organizations on Schedule R (Form
990), Part II; and all other related
A disregarded entity is treated as
a separate entity for purposes of
employment tax and certain
TIP
22. Schedule C (Form 990), Part
excise taxes. For wages paid after
January 1, 2009, a disregarded entity is
required to use its name and EIN for
reporting and payment of employment
taxes.
II-A. Lobbying expenditures and
affiliated groups. Complete Part II-A,
column (b), for the group as a whole. In
column (a), except on lines 1g and 1h,
include the amounts that apply to all
electing members of the group if they are
included in the group return. If the group
return includes organizations that belong
to more than one affiliated group, enter in
column (b) the totals for all the groups.
organizations of the central organization
or of a subordinate organization are
required to be listed on Schedule R
(Form 990) in the applicable part. Even if
a related organization isn't required to be
listed in Part II of Schedule R (Form 990),
the organization must report its
A single-member LLC is treated
generally as a disregarded entity
!
CAUTION
of its sole member/owner unless
it elects to be treated as a separate
association. It may elect to be treated
separately by filing Form 8832, Entity
Classification Election, or by claiming
tax-exempt status in its own right (by filing
a Form 1023, 1023-EZ, 1024, or 1024-A,
application for recognition of tax-exempt
status, or a Form 990, 990-EZ, 990-N, or
990-T, using its own name and EIN).
23. Schedule D (Form 990), Part X.
Other liabilities. The filing organization
can summarize that portion, if any, of the
FIN 48 (ASC 740) footnote that applies to
the liability of multiple organizations
including the organization (for example,
as a member of a group with
transactions with the related organization
in Part V, as described in the instructions
for that Part.
2023 Instructions for Form 990
83
Once the IRS determines a
7a through 7h are to be answered by
taking into account any contributions
made to a disregarded entity.
transactions involving interested persons
who have such status because of their
relationship with a disregarded entity
(such as an employee of the disregarded
entity who qualifies as a key employee of
the organization as a whole). A
single-member LLC to be exempt, it is no
longer eligible to be treated as a
disregarded entity until the determination
of exemption is revoked and the LLC
subsequently files a Form 8832 electing
disregarded entity status. Similarly, a
single-member LLC that claims
9. Part VI, lines 1a–9. Members of
the governing body, officers, directors,
trustees, and employees of a disregarded
entity won't be treated as governing
body members, officers, directors, or
trustees of the filing organization, but a
person can be a key employee or
highest compensated employee of the
filing organization by virtue of
transaction between an interested person
and a disregarded entity of the
exemption but hasn't been determined to
be exempt isn't eligible to be treated as
disregarded until the claim is withdrawn
or rejected and the LLC files a Form 8832
electing disregarded entity status. See
Regulations section 301.7701-3(c)(1)(v)
(A).
organization is reportable on Schedule L.
15. Schedule N (Form 990).
Liquidation or significant disposition
of assets. The organization shouldn't
prepare Part I to report a termination,
liquidation, or dissolution of a
compensation paid by the disregarded
entity, or the person's responsibilities and
authority over operations of the
disregarded entity if the filing organization
continues to operate. Transfers to (or by)
a filing organization by (or to) its
disregarded entity when compared to the
filing organization as a whole. See
Disregarded entities under Part VII,
Section A, earlier.
The following is a list of special
instructions for the form and schedules
regarding the reporting of a disregarded
entity of which the organization is the sole
member. These items are described to
illustrate special applications of the rule
described above that a disregarded
entity's activities and items must be
reported on the organization's Form 990
and applicable schedules.
1. Part I, line 5. Number of
employees. See the instructions for Part
V, lines 1 and 2, below.
2. Part I, line 6. Number of
volunteers. The total number of
volunteers to be reported can, but isn't
required to, include volunteers of any
disregarded entity.
3. Part III. Program service
accomplishments. Consider activities
and accomplishments of all disregarded
entities when answering this part.
4. Part IV, line 12. Audited
financial statements. The organization
shouldn't answer “Yes” to this question
merely because it received audited
financial statements of one or more
disregarded entities, if the audited
financial statements of the organization
weren't audited.
5. Part IV, lines 31–32. Liquidation
or significant disposition of assets.
See the instructions for Schedule N
(Form 990) in this Appendix, later.
6. Part IV, lines 35–36.
Transactions with related
organizations. See the instructions for
Schedule R (Form 990) in this Appendix,
later.
disregarded entity aren't to be reported in
Part II, but transfers by or contractions of
a disregarded entity are to be taken into
account to determine whether a
10. Part VI, Section B, lines 10a–
16b. Policies. The organization should
check “Yes” or “No” based on the filing
organization's policies, but for each “Yes”
response, they must report on
reportable event (based on 25% of the
filing organization's net assets, including
those of its disregarded entities) has
occurred.
Schedule O (Form 990) whether the
policy applies to all of the organization's
disregarded entities (if any).
16. Schedule R (Form 990), Part V,
line 2. Transactions with related
organizations. Specified payments to a
disregarded entity by a controlled entity
of the filing organization, and transfers by
a disregarded entity to an exempt
11. Part VII, line 1a. Definitions of
key employee and highest
compensated employee. An officer,
director, trustee, and employee of a
disregarded entity can constitute a key
employee or highest compensated
employee of the filing organization by
virtue of compensation paid by the
disregarded entity, or the person's
responsibilities and authority over
operations of the disregarded entity when
compared to the filing organization as a
whole. See the instructions for Form 990,
Part VII, Section A.
noncharitable entity, are to be reported
on Schedule R (Form 990), Part V, line 2.
Joint Ventures Treated
as a Partnership for
Federal Income Tax
Purposes
If the organization participates as a
partner or member of a joint venture,
partnership, LLC, or other entity treated
as a partnership for federal tax purposes
(referred to here as a “joint venture”), as
described in Regulations sections
12. Part XII, lines 2a–2b. Financial
statements. If the organization included
financial information from its disregarded
entity or entities in its financial
statements, but didn't consolidate any
other entity's information in its financial
statements, it should check the box for
“Separate basis” but not the box for
“Consolidated basis” or “Both
301.7701-1 through 301.7701-3, then the
organization in general must report the
activities of the joint venture as its own
activities, and report the joint venture’s
revenue, expenses, and assets, to the
extent of the organization's proportionate
interest in the joint venture. For example,
a proportionate share of the political
campaign activity or lobbying activity
conducted by a joint venture of which the
organization is a member must be
consolidated and separate basis.”
13. Part XII, line 3. Uniform
Guidance, 2 C.F.R. Part 200, Subpart
F. The organization must check “Yes” if a
disregarded entity was required to
undergo an audit or audits.
7. Part V, lines 1–2. Forms 1096
and W-3. The total number of information
returns and employees to be reported,
and compliance with backup withholding
rules, includes all backup withholding,
information returns, and employees of
any disregarded entity, whether or not the
disregarded entity has a separate EIN for
employment tax and information
reported on Schedule C (Form 990). If
the joint venture is a member of a second
joint venture, which is a member of a third
joint venture, etc., the activities similarly
pass through all joint ventures to the
organization, according to the
Note. The Single Audit Act of 1984 and
OMB Circular A-133 are superseded by
Uniform Guidance, 2 C.F.R. Part 200,
Subpart F, and now requires states, local
governments, and nonprofit organizations
that spend $750,000 (previously
organization's proportionate share in
each of the joint ventures.
$500,000) or more of federal awards in a
year to obtain an annual audit.
reporting purposes.
The following is a list of special
14. Schedule L (Form 990).
Transactions with interested persons.
Reportable transactions include
8. Part V, line 7. Organizations that
can receive deductible contributions.
For purposes of Form 990 reporting, lines
instructions for the form and schedules
84
2023 Instructions for Form 990
regarding the reporting of a joint venture
of which the organization is a member.
1. Part I, line 2. Disposition of 25%
of assets. See the instructions for
Schedule N in this Appendix, later.
2. Part I, lines 7a–7b. Unrelated
business income. Include the
organization's distributive share (whether
or not distributed) of income or loss of the
joint venture that is unrelated business
income in determining the organization's
gross and net unrelated business
income.
3. Part IV, lines 3–5. Political
campaign and lobbying activities. See
the instructions for Schedule C in this
Appendix, later.
4. Part IV, line 7. Conservation
easements. See the instructions for
Schedule D in this Appendix, later.
5. Part IV, lines 14–16. Activities
outside the United States. See the
instructions for Schedule F in this
Appendix, later.
6. Part IV, lines 17–19. Fundraising
and gaming. See the instructions for
Schedule G in this Appendix, later.
7. Part IV, line 20. Hospitals. See
the instructions for Schedule H in this
Appendix, later.
17. Schedule C (Form 990).
26. Schedule N (Form 990), Part II.
Disposition of 25% of assets. In
determining whether the organization
made a disposition of more than 25% of
its assets, take into account its share of
dispositions by a joint venture.
27. Schedule R (Form 990). Related
organizations. Report relationships with
certain joint ventures in Parts III and VI,
and certain transactions with joint
ventures in Part V.
Political campaign and lobbying
activities. Report the organization's
share of political campaign or lobbying
activities conducted by a joint venture.
18. Schedule D (Form 990), Part II.
Conservation easements. Include
conservation easements held by a joint
venture formed for the purpose of holding
the easements.
19. Schedule F (Form 990).
Activities outside the United States.
Include activities of a joint venture,
including grants to organizations or
individuals outside the United States.
20. Schedule G (Form 990).
Fundraising and gaming. Include
activities of a joint venture and the
organization's share of revenues and
expenses. On Part III, line 12, check “Yes”
if the joint venture was formed to
administer charitable gaming.
Appendix G. Section
4958 Excess Benefit
Transactions
The intermediate sanction regulations are
important to the exempt organization
community as a whole, and for ensuring
compliance in this area. The rules
provide a roadmap by which an
organization can steer clear of situations
that may give rise to inurement.
21. Schedule H (Form 990).
Hospitals. Report activities, expenses,
and revenue of hospital facilities and
other programs operated by any joint
venture, to the extent of the organization's
proportionate interest in the joint venture.
See the instructions for Schedule H, Part
IV, to determine how to report an
Under section 4958, any disqualified
person who benefits from an excess
benefit transaction with an applicable
tax-exempt organization is liable for a
25% tax on the excess benefit. The
disqualified person is also liable for a
200% tax on the excess benefit if the
excess benefit isn't corrected by a certain
date. Also, organization managers who
participate in an excess benefit
organization's interest in joint ventures
and management companies.
22. Schedule I (Form 990). Grants
in the United States. Include grants
from a joint venture to organizations,
governments, or individuals in the United
States.
8. Part IV, lines 21–22. Grants in
the United States. See the instructions
for Schedule I in this Appendix, later.
9. Part IV, lines 26–28. Loans,
grants, and business transactions
involving interested persons. See the
instructions for Schedule L in this
Appendix, later.
transaction knowingly, willfully, and
without reasonable cause are liable for a
10% tax on the excess benefit, not to
exceed $20,000 for all participating
managers on each transaction.
23. Schedule J (Form 990).
Compensation. If an officer, director,
trustee, or employee of the organization
receives compensation from a joint
venture, the compensation isn't treated
as paid pro rata by the organization. The
compensation may need to be reported,
however, as compensation from a related
organization if the joint venture is a
related organization.
Applicable Tax-Exempt
Organization
10. Part IV, line 32. Disposition of
25% of assets. See the instructions for
Schedule N in this Appendix, later.
These rules only apply to certain
applicable section 501(c)(3), 501(c)(4),
and 501(c)(29) organizations. An
applicable tax-exempt organization is
a section 501(c)(3), 501(c)(4), or 501(c)
(29) organization that is tax exempt under
section 501(a), or was an organization at
any time during a 5-year period ending on
the day of the excess benefit
11. Part IV, lines 34–37. Related
organizations and unrelated
partnerships. See the instructions for
Schedule R in this Appendix, later.
12. Part V, line 3a. Unrelated
24. Schedule K (Form 990), Part III,
line 1. Private business use. Report
certain joint ventures that owned property
financed by tax-exempt bonds.
business income. Include the
organization's distributive share (whether
or not distributed) of income or loss of the
joint venture that is unrelated business
income in determining the organization's
gross unrelated business income.
transaction.
An applicable tax-exempt
organization doesn't include:
25. Schedule L (Form 990), Parts
II–IV. Loans, grants, and business
transactions involving interested
persons. Report loans, grants, and
business transactions between the
organization and a joint venture, if the
joint venture is an interested person for
purposes of Schedule L, and if the
transaction meets the applicable
reporting thresholds described in the
Schedule L instructions. Also report
certain joint ventures with interested
persons as provided in the Schedule L,
Part IV, instructions as business
A private foundation, as defined in
•
13. Part VI. Governance,
management, and disclosure. Don't
take into account a joint venture for
purposes of Part VI (except for lines 16a
and 16b).
14. Part VII. Compensation. See the
instructions for Schedule J in this
Appendix, later.
section 509(a);
A governmental entity that is exempt
•
from (or not subject to) taxation without
regard to section 501(a) or relieved from
filing an annual return under Regulations
section 1.6033-2(g)(6); and
Certain foreign organizations.
•
An organization isn't treated as a
15. Parts VIII, IX, and X. Financial
statements. Report in accordance with
the organization's books and records.
section 501(c)(3), 501(c)(4), or 501(c)
(29) organization for any period covered
by a final determination that the
transactions themselves.
16. Part XII. Financial statements
organization wasn't tax exempt under
section 501(a), so long as the
and reporting. Disregard a joint venture.
2023 Instructions for Form 990
85
determination wasn't based on private
inurement or one or more excess benefit
transactions.
the executive or voting powers just
mentioned, isn't a family member of a
disqualified person, and isn't a
substantial contributor;
the organization, as compared to the
organization as a whole.
What about persons who staff affili-
ated organizations? In the case of
multiple affiliated organizations, the
determination of whether a person has
substantial influence is made separately
for each applicable tax-exempt
Disqualified Person
Tax-exempt organizations described in
•
section 501(c)(3); and
Most section 501(c)(3), 501(c)(4), or
501(c)(29) organization employees and
independent contractors won't be
affected by these rules. Only the few
influential persons within these
Section 501(c)(4) organizations for
•
transactions engaged in with other
section 501(c)(4) organizations.
organization. A person may be a
Who else can be considered a dis-
qualified person? Other persons not
described above can also be considered
disqualified persons, depending on all the
relevant facts and circumstances.
Facts and circumstances tending to
show substantial influence.
disqualified person for more than one
organization in the same transaction.
organizations are covered by these rules
when they receive benefits, such as
compensation, fringe benefits, or
contract payments. The IRS calls this
class of covered individuals disqualified
persons.
Excess Benefit
Transaction
An excess benefit transaction is
generally a transaction in which an
economic benefit is provided by an
applicable tax-exempt organization,
directly or indirectly, to or for the use of
any disqualified person, and the value
of the economic benefit provided by the
applicable tax-exempt organization
exceeds the value of the consideration
(including the performance of services)
received for providing the benefit, but see
the special rules below for donor
advised funds and supporting
The person founded the organization.
The person is a substantial contributor
A disqualified person, regarding any
transaction, is any person who was in a
position to exercise substantial influence
over the affairs of the applicable
•
•
to the organization under the section
507(d)(2)(A) definition, only taking into
account contributions to the organization
for the past 5 years.
tax-exempt organization at any time
during a 5-year period ending on the date
of the transaction. Persons who hold
certain powers, responsibilities, or
interests are among those who are in a
position to exercise substantial influence
over the affairs of the organization. This
would include, for example, voting
members of the governing body, and
persons holding the power of the
following.
The person's compensation is
•
primarily based on revenues derived from
the activities of the organization that the
person controls.
The person has or shares authority to
•
control or determine a substantial portion
of the organization's capital expenditures,
operating budget, or compensation for
employees.
organizations. An excess benefit
transaction can also occur when a
disqualified person embezzles from the
exempt organization.
The person manages a discrete
Presidents, CEOs, or chief operating
•
•
segment or activity of the organization
that represents a substantial portion of
the activities, assets, income, or
officers.
To determine whether an excess
benefit transaction has occurred, all
consideration and benefits exchanged
between a disqualified person and the
applicable tax-exempt organization, and
all entities it controls, are taken into
account.
Treasurers and chief financial officers.
•
A disqualified person also includes
certain family members of a disqualified
person, and 35% controlled entities of
a disqualified person.
expenses of the organization, as
compared to the organization as a whole.
The person owns a controlling interest
•
(measured by either vote or value) in a
corporation, partnership, or trust that is a
disqualified person.
The following persons are considered
disqualified persons for the following
organizations, along with certain family
members and 35% controlled entities
associated with them.
For purposes of determining the value
of economic benefits, the value of
property, including the right to use
property, is the FMV. FMV is the price at
which property, or the right to use
The person is a nonstock organization
•
controlled directly or indirectly by one or
more disqualified persons.
For a transaction involving a donor
•
Facts and circumstances tending to
show no substantial influence.
advised fund, a donor or donor advisor
property, would change hands between a
willing buyer and a willing seller, neither
being under any compulsion to buy, sell,
or transfer property or the right to use
property, and both having reasonable
knowledge of relevant facts.
of that donor advised fund.
The person is an independent
•
For a donor advised fund sponsoring
•
contractor whose sole relationship to the
organization is providing professional
advice (without having decision-making
authority) for transactions from which the
independent contractor won't
organization, an investment advisor of the
sponsoring organization.
For a supported organization of a
•
section 509(a)(3) supporting
organization, the disqualified persons of
the section 509(a)(3) supporting
organization.
Donor advised funds. For a donor
advised fund, an excess benefit
transaction includes a grant, loan,
compensation, or similar payment from
the fund to a:
economically benefit.
The person has taken a vow of poverty.
Any preferential treatment the person
•
•
See the instructions for Form 4720,
Schedule I, for more information
receives based on the size of the
person's donation is also offered to
others making comparable widely
solicited donations.
Donor or donor advisor,
regarding these disqualified persons.
•
Family member of a donor or donor
•
Who isn't a disqualified person? The
rules also clarify which persons aren't
considered to be in a position to exercise
substantial influence over the affairs of an
organization. They include:
advisor,
The direct supervisor of the person
•
35% controlled entity of a donor or
•
isn't a disqualified person.
donor advisor, or
The person doesn't participate in any
•
35% controlled entity of a family
•
management decisions affecting the
organization as a whole or a discrete
segment of the organization that
member of a donor or donor advisor.
An employee who receives benefits
•
For these transactions, the excess
benefit is defined as the amount of the
grant, loan, compensation, or similar
payment. For additional information, see
the Instructions for Form 4720.
that total less than the highly
represents a substantial portion of the
activities, assets, income, or expenses of
compensated amount ($120,000 in
2015–2018, $125,000 in 2019, $130,000
in 2020–2021, $135,000 in 2022, and
$150,000 in 2023) and who doesn't hold
86
2023 Instructions for Form 990
Taxable and nontaxable fringe
•
Supporting organizations. For any
supporting organization defined in
section 509(a)(3), an excess benefit
transaction includes grants, loans,
compensation, or similar payment
provided by the supporting organization
to a:
Section 4958 applies only to
benefits, except fringe benefits described
in section 132.
post-September 1995 transactions.
Section 4958 applies the general rules to
excess benefit transactions occurring on
or after September 14, 1995. Section
4958 doesn't apply to any transaction
occurring pursuant to a written contract
that was binding on September 13, 1995,
and at all times thereafter before the
transaction occurs. The special rules
relevant to transactions with donor
advised funds and supporting
Foregone interest on loans.
•
Written intent required to treat bene-
fits as compensation. An economic
benefit isn't treated as consideration for
the performance of services unless the
organization providing the benefit clearly
indicates its intent to treat the benefit as
compensation when the benefit is paid.
An applicable tax-exempt organization
(or entity that it controls) is treated as
clearly indicating its intent to provide an
economic benefit as compensation for
services only if the organization provides
written substantiation that is
Substantial contributor,
•
Family member of a substantial
•
contributor,
35% controlled entity of a substantial
•
contributor, or
35% controlled entity of a family
organizations apply to transactions
occurring after August 17, 2006, except
that taxes on certain transactions
between supporting organizations and
their substantial contributors apply to
transactions occurring on or after July 25,
2006.
•
member of a substantial contributor.
Additionally, an excess benefit
transaction includes any loans provided
by the supporting organization to a
disqualified person (other than an
organization described in section 509(a)
(1), (2), or (4)).
contemporaneous with the transfer of the
economic benefits under consideration.
Ways to provide contemporaneous
written substantiation of its intent to
provide an economic benefit as
What Is Reasonable
Compensation?
A substantial contributor is any person
who contributed or bequeathed an
aggregate of more than $5,000 to the
organization, if that amount is more than
2% of the total contributions and
compensation include the following.
Reasonable compensation is the
The organization produces a signed
•
valuation standard that is used to
written employment contract.
determine if there is an excess benefit in
the exchange of a disqualified person's
services for compensation. Reasonable
compensation is the value that would
ordinarily be paid for like services by like
enterprises under like circumstances.
This is the section 162 standard that will
apply in determining the reasonableness
of compensation. The fact that a bonus or
revenue-sharing arrangement is subject
to a cap is a relevant factor in determining
the reasonableness of compensation.
bequests received by the organization
before the end of the tax year of the
organization in which the contribution or
bequest is received by the organization
from the person. A substantial contributor
includes the grantor of a trust.
The excess benefit for substantial
contributors and parties related to those
contributors includes the amount of the
grant, loan, compensation, or similar
payment. For additional information, see
the Instructions for Form 4720.
The organization reports the benefit as
•
compensation on an original Form W-2,
Form 1099, or Form 990, or on an
amended form filed before the start of an
IRS examination.
The disqualified person reports the
•
benefit as income on the person's original
Form 1040 or 1040-SR or on an
amended form filed before the start of an
IRS examination.
Exception. To the extent the economic
benefit is excluded from the disqualified
person's gross income for income tax
purposes, the applicable tax-exempt
organization isn't required to indicate its
intent to provide an economic benefit as
compensation for services, for example,
employer-provided health benefits and
contributions to qualified plans under
section 401(a).
For determining the reasonableness of
compensation, all items of compensation
provided by an applicable tax-exempt
organization in exchange for the
performance of services are taken into
account in determining the value of
compensation (except for certain
economic benefits that are disregarded,
as discussed in What benefits are
disregarded? in this Appendix, later).
Items of compensation include the
following.
When does an excess benefit transac-
tion usually occur? For federal income
tax purposes, an excess benefit
transaction occurs on the date the
disqualified person receives the
economic benefit from the organization.
However, when a single contractual
arrangement provides for a series of
compensation payments or other
payments to a disqualified person during
the disqualified person's tax year, any
excess benefit transaction for these
payments occurs on the last day of the
disqualified person’s tax year.
What benefits are disregarded? The
following economic benefits are
disregarded for purposes of section
4958.
All forms of cash and noncash
•
compensation, including salary, fees,
bonuses, severance payments, and
deferred and noncash compensation.
Nontaxable fringe benefits. An
•
economic benefit that is excluded from
income under section 132.
In the case of the transfer of property
subject to a substantial risk of forfeiture,
or in the case of rights to future
The payment of liability insurance
•
Benefits to volunteers. An economic
•
premiums for, or the payment or
benefit provided to a volunteer for the
organization if the benefit is provided to
the general public in exchange for a
membership fee or contribution of $75 or
less per year.
compensation or property, the transaction
occurs on the date the property, or the
rights to future compensation or property,
isn't subject to a substantial risk of
forfeiture. Where the disqualified person
elects to include an amount in gross
income in the tax year of transfer under
section 83(b), the excess benefit
transaction occurs on the date the
disqualified person receives the
reimbursement by the organization of
taxes or certain expenses under section
4958, unless excludable from income as
a de minimis fringe benefit under section
132(a)(4). (A similar rule applies in the
private foundation area.) Inclusion in
compensation for purposes of
Benefits to members or donors. An
•
economic benefit provided to a member
of an organization due to the payment of
a membership fee, or to a donor as a
result of a deductible contribution, if a
significant number of nondisqualified
persons make similar payments or
contributions and are offered a similar
economic benefit.
determining reasonableness under
section 4958 doesn't control inclusion in
income for income tax purposes.
economic benefit for federal income tax
purposes.
All other compensatory benefits,
•
whether or not included in gross income
for income tax purposes.
2023 Instructions for Form 990
87
Benefits to a charitable beneficiary. An
the nonfixed payment when the
•
Rebuttable Presumption
of Reasonableness
economic benefit provided to a person
solely as a member of a charitable class
that the applicable tax-exempt
organization intends to benefit as part of
the accomplishment of its exempt
purpose.
employment contract is entered into by, in
effect, assuming that the maximum
amount payable under the contract will be
paid, and satisfying the requirements
giving rise to the rebuttable presumption
for that maximum amount.
Payments under a compensation
arrangement are presumed to be
reasonable and the transfer of property
(or right to use property) is presumed to
be at FMV, if the following three
conditions are met.
Benefits to a governmental unit. A
•
An IRS challenge to the presumption
of reasonableness. The IRS can refute
the presumption of reasonableness only
if it develops sufficient contrary evidence
to rebut the probative value of the
comparability data relied upon by the
authorized body. This provision gives
taxpayers added protection if they
faithfully find and use contemporaneous
persuasive comparability data when they
provide the benefits.
transfer of an economic benefit to or for
the use of a governmental unit, as
defined in section 170(c)(1), if exclusively
for public purposes.
1. The transaction is approved by an
authorized body of the organization (or an
entity it controls), which is composed of
individuals who don't have a conflict of
interest concerning the transaction.
2. Before making its determination,
the authorized body obtained and relied
upon appropriate data as to
Is there an exception for initial con-
tracts? Section 4958 doesn't apply to
any fixed payment made to a person
pursuant to an initial contract. This is a
very important exception, because it
would potentially apply, for example, to all
initial contracts with new, previously
unrelated officers and contractors.
An initial contract is a binding written
contract between an applicable
tax-exempt organization and a person
who wasn't a disqualified person
immediately before entering into the
contract.
A fixed payment is an amount of cash
or other property specified in the
contract, or determined by a fixed formula
that is specified in the contract, which is
to be paid or transferred in exchange for
the provision of specified services or
property.
comparability. There is a special safe
harbor for small organizations. If the
organization has gross receipts of less
than $1 million, appropriate comparability
data includes data on compensation paid
by three comparable organizations in the
same or similar communities for similar
services.
3. The authorized body adequately
documents the basis for its determination
concurrently with making that
determination. The documentation
should include:
Organizations that don't establish a
presumption of reasonableness. An
organization can still comply with section
4958 even if it didn't establish a
presumption of reasonableness. In some
cases, an organization may find it
impossible or impracticable to fully
implement each step of the rebuttable
presumption process. In those cases, the
organization should try to implement as
many steps as possible, in whole or in
part, in order to substantiate the
reasonableness of benefits as timely and
as well as possible. If an organization
doesn't satisfy the requirements of the
rebuttable presumption of
a. The terms of the approved
transaction and the date approved;
b. The members of the authorized
body who were present during debate on
the transaction that was approved and
those who voted on it;
c. The comparability data obtained
and relied upon by the authorized body
and how the data was obtained;
d. Any actions by a member of the
authorized body having a conflict of
interest; and
e. Documentation of the basis for the
determination before the later of the next
meeting of the authorized body or 60
days after the final actions of the
authorized body are taken, and approval
of records as reasonable, accurate, and
complete within a reasonable time
thereafter.
A fixed formula can, in general,
incorporate an amount that depends
upon future specified events or
reasonableness, a facts and
circumstances approach will be followed,
using established rules for determining
reasonableness of compensation and
benefit deductions in a manner similar to
the established procedures for section
162 business expenses.
contingencies, as long as no one has
discretion when calculating the amount of
a payment or deciding whether to make a
payment (such as a bonus).
Treatment as new contract. A binding
written contract, providing that it can be
terminated or canceled by the applicable
tax-exempt organization without the other
party's consent (except as a result of
substantial nonperformance) and without
substantial penalty, is treated as a new
contract, as of the earliest date that any
termination or cancellation would be
effective. Also, a contract in which there
is a material change, which includes an
extension or renewal of the contract
(except for an extension or renewal
resulting from the exercise of an option by
the disqualified person), or a more than
incidental change to the amount payable
under the contract, is treated as a new
contract as of the effective date of the
material change. Treatment as a new
contract can cause the contract to fall
outside the initial contract exception, and
it would thus be tested under the FMV
standards of section 4958.
Section 4958 Taxes
Tax on disqualified persons. An excise
tax equal to 25% of the excess benefit is
imposed on each excess benefit
transaction between an applicable
tax-exempt organization and a
disqualified person. The disqualified
person who benefited from the
transaction is liable for the tax. If the 25%
tax is imposed and the excess benefit
transaction isn't corrected within the tax
period, an additional excise tax equal to
200% of the excess benefit is imposed.
Special rebuttable presumption rule
for nonfixed payments. As a general
rule, in the case of a nonfixed payment,
no rebuttable presumption arises until the
exact amount of the payment is
If a disqualified person makes a
payment of less than the full correction
amount, the 200% tax is imposed only on
the unpaid portion of the correction
amount. If more than one disqualified
person received an excess benefit from
an excess benefit transaction, all the
disqualified persons are jointly and
severally liable for the taxes.
determined, or a fixed formula for
calculating the payment is specified, and
the three requirements creating the
presumption have been satisfied.
However, if the authorized body approves
an employment contract with a
disqualified person that includes a
nonfixed payment (for example,
To avoid the imposition of the 200%
tax, a disqualified person must correct
the excess benefit transaction during the
discretionary bonus) with a specified cap
on the amount, the authorized body can
establish a rebuttable presumption as to
88
2023 Instructions for Form 990
tax period. The tax period begins on the
date the transaction occurs and ends on
the earlier of the date the statutory notice
of deficiency is issued or the section
4958 taxes are assessed. This 200% tax
can be abated if the excess benefit
transaction is subsequently corrected
during a 90-day correction period.
inquiry or examination into whether an
excess benefit transaction has occurred
between a church and a disqualified
person.
Correcting an Excess
Benefit Transaction
A disqualified person corrects an
excess benefit transaction by undoing
the excess benefit to the extent possible,
and by taking any additional measures
necessary to place the organization in a
financial position not worse than that in
which it would be if the disqualified
person were dealing under the highest
fiduciary standards. The organization isn't
required to rescind the underlying
agreement; however, the parties may
need to modify an ongoing contract for
future payments.
Revenue-Sharing
Transactions
Proposed intermediate sanction
Tax on organization managers. An
excise tax equal to 10% of the excess
benefit can be imposed on the
regulations were issued in 1998. The
proposed regulations had special
provisions covering “any transaction in
which the amount of any economic
benefit provided to or for the use of a
disqualified person is determined in
whole or in part by the revenues of one or
more activities of the organization” —
so-called revenue-sharing transactions.
Rather than setting forth additional rules
on revenue-sharing transactions, the final
regulations reserve this section.
participation of an organization manager
in an excess benefit transaction between
an applicable tax-exempt organization
and a disqualified person. This tax, which
can't exceed $20,000 for any single
transaction, is only imposed if the 25%
tax is imposed on the disqualified person,
the organization manager knowingly
participated in the transaction, and the
manager's participation was willful and
not due to reasonable cause. There is
also joint and several liability for this tax.
An organization manager can be liable for
both the tax on disqualified persons and
on organization managers in appropriate
circumstances.
A disqualified person corrects an
excess benefit by making a payment in
cash or cash equivalents equal to the
correction amount to the applicable
tax-exempt organization. The correction
amount equals the excess benefit plus
the interest on the excess benefit; the
interest rate can be no lower than the
applicable federal rate. There is an
anti-abuse rule to prevent the disqualified
person from effectively transferring
property other than cash or cash
equivalents.
Consequently, until the IRS issues new
regulations for this reserved section on
revenue-sharing transactions, these
transactions will be evaluated under the
general rules (for example, the FMV
standards) that apply to all contractual
arrangements between applicable
tax-exempt organizations and their
disqualified persons.
An organization manager is any
officer, director, or trustee of an
applicable tax-exempt organization, or
any individual having powers or
Revocation of
Exemption and Section
4958
Exception. For a correction of an excess
benefit transaction described under
Donor advised funds, earlier, no amount
repaid in a manner prescribed by the IRS
can be held in a donor advised fund.
responsibilities similar to officers,
directors, or trustees of the organization,
regardless of title. An organization
manager isn't considered to have
participated in an excess benefit
transaction where the manager has
opposed the transaction in a manner
consistent with the fulfillment of the
manager's responsibilities to the
organization. For example, a director who
votes against giving an excess benefit
would ordinarily not be subject to this tax.
Section 4958 doesn't affect the
Property. With the agreement of the
applicable tax-exempt organization, a
disqualified person can make a payment
by returning the specific property
previously transferred in the excess
benefit transaction. The return of the
property is considered a payment of cash
(or cash equivalent) equal to the lesser
of:
substantive standards for tax exemption
under section 501(c)(3), 501(c)(4), or
501(c)(29), including the requirements
that the organization be organized and
operated exclusively for exempt
purposes, and that no part of its net
earnings inure to the benefit of any
private shareholder or individual. The
legislative history indicates that in most
instances, the imposition of this
A person participates in a transaction
knowingly if the person has actual
The FMV of the property on the date
•
knowledge of sufficient facts so that,
based solely upon the facts, the
the property is returned to the
organization, or
intermediate sanction will be in lieu of
revocation. The IRS has indicated that
the following factors will be considered
(among other facts and circumstances) in
determining whether to revoke an
applicable tax-exempt organization's
exemption status where an excess
benefit transaction has occurred.
transaction would be an excess benefit
transaction. Knowing doesn't mean
having reason to know. The organization
manager won’t ordinarily be considered
knowing if, after full disclosure of the
factual situation to an appropriate
The FMV of the property on the date
•
the excess benefit transaction occurred.
Insufficient payment. If the payment
resulting from the return of the property is
less than the correction amount, the
disqualified person must make an
additional cash payment to the
professional, the organization manager
relied on the professional's reasoned
written opinion on matters within the
professional's expertise or if the manager
relied on the fact that the requirements for
the rebuttable presumption of
The size and scope of the
•
organization's regular and ongoing
activities that further exempt purposes
before and after the excess benefit
transaction or transactions occurred.
organization equal to the difference.
Excess payment. If the payment
resulting from the return of the property
exceeds the correction amount described
above, the organization can make a cash
payment to the disqualified person equal
to that difference.
The size and scope of the excess
•
reasonableness have been satisfied.
Participation by an organization manager
is willful if it is voluntary, conscious, and
intentional. An organization manager's
participation is due to reasonable cause if
the manager has exercised responsibility
on behalf of the organization with
benefit transaction or transactions
(collectively, if more than one) in relation
to the size and scope of the
organization's regular and ongoing
activities that further exempt purposes.
Churches and Section
4958
Whether the organization has been
•
involved in multiple excess benefit
ordinary business care and prudence.
The regulations make it clear that the IRS
will apply the procedures of section 7611
when initiating and conducting any
transactions with one or more persons.
2023 Instructions for Form 990
89
Whether the organization has
or print all of the forms, instructions, and
publications you may need. Or, you can
order.
•
Forms W-2 and W-3. Wage and Tax
Statement; and Transmittal of Wage and
Tax Statements.
implemented safeguards that are
reasonably calculated to prevent excess
benefit transactions.
Form W-9. Request for Taxpayer
Whether the excess benefit transaction
•
Getting tax publications and instruc-
tions in eBook format. You can also
download and view popular tax
Identification Number and Certification.
has been corrected, or the organization
has made good faith efforts to seek
correction from the disqualified person(s)
who benefited from the excess benefit
transaction.
Form 720. Quarterly Federal Excise Tax
Return.
publications and instructions (including
the Instructions for Form 1040) on mobile
The Patient-Centered Outcomes
Research fee is imposed on
!
CAUTION
issuers of specified health
Appendix H. Forms and
Publications To File or
Use
How To Get Forms and
Publications
Note. IRS eBooks have been tested
using Apple's iBooks for iPad. Our
eBooks haven’t been tested on other
dedicated eBook readers, and eBook
functionality may not operate as
intended.
insurance policies (section 4375) and
plan sponsors of applicable self-insured
health plans (section 4376) for policy and
plan years ending on or after October 1,
2012. See Form 720 and section 4376 for
more information.
Phone. If you have questions and/or
need help completing Form 990 or
990-EZ, call 877-829-5500. This toll-free
telephone service is available Monday
through Friday.
In addition to various federal excise taxes
that are paid with the filing of Form 720,
the Patient-Centered Outcomes
Internet. You can access the IRS
website at IRS.gov 24 hours a
day, 7 days a week to:
Research fee that is imposed on issuers
of specified health insurance policies and
plan sponsors of applicable self-insured
health plans is payable annually and
reported on the Form 720 that is filed for
the second quarter of each year, which is
due no later than July 31 of the calendar
year immediately following the last day of
the policy year or plan year to which the
fee applies.
Download forms, including talking tax
•
Other Forms That May Be
Required
forms, instructions, and publications;
Order IRS products online;
•
•
•
Research your tax questions online;
Search publications online by topic or
Schedule A (Form 990). Public Charity
Status and Public Support.
keyword;
Use the online Internal Revenue Code,
•
Schedule B (Form 990). Schedule of
regulations, or other official guidance;
Contributors.
View Internal Revenue Bulletins (IRBs)
•
Schedule C (Form 990). Political
published in the last few years; and
Campaign and Lobbying Activities.
Form 926. Return by a U.S. Transferor of
Sign up to receive local and national
•
Property to a Foreign Corporation.
tax news by email.
Schedule D (Form 990). Supplemental
Financial Statements.
Form 940. Employer's Annual Federal
Unemployment (FUTA) Tax Return.
How To Get Tax Help
Schedule E (Form 990). Schools.
Form 941. Employer's QUARTERLY
Federal Tax Return. Used to report social
security, Medicare, and income taxes
withheld by an employer and social
security and Medicare taxes paid by an
employer.
Schedule F (Form 990). Statement of
Activities Outside the United States.
Coronavirus for links to information on the
impact of the coronavirus, as well as tax
relief available for individuals and
families, small and large businesses, and
tax-exempt organizations.
Schedule G (Form 990). Supplemental
Information Regarding Fundraising or
Gaming Activities.
Schedule H (Form 990). Hospitals.
Form 943. Employer's Annual Federal
Getting answers to your tax ques-
tions. On IRS.gov, you can get
up-to-date information on current events
and changes in tax law.
Tax Return for Agricultural Employees.
Schedule I (Form 990). Grants and
Other Assistance to Organizations,
Governments, and Individuals in the
United States.
Form 990-T. Exempt Organization
Business Income Tax Return. Filed
separately for organizations subject to
UBTI that have total gross income from all
of their unrelated trades or businesses
of $1,000 or more for the tax year. The
Form 990-T is also filed to pay the section
6033(e)(2) proxy tax. For Form 990, see
Part V, line 3, and its instructions; for
Form 990-EZ, see Part V, line 35, and its
instructions.
IRS.gov/Help: A variety of tools to help
•
you get answers to some of the most
common tax questions.
Schedule J (Form 990). Compensation
Information.
•
Schedule K (Form 990). Supplemental
Assistant, a tool that will ask you
questions and, based on your input,
provide answers on a number of tax law
topics.
Information on Tax-Exempt Bonds.
Schedule L (Form 990). Transactions
With Interested Persons.
IRS.gov/Forms: Find forms,
•
Schedule M (Form 990). Noncash
instructions, and publications. You will
find details on the most recent tax
changes and interactive links to help you
find answers to your questions.
Form 1023. Application for Recognition
of Exemption Under Section 501(c)(3) of
the Internal Revenue Code.
Contributions.
Schedule N (Form 990). Liquidation,
Termination, Dissolution, or Significant
Disposition of Assets.
Form 1023-EZ. Streamlined Application
for Recognition of Exemption Under
Section 501(c)(3) of the Internal Revenue
Code.
•
EIN) helps you get an employer
Schedule O (Form 990). Supplemental
identification number (EIN) at no cost.
Information to Form 990 or 990-EZ.
You may also be able to access tax law
•
information in your electronic filing
software.
Schedule R (Form 990). Related
Organizations and Unrelated
Partnerships.
Form 1024. Application for Recognition
of Exemption Under Section 501(a).
Getting tax forms and publications.
90
2023 Instructions for Form 990
received in the course of a trade or
business.
Form 1024-A. Application for
Form 4562. Depreciation and
Recognition of Exemption Under Section
501(c)(4) of the Internal Revenue Code.
Amortization.
Form 8328. Carryforward Election of
Unused Private Activity Bond Volume
Cap.
Form 4720. Return of Certain Excise
Taxes Under Chapters 41 and 42 of the
Internal Revenue Code.
Form 1040. U.S. Individual Income Tax
Return.
Form 8718. User Fee for Exempt
Organization Determination Letter
Request.
Form 1040-SR. U.S. Tax Return for
Form 5471. Information Return of U.S.
Persons With Respect to Certain Foreign
Corporations.
Seniors.
Form 1041. U.S. Income Tax Return for
Estates and Trusts. Required of section
4947(a)(1) nonexempt charitable trusts
that also file Form 990 or 990-EZ.
Form 8821. Tax Information
Form 5500. Annual Return/Report of
Employee Benefit Plan. Employers who
maintain pension, profit-sharing, or other
funded deferred compensation plans are
generally required to file Form 5500. This
requirement applies whether or not the
plan is qualified under the Internal
Revenue Code and whether or not a
deduction is claimed for the current tax
year.
Authorization.
Form 8822-B. Change of Address or
Responsible Party—Business. Used to
notify the IRS of a change in mailing
address that occurs after the return is
filed.
However, if the trust doesn't have any
taxable income under subtitle A of the
Code, it can file Form 990 or 990-EZ, and
doesn't have to file Form 1041 to meet its
section 6012 filing requirement. If this
condition is met, complete Form 990 or
990-EZ, and don't file Form 1041.
Form 8868. Application for Extension of
Time To File an Exempt Organization
Return or Excise Taxes Related to
Employee Benefit Plans.
Form 1096. Annual Summary and
Form 5578. Annual Certification of
Racial Nondiscrimination for a Private
School Exempt From Federal Income
Tax.
Transmittal of U.S. Information Returns.
Form 8870. Information Return for
Transfers Associated With Certain
Personal Benefit Contracts. Used to
identify those personal benefit contracts
for which funds were transferred to the
organization, directly or indirectly, as well
as the transferors for, and beneficiaries
of, those contracts.
Form 1098 series. Information returns
to report mortgage interest, student loan
interest, qualified tuition and related
expenses received, and a contribution of
a qualified vehicle that has a claimed
value of more than $500.
Form 5768. Election/Revocation of
Election by an Eligible Section 501(c)(3)
Organization To Make Expenditures To
Influence Legislation.
Form 1099 series. Information returns
to report acquisitions or abandonments of
secured property; proceeds from broker
and barter exchange transactions;
cancellation of debt; dividends and
distributions; certain government and
state qualified tuition program payments;
taxable distributions from cooperatives;
interest payments; payments of long-term
care and accelerated death benefits;
miscellaneous income payments;
distributions from an HSA, Archer MSA,
or Medicare Advantage MSA; original
issue discount; distributions from
Form 7004. Application for Automatic
Extension of Time To File Certain
Business Income Tax, Information, and
Other Returns.
Form 8871. Political Organization Notice
of Section 527 Status.
Form 8872. Political Organization
Report of Contributions and
Expenditures.
Form 8038 series. Tax-exempt bonds.
Form 8274. Certification by Churches
and Qualified Church-Controlled
Organizations Electing Exemption From
Employer Social Security and Medicare
Taxes.
Form 8886. Reportable Transaction
Disclosure Statement.
Form 8886-T. Disclosure by Tax-Exempt
Entity Regarding Prohibited Tax Shelter
Transaction.
Form 8282. Donee Information Return.
Required of the donee of charitable
deduction property who sells, exchanges,
or otherwise disposes of donated
property within 3 years after receiving it.
The form is also required of any
Form 8899. Notice of Income From
Donated Intellectual Property. Used to
report net income from qualified
intellectual property to the IRS and the
donor.
pensions, annuities, retirement or
profit-sharing plans, IRAs, insurance
contracts, etc.; and proceeds from real
estate transactions. Also, use certain of
these returns to report amounts that were
received as a nominee on behalf of
another person.
successor donee who disposes of the
charitable deduction property within 3
years after the date that the donor gave
the property to the original donee. It
doesn't matter who gave the property to
the successor donee. It may have been
the original donee or another successor
donee.
Form 8940. Request for Miscellaneous
Determination.
Form 8976. Notice of Intent to Operate
Form 1120-POL. U.S. Income Tax
Under Section 501(c)(4).
Return for Certain Political Organizations.
Form SS-4. Application for Employer
Form 1128. Application To Adopt,
Identification Number.
Change, or Retain a Tax Year.
Form 8283. Noncash Charitable
FinCEN Form 114. Report of Foreign
Form 2848. Power of Attorney and
Contributions.
Bank and Financial Accounts.
Declaration of Representative.
Form 8300. Report of Cash Payments
Over $10,000 Received in a Trade or
Business. Used to report cash amounts
in excess of $10,000 that were received
in a single transaction (or in two or more
related transactions) in the course of a
trade or business (as defined in section
162).
However, if the organization receives a
charitable cash contribution in excess of
$10,000, it isn't subject to the reporting
requirement since the funds weren't
Form 3115. Application for Change in
Helpful Publications
Accounting Method.
Pub. 15. (Circular E), Employer's Tax
Form 3520. Annual Return To Report
Transactions With Foreign Trusts and
Receipt of Certain Foreign Gifts.
Guide.
Trust fund recovery penalty. If
certain excise, income, social
!
Form 4506. Request for Copy of Tax
CAUTION
security, and Medicare taxes that
Return.
must be collected or withheld aren't
collected or withheld, or these taxes
aren't paid to the IRS, the trust fund
recovery penalty can apply. The trust
Form 4506-A. Request for a Copy of
Exempt or Political Organization IRS
Form.
2023 Instructions for Form 990
91
fund recovery penalty can be imposed on
all persons (including volunteers) who the
IRS determines were responsible for
collecting, accounting for, and paying
over these taxes, and who acted willfully
in not doing so.
A report on the financial statements by
•
Pub. 4302. A Charity's Guide to Vehicle
an independent accountant.
Donation.
Answers to additional questions and
•
Pub. 4303. A Donor's Guide to Vehicle
other information.
Donation.
Each jurisdiction can require the
additional material to be presented on
forms they provide. The additional
information shouldn't be submitted with
the Form 990 or 990-EZ filed with the
IRS, unless included on Schedule O
(Form 990).
Even if the Form 990 or 990-EZ that
the organization files with the IRS is
accepted by the IRS as complete, a copy
of the same return filed with a state won't
fully satisfy that state's filing requirement
if (1) required information isn't provided,
including any of the additional information
discussed in this Appendix; or (2) the
state determines that the form wasn't
completed by following the applicable
Form 990 or 990-EZ instructions or
supplemental state instructions. In that
case, the state may ask the organization
to provide the missing information or to
submit an amended return.
Pub. 4386. Compliance Checks.
Pub. 4573. Group Exemptions.
This penalty doesn't apply to volunteer
unpaid members of any board of trustees
or directors of a tax-exempt organization,
if these members are solely serving in an
honorary capacity, don't participate in the
day-to-day or financial activities of the
organization, and don't have actual
knowledge of the failure to collect,
account for, and pay over these taxes.
However, the preceding sentence doesn't
apply if it results in no person being liable
for the penalty.
Appendix I. Use of Form
990 or 990-EZ To Satisfy
State Reporting
Requirements
Some states and local governmental
units will accept a copy of Form 990 or
990-EZ in place of all or part of their own
financial report forms. The substitution
applies primarily to section 501(c)(3)
organizations, but some other types of
section 501(c) organizations are also
affected. If the organization uses Form
990 or 990-EZ to satisfy state or local
filing requirements, such as those under
state charitable solicitation acts, note the
following discussions.
The penalty is equal to the unpaid trust
fund tax. See Pub. 15 (Circular E) for
more details, including the definition of
responsible persons.
Pub. 15-A. Employer's Supplemental
Tax Guide.
Pub. 463. Travel, Gift, and Car
Use of audit guides may be required.
To ensure that all organizations report
similar transactions uniformly, many
states require that contributions, gifts,
grants, similar amounts, and functional
expenses be reported according to the
AICPA Audit and Accounting Guide,
Not-for-Profit Entities (2018),
Determine state filing requirement.
The organization can consult the
appropriate officials of all states and
other jurisdictions in which it does
business to determine their specific filing
requirements. Doing business in a
jurisdiction can include:
Expenses.
Pub. 525. Taxable and Nontaxable
Income.
Pub. 526. Charitable Contributions.
Pub. 538. Accounting Periods and
Methods.
Soliciting contributions or grants by
•
supplemented, as applicable, by the
Standards of Accounting and Financial
Reporting for Voluntary Health and
Welfare Organizations issued jointly by
the National Health Council, Inc., the
National Assembly of Voluntary Health
and Social Welfare Organizations, and
the United Way of America (1998).
mail or otherwise from individuals,
businesses, or other charitable
organizations;
Pub. 557. Tax-Exempt Status for Your
Organization.
Pub. 561. Determining the Value of
Conducting programs;
•
Donated Property.
Having employees within that
•
jurisdiction;
Pub. 598. Tax on Unrelated Business
Maintaining a checking account; or
Owning or renting property there.
•
Income of Exempt Organizations.
•
Pub. 892. How to Appeal an IRS
Donated services and facilities. Even
though donated services and facilities
may be reported as items of revenue and
expense in certain circumstances, many
states and the IRS don't permit the
inclusion of those amounts in Parts VIII
and IX of Form 990, Part I of Form
Monetary tests can differ. Some or all
of the dollar limitations applicable to Form
990 or 990-EZ when filed with the IRS
may not apply when using Form 990 or
990-EZ in place of state or local report
forms. Examples of the IRS dollar
limitations that don't meet some state
requirements are the normally $50,000
gross receipts minimum that creates an
obligation to file with the IRS and the
$100,000 minimum for listing
Decision on Tax-Exempt Status.
Pub. 946. How To Depreciate Property.
Pub. 1771. Charitable
Contributions—Substantiation and
Disclosure Requirements.
Pub. 1828. Tax Guide for Churches and
990-EZ, or (except for donations by a
governmental unit) Schedule A (Form
990). The optional reporting of donated
services and facilities is discussed in the
instructions for Part III of Form 990.
Religious Organizations.
Pub. 3079. Tax-Exempt Organizations
and Gaming.
independent contractors on Form 990,
Part VII, Section B.
Pub. 3386. Tax Guide for Veterans'
Amended returns. If the organization
submits supplemental information or files
an amended Form 990 or 990-EZ with
the IRS, it must also send a copy of the
information or amended return to any
state with which it filed a copy of Form
990 or 990-EZ originally to meet that
state's filing requirement. If a state
Organizations.
Additional information may be re-
quired. State or local filing requirements
can require the organization to attach to
Form 990 or 990-EZ one or more of the
following.
Pub. 3833. Disaster Relief, Providing
Assistance Through Charitable
Organizations.
Pub. 4220. Applying for 501(c)(3)
Additional financial statements, such
•
Tax-Exempt Status.
as a complete analysis of functional
expenses or a statement of changes in
net assets.
Pub. 4221-PC. Compliance Guide for
requires the organization to file an
501(c)(3) Public Charities.
amended Form 990 or 990-EZ to correct
conflicts with the Form 990 or 990-EZ
instructions, the organization must also
file an amended return with the IRS.
Notes to financial statements.
Additional financial statements.
Pub. 4221-PF. Compliance Guide for
•
501(c)(3) Private Foundations.
•
92
2023 Instructions for Form 990
A donee organization reports all
income from donated qualified
Method of accounting. Most states
require that all amounts be reported
based on the accrual method of
accounting. See also General Instruction
D, earlier.
IF...
THEN...
the
it must keep samples of the
advertising copy.
intellectual property as income other than
contributions (for example, royalty income
from a patent). A donee isn't required to
report as contributions on Form 990
(including statements) any of the
organization
advertises its
fundraising
events
Time for filing can differ. The deadline
for filing Form 990 or 990-EZ with the IRS
differs from the time for filing reports with
some states.
the
it must keep samples of scripts,
transcripts, printouts of emails
and web pages, or other
evidence of solicitations in the
media.
additional deductions claimed by donors
under section 170(m)(1). See Pub. 526.
Motor vehicles, boats, and
organization
uses radio,
television, or
Internet to
solicit
airplanes. Special rules apply to
charitable contributions of motor vehicles,
boats, or airplanes with a claimed value
of more than $500. See Form 990, Part V,
line 7h; section 170(f)(12); Pub. 4302, A
Charity’s Guide to Vehicle Donation; and
the Instructions for Form 1098-C,
Contributions of Motor Vehicles, Boats,
and Airplanes.
Public inspection. The Form 990 or
990-EZ information made available for
public inspection by the IRS can differ
from that made available by the states.
contributions
the
organization
uses outside the outside fundraisers.
fundraisers
it must keep samples of the
fundraising materials used by
Appendix J.
Contributions
This Appendix discusses certain federal
tax rules that apply to exempt
For each fundraising event, the
organization must keep records to show
the portion of any payment received from
patrons that isn't deductible, that is, the
retail value of the goods or services
received by the patrons. See Disclosure
statement for quid pro quo contributions,
later.
organizations and donors for
Substantiation and disclosure
requirements for charitable
contributions. See also Pub. 526,
Charitable Contributions; and Pub. 1771,
Charitable Contributions—Substantiation
and Disclosure Requirements.
contributions.
Recordkeeping for cash, check, or
other monetary charitable gifts. To
deduct a contribution of a cash, check, or
other monetary gift (regardless of the
amount), a donor must maintain a bank
record or a written communication from
the donee organization showing the
donee's name, date, and amount of the
contribution. See section 170(f)(17) and
Regulations section 1.170A-15 for more
information. In the case of a text message
contribution, the donor's phone bill meets
the section 170(f)(17) recordkeeping
requirement of a reliable written record if
it shows the name of the donee
Schedule B (Form 990). Many
organizations that file Form 990, 990-EZ,
or 990-PF must file Schedule B to report
on tax-deductible and non-tax-deductible
contributions. See Schedule B and its
instructions to determine whether
Schedule B must be filed, and for the
public inspection rules applicable to that
form.
Noncash contributions. Form 990
schedules. An organization may be
required to file Schedule M to report
certain noncash (property) contributions;
see the instructions for Schedule M on
who must file. Also, an organization that
files Schedule B must report certain
information on noncash contributions.
Dispositions of donated property.
If an organization receives a charitable
contribution of property and within 3
years sells, exchanges, or otherwise
disposes of the property, the organization
may need to file Form 8282, Donee
Information Return. See Form 990, Part
V, lines 7c and 7d.
Donated property over $5,000. If the
organization received from a donor a
partially completed Form 8283, Noncash
Charitable Contributions, the donee
organization should generally complete
the Form 8283 and return it so the donor
can get a charitable contribution
Solicitation of nondeductible contri-
bution. See the instructions for Form
990, Part V, lines 6a and 6b, for rules on
public notice of nondeductibility when
soliciting nondeductible contributions.
organization and the date and amount of
contribution.
Acknowledgment to substantiate
charitable contributions. A donee
organization should be aware that a
donor of a charitable contribution of $250
or more (including a contribution of
unreimbursed expenses) can't take an
income tax deduction unless the donor
obtains the organization’s
Keeping fundraising records for
tax-deductible contributions. A
section 501(c) organization that is eligible
to receive tax-deductible contributions
under section 170(c) must keep sample
copies of its fundraising materials, such
as:
Dues statements,
•
•
•
•
•
acknowledgment to substantiate the
charitable contribution. See section
170(f)(8) and Regulations section
1.170A-13(f). A charitable organization
that receives a payment made as a
contribution is treated as the donee
organization for this purpose even if the
organization (according to the donor’s
instructions or otherwise) distributes the
amount received to one or more charities.
Fundraising solicitations,
Tickets,
Receipts, or
deduction. The organization should keep
a copy for its records. See Form 8283 for
more details.
Qualified intellectual property. An
organization described in section 170(c)
(except a private foundation) that
Other evidence of payments received
in connection with fundraising activities.
receives or accrues net income from a
qualified intellectual property contribution
must file Form 8899, Notice of Income
From Donated Intellectual Property. See
Form 990, Part V, line 7g. The
The organization's acknowledgment
must:
1. Be written;
2. Be contemporaneous;
organization must file Form 8899 for any
tax year that includes any part of the
10-year period beginning on the date of
contribution but not for any tax years in
which the legal life of the qualified
intellectual property has expired or the
property failed to produce net income.
3. State the amount of any cash it
received;
4. State:
a. Whether the organization gave the
donor any intangible religious benefits
(no valuation needed), and
2023 Instructions for Form 990
93
b. Whether the organization gave the
donor any goods or services in return for
the donor’s contribution (a quid pro quo
contribution); and
3. Describe, but need not value,
certain goods or services given to the
donor’s employees or partners; and
4. Inform the donor that a charitable
contribution deduction is limited as
follows.
written acknowledgment may indicate
that no goods or services were provided
in exchange for the donor’s payment.
Certain membership benefits. Other
goods or services that are disregarded
for substantiation and disclosure
purposes are annual membership
benefits offered to a taxpayer in
5. Describe goods or services the
organization:
a. Received (no valuation needed),
and
Donor’s contribution
Less
exchange for a payment of $75 or less
b. Gave (good faith estimate of value
The organization’s money, goods, and
services given in return
Equals
per year that consist of:
needed).
1. Any rights or privileges that the
taxpayer can exercise frequently during
the membership period such as:
If the organization accepts a
Donor’s deductible charitable
contribution.
contribution in the name of one of its
activities or programs, then indicate the
organization's name in the
a. Free or discounted admission to
Exceptions. No disclosure statement
the organization's facilities or events, or
is required if the organization gave only:
acknowledgment as well as the
b. Free or discounted parking; or
2. Admission to events that are:
a. Open only to members, and
1. Goods or services with
insubstantial value,
program's name. For example: “Thank
you for your contribution of $300 to
(organization's name) made in the name
of our Special Relief Fund program. No
goods or services were provided in
exchange for your contribution.”
2. Certain membership benefits,
3. Goods or services described in (1)
or (2) given to the employees of a donor
organization or the partners of a donor
partnership, or
b. Within the low-cost article
limitation, per person.
Example 1. E offers a basic
Similarly, if a domestic organization
membership benefits package for $75.
The package gives members the right to
buy tickets in advance, free parking, and
a gift shop discount of 10%. E’s $150
preferred membership benefits package
also includes a $20 poster. Both the
basic and preferred membership
owns and controls a domestic
4. Intangible religious benefits.
disregarded entity, and the disregarded
entity receives a contribution, then
indicate the organization's name in the
acknowledgment as well as the
These exceptions are defined below.
See also Regulations sections 1.170A-1,
1.170A-13, and 1.6115-1.
relationship with the disregarded entity.
For example: “Thank you for your
contribution of $300 to (organization's
name) made in the name of (name of
disregarded entity), which is treated as a
disregarded entity of (organization's
name) for federal tax purposes. No goods
or services were provided in exchange for
your contribution.” See Notice 2012-52,
2012-35 I.R.B. 317.
Certain goods or services disregar-
ded for substantiation and disclosure
purposes.
packages are for a 12-month period and
include about 50 productions. E offers F,
a patron of the arts, the preferred
Goods or services with
insubstantial value. Generally, under
section 170, the deductible amount of a
contribution is determined by taking into
account the FMV, not the cost to the
charity, of any benefits that the donor
received in return. However, the cost to
the charity may be used in determining
whether the benefits are insubstantial.
See Cost basis next.
membership benefits in return for a
payment of $150 or more. F accepts the
preferred membership benefits package
for $300. E’s written acknowledgment
satisfies the substantiation requirement if
it describes the poster, gives a good faith
estimate of its FMV ($20), and disregards
the remaining membership benefits.
Exception. The written
acknowledgment need not include a
good faith estimate of value for goods or
services given to the donor if they are:
Example 2. In Example 1, if F
received only the basic membership
package for its $300 payment, E’s
acknowledgment need state only that no
goods or services were provided.
Cost basis. If a taxpayer makes a
payment of $62.50 or more to a charity
and receives only token items in return,
the items have insubstantial value if they:
1. Goods or services with
insubstantial value,
2. Certain membership benefits,
Bear the charity’s name or logo, and
Have an aggregate cost to the charity
•
3. Goods or services described in (1)
or (2) given to the employees of a donor
organization or the partners of a donor
partnership, or
Example 3. G Theater Group
•
performs four plays. Each play is
of $12.50 or less (low-cost article amount
of section 513(h)(2)).
performed twice. Nonmembers can
purchase a ticket for $15. For a $60
membership fee, however, members are
offered free admission to any of the
performances. H makes a payment of
$350 and accepts this membership
benefit. Because of the limited number of
performances, the membership privilege
can't be exercised frequently. Therefore,
G’s acknowledgment must describe the
free admission benefit and estimate its
value in good faith.
FMV basis. If a taxpayer makes a
payment to a charitable organization in a
fundraising campaign and receives
benefits with an FMV of not more than
2% of the amount of the payment, or
$125, whichever is less, the benefits
received have insubstantial value in
determining the taxpayer’s contribution.
4. Intangible religious benefits.
These exceptions are defined below.
Disclosure statement for quid pro quo
contributions. If the organization
receives a quid pro quo contribution of
more than $75, the organization must
provide a disclosure statement to the
donor. See section 6115.
The dollar amounts given above
are applicable to tax year 2023
!
The organization’s disclosure
CAUTION
under Rev. Proc. 2022-38,
Certain goods or services provided
to donor’s employees or partners.
Certain goods or services provided to
employees of donor organizations or
partners of donor partnerships may be
disregarded for substantiation and
disclosure purposes. Nevertheless, the
donee organization's disclosure
statement must:
2022-45 I.R.B. 1, section 3.34. They are
adjusted annually for inflation.
1. Be written;
2. Estimate in good faith the value of
the organization’s goods or services
given in return for the donor’s
contribution;
When a donee organization provides a
donor only with goods or services having
insubstantial value under Rev. Proc.
2022-38 (and any successor
documents), the contemporaneous
94
2023 Instructions for Form 990
statement must describe the goods or
services. A good faith estimate of value
isn't needed.
A pledge card or other document from
Cash,
•
•
•
•
•
•
the donee organization that shows its
name. For contributions of $250 or more,
the document must state that the donee
organization provides no goods or
services for any payroll contributions.
The amount withheld from each payment
of wages to a taxpayer is treated as a
separate contribution.
Property,
Services,
Benefits, and
Privileges.
Example. Museum J offers a basic
membership benefits package for $40. It
includes free admission and a 10% gift
shop discount. Corporation K makes a
$50,000 payment to J and in return, J
offers K’s employees free admission, a
T-shirt with J’s logo that costs J $4.50,
and a 25% gift shop discount. Because
the free admission is a privilege that can
be exercised frequently and is offered in
both benefit packages, and the value of
the T-shirts is insubstantial, Museum J's
disclosure statement need not value or
mention the free admission benefit or the
T-shirts. However, because the 25% gift
shop discount to K’s employees differs
from the 10% discount offered in the
basic membership benefits package, J's
disclosure statement must describe the
25% discount, but need not estimate its
value.
In consideration for. A donee
organization provides goods or services
in consideration for a taxpayer’s payment
if, at the time the taxpayer makes the
payment to the donee organization, the
taxpayer receives, or expects to receive,
goods or services in exchange for that
payment.
Substantiation of matched
payments. If a taxpayer’s payment to a
donee organization is matched by
another payor, and the taxpayer receives
goods or services in consideration for its
payment and some or all of the matching
payment, those goods or services will be
treated as provided in consideration for
the taxpayer’s payment and not in
consideration for the matching payment.
Disclosure statement. An
Goods or services a donee
organization provides in consideration for
a payment by a taxpayer include goods
or services provided in a year other than
the year in which the donor makes the
payment to the donee organization.
Intangible religious benefits.
organization must provide a written
disclosure statement to donors who
make a quid pro quo contribution in
excess of $75 (section 6115). This
requirement is separate from the written
substantiation acknowledgment a donor
needs for deductibility purposes. While,
in certain circumstances, an organization
may be able to meet both requirements
with the same written document, an
organization must be careful to satisfy the
section 6115 written disclosure statement
requirement in a timely manner because
of the penalties involved.
Quid pro quo contribution. A quid
pro quo contribution is a payment that is
made both as a contribution and as a
payment for goods or services provided
by the donee organization.
Example. A donor gives a charity
$100 in consideration for a concert ticket
valued at $40 (a quid pro quo
Intangible religious benefits are provided
only by organizations organized
exclusively for religious purposes.
Examples include:
Admission to a religious ceremony;
•
Definitions
and
Substantiation. It is the responsibility
De minimis tangible benefits, such as
•
of the donor:
wine provided in connection with a
religious ceremony.
To value a donation, and
•
To obtain an organization's written
•
Penalties. A charity that knowingly
provides a false substantiation
acknowledgment to a donor may be
subject to the penalties under section
6701 and/or section 7206(2) for aiding
and abetting an understatement of tax
liability.
acknowledgment substantiating the
donation.
There is no prescribed format for the
organization's written acknowledgment of
a donation. Letters, postcards, or
computer-generated forms may be
acceptable. The acknowledgment must,
however, provide sufficient information to
substantiate the amount of the deductible
contribution. The organization may either:
Charities that fail to provide the
required disclosure statement for a quid
pro quo contribution of more than $75 will
incur a penalty of $10 per contribution,
not to exceed $5,000 per fundraising
event or mailing. The charity may avoid
the penalty if it can show that the failure
was due to reasonable cause (section
6714).
Provide separate statements for each
•
contribution of $250 or more, or
contribution). In this example, $60 would
be deductible. Because the donor’s
payment exceeds $75, the organization
must furnish a disclosure statement even
though the taxpayer’s deductible amount
doesn't exceed $75. Separate payments
of $75 or less made at different times of
the year for separate fundraising events
won't be aggregated for purposes of the
$75 threshold.
Furnish periodic statements
•
substantiating contributions of $250 or
more.
Separate contributions of less than
$250 aren't subject to the requirements of
section 170(f)(8), whether or not the sum
of the contributions made by a taxpayer
to a donee organization during a tax year
equals $250 or more.
Contemporaneous. A written
acknowledgment is contemporaneous if
the donor obtains it on or before the
earlier of:
Appendix K. Reporting
Information for Section
501(c)(21) Black Lung
Trusts
Good faith estimate. An organization
may use any reasonable method in
making a good faith estimate of the value
of goods or services provided by that
organization in consideration for a
taxpayer’s payment to that organization.
A good faith estimate of the value of
goods or services that aren't generally
available in a commercial transaction
may be determined by reference to the
FMV of similar or comparable goods or
services. Goods or services may be
similar or comparable even though they
don't have the unique qualities of the
goods or services that are being valued.
Goods or services. Goods or
For tax years beginning before January 1,
2021, section 501(c)(21) black lung trusts
that could not use Form 990-N,
The date the donor files the original
•
e-Postcard (see Who Must File, earlier),
used Form 990-BL to meet the reporting
requirements of section 6033. A section
501(c)(21) black lung trust, trustee, or
disqualified person liable for section 4951
or 4952 excise taxes also used Form
990-BL to report and pay those taxes.
return for the tax year in which the
contribution was made, or
The due date (including extensions) for
•
filing the donor’s original return for that
year.
Substantiation of payroll
contributions. An organization may
substantiate an employee’s contribution
by deduction from its payroll by:
For tax years beginning after
December 31, 2020, section 501(c)(21)
trusts will use Form 990 instead of Form
990-BL to meet section 6033 reporting
requirements. A section 501(c)(21) black
lung trust, trustee, or disqualified person
A pay stub, Form W-2, or other
•
document showing a contribution to a
donee organization, together with
services include:
2023 Instructions for Form 990
95
liable for section 4951 or 4952 excise
taxes will use Form 6069 to report and
pay sections 4951 and 4952 excise
taxes.
Section 501(c)(21) Black Lung
Trusts
Form 990-BL
Form 990
Heading
FMV of the
Part X,
Check the
In general, a section 501(c)(21) trust
will complete Form 990 in the same
manner as any other organization
required to file Form 990, including
(without limitation) schedules or forms
identified upon completion of Part IV,
Checklist of Required Schedules; or Part
V, Statements Regarding Other IRS
Filings and Tax Compliance.
Area
trust's assets Balance
box at the top
of Part X and
include a note
on
at the
Sheet
beginning of
the operator's
tax year
Schedule O
(Form 990)
providing the
FMV at the
beginning of
the operator’s
year within
which the
within which
the trust's tax
year begins.
The following chart is intended to help
section 501(c)(21) black lung trusts
identify some of the key lines on Form
990 that correspond with certain lines of
Form 990-BL, especially a heading block
item and in Part I.
trust’s year
begins.
Part I,
Contributions Part VIII,
Enter the total
Analysis of received
Revenue
Statement of contributions
under section Revenue,
192 from the
received
and
Line 1f
under section
192 from the
coal mine
Expenses, coal mine
Line 1
operator who
established
the trust.
operator who
established
the trust.
Part I,
Interest on
Part VIII,
Investment
Analysis of securities of
Statement of income
Revenue
and
Expenses, local
Lines 2a
and 2b
the U.S.,
state, and
Revenue,
Line 3
(including
dividends,
interest, and
other similar
amounts).
governments,
described in
section 501(c)
(21)(D)(ii).
Part I,
Contributions Part IX,
Grants and
Analysis of to the Federal Statement of other
Revenue
and
Expenses, Trust Fund.
Line 4
Black Lung
Disability
Functional
Expenses,
Line 1
assistance to
domestic
organizations
and domestic
governments.
(Detail
reported on
Schedule I
(Form 990).)
Part I,
Premiums
Analysis of for insurance
Revenue
and
to cover
liabilities
Expenses, described in
Line 5
section
501(c)(21)(A)
(i)(I).
Part I,
Other
Part IX,
Grants and
Analysis of payments to
Statement of other
Revenue
and
Expenses, eligible coal
Line 6
or for the
benefit of
Functional
Expenses,
Line 2
assistance to
domestic
individuals.
(Detail
miners,
retired
miners, or
beneficiaries.
reported on
Schedule
I
(Form 990).)
96
2023 Instructions for Form 990
Index
Appendix I, Use of Form 990 or
990-EZ To Satisfy State Reporting
Requirements 92
CEO 21
CEO, executive director, or top
$10,000–per-related organization
exception 28
Children 2
Appendix K, Reporting Information for
Section 501(c)(21) Black Lung
A
Applicable tax-exempt
Accountant 50
Accounting:
Application for recognition of
exemption 90
Fees 45
Club 17
Period 5
Accrual 6
Code(s) 3
Collectibles 55
Collections of works of art, historical
treasures, and other similar
assets 55
Assessments 38
Asset(s):
Activities 11
College 78
Activities conducted outside the
Net 49
Committee 4
Reasonable 87
Activities outside the United
Attachments 8
States 53
Address:
Attorney 11
Website 10
Administrative 19
Advertising 46
Reportable 27
Compilation (compiled financial
Expenses 46
B
Payments 46
Purchases 46
Allocations:
Bank or financial institution trustee
Exception 31
Benefits:
Contemporaneous 87
Contracts 88
Disregarded 31
Employee 45
Membership 40
Appendix:
Government 38
Board designated endowment
(quasi) 12
Noncash 39
Appendix A, Exempt Organizations
Bonus 88
Appendix B, How to Determine
Whether an Organization's Gross
Receipts Are Normally $50,000 (or
Nondeductible 16
Contributor 2
Appendix C, Special Gross Receipts
Tests for Determining Exempt
Status of Section 501(c)(7) and
Controlling organization:
Appendix D, Public Inspection of
Returns 78
C
Controlling organization under
Appendix E, Group Returns—
Reporting Information on Behalf of
Copies 7
Appendix F, Disregarded Entities and
Joint Ventures—Inclusion of
Corporation 10
Appendix G, Section 4958 Excess
Cash 47
Appendix H, Forms and Publications
Instructions for Form 990
97
EIN 60
Initiation 78
D
Employee 61
Legal 45
Nonqualified 32
Employee(s) 27
Membership 77
Registration 39
Employer identification number (EIN):
Equipment 48
Qualified 31
Defined contribution plan:
Qualified 31
Five highest compensated
employees 26
Depreciation 47
Estates 37
Churches 89
Foreign 15
Accounts 16
Disclosure 16
Organization 4
Correction 89
Statement 16
Form 8976, Notice of Intent to
Operate Under Section 501(c)
(4) 91
Disclosure of excess business
holdings 16
Forms:
Dissolution 84
Form 1023-EZ, Streamlined
Application for Recognition of
Exemption Under Section 501(c)(3)
Expenses 40
Form 1023, Application for
Recognition of Exemption Under
Distributions 45
Dividends 39
Form 1024-A, Application for
Recognition of Exemption under
Section 501(c)(4) of the Internal
Document retention and destruction
policy 24
Direct 41
Donations 38
Functional 42
Form 1024, Application for
Recognition of Exemption Under
Fundraising 41
Occupancy 46
Form 1040-SR, U.S.Income Tax
Of use of materials, equipment or
facilities 38
Form 1040, U.S. Individual Income Tax
Return 91
Political 12
Postage 46
Form 1041, U.S. Income Tax Return
Donor advised fund(s):
Printing 46
Shipping 46
Form 1065, U.S. Return of Partnership
Income 4
Supplies 46
Form 1096, Annual Summary and
Transmittal of U.S. Information
Returns 91
Exceptions 89
Grants 86
F
Form 1120–POL, U.S. Income Tax
Return for Certain Political
Organizations 91
Facility/facilities 11
Family:
Donor contributions:
Acknowledgment 16
Form 1128, Application To Adopt,
Form 2848, Power of Attorney and
Donor-Restricted Endowment
fund 60
Family member, family
Form 3115, Application for Change in
Dues 38
relationship 62
Club 32
Form 3520, Annual Return To Report
Transactions with Foreign Trusts
and Receipt of Certain Foreign
Gifts 91
Federated fundraising
E
organizations 44
Form 4506–A, Request for a Copy of
Exempt or Political Organization
Fees 45
Accounting 45
Copies 80
Form 4506, Request for Copy of Tax
Return 91
Disregarded 87
Fundraising 45
98
2023 Instructions for Form 990
Form 4562, Depreciation and
Amortization 91
Form 8940, Request for Miscellaneous
Determination, Request for
Government:
Agency 39
Miscellaneous Determination,
under Section 507, 509(a), 4940,
4942, 4945, and 6033 of the
Form 4720, Return of Certain Excise
Taxes Under Chapters 41 and 42 of
Contracts 39
Contributions 38
Fees 39
Form 5471, Information Return of U.S.
Persons With Respect to Certain
Form 926, Return by a U.S. Transferor
of Property to a Foreign
Corporation 90
Official 46
Organization 4
Form 5500, Annual Return/Report of
Form 940, Employer's Annual Federal
Unemployment (FUTA) Tax
Return 90
Contributions 11
Payable 49
Form 5578, Annual Certification of
Racial Nondiscrimination for a
Private School Exempt From
Form 941, Employer's Quarterly
Form 943, Employer's Annual Tax
Return for Agricultural
Employees 90
Form 5768, Election/Revocation of
Election by an Eligible Section
501(c)(3) Organization To Make
Expenditures To Influence
Legislation 91
Form 990-PF, Return of Private
Foundation or Section 4947(a)(1)
Trust Treated as Private
Foundation 4
Receivable 47
Form 7004, Application for Automatic
Extension of Time to File Certain
Business Income Tax, Information,
Form 990-T, Exempt Organization
Grants and other assistance outside
Form 720, Quarterly Federal Excise
Form 990–EZ, Short Form Return of
Organization Exempt From Income
Figuring 77
Form 8038 series, Tax Exempt
Bonds 91
Form 990–N, Electronic Notice
(e-Postcard) for Tax-Exempt
Organizations Not Required To File
Form 8274, Certification by Churches
and Qualified Church-Controlled
Organizations Electing Exemption
from Employer Social Security and
Gross receipts test:
$5,000 77
Form SS-4, Application for Employer
$50,000 77
Form 8282, Donee Information
Return 91
Form W-2, Wage and Tax
Statement 90
Form 8283, Noncash Charitable
Contributions 91
Foundations 27
Form 8300, Report of Cash Payments
Over $10,000 Received in a Trade
Nontaxable 87
Form 8328, Carryfoward Election of
Unused Private Activity Bond
Fundraising 43
H
Heading 8
Form 8718, User Fee for Exempt
Organization Determination Letter
Request 91
Activities 13
Form 8821, Tax Information
Authorization 91
Hospital 83
Form 8822-B, Change of Address or
Events 38
Hospital (or cooperative hospital
Form 8868, Application for Extension
of Time To File an Exempt
Organization Return or Excise
Taxes Related to Employee Benefit
Expenses 43
Fees 45
Records for tax deductible
contributions 7
Funds 50
Form 8870, Information Return for
Transfers Associated With Certain
I
Form 8871, Political Organization
Income:
G
Investment 40
Form 8872, Political Organization
Report of Contributions and
Expenditures 91
GAAP 62
Rental 39
Form 8886–T, Disclosure by
Tax-Exempt Entity Regarding
Prohibited Tax Shelter
Generally accepted accounting
principles 11
Generally accepted accounting
Independent voting member of
principles/GAAP 63
Form 8886, Reportable Transaction
Goods 41
Form 8899, Notice of Income From
Governance 85
Insurance 47
2023 Instructions for Form 990
99
Miscellaneous 6
Expenses 47
Policies:
Mission 4
Document retention and
destruction 24
Mortgage 46
Nondiscrimination 91
Whistleblower 24
Mutual or cooperative electric
companies 17
Securities 40
N
Political:
Expenses 83
Inventory 42
Penalties 78
Investment 40
Net Assets without Donor
Restrictions 67
Committee 20
Dividend 40
Income 78
Interest 40
Management 22
Program-related 40
Rents 40
Premiums 78
Nonqualified deferred
compensation 67
Investments 48
Printing 46
Nonqualified defined contribution
J
K
O
Occupancy 46
L
Program service accomplishments,
Expense 46
Land 48
Offices 79
Affiliated 86
Legislation 66
Liquidation 83
Loans:
Medicaid 39
Medicare 39
Receivable 48
Organizations:
Lobbying 66
Activity/Activities 12
Expenses 83
Unrelated trade or business
activities 39
Grassroots 45
Lotteries 41
Ownership 14
P
PTIN 10
Partnership 84
Pub. 3079, Tax-Exempt Organizations
M
Maintaining offices, employees, or
Payables 49
agents 66
Payments:
Management 84
Cash 91
Publications 15
Management and general
Compensation 87
Nonfixed 88
expenses 43
Medicaid 39
Severance 45
Pub. 15–A, Employer's Supplemental
Medicare 90
Pub. 15, (Circular E) Employer's Tax
Guide 91
Meetings 46
Pub. 1771, Charitable Contributions–
Substantiation and Disclosure
Requirements 92
Membership 46
Perjury 7
Assessments 38
Pub. 1779, Independent Contractor or
Employee 37
Benefits 40
Pub. 1828, Tax Guide for Churches
100
2023 Instructions for Form 990
Pub. 3079, Tax-Exempt Organizations
Relationship 40
Disclosure of transactions and
relationships 19
Pub. 3386, Tax Guide for Veterans
Organizations 92
Section 501(c)(4):
Section 501(c)(5):
Reasonableness, rebuttable
Pub. 3833, Disaster Relief, Providing
Assistance Through Charitable
Organizations 92
Receivable 14
Section 501(c)(6):
Account 47
Pub. 4220, Applying for 501(c)(3)
Grants 47
Pledges 47
Securities 48
Pub. 4221–PC, Compliance Guide for
Reconciliation 6
Recordkeeping 7
Reimbursement:
Pub. 4221–PF, Compliance Guide for
Pub. 4302, A Charity's Guide to
Pub. 4303, A Donor's Guide to Vehicle
Donation 92
Security/securities 71
Security/Securities 41
Pub. 463, Travel, Entertainment, Gift,
Sequencing list to complete the form
Rent/rental 40
Pub. 525, Taxable and Nontaxable
Income 92
Shipping 46
Expense 40
Pub. 538, Accounting Periods and
Methods 92
Income 39
Signature 10
Pub. 557, Tax-Exempt Status for Your
Organization 92
Reporting information from third
parties 8
Pub. 561, Determining the Value of
Requirements for a properly
Pub. 598, Tax on Unrelated Business
Income of Exempt
Research 43
Significant disposition of net
assets 72
Organizations 92
Social security:
Pub. 892, How to Appeal an IRS
Pub. 946, How To Depreciate
Property 92
Deferred 49
Gross 15
Solicitations of nondeductible
Pub. 947, Practice Before the IRS and
contributions 16
Royalties 40
State:
Pull-tabs 42
Statement(s) 92
Q
Qualified conservation
S
contribution 69
Salaries 45
Sales 42
Qualified defined contribution
plan 31
Revenue 37
Sarbanes-Oxley 24
Savings 47
Qualified state or local political
Sweepstakes 41
Scholarships 12
Quasi-endowment 70
Quid pro quo contribution:
School 71
Section 4958, excise taxes:
Section 501(c)(21):
R
Raffles 41
T
Reasonable:
Amount 79
Belief 81
Burden 79
Cause 7
Compensation 20
Estimate 10
Fee 79
Territory of the United States:
Territory organization:
Knowledge 86
2023 Instructions for Form 990
101
Voluntary employees' beneficiary
association 9
Uniform Guidance, 2 C.F.R. Part 200,
Uniform Prudent Management of
Institutional Funds Act
(UPMIFA) 49
Voting member of the governing
body 74
Voting member of the governing
body/board 20
University/universities 12
Income 37
W
Wages 45
Trust fund recovery penalty:
Penalties 92
Withholding:
Revenue 40
Activities 39
Institutional 26
Backup 15
U
Y
U.S. Territory:
V
102
2023 Instructions for Form 990