The IRS Schedule A 990 or 990-EZ form is a required document for non-profit entities and charitable organizations, designed to provide detailed information about their public charity status and activities over the fiscal year. It serves as a means to ensure transparency and compliance with IRS guidelines, helping to maintain their tax-exempt status. For those ready to complete this essential document, click the button below to get started.
Nonprofit organizations, serving as the backbone of numerous social, educational, and health initiatives across the United States, navigate a unique intersection of financial transparency and tax exemption. Central to this navigation is the Internal Revenue Service (IRS) Schedule A (Form 990 or 990-EZ), which stands as a pivotal document designed to detail the public support test and establish an organization's tax-exempt status under Section 501(c)(3). This form not only ensures that entities adhere to the stringent requirements needed to maintain their tax-exempt designation but also serves as a public record, enhancing the transparency and accountability of nonprofits. By requiring organizations to disclose extensive financial information, including their revenue sources, the form plays a crucial role in delineating between public charities and private foundations, based on the breadth of their financial support. Through Schedule A, the IRS verifies that organizations receive a substantial portion of their funding from the general public or governmental entities, thereby qualifying them for a tax-exempt status that is critical to their operation and mission. As such, the form is more than just a bureaucratic requisite; it embodies the complex relationship between financial transparency, public trust, and the sustenance of the nonprofit sector.
SCHEDULE A
Public Charity Status and Public Support
OMB No. 1545-0047
2021
(Form 990)
Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust.
Department of the Treasury
▶ Attach to Form 990 or Form 990-EZ.
Open to Public
Internal Revenue Service
▶ Go to www.irs.gov/Form990 for instructions and the latest information.
Inspection
Name of the organization
Employer identification number
Part I Reason for Public Charity Status. (All organizations must complete this part.) See instructions.
The organization is not a private foundation because it is: (For lines 1 through 12, check only one box.)
1 A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i).
2 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E (Form 990).)
3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).
4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital’s name, city, and state:
5 An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.)
6 A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).
7 An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)
8 A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)
9 An agricultural research organization described in section 170(b)(1)(A)(ix) operated in conjunction with a land-grant college or university or a non-land-grant college of agriculture (see instructions). Enter the name, city, and state of the college or university:
10
11
12
An organization that normally receives (1) more than 331/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions, subject to certain exceptions; and (2) no more than 331/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
An organization organized and operated exclusively to test for public safety. See section 509(a)(4).
An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box on lines 12a through 12d that describes the type of supporting organization and complete lines 12e, 12f, and 12g.
a
Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.
b
c
d
Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.
Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.
Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.
e Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.
f Enter the number of supported organizations . . . . . . . . . . . . . . . . . . . . . .
gProvide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization
(iv) Is the organization
(v) Amount of monetary
(vi) Amount of
(described on lines 1–10
listed in your governing
support (see
other support (see
above (see instructions))
document?
instructions)
Yes
No
(A)
(B)
(C)
(D)
(E)
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 11285F
Schedule A (Form 990) 2021
Page 2
Part II Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year (or fiscal year beginning in) ▶
1Gifts, grants, contributions, and membership fees received. (Do not include any “unusual grants.”) . . .
2Tax revenues levied for the organization’s benefit and either paid to
or expended on its behalf . . . .
3The value of services or facilities furnished by a governmental unit to the organization without charge . . . .
4Total. Add lines 1 through 3 . . . .
5The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f) . . . .
6Public support. Subtract line 5 from line 4
Section B. Total Support
(a)2017
(b)2018
(c)2019
(d)2020
(e)2021
(f)Total
(a) 2017
(b) 2018
(c) 2019
(d) 2020
(e) 2021
(f) Total
7
Amounts from line 4
8
Gross income from interest, dividends,
payments received on securities loans,
rents, royalties, and income from
similar sources
9Net income from unrelated business activities, whether or not the business is regularly carried on . . . . . .
10Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) . . . . . . .
Total support. Add lines 7 through 10
Gross receipts from related activities, etc.
(see instructions)
13First 5 years. If the Form 990 is for the organization’s first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Section C. Computation of Public Support Percentage
14
Public support percentage for 2021 (line 6, column (f), divided by line 11, column (f)) . . . .
%
15
Public support percentage from 2020 Schedule A, Part II, line 14
16a
331/3% support test—2021. If the organization did not check the box on line 13, and line 14 is 33
1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
▶
b331/3% support test—2020. If the organization did not check a box on line 13 or 16a, and line 15 is 331/3% or more, check this box and stop here. The organization qualifies as a publicly supported organization . . . . . . . . . . . ▶
17a 10%-facts-and-circumstances test—2021. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and stop here. Explain in Part VI how the organization meets the facts-and-circumstances test. The organization qualifies as a publicly supported organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
b10%-facts-and-circumstances test—2020. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and stop here. Explain in Part VI how the organization meets the facts-and-circumstances test. The organization qualifies as a publicly supported
organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
18Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Page 3
Part III Support Schedule for Organizations Described in Section 509(a)(2)
(Complete only if you checked the box on line 10 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
1Gifts, grants, contributions, and membership fees received. (Do not include any “unusual grants.”)
2Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization’s tax-exempt purpose . . .
3Gross receipts from activities that are not an unrelated trade or business under section 513
4Tax revenues levied for the
organization’s benefit and either paid to or expended on its behalf . . . .
5The value of services or facilities furnished by a governmental unit to the organization without charge . . . .
6Total. Add lines 1 through 5 . . . .
7a Amounts included on lines 1, 2, and 3
received from disqualified persons .
bAmounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year
c Add lines 7a and 7b . . . . . .
8Public support. (Subtract line 7c from line 6.) . . . . . . . . . . .
9
Amounts from line 6
10a
payments received on securities loans, rents,
royalties, and income from similar sources .
bUnrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 . . . .
c Add lines 10a and 10b . . . . .
11Net income from unrelated business activities not included on line 10b, whether or not the business is regularly carried on
12Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) . . . . . . .
13Total support. (Add lines 9, 10c, 11, and 12.) . . . . . . . . . .
14First 5 years. If the Form 990 is for the organization’s first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Public support percentage for 2021 (line 8, column (f), divided by line 13, column (f))
16
Public support percentage from 2020 Schedule A, Part III, line 15
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2021 (line 10c, column (f), divided by line 13, column (f)) . . .
18
Investment income percentage from 2020 Schedule A, Part III, line 17
19a
331/3% support tests—2021. If the organization did not check the box on line 14, and line 15 is more than 331/3%, and line
17 is not more than 331/3%, check this box and stop here. The organization qualifies as a publicly supported organization .
b331/3% support tests—2020. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 331/3%, and
line 18 is not more than 331/3%, check this box and stop here. The organization qualifies as a publicly supported organization
20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions
Schedule A (Form 990) 2021Page 4
Part IV Supporting Organizations
(Complete only if you checked a box in line 12 on Part I. If you checked box 12a, Part I, complete Sections A and B. If you checked box 12b, Part I, complete Sections A and C. If you checked box 12c, Part I, complete Sections A, D, and E. If you checked box 12d, Part I, complete Sections A and D, and complete Part V.)
Section A. All Supporting Organizations
1Are all of the organization’s supported organizations listed by name in the organization’s governing documents? If “No,” describe in Part VI how the supported organizations are designated. If designated by class or purpose, describe the designation. If historic and continuing relationship, explain.
2Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If “Yes,” explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).
3a Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If “Yes,” answer lines 3b and 3c below.
bDid the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If “Yes,” describe in Part VI when and how the organization made the determination.
cDid the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If “Yes,” explain in Part VI what controls the organization put in place to ensure such use.
4a Was any supported organization not organized in the United States (“foreign supported organization”)? If “Yes,” and if you checked box 12a or 12b in Part I, answer lines 4b and 4c below.
bDid the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations.
cDid the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.
5a Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer lines 5b and 5c below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed; (ii) the reasons for each such action;
(iii)the authority under the organization’s organizing document authorizing such action; and (iv) how the action was accomplished (such as by amendment to the organizing document).
bType I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization’s organizing document?
cSubstitutions only. Was the substitution the result of an event beyond the organization’s control?
6Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.
7Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (as defined in section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990).
8Did the organization make a loan to a disqualified person (as defined in section 4958) not described on line 7? If “Yes,” complete Part I of Schedule L (Form 990).
9a Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons, as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.
bDid one or more disqualified persons (as defined on line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.
cDid a disqualified person (as defined on line 9a) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.
10a Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer line 10b below.
bDid the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings.)
Yes No
1
2
3a
3b
3c
4a
4b
4c
5a
5b
5c
6
9a
9b
9c
10b
Page 5
Part IV
Supporting Organizations (continued)
11Has the organization accepted a gift or contribution from any of the following persons?
aA person who directly or indirectly controls, either alone or together with persons described on lines 11b and 11c below, the governing body of a supported organization?
bA family member of a person described on line 11a above?
cA 35% controlled entity of a person described on line 11a or 11b above? If “Yes” to line 11a, 11b, or 11c, provide detail in Part VI.
Section B. Type I Supporting Organizations
11a
11b
11c
1Did the governing body, members of the governing body, officers acting in their official capacity, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s officers, directors, or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove officers, directors, or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.
2Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the supporting organization.
Section C. Type II Supporting Organizations
1Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).
Section D. All Type III Supporting Organizations
1Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?
2Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If “No,” explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).
3By reason of the relationship described on line 2, above, did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If “Yes,” describe in Part VI the role the organization’s supported organizations played in this regard.
Section E. Type III Functionally Integrated Supporting Organizations
3
1Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions).
a The organization satisfied the Activities Test. Complete line 2 below.
b The organization is the parent of each of its supported organizations. Complete line 3 below.
c The organization supported a governmental entity. Describe in Part VI how you supported a governmental entity (see instructions).
2 Activities Test. Answer lines 2a and 2b below.
aDid substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If “Yes,” then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined
that these activities constituted substantially all of its activities.
bDid the activities described on line 2a, above, constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If “Yes,” explain in Part VI the reasons for the organization’s position that its supported organization(s) would
have engaged in these activities but for the organization’s involvement.
3Parent of Supported Organizations. Answer lines 3a and 3b below.
aDid the organization have the power to regularly appoint or elect a majority of the officers, directors, or
trustees of each of the supported organizations? If “Yes” or “No,” provide details in Part VI.
b Did the organization exercise a substantial degree of direction over the policies, programs, and activities of each
of its supported organizations? If “Yes,” describe in Part VI the role played by the organization in this regard.
Page 6
Part V
Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations
1 Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970 (explain in Part VI). See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.
Section A—Adjusted Net Income
(A) Prior Year
(B) Current Year
(optional)
Net short-term capital gain
Recoveries of prior-year distributions
Other gross income (see instructions)
4
Add lines 1 through 3.
5
Depreciation and depletion
6Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of
property held for production of income (see instructions)
Other expenses (see instructions)
Adjusted Net Income (subtract lines 5, 6, and 7 from line 4)
Section B—Minimum Asset Amount
1Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):
Average monthly value of securities
1a
b Average monthly cash balances
1b
Fair market value of other non-exempt-use assets
1c
d Total (add lines 1a, 1b, and 1c)
1d
eDiscount claimed for blockage or other factors (explain in detail in Part VI):
Acquisition indebtedness applicable to non-exempt-use assets
Subtract line 2 from line 1d.
4Cash deemed held for exempt use. Enter 0.015 of line 3 (for greater amount,
see instructions).
Net value of non-exempt-use assets (subtract line 4 from line 3)
Multiply line 5 by 0.035.
Minimum Asset Amount (add line 7 to line 6)
Section C—Distributable Amount
Current Year
Adjusted net income for prior year (from Section A, line 8, column A)
Enter 0.85 of line 1.
Minimum asset amount for prior year (from Section B, line 8, column A)
Enter greater of line 2 or line 3.
Income tax imposed in prior year
6Distributable Amount. Subtract line 5 from line 4, unless subject to
emergency temporary reduction (see instructions).
7 Check here if the current year is the organization’s first as a non-functionally integrated Type III supporting organization (see instructions).
Page 7
Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued)
Section D—Distributions
Amounts paid to supported organizations to accomplish exempt purposes
Amounts paid to perform activity that directly furthers exempt purposes of supported
organizations, in excess of income from activity
Administrative expenses paid to accomplish exempt purposes of supported organizations
Amounts paid to acquire exempt-use assets
Qualified set-aside amounts (prior IRS approval required—provide details in Part VI)
Other distributions (describe in Part VI). See instructions.
Total annual distributions. Add lines 1 through 6.
Distributions to attentive supported organizations to which the organization is responsive
(provide details in Part VI). See instructions.
Distributable amount for 2021 from Section C, line 6
Line 8 amount divided by line 9 amount
(i)
(ii)
(iii)
Section E—Distribution Allocations
Underdistributions
Distributable
Excess Distributions
Pre-2021
Amount for 2021
Underdistributions, if any, for years prior to 2021
(reasonable cause required—explain in Part VI). See
instructions.
Excess distributions carryover, if any, to 2021
From 2016
From 2017
From 2018
From 2019
e
From 2020
f
Total of lines 3a through 3e
g
Applied to underdistributions of prior years
h
Applied to 2021 distributable amount
i
Carryover from 2016 not applied (see instructions)
j
Remainder. Subtract lines 3g, 3h, and 3i from line 3f.
Distributions for 2021 from
Section D, line 7:
$
Remainder. Subtract lines 4a and 4b from line 4.
Remaining underdistributions for years prior to 2021, if
any. Subtract lines 3g and 4a from line 2. For result
greater than zero, explain in Part VI. See instructions.
Remaining underdistributions for 2021. Subtract lines 3h
and 4b from line 1. For result greater than zero, explain in
Part VI. See instructions.
Excess distributions carryover to 2022. Add lines 3j
and 4c.
Breakdown of line 7:
Excess from 2017 . . .
Excess from 2018 . . .
Excess from 2019 . . .
Excess from 2020 . . .
Excess from 2021 . . .
Page 8
Part VI
Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part
III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section
B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b,
3a, and 3b; Part V, line 1; Part V, Section B, line 1e; Part V, Section D, lines 5, 6, and 8; and Part V, Section E,
lines 2, 5, and 6. Also complete this part for any additional information. (See instructions.)
Completing the IRS Schedule A of the 990 or 990-EZ form is a critical step for many nonprofit organizations. This document is essential for maintaining your organization's tax-exempt status and providing the IRS with important information regarding your public charity status. The process can seem daunting at first, but with clear instructions, it is entirely manageable. Below, you'll find a step-by-step guide to help you navigate through each part of the form accurately and efficiently. Remember, taking your time to ensure all information is correct can save you from potential issues down the line.
After submitting your Schedule A of the 990 or 990-EZ form, you have taken an important step in maintaining your organization's compliance and transparency. The information provided will be reviewed by the IRS to ensure your organization meets the public support criteria necessary for tax-exempt status. Keep an eye out for any correspondence from the IRS, as additional information or clarification may occasionally be required. By following these steps and ensuring the accuracy of your submission, you can confidently contribute to your organization's continued success and integrity.
What is the IRS Schedule A 990 or 990-EZ form?
Schedule A (Form 990 or 990-EZ) is a tax form that public charities and certain other nonprofits must file annually with the IRS. This form provides detailed information about an organization's public charity status and public support. It is designed to show that the nonprofit meets the public support test, qualifying it for public charity status and thus, certain tax exemptions.
Who needs to file Schedule A (Form 990 or 990-EZ)?
Organizations that have received a determination from the IRS as a public charity must file Schedule A along with their Form 990 or 990-EZ. This includes organizations exempt under section 501(c)(3) and some 501(c)(4) organizations. However, churches, their integrated auxiliaries, and conventions or associations of churches are not required to file.
What information do I need to include on Schedule A?
The form requires details about the organization’s revenues, including gifts, grants, and other contributions. It requests specifics about the nature and amount of public support received. The form will ask for financial details over the current and previous four years to calculate the public support percentage. Information related to the organization's activities, management, and operational finances may also be needed to complete other sections of Schedule A.
How do I determine if my organization meets the public support test on Schedule A?
Public support tests are calculated based on the amount of support received from the general public, government agencies, and other public sources compared to total support received, including gross investment income and net unrelated business income. The specific calculations differ depending on whether the organization is classified under Section 509(a)(1) and 170(b)(1)(A)(vi) or under Section 509(a)(2). Generally, an organization must receive at least one-third of its support from the public to meet the test for public charity status, although there are exceptions and other tests available.
What happens if my organization fails to meet the public support test?
If an organization fails to meet the public support test for a certain period, it may lose its public charity status and transition to a private foundation status, resulting in different tax implications, such as subject to excise taxes and required to pay a minimum amount of its income towards its charitable activities. Organizations have an opportunity to provide explanations and potential reasons why they might continue to qualify as a public charity, despite not meeting the test, through Schedule A's Part IV.
One common mistake is not thoroughly documenting contributions. People often overlook the importance of keeping detailed records of all donations, especially non-cash contributions. This documentation is crucial for accurately filling out the form and for substantiating the contributions if ever questioned by the IRS.
Another error involves incorrectly classifying the organization. Schedule A requires organizations to categorize themselves according to their exempt status and the nature of their activities. Misclassification can lead to the application of wrong rules and limits, potentially affecting the organization's tax-exempt status.
A third mistake is failing to properly calculate and report expenses. It's essential to accurately report both program service expenses and administrative expenses. Mixing these up, or not properly allocating costs between the two, can give a misleading picture of how an organization is using its funds, which can affect public perception and IRS evaluations.
Last but not least, skipping parts of the form that do apply. Sometimes, individuals might think certain sections or questions do not apply to their organization and choose to leave them blank. This oversight can raise red flags with the IRS, leading to unnecessary scrutiny or even an audit. It's better to thoroughly review the entire form and consult with a professional if there's any uncertainty about what applies.
Always keep detailed records of contributions to ensure accurate reporting.
Double-check the organization's classification to make sure it aligns with the IRS's categories.
Accurately allocate expenses between program services and administration to provide a clear picture of how funds are used.
Complete every applicable section of the form to avoid unintended attention from the IRS.
When preparing the IRS Schedule A of the Form 990 or 990-EZ, which is necessary for public charities to demonstrate their public support status, it's crucial to gather and complete several other documents that provide a detailed picture of an organization's operations, financial health, and compliance with tax laws. The Schedule A is only a part of the larger reporting requirements necessitated by the IRS to ensure transparency and adherence to the standards for tax-exempt status. Here are other commonly used forms and documents that often accompany the Schedule A, each serving its unique purpose in the filing process.
These documents, when completed thoughtfully and accurately, provide a comprehensive view of a non-profit's operations, helping to maintain its status in good standing and ensuring continued eligibility for tax-exempt benefits. As always, consulting with a tax professional or attorney who specializes in non-profit law can provide valuable guidance through the complexities of tax law and filing requirements.
Form 1040 (Schedule C) - Profit or Loss from Business: Similar to the IRS Schedule A (990 or 990-EZ), the Schedule C form is used by individuals to report income or loss from a business they operated or a profession they practiced as a sole proprietor. Both documents require detailed financial information and are essential for calculating tax liabilities based on the operational or professional activities conducted.
Form 1065 - U.S. Return of Partnership Income: This form is used by domestic partnerships to report their income, gains, losses, deductions, credits, etc. It is similar to the Schedule A (990 or 990-EZ) because both forms involve reporting the financial activities and condition of an entity to the IRS, which aids in determining the entity’s tax obligations.
Form 1120 - U.S. Corporation Income Tax Return: Corporations use Form 1120 to report their income, gains, losses, deductions, and credits, and to figure out their income tax liability. Like the Schedule A (990 or 990-EZ), this form requires detailed financial information and is structured to ensure that entities pay their fair share of taxes, based on their financial activities and status.
Form 1023 - Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code: This form is filed by organizations seeking to be recognized as exempt from federal income tax under section 501(c)(3). Both Form 1023 and Schedule A (990 or 990-EZ) are specifically designed for non-profit organizations. While Form 1023 is used to establish tax-exempt status, Schedule A (990 or 990-EZ) is used annually to maintain it, by providing the IRS with detailed accounts of the organization’s financial activities.
Form 5500 - Annual Return/Report of Employee Benefit Plan: This form is filed by plan administrators to satisfy annual reporting requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. Both the Form 5500 and Schedule A (990 or 990-EZ) share the purpose of disclosing financial details to ensure compliance with federal regulations, although they target different types of entities - employee benefit plans in the case of the Form 5500, and charitable organizations for Schedule A (990 or 990-EZ).
When filing IRS Schedule A (Form 990 or 990-EZ), organizations are reported based on their public charity status and support. Accuracy and thoroughness are key. Below are some essential do's and don'ts to keep in mind:
Review the IRS instructions for Schedule A meticulously to ensure your understanding of each section and its requirements.
Ensure that your organization’s financial information is up to date and accurate before you start filling out the form. This step is crucial for reporting donations, grants, and other forms of income.
Maintain detailed records of your public support over the past five years, as this information is critical for the public support calculation in Schedule A.
Utilize the IRS guidelines to determine the correct public charity classification for your organization. Misclassification can lead to unnecessary scrutiny or the loss of tax-exempt status.
Consult with a tax professional if you encounter questions or complexities. It’s better to seek advice than to submit an incorrect form.
Forget to sign and date the form. An unsigned form is considered incomplete and can lead to delays.
Mix up financial figures from different fiscal years. Each year should be reported separately and clearly.
Ignore the instructions regarding attachments. If additional information is required, make sure it is clear, complete, and formatted as instructed.
Underestimate the importance of deadlines. Late submissions can result in penalties and can put your tax-exempt status at risk.
When navigating the complexities of nonprofit taxation and compliance, the IRS Schedule A (990 or 990-EZ) form often becomes a topic of discussion. This form, integral for organizations maintaining their tax-exempt status, is surrounded by a bevy of misconceptions and misunderstandings. Below are five common misconceptions about the Schedule A form and the truths behind them:
Dispelling these misconceptions is essential for nonprofit leaders to ensure their organizations remain in good standing with the IRS. Accurate completion and submission of IRS Schedule A (990 or 990-EZ) can safeguard the nonprofit's tax-exempt status, aiding in its mission to contribute positively to the community it serves.
Filling out the IRS Schedule A (990 or 990-EZ) is essential for maintaining an organization's tax-exempt status and ensuring compliance with IRS regulations. This form is used by public charities and certain other nonprofits to provide the IRS with information about their public support status. Understanding its components and requirements can help organizations accurately present their financial and operational information. Below are five key takeaways about filling out and using the IRS Schedule A (990 or 990-EZ) form:
Thorough preparation and a careful review of the IRS Schedule A (990 or 990-EZ) can help ensure that your organization remains in good standing. If you're unsure about how to classify your organization, what information to include, or how to calculate public support percentages, consulting with a tax professional experienced in nonprofit filings can be very beneficial.
Navy Eval Pdf - Provides a structured framework for feedback and counseling, benefiting both evaluator and recipient.
Osha 300 Log Requirements - Assists in determining the need for workplace adjustments or additional employee training to prevent future accidents.
Ncnda Template - Legally binding parties to respect the secrecy of shared business insights and potential opportunities.