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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

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  • Form 990 - Tulumaksust vabastatud organisatsiooni tagastamine
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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  
Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76  
Contents  
Page  
Appendix B. How To Determine Whether an  
Organization's Gross Receipts Are Normally  
$50,000 (or $5,000) or Less . . . . . . . . . . . . . . . . 77  
Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2  
Phone Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2  
Email Subscription . . . . . . . . . . . . . . . . . . . . . . . . . . 2  
General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 2  
A. Who Must File . . . . . . . . . . . . . . . . . . . . . . . . 2  
Appendix C. Special Gross Receipts Tests for  
Determining Exempt Status of Section 501(c)  
(7) and 501(c)(15) Organizations . . . . . . . . . . . . 77  
B. Organizations Not Required To File Form  
Appendix D. Public Inspection of Returns . . . . . . . . . 78  
990 or 990-EZ . . . . . . . . . . . . . . . . . . . . . . . . 4  
Appendix E. Group Returns—Reporting  
C. Sequencing List To Complete the Form  
Information on Behalf of the Group . . . . . . . . . . . 82  
and Schedules . . . . . . . . . . . . . . . . . . . . . . . . 4  
Appendix F. Disregarded Entities and Joint  
D. Accounting Periods and Methods . . . . . . . . . . . 5  
E. When, Where, and How To File . . . . . . . . . . . . 6  
F. Extension of Time To File . . . . . . . . . . . . . . . . . 6  
G. Amended Return/Final Return . . . . . . . . . . . . . 6  
H. Failure-To-File Penalties . . . . . . . . . . . . . . . . . 6  
I. Group Return . . . . . . . . . . . . . . . . . . . . . . . . . . 7  
Ventures—Inclusion of Activities and Items . . . . . 83  
Appendix G. Section 4958 Excess Benefit  
Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . 85  
Appendix H. Forms and Publications To File or  
Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90  
Appendix I. Use of Form 990 or 990-EZ To Satisfy  
State Reporting Requirements . . . . . . . . . . . . . . 92  
J. Requirements for a Properly Completed  
Appendix J. Contributions . . . . . . . . . . . . . . . . . . . . 93  
Form 990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7  
Appendix K. Reporting Information for Section  
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 8  
Heading. Items A–M . . . . . . . . . . . . . . . . . . . . . . 8  
Part I. Summary . . . . . . . . . . . . . . . . . . . . . . . . 10  
Part II. Signature Block . . . . . . . . . . . . . . . . . . . 10  
501(c)(21) Black Lung Trusts . . . . . . . . . . . . . . . 95  
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97  
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  
were published, go to IRS.gov/Form990.  
Accomplishments . . . . . . . . . . . . . . . . . . . . . 11  
Part IV. Checklist of Required Schedules . . . . . . 12  
Part V. Statements Regarding Other IRS  
Reminders  
Filings and Tax Compliance . . . . . . . . . . . . . . 15  
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  
Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . 19  
Part VII. Compensation of Officers, Directors,  
Trustees, Key Employees, Highest  
Compensated Employees, and  
Independent Contractors . . . . . . . . . . . . . . . . 25  
Part VIII. Statement of Revenue . . . . . . . . . . . . . 37  
Part IX. Statement of Functional Expenses . . . . . 42  
Part X. Balance Sheet . . . . . . . . . . . . . . . . . . . . 47  
Part XI. Reconciliation of Net Assets . . . . . . . . . . 50  
Part XII. Financial Statements and Reporting . . . 50  
Business Activity Codes . . . . . . . . . . . . . . . . . . . . . 52  
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53  
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  
Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75  
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  
!
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  
guidance on the recommended order for completing the form  
and applicable statements.  
Throughout these instructions, “the organization” and the  
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  
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.  
Photographs of Missing Children  
The Internal Revenue Service is a proud partner with the  
Photographs of missing children selected by the Center may  
appear in instructions on pages that would otherwise be blank.  
You can help bring these children home by looking at the  
photographs and calling 1-800-THE-LOST (1-800-843-5678) if  
you recognize a child.  
The examples appearing throughout the Instructions for Form  
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  
separately from these instructions.  
Organizations that have $1,000 or more for the tax year  
of total gross income from all unrelated trades or  
!
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:  
2
Instructions to Form 990  
               
Organizations described in section 501(c)(3) (other than  
2. The exclusively religious activities of a religious order; or  
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  
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);  
3
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.  
!
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,  
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.  
4
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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“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.  
5
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.  
TIP  
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,  
go to IRS.gov/EOefile.  
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  
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  
exemption. For details, go to IRS.gov/EO.  
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.  
7
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  
complete returns, go to IRS.gov/Charities.  
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.  
TIP  
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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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  
TIP  
TIP  
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  
TIP  
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  
TIP  
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.  
IRS.gov/PTIN or by filing Form W-12, IRS Paid Preparer Tax  
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  
!
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  
about applying for a PTIN online, go to IRS.gov/TaxPros.  
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,  
and return preparation.  
10  
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  
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.  
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  
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  
TIP  
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  
TIP  
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.  
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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  
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  
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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  
website at IRS.gov/OrderForms. Also see Appendix H.  
All tax-exempt organizations must pay estimated taxes  
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for their unrelated business income if they expect their  
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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.  
15  
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.  
See FINCEN.gov for more information.  
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,  
go to IRS.gov.  
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.  
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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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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  
TIP  
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  
TIP  
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.  
19  
2023 Instructions for Form 990  
         
relating to charities, go to IRS.gov/Charities and click on  
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.  
TIP  
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).  
26  
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  
TIP  
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  
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  
Chart, accurately describe the activity, enter “900099.Use of  
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.  
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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  
for future editions. You can send us comments through IRS.gov/  
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.  
2023 Instructions for Form 990  
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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  
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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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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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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).  
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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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).  
70  
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.  
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.  
2023 Instructions for Form 990  
71  
             
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.  
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.  
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  
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Tax Statements.  
implemented safeguards that are  
reasonably calculated to prevent excess  
benefit transactions.  
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Whether the excess benefit transaction  
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has been corrected, or the organization  
has made good faith efforts to seek  
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who benefited from the excess benefit  
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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.  
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Schedule E (Form 990). Schools.  
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Schedule F (Form 990). Statement of  
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Getting answers to your tax ques-  
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Tax Return for Agricultural Employees.  
Schedule I (Form 990). Grants and  
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Form 990-T. Exempt Organization  
Business Income Tax Return. Filed  
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Form 990-EZ, see Part V, line 35, and its  
instructions.  
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Schedule J (Form 990). Compensation  
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Form 1023. Application for Recognition  
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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.  
Go to IRS.gov/Forms to view, download,  
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  
$10,000–per-item exception 28  
CEO, executive director, or top  
$10,000–per-related organization  
management official 55  
exception 28  
Appendix J, Contributions 93  
Certified historic structure 55  
Change of address 91  
Changes in net assets 92  
Charitable risk pools 3  
Child care organizations 3  
Children 2  
35% controlled entity 17, 53  
Appendix K, Reporting Information for  
Section 501(c)(21) Black Lung  
Trusts 95  
A
Applicable tax-exempt  
Accountable plan 20, 53  
Accountant 50  
Accounting:  
organization 53, 85  
Application for recognition of  
Church 3, 55  
exemption 90  
Fees 45  
Church-affiliated organization 4  
Closely held stock 55  
Club 17  
Application pending 9  
Art 12, 53  
Period 5  
Accounting fees 45  
Accounting period 5, 8  
Accounts payable 49  
Accounts receivable 48  
Accrual 6  
Articles of incorporation 22  
ASC 2016–14 53  
ASC 740 53  
Code(s) 3  
Collectibles 55  
Collections of works of art, historical  
treasures, and other similar  
assets 55  
ASC 958 12, 53  
Assessments 38  
Asset(s):  
Activities 11  
College 78  
Activities conducted outside the  
Net 49  
Committee 4  
United States 53  
Total 49  
Compensation 13, 25, 36, 55, 82  
Current officers 45  
Disqualified persons 26, 45  
Former officers 25  
Other persons 26  
Reasonable 87  
Activities outside the United  
Assistance to individuals 44  
Attachments 8  
States 53  
Address:  
Attorney 11  
Change in 9  
Audit 54, 84  
Website 10  
Audit committee 20, 54  
Audit guides 92  
Audited financial statements 12, 54  
Automatic revocation 7  
Address Change 8  
Administrative 19  
Advance ruling period 4  
Advertising 46  
Reportable 27  
Table 32  
Compilation (compiled financial  
statements) 13, 55  
Affiliate/affiliates 46, 84  
Expenses 46  
B
Completing the heading 8  
Backup withholding 15  
Balance sheet 47  
Conflict of interest policy 56  
Conflicts of interest policy 22, 24  
Conservation easement 12, 56  
Payments 46  
Purchases 46  
Bank account 15  
State or national organizations 46  
Affiliated organizations 86  
Allocations:  
Bank or financial institution trustee  
Consolidated financial statement 12,  
Exception 31  
Benefits:  
Contemporaneous 87  
Contracts 88  
Grants, and 11  
Disregarded 31  
Employee 45  
Members 44, 87  
Membership 40  
Bingo 42, 54  
Alternate test 78  
Amended Return 9  
Description of amendment 6  
Name change amendment 6  
Annual information return 79  
Anti-abuse rule 78  
Appendix:  
Contributing employer 63, 71  
Contributions 12, 37, 39, 56  
Disclosure statement 16  
Donation of services 38  
Donor advised funds 86  
Government 38  
Board designated endowment  
(quasi) 12  
Board-designated endowment 54  
Bond issue 40, 54  
Government grants 38  
Membership dues 11, 38  
Noncash 39  
Appendix A, Exempt Organizations  
Reference Chart 76  
Bonds, tax-exempt 49  
Bonus 88  
Appendix B, How to Determine  
Whether an Organization's Gross  
Receipts Are Normally $50,000 (or  
$5,000) or Less 77  
Nondeductible 16  
Book value 48  
Quid pro quo 16  
Books of account 6  
Business activities 39  
Business Activity Codes 52  
Business code 40  
Contributor 2  
Appendix C, Special Gross Receipts  
Tests for Determining Exempt  
Status of Section 501(c)(7) and  
501(c)(15) Organizations 77  
Contributors, Schedule of 39  
Control 14, 57  
Controlled entity 14, 57  
Controlling organization:  
Section 512(b)(13) 3  
Business relationship 21, 54  
Appendix D, Public Inspection of  
Returns 78  
C
Controlling organization under  
Appendix E, Group Returns—  
Reporting Information on Behalf of  
the Group 82  
section 512(b)(13) 58  
Calendar year 5  
Cooperative service organizations 3  
Copies 7  
Capital contributions 17  
Capital gains 40  
Appendix F, Disregarded Entities and  
Joint Ventures—Inclusion of  
Activities and Items 83  
Core form 58  
Capital stock accounts 50  
Capital surplus 50  
Corporation 10  
Appendix G, Section 4958 Excess  
Benefit Transactions 85  
Credit counseling services 58  
Current year 58  
Cash 47  
Cash contributions 54  
Cash receipts and disbursements 6  
Central organization 7, 55  
Appendix H, Forms and Publications  
to File or Use 90  
Instructions for Form 990  
97  
 
EIN 60  
Government agencies 39  
Initiation 78  
D
Email subscription 2  
Employee 61  
Legal 45  
De minimis fringe benefit 87  
Debt management plan services 58  
Defeasance escrow 40, 58  
Deferred charges 48  
Deferred compensation 58  
Deferred revenue 49  
Defined benefit plan 31  
Nonqualified 32  
Employee benefit plan 4  
Employee benefits 45  
Employee(s) 27  
Membership 77  
Registration 39  
Figuring gross receipts 77  
FIN 48 83  
Employees, key 27  
Employer identification number (EIN):  
Disregarded entities 84  
Section 501(c)(9) organizations 9  
Endowment fund 12, 61  
Endowment funds 12  
EO Determinations 11  
Equipment 48  
FIN 48 (ASC 740) 62  
Final return 6, 9  
Financial account 15  
Financial statements 62  
Fiscal year 5, 62  
Qualified 31  
Defined contribution plan:  
Qualified 31  
Five highest compensated  
employees 26  
Dependent care assistance 32  
Depreciation 47  
Fixed payment 88  
Escrow or custodial account 49, 61  
Estates 37  
FMV 14, 18, 19, 22, 37, 38, 40-42, 47,  
Determination letter 3  
Direct expenses 41  
50, 59, 72, 86, 88, 89, 94-96  
Estimate, reasonable 10  
Excess benefit transaction 61, 85-87  
Churches 89  
Foreign 15  
Director 13, 58  
Accounts 16  
Director or trustee 26, 58  
Disclosure 16  
Organization 4  
Correction 89  
Foreign government 62  
Foreign individual 62  
Foreign organization 62  
Donor advised funds 89  
Excess payment 89  
Excise tax 88  
Conflict of interest 24  
Disqualified person(s) 21  
Excess business holdings 16  
Statement 16  
Form 8976, Notice of Intent to  
Operate Under Section 501(c)  
(4) 91  
Insufficient payment 89  
Revenue sharing transactions 89  
Revocation of exemption 89  
Section 4958 85  
Disclosure of excess business  
holdings 16  
Forms:  
Disqualified person 58  
Disqualified persons 86  
Disregarded benefits 31, 32  
Disregarded entities 8, 28, 83  
Disregarded entity or entities 59  
Dissolution 84  
FinCEN Form 114 91  
Excess business holdings 16  
Excise taxes 88  
Form 1023-EZ, Streamlined  
Application for Recognition of  
Exemption Under Section 501(c)(3)  
of the Internal Revenue Code. 90  
Executive director 24  
Exempt bond 61  
Exempt function 39  
Exempt organizations, types of 76  
Exempt purposes 11, 22, 42  
Expenses 40  
Form 1023, Application for  
Recognition of Exemption Under  
Section 501(c)(3) 90  
Distributions 45  
Dividends 39  
Form 1024-A, Application for  
Recognition of Exemption under  
Section 501(c)(4) of the Internal  
Revenue Code 91  
Document retention and destruction  
policy 24  
Allocating indirect 43  
Direct 41  
Domestic government 59  
Domestic individual 59  
Domestic organization 60  
Donations 38  
Functional 42  
Form 1024, Application for  
Recognition of Exemption Under  
Section 501(a) 90  
Fundraising 41  
Indirect expenses 43  
Management and general 43  
Occupancy 46  
Of services 38  
Form 1040-SR, U.S.Income Tax  
Return for Seniors 91  
Of use of materials, equipment or  
facilities 38  
Form 1040, U.S. Individual Income Tax  
Return 91  
Political 12  
Of vehicles 16  
Postage 46  
Form 1041, U.S. Income Tax Return  
for Estates and Trusts 91  
Donor advised fund 60  
Donor advised fund(s):  
Disqualified person 86  
Donor advisor 17  
Printing 46  
Program service 42, 47  
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  
Telephone 46  
Excess benefit transaction 86  
Grants 86  
Extension of time to file 6  
Form 1098 series 91  
Sponsoring organization 3  
Donor advisor 60  
F
Form 1120–POL, U.S. Income Tax  
Return for Certain Political  
Organizations 91  
Facility/facilities 11  
Facts and circumstances 81  
Fair market value (FMV) 61  
Family:  
Donor contributions:  
Acknowledgment 16  
Donor-Imposed Restriction 60  
Form 1128, Application To Adopt,  
Change or Retain a Tax Year 91  
Form 2848, Power of Attorney and  
Declaration of Representative 91  
Donor-Restricted Endowment  
Family member 86  
fund 60  
Family member, family  
Form 3115, Application for Change in  
Accounting Method 91  
Dues 38  
relationship 62  
Club 32  
FASB ASC 958 37, 49  
Form 3520, Annual Return To Report  
Transactions with Foreign Trusts  
and Receipt of Certain Foreign  
Gifts 91  
Membership 40, 46  
Paid to affiliates 46  
Federal unemployment tax (FUTA) 90  
Federated fundraising agencies 38  
Federated fundraising  
E
organizations 44  
Form 4506–A, Request for a Copy of  
Exempt or Political Organization  
IRS Form 91  
e-Postcard (see also Form 990-N) 77  
Economic benefit 86  
Fees 45  
Accounting 45  
Copies 80  
Form 4506, Request for Copy of Tax  
Return 91  
Disregarded 87  
Nontaxable fringe benefits 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  
Internal Revenue Code 91  
Form 4720, Return of Certain Excise  
Taxes Under Chapters 41 and 42 of  
the Internal Revenue Code 91  
Contracts 39  
Contributions 38  
Fees 39  
Form 5471, Information Return of U.S.  
Persons With Respect to Certain  
Foreign Corporations 91  
Grants 38, 43  
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  
Employee Benefit Plan 91  
Form 940, Employer's Annual Federal  
Unemployment (FUTA) Tax  
Return 90  
Government official 63  
Governmental issuer 40, 63  
Governmental unit 49, 63  
Governmental Unit 63  
Grants 11, 37, 44  
Allocations, and 11  
Contributions 11  
Government contributors 38  
Payable 49  
Form 5578, Annual Certification of  
Racial Nondiscrimination for a  
Private School Exempt From  
Federal income Tax. 91  
Form 941, Employer's Quarterly  
Federal Tax Return 90  
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,  
and Other Returns 91  
Grants and other assistance 63  
Form 990-T, Exempt Organization  
Business Income Tax Return 90  
Grants and other assistance outside  
the United States 13  
Form 720, Quarterly Federal Excise  
Tax Return 90  
Form 990–EZ, Short Form Return of  
Organization Exempt From Income  
Tax 10  
Gross proceeds 63  
Gross receipts 63, 77  
$50,000 or less 77  
Acting as agent 77  
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 990 or 990–EZ 3  
Form 8274, Certification by Churches  
and Qualified Church-Controlled  
Organizations Electing Exemption  
from Employer Social Security and  
Medicare Taxes 91  
Gross receipts test:  
$5,000 77  
Form SS-4, Application for Employer  
Identification Number 91  
$50,000 77  
Form 8282, Donee Information  
Return 91  
Form W-2, Wage and Tax  
Statement 90  
Gross rents 40  
Gross revenue 15  
Gross sales price 40  
Group exemption 63, 80  
Central/parent organization 80  
Group return 64, 82  
Form 8283, Noncash Charitable  
Contributions 91  
Forms and publications 15  
Foundations 27  
Fringe benefits 87  
De minimis 87  
Form 8300, Report of Cash Payments  
Over $10,000 Received in a Trade  
or Business 91  
Nontaxable 87  
Form 8328, Carryfoward Election of  
Unused Private Activity Bond  
Volume Cap 91  
Functional expenses 42  
Allocating indirect 43  
Fundraising 43  
H
Heading 8  
Form 8718, User Fee for Exempt  
Organization Determination Letter  
Request 91  
Health benefits 31  
Helpful hints 2  
Management and general 43  
Program service 42  
Fund Balances 49, 50  
Fundraising 38, 62  
Activities 13  
Highest compensated employee 64,  
Form 8821, Tax Information  
Authorization 91  
Historical treasure 12, 64  
Hospital 83  
Form 8822-B, Change of Address or  
Responsible Party—Business 91  
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  
Plans 6, 91  
Expenses 43  
service organization) 64  
Fees 45  
Hospital organization 64  
Hospital/hospital facility 64  
Hours per week 29  
Records for tax deductible  
contributions 7  
Fundraising activities 62  
Fundraising events 41, 62  
Funds 50  
Household goods 64  
Form 8870, Information Return for  
Transfers Associated With Certain  
Personal Benefit Contracts 91  
I
Form 8871, Political Organization  
Notice of Section 527 Status 91  
Income:  
G
Exempt function 11  
Investment 40  
Form 8872, Political Organization  
Report of Contributions and  
Expenditures 91  
GAAP 62  
Gaming 42, 63  
Rental 39  
GEN (Group exemption number) 10  
Unrelated business 15  
Incomplete return 7  
Independent contractor 37, 64  
Form 8886–T, Disclosure by  
Tax-Exempt Entity Regarding  
Prohibited Tax Shelter  
Transaction 91  
Generally accepted accounting  
principles 11  
Generally accepted accounting  
Independent voting member of  
principles/GAAP 63  
Form 8886, Reportable Transaction  
Disclosure Statement 91  
governing body 20, 65  
Gifts 37, 39  
Indoor tanning services 18  
Information return 79  
Information technology 45, 46  
Initial contract 65, 88  
Instant bingo 42, 65  
Goods 41  
Form 8899, Notice of Income From  
Donated Intellectual Property 91  
Goods or services 41  
Goods sold, cost of 42  
Governance 85  
Governing body 63, 84  
Governing documents 22  
Institutional trustee 26, 65  
Insurance 47  
2023 Instructions for Form 990  
99  
Insurance contract 78  
Integrated auxiliary 3  
Intellectual property 16  
Interest 40, 46  
Miscellaneous 6  
Expenses 47  
Pledges receivable 47  
Policies:  
Mission 4  
Conflicts of interest 22  
Mission society 4  
Money market funds 47  
Document retention and  
destruction 24  
Mortgage 46  
Joint venture 25  
Nondiscrimination 91  
Whistleblower 24  
Tax-exempt 18  
Mutual or cooperative electric  
companies 17  
Interest income 39, 40  
Notes and loans receivable 40  
Securities 40  
N
Political:  
Expenses 83  
Interested persons 84  
Inventory 42  
Net assets 49  
Political campaign activities 68  
Political organization 4  
Penalties 78  
Net Assets with donor restrictions 67  
Investment 40  
Net Assets without Donor  
Restrictions 67  
Committee 20  
Public inspection 78  
Section 527 3  
Noncash contribution 39  
Dividend 40  
Noncash contributions 67  
Nonexempt charitable trust 67  
Nonfixed payments 88  
Income 78  
State or local 3  
Interest 40  
Political subdivision 68  
Postage cost 79  
Management 22  
Program-related 40  
Rents 40  
Nonprofit health insurance issuer 4  
Power of attorney 91  
Premiums 78  
Nonqualified deferred  
compensation 67  
Savings and temporary cash 47  
Investments 48  
Nonqualified defined benefit plan 32  
Prepaid expenses 48  
Principal officer 68  
Printing 46  
Nonqualified defined contribution  
plan 32, 34  
J
Nontaxable fringe benefit 87  
Notes receivable 48  
Private business use 68, 85  
Private foundation 68, 85  
Privileged relationship 21  
Proceeds 40, 68  
Joint costs 47  
Joint venture 65, 84  
Number of employees 84  
Nursing homes 39  
K
Professional fundraising services 45,  
Key employee 27, 66  
O
Program service 11  
Occupancy 46  
L
Program service accomplishments,  
Expense 46  
statement of 11  
Land 48  
Officer 26, 67  
Program service expenses 42  
Program service revenue 39  
Government agency 39  
Insurance premiums 39  
Interest income 40  
Late filing 7  
Offices 79  
Legal fees 45  
“On behalf of” issuer 67  
Ordinary course of business 21  
Organization manager 67, 89  
Organization(s) 4, 89  
Affiliated 86  
Legislation 66  
Liabilities, total 49  
Liquidation 83  
List of states 6  
Loans:  
Medicaid 39  
Medicare 39  
Form of 10  
Membership fees 40  
Receivable 48  
Not required to file 4  
Organizational documents 82  
Organizations:  
Program-related investments 39  
Rental income 39  
Lobbying 66  
Activity/Activities 12  
Expenses 83  
Section 501(c)(9) organization 39  
Foreign countries, in 4  
Other assets 48  
Unrelated trade or business  
activities 39  
Grassroots 45  
In-house expenditures 45  
Joint ventures 84  
Lobbying activities 66  
Lobbying expenditures 83  
Local governmental unit 49  
Lotteries 41  
Other compensation 28  
Ownership 14  
Program-related investment 39, 68  
Prohibited tax shelter transactions 16  
Proxy tax 12  
P
PTIN 10  
Paid preparer 10  
Paid-in capital 50  
Paperwork Reduction Act Notice 50  
Partnership 84  
Pub. 3079, Tax-Exempt Organizations  
and Gaming 63  
Public charity 68, 83  
Public Inspection 78  
Public interest law firm 11  
Public support 90  
M
Maintaining offices, employees, or  
Payables 49  
agents 66  
Payments:  
Management 84  
Cash 91  
Publications 15  
Management and general  
Compensation 87  
Nonfixed 88  
Compliance Checks 92  
Group Exemptions 92  
expenses 43  
Management company 21, 66  
Medicaid 39  
Severance 45  
Pub. 15–A, Employer's Supplemental  
Tax Guide (Fringe Benefits) 92  
To affiliates 46  
Medical research 66, 79  
Medicare 90  
Payroll taxes 45  
Penalties 6, 16  
Pub. 15, (Circular E) Employer's Tax  
Guide 91  
Meetings 46  
Pub. 1771, Charitable Contributions–  
Substantiation and Disclosure  
Requirements 92  
Failure to file 6  
Member of the governing body 20, 66  
Membership 46  
Perjury 7  
Pension plan contributions 45  
Personal benefit contracts 16  
Phone help 2  
Assessments 38  
Pub. 1779, Independent Contractor or  
Employee 37  
Benefits 40  
Pub. 1828, Tax Guide for Churches  
and Religious Organizations 92  
Dues 38, 46  
Photographs of Missing Children 2  
Merger, articles of 8  
100  
2023 Instructions for Form 990  
Pub. 3079, Tax-Exempt Organizations  
and Gaming 92  
Relationship 40  
Disclosure of transactions and  
relationships 19  
Reasonable compensation 70  
Reasonable effort 70  
Pub. 3386, Tax Guide for Veterans  
Organizations 92  
Section 501(c)(4):  
Applicable organization 85  
Section 501(c)(5):  
Reasonableness, rebuttable  
Pub. 3833, Disaster Relief, Providing  
Assistance Through Charitable  
Organizations 92  
presumption of 88  
Receivable 14  
Lobbying expenses 12  
Membership dues 40  
Section 501(c)(6):  
Account 47  
Pub. 4220, Applying for 501(c)(3)  
Tax-Exempt Status 92  
Grants 47  
Pledges 47  
Lobbying expenses 12  
Membership dues 40  
Section 501(c)(7) 17, 84  
Section 501(c)(9) 9  
Section 6033(e) 12  
Securities 48  
Pub. 4221–PC, Compliance Guide for  
501(c)(3) Public Charities 92  
Reconciliation 6  
Reconciliation of net assets 50  
Recordkeeping 7  
Refunding escrow 14, 70  
Refunding issue 70  
Reimbursement:  
Of expenses 20  
Pub. 4221–PF, Compliance Guide for  
501(c)(3) Private Foundations 92  
Pub. 4302, A Charity's Guide to  
Vehicle Donation 92  
Pub. 4303, A Donor's Guide to Vehicle  
Donation 92  
Security/securities 71  
Security/Securities 41  
Pub. 463, Travel, Entertainment, Gift,  
and Car Expenses 92  
Of taxes 87  
Sequencing list to complete the form  
and schedules 4  
Related organization 20, 26, 71  
Religious order 20, 71  
Rent/rental 40  
Pub. 525, Taxable and Nontaxable  
Income 92  
Severance payments 45  
Shipping 46  
Pub. 526, Charitable Contributions 92  
Short accounting period 5, 72  
Short period 72  
Expense 40  
Pub. 538, Accounting Periods and  
Methods 92  
Income 39  
Short year and final returns 31  
Short year and final returns. 32  
Signature 10  
Reportable compensation 13, 71  
Pub. 557, Tax-Exempt Status for Your  
Organization 92  
Reporting information from third  
parties 8  
Pub. 561, Determining the Value of  
Donated Property 92  
Requirements for a properly  
Signature block 10  
completed Form 990 7  
Significant disposition of assets 84  
Pub. 598, Tax on Unrelated Business  
Income of Exempt  
Research 43  
Significant disposition of net  
Retained earnings 50  
Returns and allowances 42  
Revenue 42, 49  
assets 72  
Organizations 92  
Social club 17  
Social security:  
Tax 45  
Pub. 892, How to Appeal an IRS  
Decision on Tax Exempt Status 92  
Pub. 946, How To Depreciate  
Property 92  
Deferred 49  
Gross 15  
Solicitations of nondeductible  
Pub. 947, Practice Before the IRS and  
Power of Attorney 11  
contributions 16  
Program service 39  
SOP 98-2 47  
Special events 41  
Publicly traded securities 48, 69  
Pull tabs 69  
Special events 41  
Sweepstakes, raffles, and lotteries 41  
Revenue-sharing transactions 89  
Review of financial statement 71  
Review of financial statements 13  
Revocation of exemption 89  
Rounding off to whole dollars 7  
Royalties 40  
Specific instructions for Form 990 8  
Sponsoring organization 3, 72  
State:  
Pull-tabs 42  
Purchases from affiliates 46  
Purpose of Form 2  
Filing requirement 92  
Reporting requirements 6  
State of legal domicile 10, 72  
Statement(s) 92  
Q
Qualified 501(c)(3) bond 69  
Activities outside of United States 13  
Audited financial 82  
Qualified conservation  
S
contribution 69  
Salaries 45  
Qualified defined benefit plan 31  
Functional expenses 42  
Position 98–2 47  
Sales 42  
Qualified defined contribution  
Of inventory 39  
plan 31  
Program service accomplishments 11  
Revenue 37  
Sarbanes-Oxley 24  
Savings 47  
Qualified intellectual property 16  
Qualified state or local political  
Subordinate organization 72, 80  
Substantial contributor 61, 86  
Substantial influence 86  
Supported organization 72, 86  
Supporting organization 73, 87  
Sweepstakes 41  
Savings accounts 47  
Schedule of contributors 12  
Scholarships 12  
organization 3, 70  
Quasi-endowment 70  
Quid pro quo contribution:  
Disclosure statement 16  
School 71  
Section 4947(a)(1) trusts 11, 18  
Section 4958 85, 88, 89  
Section 4958, excise taxes:  
Disqualified persons 86  
Organization managers 89  
Section 4968 18, 19  
Section 501(c)(12) 17  
Section 501(c)(15) 3, 77  
Section 501(c)(21):  
black lung trusts 3  
R
Racial nondiscrimination 91  
Raffles 41  
T
Tax shelter transaction 16  
Tax year 27, 73  
Reasonable:  
Amount 79  
Tax-exempt bond 73  
TE/GE EO Determinations 78  
Telephone number 9  
Term endowment 73  
Terminated 9  
Belief 81  
Burden 79  
Cause 7  
Compensation 20  
Effort 21, 31  
Estimate 10  
Fee 79  
black-lung trust 95  
Territory of the United States:  
Territory 73  
trust 1, 13, 39, 40, 44, 47, 49  
Section 501(c)(3) 3  
Applicable organization 85  
Territory organization:  
U.S. Territory 4  
Knowledge 86  
2023 Instructions for Form 990  
101  
Text message contribution 93  
Top financial official 27, 73  
Top management official 27, 73  
Total assets 49, 73  
Total liabilities 49  
Uncollectible pledges 37  
Voluntary employees' beneficiary  
association 9  
Uniform Guidance, 2 C.F.R. Part 200,  
Subpart F 50, 84  
Volunteer 10, 74  
Uniform Prudent Management of  
Institutional Funds Act  
(UPMIFA) 49  
Volunteer exception 31  
Voting member of the governing  
body 74  
Transfers 14  
Unincorporated association 8  
United States 10, 73  
Voting member of the governing  
Personal benefit contracts 16  
To controlled entities 14  
Travel expense 46  
body/board 20  
University/universities 12  
Unrelated business 15, 73  
Income 37  
W
Trust 8  
Wages 45  
Trust fund recovery penalty:  
Penalties 92  
Income tax 79  
Website address 10  
Whistleblower policy 24  
Widely available 81  
Withholding:  
Revenue 40  
Trustee 73  
Unrelated business gross income 73  
Unrelated business income 43, 73  
Unrelated organization 13, 73  
Unrelated trade or business 73  
Activities 39  
Trustee(s) 10, 13, 20, 26  
Institutional 26  
Backup 15  
Tuition assistance 32  
Works of art 12, 74  
U
Gross income 85  
Y
U.S. territory 4, 38, 60, 63, 73  
U.S. Territory:  
Year of formation 10, 74  
V
Territory organization 3  
U.S. Treasury bills 47  
Vehicle donations 93  
102  
2023 Instructions for Form 990