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Form 990 Instruktioner för schema R

Instruktioner för schema R (Form 990), Relaterade organisationer och orelaterade partnerskap

Rev 2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Schedule R  
(Form 990)  
Related Organizations and Unrelated Partnerships  
Section references are to the Internal Revenue  
Overview  
one or more of the following relationships  
to the filing organization.  
Code unless otherwise noted.  
Part I of Schedule R (Form 990) requires  
identifying information on any  
Parent—An organization that controls  
(see definitions of control under Definition  
of Control) the filing organization.  
Future developments. 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.  
organizations that are treated for federal  
tax purposes as disregarded entities of  
the filing organization. Part II requires  
identifying information on related  
Subsidiary—An organization controlled  
by the filing organization.  
Brother/Sister—An organization  
tax-exempt organizations. Part III requires  
identifying information on any related  
organizations that are treated for federal  
tax purposes as partnerships. Part IV  
requires identifying information on any  
related organizations that are treated for  
federal tax purposes as C or S  
controlled by the same person or persons  
that control the filing organization.  
Supporting/Supported—An  
General Instructions  
Note. Terms in bold are defined in the  
Glossary of the Instructions for Form 990,  
Return of Organization Exempt From  
Income Tax.  
organization that is (or claims to be) at any  
time during the organization's tax year (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  
corporations or trusts. Part V requires  
information on transactions between the  
organization and related organizations  
(excluding disregarded entities). Part VI  
requires information on an unrelated  
organization treated as a partnership  
through which the organization conducted  
more than 5% of its activities (as  
Purpose of Schedule  
Schedule R (Form 990) is used by an  
organization that files Form 990 to provide  
information on related organizations, on  
certain transactions with related  
organizations, and on certain unrelated  
partnerships through which the  
organization conducts significant  
activities.  
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.  
described in Part VI).  
Part VII of Schedule R (Form 990) may  
be used to provide additional information  
in response to questions in Schedule R.  
Who Must File  
The chart below sets forth which  
Relationships  
organizations must complete all or a part  
of Schedule R and attach Schedule R to  
Form 990. 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.  
An organization, including a nonprofit  
organization, a stock corporation, a  
Contributing Employer of a VEBA—An  
partnership or limited liability company  
(LLC), a trust, and a governmental unit  
or other government entity, is a related  
organization to the filing organization if it  
stands, at any time during the tax year, in  
employer that makes a contribution or  
contributions to the VEBA during the tax  
year.  
Although a VEBA must report  
sponsoring organizations and contributing  
employers as related organizations,  
sponsoring organizations and contributing  
employers shouldn't report a VEBA as a  
related organization, unless the VEBA is  
related to the sponsoring organization or  
contributing employer in some other  
capacity listed above.  
Type of filer  
IF you answer “Yes” to . . .  
THEN you must complete . . .  
All organizations  
Form 990, Part IV, line 33  
(regarding disregarded entities)  
Schedule R, Part I.  
All organizations  
All organizations  
Form 990, Part IV, line 34  
Schedule R, Parts II, III, IV, and V,  
line 1, as applicable.  
(regarding related organizations)  
VEBA contributing employers and  
sponsoring organizations. If the filing  
organization is a section 501(c)(9) VEBA,  
it must list its sponsoring organizations  
and contributing employers on Schedule R  
(Form 990). The filing organization must  
report all information on its sponsoring  
organizations in Parts II through IV, as  
applicable. However, the filing  
Form 990, Part IV, line 35b  
(regarding payments from or  
transactions with controlled  
entities)  
Schedule R, Part V, line 2.  
Schedule R, Part V, line 2.  
Schedule R, Part VI.  
Section 501(c)(3) organization  
All organizations  
Form 990, Part IV, line 36  
(regarding transfers to exempt  
noncharitable related  
organizations)  
organization is required to list only the  
name of its contributing employers in Parts  
II through IV, and isn't required to report  
any additional information in those parts.  
Form 990, Part IV, line 37  
(regarding conduct of activity  
through unrelated partnership)  
Aug 29, 2023  
Cat. No. 51519M  
The filing organization must also report its  
related transactions with sponsoring  
Control of a partnership or LLC.  
E and F. Organizations E and F are  
One or more persons control a partnership brother/sister related organizations with  
organizations and contributing employers  
in Part V, line 1, and, if applicable, line 2.  
if they own more than 50% of the profits  
interests or capital interests in the  
respect to each other.  
Indirect control. Control can be indirect.  
For example, if the filing organization  
controls Entity A, which in turn controls  
(under the definition of control in these  
instructions) Entity B, the filing  
partnership (including an LLC treated as a  
partnership or disregarded entity for  
federal tax purposes, regardless of the  
designation under state law of the  
Disregarded entity exception.  
Disregarded entities are treated as  
related organizations for purposes of  
reporting on Schedule R (Form 990), Part  
I, but not for purposes of reporting  
transactions with related organizations in  
Part V, or otherwise on Form 990. A  
disregarded entity of an organization  
related to the filing organization is  
generally treated as part of the related  
organization and not as a separate entity.  
See Appendix F in the Instructions for  
Form 990.  
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 LLC 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.  
organization will be treated as controlling  
Entity B. To determine indirect control  
through constructive ownership of a  
corporation, rules under section 318 apply.  
Similar principles apply for purposes of  
determining constructive ownership of  
another entity (a partnership or trust). If an  
entity (X) controls an entity treated as a  
partnership by being one of three or fewer  
partners or members, then an organization  
that controls X also controls the  
Bank trustee exception. If the filing  
organization is a trust that has a bank or  
financial institution trustee that is also the  
trustee of another trust, the filing  
organization isn't required to report the  
other trust as a brother/sister related  
organization on the ground of common  
control by the bank or financial institution  
trustee.  
partnership.  
Example 1. B, an exempt  
organization, wholly owns (by voting  
power) C, a taxable corporation. C holds a  
51% profits interest in D, a partnership.  
Under the principles of section 318, B is  
deemed to own 51% of D (100% of C's  
51% interest in D). Thus, B controls both C  
and D, which are therefore both related  
organizations with respect to B.  
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 will be  
determined in proportion to that person’s  
actuarial interest in the trust as of the end  
of the tax year.  
Definition of Control  
Related organizations. For purposes of  
determining related organizations:  
Example 2. X, an exempt  
organization, owns 80% (by value) of Y, a  
taxable corporation. Y holds a 60% profits  
interest as a limited partner of Z, a limited  
partnership. Under the principles of  
section 318, X is deemed to own 48% of Z  
(80% of Y's 60% interest in Z). Thus, X  
controls Y. X doesn't control Z through X's  
ownership in Y. Y is a related organization  
with respect to X, and (absent other facts)  
Z isn't.  
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 the members who have the  
power to 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 capacity as officers, directors,  
trustees, or agents of the (parent)  
In some situations, a named  
beneficiary may have no determinable  
interest in the trust. For instance, if Trust A  
allows the trustee to distribute income and  
principal in the trustee’s sole discretion for  
10 years to the then-living issue of X, with  
the remainder (if any) to Charity B, then  
Charity B has no interest in the trust that  
can be determined before the 10-year  
period is ended, and therefore doesn't  
control the trust for purposes of Form 990  
and Schedule R.  
Example 3. Same facts as in  
Example 2, except that Y is also one of  
three general partners of Z. Because Y  
controls Z through means other than  
ownership percentage, and X controls Y, in  
these circumstances, Z is a related  
organization with respect to X. The other  
general partners of Z (if organizations)  
aren't related organizations with respect to  
X, absent other facts.  
See Regulations sections 301.7701-2,  
3, and 4 for more information on  
classification of corporations,  
partnerships, disregarded entities, and  
trusts.  
Examples of control by multiple  
persons.  
Example 4. Organizations A, B, C,  
and D are nonprofit organizations.  
Organization A appoints the board of  
Organization B, which appoints the board  
of Organization C. A majority of the board  
members of Organization D are also board  
members of Organization A. Under these  
circumstances, Organizations B and D are  
directly controlled by Organization A, and  
Organization C is indirectly controlled by  
Organization A. Therefore, Organizations  
B, C, and D are subsidiaries of  
Example 1. Organizations A and B  
each appoint one-third of the board  
members of Organizations C and D, and  
aren't otherwise related to Organizations C  
and D. Although neither Organization A  
nor Organization B is a parent of  
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.  
Organization C or Organization D,  
Organizations C and D are controlled by  
the same persons, and therefore are  
brother/sister related organizations with  
respect to each other.  
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.  
Organization A; Organization C is also a  
subsidiary of Organization B; and  
Example 2. There are 1,000  
Organizations B and C have a brother/  
sister relationship with Organization D.  
individuals who are members of both  
Organizations E and F. The members elect  
the board members of both Organizations  
2023 Instructions for Schedule R (Form 990)  
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Example 5. T, an exempt organization  
described in section 501(c)(3), owns 40%  
of the stock of U, a taxable C corporation.  
T and U each own 40% of the stock of V,  
another taxable C corporation. Under  
these facts, T and U aren't related  
organizations of each subordinate  
sections 301.6109-1(h) and 301.7701-2(c)  
(2)(iv).  
organization other than (1) related  
organizations that are included within the  
group exemption, or (2) related  
Column (b). Primary activity. Briefly  
describe the primary activity of the  
disregarded entity.  
organizations that the central organization  
knows to be included in another group  
exemption. If an organization isn't listed  
because it is known to be included in  
another group exemption, the central  
organization must explain in Part VII the  
relationship between its own group and  
organizations as parent/subsidiary  
Column (c). Legal domicile. List the  
U.S. state (or U.S. territory) or foreign  
country in which the disregarded entity  
is organized (the state or foreign country  
whose law governs the disregarded  
entity's internal affairs).  
because T doesn't own more than 50% of  
U's stock. Under section 318(a)(2)(C),  
none of U's holdings are attributed to T by  
virtue of T's ownership of U stock,  
because T owns less than 50% of U stock. members and the related organization  
Thus, T and V aren't related organizations  
as parent/subsidiary.  
known to be included in another group  
exemption (but you needn't include the  
names of such related organizations).  
Column (d). Total income. Enter the  
amount of the filing organization's total  
revenue reported in Form 990, Part VIII,  
line 12, column (A), attributable to the  
disregarded entity.  
Example 6. Same facts as in  
An organization that isn't included in a  
Example 5, except that U is an S  
group exemption isn't required to list in  
Part II a related organization that is  
corporation. Under section 318(a)(5)(E), T  
constructively owns 16% of V through U  
(40% of U's 40% ownership of V), giving T  
a total ownership interest of 56% in V, and  
making T and V related organizations as  
parent/subsidiary.  
included in a group exemption. Similarly,  
an organization that is included in a group  
exemption isn't required to list in Part II a  
related organization that is included in  
another group exemption. In either case,  
the organization must explain in Part VII  
the relationship between it and the related  
organization included in another group  
exemption (but you needn't include the  
names of such related organizations).  
Column (e). End-of-year assets. Enter  
the amount of the organization's total  
assets reported in Form 990, Part X,  
line 16, column (B), attributable to the  
disregarded entity.  
Example 7. Same facts as in  
Example 5, except that T owns 50% of U's  
stock. T and U aren't related organizations  
as parent/subsidiary because T doesn't  
own more than 50% of U's stock. Under  
section 318(a)(2)(C), U's holdings are  
attributed to T by virtue of T's 50%  
ownership of U's stock. Thus, T  
Column (f). Direct controlling entity.  
Enter the name of the entity that directly  
controls the disregarded entity. For  
instance, if B is a disregarded entity of the  
filing organization, and if C is a  
disregarded entity of B, report B as the  
direct controlling entity of C. If the filing  
organization directly controls, enter its  
name.  
Even if a related organization isn't required  
to be listed in Part II of Schedule R (Form  
990), the organization must report its  
transactions with the related organization  
in Part V, as required by the Part V  
constructively owns 20% of V through U  
(50% of U's 40% ownership of V), giving T  
a total ownership interest of 60% in V, and  
making T and V related organizations as  
parent/subsidiary.  
Example 8. F is a 501(c)(3) public  
charity that appoints the governing body of  
G, another 501(c)(3) public charity. G is  
supported by H, a Type III supporting  
organization within the meaning of section  
509(f)(1), but G doesn't control H. G and H  
are thus related organizations because of  
the supporting/supported relationship.  
Absent other facts, F and H aren't related  
organizations.  
instructions (for example, checking “Yes”  
to Part V, line 1b, if the organization made  
a grant to a related organization included  
in a group exemption, and reporting on  
Part V, line 2, the organization's receipt of  
interest or annuities from a controlled  
entity included in a group exemption),  
including listing the name of the related  
organization in Part V, line 2, column (a),  
for transactions that must be reported in  
line 2.  
Part II. Identification of  
Related Tax-Exempt  
Organizations  
For purposes of Schedule R (Form 990),  
treat governmental units and  
instrumentalities and foreign  
governments as tax-exempt  
organizations.  
Enter the details of each related  
organization on separate lines of Part II.  
Column (a). Name, address, and EIN.  
Enter the related organization's full legal  
name, mailing address, and EIN.  
Group exemption. Central  
Specific Instructions  
organizations and subordinate  
organizations of a group exemption  
aren't required to be listed as related  
organizations in Schedule R (Form 990),  
Part II. All other related organizations of  
the central organization or of a  
Part I. Identification of  
Column (b). Primary activity. Briefly  
describe the primary activity of the related  
organization.  
Disregarded Entities  
Enter the details of each disregarded  
entity on separate lines of Part I.  
Column (c). Legal domicile. List the  
U.S. state (or U.S. territory) or foreign  
country in which the related organization  
is organized. For a corporation, enter the  
state of incorporation (or the 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).  
subordinate organization are required to  
be listed in Schedule R (Form 990). The  
following rules apply.  
Column (a). Name, address, and EIN.  
Enter the full legal name and mailing  
address of the disregarded entity. Also  
enter the employer identification  
number (EIN) of the disregarded entity, if  
it has one.  
An organization that is a central or  
subordinate organization in a group  
exemption (whether filing an individual  
return or a group return) isn't required to  
list any of the subordinate organizations of  
the group in Part II.  
A disregarded entity generally  
must use the EIN of its sole  
TIP  
member. An exception applies to  
In the case of a group return, the central  
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  
organization must attach a list of the  
subordinate organizations included in the  
group return in response to Form 990,  
page 1, item H(b). The central  
Column (d). Exempt Code section.  
Enter the section that describes the  
related organization (for example, section  
501(c)(3) for a public charity, section  
organization must list in Schedule R (Form  
990), Parts II through IV the related  
2023 Instructions for Schedule R (Form 990)  
-3-  
501(c)(6) for a business league, or section  
527 for a separate segregated fund). For  
purposes of Schedule R, an organization  
that claims exemption is treated as  
member in the partnership, then complete  
only columns (a), (b), and (c), and enter  
“N/A” in columns (d), (e), (f), (g), (i), and  
(k).  
Column (g). Share of end-of-year as-  
sets. Enter the dollar amount of the filing  
organization's distributive share of the  
related partnership's end-of-year total  
assets, in accordance with the  
exempt. Also, for purposes of Schedule R,  
treat as a section 501(c)(3) organization a  
related foreign organization recognized  
as a charity by the foreign country, or for  
which the filing organization has made a  
reasonable judgment (or has an opinion of  
U.S. counsel) that the foreign organization  
is described in section 501(c)(3). The filing  
organization isn't required to make or  
obtain such a determination for purposes  
of Schedule R. For governmental units,  
instrumentalities, and foreign  
Enter the details of each related  
organization's capital interest, as specified  
by the partnership or LLC agreement, for  
the related partnership's tax year ending  
with or within the filing organization's tax  
year. Use Schedule K-1 (Form 1065) for  
the partnership's year ending with or within  
the organization's tax year to determine  
this amount by adding the organization's  
ending capital account to the  
organization on separate lines of Part III.  
Some of the information requested in  
this part is derived from Schedule K-1  
(Form 1065), Partner's Share of Income,  
Deductions, Credits, etc., issued to the  
organization. If the Schedule K-1 (Form  
1065) isn't available, provide a reasonable  
estimate of the required information.  
organization's share of the partnership's  
liabilities at year end reported on the  
Schedule K-1.  
Column (a). Name, address, and EIN.  
Enter the related partnership's full legal  
name, mailing address, and EIN.  
governments that don't have a section  
501(c) determination letter, leave blank.  
Column (h). Disproportionate alloca-  
tions. Check “Yes” if the interest of the  
filing organization as a partner of the  
partnership (or as a member of the LLC) in  
any item of income, gain, loss, deduction,  
or credit, or any right to distributions was  
disproportionate to the filing organization's  
investment in such partnership or LLC at  
any time during the filing organization's  
tax year. Otherwise, check “No.”  
Column (b). Primary activity. Briefly  
describe the primary business activity  
conducted, or product or service provided,  
by the related partnership (for example,  
investment in other entities, low-income  
housing, etc.).  
Column (e). Public charity status. For  
a related section 501(c)(3) organization,  
report its public charity status, using the  
appropriate line number (lines 1 through  
12d) corresponding to the public charity  
status checked on Schedule A (Form  
990), Public Charity Status and Public  
Support, Part I. If the related organization  
is a private foundation, use the  
Column (c). Legal domicile. List the  
U.S. state (or U.S. territory) or foreign  
country in which the related partnership is  
organized (the state or foreign country  
whose law governs the related  
designation “PF.” If the related organization  
is a section 509(a)(3) supporting  
organization, also indicate its type: I, II,  
III-FI, or III-O (for Type I, Type II, Type III  
functionally integrated, or Type III other,  
respectively).  
Column (i). Code V—UBI amount in  
box 20 of Schedule K-1 (Form 1065).  
Enter the dollar amount, if any, listed as  
the Code V amount (unrelated business  
taxable income) in box 20 of  
partnership's internal affairs).  
Column (d). Direct controlling entity.  
Enter the name of the entity (if any) that  
directly controls the related partnership;  
otherwise, enter “N/A.If the filing  
organization directly controls, enter its  
name.  
Schedule K-1 (Form 1065) received from  
the related partnership for the  
For purposes of Schedule R, treat as a  
public charity a related foreign  
partnership's tax year ending with or  
within the filing organization's tax year. If  
no Code V amount is listed in box 20,  
enter “N/A.”  
organization that hasn't been recognized  
as a section 501(c)(3) public charity by the  
IRS but for which the filing organization  
has made a good faith determination,  
based on an affidavit from the foreign  
organization or the opinion of counsel, that  
the foreign organization is the equivalent  
of a public charity. The filing organization  
isn't required to make or obtain such a  
determination for purposes of Schedule R;  
if it hasn't, leave column (e) blank.  
Column (e). Predominant income.  
Classify the predominant type of  
partnership income as:  
If the organization has reason to  
Related;  
believe that the stated amount in  
TIP  
Unrelated; or  
box 20 is incorrect, it should  
consult with the partnership. The stated  
amount in box 20 isn't controlling with  
respect to the organization's unrelated  
business income tax liability.  
Excluded from tax under section 512,  
513, or 514.  
In other words, enter which of the three  
types listed above is more prevalent than  
the others.  
Column (f). Direct controlling entity.  
Enter the name of the entity (if any) that  
directly controls the related organization;  
otherwise, enter “N/A.If the filing  
organization directly controls, enter its  
name.  
Column (j). General or managing part-  
ner. Check “Yes” if the filing organization  
was at any time during its tax year a  
general partner of a related limited  
For classification purposes, use the  
definitions set forth in the instructions to  
the Statement of Revenue in Form 990,  
Part VIII, columns (B), (C), and (D).  
partnership, or a managing partner or  
managing member of a related general  
partnership, LLC, or other entity treated as  
a partnership. Otherwise, check “No.”  
Column (f). Share of total income.  
Enter the dollar amount of the filing  
organization's distributive share of the  
related partnership's total income, in  
accordance with the organization's profits  
interest as specified by the partnership or  
LLC agreement, for the related  
Column (g). Section 512(b)(13) con-  
trolled entity. Check “Yes” if the related  
organization is a controlled entity of the  
filing organization under section  
Column (k). Percentage ownership.  
Enter the filing organization's percentage  
interest in the profits or in the capital of the  
related partnership, whichever is greater.  
512(b)(13). If not, check “No.”  
partnership's tax year ending with or  
within the filing organization's tax year.  
Use the total amount reported by the  
related partnership on Schedule K-1  
(Form 1065) for the partnership's tax year  
ending with or within the filing  
Part III. Identification of  
Related Organizations  
Taxable as a Partnership  
Part IV. Identification of  
Related Organizations  
Taxable as a Corporation  
or Trust  
In this part, identify any related  
organization treated as a partnership for  
federal tax purposes. If the partnership is  
related to the filing organization by reason  
of being its parent or brother/sister and the  
filing organization isn't a partner or  
organization's tax year (total of  
Schedule K-1, Part III, lines 1 through 11  
and 18, tax-exempt income).  
In this part, identify any related  
organization treated as a C or S  
corporation or trust for federal tax  
2023 Instructions for Schedule R (Form 990)  
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purposes (such as a charitable remainder  
trust), other than a related organization  
reported as a tax-exempt organization in  
Part II of Schedule R (Form 990). If the  
corporation or trust is related to the filing  
organization as its parent or as a brother/  
sister related organization, and the filing  
organization doesn't have an ownership  
interest in the corporation or trust, then  
complete only columns (a), (b), (c), and  
(e), and enter “N/A” in columns (d), (f), (g),  
and (h). Don't report trusts described  
within section 401(a).  
U.S. Corporation Income Tax Return) by  
the following fraction: the value of the filing  
organization's shares of all classes of  
stock in the C corporation, divided by the  
value of all outstanding shares of all  
classes of stock in the C corporation. The  
total income is for the related  
512(b)(13). If not, check “No.”  
Split-interest trusts. If the related  
organization is a split-interest trust  
described in section 4947(a)(2), the  
organization may enter in column (a) the  
term “Charitable remainder trust,”  
“Charitable lead trust,or “Pooled income  
fund,as appropriate, instead of the trust's  
name, EIN, or address. If the organization  
was related to more than one of a certain  
type of related split-interest trust during  
the tax year, it should enter the number of  
that type of trust in parentheses after the  
name. For instance, if the organization had  
two related charitable remainder trusts  
and three related charitable lead trusts, it  
should enter “Charitable remainder trusts  
(2)” on one line of column (a) and  
organization's tax year ending with or  
within the filing organization's tax year.  
For a related organization that is an S  
corporation, enter the filing organization's  
allocable share of the S corporation's total  
income. Use the amount on Schedule K-1  
(Form 1120-S) for the S corporation's tax  
year ending with or within the filing  
organization's tax year (Part III, lines 1  
through 10, of Schedule K-1 (Form  
1120-S)).  
Some of the information requested in  
this part is derived from Schedule K-1  
(Form 1041), Beneficiary's Share of  
Income, Deductions, Credits, etc., or  
Schedule K-1 (Form 1120-S),  
“Charitable lead trusts (3)” on another line  
in column (a). The organization may leave  
columns (e), (f), (g), and (h) blank for  
these lines. Use Part VII if the organization  
needs space to provide additional  
Shareholder's Share of Income,  
For a related organization that is a trust,  
enter the total income and gains reported  
on Part III, lines 1 through 8, of  
Deductions, Credits, etc., issued to the  
organization. If the Schedule K-1 isn't  
available, provide a reasonable estimate  
of the required information.  
Schedule K-1 (Form 1041) issued to the  
filing organization for the trust's tax year  
ending with or within the filing  
information for columns (b), (c), (d), or (i).  
Enter the details of each related  
organization's tax year.  
organization on separate lines of Part IV.  
Part V. Transactions With  
Related Organizations  
A section 501(c)(3) organization  
Column (a). Name, address, and EIN.  
Enter the related organization's full legal  
name, mailing address, and EIN.  
that is an S corporation  
shareholder must treat all  
TIP  
Line 1. Check “Yes” in the appropriate  
boxes of line 1 if the filing organization  
engaged in any of the transactions listed in  
Part V with any related organizations  
(other than disregarded entities listed in  
Part I). A single transaction may be  
described by and reported in more than  
one line. A “transfer,” for purposes of Part  
V, lines 1r and 1s, includes any  
allocations of income from the S  
corporation as unrelated business  
income, including gain on the disposition  
of stock.  
Column (b). Primary activity. Briefly  
describe the primary business activity  
conducted, or product or service provided,  
by the related organization (for example,  
holding company, management  
company).  
Column (g). Share of end-of-year as-  
sets. Enter the dollar amount of the filing  
organization's allocable share of the  
related organization's total assets as of  
the end of the related organization's tax  
year ending with or within the filing  
organization's tax year. For related C and  
S corporations, this amount is determined  
by multiplying the corporation's  
Column (c). Legal domicile. List the  
U.S. state (or U.S. territory) or foreign  
country in which the related organization  
is organized. For a corporation, enter the  
state of incorporation (or the 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).  
conveyance of funds or property not  
described in lines 1a through 1q, whether  
or not for consideration, such as a merger  
with a related organization.  
Line 2. The filing organization must report  
on this line any of the following  
end-of-year total assets by the fraction  
described in column (f). For related trusts,  
this amount corresponds to the filing  
organization's percentage ownership in  
the trust.  
transactions that it engaged in with a  
controlled entity of the filing  
organization, as defined in section  
512(b)(13), during the tax year.  
All transactions described in line 1a,  
Column (h). Percentage ownership.  
For a related organization taxable as a  
corporation, enter the filing organization's  
percentage of stock ownership in the  
corporation (total combined voting power  
or total value of all outstanding shares,  
whichever is greater). For a related S  
corporation, use the percentage reported  
on Schedule K-1 (Form 1120-S) for the  
year ending with or within the filing  
which includes all receipts or accruals of  
interest, annuities, royalties, or rent from a  
controlled entity under section 512(b)(13),  
regardless of amount.  
Column (d). Direct controlling entity.  
Enter the name of the entity (if any) that  
directly controls the related organization;  
otherwise, enter “N/A.If the filing  
organization directly controls, enter its  
name.  
Any other type of transaction, described  
in lines 1b through 1s, with controlled  
entities, if the amounts involved during the  
tax year between the filing organization  
and a particular controlled entity exceed  
$50,000 for that type of transaction.  
Column (e). Type of entity. Use one of  
the following codes to indicate the tax  
classification of the related organization: C  
(corporation or association taxable under  
subchapter C), S (corporation or  
organization's tax year. For a related  
organization taxable as a trust, enter the  
filing organization's percentage of  
Section 501(c)(3) organizations must  
also report on line 2 transactions  
association taxable under subchapter S),  
or T (trust, including a split-interest trust).  
described in Part V, lines 1b through 1s,  
that they engaged in with related  
beneficial interest. In each case, enter the  
percentage interest as of the end of the  
related organization's tax year ending with  
or within the filing organization's tax year.  
Column (f). Share of total income. For  
a related organization that is a C  
tax-exempt organizations not described in  
section 501(c)(3) (including section 527  
political organizations), if the amounts  
involved during the tax year between the  
filing organization and a particular related  
tax-exempt organization exceed $50,000.  
corporation, enter the dollar amount of the  
organization's share of the C corporation's  
total income. To calculate this share,  
multiply the total income of the C  
Column (i). Section 512(b)(13) control-  
led entity. Check “Yes” if the related  
organization is a controlled entity of the  
filing organization under section  
corporation (as reported on its Form 1120,  
2023 Instructions for Schedule R (Form 990)  
-5-  
Enter the details of each related  
($60,000/$1,300,000), wouldn't be greater  
than 5% of X's total activities, and  
Part VI. Unrelated  
Organizations Taxable as a  
Partnership  
organization and each transaction type on  
a separate line of the table. Transactions  
of a specified type, described in lines 1b  
through 1s, with a particular organization  
don't need to be reported if the total  
amount of transactions of such type during  
the tax year didn't exceed $50,000.  
therefore X wouldn't be required to identify  
Y in Schedule R (Form 990), Part VI.  
In this part, provide information on any  
unrelated organization (an organization  
that isn't a related organization with  
respect to the filing organization) that  
meets all of the following conditions.  
Disregard the unrelated partnerships  
that meet both of the following conditions.  
1. 95% or more of the filing  
organization's total 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)–(3)  
and (5), such as interest, dividends,  
royalties, rents, and capital gains  
(including unrelated debt-financed  
income).  
Column (a). Name of related organiza-  
tion. Enter the full legal name of the  
related organization.  
1. The unrelated organization is  
treated as a partnership for federal tax  
purposes (S corporations are excluded).  
2. The filing organization was a  
partner or member of the unrelated  
partnership at any time during the filing  
organization's tax year.  
3. The filing organization conducted  
more than 5% of its activities, based on  
the greater of its total assets at the end of  
its tax year or its total revenue for its tax  
year, through the unrelated partnership.  
Column (b). Transaction type (a–s).  
Enter the transaction type (lines 1a  
through 1s). Aggregate all transactions of  
the same type with the same related  
organization.  
2. The primary purpose of the filing  
organization's investment in the  
Column (c). Amount involved. The  
amount involved in a transaction is the fair  
market value of the services, cash, and  
other assets provided by the filing  
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.  
organization during its tax year, or the fair  
market value received by the filing  
Enter the details of each organization  
on separate lines of Part VI.  
In determining the percentage of the  
filing organization's activities as measured  
by its total assets, use the amount  
organization, whichever is higher,  
regardless of whether the transaction was  
entered into by the parties in a prior year.  
Any reasonable method for determining  
such amount is acceptable.  
Some of the information requested in  
this part is derived from Schedule K-1  
(Form 1065) issued to the organization. If  
the Schedule K-1 isn't available, provide a  
reasonable estimate of the required  
information.  
reported on Form 990, Part X, line 16,  
column (B), as the denominator, and the  
filing organization's ending capital account  
balance for the partnership tax year  
ending with or within the filing  
Column (d). Method of determining  
amount involved. Describe the method  
used to determine the value of the  
services, cash, and other assets reported  
in column (c).  
organization's tax year as the numerator  
(the amount reported on Schedule K-1  
(Form 1065) can be used). In determining  
the percentage of the filing organization's  
activities as measured by its total revenue,  
use the amount reported on Form 990,  
Part VIII, line 12, as the denominator, and  
the filing organization's distributive share  
of the partnership's gross revenue for the  
partnership tax year ending with or within  
the filing organization's tax year as the  
numerator.  
Column (a). Name, address, and EIN.  
Enter the unrelated partnership's full legal  
name, mailing address, and EIN.  
Split-interest trusts. If the organization  
engaged in a type of transaction  
Column (b). Primary activity. Briefly  
describe the primary business activity  
conducted, or product or service provided,  
by the unrelated partnership.  
reportable in Part V, line 2, with one or  
more split-interest trusts described in  
section 4947(a)(2), the organization may  
enter in column (a) the term “Charitable  
remainder trust,Charitable lead trust,or  
“Pooled income fund,as appropriate,  
instead of the trust's name. For instance, if  
the organization carried a $100,000  
liability for a loan it received from a related  
charitable lead trust, it should enter  
“Charitable lead trust” in column (a),  
transaction type “e” in column (b), and  
“$100,000” in column (c). Multiple  
Column (c). Legal domicile. List the  
U.S. state (or U.S. territory) or foreign  
country in which the unrelated partnership  
is organized (the state or foreign country  
whose law governs the unrelated  
Example. X, a section 501(c)(3)  
organization, is a partner of Y, an  
partnership's internal affairs).  
unrelated partnership, which conducts an  
activity that constitutes an unrelated  
trade or business with respect to X. X's  
distributive share of Y's total income is  
$60,000 for Y's tax year ending with or  
within X's tax year. X has an ending capital  
account balance in Y of $120,000 as  
reported on Schedule K-1 (Form 1065).  
X's total revenue and total assets for its tax  
year are $1,000,000 and $1,200,000,  
respectively. Because X's total assets  
exceed X's total revenue for its tax year, X  
must consider total assets in determining  
whether X conducted more than 5% of its  
activities through Y for X's tax year. X  
conducted 10% of its activities through Y,  
as measured by X's total assets  
Column (d). Predominant income.  
Classify the predominant type of income  
as:  
Related;  
transactions of the same type with the  
same type of split-interest trust may be  
aggregated on the same line, with the  
number of each type of trust listed in  
parentheses. For instance, if the  
Unrelated; or  
Excluded from tax under section 512,  
513, or 514.  
In other words, enter one of the three  
types of income listed above that is more  
prevalent than the others. For  
organization received $60,000 from one  
related charitable remainder trust as  
payment for investment services and  
$70,000 from another related charitable  
remainder trust as payment for investment  
services during the tax year, it may enter  
“Charitable remainder trusts (2)” in column  
(a), transaction type “l” in column (b), and  
“$130,000” in column (c).  
classification purposes, use the definitions  
set forth in the instructions to the  
Statement of Revenue in Form 990, Part  
VIII, columns (B), (C), and (D).  
Column (e). Section 501(c)(3) part-  
ners. Check “Yes” if all the partners of the  
unrelated partnership (or members of the  
LLC) are section 501(c)(3) organizations  
or governmental units (or wholly owned  
subsidiaries of either). Otherwise, check  
“No.”  
($120,000/$1,200,000), and thus must  
identify Y in Schedule R (Form 990), Part  
VI, and provide the required information. If,  
instead, X's total revenue for its tax year  
was $1,300,000, then total revenue would  
be considered rather than total assets; X's  
activities conducted through Y, as  
Column (f). Share of total income.  
measured by X’s total revenue  
Enter the dollar amount of the filing  
2023 Instructions for Schedule R (Form 990)  
-6-  
organization's distributive share of the  
related partnership's total income, in  
accordance with the organization's profits  
interest as specified by the partnership or  
LLC agreement, for the related  
respect to the organization's unrelated  
business income tax liability.  
Column (h). Disproportionate alloca-  
tions. Check “Yes” if the interest of the  
filing organization as a partner of the  
partnership (or as a member of the LLC) in  
any item of income, gain, loss, deduction,  
or credit, or any right to distributions was  
disproportionate to the organization's  
investment in such partnership or LLC at  
any time during the filing organization's  
tax year. Otherwise, check “No.”  
Column (j). General or managing part-  
ner. Check “Yes” if the filing organization  
was at any time during its tax year a  
general partner of an unrelated limited  
partnership, or a managing partner or  
managing member of an unrelated general  
partnership, LLC, or other entity treated as  
a partnership. Otherwise, check “No.”  
partnership's tax year ending with or  
within the filing organization's tax year.  
Use the total amount reported by the  
related partnership on Schedule K-1  
(Form 1065) for the partnership's tax year  
ending with or within the filing  
Column (i). Code V—UBI amount in  
box 20 of Schedule K-1 (Form 1065).  
Enter the dollar amount, if any, listed as  
the Code V amount (unrelated business  
taxable income) in box 20 of  
organization's tax year (total of  
Column (k). Percentage ownership.  
Enter the filing organization's percentage  
interest in the profits or in the capital of the  
related partnership, whichever is greater.  
Schedule K-1, Part III, lines 1 through 11  
and line 18, tax-exempt income).  
Column (g). Share of end-of-year as-  
sets. Enter the dollar amount of the filing  
organization's distributive share of the  
unrelated partnership's total assets, in  
accordance with the filing organization's  
capital interest as specified by the  
Schedule K-1 (Form 1065) received from  
the unrelated partnership for the  
partnership's tax year ending with or  
within the filing organization's tax year. If  
no Code V amount is listed in box 20,  
enter “N/A.”  
Part VII. Supplemental  
Information  
Use Part VII if the organization needs  
space to provide additional information in  
response to questions in Schedule R  
(Form 990). In Part VII, identify the specific  
part and line number that each response  
supports in the order in which those parts  
and lines appear on Schedule R (Form  
990).  
partnership or LLC agreement, as of the  
end of the unrelated partnership's tax  
year ending with or within the filing  
If the organization has reason to  
believe that the stated amount in  
box 20 is incorrect, it should  
TIP  
organization's tax year. Use the ending  
capital account reported on Schedule K-1  
(Form 1065) for the year ending with or  
within the filing organization's tax year.  
consult with the partnership. The stated  
amount in box 20 isn't controlling with  
2023 Instructions for Schedule R (Form 990)  
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