Форма 990-ПФ Інструкції
Інструкції щодо форми 990-PF, повернення приватного фонду або розділу 4947(a)(1) Невизначні благодійні довіри, які розглядаються як приватний фонд
Реп. 2023
Пов'язані форми
- Форма 990-ПФ - Повернення Приватного фонду або розділу 4947(a) (1) Довіра договірна як Приватний фонд
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 990-PF
Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust
Treated as a Private Foundation
Section references are to the Internal Revenue Code unless
otherwise noted.
Contents
Page
Part VI-B. Statements Regarding Activities for
Contents
Page
Part VII. Information About Officers, Directors,
Trustees, Foundation Managers, Highly
Part VIII-A. Summary of Direct Charitable
Part VIII-B. Summary of Program-Related
F. Use of Form 990-PF To Satisfy State
G. Furnishing Copies of Form 990-PF to State
Part XV-A. Analysis of Income-Producing
Part XV-B. Relationship of Activities to the
M. Penalty for Failure To File Timely,
Part XVI. Information Regarding Transfers to
and Transactions and Relationships With
P. Tax Payment Methods for Domestic Private
R. Disclosures Regarding Certain Information
S. Organizations Organized or Created in a
Future Developments
T. Liquidation, Dissolution, Termination, or
For the latest information about developments related to Form
990-PF and its instructions, such as legislation enacted after
U. Section 507(b)(1)(B) Termination—Notice
Reminders
V. Payment of Section 4940 Tax During
Announcement (Ann.) 2021-18, 2021-52 I.R.B. 910. Ann.
2021-18, 2021-52 I.R.B. 910, revoked Ann. 2001-33, 2001-17
I.R.B. 1137, which provided tax-exempt organizations with
reasonable cause for purposes of relief from the penalty
imposed under section 6652(c)(1)(A)(ii) of the Internal Revenue
Code 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 revoked
Ann. 2001-33 and instructs affected tax-exempt organizations to
follow the specific instructions to the Form 990, Form 990-EZ,
and Form 990-PF, effective for annual information returns
required for taxable years beginning on or after January 1, 2022.
Part III. Analysis of Changes in Net Assets or
Part IV. Capital Gains and Losses for Tax on
Part V. Excise Tax Based on Investment
Reduced tax on net investment income repealed. The
Taxpayer Certainty and Disaster Tax Relief Act reduced the 2%
section 4940(a) excise tax on net investment income of private
foundations to 1.39%. The legislation also repealed section
4940(e), Reduced Tax on Net Investment Income.
Income (Section 4940(a), 4940(b), or
Dec 14, 2023
Cat. No. 11290Y
Required electronic filing by exempt organizations. For tax
years beginning on or after July 2, 2019, the Taxpayer First Act,
section 3101 of P. L. 116-25, requires that returns by exempt
organizations be filed electronically. Accordingly, you must file
the return electronically for tax years beginning in 2021. See
Electronic Filing, later, for more information.
IRS e-Services Makes Taxes Easier
Now more than ever before, businesses can enjoy the benefits of
filing and paying their federal taxes electronically. Whether you
rely on a tax professional or handle your own taxes, the IRS
offers you convenient programs to make taxes easier.
You can e-file your Form 990-PF, Form 940 and 941
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employment tax returns, and Forms 1099 and other information
returns. Visit IRS.gov/Charities-Non-Profits/Annual-Reporting-
and-Filing for details.
Reporting standard for net assets updated. Part II of Form
990-PF was updated to reflect the Financial Accounting
Standard Board’s (FASB’s) reclassification of net assets into two
classes, net assets without donor restrictions and net assets with
donor restrictions. For more information, see Part II. Balance
later.
You can pay taxes online or by phone using the free Electronic
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Federal Tax Payment System (EFTPS). To get more information
800-555-4477. To contact EFTPS using the Telecommunications
Relay Services (TRS), for people who are deaf, hard of hearing,
or have a speech disability, dial 711 and provide the TRS
assistant the 800-555-4477 number above or 800-733-4829.
Pub. 15-T. Pub. 15-T, Federal Income Tax Withholding Methods,
contains the federal income tax withholding tables that were
previously provided in Pubs. 15 and 15-A and explains how to
use the tables.
Electronic Funds Withdrawal (EFW) from a checking or
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savings account is also available to those who file electronically.
Exception from the excise tax on excess business hold-
ings. Section 4943(g) provides an exception from the excise tax
on excess business holdings for certain independently operated
enterprises whose voting stock is wholly owned by a private
General Instructions
Purpose of form. Form 990-PF is used:
To figure the tax based on investment income, and
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To report charitable distributions and activities.
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Tax on excess executive compensation. Section 4960
imposes an excise tax on a foundation that pays to any covered
employee more than $1 million in remuneration or pays an
excess parachute payment. See section 4960 and Form 4720,
Return of Certain Excise Taxes Under Chapters 41 and 42 of the
Internal Revenue Code, for more information.
Also, Form 990-PF serves as a substitute for the section
4947(a)(1) nonexempt charitable trust's income tax return, Form
1041, U.S. Income Tax Return for Estates and Trusts, when the
trust has no taxable income.
A. Who Must File
Initial Form 990-PF by former public charity. If you are filing
Form 990-PF because you no longer meet a public support test
under section 509(a)(1) and you haven't previously filed Form
990-PF, check Initial return of a former public charity in Item G of
the Heading section on page 1 of your return. Before filing Form
the latest information and filing tips to confirm you are no longer
a publicly supported organization.
Form 990-PF is an annual information return that must be filed by
the following.
Exempt private foundations (section 6033(a), (b), and (c)).
Taxable private foundations (section 6033(d)).
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Organizations that agree to private foundation status and
whose applications for exempt status are pending on the due
date for filing Form 990-PF.
Organizations that claim private foundation status, haven't yet
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Automatic revocation. Most tax-exempt organizations are
required 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 the exception requirement, visit IRS.gov/Annual
Exempt Organizations: Who Must File. If a tax-exempt private
foundation fails to file an annual return as required for 3
consecutive years, it will automatically lose its tax-exempt status
and will become a taxable private foundation. See M. Penalty for
applied for exempt status, and whose application isn't yet
untimely under section 508(a) for retroactive recognition of
exemption.
Organizations that made an election under section 41(e)(6)
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(D)(iv).
Private foundations that are making a section 507(b)
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termination.
Section 4947(a)(1) nonexempt charitable trusts treated as
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private foundations (section 6033(d)).
Don’t include social security numbers on publicly dis-
closed forms. Because the IRS is required to publicly disclose
the organization's annual information returns, social security
numbers shouldn't be included on this form. Documents subject
to disclosure include schedules and attachments filed with the
form.
Include on the foundation's return the financial and other
information of any disregarded entity owned by the
foundation. See Regulations sections 301.7701-1
TIP
through 3 for information on the classification of certain business
organizations, including an eligible entity that is disregarded as
an entity separate from its owner (disregarded entity).
Other section 4947(a)(1) nonexempt charitable trusts.
Section 4947(a)(1) nonexempt charitable trusts not treated as
private foundations don't file Form 990-PF. However, they may
need to file Form 990, Return of Organization Exempt From
Income Tax, or Form 990-EZ, Short Form Return of Organization
Exempt From Income Tax. With either of these forms, the trust
must also file Schedule A (Form 990 or 990-EZ), Public Charity
Status and Public Support, and other required schedules. See
the Form 990 and Form 990-EZ instructions.
Photographs of Missing Children
The IRS is a proud partner with the National Center for Missing &
Exploited Children® (NCMEC). 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.
Phone Help
If you have questions and/or need help completing this form,
please call 877-829-5500. This toll-free telephone service is
available Monday through Friday.
B. Which Parts To Complete
See the chart showing which parts of the form must be
completed, later.
2
Instructions for Form 990-PF (2023)
B. Which Parts To Complete
Some parts of the form listed below don't apply to some filers. See How to avoid filing an incomplete return, earlier, for
information on what to do if a part or an item doesn't apply.
Part of Form 990-PF
Foundations Which Must Complete This Part
Heading
All
All
Part I (analysis of revenues and expenses), columns (a) (revenue and expenses
per books) and (d) (disbursements for charitable purposes)
Part I (analysis of revenues and expenses), column (b) (net investment income)
All except (1) foreign taxable foundations, and (2) foreign nonexempt charitable
trusts; foreign 501(c)(3) foundations need not complete line 7 (capital gain net
income) or expense lines
Part I (analysis of revenues and expenses), column (c) (adjusted net income)
Only foundations claiming operating foundation status, foundations (not
described in section 4948(b)) that derive income from a charitable activity and
claim a qualifying distribution for net losses from the activity, and domestic 501(c)
(3) foundations that maintain a common fund as described in section 170(b)(1)(F)
(iii)
Part II (balance sheets), columns (a) and (b) (beginning and end-of-year book
value)
All
Part II (balance sheets), column (c) (end-of-year fair market value)
All foundations with at least $5,000 in assets per books at some time during tax
year; other foundations complete only line 16
Part III (analysis of changes in net assets or fund balances)
Part IV (capital gains and losses for tax on investment income)
All
All except foreign foundations; line 3 must be completed only by foundations that
must complete Part I, column (c)
Part V (excise tax based on investment income)
Part VI-A (statements regarding activities)
All except (1) organizations electing private foundation status under section 41(e)
(6)(D), (2) foreign taxable foundations, and (3) foreign nonexempt charitable trusts
All; foreign foundations described in section 4948(b) need not complete lines 6
and 8, and in line 10, foreign foundations don't list persons who aren't U.S.
citizens
Part VI-B (statements regarding activities for which Form 4720 may be required)
All; foreign foundations described in section 4948(b) need not complete line 2
All
Part VII (information about officers, directors, trustees, foundation managers,
highly paid employees, and contractors)
Part VIII-A (summary of direct charitable activities)
Part VIII-B (summary of program-related investments)
Part IX (minimum investment return)
All
All
All except foreign foundations described in section 4948(b) that aren't claiming
operating foundation status
Part X (distributable amount)
Part XI (qualifying distributions)
Part XII (undistributed income)
All except (1) foreign foundations described in section 4948(b), and (2)
foundations claiming operating foundation status
All except foreign foundations described in section 4948(b) that aren't claiming
operating foundation status
All except foreign foundations described in section 4948(b); if the foundation
claims operating foundation status for any of the years shown in Part XII, it
doesn't complete those portions of Part XII that apply to those years
Part XIII (private operating foundations)
Part XIV (supplementary information)
Only foundations claiming operating foundation status
All except (1) foundations with less than $5,000 of assets per books at all times
during tax year, and (2) foreign foundations described in section 4948(b)
Part XV-A (analysis of income-producing activities)
All
All
All
Part XV-B (relationship of activities to the accomplishment of exempt purposes)
Part XVI (information regarding transfers to and transactions and relationships
with noncharitable exempt organizations)
Signature block
All
3
Instructions for Form 990-PF (2023)
a. A substantial contributor (see the instructions for Part
VI-A, line 10, later).
How to avoid filing an incomplete return.
Complete all applicable line items.
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Answer “Yes,” “No,” or “N/A” (not applicable) to each question
b. A foundation manager.
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on the return.
c. A person who owns more than 20% of a corporation,
partnership, trust, or unincorporated enterprise that is itself a
substantial contributor.
Make an entry (including a zero when appropriate) on all total
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lines.
Enter “None” or “N/A” if an entire part doesn't apply.
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d. A family member of an individual described in (a), (b), or
(c) above.
Sequencing Chart To Complete the Form
e. A corporation, partnership, trust, or estate in which
persons described in (a), (b), (c), or (d) above own a total
beneficial interest of more than 35%.
f. For purposes of section 4941 (self-dealing), a disqualified
person also includes certain government officials. (See section
4946(c) and the related regulations.)
You may find the following chart helpful. It limits jumping from
one part of the form to another to figure an amount needed to
complete an earlier part. If you complete the parts in the listed
order below, any information you may need from another part will
already be entered.
Step
Part
Step
Part
g. For purposes of section 4943 (excess business holdings),
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XI, lines 1–4
a disqualified person also includes:
I & II
Heading
III
V
i. A private foundation effectively controlled (directly or
indirectly) by the same persons who control the private
foundation in question; or
XI, lines 5–6
X
XII
VI-A
VII
VIII-A – X
VI-B
XIII – XVI
ii. A private foundation to which substantially all
contributions were made (directly or indirectly) by one or more of
the persons described in (a), (b), and (c) above, or members of
their families, within the meaning of section 4946(d).
C. Definitions
8. An organization is controlled by a foundation or by one or
more disqualified persons with respect to the foundation if any of
these persons may, by combining their votes or positions of
authority, require the organization to make an expenditure or
prevent the organization from making an expenditure, regardless
of the method of control. “Control” is determined regardless of
how the foundation requires the contribution to be used.
1. A private foundation is a domestic or foreign organization
exempt from income tax under section 501(a), described in
section 501(c)(3), and is other than an organization described in
sections 509(a)(1) through (4).
Churches, hospitals, schools, broadly publicly supported
organizations, supporting organizations, and organizations that
test for public safety are excluded from private foundation status
by sections 509(a)(1) through (4). These organizations may be
required to file Form 990, Form 990-EZ, or Form 990-N
(“e-Postcard”) instead of Form 990-PF.
2. A nonexempt charitable trust treated as a private
foundation is a trust that isn't exempt from tax under section
501(a) and all of the unexpired interests of which are devoted to
religious, charitable, or other purposes described in section
170(c)(2)(B), and for which a charitable deduction was allowed
under a section of the Code listed in section 4947(a)(1).
3. A taxable private foundation is an organization that
previously was recognized as being exempt under section
501(a) as an organization described in section 501(c)(3), but has
lost that recognition. Though it may operate as a taxable entity, it
will continue to be treated as a private foundation until that status
is terminated under section 507.
D. Other Forms You May Need To File
Form W-2, Wage and Tax Statement.
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•
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Form W-3, Transmittal of Wage and Tax Statements.
Form 940, Employer's Annual Federal Unemployment (FUTA)
Tax Return (section 4947(a)(1) trusts and taxable private
foundations may need to file).
Form 941, Employer's QUARTERLY Federal Tax Return.
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These forms are used to report social security, Medicare, and
income taxes withheld by an employer and social security and
Medicare taxes paid by an employer.
If income, social security, and Medicare taxes that must be
withheld aren't withheld or aren't paid to the IRS, a trust fund
recovery penalty may apply. The penalty is 100% of such unpaid
taxes.
4. A private operating foundation is an organization that is
described under section 4942(j)(3) or (5). It means any private
foundation that spends at least 85% of the smaller of its adjusted
net income (figured in Part I) or its minimum investment return
(figured in Part IX) directly for the active conduct of the exempt
purpose or functions for which it is organized and operated and
that also meets the assets test, the endowment test, or the
support test (discussed in Part XIII). Also, certain elderly care
facilities created before 1970 are treated as private operating
foundations.
5. A nonoperating private foundation is a private foundation
that isn't a private operating foundation. These often are referred
to as “grant-making foundations.”
6. A foundation manager is an officer, director, or trustee of a
foundation, or an individual who has powers similar to those of
officers, directors, or trustees. In the case of any act or failure to
act, the term “foundation manager” may also include employees
of the foundation who have the authority to act.
This penalty may be imposed on all persons (including
volunteers (see below)) whom the IRS determines to be
responsible for collecting, accounting for, and paying over these
taxes, and who willfully didn't do so.
This penalty doesn't apply to any volunteer, unpaid member
of any board of trustees or directors of a tax-exempt organization
if this member:
Is solely serving in an honorary capacity;
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Doesn’t participate in the day-to-day or financial activities of
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the organization; and
Doesn’t have actual knowledge of the failure to collect,
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account for, and pay over these taxes.
However, this exception doesn't apply if it results in no person
being liable for the penalty.
Form 720, Quarterly Federal Excise Tax Return. In addition
to various federal excise taxes that are paid with the filing of this
form, the Patient-Centered Outcomes Research Institute fee that
is imposed on health insurers and employers who maintain
self-insured health plans is payable annually and reported on the
7. A disqualified person is any of the following.
4
Instructions for Form 990-PF (2023)
Form 720 that is filed for the second quarter of each year, which
is due no later than July 31 of each calendar year.
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.
Form 926, Return by a U.S. Transferor of Property to a For-
eign Corporation. U.S. persons (including domestic
corporations and trusts) must file Form 926 to report certain
transfers of tangible or intangible property to a foreign
corporation, as required by section 6038B.
Form 1120, U.S. Corporation Income Tax Return. Filed by
nonexempt taxable private foundations that have taxable income
under the income tax provisions (subtitle A of the Code). Form
990-PF is also filed by these taxable foundations.
Form 990-T, Exempt Organization Business Income Tax Re-
turn. Every organization exempt from income tax under section
501(a) with total gross income of $1,000 or more from all trades
or businesses unrelated to the organization's exempt purpose
must file Form 990-T. The form is also used by tax-exempt
organizations to report other additional taxes, including the
additional tax figured in Part IV of Form 8621, Return by a
Shareholder of a Passive Foreign Investment Company or
Qualified Electing Fund.
Form 1120-POL, U.S. Income Tax Return for Certain Politi-
cal Organizations. Section 501(c) organizations must file Form
1120-POL if they are treated as having political organization
taxable income under section 527(f)(1).
Form 1128, Application To Adopt, Change, or Retain a Tax
Year. Form 1128 is used to request approval from the IRS to
change a tax year or to adopt or retain a certain tax year.
Form 2220, Underpayment of Estimated Tax by Corpora-
tions. Form 2220 is used by corporations and trusts filing Form
990-PF to see if the foundation owes a penalty and to figure the
amount of the penalty. Generally, the foundation isn't required to
file this form because the IRS can figure the amount of any
penalty and bill the foundation for it. However, complete and
attach Form 2220 even if the foundation doesn't owe the penalty
if:
Form 990-W, Estimated Tax on Unrelated Business Taxable
Income for Tax-Exempt Organizations. Use of this form is
optional. It is provided only to aid you in determining your tax
liability. You must use electronic funds transfer to make all
Domestic Private Foundations, later, for information about
electronic deposits.
The annualized income or the adjusted seasonal installment
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Form 1023, Application for Recognition of Exemption Un-
der Section 501(c)(3) of the Internal Revenue Code. This
form for recognition of exemption from federal income tax under
section 501(c)(3) must be used by private foundations that don't
qualify to use Form 1023-EZ or that are also requesting advance
approval of individual grant procedures or recognition as an
operating foundation. Form 8940 may also be used for
requesting advance approval of individual grant procedures or
recognition as an operating foundation.
method is used; or
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based on the prior year's tax.
If Form 2220 is attached, check the box on Form 990-PF, Part V,
line 8, and enter the amount of any penalty on this line.
Form 2848, Power of Attorney and Declaration of Repre-
sentative. Used to authorize an individual to represent you in
matters before the IRS, such as the filing of Form 1023.
Form 1023-EZ, Streamlined Application for Recognition of
Exemption Under Section 501(c)(3) of the Internal Revenue
Code. Certain small private foundations may apply for
recognition of exemption under section 501(c)(3) using this form
instead of Form 1023.
Form 3115, Application for Change in Accounting Method.
Used to request a change in either an overall method of
accounting or the accounting treatment of any item, in situations
not covered by Rev. Proc. 85-58, 1985-18 I.R.B. 5.
Form 3520, Annual Return To Report Transactions With
Foreign Trusts and Receipt of Certain Foreign Gifts. Used
by U.S. persons to report certain transactions with foreign trusts,
ownership of foreign trusts under the grantor trust rules of
sections 671–679, and receipt of certain large gifts or bequests
from certain foreign persons.
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-PF. However, if the trust doesn't have any
taxable income under the income tax provisions (subtitle A of the
Code), it may use the filing of Form 990-PF to satisfy its Form
1041 filing requirement under section 6012. If this condition is
met, check the box on line 15, Part VI-A, of Form 990-PF and
don't file Form 1041.
Form 4506, Request for Copy of Tax Return. Used by the
organization or designated third party to get a complete copy of
the organization's return.
Form 1041-ES, Estimated Income Tax for Estates and
Form 4506-A, Request for Public Inspection or Copy of Ex-
empt or Political Organization IRS Form. Used to inspect or
request a copy of an exempt or political organization's return,
report, notice, or exemption application by the public or the
organization.
Trusts. Used to make estimated tax payments.
Form 1096, Annual Summary and Transmittal of U.S. Infor-
mation Returns. Used to transmit Forms 1097, 1098, 1099,
3921, 3922, 5498, and W-2G to the IRS. Don’t use it to transmit
electronically.
Form 4720, Return of Certain Excise Taxes Under Chapters
41 and 42 of the Internal Revenue Code. Is primarily used to
determine the excise taxes imposed on:
Form 1098 series. Information returns to report mortgage
interest, student loan interest, qualified tuition and related
expenses, and a contribution of a qualified vehicle that has a
claimed value of more than $500.
Acts of self-dealing between private foundations and
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disqualified persons,
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; nonemployee
compensation; distributions from an HSA, Archer MSA or
Medicare Advantage MSA; original issue discount; distributions
from pensions, annuities, retirement or profit-sharing plans,
Failure to distribute income,
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Excess business holdings,
Investments that jeopardize a foundation's charitable
purposes,
Making political or other noncharitable expenditures,
•
•
•
Prohibited tax shelter transactions, and
Excess executive compensation.
Form 5471, Information Return of U.S. Persons for Certain
Foreign Corporations. Used by certain U.S. persons that are
5
Instructions for Form 990-PF (2023)
shareholders in certain foreign corporations, in compliance with
sections 6038 and 6046.
Form 8868, Application for Extension of Time To File an Ex-
empt Organization Return or Excise Taxes Related to Em-
ployee Benefit Plans. Used by an exempt organization to
request an automatic 6-month extension of time to file its return
or, by a Form 5330 filer to request an extension of up to 6 months
to file a return for excise taxes related to employee benefit plans.
Form 5500, Annual Return/Report of Employee Benefit
Plan. Used to report information concerning employee benefit
plans and Direct Filing Entities.
Form 7004, Application for Automatic Extension of Time To
File Certain Business Income Tax, Information, and Other
Returns. Used by nonexempt charitable trusts and taxable
foundations to request extension of time to file income tax
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 and beneficiaries of those contracts.
Form 8282, Donee Information Return. Required of the
donee of “charitable deduction property” that sells, exchanges,
or otherwise disposes of the property within 3 years after the
date it received the property. Also required of any successor
donee that disposes of charitable deduction property within 3
years after the date 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 8886, Reportable Transaction Disclosure Statement.
Used to disclose information for each reportable transaction in
which the organization participated, including but not limited to a
prohibited tax shelter transaction. Exempt organizations may
also be required to file Form 8886-T in such case.
Form 8886-T, Disclosure by Tax-Exempt Entity Regarding
Prohibited Tax Shelter Transaction. Used by an exempt
organization to disclose that it was a party to a prohibited tax
shelter transaction.
Form 8283, Noncash Charitable Contributions. Donors must
file Form 8283 to report information about certain noncash
charitable contributions in order to substantiate a charitable
deduction under section 170. The donor may need to obtain an
acknowledgement by the donee foundation in Part IV of Form
8283.
Form 8899, Notice of Income From Donated Intellectual
Property. Used to report income from qualified intellectual
property.
Form 8940, Request for Miscellaneous Determination.
Used by private foundations, government entities requesting
voluntary termination of exempt status under section 501(c)(3),
and nonexempt charitable trusts to obtain certain determinations
including advance approval of individual grant procedures
(section 4945(g)), advance approval of certain set-asides
(section 4942(g)(2)), advance approval of voter registration
activities (section 4945(f)), and termination of private foundation
status (section 507(b)(1)(B)). Nonexempt charitable trusts also
file this form to request an initial determination under section
509(a)(3). Canadian registered charities file this form to be listed
as an organization described in section 501(c)(3) on IRS.gov or
request classification as a public charity rather than a private
foundation.
Form 8275, Disclosure Statement. Taxpayers and tax return
preparers should attach this form to Form 990-PF to disclose
items or positions (except those contrary to a regulation—see
Form 8275-R below) that aren't otherwise adequately disclosed
on the tax return. The disclosure is made to avoid parts of the
accuracy-related penalty imposed for substantial
understatement of tax or disregard of rules or regulations
language in 1.6662-3(b)(2) and 1.6662-3(c)(2). See also IRM
20.1.5.8.2.1. Form 8275 is also used for disclosures relating to
preparer penalties for understatements due to unrealistic
positions or for willful or reckless conduct.
Form 8275-R, Regulation Disclosure Statement. Use this
form to disclose any item on a tax return for which a position has
been taken that is contrary to Treasury regulations.
FinCEN Form 114, Report of Foreign Bank and Financial
Accounts. Used by organizations formed or organized in or
under the laws of the United States to report a financial interest
in or signature authority over a foreign financial account if the
aggregate value exceeds $10,000 at any time during the
calendar year.
Form 8300, Report of Cash Payments Over $10,000 Re-
ceived in a Trade or Business. Used to report cash amounts
in excess of $10,000 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).
E. Useful Publications
Form 8621, Information Return by a Shareholder of a Pas-
sive Foreign Investment Company or Qualified Electing
Fund. A U.S. person that is a direct or indirect shareholder of a
passive foreign investment company (PFIC) may need to file. But
see Regulations section 1.1291–1(e) with respect to tax-exempt
foundations.
The following publications may be helpful in preparing Form
990-PF or for other tax compliance purposes.
Pub. 15 (Circular E), Employer’s Tax Guide.
•
Pub. 15-A, Employer’s Supplemental Tax Guide (Fringe
•
Benefits).
Pub. 15-T, Federal Income Tax Withholding Methods.
•
•
•
•
•
•
•
•
Pub. 525, Taxable and Nontaxable Income.
Form 8821, Tax Information Authorization. Used to authorize
an individual or organization to inspect and/or receive your
confidential tax information on designated matters.
Pub. 526, Charitable Contributions.
Pub. 538, Accounting Periods and Methods.
Pub. 557, Tax-Exempt Status for Your Organization.
Pub. 561, Determining the Value of Donated Property.
Pub. 583, Starting a Business and Keeping Records.
Pub. 598, Tax on Unrelated Business Income of Exempt
Form 8822-B, Change of Address or Responsible Par-
ty—Business. Used by taxpayers to notify the IRS of changes
in business mailing address, business location, or responsible
party.
Organizations.
Form 8865, Return of U.S. Persons With Respect to Certain
Foreign Partnerships. Used by U.S. persons to report
information required under section 6038 (controlled foreign
partnerships), section 6038B (transfers to foreign partnerships),
or section 6046A (acquisitions, dispositions, and changes in
foreign partnership interests).
Pub. 892, How To Appeal an IRS Determination on
•
Tax-Exempt Status.
Pub. 946, How To Depreciate Property.
•
•
Pub. 966, Electronic Federal Tax Payment System: A Guide to
Getting Started.
Pub. 1771, Charitable Contributions—Substantiation and
•
Disclosure Requirements.
6
Instructions for Form 990-PF (2023)
Pub. 3079, Tax-Exempt Organizations and Gaming.
•
•
Method of accounting. Many states require that all amounts
Pub. 3833, Disaster Relief, Providing Assistance Through
be reported based on the accrual method of accounting.
Charitable Organizations.
Time for filing may differ. The time for filing Form 990-PF with
Pub. 4220, Applying for 501(c)(3) Tax-Exempt Status.
Pub. 4221-PF, Compliance Guide for 501(c)(3) Private
•
•
the IRS may differ from the time for filing state reports.
Foundations.
G. Furnishing Copies of Form 990-PF
to State Officials
Pub. 4302, A Charity’s Guide to Vehicle Donations.
Pub. 4303, A Donor’s Guide to Vehicle Donations.
Pub. 4386, Compliance Checks—Examination, Audit, or
•
•
•
The foundation managers must furnish a copy of Form 990-PF
and Form 4720 (if applicable) to the Attorney General of:
Compliance Check?
Pub. 4630, Exempt Organizations Products and Services
•
Each state required to be listed in Part VI-A, line 8a;
•
Catalog.
The state in which the foundation's principal office is located;
•
and
Publications and forms are available at no charge on the IRS
The state in which the foundation was incorporated or
•
created.
F. Use of Form 990-PF To Satisfy State
Reporting Requirements
A copy of the annual return must be sent to the Attorney
General at the same time the annual return is filed with the IRS.
Some states and local government units will accept a copy of
Form 990-PF and required attachments instead of all or part of
their own financial report forms.
Other requirements. If the Attorney General or other
appropriate state official of any state requests a copy of the
annual return, the foundation managers must comply with the
request.
If the organization plans to use Form 990-PF to satisfy state
or local filing requirements, such as those from state charitable
solicitation acts, note the following.
Exceptions. These rules don't apply to any foreign foundation
that, from the date of its creation, has received at least 85% of its
support (excluding gross investment income) from sources
outside the United States. See S. Organizations Organized or
Created in a Foreign Country, later, for other exceptions that
affect this type of organization.
Determine state filing requirements. Consult the appropriate
officials of all states and other jurisdictions in which the
organization does business to determine their specific filing
requirements. “Doing business” in a jurisdiction may include any
of the following.
Coordination with state reporting requirements. If the
foundation managers submit a copy of Form 990-PF and Form
4720 (if applicable) to a state Attorney General to satisfy a state
reporting requirement, they don't have to furnish a second copy
to that Attorney General to comply with the Internal Revenue
Code requirements discussed in this section.
If there is a state reporting requirement to file a copy of Form
990-PF with a state official other than the Attorney General (for
instance, the Secretary of State), then the foundation managers
must also send a copy of the Form 990-PF and Form 4720 (if
applicable) to the Attorney General of that state.
Soliciting contributions or grants by mail or otherwise from
•
individuals, businesses, or other charitable organizations.
Conducting programs.
•
•
•
Having employees within that jurisdiction.
Maintaining a checking account or owning or renting property
there.
Monetary tests may differ. Some or all of the dollar limitations
that apply to Form 990-PF when filed with the IRS may not apply
when using Form 990-PF instead of state or local report forms.
IRS dollar limitations that may not meet some state requirements
are the $5,000 total assets minimum that requires completion of
Part II, column (c), and Part XIV; and the $50,000 minimum for
listing the highest paid employees and for listing professional
fees in Part VII.
H. Accounting Period
Calendar or fiscal year. File the 2023 return for the calendar
year 2023 or fiscal year beginning in 2023. If the return is for a
fiscal year, fill in the beginning and ending dates of the tax year
in the spaces at the top of the return.
The return must be filed on the basis of the established
annual accounting period of the organization. If the organization
has no established accounting period, the return should be on
the calendar-year basis.
Additional information may be required. State and local filing
requirements may require attaching to Form 990-PF one or more
of the following.
Additional financial statements, such as a complete analysis
•
of functional expenses or a statement of changes in net assets.
Notes to financial statements.
•
•
•
Additional financial schedules.
Short period. For an initial or final return or for a short tax year
resulting from a change in accounting period, the 2023 form may
also be used as the return for a short period (less than 12
months) ending November 30, 2023, or earlier. The 2023 form
may also be used for a short period beginning after November
30, 2023, and ending before December 31, 2024 (not on or after
December 31, 2024). Note on the short period return the change
of accounting period.
A report on the financial statements by an independent
accountant.
Answers to additional questions and other information.
Each jurisdiction may require the additional material to be
•
presented on forms they provide. The additional material doesn't
have to be submitted with the Form 990-PF filed with the IRS.
If required information isn't provided to a state, the
organization may be asked by the state to provide it or to submit
an amended return even if the Form 990-PF is accepted by the
IRS as complete.
Accounting period change. In general, to change its
accounting period, the organization must file Form 990-PF by the
due date for the short period resulting from the change. At the
top of this short period return, write “Change of Accounting
Period.”
If the organization has previously changed its accounting
period 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 990-PF filing requirement
Amended returns. If the organization submits supplemental
information or files an amended Form 990-PF with the IRS, it
must also submit a copy of the information or amended return to
any state with which it filed a copy of Form 990-PF.
7
Instructions for Form 990-PF (2023)
at any time during that 10-year period, it must also file 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,
1985-18 I.R.B. 5.
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.
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-PF. 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.
I. Accounting Methods
An “accounting method,” for federal income tax purposes, is a
practice a taxpayer follows to determine the taxable 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
Exception. Complete Part I, column (d), on the cash receipts
and disbursements method of accounting.
J. When and How To File
This return must be filed by the 15th day of the 5th month
following the close of the foundation's tax year. If the regular due
date falls on a Saturday, Sunday, or legal holiday, file by the next
An exempt organization may adopt an accounting
method not only for purposes of calculating taxable
!
CAUTION
income, but also for purposes of determining whether
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).
In the case of a complete liquidation, dissolution, or
termination, file the return by the 15th day of the 5th month
following complete liquidation, dissolution, or termination.
Required electronic filing. If you are filing a 2023 Form
990-PF, you are required to file electronically.
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-PF and all schedules) to report revenue and expenses
that it regularly uses to keep its books and records.
For additional information on the electronic filing requirement
K. Extension of Time To File
A foundation generally uses Form 8868 to request an automatic
extension of time to file its return.
An automatic extension will be granted if you properly
complete this form, file it, and pay any balance due by the due
date for Form 990-PF.
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, or any successor, for general
procedures for obtaining consent to change an accounting
method.
L. Amended Return
To change the organization's return for any year, file an amended
return, including attachments, with the correct information. The
amended return must provide all the information required by the
form and instructions, not just the new or corrected information.
Check “Amended return” in Item G at the top of page 1 of the
If the organization files an amended return to claim a refund of
tax paid under section 4940 or 4948, it must file the amended
return within 3 years after the date the original return was filed, or
within 2 years from the date the tax was paid, whichever date is
later.
Depending upon the specific accounting method change
being requested, the taxpayer may be able to request
!
CAUTION
“automatic” consent. This means that as long as the
taxpayer follows the applicable procedures, the taxpayer does
not have to wait for formal approval by the IRS before applying
the new accounting method. See Rev. Proc. 2019-43, 2019-48
337, or its successor, for a list of accounting method changes
that generally qualify for automatic consent.
Need a copy of an old return or form? Use Form 4506 to
obtain a copy of a previously filed return. You can download
M. Penalty for Failure To File Timely,
Completely, or Correctly
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.
To avoid filing an incomplete return or having to respond to
Complete, earlier.
Against the organization. If an organization doesn't file timely
and completely, or doesn't furnish the correct information, it must
8
Instructions for Form 990-PF (2023)
pay $20 for each day the failure continues ($120 a day if it is a
large organization), unless it can show that the failure was due to
reasonable cause. The maximum penalty for each return won't
exceed the smaller of $12,000 ($60,000 for a large organization)
or 5% of the gross receipts of the organization for the year.
Large organization. A large organization is one that has
gross receipts exceeding $1,208,500 for the tax year.
sections 11 and 12 of Pub. 15 (Circular E), Employer’s Tax
Guide, for details.
O. Figuring and Paying Estimated Tax
A domestic exempt private foundation, a domestic taxable
private foundation, or a nonexempt charitable trust treated as a
private foundation must make estimated tax payments for the
excise tax based on investment income if it can expect its
estimated tax (section 4940 tax minus allowable credits) to be
$500 or more. The number of installment payments it must make
under the depository method is determined at the time during
the year that it first meets this requirement. For calendar-year
taxpayers, the first deposit of estimated taxes for a year should
generally be made by May 15 of the year.
Gross receipts. Gross receipts means the gross amount
received during the foundation's annual accounting period from
all sources without reduction for any costs or expenses.
To calculate the foundation's gross receipts, figure the
following.
1. Part I, line 12, column (a).
2. Add lines 6b and 10b.
3. Subtract line 6a.
Although Form 990-W is used primarily to figure the
installment payments of unrelated business income tax, it is also
used to determine the timing and amounts of installment
payments of the section 4940 tax based on investment income.
Figure separately any required deposits of excise tax based on
investment income and unrelated business income tax.
Against the responsible person. The IRS will make written
demand that the delinquent return be filed or the information
furnished within a reasonable time after the mailing of the notice
of the demand. The person failing to comply with the demand on
or before the date specified will have to pay $10 for each day the
failure continues, unless there is reasonable cause. The
maximum penalty imposed on all persons for any one return is
$6,000. If more than one person is liable for any failures, all such
persons are jointly and severally liable for such failures. See
section 6652(c) for further information.
To figure the estimated tax for the excise tax based on
investment income, see Part V. Enter the tax you figured on
line 10a of Form 990-W.
The Form 990-W line items and instructions for large
organizations also apply to private foundations. For purposes of
paying the estimated tax on net investment income, a “large
organization” is one that had net investment income of $1 million
or more for any of the 3 tax years immediately preceding the tax
year involved.
Other penalties. Because this return also satisfies the filing
requirements of a tax return under section 6011 for the tax on
investment income imposed by section 4940 (or 4948 if an
exempt foreign organization), the penalties imposed by section
6651 for not filing a return (without reasonable cause) also apply.
There are also criminal penalties for willful failure to file and
for filing fraudulent returns and statements. See sections 7203,
7206, and 7207.
Penalty. A foundation that doesn't pay the proper estimated tax
when due may be subject to the estimated tax penalty for the
period of the underpayment. See sections 6655(b) and (d) and
the Form 2220 instructions for further information.
Most tax-exempt organizations, other than churches, are
required to file an annual Form 990, 990-EZ, 990-PF, or 990-N
e-Postcard with the IRS. If an organization fails to file an annual
return or notice for 3 consecutive years, it will automatically lose
its tax-exempt status. A private foundation that loses its
exemption must file income tax returns and pay income taxes
and must file Form 990-PF as a taxable private foundation. For
With regard to figuring and paying employment taxes, see
Pub. 15 (Circular E).
Special Rules
Section 4947(a)(1) nonexempt charitable trusts. Form
1041-ES should be used to pay any estimated tax on income
subject to tax under section 1. Form 1041-ES also contains the
estimated tax rules for paying the tax on that income.
N. Penalties for Not Paying Tax on
Time
Taxable private foundations. Form 1120-W, Estimated Tax for
Corporations, should be used to figure any estimated tax on
income subject to tax under section 11. Form 1120-W contains
the estimated tax rules for paying the tax on that income.
There is a penalty for not paying tax when due (section 6651).
The penalty is generally 1/2 of 1% of the unpaid tax for each
month or part of a month the tax remains unpaid, not to exceed
25% of the unpaid tax. If there was reasonable cause for not
paying the tax on time, the penalty can be waived. However,
interest is charged on any tax not paid on time, at the rate
provided by section 6621.
P. Tax Payment Methods for Domestic
Private Foundations
The foundation must deposit all depository taxes (such as
employment tax, excise tax, and unrelated business income tax)
electronically using electronic funds transfer. Generally, such
transfers are made using the Electronic Federal Tax Payment
System (EFTPS). To get more information about EFTPS or to
contact EFTPS using the Telecommunications Relay Services
(TRS), for people who are deaf, hard of hearing, or have a
speech disability, dial 711 and provide the TRS assistant the
800-555-4477 number above or 800-733-4829. Additional
information about EFTPS is also available in Pub. 966, Electronic
Federal Tax Payment System: A Guide to Getting Started. See
below for an exception to this rule for small foundations.
Estimated tax penalty. The section 6655 penalty for failure to
pay estimated tax applies to the tax on net investment income of
domestic private foundations and section 4947(a)(1) nonexempt
charitable trusts. The penalty also applies to any tax on
unrelated business income of a private foundation. Generally, if a
private foundation's tax liability is $500 or more and it didn't
make the required payments on time, then it is subject to the
penalty.
For more details, see the discussion of Form 2220,
Depositing on time. For deposits made by EFTPS to be on
time, the foundation must generally submit the transaction at
least 1 business day before the date the deposit is due. See Pub.
A private foundation is also subject to the section 6656
penalty for failure to deposit employment taxes when due. See
9
Instructions for Form 990-PF (2023)
15 (Circular E) for information on a same-day payment option
under some circumstances.
Must allow an individual to make photocopies of documents at
•
no charge but only if the individual brings photocopying
equipment to the place of inspection.
Q. Public Inspection Requirements
Determining if a site is a regional or district office. A
regional or district office is any office of a private foundation,
other than its principal office, that has paid employees whose
total number of paid hours a week are normally 120 hours or
more. Include the hours worked by part-time (as well as full-time)
employees in making that determination.
A private foundation must make its annual returns and exemption
application available for public inspection.
Definitions
Annual returns. Annual returns include an exact copy of the
What sites aren't considered a regional or district office?
following documents as filed with the IRS.
A site isn't considered a regional or district office if:
Form 990-PF, including all schedules, attachments, and
•
supporting documents, and any amended return that is 3 or
fewer years old from:
1. The only services provided at the site further the
foundation's exempt purposes (for example, day care, health
care, or scientific or medical research); and
2. The site doesn't serve as an office for management staff,
other than managers who are involved only in managing the
exempt function activities at the site.
1. The date the original return was filed or required to be
filed, or
2. The date the return was required to be filed.
Form 990-T, if it was used to report any tax on unrelated
•
business income.
What if the private foundation doesn't maintain a perma-
nent office? If the private foundation doesn't maintain a
permanent office, it will comply with the public inspection by
office visitation requirement by making the annual returns and
exemption application available at a reasonable location of its
choice. It must permit public inspection:
Exemption application. An application for tax exemption
includes (except as described later):
Any prescribed application form (such as Form 1023 or Form
•
1024),
Any letter application where a form isn't required,
•
•
All documents and statements the IRS requires an applicant
Within a reasonable amount of time after receiving a request
•
to file with the form or letter application,
for inspection (normally, not more than 2 weeks), and
Any statement or other supporting document submitted in
•
At a reasonable time of day.
•
support of the application, and
Any letter or other document issued by the IRS concerning the
Optional method of complying. If a private foundation that
•
doesn't have a permanent office wishes not to allow an
inspection by office visitation, it may mail a copy of the requested
documents instead of allowing an inspection. However, it must
mail the documents within 2 weeks of receiving the request and
may charge for copying and postage only if the requester
consents to the charge.
application.
An application for tax exemption doesn't include:
Any application for tax exemption filed before July 15, 1987,
•
unless the private foundation filing the application had a copy of
the application on July 15, 1987; or
Any material that isn't available for public inspection under
•
Private foundations with a permanent office but limited
or no hours. Even if a private foundation has a permanent
office but no office hours or very limited hours during certain
times of the year, it must still meet the office visitation
requirement. To meet this requirement during those periods
when office hours are limited or not available, follow the rules
permanent office, earlier.
section 6104.
Who Must Make the Annual Returns and
Exemption Application Available for Public
Inspection?
The foundation's Form 990-PF, Form 990-T, and exemption
application must be made available to the public by the
foundation and the IRS.
Public Inspection—Providing Copies
How Does a Private Foundation Make Its Annual
Returns and Exemption Application Available
for Public Inspection?
A private foundation must provide copies of its annual returns or
exemption application to any individual who makes a request for
a copy in person or in writing unless it makes these documents
widely available.
A private foundation must make its annual returns and exemption
application available in three ways.
In-person requests for document copies. A private
foundation must provide copies to any individual who makes a
request in person at the private foundation's principal, regional,
or district offices during regular business hours on the same day
that the individual makes the request.
By office visitation.
By providing copies.
By Internet posting.
•
•
•
Public Inspection by Office Visitation
Accepted delay in fulfilling an in-person request. If
unusual circumstances exist and fulfilling a request on the same
day places an unreasonable burden on the private foundation, it
must provide copies by the earlier of:
A private foundation must make its annual returns and exemption
application available for public inspection without charge at its
principal, regional, and district offices during regular business
hours.
The next business day following the day that the unusual
•
circumstances end, or
The fifth business day after the date of the request.
•
Conditions that may be set for public inspection at the of-
Examples of unusual circumstances include:
fice. A private foundation:
Receipt of a volume of requests (for document copies) that
May have an employee present,
•
•
exceeds the private foundation's daily capacity to make copies,
Must allow the individual conducting the inspection to take
•
Requests received shortly before the end of regular business
notes freely during the inspection, and
•
hours that require an extensive amount of copying, or
10
Instructions for Form 990-PF (2023)
Requests received on a day when the organization's
Example. The ABC Foundation retained an agent to provide
copies for all written requests for documents. However, ABC
Foundation received a request for document copies before the
agent did.
The deadline for providing a response is referenced by the
date the ABC Foundation received the request and not when the
agent received it. If the agent received the request first, then a
response would be referenced to the date the agent received it.
•
managerial staff capable of fulfilling the request is conducting
official duties (for instance, student registration or attending an
off-site meeting or convention) instead of its regular
administrative duties.
Use of local agents for providing copies. A private
foundation may use a local agent to handle in-person requests
for document copies. If a private foundation uses a local agent, it
must immediately provide the local agent's name, address, and
telephone number to the requester.
Can a fee be charged for providing copies? A private
foundation may charge a reasonable fee for providing copies.
Also, it can require the fee to be paid before providing a copy of
the requested document.
What is a reasonable fee? A fee is reasonable only if it is no
more than the per-page copying fee charged by the IRS for
providing copies, plus no more than the actual postage costs
incurred to provide the copies.
What forms of payment must the private foundation
accept? The form of payment depends on whether the request
for copies is made in person or in writing.
Cash and money orders must be accepted for in-person
requests for document copies. The private foundation, if it
wishes, may accept additional forms of payment.
A certified check, money order, and either a personal check
or credit card must be accepted for written requests for
document copies. The private foundation, if it wishes, may
accept additional forms of payment.
Other fee information. If a private foundation provides a
requester with notice of a fee and the requester doesn't pay the
fee within 30 days, the private foundation may ignore the
request.
The local agent must:
Be located within reasonable proximity to the principal,
•
regional, or district office where the individual makes the request;
and
Provide document copies within the same time frames as the
•
private foundation.
Written requests for document copies. If a private foundation
receives a written request for a copy of its annual returns or
exemption application (or parts of these documents), it must give
a copy to the requester. However, this rule only applies if the
request:
Is addressed to a private foundation's principal, regional, or
•
district office;
Is delivered to that address by mail, electronic mail (email),
•
facsimile (fax), or a private delivery service approved by the IRS
Gives the address to which the document copies should be
•
sent.
How and when a written request is fulfilled. Requested
document copies must be mailed within 30 days from the date
the private foundation receives the request.
If a requester's check doesn't clear on deposit, the private
Unless other evidence exists, a mailed request or payment is
considered to be received by the private foundation 7 days after
the postmark date.
foundation may ignore the request.
If a private foundation doesn't require prepayment and the
requester doesn't prepay, the private foundation must receive
consent from the requester if the copying and postage charge
exceeds $20.
If an advance payment is required, copies must be provided
within 30 days from the date payment is received.
If the private foundation requires payment in advance and it
receives a request without payment or with insufficient payment,
it must notify the requester of the prepayment policy and the
amount due within 7 days from the date it receives the request.
A request that is transmitted to the private foundation by email
or fax is considered received the day the request is transmitted
successfully.
Requested documents can be emailed instead of the
traditional method of mailing if the requester consents to this
method.
Private foundations subject to a harassment campaign. If
the IRS determines that a private foundation is being harassed, it
isn't required to comply with any request for copies that it
reasonably believes is part of the harassment campaign.
A group of requests for a private foundation's annual returns
or exemption application is indicative of a harassment campaign
if the requests are part of a single coordinated effort to disrupt
the operations of the private foundation rather than to collect
information about it.
See Regulations section 301.6104(d)-3 for more information.
A document copy is considered as provided on the:
Postmark date,
•
•
•
•
Requests that may be disregarded without IRS approval. A
private foundation may 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.
Private delivery date,
Registration date for certified or registered mail,
Postmark date on the sender's receipt for certified or
registered mail, or
Day the email is successfully transmitted (if the requester
•
agreed to this method).
Making the Annual Returns and Exemption
Application Widely Available
Requests for parts of a document copy. A person can
request all or any specific part or schedule of the annual returns
or exemption application, and the private foundation must fulfill
the person's request for a copy.
A private foundation doesn't have to provide copies of its annual
returns and/or its exemption application if it makes these
documents widely available. However, it must still allow public
inspection by office visitation.
Can an agent be used to provide copies? A private
foundation can use an agent to provide document copies for the
written requests it receives. However, the agent must provide the
document copies under the same conditions imposed on the
private foundation itself. Also, if an agent fails to provide the
documents as required, the private foundation will continue to be
subject to penalties.
How does a private foundation make its annual returns and
exemption application widely available? A private
foundation's annual returns and/or exemption application is
widely available if it meets all four of the following requirements.
1. Internet posting requirement—This is met if:
11
Instructions for Form 990-PF (2023)
The document is posted on the foundation's website, or
The document is posted as part of a database of like
could be obtained by the individual from a federal government
agency free or for a nominal charge must disclose that fact
conspicuously when making such offer or solicitation.
Any organization that intentionally disregards this requirement
will be subject to a penalty for each day the offers or solicitations
are made. The penalty is the greater of $1,000 or 50% of the
total cost of the offers and solicitations made on that day.
•
•
documents of other tax-exempt organizations on a website
established and maintained by another entity.
2. Additional posting information requirement—This is met if:
The website through which the document is available clearly
•
informs readers that the document is available and provides
instructions for downloading the document;
After it is downloaded and viewed, the web document exactly
S. Organizations Organized or
Created in a Foreign Country
•
reproduces the image of the annual returns or exemption
application as it was originally filed with the IRS, except for any
information permitted by statute to be withheld from public
disclosure; and
If the organization applies any provision of any U.S. tax treaty to
figure the foundation's taxable income, tax liability, or tax credits
in a manner different from these instructions, attach an
explanation.
Any individual with access to the Internet can access,
•
download, view, and print the document without special
computer hardware or software required for that format (except
software that is readily available to members of the public
without payment of any fee) and without payment of a fee to the
private foundation or to another entity maintaining the web page.
Section 4948(a) imposes a 4% tax on the gross investment
income (but not capital gain net income) of an exempt foreign
private foundation from U.S. sources, such as dividends;
interest; rents; payments received on securities loans, as defined
in section 512(a)(5); and royalties. Amounts taken into income
on Form 990-T are excepted. The section 4948(a) tax replaces
the section 4940 tax on the net investment income of a domestic
private foundation. A foreign foundation doesn't complete Form
990-PF, Part IV.
Under section 4948(b), sections 507 and 508 and chapter 42
(other than section 4948) don't apply to a foreign organization
that from the date of its creation has received at least 85% of its
support (as defined in section 509(d), excluding gross
3. Reliability and accuracy requirements—To meet this, the
entity maintaining the website must:
Have procedures for ensuring the reliability and accuracy of
•
the document that it posts on the page;
Take reasonable precautions to prevent alteration,
•
destruction, or accidental loss of the document when posted on
its page; and
Correct or replace the document if a posted document is
•
altered, destroyed, or lost.
4. Notice requirement—To meet this, a private foundation
must notify any individual requesting copies of its annual returns
and/or exemption application where the documents are available
(including the Internet address). If the request is made in person,
the private foundation must notify the individual immediately. If
the request is in writing, it must notify the individual within 7 days
of receiving the request.
investment income) from sources outside the United States. The
foreign foundation's section 501(c)(3) status can be revoked,
however, if it commits a violation of chapter 42 (other than
section 4942) after receiving a warning of a violation from the
IRS, or if it commits a willful and flagrant violation. A foreign
foundation described in section 4948(b) doesn't complete Form
990-PF, Parts IX (unless claiming status as an operating
foundation), X, XII, and XIV; isn't required to send a copy of its
annual return to a state official; and isn't required to comply with
the public inspection requirements for annual returns (see G.
Public Inspection Requirements, earlier). The foundation must
attach a computation of the 85% test to the return.
Taxable foreign private foundations and foreign section
4947(a)(1) nonexempt charitable trusts aren't subject to excise
tax under section 4948(a) or 4940, but are subject to income tax
under subtitle A of the Code.
For these purposes, U.S. territories are considered part of the
United States, and thus territories' organizations aren't
considered foreign organizations.
Penalties
A penalty may be imposed on any person who doesn't make the
annual returns (including all required attachments to each return)
or the exemption application available for public inspection
according to the section 6104(d) rules discussed above. If more
than one person fails to comply, each person is jointly and
severally liable for the full amount of the penalty. The penalty
amount is $20 for each day during which a failure occurs. The
maximum penalty that may be imposed on all persons for any
one annual return is $12,000. There is no maximum penalty
amount for failure to make the exemption application available for
public inspection.
T. Liquidation, Dissolution,
Termination, or Substantial
Contraction
Any person who willfully fails to comply with the section
6104(d) public inspection requirements is subject to an
additional penalty of $5,000.
If there is a liquidation, dissolution, termination, or substantial
contraction (defined below) of the organization, attach the
following to the return.
Requirements Placed on the IRS
The IRS makes available a private foundation's Form 990-PF,
Form 990-T, and approved exemption application. You may view
exempt organization forms free of charge on Tax Exempt
the IRS to obtain a copy of a return if it is not available online.
Complete information is available on the IRS website at IRS.gov/
A statement to the return that describes the transaction.
A certified copy of the liquidation plan, resolution, etc. (if any)
•
•
and all amendments or supplements that weren't previously filed.
•
A schedule that lists the names and addresses of all
recipients of assets.
An explanation of the nature and fair market value of the
•
assets distributed to each recipient.
R. Disclosures Regarding Certain
Information and Services Furnished
Additional requirements. For a complete corporate liquidation
or trust termination, attach a statement as to whether a final
distribution of assets was made and the date it was made (if
applicable).
A section 501(c) organization that offers to sell or solicits money
for specific information or a routine service to any individual that
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Instructions for Form 990-PF (2023)
Also, an organization must indicate:
An organization gives the IRS notice of termination under
section 507(b)(1)(B) by submitting Form 8940, Request for
Miscellaneous Determinations, on which it provides the
information set forth in Regulations section 1.507-2(b)(3).
That it has ceased to exist and check Final return in Item G of
•
the Heading section on page 1 of the return; or
That it is terminating its private foundation status under
•
section 507(b)(1)(B), according to U. Section 507(b)(1)(B)
or
An organization may also give the notice with a request for an
advance ruling that the organization can be expected to meet the
requirements of public charity status during the 60-month period.
Form 8940, Request for Miscellaneous Determination, is also
used for this purpose. No user fee is required to provide the
required notice, but a user fee is required if an advance ruling is
requested. See the Instructions for Form 8940 for more
information.The advantage of an advance ruling is that the
organization’s grantors and contributors can generally rely on it
during the 60-month period, and the ruling constitutes
reasonable cause for abatement of penalties for failure to pay
section 4940 tax during the period. The organization itself can't
rely on the ruling to avoid private foundation status during or after
the 60-month period.
Although an organization terminating its private foundation
status under section 507(b)(1)(B) may be regarded as a public
charity for certain purposes, it is considered a private foundation
for filing requirement purposes and must file an annual return on
Form 990-PF. The return must be filed for each year in the
60-month termination period, if that period hasn't expired before
the due date of the return.
Within 90 days after the end of the termination period, the
organization must supply information to the IRS establishing that
it has terminated its private foundation status and, as a result,
qualifies as a public charity. This information is provided on Form
8940.
If information is furnished establishing a successful
termination, then, for the final year of the termination period, the
organization should comply with the filing requirements for the
type of public charity it has become. See the Instructions for
Form 990 and the Instructions for Schedule A (Form 990 or
990-EZ) for details on filing requirements. This applies even if the
IRS hasn't confirmed that the organization has terminated its
private foundation status by the time the return for the final year
of the termination is due (or would be due if a return were
required).
That it is voluntarily terminating its private foundation status
•
under section 507(a)(1) and owes a termination tax and must
send the notice (and tax payment, if applicable) required by Rev.
Rul. 2003-13, 2003-4 I.R.B. 305, and Rev. Rul. 2002-28,
2002-20 I.R.B. 941, to the Manager, Exempt Organizations
Determinations, at the address given in U. Section 507(b)(1)(B)
Relief from public inspection requirements. If the
organization has terminated its private foundation status under
section 507(b)(1)(A), it doesn't have to comply with the notice
and public inspection requirements of the return for the
termination year.
date.
Definitions. The term “substantial contraction” includes any
partial liquidation or any other significant disposition of assets.
However, this doesn't include transfers for full and adequate
consideration or distributions of current income.
A significant disposition of assets doesn't include any
disposition for a tax year if:
1. The total of the dispositions for the tax year is less than
25% of the fair market value of the net assets of the organization
at the beginning of the tax year, and
2. The total of the related dispositions made during prior tax
years (if a disposition is part of a series of related dispositions
made during these prior tax years) is less than 25% of the fair
market value of the net assets of the organization at the
beginning of the tax year in which any of the series of related
dispositions was made.
The facts and circumstances of the particular case will
determine whether a significant disposition has occurred through
a series of related dispositions. Ordinarily, a distribution
described in section 170(b)(1)(F)(ii) (relating to private
foundations making qualifying distributions out of corpus equal
to 100% of contributions received during the foundation's tax
year) won't be taken into account as a significant disposition of
assets. See Regulations section 1.170A-9(h)(2).
The organization will be allowed a reasonable period of time
to file any private foundation returns required (for the last year of
the termination period) but not previously filed if it is later
determined that the organization didn't terminate its private
foundation status. Interest on any tax due will be charged from
the original due date of Form 990-PF, but penalties under
sections 6651 and 6652 won't be assessed if Form 990-PF is
filed within the period allowed by the IRS.
U. Section 507(b)(1)(B)
Termination—Notice and Filing
Requirements
V. Payment of Section 4940 Tax
During Section 507(b)(1)(B)
Termination
A private foundation or nonexempt charitable trust (other than a
foundation or trust described in section 4948(b)) may terminate
its private foundation status under section 507(b)(1)(B) by
meeting the requirements of public charity status under section
509(a)(1), (2), or (3) over a continuous 60-month period that
begins with the beginning of a tax year of the organization. The
organization must give proper notice to the IRS prior to the start
of the 60-month period, and establish to the satisfaction of the
IRS within 90 days after the end of the 60-month period that it so
qualified.
An organization terminating its private foundation status under
section 507(b)(1)(B) may file Form 990-PF without paying the
section 4940 tax based on investment income if it filed a consent
under section 6501(c)(4) with its notice of termination prior to the
start of the 60-month period. The consent provides that the
period of limitation on the assessment of tax under chapter 42,
based on investment income for any tax year in the 60-month
period, won't expire until at least 1 year after the period for
assessing a deficiency for the last tax year in which the
60-month period would normally expire. Any foundation not
paying the tax when it files Form 990-PF must attach a copy of
the signed consent.
If the organization fails to qualify as a public charity over the
entire 60-month period, then it will be treated as a private
foundation after the end of the 60-month period, and for any tax
year within the 60-month period in which it didn't qualify as a
public charity.
If the foundation didn't file the consent, the tax must be paid in
the normal manner as explained in O. Figuring and Paying
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Instructions for Form 990-PF (2023)
Foundations, earlier. The organization may file a claim for refund
after completing termination or during the termination period.
The claim for refund must be filed on time and the organization
must supply information establishing that it qualified as a public
charity for the period for which it paid the tax.
telephone, enter a telephone number of a foundation official who
can provide this information during normal business hours.
Item D2. Foreign Organizations
If the foreign organization meets the 85% test of Regulations
section 53.4948-1(b), then:
Check the box in D2 in the Heading section on page 1 of Form
•
W. Rounding, Currency, and
Attachments
Rounding off to whole dollars. You must round off cents to
whole dollars on your return and schedules. To round, drop
amounts under 50 cents and increase amounts from 50 to 99
cents to the next dollar. For example, $1.39 becomes $1 and
$2.50 becomes $3.
990-PF,
Check the box at the top of Part X,
•
•
•
Don’t fill in Parts X and XII,
Don’t fill in Part IX unless it is claiming status as a private
operating foundation, and
Attach the computation of the 85% test to Form 990-PF.
•
Note. In addition to these requirements, foreign organizations
checking the box in D1 of the Heading on Form 990-PF don't
Complete, earlier, for more details.
If you have 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.
Currency and language requirements. Report all amounts in
U.S. dollars. State the conversion rate used. Report all items in
total, including amounts from both U.S. and non-U.S. sources.
All information must be in English.
Item E. Section 507(b)(1)(A) Terminations
A private foundation that has terminated its private foundation
status under section 507(b)(1)(A) during the tax year being
reported, by distributing all its net assets to one or more public
charities without keeping any right, title, or interest in those
assets, should check this box. See Q. Public Inspection
Substantial Contraction, earlier.
Attachments. Use the schedules on Form 990-PF. If you need
more space, use attachments that are the same size as the
printed forms.
On each attachment, write:
“Form 990-PF,”
•
•
•
•
•
Item F. 60-Month Termination Under Section
507(b)(1)(B)
The tax year,
The corresponding schedule number or letter,
The organization's name and EIN, and
The information requested using the format and line sequence
Check this box if the organization is terminating its private
foundation status under the 60-month provisions of section
507(b)(1)(B) during the period covered by this return. To begin
such a termination, a private foundation must have given
advance notice to TE/GE at the Cincinnati address given earlier
and provided the information outlined in Regulations section
and Filing Requirements, earlier, for information regarding filing
requirements during a section 507(b)(1)(B) termination.
of the printed form.
Also, show totals on the printed forms.
Specific Instructions
Heading
tax based on investment income (figured in Part V) during a
section 507(b)(1)(B) termination.
Name and Address
If the organization operates under a name different from its legal
name, give the legal name of the organization but identify its
alternate name, after the legal name, by writing “aka” (also
known as) and the alternate name of the organization. The
address used must be that of the principal office of the
foundation.
Item G. Initial Return of Certain Former Public
Charities
If this is the initial Form 990-PF return of a former public charity
under section 170(b)(1)(A)(vi) or 509(a)(2) or 509(a)(3), then the
organization is treated as a private foundation for the tax year
being reported only for purposes of section 6033 (filing Form
990-PF), section 4940 (paying excise tax on investment income),
and section 507 (terminating private foundation status).
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, show the box
number instead of the street address.
Item A. Employer Identification Number
The organization should have only one EIN. If it has more than
one EIN, notify the Internal Revenue Service Center at the
what numbers the organization has, the name and address to
which each number was assigned, and the address of the
organization's principal office. The IRS will then advise which
number to use.
Item H. Type of Organization
Check the box for “Section 501(c)(3) exempt private foundation”
if the foundation has a ruling or determination letter from the IRS
in effect that recognizes its exemption from federal income tax as
an organization described in section 501(c)(3) or if the
organization's exemption application is pending with the IRS.
Check the “Section 4947(a)(1) nonexempt charitable trust”
box if the trust is a nonexempt charitable trust treated as a
private foundation. All others, check the “Other taxable private
foundation” box.
Item B. Telephone Number
Enter a foundation telephone number (including the area code)
that the public and government regulators may use to obtain
information about the foundation's finances and activities. This
information should be available at this telephone number during
normal business hours. If the foundation doesn't have a
14
Instructions for Form 990-PF (2023)
For example, investment income from debt-financed property
unrelated to the organization's charitable purpose and certain
rents (and related expenses) treated as unrelated trade or
business income should be reported on Form 990-T. Income
from debt-financed property that isn't taxed under section 511 is
taxed under section 4940. Thus, if the debt/basis percentage of
a debt-financed property is 80%, only 80% of the gross income
(and expenses) for that property is used to figure the section 511
tax on Form 990-T. The remaining 20% of the gross income (and
expenses) of that property is used to figure the section 4940 tax
on net investment income on Form 990-PF. (See Form 990-T
and its instructions for more information.)
Item I. Fair Market Value of All Assets
In Item I in the Heading on page 1 of Form 990-PF, enter the fair
market value of all assets the foundation held at the end of the
tax year.
This amount should be the same as the figure reported
in Part II, line 16, column (c).
TIP
Part I. Analysis of Revenue and
Expenses
Investment expenses. Include in column (b) all ordinary and
necessary expenses paid or incurred to produce or collect
investment income from interest, dividends, rents, amounts
received from payments on securities loans (as defined in
section 512(a)(5)), royalties, income from notional principal
contracts, annuities, substantially similar income from ordinary
and routine investments, and income from similar sources; or for
the management, conservation, or maintenance of property held
for the production of income that is taxable under section 4940.
Column Instructions
The total of amounts in columns (b), (c), and (d) (or any
combination of them, such as columns (b) and (d)) may differ
from the amount in column (a).
The amounts entered in column (a) and on line 5b must be
analyzed in Part XV-A.
Column (a). Revenue and Expenses per Books
If any of the expenses listed in column (a) are paid or incurred
for both investment and charitable purposes, they must be
allocated on a reasonable basis between the investment
activities and the charitable activities so that only expenses from
investment activities appear in column (b). Examples of
allocation methods are given in the instructions for Part VIII-A.
Limitation. The deduction for expenses paid or incurred in
any tax year for producing gross investment income earned
incident to a charitable function can't be more than income
earned from the function includible as gross investment income
for the year.
For example, if rental income is incidentally realized in 2021
from historic buildings held open to the public, deductions for
amounts paid or incurred in 2021 for the production of this
income may not be more than the amount of rental income
includible as gross investment income in column (b) for 2021.
Expenses related to tax-exempt interest. Don’t include on
lines 13–23 of column (b) any expenses paid or incurred that are
allocable to tax-exempt interest that is excluded from lines 3 and
4.
Enter in column (a) all items of revenue and expense shown in
the books and records that increased or decreased the net
assets of the organization. However, don't include the value of
services donated to the foundation or items such as free use of
equipment or facilities in contributions received. Also, don't
include any expenses used to figure capital gains and losses on
lines 6, 7, and 8 or expenses included in cost of goods sold on
line 10b. For foundations that don't use the cash method of
accounting for book purposes, charitable expenditures reported
in column (a) won't necessarily match amounts reported in
column (d).
Column (b). Net Investment Income
All domestic private foundations (including section 4947(a)(1)
nonexempt charitable trusts) are required to pay an excise tax
each tax year on net investment income.
Exempt foreign foundations are subject to an excise tax on
gross investment income from U.S. sources. These foreign
organizations should complete lines 3, 4, 5a, 5b, 11, 12, and 27b
of column (b) and report only income derived from U.S. sources.
No other income should be included. No expenses are allowed
as deductions.
If the foundation is a partner in a partnership, then
pertinent items of income, gain, loss, deduction, or credit
from the entity's Schedule K-1 (Form 1065) should
TIP
generally be reported in columns (b) and (c) for the tax year of
the entity ending with or within the foundation's tax year. See
Regulations sections 53.4940-1(c)(1) and 53.4942(a)-2(d)(1).
Definitions. See below.
Gross investment income. Gross investment income is the
total amount of investment income that was received by a private
foundation from all sources. However, it doesn't include any
income subject to the unrelated business income tax. It includes
interest, dividends, rents, payments with respect to securities
loans (as defined in section 512(a)(5)), royalties received from
assets devoted to charitable activities, income from notional
principal contracts (as defined in Regulations section 1.863-7),
annuities, substantially similar income from ordinary and routine
investments, and income from similar sources. Therefore,
interest received on a student loan is includible in the gross
investment income of a private foundation making the loan.
Net investment income. Net investment income is the
amount by which the sum of gross investment income and the
capital gain net income exceeds the allowable deductions
discussed later. Tax-exempt interest on governmental obligations
and related expenses are excluded.
By contrast, if the foundation is a beneficiary of a trust,
distributions from the trust aren't included in income in column
(c) if the trust was created and funded by a person other than the
foundation, and aren't included in column (b). See Regulations
section 53.4942(a)-2(d)(2)(vii) and Notice 2004-35, 2004-19
Column (c). Adjusted Net Income
Nonoperating private foundations should see
Nonoperating private foundations, later, to find out if they
TIP
need to complete column (c).
Private operating foundations. All organizations that claim
status as private operating foundations under section 4942(j)(3)
or (5) must complete all lines of column (c) that apply, according
to the general rules for income and expenses that apply to this
column, the specific line instructions for lines 3–27c, the Special
Investment income. Include in column (b) all or part of any
amount from column (a) that applies to investment income.
However, don't include in column (b) any income and related
expenses reported on Form 990-T.
15
Instructions for Form 990-PF (2023)
Use the cash receipts and disbursements method of
•
General rules. In general, adjusted net income is the amount of
a private foundation's gross income that is more than the
expenses of earning the income. The modifications and
exclusions explained below are applied to gross income and
expenses in figuring adjusted net income.
For income and expenses, include on each line of column (c)
only that portion of the amount from column (a) allocable to the
adjusted net income computation.
Income. For column (c), include income from charitable
functions, investments, related and unrelated business, and
amounts set aside; short-term capital gains and losses;
recoveries of amounts that were treated as qualifying
distributions in prior tax years; and amounts set aside that are
determined not to be needed for the purposes for which they
were set aside. Don’t include gifts, grants or contributions, or
long-term capital gains or losses.
Expenses. Deductible expenses include the part of a private
foundation's operating expenses paid or incurred to produce or
collect gross income reported on lines 3–11 of column (c). If only
part of the property produces income includible in column (c),
deductions such as interest, taxes, and rent must be divided
between the charitable and noncharitable uses of the property. If
the deductions for property used for a charitable, educational, or
other similar purpose are more than the income from the
property, the excess won't be allowed as a deduction but may be
treated as a qualifying distribution in Part I, column (d). See
Examples 1 and 2, below.
accounting no matter what accounting method is used in
keeping the books of the foundation;
Don’t include any amount or part of an amount included in
•
column (b) or (c);
Include on lines 13–25 all expenses, including necessary and
•
reasonable administrative expenses, paid by the foundation for
religious, charitable, scientific, literary, educational, or other
public purposes, or for the prevention of cruelty to children or
animals;
Include a distribution of property at the fair market value on
•
the date the distribution was made; and
Include only the part entered in column (a) that is allocable to
•
the charitable purposes of the foundation.
Example. An educational seminar produced $1,000 in
income that was reportable in columns (a) and (c). Expenses
attributable to this charitable activity were $1,900. Only $1,000 of
expense should be reported in column (c) and the remaining
$900 in expense should be reported in column (d).
Qualifying distributions. Generally, amounts paid to
accomplish the foundation’s exempt purposes are qualifying
distributions. Special rules apply in certain situations—see the
line 25, column (d), instructions.
The total of the expenses and disbursements on line 26
is also entered on line 1a in Part XI to figure qualifying
distributions.
TIP
Alternative to completing lines 13–25. If you want to provide
an analysis of disbursements that is more detailed than column
(d), you may attach a schedule instead of completing lines 13–
25. The schedule must include all the specific items of lines 13–
25, and the total from the schedule must be entered on line 26,
column (d).
Special rule. The expenses attributable to each specific
charitable activity, limited by the amount of income from the
activity, must be reported in column (c) on lines 13–26. If the
expenses of any charitable activity exceed the income generated
by that activity, only the excess of these expenses over the
income should be reported in column (d).
Examples.
Line Instructions
Line 1. Contributions, gifts, grants, etc., received. Enter the
total of gross contributions, gifts, grants, and similar amounts
received.
1. A charitable activity generated $5,000 of income and
$4,000 of expenses. Report all income and expenses in column
(c) and none in column (d).
2. A charitable activity generated $5,000 of income and
$6,000 of expenses. Report $5,000 of income and $5,000 of
expenses in column (c) and the excess expenses of $1,000 in
column (d).
The Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) established the Paycheck Protection
TIP
Program (PPP) to provide loans to small businesses as a
direct incentive to keep their workers on the payroll. The loans
are forgiven if all employee retention criteria are met and the
funds are used for eligible expenses. Amounts of PPP loans that
are forgiven may be reported on line 1 as contributions from a
governmental unit in the taxable year that the amounts are
forgiven or at such other time as provided in Rev. Proc. 2021-48,
2021-49 I.R.B. 835.
Nonoperating private foundations. A foundation that doesn't
claim status as a private operating foundation isn't required to
complete column (c) unless either of the following applies.
1. The foundation received income from a charitable activity
and wishes to claim a qualifying distribution for expenses
incurred in the activity in excess of the income. The foundation
must report such income only on lines 10 and/or 11 in column
(c), and any expenses relating to this income following the
above. The foundation need not report other kinds of income and
expenses (such as investment income and expenses) in column
(c).
Schedule B (Form 990). If money, securities, or other
property valued at $5,000 or more was received directly or
indirectly from any one person during the year, complete
Schedule B and attach it to the return. If the foundation isn't
required to complete Schedule B (no person contributed $5,000
or more), be sure to check the box on line 2.
To determine whether a person has contributed $5,000 or
more, total only gifts of $1,000 or more from each person.
Separate and independent gifts need not be totaled if less than
$1,000. If a contribution is in the form of property, describe the
property and include its fair market value.
The term “person” includes individuals, fiduciaries,
partnerships, corporations, associations, trusts, and exempt
organizations.
Split-interest trusts. Distributions from split-interest trusts
should be entered on line 1, column (a). They are a part of the
amount on line 1.
2. The foundation claims status under section 170(b)(1)(F)
(iii) (relating to foundations that maintain a common fund). The
foundation must complete all lines of column (c) that apply.
Column (d). Disbursements for Charitable
Purposes
Expenses entered in column (d) relate to activities that constitute
the charitable purpose(s) of the foundation.
For amounts entered in column (d):
16
Instructions for Form 990-PF (2023)
Substantiation requirements. An organization must keep
ratably over the life of the bond on line 4. See section 1272 for
more information.
records, as required by the regulations under section 170.
In column (b). Enter the amount of dividend and interest
income and payments on securities loans from column (a). Don’t
include interest on tax-exempt government obligations.
In column (c). Enter the amount of dividend and interest
income and payments on securities loans from column (a).
Include interest on tax-exempt government obligations.
Generally, a donor making a charitable contribution of $250 or
more won't be allowed a federal income tax deduction unless the
donor obtains a written acknowledgment from the donee
organization by the earlier of the date on which the donor files a
tax return for the tax year in which the contribution was made or
the due date, including extensions, for filing that return. However,
see section 170(f)(8)(D) and Regulations section 1.170A-13(f)
for exceptions to this rule.
Line 5a. Gross rents. Enter in the columns below.
In column (a). Enter the gross rental income for the year
from investment property reportable in Part II, line 11.
In columns (b) and (c). Enter the gross rental income from
column (a).
The written acknowledgment the foundation provides to the
donor must show:
1. The amount of cash contributed;
2. A description of any property contributed;
Line 5b. Net rental income or (loss). Figure the net rental
income or (loss) for the year and enter that amount on the entry
line to the left of column (a).
3. Whether the foundation provided any goods or services to
the donor; and
Report rents from other sources on line 11. Enter any
expenses attributable to the rental income reported on line 5,
such as interest and depreciation, on lines 13–23.
4. A description and a good-faith estimate of the value of
any goods or services the foundation gave in return for the
contribution, unless:
a. The goods and services have insubstantial value, or
Line 6a. Net gain or (loss) from sale of assets. Enter the net
gain or (loss) per books from all asset sales not included on
line 10.
b. A statement is included that these goods and services
consist solely of intangible religious benefits.
For assets sold and not included in Part IV, attach a schedule
Generally, if a charitable organization solicits or receives a
contribution of more than $75 for which it gives the donor
something in return (a quid pro quo contribution), the
organization must inform the donor, by written statement, that the
amount of the contribution deductible for federal income tax
purposes is limited to the amount by which the contribution
exceeds the value of the goods or services received by the
donor. The written statement must also provide the donor with a
good-faith estimate of the value of goods or services given in
return for the contribution.
Penalties. An organization that doesn't make the required
disclosure for each quid pro quo contribution will incur a penalty
of $10 for each failure, not to exceed $5,000 for a particular
fundraising event or mailing, unless it can show reasonable
cause for not providing the disclosure.
For more information. See Regulations section 1.170A-13
for more information on charitable recordkeeping and
substantiation requirements.
showing:
Date acquired;
•
•
•
•
Manner of acquisition;
Gross sales price;
Cost, other basis, or value at time of acquisition (if donated)
and which of these methods was used;
Date sold;
•
•
•
To whom sold;
Expense of sale and cost of improvements made subsequent
to acquisition; and
Depreciation since acquisition (if depreciable property).
•
Line 6b. Gross sales price for all assets on line 6a. Enter
the gross sales price from all asset sales whose net gain or loss
was reported on line 6a.
Line 7. Capital gain net income. Enter the capital gain net
income from Part IV, line 2. See the Part IV instructions.
Line 8. Net short-term capital gain. Include only net
short-term capital gain for the year (assets sold or exchanged
that were held not more than 1 year). Don’t include net long-term
capital gain or net loss in column (c).
Don’t include on line 8 a net gain from the sale or exchange of
depreciable property, or land used in a trade or business
(section 1231) and held for more than 1 year. However, include
net loss from such property on line 23 as an Other expense.
In general, foundations may carry to line 8 the net short-term
capital gain reported in Part IV, line 3. However, if the foundation
had any short-term capital gain from sales of debt-financed
property, add it to the amount reported in Part IV, line 3, to figure
the amount to include on line 8. For information dealing with
“debt-financed property,” see the Instructions for Form 990-T.
Line 2. Check this box if the foundation isn't required to attach
Schedule B.
Line 3. Interest on savings and temporary cash invest-
ments. Enter in the columns below.
In column (a). Enter the total amount of interest income from
investments reportable in Part II, line 2. These include savings or
other interest-bearing accounts and temporary cash
investments, such as money market funds, commercial paper,
certificates of deposit, and U.S. Treasury bills or other
government obligations that mature in less than 1 year.
In column (b). Enter the amount of interest income shown in
column (a). Don’t include interest on tax-exempt government
obligations.
In column (c). Enter the amount of interest income shown in
column (a). Include interest on tax-exempt government
obligations.
Only private operating foundations report their
short-term capital gains on line 8.
TIP
Line 4. Dividends and interest from securities. Enter in the
columns below.
Line 9. Income modifications. Include on this line:
1. Amounts received or accrued as repayments of amounts
In column (a). Enter the amount of dividend and interest
income from securities (stocks and bonds) reportable in Part II,
line 10. Include amounts received from payments on securities
loans, as defined in section 512(a)(5). Don’t include any capital
gain dividends reportable on line 6a. Report income from
program-related investments on line 11. For debt instruments
with an original issue discount, report the original issue discount
taken into account as qualifying distributions;
2. Amounts received or accrued from the sale or other
disposition of property to the extent that the acquisition of the
property was considered a qualifying distribution for any tax
year;
17
Instructions for Form 990-PF (2023)
3. Any amount set aside for a specific project (see
explanation in the instructions for Part XI) that wasn't necessary
for the purposes for which it was set aside;
4. Income received from an estate, but only if the estate was
considered terminated for income tax purposes due to a
prolonged administration period; and
In columns (b), (c), and (d). Enter the portion of the
compensation included in column (a) that is applicable to the
column. For example, in column (c), enter the portion of the
compensation included in column (a) paid or incurred to produce
or collect income included in column (c).
Line 14. Other employee salaries and wages. Enter the
salaries and wages of all employees other than those included
on line 13.
5. Amounts treated in an earlier tax year as qualifying
distributions to:
Employee leasing companies and professional employer
organizations. In some cases, 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 or a professional employer organization (whether or
not certified under the Certified Professional Employer
Organization Program (CPEO)) as the organization's own
employees and should report the compensation and other items
in Part IV as if the organization had paid the officers, directors,
trustees, and key employees directly. For more information, visit
IRS.gov/CPEO. An employee is defined as, 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.
A nonoperating private foundation if the amounts weren't
•
redistributed by the grantee organization by the close of its tax
year following the year in which it received the funds, or
An organization controlled by the distributing foundation or a
•
disqualified person if the amounts weren't redistributed by the
grantee organization by the close of its tax year following the
year in which it received the funds.
Lines 10a, b, c. Gross profit from sales of inventory. Enter
the gross sales (less returns and allowances), cost of goods
sold, and gross profit or (loss) from the sale of all inventory
items, including those sold in the course of special events and
activities. These inventory items are the ones the organization
either makes to sell to others or buys for resale.
Don’t report any sales or exchanges of investments on
line 10.
Don’t include any profit or (loss) from the sale of capital items
such as securities, land, buildings, or equipment on line 10.
Enter these amounts on line 6a.
Don’t include any business expenses such as salaries, taxes,
rent, etc., on line 10. Include them on lines 13–23.
Line 15. Contributions to employee pension plans and oth-
er benefits. Enter the employer's share of contributions the
organization paid to qualified and nonqualified pension plans
and the employer's share of contributions to employee benefit
programs (such as insurance, health, and welfare programs) that
aren't an incidental part of a pension plan. Complete the return/
report of the Form 5500 series appropriate for the organization's
plan. See the Instructions for Form 5500 for information about
employee welfare benefit plans required to file that form.
Attach a schedule showing the following items: gross sales,
cost of goods sold, and gross profit or (loss). These items should
be classified according to type of inventory sold (such as books,
tapes, other educational or religious material, etc.). The totals
from the schedule should agree with the entries on lines 10a–
10c.
In column (c), enter the gross profit or (loss) from sales of
inventory shown on line 10c, column (a).
Also include the amount of federal, state, and local payroll
taxes for the year, but only include those that are imposed on the
organization as an employer. This includes the employer's share
of social security and Medicare taxes, FUTA tax, state
unemployment compensation tax, and other state and local
payroll taxes. Don’t include taxes withheld from employees'
salaries and paid over to the various governmental units (such as
federal and state income taxes and the employee's share of
social security and Medicare taxes).
Line 11. Other income. Enter the total of all the foundation's
other income for the year. Attach a schedule that gives a
description and the amount of the income. Include all income not
later.
Include imputed interest on certain deferred payments figured
under section 483 and any investment income not reportable on
lines 3 through 5, including income from program-related
investments (defined in the instructions for Part VIII-B).
Don’t include unrealized gains and losses on investments
carried at market value. Report those as fund balance or net
asset adjustments in Part III.
In column (b). Enter the amount of investment income
included in line 11, column (a). Include dividends, interest, rents,
and royalties derived from assets devoted to charitable activities,
such as interest on student loans.
Lines 16a, b, and c. Legal, accounting, and other professio-
nal fees. On the appropriate line(s), enter the legal, accounting,
auditing, and other professional fees (such as fees for
fundraising or investment services) charged by outside firms and
individuals who aren't employees of the foundation.
Attach a schedule for lines 16a, b, and c. Show the type of
service and expense for each. If the same person provided more
than one of these services, include an allocation of those
expenses.
In column (c). Include all other items includible in adjusted
net income not covered elsewhere in column (c).
Report any fines, penalties, or judgments imposed against
Line 12. Total. Enter the total of lines 1–11 in columns (a)–(c).
In column (b). Domestic organizations should enter the total
of lines 3–11. Tax-exempt foreign foundations should exclude the
line 7 amount from the total.
the foundation as a result of legal proceedings on line 23.
Line 18. Taxes. Attach a schedule listing the type and amount
of each tax reported on line 18. Don’t enter any taxes included
on line 15.
In column (a). Enter the taxes paid (or accrued) during the
year. Include all types of taxes recorded on the books, including
real estate tax not reported on line 20, the tax on investment
income, and any income tax.
Line 13. Compensation of officers, directors, trustees, etc.
Enter in the columns below.
In column (a). Enter the total compensation for the year of all
officers, directors, and trustees. If none was paid, enter zero.
Complete line 1 of Part VII to show the compensation of officers,
directors, trustees, and foundation managers.
18
Instructions for Form 990-PF (2023)
In column (b). Enter only those taxes included in column (a)
related to investment income taxable under section 4940. Don’t
include the section 4940 tax paid or incurred on net investment
income or the section 511 tax on unrelated business income.
Sales taxes may not be deducted separately but must be treated
as a part of the cost of acquired property or as a reduction of the
amount realized on disposition of the property.
In column (c). Enter only those taxes included in column (a)
that relate to income included in column (c). Don’t include any
excise tax paid or incurred on the net investment income (as
shown in Part V) or any tax reported on Form 990-T.
In column (d). Don’t include any excise tax paid on
investment income (as reported in Part V of this return or the
equivalent part of a return for prior years) unless the organization
is claiming status as a private operating foundation and
completes Part XIII.
Line 22. Printing and publications. Enter the expenses for
printing or publishing and distributing any newsletters,
magazines, etc. Also include the cost of subscriptions to, or
purchases of, magazines, newspapers, etc.
Line 23. Other expenses. Enter all other expenses for the year.
Include all expenses not reported on lines 13–22. Attach a
schedule showing the type and amount of each expense.
If a deduction is claimed for amortization, attach a schedule
showing:
Description of the amortized expenses;
•
Date acquired, completed, or expended;
Amount amortized;
•
•
•
•
•
•
Deduction for prior years;
Amortization period (number of months);
Current-year amortization; and
Total amount of amortization.
Line 19. Depreciation and depletion.
In column (a). Enter the expense recorded in the books for
the year.
In column (c). In addition to the applicable portion of
expenses from column (a), include any net loss from the sale or
exchange of land or depreciable property that was held for more
than 1 year and used in a trade or business.
For depreciation, attach a schedule showing:
A description of the property,
•
•
•
•
•
•
•
A deduction for amortization is allowed but only for assets
The date acquired,
used for the production of income reported in column (c).
The cost or other basis (exclude any land),
The depreciation allowed or allowable in prior years,
The method of computation,
Line 25. Contributions, gifts, grants paid. Don’t report on
line 25 direct program expenditures that aren't contributions,
gifts, or grants. These amounts should be reported on lines 13–
24.
In column (a). Enter the total of all contributions, gifts, grants,
and similar amounts paid (or accrued) for the year. List each
contribution, gift, grant, etc., in Part XIV, or attach a schedule of
the items included on line 25 and list:
The rate (%) or life (years), and
The depreciation this year.
On a separate line on the schedule, show the amount of
depreciation included in cost of goods sold and not included on
line 19.
In columns (b) and (c). A deduction for depreciation is
allowed only for property used in the production of income
reported in the column, and only using the straight line method of
figuring depreciation. A deduction for depletion is allowed but
must be figured only using the cost depletion method.
The basis used in figuring depreciation and depletion is the
basis determined under normal basis rules, without regard to the
special rules for using the fair market value on December 31,
1969, that relate only to gain or loss on dispositions for purposes
of the tax on net investment income.
1. Name and address of donee;
2. Relationship of donee if related by:
a. Blood,
b. Marriage,
c. Adoption, or
d. Employment (including children of employees) to any
and
3. The organizational status of donee (for instance, public
charity—an organization described in section 509(a)(1), (2), or
(3)).
Line 20. Occupancy. Enter the amount paid or incurred for the
use of office space or other facilities. If the space is rented or
leased, enter the amount of rent. If the space is owned, enter the
amount of mortgage interest, real estate taxes, and similar
expenses, but not depreciation reportable on line 19. In either
case, include the amount for utilities and related expenses (for
example, heat, lights, water, power, telephone, sewer, trash
removal, outside janitorial services, and similar services). Don’t
include any salaries of the organization's own employees
reportable on line 14.
You don't have to give the name of any indigent person who
received one or more gifts or grants from the foundation unless
that individual is a disqualified person or one who received a
total of more than $1,000 from the foundation during the year.
Activities should be described according to purpose and in
greater detail than merely charitable, educational, religious, or
scientific activities. For example, use identification such as
payments for nursing service, for fellowships, or for assistance to
indigent families.
Foundations may include, as a single entry on the schedule,
the total of amounts paid as grants for which the foundation
exercised expenditure responsibility. Attach a separate report for
each grant.
When the fair market value of the property at the time of
disbursement is the measure of a contribution, the schedule
must also show:
Line 21. Travel, conferences, and meetings. Enter the
expenses for officers, employees, or others during the year for
travel, attending conferences, meetings, etc. Include
transportation (including fares, mileage allowance, or automobile
expenses), meals and lodging, and related costs whether paid
on the basis of a per diem allowance or actual expenses
incurred. Don’t include any compensation paid to those who
participate.
In column (b). Only 50% of the expense for business meals
paid or incurred in connection with travel, meetings, etc., relating
to the production of investment income may be deducted in
figuring net investment income (section 274(n)).
amounts reported in column (c) by the income generated by a
charitable activity, enter the total amount of expenses paid or
incurred by officers, employees, or others for travel, conferences,
meetings, etc., related to income included in column (c).
A description of the contributed property,
The book value of the contributed property,
The method used to determine the book value,
The method used to determine the fair market value, and
The date of the gift.
•
•
•
•
•
19
Instructions for Form 990-PF (2023)
The difference between fair market value and book value
should be shown in the books of account and as a net
asset adjustment in Part III.
Foundations with less than $5,000 of total assets per books at
all times during the year must complete all of columns (a) and (b)
and only line 16 of column (c).
TIP
Line 1. Cash—Non-interest-bearing. Enter the amount of
cash on deposit in checking accounts, deposits in transit,
change funds, petty cash funds, and any other
non-interest-bearing account. Don’t include advances to
employees or officers or refundable deposits paid to suppliers or
others.
In column (d). Enter on line 25 all contributions, gifts, and
grants the foundation paid during the year with the following
exceptions.
Don’t include contributions to organizations controlled by the
•
foundation or by one or more disqualified persons, or
contributions to nonoperating private foundations, unless the
donee organization is exempt from tax under section 501(c)(3)
and redistributes the contributions, and the foundation maintains
sufficient evidence of redistribution, in accordance with section
4942(g)(3) and Regulations section 53.4942(a)-3(c).
Line 2. Savings and temporary cash investments. Enter the
total of cash in savings or other interest-bearing accounts and
temporary cash investments, such as money market funds,
commercial paper, certificates of deposit, and U.S. Treasury bills
or other governmental obligations that mature in less than 1 year.
Don’t include contributions paid from a nonoperating private
•
foundation to a Type III supporting organization, as defined
under section 4943(f)(5), that isn't a functionally integrated Type
III supporting organization, as defined under section 4943(f)(5)
(B). See Regulations section 1.509(a)-4(i).
Line 3. Accounts receivable. On the dashed lines to the left of
column (a), enter the year-end figures for total accounts
receivable and allowance for doubtful accounts from the sale of
goods and/or the performance of services. In columns (a), (b),
and (c), enter net amounts (total accounts receivable reduced by
the corresponding allowance for doubtful accounts). Claims
against vendors or refundable deposits with suppliers or others
may be reported here if not significant in amount. (Otherwise,
report them on line 15.) Any receivables due from officers,
directors, trustees, foundation managers, or other disqualified
persons must be reported on line 6. Report receivables
(including loans and advances) due from other employees on
line 15.
Don’t include contributions paid from a nonoperating private
•
foundation to any supporting organization if a disqualified person
of the private foundation controls the supporting organization or
any of its supported organizations. See Regulations section
53.4942(a)-3(a)(3).
Don’t reduce the amount of grants paid in the current year by
•
the amount of grants paid in a prior year returned or recovered in
the current year. Report those repayments on Part I, line 9,
column (c), and in Part X, line 4.
Don’t include any payments of set-asides (see the instructions
•
for Part XI, line 3) taken into account as qualifying distributions in
the current year or any prior year. All set-asides are included in
qualifying distributions (Part XI, line 3) in the year of the
set-aside, regardless of when paid.
Line 4. Pledges receivable. On the dashed lines to the left of
column (a), enter the year-end figures for total pledges
receivable and allowance for doubtful accounts (pledges
estimated to be uncollectible). In columns (a), (b), and (c), enter
net amounts (total pledges receivable reduced by the
corresponding allowance for doubtful accounts).
Don’t include current-year write-offs of prior years'
•
program-related investments. All program-related investments
are included in qualifying distributions (Part XI, line 1b) in the
year the investment is made.
Line 5. Grants receivable. Enter the total grants receivable
from governmental agencies, foundations, and other
organizations as of the beginning and end of the year.
Don’t include any payments that aren't qualifying distributions,
•
as defined in section 4942(g)(1).
Line 6. Receivables due from officers, directors, trustees,
and other disqualified persons. Enter here (and on an
attached schedule described below) all receivables due from
officers, directors, trustees, foundation managers, and other
disqualified persons and all secured and unsecured loans
(including advances) to such persons. Don’t adjust the amounts
reported by any amount(s) estimated to be uncollectible.
Attached schedules. 1. On the required schedule, report
each loan separately, even if more than one loan was made to
the same person or the same terms apply to all loans made.
Salary advances and other advances for the personal use and
benefit of the recipient and receivables subject to special terms
or arising from transactions not functionally related to the
foundation's charitable purposes must be reported as separate
loans for each officer, director, etc.
Net Amounts
Line 27a. Excess of revenue over expenses and disburse-
ments. Subtract line 26, column (a), from line 12, column (a),
and enter the result. Generally, the amount shown in column (a)
on this line is also the amount by which net assets (or fund
balances) have increased or decreased for the year. See Part III.
Line 27b. Net investment income. Domestic organizations
should subtract line 26, column (b), from line 12, column (b), and
enter the result. Exempt foreign organizations should enter the
amount shown on line 12, column (b). However, if the
organization is a domestic organization and line 26, column (b),
is more than line 12, column (b) (such as when expenses exceed
income), enter zero (not a negative amount).
2. Receivables that are subject to the same terms and
conditions (including credit limits and rate of interest) as
receivables due from the general public from an activity
functionally related to the foundation's charitable purposes may
be reported as a single total for all the officers, directors, etc.
Travel advances made for official business of the organization
may also be reported as a single total.
For each outstanding loan or other receivable that must be
reported separately, the attached schedule should show the
following information (preferably using columns).
Line 27c. Adjusted net income. Subtract line 26, column (c),
from line 12, column (c), and enter the result.
Part II. Balance Sheets
For column (b), show the book value at the end of the year. For
column (c), show the fair market value at the end of the year.
Attached schedules must show the end-of-year value for each
asset listed in columns (b) and (c).
Foundations whose books of account included total assets of
$5,000 or more at any time during the year must complete all of
columns (a), (b), and (c).
1. Borrower's name and title.
2. Original amount.
3. Balance due.
20
Instructions for Form 990-PF (2023)
4. Date of note.
5. Maturity date.
6. Repayment terms.
7. Interest rate.
8. Security provided by the borrower.
9. Purpose of the loan.
value of all land, buildings, and equipment held for investment
less accumulated depreciation. In column (c), enter the fair
market value of these assets. Attach a schedule listing these
investment fixed assets held at the end of the year and showing,
for each item or category listed, the original cost or other basis,
accumulated depreciation, and ending book value.
Line 12. Investments—mortgage loans. Enter the amount of
mortgage loans receivable held as investments but don't include
program-related investments (see the instructions for line 15).
10. Description and fair market value of the consideration
furnished by the lender (for example, cash—$1,000; or 100
shares of XYZ, Inc., common stock— $9,000).
Line 13. Investments—other. Enter the amount of all other
investment holdings not reported on lines 10 through 12. Attach
a schedule listing and describing each of these investments held
at the end of the year. Show the book value for each and indicate
whether the investment is listed at cost or end-of-year market
value. Don’t include program-related investments (see the
instructions for line 15).
The above detail isn't required for receivables or travel advances
that may be reported as a single total (see the discussion of
receivables in (2) above); however, report and identify those
totals separately on the attachment.
Line 7. Other notes and loans receivable. On the dashed
lines to the left of column (a), enter the combined total year-end
figures for other notes receivable and loans receivable and the
allowance for doubtful accounts.
Notes receivable. In columns (a), (b), and (c), enter the
amount of all notes receivable not listed on line 6 and not
acquired as investments. Attach a schedule similar to the one for
line 6. The schedule should also identify the relationship of the
borrower to any officer, director, trustee, foundation manager, or
other disqualified person.
Line 14. Land, buildings, and equipment. On the first dashed
line to the left of column (a), enter the year-end book value
(excluding accumulated depreciation), and on the second
dashed line, enter the accumulated depreciation of all land,
buildings, and equipment owned by the organization and not
held for investment. In columns (a) and (b), enter the book value
of all land, buildings, and equipment not held for investment less
accumulated depreciation. In column (c), enter the fair market
value of these assets. Include any property, plant, and
equipment owned and used by the organization to conduct its
charitable activities. Attach a schedule listing these fixed assets
held at the end of the year and showing the original cost or other
basis, accumulated depreciation, and ending book value of each
item or category listed.
For a note receivable from any section 501(c)(3) organization,
list only the name of the borrower and the balance due on the
required schedule.
Loans receivable. In columns (a), (b), and (c), enter the
gross amount of loans receivable, minus the allowance for
doubtful accounts, from the normal activities of the filing
organization (such as scholarship loans). An itemized list of
these loans isn't required, but attach a schedule showing the
total amount of each type of outstanding loan. Report loans to
officers, directors, trustees, foundation managers, or other
disqualified persons on line 6 and loans to other employees on
line 15.
Line 15. Other assets. List and show the book value of each
category of assets not reportable on lines 1 through 14. Attach a
separate schedule if more space is needed.
One type of asset reportable on line 15 is program-related
investments. These are investments made primarily to
accomplish a charitable purpose of the filing organization with no
significant purpose to produce income.
Line 8. Inventories for sale or use. Enter the amount of
materials, goods, and supplies purchased or manufactured by
the organization and held for sale or use in some future period.
Line 16. Total assets. All filers must complete line 16 of
columns (a), (b), and (c). These entries represent the totals of
lines 1 through 15 of each column. However, foundations that
have assets of less than $5,000 per books at all times during the
year need not complete lines 1 through 15 of column (c).
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, and pension costs, and
expenses incurred in connection with a solicitation campaign to
be conducted in a future accounting period.
The column (c) amount is also entered on the entry
space for Item I in the Heading section on page 1.
TIP
Line 17. Accounts payable and accrued expenses. Enter
the total of accounts payable to suppliers and others and
accrued expenses, such as salaries payable, accrued payroll
taxes, and interest payable.
Lines 10a, b, and c. Investments— government obligations,
corporate stock and bonds. Enter the book value (which may
be market value) of these investments.
Attach a schedule that lists each security held at the end of
the year and shows whether the security is listed at cost
(including the value recorded at the time of receipt in the case of
donated securities) or end-of-year market value. Don’t include
amounts shown on line 2. Governmental obligations reported on
line 10a are those that mature in 1 year or more. Debt securities
of the U.S. Government may be reported as a single total rather
than itemized. Obligations of state and municipal governments
may also be reported as a lump-sum total. Don’t combine U.S.
Government obligations with state and municipal obligations on
this schedule.
Line 18. Grants payable. Enter the unpaid portion of grants
and awards the organization has made a commitment to pay
other organizations or individuals, whether or not the
commitments have been communicated to the grantees.
Line 19. Deferred revenue. Include revenue that the
organization has received but not yet earned as of the balance
sheet date under its method of accounting.
Line 20. Loans from officers, directors, trustees, and other
disqualified persons. Enter the unpaid balance of loans
received from officers, directors, trustees, and other disqualified
persons. For loans outstanding at the end of the year, attach a
schedule that shows (for each loan) the name and title of the
lender and the information listed in items 2 through 10 of the
instructions for line 6, earlier.
Line 11. Investments—land, buildings, and equipment. On
the first dashed line to the left of column (a), enter the year-end
book value (excluding accumulated depreciation), and on the
second dashed line, enter the accumulated depreciation of all
land, buildings, and equipment held for investment purposes,
such as rental properties. In columns (a) and (b), enter the book
21
Instructions for Form 990-PF (2023)
stated value, total amount received upon issuance) of all classes
of stock issued and, as yet, uncanceled. For trusts, enter the
amount in the trust principal or corpus account. For foundations
continuing to use the fund method of accounting, enter the fund
balances for the foundation's current restricted and unrestricted
funds.
Line 21. Mortgages and other notes payable. Enter the
amount of mortgages and other notes payable at the beginning
and end of the year. Attach a schedule showing, as of the end of
the year, the total amount of all mortgages payable and, for each
nonmortgage note payable, the name of the lender and the other
information specified in items 2 through 10 of the instructions for
line 6, earlier. The schedule should also identify the relationship
of the lender to any officer, director, trustee, foundation manager,
or other disqualified person.
Line 27. Paid-in or capital surplus, or land, building, and
equipment fund. Enter the balance per books for all paid-in
capital in excess of par or stated value for all stock issued and
uncanceled. If stockholders or others gave donations that the
organization records as paid-in capital, include them here.
Report any current-year donations you included on line 27 in Part
I, line 1. The fund balance for the land, building, and equipment
fund would be entered here.
Line 22. Other liabilities. List and show the amount of each
liability not reportable on lines 17 through 21. Attach a separate
schedule if more space is needed.
Lines 24 Through 30. Net Assets or Fund
Balances
FASB Accounting Standards Codification 958, Not-for-Prof-
it Entities (ASC 958). ASC 958 provides standards for external
financial statements certified by an independent accountant for
certain types of nonprofit organizations.
While some states may require reporting according to ASC
958, the IRS does not. However, a Form 990-PF return prepared
according to ASC 958 will be acceptable to the IRS.
Line 28. Retained earnings, accumulated income, endow-
ment, or other funds. For corporations, enter the balance in
the retained earnings, or similar account, minus the cost of any
corporate treasury stock. For trusts, enter the balance per books
in the accumulated income or similar account. For foundations
using fund accounting, enter the total of the fund balances for
the permanent and term endowment funds as well as balances
of any other funds not reported on lines 26 and 27.
Line 29. Total net assets or fund balances. For foundations
that follow FASB ASC 958, enter the total of lines 24 and 25. For
all other foundations, enter the total of lines 26 through 28. Enter
the beginning-of-year figure in Part III, line 1. The end-of-year
figure in column (b) must agree with the figure in Part III, line 6.
Foundations that follow ASC 958. Check the box above
line 24, and complete lines 24 and 25 and lines 29 and 30.
Classify and report net assets in two groups in Part II (net assets
without donor restrictions and net assets with donor restrictions)
based on the existence or absence of donor-imposed
Line 30. Total liabilities and net assets/fund balances.
Enter the total of lines 23 and 29. This amount must equal the
amount for total assets reported on line 16 for both the beginning
and end of the year.
restrictions and the nature of those restrictions. Enter the sum of
the two classes of net assets on line 29. On line 30, add the
amounts on lines 23 and 29 to show total liabilities and net
assets. The amount on line 16 must equal line 30.
Part III. Analysis of Changes in Net
Assets or Fund Balances
Effective for reporting years ending after December 15,
2017, ASC 958-205, Not-for-Profit
!
CAUTION
Entities—Presentation of Financial Statements (ASC
Generally, the excess of revenue over expenses, or vice versa,
accounts for the difference between the net assets at the
beginning and end of the year.
958), addresses reporting of donor-restricted endowments and
board-designated (quasi) endowments. Further, many states
have enacted the Uniform Prudent Management of Institutional
Funds Act (UPMIFA). If the organization is subject to the UPMIFA
or ASC 958, it may affect the amounts reported on lines 24 and
25.
On Part III, line 2, re-enter the figure from Part I, line 27(a),
column (a).
On lines 3 and 5, list any changes in net assets that weren't
caused by the receipts or expenses shown in Part I, column (a).
For example, if a foundation follows FASB ASC 958 (formerly
“SFAS 115”) (ASC 320-10-35) and shows an asset in the ending
balance sheet at a higher value than in the beginning balance
sheet because of an increased market value (after a larger
decrease in a prior year), include the increase in Part III, line 3.
If the organization uses a stepped-up basis to determine
gains on sales of assets included in Part I, column (a), then
include the amount of step-up in basis in Part III. If you entered a
contribution, gift, or grant of property valued at fair market value
in Part I, line 25, column (a), the difference between fair market
value and book value should be shown in the books of account
and as a net asset adjustment in Part III.
Line 24. Net assets without donor restrictions. Enter the
balances per books of the net assets without donor restrictions
class of net assets. For years ending after December 15, 2017,
ASC 958 refers to “unrestricted net assets” as “net assets
without donor restrictions.” Net assets without donor restrictions
are neither permanently restricted nor temporarily restricted by
donor-imposed stipulations. All funds without donor-imposed
restrictions must be classified as net assets without donor
restrictions, regardless of the existence of any board
designations or appropriations.
Line 25. Net assets with donor restrictions. This line can be
used to show the balance per books of net assets with donor-
imposed restrictions that may require resources to be used after
a specified date (time restrictions), or used for a specified
purpose (purpose restrictions), or both.
Part IV. Capital Gains and Losses for
Tax on Investment Income
Foundations that don’t follow ASC 958. Check the box above
line 26 and report account balances on lines 26 through 30.
Report capital stock, trust principal, or current funds on line 26.
Report paid-in capital surplus or land, building, or equipment
funds on line 27. Report retained earnings, endowment,
accumulated income, or other funds on line 28.
Use Part IV to figure the amount of net capital gain to report on
lines 7 and 8 of Part I.
Part IV doesn't apply to foreign organizations.
Nonoperating private foundations may not have to figure their
short-term capital gain or loss on line 3. See Nonoperating
private foundations, earlier.
Line 26. Capital stock, trust principal, or current funds. For
corporations, enter the balance per books for capital stock
accounts. Show par or stated value (or for stock with no par or
Reportable gains and losses. Capital gains or losses include
gains or losses from the sale or other disposition of property that:
22
Instructions for Form 990-PF (2023)
Is used for a charitable purpose (for sales or other
•
Other gains and losses. For sales of anything other than
publicly traded securities sold, each transaction must be listed
and reported separately, completing all appropriate columns in
Part IV.
dispositions in tax years beginning after August 17, 2006),
Is held for investment, or
•
•
Is used in the production of income. Don't include the gain or
loss that is included in figuring the foundation's unrelated
business taxable income.
Part V. Excise Tax Based on
Investment Income (Section 4940(a),
4940(b), or 4948)
However, don't include gains or losses for any portion of
property if:
The property was used for 1 year or more in furthering the
•
foundation's exempt purpose or function; and
Immediately following the use, is exchanged for property of
•
General Rules
like kind that is to be used primarily in furthering the foundation's
exempt purpose or function. Rules similar to the rules of section
1031 relating to exchange of property held for productive use or
Domestic exempt private foundations. These foundations
are subject to a 1.39% tax on net investment income under
section 4940(a). However, certain exempt operating foundations
described in section 4940(d)(2) may not owe any tax.
Exception. The section 4940 tax doesn't apply to an
organization making an election under section 41(e)(6)(D). Enter
“N/A” on line 1 in Part V.
Capital gains and losses may arise from the deemed sale of
section 1256 contracts (marked to market).
Basis. The basis for determining gain from the sale or other
disposition of property is the larger of:
The fair market value of the property on December 31, 1969,
•
Domestic taxable private foundations and section 4947(a)
(1) nonexempt charitable trusts. These organizations are
subject to a modified 1.39% tax on net investment income under
section 4940(b). However, they must first figure the tax under
section 4940(a) as if that tax applied to them.
plus or minus all adjustments after December 31, 1969, and
before the date of disposition, if the foundation held the property
on that date and continuously after that date until disposition; or
The basis of the property on the date of disposition under
•
normal basis rules (actual basis). See sections 1011–1016.
Foreign organizations. Under section 4948, exempt foreign
private foundations are subject to a 4% tax on their gross
investment income derived from U.S. sources.
To figure a loss, basis on the date of disposition is determined
under normal basis rules.
The rules that generally apply to property dispositions
reported in this part are:
Under section 871(m), added by the Hiring Incentives to
Restore Employment Act (HIRE), a “dividend equivalent”
!
Section 1011, adjusted basis for determining gain or loss;
Section 1012, basis of property-cost;
•
•
•
•
CAUTION
is treated as a dividend from U.S. sources for certain
purposes, including U.S. withholding tax rules applicable to
foreign organizations. See section 871(m) for more information.
Section 1014, basis of property acquired from a decedent;
Section 1015, basis of property acquired by gifts and transfers
in trust; and
Taxable foreign private foundations that filed Form 1040-NR,
U.S. Nonresident Alien Income Tax Return, or Form 1120-F, U.S.
Income Tax Return of a Foreign Corporation should not complete
Part V.
Section 1016, adjustments to basis.
•
Section 1015 provides in most circumstances for a
carryover basis of property acquired by gift, that is, the
basis in the hands of the donor carries over to the
TIP
Estimated tax. Domestic exempt and taxable private
foundations and section 4947(a)(1) nonexempt charitable trusts
may have to make estimated tax payments for the excise tax
based on investment income. See O. Figuring and Paying
foundation. Section 1014 generally provides for a stepped-up
basis of property acquired by bequest (other than an item of
income in respect of a decedent), that is, the fair market value of
the property at the decedent's death.
Losses. If the disposition of investment property results in a
loss, that loss may be subtracted from capital gains realized from
the disposition of property during the same tax year but only to
the extent of the gains. If losses are more than gains, the excess
may not be subtracted from gross investment income nor may
the losses be carried back or forward to other tax years.
Tax Computation
Line 1a only applies to domestic exempt operating
foundations described in section 4940(d)(2) that have a
!
CAUTION
ruling or determination letter from the IRS establishing
exempt operating foundation status. If your organization doesn't
have this letter, skip line 1a.
Reporting Transactions in Part IV
Line 1a. A domestic exempt private foundation that qualifies as
an exempt operating foundation under section 4940(d)(2) isn't
liable for any tax on net investment income on this return.
Publicly traded securities. For sales of publicly traded
securities through a broker, enter the description “publicly traded
securities” on line 1, column (a). Leave columns (b), (c), and (d)
blank. Total the gross sales price, the cost or other basis, and the
expense of sale on all such securities sold. Report these
lump-sum figures in columns (e) through (l), as appropriate. You
must maintain detailed records of each transaction in your books
and records.
If your organization qualifies, check the box and enter the
date of the ruling or determination letter on line 1a and enter
“N/A” on line 1. Leave the rest of Part V blank. For the first year,
the organization must attach a copy of the ruling or determination
letter establishing exempt operating foundation status. As long
as the organization retains this status, enter the date of the ruling
or determination letter in the space on line 1a. If the organization
no longer qualifies under section 4940(d)(2), leave the date line
blank and figure the section 4940 tax in the normal manner.
Qualification. To qualify as an exempt operating foundation
for a tax year, an organization must meet the following
Publicly traded securities are securities that are listed and
regularly traded on an over-the-counter market or an established
exchange in which market quotations are published or otherwise
readily available. Securities include:
Common and preferred stock,
Bonds (including governmental obligations), and
Mutual fund shares.
•
•
•
requirements of section 4940(d)(2).
It is an operating foundation described in section 4942(j)(3).
•
23
Instructions for Form 990-PF (2023)
It has been publicly supported for at least 10 tax years or was
organization and not subject to this withholding, the organization
can claim credit for the amount withheld.
•
a private operating foundation on January 1, 1983, or for its last
tax year ending before January 1, 1983.
Don't claim erroneous backup withholding on line 6d if
Its governing body, at all times during the tax year, consists of
•
you claim it on Form 990-T.
!
individuals, at least 75% of whom aren't disqualified individuals
(as defined in section 4940(d)(3)), and is broadly representative
of the general public.
CAUTION
Line 8. Penalty. Enter any penalty for underpayment of
It has no officer who was a disqualified individual at any time
•
estimated tax shown on Form 2220.
during the tax year.
Line 1c. Exempt foreign organizations shouldn't include net
capital gain income when figuring the excise tax due under
section 4948(a).
Amended return. If you are amending Part V, be sure to
combine any tax due that was paid with the original return (or
any overpayment credited or refunded) in the total for line 7. On
the dotted line to the left of the line 7 entry space, write “Tax Paid
w/ O.R.” and the amount paid. If you had an overpayment, write
“O.R. Overpayment” and the amount credited or refunded in
brackets.
If you file more than one amended return, attach a schedule
listing the tax due amounts that were paid and overpayment
amounts that were credited or refunded. Write “See Attachment”
on the dotted line and enter the net amount in the entry space for
line 7.
Line 2. Section 511 tax. Under section 4940(b), a domestic
section 4947(a)(1) nonexempt charitable trust or taxable private
foundation must add to the tax figured under section 4940(a) (on
line 1) the tax which would have been imposed under section
511 for the tax year if it had been exempt from tax under section
501(a). If the domestic section 4947(a)(1) nonexempt charitable
trust or taxable private foundation has unrelated business
taxable income that would have been subject to the tax imposed
by section 511, the computation of tax must be shown in an
attachment. Form 990-T may be used as the attachment. All
other filers, enter zero.
Part VI-A. Statements Regarding
Activities
Line 4. Subtitle A (income) tax. Domestic section 4947(a)(1)
nonexempt charitable trusts and taxable private foundations,
enter the amount of subtitle A (income) tax for the year reported
on Form 1041 or Form 1120. All other filers, enter zero.
Each question in this section must be answered “Yes,” “No,” or
“N/A” (not applicable).
Line 5. Tax based on investment income. Subtract line 4
from line 3 and enter the difference (but not less than zero) on
line 5. Any overpayment entered on line 10 that is the result of a
negative amount shown on line 5 won't be refunded. Unless the
organization is a domestic section 4947(a)(1) nonexempt
charitable trust or taxable private foundation, the amount on
line 5 is the same as on line 1.
Line 1. “Political purposes” include, but aren't limited to, directly
or indirectly accepting contributions or making payments to
influence the selection, nomination, election, or appointment of
any individual to any federal, state, or local public office or office
in a political organization, or the election of Presidential or Vice
Presidential electors, whether or not the individual or electors are
actually selected, nominated, elected, or appointed.
Line 6a. Enter the amount of 2023 estimated tax payments and
any 2022 overpayment of taxes that the organization specified
on its 2022 return to be credited toward payment of 2023
estimated taxes.
Line 3. A “conformed copy” of an organizational document is
one that agrees with the original document and all its
amendments. If copies aren't signed, attach a written declaration
signed by an officer authorized to sign for the organization,
certifying that they are complete and accurate copies of the
original documents.
Line 6a applies only to domestic foundations.
!
CAUTION
Note. If you are filing electronically, send a conformed copy of
the changes to the IRS at the address listed in U. Section 507(b)
Trust payments treated as beneficiary payments. A trust
may treat any part of estimated taxes it paid as taxes paid by the
beneficiary. If the filing organization was a beneficiary that
received the benefit of such a payment from a trust, include the
amount on line 6a of Part V and write, “Includes section 643(g)
payment.” See section 643(g) for more information about
estimated tax payments treated as paid by a beneficiary.
Line 4a. See Pub. 598, Tax on Unrelated Business Income of
Exempt Organizations, for a description of unrelated business
income and Form 990-T filing requirements for foundations
having such income.
Line 6b. Exempt foreign foundations must enter the amount of
tax withheld at the source. Attach Form 1042-S, Foreign
Person's U.S. Source Income Subject to Withholding, or other
form that verifies the withheld tax reported on line 6b (Form
8288-A, Statement of Withholding on Dispositions by Foreign
Persons of U.S. Real Property Interests, or Form 8805, Foreign
Partner's Information Statement of Section 1446 Withholding
Tax).
Line 6. For a private foundation to be exempt from income tax,
its governing instrument must include provisions that require it to
act or refrain from acting so as not to engage in an act of
self-dealing (section 4941) or subject the foundation to the taxes
imposed by sections 4942 (failure to distribute income), 4943
(excess business holdings), 4944 (investments that jeopardize
charitable purpose), and 4945 (taxable expenditures). A private
foundation may satisfy these section 508(e) requirements either
by express language in its governing instrument or by application
of state law that imposes the above requirements on the
foundation or treats these requirements as being contained in
the governing instrument. If an organization claims it satisfies the
requirements of section 508(e) by operation of state law, the
provisions of state law must effectively impose the section
508(e) requirements on the organization. See Rev. Rul. 75-38,
1975-1 C.B. 161, for a list of states with legislation that satisfies
the requirements of section 508(e).
Line 6d. Enter the amount of any backup withholding
erroneously withheld. Recipients of interest or dividend
payments must generally certify their correct taxpayer
identification number to the bank or other payer on Form W-9,
Request for Taxpayer Identification Number and Certification. If
the payer doesn't get this information, it must withhold part of the
payments as “backup withholding.” If the organization files Form
990-PF and was subject to erroneous backup withholding
because the payer didn't realize the payee was an exempt
24
Instructions for Form 990-PF (2023)
However, if the state law doesn't apply to a governing
instrument that contains mandatory directions conflicting with
any of its requirements and the organization has such mandatory
directions in its governing instrument, then the organization
hasn't satisfied the requirements of section 508(e) by the
operation of that legislation.
The term “related person” includes any other person who
would be a disqualified person because of a relationship with the
substantial contributor (section 4946). When the substantial
contributor is a corporation, the term also includes any officer or
director of the corporation. The term “substantial contributor”
doesn't include public charities (organizations described in
section 509(a)(1), (2), or (3)).
Line 6 doesn't apply to foreign foundations described in
section 4948(b).
A foreign foundation described in section 4948(b) should
report only substantial contributors that are U.S. citizens.
Line 8a. In the space provided, list all states:
Line 11. Controlled entities. Answer “Yes” if at any time during
the tax year the foundation owned a controlled entity. A
controlled entity is an entity in which the foundation owns more
than 50% of the:
1. To which the organization reports in any way about its
organization, assets, or activities; and
2. With which the organization has registered (or which it
has otherwise notified in any manner) that it intends to be, or is,
a charitable organization or that it is, or intends to be, a holder of
property devoted to a charitable purpose.
1. Stock (by vote or value) in a corporation,
2. Interest (of profit or capital) in a partnership, or
3. Beneficial interest of any other entity.
Attach a separate list if you need more space.
Line 8 doesn't apply to foreign foundations described in
The foundation must apply section 318 in determining its
ownership of stock in a corporation and use similar principles in
determining its ownership interests in other entities.
Attached schedule of controlled entities. If at any time
during the tax year the foundation was the controlling
organization of a controlled entity under section 512(b)(13),
attach a schedule listing the name, address, and EIN of each
controlled entity and stating whether the controlled entity is an
excess business holding.
section 4948(b).
Line 8b. If the organization hasn't furnished a copy of its Form
990-PF to the Attorney General (or the person designated) of
each state required to be listed in the response to line 8a, then
explain in an attached statement why not. If the Attorney General
(or the person designated) won't accept such filings, then so
state.
Line 9. If the organization claims status as a private operating
foundation for 2023 and, in fact, meets the private operating
foundation requirements for that year (as reflected in Part XIII),
any excess distributions carryover from 2022 or prior years may
not be carried over to 2023 or any year after 2023 even if it
doesn't meet the private operating foundation requirements. See
Part XII. Undistributed Income, later.
Attached schedule for transfers to controlled entities. If at
any time during the tax year, the foundation made any loans or
transfers to a corporation, partnership, or other entity, which it
controlled within the meaning of section 512(b)(13), attach a
schedule using the format provided in the sample schedule,
each loan or transfer. In column (d), enter the amount for each
loan or transfer to each controlled entity.
Line 10. Substantial contributors. If you answer “Yes,” attach
a schedule listing the names and addresses of all persons who
became substantial contributors during the year.
Attached schedule for transfers from controlled entities. If
at any time during the tax year, the foundation received any
transfers of funds or payments from a controlled entity within the
meaning of section 512(b)(13), attach a schedule using the
format provided in the sample schedule, Line 11—Example B
Entity, later. In column (c), describe each transfer or payment
received, including payment of interest, annuities, royalties,
rents, dividends, fees or other payments for services,
The term “substantial contributor” means any person whose
contributions or bequests, during the current tax year and prior
tax years, total more than $5,000 and are more than 2% of the
total contributions and bequests received by the foundation from
its creation through the close of its tax year. An individual is
treated as making all contributions and bequests made by the
individual's spouse (section 507(d)(2)(B)(iii)). In the case of a
trust, the term “substantial contributor” also means the creator of
the trust (section 507(d)(2)(A)).
contributions to capital, and loans. In column (d), enter the
amount of each loan or transfer from each controlled entity.
The term “person” includes individuals, trusts, estates,
partnerships, associations, corporations, and other exempt
organizations.
Note. For both schedules, if additional space is needed, make a
copy of the schedule, and enter one total amount on the first
page of the schedule.
Each contribution or bequest must be valued at fair market
value on the date it was received.
Line 12. Distribution to a donor-advised fund. If a
Any person who is a substantial contributor on any date will
remain a substantial contributor for all later periods.
distribution was made from the foundation to a donor-advised
fund over which the foundation or a disqualified person had
advisory privileges, then in an attachment state whether the
foundation treated any distribution to a donor-advised fund as a
qualifying distribution, and explain how the distributions will be
used to accomplish a purpose described in section 170(c)(2)(B).
However, a person will cease to be a substantial contributor
with respect to any private foundation if:
1. The person, and all related persons, made no
contributions to the foundation during the 10-year period ending
with the close of the tax year;
Line 13. Public inspection requirements and website ad-
dress. All domestic private foundations (including section
4947(a)(1) nonexempt charitable trusts treated as private
foundations) are subject to the public inspection requirements.
on making the foundation's annual returns and exemption
application available for public inspection.
2. The person, or any related person, was never the
foundation's manager during this 10-year period; and
3. The aggregate contributions made by the person, and
related persons, are determined by the IRS to be insignificant
compared to the aggregate amount of contributions to the
foundation by any other person and the appreciated value of
contributions held by the foundation.
Enter the foundation's website address if the foundation has a
website. Otherwise, enter “N/A.”
25
Instructions for Form 990-PF (2023)
b. The accounts weren't with a U.S. military banking facility
operated by a U.S. financial institution.
Line 15. Section 4947(a)(1) trusts. Section 4947(a)(1)
nonexempt charitable trusts that file Form 990-PF instead of
Form 1041 must complete this line. The trust should include
exempt-interest dividends received from a mutual fund or other
regulated investment company as well as tax-exempt interest
received directly.
2. The foundation owns more than 50% of the stock in any
corporation that would answer “Yes” to item 1 above.
If “Yes,” electronically file FinCEN Form 114, Report of Foreign
Bank and Financial Accounts (FBAR), with the Department of
the Treasury using the FinCEN's BSA E-Filing System. Because
FinCEN Form 114 isn't a tax form, don't file it with Form 990-PF.
Line 16. Foreign accounts. Answer “Yes” if either (1) or (2)
below applies.
1. At any time during the calendar year ending with or within
the foundation's tax year, the foundation 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
If you are required to file FinCEN Form 114 but don't do
so, you may have to pay a penalty of up to $10,000
!
CAUTION
(more in some cases).
a. The combined value of all such accounts was more than
Enter the name of each foreign country in which a foreign
account described on line 16 is located.
$10,000 at any time during the calendar year; and
26
Instructions for Form 990-PF (2023)
Line 11—Example A
Statement of Information Regarding Transfers to a Controlled Entity
(A)
(B)
(C)
(D)
Amount of
transfer
Name and address of each controlled entity
Employer
identification
number
Description of transfer
a
b
c
d
e
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Line 11—Example B
Statement of Information Regarding Transfers From a Controlled Entity
(A)
(B)
(C)
(D)
Amount of
transfer
Name and address of each controlled entity
Employer
identification
number
Description of transfer
a
b
c
d
e
Total .
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27
Instructions for Form 990-PF (2023)
1. 100% of the voting stock in the business enterprise is
held by the private foundation at all times during the tax year;
and
2. All of the private foundation’s ownership interests were
acquired by means other than purchase, such as a gift or
bequest.
Part VI-B. Statements Regarding
Activities for Which Form 4720 May
Be Required
The purpose of these questions is to determine whether there is
any initial excise tax due under sections 4941–4945, 170(f)(10),
4960, and 4965. If the answer is “Yes” to the question on line 1b,
1c, 2b, 3b, 4a, 4b, 5b, 6b, 7b, or 8, complete and file Form 4720
unless an exception applies. Foundations described in section
4948(b) must complete Part VI-B (except line 2) and file Form
4720, but chapter 42 taxes don't apply to such foundations
(except section 4948). Organizations in a 60-month termination
under section 507(b)(1)(B) must complete this part but might not
be liable for private foundation excise taxes—see U. Section
The requirements of section 4943(g)(3) are met if the
business enterprise, no later than 120 days after the close of the
tax year, distributes an amount equal to its net operating income
for such tax year to the private foundation. For purposes of this
paragraph, the net operating income of any business enterprise
for any tax year is an amount equal to the gross income of the
business enterprise for the tax year, reduced by the sum of:
1. The deductions allowed by chapter 1 for the tax year that
are directly connected with the production of such income,
2. The tax imposed by chapter 1 on the business enterprise
for the tax year, and
Line 1. Self-dealing. The activities listed in lines 1a(1)–(6) are
considered self-dealing under section 4941 unless one of the
exceptions applies. See IRS.gov/Charities/Foundations/Acts-of-
3. An amount for a reasonable reserve for working capital
and other business needs of the business enterprise.
The requirements of section 4943(g)(4) are met if, at all times
during the tax year:
The terms “disqualified person” and “foundation manager” are
1. No substantial contributor (as defined in section 4958(c)
(3)(C)) to the private foundation or family member (as
determined under section 4958(f)(4)) of such a contributor is a
director, officer, trustee, manager, employee, or contractor of the
business enterprise (or an individual having powers or
responsibilities similar to any of the foregoing);
2. At least a majority of the board of directors of the private
foundation are persons who are not (i) directors or officers of the
business enterprise, or (ii) family members of a substantial
contributor to the private foundation; and
Line 1b. If you answered “Yes” to any of the questions in line 1a,
you should answer “Yes” to line 1b unless all of the acts engaged
in were acts excepted by the regulations under section 4941 or
other guidance, including Notices published in the Internal
Revenue Bulletin relating to disaster assistance.
Line 2a. Under section 4942, a foundation (other than an
operating foundation) must make qualifying distributions of its
distributable amount for a tax year by the end of the following tax
year. Otherwise, the foundation’s undistributed income as of the
end of the following tax year is generally subject to tax until
corrected. Parts IX through XII are used in determining whether
the foundation has met its requirements under section 4942.
3. There is no loan outstanding from the business enterprise
to a substantial contributor to the private foundation or to any
family member of such a contributor.
This provision does not apply to any donor-advised fund
treated as a private foundation by section 4943(e), a supporting
organization treated as a private foundation by section 4943(f), a
trust described in section 4947(a)(1), or a trust described in
section 4947(a)(2).
Line 2b. Taxes on failure to distribute income. If you answer
“No” to the question on line 2b, attach a statement explaining:
All the facts regarding the incorrect valuation of assets; and
The actions taken (or planned) to comply with section 4942(a)
•
•
(2)(B), (C), and (D) and the related regulations.
Section 4943(g) shall apply to tax years beginning after
Foreign foundations described in section 4948(b) need not
December 31, 2017.
complete line 2.
For more information about excess business holdings, see
the Instructions for Form 4720.
Line 3a. A private foundation generally is subject to tax under
section 4943 if it owns any excess business holdings. In general,
the holdings of a private foundation, combined with the holdings
of related foundations and other disqualified persons, can't
exceed 20% of the voting stock of a corporation, the profits
interest in a partnership, or the beneficial remainder interest in a
Regardless of the holdings of disqualified persons, however, a
foundation is permitted to own holdings that don't exceed 2% of
either the voting stock or value of all outstanding shares of all
classes of stock in a corporation. A similar exception applies to a
beneficial or profits interest in any business enterprise that is a
trust or partnership.
Line 4. Taxes on investments that jeopardize charitable
purposes. In general, an investment that jeopardizes any of the
charitable purposes of a private foundation is one for which a
foundation manager didn't exercise ordinary business care to
provide for the long- and short-term financial needs of the
foundation in carrying out its charitable purposes. For more
details, see the regulations under section 4944.
Line 5. Taxes on taxable expenditures and political expen-
ditures. In general, payments made for the activities described
on lines 5a(1)–(5) are taxable expenditures.
Line 5a(2). Under section 4955, a section 501(c)(3)
organization must pay an excise tax for any amount paid or
incurred on behalf of or in opposition to any candidate for public
office. The organization must pay an additional excise tax if it
doesn't correct the expenditure timely.
A manager of a section 501(c)(3) organization who knowingly
agrees to a political expenditure must pay an excise tax unless
the agreement isn't willful and there is reasonable cause. A
manager who doesn't agree to a correction of the political
expenditure may have to pay an additional excise tax.
Section 4943(g), added by the Bipartisan Budget Act of 2018,
P.L. 115-123, 132 Stat. 64 (2018), provides an exception for
certain limited holdings to independently operated businesses.
In general, the excess business holdings provisions of section
4943(a) shall not apply with respect to the holdings of a private
foundation in any business enterprise that meets all the
requirements of section 4943(g)(2), (3), and (4). Accordingly,
answer “No” to line 3a if the following requirements are met.
The requirements of section 4943(g)(2) are met if:
28
Instructions for Form 990-PF (2023)
A section 501(c)(3) organization will lose its exempt status if it
engages in political activity.
A political expenditure that is treated as an expenditure under
section 4955 isn't treated as a taxable expenditure under section
4945.
engaged in were “excepted” transactions. Excepted transactions
are described in Regulations section 53.4945-2 through
53.4945-5 and appear in Notices published in the Internal
Revenue Bulletin relating to disaster assistance. For example,
see Pub. 3833, Disaster Relief.
Line 6b. Check “Yes” if, in connection with any transfer of funds
to a private foundation, the foundation 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 these premiums.
Report the premiums it paid and the premiums paid by others,
but treated as paid by the private foundation, on Form 8870,
Information Return for Transfers Associated With Certain
Personal Benefit Contracts, and pay the excise tax (which is
equal to premiums paid) on Form 4720.
For purposes of the section 4955 tax, when an organization
promotes a candidate for public office (or is used or controlled by
a candidate or prospective candidate), amounts paid or incurred
for the following purposes are political expenditures.
Remuneration to the individual (or candidate or prospective
•
candidate) for speeches or other services.
Travel expenses of the individual.
•
•
Expenses of conducting polls, surveys, or other studies, or
preparing papers or other material for use by the individual.
Expenses of advertising, publicity, and fundraising for such
•
individual.
For more information, see Form 8870 and Notice 2000-24,
Any other expense that has the primary effect of promoting
•
2000-17 I.R.B. 952.
public recognition or otherwise primarily accruing to the benefit
of the individual.
Line 7a. Answer “Yes” if the foundation was a party to a
prohibited tax shelter transaction (PTST) as described in section
4965(e) at any time during the tax year.
See the regulations under section 4945 for more information.
Line 5a(3). Answer “Yes” if the organization made a grant to an
individual for travel, study, or similar purposes. Such purposes
include scholarships, fellowships, certain prizes and awards, and
grants to achieve a specific objective, produce a report or similar
product, or improve a literary, artistic, musical, scientific,
PTST. In general, a PTST means any listed transaction and any
prohibited reportable transaction.
Listed transaction. A listed transaction, within the meaning of
section 6707A(c)(2), is a transaction that is the same as, or
substantially similar to, any transaction that has been specifically
identified by the Secretary in published guidance as a tax
avoidance transaction for purposes of section 6011.
teaching, or other similar skill of the grantee. Similar purposes
don't include grants to individuals in relief of poverty or distress
(other than grants of the type described above), or prizes or
awards that don't finance any future activities of the recipient.
A grant to an individual for travel, study, or similar purposes is
a taxable expenditure under section 4945(d)(3) unless the
foundation awarded the grant on an objective and
Prohibited reportable transaction. Prohibited reportable
transaction means any confidential transaction or any
transaction with contractual protection (as defined under
regulations prescribed by the Secretary) (see Regulations
section 1.6011-4(b)(3) and (4)) that is a reportable transaction
(as defined in section 6707A(c)(1)).
If the answer to this question is “Yes,” the foundation must
also file Form 8886-T, Disclosure by Tax-Exempt Entity
Regarding Prohibited Tax Shelter Transactions.
nondiscriminatory basis under a procedure approved in advance
by the IRS, as required under section 4945(g). The foundation
may request approval of its procedure in the process of applying
for exemption with Form 1023 (Schedule H), or thereafter with
Form 8940, Request for Miscellaneous Determination.
Line 5a(4). Except as discussed below, a grant by a private
foundation to a public charity described in section 509(a)(1), (2),
or (3) or to an exempt operating foundation (as defined in section
4940(d)(2) and the instructions for Part VI) isn't a taxable
expenditure if the private foundation doesn't earmark the grant
for any of the activities described in lines 5a(1)–(5), and there is
no oral or written agreement by which the grantor foundation
may cause the grantee to engage in any such prohibited activity
or to select the grant recipient.
A grant made to a section 509(a)(3) Type III supporting
organization (as defined in section 4943(f)(5)) that isn't a
functionally integrated supporting organization (as defined in
section 4943(f)(5)(B)) is a taxable expenditure unless you
exercise expenditure responsibility. Check “Yes” on line 5a(4) if
you made a grant to such an organization. See Regulations
section 1.509(a)-4(i), for more information about whether an
organization is functionally integrated.
Line 7b. Answer “Yes” if the foundation answered “Yes” to
line 7a, and it had net income or received proceeds attributable
to the PTST during the tax year.
If the foundation answers “Yes” to both lines 7a and 7b, it may
be required to file Form 4720 and pay tax with respect to each
PTST. The foundation's managers may also be required to file
Form 4720 and pay tax with respect to the relevant PTSTs.
Line 8. 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.
Part VII. Information About Officers,
Directors, Trustees, Foundation
Managers, Highly Paid Employees,
and Contractors
Line 1. List of officers, directors, trustees, etc. List the
names, addresses, and other information requested for those
who were officers, directors, and trustees (or any person who
had responsibilities or powers similar to those of officers,
directors, or trustees) of the foundation at any time during the
year. Each must be listed whether or not they receive any
compensation from the foundation. Give the address at which
officers, etc., prefer the IRS to contact them.
A grant made to any other supporting organization (including
a functionally integrated Type III), if a disqualified person of the
private foundation controls the supporting organization or any of
its supported organizations, is also a taxable expenditure unless
you exercise expenditure responsibility. Check “Yes” on
line 5a(4) if you made a grant to such an organization. In
addition, check “Yes” on line 5a(4) if you made a grant in a prior
year with respect to which you have a continuing obligation to
exercise expenditure responsibility. See Regulations sections
53.4942(a)-3(a)(3) and 53.4945-5(a) for more information.
Line 5b. If you answered “Yes” to any of the questions in line 5a,
you should answer “Yes” to line 5b unless all of the transactions
29
Instructions for Form 990-PF (2023)
Also include on this list any officers or directors (or any
person who had responsibilities or powers similar to those of
officers or directors) of a disregarded entity owned by the
foundation who aren't officers, directors, etc., of the foundation.
If the foundation (or disregarded entity) pays any other
person, such as a management services company, for the
services provided by any of the foundation's officers, directors,
or trustees (or any person who had responsibilities or powers
similar to those of officers, directors, or trustees), report the
compensation and other items on Part VII as if you had paid the
officers, etc., directly.
Show all forms of compensation earned by each listed officer,
etc. In addition to completing Part VII, if you want to explain the
compensation of one or more officers, directors, and trustees,
you may provide an attachment describing the person's entire
2023 compensation package.
Enter zero in columns (c), (d), and (e) if no compensation was
paid. Attach a schedule if more space is needed.
Column (b). A numerical estimate of the average hours per
week devoted to the position is required for the answer to be
considered complete.
Line 3. Five highest-paid independent contractors for pro-
fessional services. Fill in the information requested for the five
highest-paid independent contractors (if any), whether
individuals or professional service corporations or associations,
to whom the organization paid more than $50,000 for the year to
perform personal services of a professional nature for the
organization (for example, attorneys, accountants, and doctors).
Also show the total number of all other independent contractors
who received more than $50,000 for the year for performing
professional services.
Part VIII-A. Summary of Direct
Charitable Activities
List the foundation's four largest programs as measured by the
direct and indirect expenses attributable to each that consist of
the direct active conduct of charitable activities. Whether any
expenditure is for the direct active conduct of a charitable activity
is determined, generally, by the definitions and special rules of
section 4942(j)(3) and the related regulations, which define a
private operating foundation.
Except for significant involvement grant programs, described
below, don't include in Part VIII-A any grants or expenses
attributable to administering grant programs, such as reviewing
grant applications, interviewing or testing applicants, selecting
grantees, and reviewing reports relating to the use of the grant
funds.
Phrases such as “as needed” or “as required” are
unacceptable entries for column (b).
!
CAUTION
Column (c). Enter salary, fees, bonuses, and severance
payments received by each person listed. Include current-year
payments of amounts reported or reportable as deferred
compensation in any prior year.
Include scholarships, grants, or other payments to individuals
as part of an active program in which the foundation maintains
some significant involvement. Related administrative expenses
should also be included. Examples of active programs and
definitions of the term “significant involvement” are provided in
Regulations sections 53.4942(b)-1(b)(2) and 53.4942(b)-1(d).
Column (d). Include all forms of deferred compensation and
future severance payments (whether or not funded or vested,
and whether or not the deferred compensation plan is a qualified
plan under section 401(a)). Include payments to welfare benefit
plans (employee welfare benefit plans covered by Part I of Title 1
of the Employee Retirement Income Security Act of 1974
(ERISA), providing benefits such as medical, dental, life
insurance, apprenticeship and training, scholarship funds,
severance pay, disability, etc.) on behalf of the officers, etc.
Reasonable estimates may be used if precise cost figures aren't
readily available.
Unless the amounts are reported in column (c), report, as
deferred compensation in column (d), salaries and other
compensation earned during the period covered by the return,
but not yet paid by the date the foundation files its return.
Column (e). Enter both taxable and nontaxable fringe
benefits, expense account and other allowances (other than de
minimis fringe benefits described in section 132(e)). See Pub.
525, Taxable and Nontaxable Income, for more information.
Examples of allowances include amounts for which the recipient
didn't account to the organization or allowances that were more
than the payee spent on serving the organization. Include
payments made in connection with indemnification
arrangements, the value of the personal use of housing,
automobiles, or other assets owned or leased by the
organization (or provided for the organization's use without
charge).
Don't include any program-related investments (reportable in
Part VIII-B) in the description and expense totals.
Include qualified set-asides for direct charitable activities
reported on line 3 of Part XI. Also, include in Part VIII-A amounts
paid or set aside to acquire assets used in the direct active
conduct of charitable activities. Don't include current-year
expenditures of amounts previously reported as set-asides in
Part VIII-A.
Expenditures for direct charitable activities include, among
others, amounts paid or set aside to:
1. Acquire or maintain the operating assets of a museum,
library, or historic site or to operate the facility;
2. Provide goods, shelter, or clothing to indigent or disaster
victims if the foundation maintains some significant involvement
in the activity rather than merely making grants to the recipients;
3. Conduct educational conferences and seminars;
4. Operate a home for the elderly or disabled;
5. Conduct scientific, historic, public policy, or other
research with significance beyond the foundation's grant
program that doesn't constitute a prohibited attempt to influence
legislation;
6. Publish and disseminate the results of such research,
reports of educational conferences, or similar educational
material;
7. Support the service of foundation staff on boards or
advisory committees of other charitable organizations or on
public commissions or task forces;
8. Provide technical advice or assistance to a governmental
body, a governmental committee, or subdivision of either, in
response to a written request by the governmental body,
committee, or subdivision;
Line 2. Compensation of five highest-paid employees. Fill
in the information requested for the five employees (if any) of the
foundation (or disregarded entity that the foundation owns) who
received the greatest amount of annual compensation over
$50,000. Don't include employees listed on line 1. Also enter the
total number of other employees who received more than
$50,000 in annual compensation.
Show each listed employee's entire compensation package
for the period covered by the return. Include all forms of
compensation that each listed employee received in return for
the employee’s services. See the line 1 instructions for more
details on includible compensation.
30
Instructions for Form 990-PF (2023)
9. Conduct performing arts performances; or
distributions. Don't report in the amount column (1) the amount
of a loan guarantee except to the extent that the foundation
makes a guarantee payment that would be a qualifying
distribution, or (2) the amount of a program-related investment in
an organization described in the exceptions set forth in the Part I,
line 25, column (d), instructions. If an amount isn't reportable in
the amount column, then report it in the column describing the
program-related investment.
10. Provide technical assistance to grantees and other
charitable organizations. This assistance must have significance
beyond the purposes of the grants made to the grantees and
must not consist merely of monitoring or advising the grantees in
their use of the grant funds. Technical assistance involves the
furnishing of expert advice and related assistance regarding, for
example:
Investments consisting of loans to individuals (such as
educational loans) aren't required to be listed separately but may
be grouped with other program-related investments of the same
type. Loans to other section 501(c)(3) organizations and all other
types of program-related investments must be listed separately
on lines 1 through 3 or on an attachment.
a. Compliance with governmental regulations,
b. Reducing operating costs or increasing program
accomplishments,
c. Fundraising methods, and
d. Maintaining complete and accurate financial records.
Lines 1 and 2. List the two largest program-related investments
made by the foundation in 2023, if any, whether or not the
investments were still held by the foundation at the end of the
year. If none, enter “NONE.”
Report both direct and indirect expenses in the expense
totals. Direct expenses are those that can be specifically
identified as connected with a particular activity. These include,
among others, compensation and travel expenses of employees
and officers directly engaged in an activity, the cost of materials
and supplies utilized in conducting the activity, and fees paid to
outside firms and individuals in connection with a specific
activity.
Line 3. Combine all other program-related investments and
enter the total on line 3 in the Amount column. List the individual
investments or groups of investments included (attach a
schedule, if necessary).
Indirect (overhead) expenses are those that aren't specifically
identified as connected with a particular activity but that relate to
the direct costs incurred in conducting the activity. Examples of
indirect expenses include:
The total of lines 1 through 3 in the Amount column must
equal the amount reported on line 1b of Part XI.
TIP
Part IX. Minimum Investment Return
Occupancy expenses;
•
•
•
•
Supervisory and clerical compensation;
Repair, rental, and maintenance of equipment;
Expenses of other departments or cost centers (such as
Who must complete this section? All domestic foundations
must complete Part IX.
Foreign foundations that checked Item D2 in the Heading
section don’t have to complete Part IX unless claiming status as
a private operating foundation.
accounting, personnel, and payroll departments or units) that
service the department or function that incurs the direct
expenses of conducting an activity; and
Other applicable general and administrative expenses,
•
Private operating foundations described in section 4942(j)(3)
including the compensation of top management, to the extent
reasonably allocable to a particular activity.
or 4942(j)(5) must complete Part IX in order to complete Part XIII.
Overview. A private foundation that isn't a private operating
foundation must pay out, as qualifying distributions, its
distributable amount, as determined in Part X. The distributable
amount is the minimum investment return with certain
No specific method of allocation is required. The method
used, however, must be reasonable and must be used
consistently.
adjustments. An organization’s minimum investment return, as
determined in Part IX, is 5% of the total fair market value (less
acquisition indebtedness) of its noncharitable-use assets.
Examples of acceptable allocation methods include:
Compensation allocated on a time basis;
•
•
Employee benefits allocated on the basis of direct salary
Minimum investment return. In figuring the minimum
investment return, include only those assets that aren't actually
used or held for use by the organization for a charitable,
educational, or other similar function that contributed to the
charitable status of the foundation. Cash on hand and on deposit
is considered used or held for use for charitable purposes only to
the extent of the reasonable cash balances reported in Part IX,
line 4. See the instructions for lines 1b and 4, later.
Assets held for the production of income or for investment
aren't considered to be used directly for 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 or held
for use directly by the foundation for charitable purposes.
expenses;
Travel, conference, and meeting expenses charged directly to
•
the activity that incurred the expense;
Occupancy expenses allocated on a space-utilized basis; and
Other indirect expenses allocated on the basis of direct salary
•
•
expenses or total direct expenses.
Part VIII-B. Summary of
Program-Related Investments
Program-related investment. Section 4944(c) and
corresponding regulations define a program-related investment
as one that is made primarily to accomplish a charitable purpose
of the foundation and no substantial purpose of which is to
produce investment income or a capital gain from the sale of the
investment. Examples of program-related investments include
educational loans to individuals and low-interest loans to other
section 501(c)(3) organizations.
For example, an office building used to provide offices for
employees engaged in managing endowment funds for the
foundation isn't considered an asset used for charitable
purposes.
Dual-use property. When property is used both for
charitable and other purposes, the property is considered used
entirely for charitable purposes if 95% or more of its total use is
for that purpose. If less than 95% of its total use is for charitable
purposes, a reasonable allocation must be made between
charitable and noncharitable uses.
General instructions. Report all program-related investments
made in the current tax year. Don't report any investments made
in a prior year even if they were still held by the foundation in the
current tax year.
Report in the amount column only the amounts of
program-related investments that may be treated as qualifying
31
Instructions for Form 990-PF (2023)
Excluded property. Certain assets are excluded entirely
from the computation of the minimum investment return. These
include pledges of grants and contributions to be received in the
future and future interests in estates and trusts.
The qualified person may not be a disqualified person (see C.
Definitions, earlier) with respect to the private foundation or an
employee of the foundation.
Commonly accepted valuation methods must be used in
making the appraisal. A valuation based on acceptable methods
of valuing property for federal estate tax purposes will be
considered acceptable.
The appraisal must include a closing statement that, in the
appraiser's opinion, the appraised assets were valued according
to valuation principles regularly employed in making appraisals
of such property, using all reasonable valuation methods. The
foundation must keep a copy of the independent appraisal for its
records. If a valuation is reasonable, the foundation may use it for
the tax year for which the valuation is made and for each of the 4
following tax years.
Any valuation of real estate by a certified, independent
appraisal may be replaced during the 5-year period by a
subsequent 5-year certified, independent appraisal or by an
annual valuation as described above. The most recent valuation
should be used to figure the foundation's minimum investment
return.
If the valuation is made according to the above rules, the IRS
will continue to accept it during the 5-year period for which it
applies even if the actual fair market value of the property
changes during the period. For specific rules, see Regulations
section 53.4942(a)-2(c)(4)(iv)(b).
Valuation date. An asset required to be valued annually may
be valued as of any day in the private foundation's tax year,
provided the foundation values the asset as of that date in all tax
years. However, a valuation of real estate determined on a
5-year basis by a certified, independent appraisal may be made
as of any day in the first tax year of the foundation to which the
valuation applies.
Line 1a. Average monthly fair market value of securities. If
market quotations are readily available, a foundation may use
any reasonable method to determine the average monthly fair
market value of securities such as common and preferred stock,
bonds, and mutual fund shares, as long as that method is
consistently used. For example, a value for a particular month
might be determined by the closing price on the first or last
trading days of the month or an average of the closing prices on
the first and last trading days of the month. Market quotations are
considered readily available if a security is any of the following.
Listed on an exchange in which quotations appear on a daily
•
basis, including foreign securities listed on a recognized foreign
national or regional exchange.
Regularly traded in the national or regional over-the-counter
•
market for which published quotations are available.
Locally traded, for which quotations can be readily obtained
•
from established brokerage firms.
If securities are held in trust for, or on behalf of, a foundation
by a bank or other financial institution that values those
securities periodically using a computer pricing system, a
foundation may use that system to determine the value of the
securities. The system must be acceptable to the IRS for federal
estate tax purposes.
The foundation may reduce the fair market value of securities
only to the extent that it can establish that the securities could
only be liquidated in a reasonable period of time at a price less
than the fair market value because of:
The size of the block of the securities,
•
The fact that the securities held are securities in a closely held
•
corporation, or
Assets held for less than a tax year. To determine the
value of an asset held less than 1 tax year, divide the number of
days the foundation held the asset by the number of days in the
tax year. Multiply the result by the fair market value of the asset.
The fact that the sale of the securities would result in a forced
•
or distress sale.
Any reduction in value allowed under these provisions may
not be more than 10% of the fair market value (determined
without regard to any reduction in value).
Also, see Regulations sections 53.4942(a)-2(c)(4)(i)(b), (c),
and (iv)(a), relating to the rules summarized above and to the
general rules for valuing other assets.
Line 1e. Reduction claimed for blockage or other factors. If
the fair market value of any securities, real estate holdings, or
other assets reported on lines 1a and 1c reflects a blockage
discount, marketability discount, or other reduction from full fair
market value because of the size of the asset holding or any
other factor, enter on line 1e the aggregate amount of the
discounts claimed. Attach an explanation that includes the
following information for each asset or group of assets involved.
Line 1b. Average of monthly cash balances. Figure cash
balances on a monthly basis by averaging the amount of cash on
hand on the first and last days of each month. Include all cash
balances and amounts that may be used for charitable purposes
set aside and taken as a qualifying distribution (see Part XI.
Qualifying Distributions, later).
1. A description of the asset or asset group (for example,
20,000 shares of XYZ, Inc., common stock).
2. For securities, the percentage of the total issued and
outstanding securities of the same class that is represented by
the foundation's holding.
Line 1c. Fair market value of all other assets. The
foundation must report on line 1c the value of all assets other
than charitable-use assets, publicly traded securities, cash, and
certain “excluded assets” described in Regulations section
53.4942(a)-2(c)(2). The foundation must value the assets
reported on line 1c annually, except that real estate may be
valued every 5 years if the independent appraisal procedures
discussed under 5-year valuation below are followed.
Alternatively, an annual valuation may be made by private
foundation employees or by any other person even if that person
is a disqualified person. If the IRS accepts an annual valuation, it
is valid only for the tax year for which it is made. A new valuation
is required for the next tax year.
3. The fair market value of the asset or asset group before
any claimed blockage discount or other reduction.
4. The amount of the discount claimed.
5. A statement that explains why the claimed discount is
appropriate in valuing the asset or group of assets for section
4942 purposes.
In the case of securities, there are certain limitations on the
size of the reduction in value that can be claimed. See the
instructions for Part IX, line 1a.
Line 2. Acquisition indebtedness. Enter the total acquisition
indebtedness that applies to assets included on line 1. For
details, see section 514(c)(1).
5-year valuation. A written, certified, and independent
appraisal of the fair market value of any real estate, including any
improvements, may be determined on a 5-year basis by a
qualified person.
Line 4. Cash deemed held for charitable activities.
Foundations may exclude from the assets used in the minimum
investment return computation the reasonable cash balances
32
Instructions for Form 990-PF (2023)
necessary to cover current administrative expenses and other
normal and current disbursements directly connected with the
charitable, educational, or other similar activities. The amount of
cash that may be excluded is generally 1.5% of the fair market
value of all assets (minus any acquisition indebtedness) as
figured in Part IX, line 3. However, if under the facts and
circumstances an amount larger than the deemed amount is
necessary to pay expenses and disbursements, then you may
enter the larger amount instead of 1.5% of the fair market value
on line 4. If you use a larger amount, attach an explanation.
paid for the specific project within 60 months from the date of the
first set-aside and meets (1) or (2) below.
1. The project can be better accomplished by a set-aside
than by the immediate payment of funds (suitability test).
2. The private foundation meets the requirements of section
4942(g)(2)(B)(ii) (cash distribution test).
Set-aside under item 1. For any set-aside under (1) above,
the private foundation must apply for IRS approval by the end of
the tax year in the amount of the set-aside. The request for
approval is submitted with Form 8940, Request for
Line 6. Short tax periods. If the foundation's tax period is less
than 12 months, determine the applicable percentage by dividing
the number of days in the short tax period by 365 (or 366 in a
leap year). Multiply the result by 5% (0.05). Then multiply the
modified percentage by the amount on line 5 and enter the result
on line 6.
Miscellaneous Determination, under sections 507, 509(a), 4940,
4942, 4945, and 6033. The Instructions for Form 8940 provide
what information is required to be included with the set-aside
ruling request. Submit the completed Form 8940, user fee
payment, and all other required information as directed in the
Instructions for Form 8940.
Set-aside under item 2. For any set-aside under (2) above,
the private foundation must attach a schedule to its annual
information return showing how the requirements are met. A
schedule is required for the year of the set-aside and for each
subsequent year until the set-aside amount has been distributed.
See Regulations section 53.4942(a)-3(b)(7)(ii) for specific
requirements.
Part X. Distributable Amount
If the organization is claiming status as a private operating
foundation described in section 4942(j)(3) or (j)(5) or if it is a
foreign foundation that checked Item D2 in the Heading section
on page 1, check the box in the Heading section for Part X. You
don't need to complete this part. See the Part XIII instructions for
more details on private operating foundations.
Part XII. Undistributed Income
Section 4942(j)(5) foundations are classified as private
operating foundations for purposes of section 4942 only if they
meet the requirements of Regulations section 53.4942(b)-1(a)
(2).
If you checked Item D2 in the Heading section on page 1, don't
fill in this part.
If the organization is a private operating foundation for any of
the years shown in Part XII, don't complete the portions of Part
XII that apply to those years. If there are excess qualifying
distributions for any tax year, don't carry them over to a year in
which the organization is a private operating foundation or to any
later year. For example, if a foundation made excess qualifying
distributions in 2021 and became a private operating foundation
in 2023, the excess qualifying distributions from 2021 could be
applied against the distributable amount for 2022 but not to any
year after 2022.
The purpose of this part is to enable the foundation to comply
with the rules for applying its qualifying distributions for the year
2023. In applying the qualifying distributions, there are three
basic steps.
The distributable amount for 2023 is the amount that the
foundation must distribute by the end of 2024 as qualifying
distributions to avoid the 30% tax on the undistributed portion.
Line 4. Enter the total of recoveries of amounts treated as
qualifying distributions for any year under section 4942(g).
Include recoveries of part or all (as applicable) of grants
previously made, proceeds from the sale or other disposition of
property whose cost was treated as a qualifying distribution
when the property was acquired, and any amount set aside
under section 4942(g) to the extent it is determined that this
amount isn't necessary for the purposes of the set-aside.
Line 6. Deduction from distributable amount. If the
foundation was organized before May 27, 1969, and its
governing instrument or any other instrument continues to
require the accumulation of income after a judicial proceeding
pursuant to section 508(e) to reform the instrument has
terminated, then the income required to be accumulated must be
subtracted from the distributable amount beginning with the first
tax year after the tax year in which the judicial proceeding was
terminated.
1. Reduce any undistributed income for 2022 (but not below
zero).
2. The organization may use any part of or all remaining
qualifying distributions for 2023 to satisfy elections. For example,
if undistributed income remained for any year before 2022, it
could be reduced to zero or, if the foundation wished, the
distributions could be treated as distributions out of corpus.
3. If no elections are involved, apply remaining qualifying
distributions to the 2023 distributable amount on line 4d. If the
remaining qualifying distributions are greater than the 2023
distributable amount, the excess is treated as a distribution out
of corpus on line 4e.
Part XI. Qualifying Distributions
“Qualifying distributions” are amounts spent or set aside for
religious, educational, or similar charitable purposes. The total
amount of qualifying distributions for any year is used to reduce
the distributable amount for specified years to arrive at the
undistributed income (if any) for those years. Foreign
foundations described in section 4948(b) not claiming operating
foundation status need not complete this part.
If for any reason the 2023 qualifying distributions don't reduce
any 2022 undistributed income to zero, the amount not
distributed is subject to a 30% tax. If the 2021 income remains
undistributed at the end of 2024, it could be subject again to the
30% tax. Also, see section 4942(b) for the circumstances under
which a second-tier tax could be imposed.
Line 1a. Expenses, contributions, gifts, etc. Enter the
amount from Part I, line 26, column (d).
Excess distribution carryovers. An excess of qualifying
distributions is created for a particular tax year (and available as
a carryover for the 5 succeeding years) if the total qualifying
distributions treated as made out of the undistributed income for
the year or out of corpus with respect to the year (other than
amounts distributed in satisfaction of section 170(b)(1)(F)(ii) or
4942(g)(3) or applied to a prior tax year by election) exceeds the
Line 1b. Program-related investments. Enter the total of the
Amount column from Part VIII-B. See the Part VIII-B instructions
for the definition of “program-related investments.”
Line 3. Amounts set aside. Amounts set aside may be treated
as qualifying distributions only if the private foundation
establishes to the satisfaction of the IRS that the amount will be
33
Instructions for Form 990-PF (2023)
distributable amount for the year. See Regulations section
53.4942(a)-3(e)(2). Thus, in no case does the excess for the
particular tax year exceed the qualifying distributions for the year
less the distributable amount for the year.
distribution carryovers to its current-year distributable amount on
line 5. See Regulations section 53.4942(a)-3(e)(2).
Elections. To make these elections, the organization must file
a statement with the IRS or attach a statement, as described in
the above regulations section, to Form 990-PF. An election made
by filing a separate statement with the IRS must be made within
the year for which the election is made. Otherwise, attach a
statement to the Form 990-PF filed for the year the election was
made.
Where to enter. If the organization elected to apply all or part
of the remaining amount to the undistributed income remaining
from years before 2022, enter the amount on line 4b.
Example. X Foundation has an excess distribution carryover
of $100,000 from 5 years ago that will expire to the extent that it
isn't used in its current tax year. For its current tax year, X
Foundation has a distributable amount of $110,000, qualifying
distributions of $90,000, and no undistributed income from prior
years. X Foundation doesn't elect to distribute any part of its
qualifying distributions in satisfaction of section 170(b)(1)(F)(ii)
or 4942(g)(3). Under these circumstances, X Foundation has no
excess distributions for its current tax year. X Foundation may
apply $20,000 of its $100,000 carryover from 5 years ago to its
undistributed income in the current tax year, but the remaining
$80,000 must expire. X Foundation can't create an excess
distribution for its current tax year by electing to treat all or part of
its qualifying distributions for the current year as made out of
corpus and applying the $100,000 carryover from the prior year
in satisfaction of its distributable amount for the current year.
If the organization elected to treat those qualifying
distributions as a distribution out of corpus, enter the amount on
line 4c.
Entering an amount on line 4b or 4c without submitting
the required statement isn't considered a valid election.
!
CAUTION
Line 4d. Treat as a distribution of the distributable amount for
2023 any qualifying distributions for 2023 that remain after
reducing the 2022 undistributed income to zero and after
electing to treat any part of the remaining distributions as a
distribution out of corpus or as a distribution of a prior year's
undistributed income. Enter only enough of the remaining 2023
qualifying distributions to reduce the 2023 distributable amount
to zero.
Line 1. Distributable amount. Enter the distributable amount
for 2023 from Part X, line 7.
Line 2. Undistributed income. Enter the distributable amount
for 2022 and amounts for earlier years that remained
undistributed at the beginning of the 2023 tax year.
Line 2b. Enter the amount of undistributed income for years
before 2022.
Line 4e. Any 2023 qualifying distributions remaining after
reducing the 2023 distributable amount to zero should be treated
as an excess distribution out of corpus. This amount may be
carried over and applied to later years.
Line 3. Excess distributions carryover to 2023. If the
foundation has made excess distributions out of corpus in prior
years, which haven't been applied in any year, enter the amount
for each year. Don't enter an amount for a particular year if the
organization was a private operating foundation for any later
year.
Line 5. Excess qualifying distributions carryover applied to
2023. The foundation may apply excess qualifying distribution
carryovers from its 5 prior years to its current-year undistributed
income, but only to the extent that the undistributed income
exceeds its qualifying distributions for the year. For example, if
for the tax year X Foundation has a distributable amount of
$1,000, qualifying distributions of $800 that it elects to treat as
made out of corpus, prior-year carryovers of $700, and no
undistributed income for prior years, then it may apply only $200
of the carryovers to its current-year undistributed income. See
Regulations section 53.4942(a)-3(e)(1).
Enter any excess qualifying distributions from line 3, which
were applied to 2023, in both the Corpus column and the 2023
column. Apply the oldest excess qualifying distributions first.
Thus, the organization will apply any excess qualifying
distributions carried forward from 2018 before those from later
years.
Lines 3a through 3e. Enter the amount of any excess
distribution made on the line for each year listed. Don't include
any amount that was applied against the distributable amount of
an earlier year or that was already used to meet pass-through
distribution requirements. (See Line 7. Distributions out of
Line 3f. This amount can be applied in 2023.
Line 4. Qualifying distributions. Enter the total amount of
qualifying distributions made in 2023 from Part XI, line 4, on the
line next to column (a). The total of the amounts applied on lines
4a through 4e is equal to the qualifying distributions made in
2023.
Line 4a. The qualifying distributions for 2023 are first used to
reduce any undistributed income remaining from 2022. Enter
only enough of the 2023 qualifying distributions to reduce the
2022 undistributed income to zero.
Line 6a. Add lines 3f, 4c, and 4e. Subtract line 5 from the total.
Enter the net total in the Corpus column.
Line 6c. Enter only the undistributed income from 2021 and
prior years for which either a notice of deficiency under section
6212(a) has been mailed for the section 4942(a) first-tier tax, or
on which the first-tier tax has been assessed because the
organization filed a Form 4720 for a tax year that began before
2022.
Lines 4b and 4c. If there are any 2023 qualifying distributions
remaining after reducing the 2022 undistributed income to zero,
one or more elections can be made under Regulations section
53.4942(a)-3(d)(2) to apply all or part of the remaining qualifying
distributions to any undistributed income remaining from years
before 2022 or to apply to corpus.
Lines 6d and 6e. These amounts are taxable under the
provisions of section 4942(a), except for any part that is due
solely to improper valuation of assets to which the provisions of
failure to distribute income, earlier). Report the taxable amount
on Form 4720. If the exception applies, attach an explanation.
A foundation may make a corpus election on line 4c in
order to qualify under section 170(b)(1)(F)(ii) for the
!
CAUTION
benefit of its contributors, or in order for a foundation
grantor to the foundation to obtain a qualifying distribution under
section 4942(g)(3), as described in the Part XII, line 7,
instructions. A foundation can't make a corpus election on line 4c
in an attempt to create or increase an excess distributions
carryover for the current year on line 10e by applying excess
Line 6f. In the 2023 column, enter the amount by which line 1 is
more than the total of lines 4d and 5. This is the undistributed
income for 2023. The organization must distribute the amount
34
Instructions for Form 990-PF (2023)
shown by the end of its 2024 tax year so that it won't be liable for
the tax on undistributed income.
Part XIII. Private Operating
Foundations
Line 7. Distributions out of corpus for 2023 pass-through
distributions. If the foundation is the donee and receives a
contribution from another private foundation, the donor
foundation may treat the contribution as a qualifying distribution
only if the donee foundation makes a distribution equal to the full
amount of the contribution and the distribution is a qualifying
distribution that is treated as a distribution of corpus. The donee
foundation must, no later than the close of the first tax year after
the tax year in which it receives the contributions, distribute an
amount equal in value to the contributions received in the prior
tax year and have no remaining undistributed income for the
prior year. For example, if private Foundation X received $1,000
in tax year 2021 from Foundation Y, Foundation X would have to
distribute the $1,000 as a qualifying distribution out of corpus by
the end of 2022 and have no remaining undistributed income for
2022.
If a private foundation receives a contribution from an
individual or a corporation and the individual is seeking the 60%
contribution base limit on deductions for the tax year (or the
individual or corporation isn't applying the limit imposed on
deductions for contributions to the foundation of capital gain
property), the foundation must comply with certain distribution
requirements.
By the 15th day of the 3rd month after the end of the tax year
in which the foundation received the contributions, the donee
foundation must distribute as qualifying distributions out of
corpus 100% of the value as of the date of receipt of the
following.
1. All contributions of cash and property received during the
year, in order for the individual contributor to receive the benefit
of the 60% limit on deductions under section 170(b)(1)(F)(ii).
2. All contributions of property only, in order for the individual
or corporate contributor not to be subject to the section 170(e)(1)
(B)(ii) limitations.
Elections. If the organization is applying excess distributions
from prior years (for instance, any part of the amount in Part XII,
line 3f) to satisfy the distribution requirements of section 170(b)
(1)(F) or 4942(g)(3), it must make the election under Regulations
section 53.4942(a)-3(c)(2) by attaching a statement in
accordance with that section. Also, see Regulations section
1.170A-9(h)(2).
All organizations that claim status as private operating
foundations under section 4942(j)(3) or (5) for 2023 must
complete Part XIII.
Certain elderly care facilities (section 4942(j)(5)). For
purposes of section 4942 only, certain elderly care facilities that,
on May 26, 1969, and at all times thereafter before the close of
the tax year, operated and maintained as their principal
functional purpose facilities for the long-term care, comfort,
maintenance, or education of permanently and totally disabled
persons, elderly persons, needy widows, or children may be
classified as private operating foundations. To be so classified,
they must also meet the endowment test described below.
If the foundation is a section 4942(j)(5) organization,
complete only lines 1a, 1b, 2c, 2d, 2e, and 3b. Enter “N/A” on all
other lines in the Total column for Part XIII.
Private operating foundation (section 4942(j)(3)). The term
“private operating foundation” means any private foundation that
spends at least 85% of the smaller of its adjusted net income or
its minimum investment return directly for the active conduct of
the exempt purpose or functions for which the foundation is
organized and operated (the income test) and that also meets
one of the three tests below.
1. Assets test. 65% or more of the foundation's assets are
devoted directly to those activities or functionally related
businesses, or both; or 65% or more of the foundation's assets
are stock of a corporation that is controlled by the foundation,
and substantially all of the assets of the corporation are devoted
to those activities or functionally related businesses.
2. Endowment test. The foundation normally makes
qualifying distributions directly for the active conduct of the
exempt purpose or functions for which it is organized and
operated in an amount that is two-thirds or more of its minimum
investment return.
3. Support test. The foundation normally receives 85% or
more of its support (other than gross investment income as
defined in section 509(e)) from the public and from five or more
exempt organizations that aren't described in section 4946(a)(1)
(H) with respect to each other or the recipient foundation. Not
more than 25% of the support (other than gross investment
income) normally may be received from any one of the exempt
organizations and not more than one-half of the support normally
may be received from gross investment income.
Enter on line 7 the total distributions out of corpus made to
satisfy the restrictions on amounts received from donors
described, earlier.
See the regulations under section 4942 for the meaning of
“directly for the active conduct” of exempt activities for purposes
of these tests.
Line 8. Outdated excess distributions carryover. Because
of the 5-year carryover limitation under section 4942(i)(2), the
organization must reduce any excess distributions carryover by
any amounts from 2018 that weren't applied in 2023.
Complying with these tests. A foundation may meet the
income test and either the assets, endowment, or support test by
satisfying the tests for any 3 years during a 4-year period
consisting of the tax year in question and the 3 immediately
preceding tax years. It may also meet the tests based on the
total of all related amounts of income or assets held, received, or
distributed during that 4-year period. A foundation may not use
one method for satisfying the income test and another for
satisfying one of the three alternative tests. Thus, if a foundation
meets the income test on the 3-out-of-4-year basis for a
particular tax year, it may not use the 4-year aggregation method
for meeting one of the three alternative tests for that same year.
Line 9. Excess distributions carryover to 2023. Enter the
amount by which line 6a is more than the total of lines 7 and 8.
This is the amount the organization may apply to 2024 and
following years. Line 9 can never be less than zero.
Line 10. Analysis of line 9. In the space provided for each
year, enter the amount of excess distributions carryover from that
year that hasn't been applied as of the end of the 2023 tax year.
If there is an amount on the line for 2019, it must be applied by
the end of the 2024 tax year since the 5-year carryover period for
2019 ends in 2024.
In completing line 3c(3) of Part XIII under the aggregation
method, the largest amount of support from an exempt
organization will be based on the total amount received for the
4-year period from any one exempt organization.
A new private foundation must use the aggregation method to
satisfy the tests for its first tax year in order to be treated as a
35
Instructions for Form 990-PF (2023)
private operating foundation from the beginning of that year. It
must continue to use the aggregation method for its second and
third tax years to maintain its status for those years.
For fellowships, or
•
•
For assistance to indigent families.
Entries such as “grant” or “contribution” under the
column titled Purpose of grant or contribution are
!
Part XIV. Supplementary Information
CAUTION
unacceptable.
Complete this part only if the foundation had assets of $5,000 or
more at any time during the year. This part doesn't apply to a
foreign foundation that during its entire period of existence
received substantially all (85% or more) of its support (other than
gross investment income) from sources outside the United
States.
Line 3a. Paid during year. List all contributions, grants, etc.,
actually paid during the year, including grants or contributions
that aren't qualifying distributions under section 4942(g). Include
current-year payments of set-asides treated as qualifying
distributions in the current tax year or any prior year.
Line 3b. Approved for future payment. List all
Line 2. In the space provided (or in an attachment, if
necessary), furnish the required information about the
organization's grant, scholarship, fellowship, loan, etc.,
programs. In addition to restrictions or limitations on awards by
geographical areas, charitable fields, and kinds of recipients,
indicate any specific dollar limitations or other restrictions
applicable to each type of award the organization makes. This
information benefits the grant seeker and the foundation. The
grant seekers will be aware of the grant eligibility requirements,
and the foundation should receive only applications that adhere
to these grant application requirements.
contributions, grants, etc., approved during the year but not paid
by the end of the year, including the unpaid portion of any
current-year set-aside. Don't report contributions and grants
approved or set aside in a prior tax year but still unpaid as of the
end of the tax year.
Part XV-A. Analysis of
Income-Producing Activities
In Part XV-A, analyze revenue items that are also entered in Part
I, lines 3–11, column (a), and on line 5b. Contributions reported
on line 1 of Part I aren't entered in Part XV-A. For information on
unrelated business income, see the Instructions for Form 990-T
and Pub. 598.
If the foundation only makes contributions to preselected
charitable organizations and doesn't accept unsolicited
applications for funds, check the box on line 2.
Line 3. If necessary, attach a schedule for lines 3a and 3b that
lists separately amounts given to individuals and amounts given
to organizations.
Columns (a) and (c). In column (a), enter a six-digit business
code, from the list in the Instructions for Form 990-T, to identify
any income reported in column (b). In column (c), enter an
exclusion code, from the list later, to identify any income reported
in column (d). If more than one exclusion code is applicable to a
particular revenue item, select the lowest numbered exclusion
code that applies. Also, if nontaxable revenues from several
sources are reportable on the same line in column (d), use the
exclusion code that applies to the largest revenue source.
Foundation Status of Recipient
Use the following codes:
PF
Private non-operating foundation (section 509(a))
POF
Private operating foundation (section 4942(j)(3)) other than
an EOF
Columns (b), (d), and (e). For amounts reported in Part XV-A
on lines 1–11, enter in column (b) any income earned that is
unrelated business income (see section 512). In column (d),
enter any income earned that is excluded from the computation
of unrelated business taxable income by section 512, 513, or
514. In column (e), enter any related or exempt function income;
that is, any income earned that is related to the organization's
purpose or function that constitutes the basis for the
organization's exemption.
EOF
PC
Exempt operating foundation (section 4940(d))
Public charity described in section 509(a)(1) or (2)
GOV
Domestic or foreign government (including Indian tribal
governments) or instrumentality, or international organization
designated by Executive Order under 22 U.S.C. 288
SO-DP
Type I, Type II, or Type III functionally integrated supporting
organization if a disqualified person of the private foundation
controls the supporting organization or a supported
organization (sections 509(a)(3) and 4942(g)(4))
Also enter in column (e) any income specifically excluded
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. You must explain in Part XV-B any amount shown in
column (e).
SO I
Type I supporting organization (sections 509(a)(3) and
509(a)(3)(B)(i)) other than an SO-DP
SO II
Type II supporting organization (sections 509(a)(3) and
509(a)(3)(B)(ii)) other than an SO-DP
Functionally integrated Type III supporting organization
(sections 509(a)(3), 509(a)(3)(B)(iii), and 4943(f)(5)(B))
other than an SO-DP
Non-functionally integrated Type III supporting organization
(sections 509(a)(3), 509(a)(3)(B)(iii), and 4943(f)(5)(B))
Testing for public safety organization (section 509(a)(4))
Organization not otherwise classified
Individual person
SO III FI
Comparing Part XV-A with Part I. The sum of the amounts
entered on each line of lines 1–11 of columns (b), (d), and (e) of
Part XV-A should equal corresponding amounts entered on Part
I, lines 3–11, column (a), and on line 5b as shown below.
SO III NFI
TPS
NC
I
See Regulations section 1.509(a)-4 and Rev. Proc. 2018-32,
2018-23 I.R.B. 739, available at IRS.gov/pub/irs-irbs/
irb18-23.pdf, for guidance on determining whether a grantee is a
Type I, Type II, Type III functionally integrated, or Type III
non-functionally integrated supporting organization.
Purpose of grant or contribution. Entries under this
column should reflect the grant's or contribution's purpose and
should be in greater detail than merely classifying them as
charitable, educational, religious, or scientific activities.
For example, use an identification such as payments:
For nursing service,
•
36
Instructions for Form 990-PF (2023)
accomplishment of the organization's exempt purposes (other
than by providing funds for such purposes). Activities that
generate exempt-function income are activities that form the
basis of the organization's exemption from tax.
Amounts in
Part XV-A
on line . . .
Correspond to
amounts in Part I,
column (a), line . . .
1a–g
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11
Also, explain any income entered in column (e) that is
specifically excluded from gross income other than by section
512, 513, or 514. If no amount is entered in column (e), don't
complete Part XV-B.
2
3
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3
4
5 and 6
5b (description column)
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11
6a
Example. M, a performing arts association, is primarily
supported by endowment funds. It raises revenue by charging
admissions to its performances. These performances are the
primary means by which the organization accomplishes its
cultural and educational purposes.
11 minus any special event
expenses included on lines 13
through 23 of Part I, column (a)
10
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10c
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11a–e
M reported admissions income in column (e) of Part XV-A
and explained in Part XV-B that these performances are the
primary means by which it accomplishes its cultural and
educational purposes.
Because M also reported interest from state bonds in column
(e) of Part XV-A, M explained in Part XV-B that such interest was
excluded from gross income by section 103.
Line 1. Program service revenue. On lines 1a–g, list each
revenue-producing program service activity of the organization.
For each program service activity listed, enter the gross revenue
earned for each activity, as well as identifying business and
exclusion codes, in the appropriate columns. For line 1g, enter
amounts that are payments for services rendered to
governmental units. Don't include governmental grants that are
reportable on Part I, line 1.
Part XVI. Information Regarding
Transfers to and Transactions and
Relationships With Noncharitable
Exempt Organizations
Report the total of lines 1a–g on line 11 of Part I, along with
any other income reportable on line 11.
Program services are mainly those activities that the reporting
organization was created to conduct and that, along with any
activities begun later, form the basis of the organization's current
exemption from tax.
Program services can also include the organization's
unrelated trade or business activities. Program service revenue
also includes income from program-related investments (such as
interest earned on scholarship loans) as defined in the
instructions for Part VIII-B.
Part XVI is used to report direct and indirect transfers to (line 1a)
and direct and indirect transactions with (line 1b) and
relationships with (line 2) any other noncharitable exempt
organization. A “noncharitable exempt organization” is a
tax-exempt organization described in section 501(c), other than
in paragraph (3) of section 501(c), or a political organization
described in section 527.
For purposes of these instructions, the section 501(c)(3)
organization completing Part XVI is referred to as the “reporting
organization.”
Line 11. On lines 11a–e, list each “Other revenue” activity not
reported on lines 1 through 10. Report the sum of the amounts
entered for lines 11a–e, columns (b), (d), and (e), on Part I,
line 11.
A noncharitable exempt organization is “related to or affiliated
with” the reporting organization if either:
Line 13. On line 13, enter the total of columns (b), (d), and (e) of
The two organizations share some element of common
•
line 12.
control, or
You may use the following worksheet to verify your
A historic and continuing relationship exists between the two
•
calculations.
organizations.
A noncharitable exempt organization is unrelated to the
reporting organization if:
Line 13,
Minus:
Part XV-A
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Part I, line 5b
Note. If Part I, line 5b, reflects a loss, add
that amount here instead of subtracting.
The two organizations share no element of common control,
•
and
A historic and continuing relationship doesn't exist between
•
the two organizations.
Plus:
Plus:
Plus:
Part I, line 1
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An “element of common control” is present when one or more
of the officers, directors, or trustees of one organization are
elected or appointed by the officers, directors, trustees, or
members of the other. An element of common control is also
present when more than 25% of the officers, directors, or
trustees of one organization serve as officers, directors, or
trustees of the other organization.
Part I, line 5a
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Expenses of special events deducted in
figuring Part XV-A, line 9
Part I, line 12, column (a)
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Equal:
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A “historic and continuing relationship” exists when two
organizations participate in a joint effort to achieve one or more
common purposes on a continuous or recurring basis rather than
on the basis of one or more isolated transactions or activities.
Such a relationship also exists when two organizations share
facilities, equipment, or paid personnel during the year,
regardless of the length of time the arrangement is in effect.
Part XV-B. Relationship of Activities
to the Accomplishment of Exempt
Purposes
To explain how each amount in column (e) of Part XV-A was
related or exempt function income, show the line number of the
amount in column (e) and give a brief description of how each
activity reported in column (e) contributed importantly to the
Line 1. Reporting of certain transfers and transactions.
Generally, report on line 1 any transfer to or transaction with a
37
Instructions for Form 990-PF (2023)
noncharitable exempt organization even if the transfer or
transaction constitutes the only connection with the
noncharitable exempt organization.
Related organizations. If the noncharitable exempt
organization is related to or affiliated with the reporting
organization, report all direct and indirect transfers and
transactions except for contributions and grants to the reporting
organization.
Unrelated organizations. All transfers to an unrelated
noncharitable exempt organization must be reported on line 1a.
All transactions between the reporting organization and an
unrelated noncharitable exempt organization must be shown on
line 1b unless they meet an exception in the specific instructions
for line 1b.
Line 1d. Use this schedule to describe the transfers and
transactions for which “Yes” was entered on lines 1a–c, earlier.
You must describe each transfer or transaction for which the
answer was “Yes.” You may combine all of the cash transfers
(line 1a(1)) to each organization into a single entry. Otherwise,
make a separate entry for each transfer or transaction.
Column (a). For each entry, enter the line number from lines
1a–c. For example, if the answer was “Yes” to line 1b(3), enter
“b(3)” in column (a).
Column (d). If you need more space, enter “See Attached” in
column (d) and use an attached sheet for the description. If
making more than one entry on line 1d, specify on the attached
sheet which transfer or transaction you are describing.
Line 2. Reporting of certain relationships. Enter on line 2
each noncharitable exempt organization that the reporting
organization is related to or affiliated with, as defined earlier. If
the control factor or the historic and continuing relationship factor
(or both) is present at any time during the year, identify the
organization on line 2 even if neither factor is present at the end
of the year.
Don't enter unrelated noncharitable exempt organizations on
line 2 even if transfers to or transactions with those organizations
were entered on line 1. For example, if a one-time transfer to an
unrelated noncharitable exempt organization was entered on
line 1a(2), don't enter the organization on line 2.
Column (b). Enter the exempt category of the organization;
for example, “501(c)(4).”
Column (c). In most cases, a simple description, such as
“common directors” or “auxiliary of reporting organization,” will
be sufficient. If you need more space, enter “See Attached” in
column (c) and use an attached sheet to describe the
relationship. If you are entering more than one organization on
line 2, identify which organization you are describing on the
attached sheet.
Line 1a. Transfers. Answer “Yes” to lines 1a(1) and 1a(2) if the
reporting organization made any direct or indirect transfers of
any value to a noncharitable exempt organization.
A “transfer” is any transaction or arrangement whereby one
organization transfers something of value (cash, other assets,
services, use of property, etc.) to another organization without
receiving something of more than nominal value in return.
Contributions, gifts, and grants are examples of transfers.
If the only transfers between the two organizations were
contributions and grants made by the noncharitable exempt
organization to the reporting organization, answer “No.”
Line 1b. Other transactions. Answer “Yes” for any transaction
described on line 1b(1)–(6), regardless of its amount, if it is with
a related or affiliated organization.
Unrelated organizations. Answer “Yes” for any transaction
between the reporting organization and an unrelated
noncharitable exempt organization, regardless of its amount, if
the reporting organization received less than adequate
consideration. There is adequate consideration when the fair
market value of the goods and other assets or services furnished
by the reporting organization isn't more than the fair market value
of the goods and other assets or services received from the
unrelated noncharitable exempt organization. The exception
described below doesn't apply to transactions for less than
adequate consideration.
Signature
The return must be signed by the president, vice president,
treasurer, assistant treasurer, chief accounting officer, or other
corporate officer (such as tax officer) who is authorized to sign. A
receiver, trustee, or assignee must sign any return that the
authorized person is required to file for a corporation. If the return
is filed for a trust, it must be signed by the authorized trustee or
trustees. Sign and date the form and fill in the signer's title.
Answer “Yes” for any transaction between the reporting
organization and an unrelated noncharitable exempt
organization if the “amount involved” is more than $500. The
“amount involved” is the fair market value of the goods, services,
or other assets furnished by the reporting organization.
Exception. If a transaction with an unrelated noncharitable
exempt organization was for adequate consideration and the
amount involved was $500 or less, answer “No” for that
transaction.
If an officer or employee of the organization prepares the
return, the Paid Preparer Use Only area should remain blank. If
someone prepares the return without charge, that person
shouldn't sign the return.
Note. A paid preparer must sign the original or amended return
by rubber stamp, mechanical device, or computer software
program.
Line 1b(3). Answer “Yes” for transactions in which the reporting
organization was either the lessor or the lessee.
Line 1b(4). Answer “Yes” if either organization reimbursed
expenses incurred by the other.
Paid Preparer
Line 1b(5). Answer “Yes” if either organization made loans to
the other or if the reporting organization guaranteed the other's
loans.
Generally, anyone who is paid to prepare the return must sign
the return and fill in the other blanks in the Paid Preparer Use
Only area. An employee of the filing organization isn't a paid
preparer.
Line 1b(6). Answer “Yes” if either organization performed
services or membership or fundraising solicitations for the other.
The paid preparer must:
Line 1c. Complete line 1c regardless of whether the
noncharitable exempt organization is related to or closely
affiliated with the reporting organization. For purposes of this
line, “facilities” includes office space and any other land,
building, or structure whether owned or leased by, or provided
free of charge to, the reporting organization or the noncharitable
exempt organization.
Sign the return in the space provided for the preparer's
•
signature;
Enter the preparer information;
•
•
•
Enter the preparer tax identification number (PTIN); and
Give a copy of the return to the organization, in addition to the
copy to be filed with the IRS.
Failure to provide required information may result in a penalty
for each violation under section 6695.
38
Instructions for Form 990-PF (2023)
Enter the paid preparer's PTIN, not the social security
number (SSN), in the “PTIN” box in the paid preparer's
block. Because this form is publicly disclosable, any
The authorization will automatically end no later than the due
date (excluding extensions) for filing of the organization's Form
990-PF for its next tax year. 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.
!
CAUTION
information entered in this block will be publicly disclosed. For
more information about PTINs, visit the IRS website at IRS.gov/
PTIN.
Check “No” if the IRS should contact the organization listed in
the Heading section rather than the paid preparer.
Paid Preparer Authorization
On the “Sign Here” line, 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-PF. It
doesn't apply to the firm, if any, shown in that section.
How To Get Forms and Publications
Getting tax forms, instructions, and publications. Go to
IRS.gov/Forms to download current and prior-year forms,
instructions, and publications.
By checking “Yes” to this box, 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:
Ordering tax forms, instructions, and publications. Go to
IRS.gov/OrderForms to order current forms, instructions, and
publications; call 800-829-3676 to order prior-year forms and
instructions. The IRS will process your order for forms and
publications as soon as possible. Don’t resubmit requests
you've already sent us. You can get forms and publications faster
online.
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.
The organization isn't authorizing the paid preparer to bind
the organization to anything or otherwise represent the
organization before the IRS.
Paperwork Reduction Act Notice. We ask for the information on this form 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 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 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 required by section 6104.
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, 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 do not 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.
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.
Fiscal Year 2024 Form 990 Series Taxpayer Compliance Cost Estimates
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
351,100
107
251,000
69
130,100
53
233,200
42
733,100
5
Estimated Average Total Time
(Hours)
Estimated Average Total
Out-of-Pocket Costs
$2,900
$600
$2,200
$4,600
$2,200
$5,700
$20
Estimated Average Total
Monetized Burden
$9,900
$1,700
$100
Estimated Total Time (Hours)
37,710,000
17,400,000
$152,200,000
$425,200,000
6,940,000
$282,600,000
$594,600,000
9,790,000
$506,400,000
$1,324,000,000
3,660,000
$14,000,000
$71,400,000
Estimated Total Out-of-Pocket
Costs
$1,023,200,000
$3,466,900,000
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.
Comments and suggestions. We welcome your comments about this publication and suggestions for future editions.
39
Instructions for Form 990-PF (2023)
You can send us comments through IRS.gov/FormComments. Or you can write to the Internal Revenue Service, Tax Forms and
Publications, 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 the form, tax questions, tax returns,
40
Instructions for Form 990-PF (2023)
Exclusion Codes
17— Rent from personal property leased with
real property and incidental (10% or less)
in relation to the combined income from
the real and personal property (section
512(b)(3))
General Exceptions
Debt-Financed Income
01— Income from an activity that is not
30— Income exempt from debt-ꢀnanced
(section 514) provisions because at least
85% of the use of the property is for the
organization’s exempt purposes. (Note:
This code is only for income from the
15% or less non-exempt purpose use.)
(section 514(b)(1)(A))
31— Gross income from mortgaged property
used in research activities described in
section 512(b)(7), (8), or (9) (section
514(b)(1)(C))
32— Gross income from mortgaged property
used in any activity described in section
513(a)(1), (2), or (3) (section 514(b)(1)(D))
33— Income from mortgaged property
(neighborhood land) acquired for exempt
purpose use within 10 years (section
514(b)(3))
34— Income from mortgaged property
acquired by bequest or devise (applies to
income received within 10 years from the
date of acquisition) (section 514(c)(2)(B))
35— Income from mortgaged property
acquired by gift where the mortgage was
placed on the property more than 5 years
previously and the property was held by
the donor for more than 5 years (applies
to income received within 10 years from
the date of gift) (section 514(c)(2)(B))
regularly carried on (section 512(a)(1))
02— Income from an activity in which labor is
a material income-producing factor and
substantially all (at least 85%) of the work
is performed with unpaid labor (section
513(a)(1))
03— Section 501(c)(3) organization—Income
from an activity carried on primarily for
the convenience of the organization’s
members, students, patients, visitors,
ofꢀcers, or employees (hospital parking
lot or museum cafeteria, for example)
(section 513(a)(2))
18— Gain or loss from the sale of investments
and other non-inventory property and
from certain property acquired from
ꢀnancial institutions that are in
conservatorship or receivership (sections
512(b)(5) and (16)(A))
19— Gain or loss from the lapse or termination
of options to buy or sell securities or real
property, and on options and from the
forfeiture of good-faith deposits for the
purchase, sale, or lease of investment real
estate (section 512(b)(5))
20— Income from research for the United
States; its agencies or instrumentalities;
or any state or political subdivision
(section 512(b)(7))
21— Income from research conducted by a
college, university, or hospital (section
512(b)(8))
22— Income from research conducted by an
organization whose primary activity is
conducting fundamental research, the
results of which are freely available to the
general public (section 512(b)(9))
23— Income from services provided under
license issued by a federal regulatory
agency and conducted by a religious
order or school operated by a religious
order, but only if the trade or business
has been carried on by the organization
since before May 27, 1959 (section
512(b)(15))
04— Section 501(c)(4) local association of
employees organized before May 27,
1969—Income from the sale of
work-related clothes or equipment and
items normally sold through vending
machines; food dispensing facilities; or
snack bars for the convenience of
association members at their usual places
of employment (section 513(a)(2))
05— Income from the sale of merchandise,
substantially all of which (at least 85%)
was donated to the organization (section
513(a)(3))
Specific Exceptions
06— Section 501(c)(3), (4), or (5) organization
conducting an agricultural or educational
fair or exposition—Qualiꢀed public
entertainment activity income (section
513(d)(2))
07— Section 501(c)(3), (4), (5), or (6)
organization—Qualiꢀed convention and
trade show activity income (section
513(d)(3))
36— Income from property received in return
for the obligation to pay an annuity
described in section 514(c)(5)
37— Income from mortgaged property that
provides housing to low and moderate
income persons, to the extent the
mortgage is insured by the Federal
Foreign Organizations
Housing Administration (section 514(c)(6)).
(Note: In many cases, this would be
exempt function income reportable in
column (e). It would not be so in the case
of a section 501(c)(5) or (6) organization,
for example, that acquired the housing as
an investment or as a charitable activity.)
24— Foreign organizations only—Income from
a trade or business NOT conducted in the
United States and NOT derived from
United States sources (patrons) (section
512(a)(2))
08— Income from hospital services described
in section 513(e)
09— Income from noncommercial bingo games
that do not violate state or local law
(section 513(f))
10— Income from games of chance conducted
by an organization in North Dakota
(section 311 of the Deꢀcit Reduction Act
of 1984, as amended)
11— Section 501(c)(12) organization—Qualiꢀed
pole rental income (section 513(g)) and/or
member income (described in section
501(c)(12)(H))
12— Income from the distribution of low-cost
articles in connection with the solicitation
of charitable contributions (section 513(h))
13— Income from the exchange or rental of
membership or donor list with an
organization eligible to receive charitable
contributions by a section 501(c)(3)
organization; by a war veterans’
organization; or an auxiliary unit or society
of, or trust or foundation for, a war
veterans’ post or organization (section
513(h))
Social Clubs and VEBAs
38— Income from mortgaged real property
owned by: a school described in section
170(b)(1)(A)(ii); a section 509(a)(3) afꢀliated
support organization of such a school; a
section 501(c)(25) organization; or by a
partnership in which any of the above
organizations owns an interest if the
requirements of section 514(c)(9)(B)(vi) are
met (section 514(c)(9))
25— Section 501(c)(7), (9), or (17)
organization—Non-exempt function
income set aside for a charitable, etc.,
purpose speciꢀed in section 170(c)(4)
(section 512(a)(3)(B)(i))
26— Section 501(c)(7), (9), or (17)
organization—Proceeds from the sale of
exempt function property that was or will
be timely reinvested in similar property
(section 512(a)(3)(D))
Special Rules
39— Section 501(c)(5) organization—Farm
income used to ꢀnance the operation and
maintenance of a retirement home,
27— Section 501(c)(9) or (17) organization—
Nonfunction income set aside for the
payment of life, sick, accident, or
hospital, or similar facility operated by the
organization for its members on property
adjacent to the farm land (section
other beneꢀts (section 512(a)(3)(B)(ii))
Veterans’ Organizations
1951(b)(8)(B) of Public Law 94-455)
28— Section 501(c)(19) organization—Payments
for life, sick, accident, or health insurance
for members or their dependents that are
set aside for the payment of such insurance
beneꢀts or for a charitable, etc., purpose
speciꢀed in section 170(c)(4) (section
512(a)(4))
29— Section 501(c)(19) organization—Income
from an insurance set-aside (see code 28
above) that is set aside for payment of
insurance beneꢀts or for a charitable, etc.,
purpose speciꢀed in section 170(c)(4)
(Regs. 1.512(a)-4(b)(2))
40— Annual dues, not exceeding $191 (subject
to inꢁation), paid to a section 501(c)(5)
agricultural or horticultural organization
(section 512(d))
Modifications and Exclusions
Trade or Business
14— Dividends, interest, payments with
respect to securities loans, annuities,
income from notional principal contracts,
other substantially similar income from
ordinary and routine investments, and
loan commitment fees, excluded by
section 512(b)(1)
41— Gross income from an unrelated activity
that is regularly carried on but, in light of
continuous losses sustained over a
number of tax periods, cannot be
regarded as being conducted with the
motive to make a proꢀt (not a trade or
business)
15— Royalty income excluded by section
512(b)(2)
Other
16— Real property rental income that does not
depend on the income or proꢀts derived
by the person leasing the property and is
excluded by section 512(b)(3)
42— Receipt of qualiꢀed sponsorship
payments described in section 513(i)
43— Exclusion of any gain or loss from the
qualiꢀed sale, exchange, or other
disposition of any qualifying brownꢀeld
property (section 512(b)(19))
41
Instructions for Form 990-PF (2023)
Index
A
Penalty 9
P
Excise tax based on excess business
Annual return:
holdings 28
Penalties:
Excise tax based on excessive executive
Excise tax based on investment income:
Failure to disclose quid pro quo
contributions 17
Domestic taxable private foundations and
section 4947(a)(1) nonexempt
Amended 8
Failure to make return available for public
inspection 12
Exempt operating foundation
qualification 23
F
Foreign 26
Relief 13
Publications:
Attachments 14
Pub. 947, Practice Before the IRS and
Attorney 39
Accounts 26
B
Q
G
Qualifying distributions (see the
instructions for Part XII for an
explanation of qualifying distributions)
C
Gifts 19
Grants 19
Capital gains and losses:
Basis 23
Gains 22
R
Losses 23
Charitable donation:
Children 2
Rounding 14
H
Contributions 19
Currency 14
S
I
Schedule B (Form 990, 990–EZ, or 990–
PF) 16
Incomplete return:
Penalties 8
Section 4943(g), exception from excise tax
D
Self-dealing 28
Signature 38
Definitions 4
Inventory 18
L
Liquidation 12
M
Depreciation 19
T
N
Dissolution 12
W
Extension 8
O
E
42