us internal revenue service: i990pf--1995

8/14/2019 US Internal Revenue Service: i990pf--1995

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Cat. No. 11290Y

Instructions forForm 990-PFReturn of Private Foundation or Section

4947(a)(1) Nonexempt Charitable TrustTreated as a Private Foundation

Section references are to the Internal Revenue Code unless otherwise noted.

Department of the TreasuryInternal Revenue Service

Paperwork ReductionAct NoticeWe ask for the information on this formto carry out the Internal Revenue laws ofthe United States. You are required togive us the information. We need it toensure that you are complying withthese laws and to allow us to figure andcollect the right amount of tax.

The time needed to complete and filethis form will vary depending onindividual circumstances. The estimatedaverage time is:

Recordkeeping 140 hr., 23 min.

Learning about thelaw or the form 27 hr., 23 min.

Preparing the form 31 hr., 49 min.

Copying, assembling, andsending the form to the IRS 16 min.

If you have comments concerning theaccuracy of these time estimates orsuggestions for making this formsimpler, we would be happy to hearfrom you. You can write to the TaxForms Committee, Western AreaDistribution Center, Rancho Cordova,CA 95743-0001. DO NOT send the taxform to this address. Instead, see Whenand Where To File on page 4.

Purpose of Form.Form 990-PF isused by private foundations and bysection 4947(a)(1) nonexempt charitabletrusts that are treated as privatefoundations. These organizations usethis form to figure the tax on netinvestment income and to reportcharitable distributions and activities.The form also serves as a substitute forthe section 4947(a)(1) nonexempt

charitable trusts income tax return,Form 1041, U.S. Income Tax Return forEstates and Trusts, when the trust hasno taxable income.

Contents Page

A. Who Must File 2

B. Which Parts To Complete 2

C. Definitions 2

D. Other Forms You May Need ToFile 2

E. Useful Publications 3

F. Use of Form 990-PF To SatisfyState Report ing Requirements 3

G. Furnishing Copies of Form 990-PFto State Officials 4

H. Accounting Period 4

I. Accounting Methods 4

J. When and Where To File 4

K. Extension of Time To File 5

L. Amended Return 5

M. Penalty for Failure To File Timely,Completely, or Correctly 5

N. Penalty for Not Paying Tax onTime 5

O. Figuring and Paying EstimatedTaxes on Net Investment Income 5

P. Depositary Method of TaxPayment for Domestic PrivateFoundations 5

Q. Public Inspection Requirements 6

R. Disclosures Regarding CertainInformation and ServicesFurnished 6

S. Organizations Organized orCreated in a Foreign Country orU.S. Possession 6

T. Liquidation, Dissolution,Termination, or SubstantialContraction 7

U. Filing Requirements DuringSection 507(b)(1)(B) Termination 7

V. Special Rules for Section507(b)(1)(B) Terminations 7

W. RoundingCurrencyAttachments 7

Specific Instructions 8

Part IAnalysis of Revenue andExpenses 8

Part IIBalance Sheets 12

Part IIIAnalysis of Changes inNet Assets or Fund Balances 14

Contents Page

Part IVCapital Gains and Lossesfor Tax on Investment Income 15

Part VQualification Under Section4940(e) for Reduced Tax onNet Investment Income 15

Part VIExcise Tax on InvestmentIncome 15

Part VII-AStatements Regarding

Activities 16Part VII-BActivities for Which Form4720 May Be Required 17

Part VIIIInformation About Officers,Directors, Trustees, etc. 17

Part IX-ASummary of DirectCharitable Activities 18

Part IX-BSummary of Program-Related Investments 19

Part XMinimum Investment Return 19

Part XIDistributable Amount 20

Part XIIQualifying Distribut ions 21

Part XIIIUndistributed Income 21

Part XIVPrivate Operating

Foundations 22Part XVSupplementary Information 23

Part XVI-AAnalysis of Income-Producing Activities 23

Part XVI-BRelationship of Activitiesto the Accomplishment of ExemptPurposes 24

Part XVIIInformation RegardingTransfers To and Transactions andRelationships With NoncharitableExempt Organizations 24

Part XVIIIPublic Inspection 25

Signature 25

Exclusion Codes 26

Item To NoteYou can use your computer to get taxforms and publications. If you subscribeto an on-line service, ask if IRSinformation is available and, if so, howto access it. You can also getinformation through IRIS, the InternalRevenue Information Service, onFedWorld, a government bulletin board.Tax forms, instructions, publications,and other IRS information are availablethrough IRIS.


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IRIS is accessible directly by calling703-321-8020. On the Internet, you cantelnet to fedworld.gov or, for file transferprotocol services, connect toftp.fedworld.gov. If you are using theWorldWide Web, connect tohttp://www.ustreas.gov.

FedWorlds help desk offers technicalassistance on accessing IRIS (not taxhelp) during regular business hours at703-487-4608. The IRIS menus offerinformation on available file formats andsoftware needed to read and print files.You must print the forms to use them;the forms are not designed to be filledout on-screen.

Tax forms, instructions, andpublications are also available onCD-ROM, including prior-year formsstarting with the 1991 tax year. Forordering information and softwarerequirements, contact the GovernmentPrinting Offices Superintendent ofDocuments (202-512-1800) or FederalBulletin Board (202-512-1387).

General Instructions

A. Who Must FileForm 990-PF is an annual informationreturn that must be filed by:

1. Exempt private foundations (section6033(a), (b), and (c)).

2. Taxable private foundations (section6033(d)).

3. Organizations that agree to privatefoundation status and whoseapplications for exempt status arepending on the due date for filing Form990-PF.

4. Organizations that made an electionunder section 41(e)(6).

5. Organizations that are making asection 507 termination.

6. Section 4947(a)(1) nonexemptcharitable trusts that are treated asprivate foundations (section 6033(d)).

Note: Section 4947(a)(1) nonexemptcharitable trusts that are not treated asprivate foundations do not file Form990-PF. However, they may need to fileForm 990, Return of OrganizationExempt From Income Tax, orForm990-EZ, Short Form Return ofOrganization Exempt From Income Tax.With either of these forms, the trustmust also fileSchedule A (Form 990),Organization Exempt Under Section

501(c)(3) (Except Private Foundation),and Section 501(e), 501(f), 501(k), orSection 4947(a)(1) Nonexempt CharitableTrust Supplementary Information. (SeeForm 990 or Form 990-EZ instructions.)

B. Which Parts To Complete

The parts of the form listed below donot apply to all filers. If an entire part ora major portion of a part does not apply,enter N/A where appropriate.

Part I, column (c), applies only toprivate operating foundations and to

nonoperating private foundations thathave income from charitable activities.

Part II, column (c), with the exceptionof line 16, applies only to organizationshaving at least $5,000 in assets perbooks at some time during the year.Line 16, column (c), applies to all filers.

Part IV does not apply to foreignorganizations.

Parts V and VI do not apply toorganizations making an election undersection 41(e).

Part X does not apply to foreignfoundations that check box D2 on page1 of Form 990-PF unless they claimstatus as a private operating foundation.

Parts XI and XIII do not apply toforeign foundations that check box D2on page 1 of Form 990-PF. However,check the box at the top of Part XI. PartXI does not apply to private operatingfoundations.

Part XIV applies only to privateoperating foundations.

Part XV applies only to organizationshaving assets of $5,000 or more duringthe year. This part does not apply to

certain foreign organizations.C. Definitions

A private foundation is a domestic orforeign organization exempt from incometax under section 501(a); described insection 501(c)(3); and is other than anorganization described in sections509(a)(1) through (4).

In general, churches, hospitals,schools, and broadly publicly supportedorganizations are excluded from privatefoundation status by these sections.These organizations may be required tofile Form 990 (or Form 990-EZ) insteadof Form 990-PF.

A nonexempt charitable trust treatedas a private foundation is a trust that isnot exempt from tax under section501(a) and all of the unexpired interestsof which are devoted to religious,charitable, or other purposes describedin section 170(c)(2)(B), and for which adeduction was allowed under a sectionof the Code listed in section 4947(a)(1).

A taxable foundation is anorganization that is no longer exemptunder section 501(a) as an organizationdescribed in section 501(c)(3). Though itmay operate as a taxable entity, it willcontinue to be treated as a private

foundation until that status is terminatedunder section 507.

A foundation manager is an officer,director, or trustee of a foundation, or anindividual who has powers similar tothose of officers, directors, or trustees.In the case of any act or failure to act,the term foundation manager may alsoinclude employees of the foundationwho have the authority to act.

A disqualified person is:

1. A substantial contributor (seeinstructions for Part VII-A, line 10, onpage 16);

2. A foundation manager;

3. A person who owns more than 20%of a corporation, partnership, trust, orunincorporated enterprise which is itselfa substantial contributor;

4. A family member of an individualdescribed in 1, 2, or 3 above; or

5. A corporation, partnership, trust, orestate in which persons described in 1,

2, 3, or 4 above own a total beneficialinterest of more than 35%.

6. For purposes of section 4941(self-dealing), a disqualified person alsoincludes certain government officials.(See section 4946(c) and the relatedregulations.)

7. For purposes of section 4943(excess business holdings), adisqualified person also includes:

a. A private foundation which iseffectively controlled (directly orindirectly) by the same persons whocontrol the private foundation inquestion, or

b. A private foundation to whichsubstantially all of the contributions weremade (directly or indirectly) by one ormore of the persons described in 1, 2,and 3 above, or members of theirfamilies, within the meaning of section4946(d).

An organization is controlled by afoundation or by one or moredisqualified persons with respect to thefoundation if any of these persons may,by combining their votes or positions ofauthority, require the organization tomake an expenditure or prevent theorganization from making anexpenditure, regardless of the method of

control. Control is determined withoutregard to the conditions imposed by afoundation on the manner in which thecontribution must be used.

D. Other Forms You May Need ToFile

Form W-2, Wage and Tax Statement,and Form W-3, Transmittal of Incomeand Tax Statements.

Form 941.Employers QuarterlyFederal Tax Return. Used to reportsocial security, Medicare, and incometaxes withheld by an employer andsocial security and Medicare taxes paid

by an employer.If income, social security, and

Medicare taxes that must be withheldare not withheld or are not paid to theIRS, a Trust Fund Recovery Penalty mayapply. The penalty is 100% of suchunpaid taxes.

This penalty may be imposed on allpersons (including volunteers) whom theIRS determines to be responsible forcollecting, accounting for, and payingover these taxes, and who willfully didnot do so.


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Form 990-T.Exempt OrganizationBusiness Income Tax Return. Everyorganization exempt from income taxunder section 501(a) that has total grossincome of $1,000 or more from all tradesor businesses that are unrelated to theorganizations exempt purpose must filea return on Form 990-T.

Form 990-W.Estimated Tax onUnrelated Business Taxable Income forTax-Exempt Organizations (and onInvestment Income for PrivateFoundations).

Form 1041.U.S. Income Tax Returnfor Estates and Trusts. Required ofsection 4947(a)(1) nonexempt charitabletrusts that also file Form 990-PF.However, if the trust does not have anytaxable income under the income taxprovisions (subtitle A of the Code), itmay use the filing of Form 990-PF tosatisfy its Form 1041 filing requirementunder section 6012. If this condition ismet, check the box for question 13, PartVII-A, of Form 990-PF and do not fileForm 1041.

Form 1041-ES.Estimated Income Taxfor Estates and Trusts.

Form 1096.Annual Summary andTransmittal of U.S. Information Returns.

Forms 1099-INT, MISC, OID, and R.Information returns for reporting certaininterest; miscellaneous income, medicaland health care payments, andnonemployee compensation; originalissue discount; and distributions frompensions, annuities, retirement orprofit-sharing plans, IRAs, insurancecontracts, etc.

Form 1120.U.S. Corporation IncomeTax Return. Filed by nonexempt taxableprivate foundations that have taxableincome under the income tax provisions(subtitle A of the Code). The Form990-PF annual information return is alsofiled by these taxable foundations.

Form 1120-POL.U.S. Income TaxReturn for Certain PoliticalOrganizations. Section 501(c)organizations must file Form 1120-POL iftheir political expenditures and their netinvestment income both exceed $100 forthe year.

Form 1128.Application to Adopt,Change, or Retain A Tax Year.

Form 2758.Application for Extensionof Time To File Certain Excise, Income,Information, and Other Returns.

Form 2220.Underpayment ofEstimated Tax by Corporations, is usedby corporations and trusts filing Form990-PF to see if the foundation owes apenalty and to figure the amount of thepenalty. Generally, the foundation is notrequired to file this form because theIRS can figure the amount of anypenalty and bill the foundation for it.However, complete and attach Form2220 even if the foundation does notowe the penalty if:

The annualized income or the adjustedseasonal installment method is used, or

The foundation is a largeorganization, computing its firstrequired installment based on the prioryears tax.

If Form 2220 is attached, check thebox on line 8, Part VI, on page 4 ofForm 990-PF and enter the amount ofany penalty on this line.

Form 4506-A.Request for PublicInspection or Copy of ExemptOrganization Tax Form.

Form 4720.Return of Certain Excise

Taxes on Charities and Other PersonsUnder Chapters 41 and 42 of theInternal Revenue Code, is primarily usedto determine the excise taxes imposedon: acts of self-dealing between privatefoundations and disqualified persons;failure to distribute income; excessbusiness holdings; investments that

jeopardize the foundations charitablepurposes; and making political or othernoncharitable expenditures. Certainexcise taxes and penalties also apply tofoundation managers, substantialcontributors, and certain related personsand are reported on this form.

Form 5500 or 5500-C/R.Employers

who maintain pension, profit-sharing, orother funded deferred compensationplans are generally required to file one ofthe 5500 series of forms shown below.This requirement applies whether or notthe plan is qualified under the InternalRevenue Code and whether or not adeduction is claimed for the current taxyear.

The forms required to be filed are:

Form 5500, Annual Return/Report ofEmployee Benefit Plan (With 100 ormore participants).

Form 5500-C/R, Return/Report ofEmployee Benefit Plan (With fewer than

100 participants).Form 8109.Federal Tax DepositCoupon.

Form 8282.Donee Information Return.Required of the donee of charitablededuction property that sells,exchanges, or otherwise disposes of theproperty within 2 years after the date itreceived the property.

Also required of any successor doneethat disposes of charitable deductionproperty within 2 years after the datethat the donor gave the property to theoriginal donee. (It does not matter whogave the property to the successordonee. It may have been the originaldonee or another successor donee.) Forsuccessor donees, the form must befiled only for any property that wastransferred by the original donee afterJuly 5, 1988.

Form 8275.Taxpayers and tax returnpreparers should attach Form 8275,Disclosure Statement, to Form 990-PFto disclose items or positions (exceptthose contrary to a regulationseeForm 8275-R below) that are nototherwise adequately disclosed on thetax return. The disclosure is made to

avoid parts of the accuracy-relatedpenalty imposed for disregard of rules orsubstantial understatement of tax. Form8275 is also used for disclosures relatingto preparer penalties forunderstatements due to unrealisticpositions or for willful or recklessconduct.

Form 8275-R.Use Form 8275-R,Regulation Disclosure Statement, todisclose any item on a tax return forwhich a position has been taken that iscontrary to Treasury regulations.

Form 8300.Report of Cash PaymentsOver $10,000 Received in a Trade orBusiness. Used to report cash amountsin excess of $10,000 that were receivedin a single transaction (or in two or morerelated transactions) in the course of atrade or business (as defined in section162).

Form 8718.User Fee for ExemptOrganization Determination LetterRequest. Used by a private foundationthat has completed a section 507termination and seeks a determinationletter that it is now a public charity.

Form 8822.Change of Address.

Form 8842.For figuring estimated taxpayments under the annualized incomeinstallment method, file Form 8842,Election To Use Different AnnualizationPeriods for Corporate Estimated Tax, foreach year the organization wants toelect one of the annualization periods insect ion 6655(e)(2)(C). Note: Form 8842 isused by tax-exempt trusts as well ascorporations.

E. Useful Publications

In addition to the publications listedthroughout these instructions, you maywish to get:

Publication 525.Taxable andNontaxable Income.

Publication 578.Tax Information forPrivate Foundations and FoundationManagers.

Publication 583.Starting a Businessand Keeping Records.

Publication 598.Tax on UnrelatedBusiness Income of ExemptOrganizations.

Publication 910.Guide to Free TaxServices.

Publication 1391.Deductibility ofPayments Made to Charities ConductingFund-Raising Events.

Publications and forms are available atno charge through IRS offices or bycalling 1-800-TAX-FORM(1-800-829-3676).

F. Use of Form 990-PF To SatisfyState Reporting Requirements

Some states and local government unitswill accept a copy of Form 990-PF andrequired attachments in place of all orpart of their own financial report forms.

If the organization plans to use Form990-PF to satisfy state or local filing


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requirements, such as those from statecharitable solicitation acts, note thefollowing:

Determine state filing requirements.Consult the appropriate officials of allstates and other jurisdictions in whichthe organization does business todetermine their specific filingrequirements. Doing business in a

jurisdiction may include any of thefollowing: (a) soliciting contributions orgrants by mail or otherwise fromindividuals, businesses, or othercharitable organizations, (b) conductingprograms, (c) having employees withinthat jurisdiction, or (d) maintaining achecking account or owning or rentingproperty there.

Monetary tests may differ.Some orall of the dollar limitations that apply toForm 990-PF when filed with the IRSmay not apply when using Form 990-PFinstead of state or local report forms.IRS dollar limitations that may not meetsome state requirements are the $5,000total assets minimum that requirescompletion of Part II, column (c), andPart XV; and the $50,000 minimum forlisting the highest paid employees andfor listing professional fees in Part VIII.

Additional information may berequired.State and local filingrequirements may require attaching toForm 990-PF one or more of thefollowing: (a) additional financialstatements, such as a complete analysisof functional expenses or a statement ofchanges in net assets, (b) notes tofinancial statements, (c) additionalfinancial schedules, (d) a report on thefinancial statements by an independentaccountant, and (e) answers toadditional questions and otherinformation. Each jurisdiction may

require the additional material to bepresented on forms they provide. Theadditional information does not have tobe submitted with the Form 990-PF filedwith the IRS.

If required information is not providedto a state, the organization may beasked by the state to provide it or tosubmit an amended return, even if theForm 990-PF is accepted by the IRS ascomplete.

Amended returns.If the organizationsubmits supplemental information or filesan amended Form 990-PF with the IRS,it must also include a copy of theinformation or amended return to any

state with which it filed a copy of Form990-PF.

Method of accounting.Many statesrequire that all amounts be reportedbased on the accrual method ofaccounting.

Time for filing may differ.The time forfiling Form 990-PF with the IRS maydiffer from the time for filing statereports.

State registration numbers.Enter theapplicable state or local jurisdictionregistration or identification number in

box B (on page 1) for each jurisdiction inwhich the organization files Form 990-PFinstead of the state or local form. Whenfiling in several jurisdictions, prepare asmany copies as needed with the stateregistration number omitted. Then enterthe applicable registration number onthe copy to be filed with each

jurisdiction.

G. Furnishing Copies of Form990-PF to State Officials

The foundation managers must furnish acopy of the annual Form 990-PF to theattorney general (or designate) of (a)each state which they are required to listin Part VII-A, line 8a, (b) the state inwhich the principal office of thefoundation is located, and (c) the state inwhich the foundation was incorporatedor created. The return must be filed atthe same time it is sent to the IRS. Thefoundation managers must also providea copy of the annual return to theattorney general or other appropriatestate official of any other state whorequests it. The foundation managersmust also attach to all copies of theannual return filed with an attorneygeneral a copy of any Form 4720 filedwith the IRS for the year. These rules donot apply to any foreign foundationwhich, from the date of its creation, hasreceived at least 85% of its support(excluding gross investment income)from sources outside the United States.(See Exceptions in General InstructionQ.)

If the foundation managers submit acopy of Form 990-PF (and Form 4720, ifnecessary) to a state attorney general tosatisfy a state reporting requirement,they do not have to furnish a secondcopy to that attorney general to complywith the Internal Revenue Coderequirements. If there is a state reportingrequirement that the copy of Form990-PF be filed with a state official otherthan the attorney general (such as asecretary of state), then the foundationmanagers must also send a copy of theForm 990-PF to the attorney general ofthat state.

H. Accounting Period

1. File the 1995 return for the calendaryear 1995 or fiscal year beginning in1995. If the return is for a fiscal year, fillin the tax year space at the top of thereturn.

2. The return must be filed on thebasis of the established annualaccounting period of the organization. Ifthe organization has no establishedaccounting period, the return should beon the calendar-year basis.

3. For initial or final returns or achange in accounting period, the 1995form may also be used as the return fora short period (less than 12 months)ending November 30, 1996, or earlier.

In general, to change its accountingperiod the organization must file Form

990-PF by the due date for the shortperiod resulting from the change. At thetop of this short period return, write,Change of Accounting Period.

If the organization changed itsaccounting period within the10-calendar-year period that includesthe beginning of the short period, and ithad a Form 990-PF filing requirement atany time during that 10-year period, itmust also attach a Form 1128 to theshort-period return. See Rev. Proc.85-58, 1985-2 C.B. 740.

I. Accounting Methods

Generally, you should report the financialinformation requested on the basis ofthe accounting method the foundationregularly uses to keep its books andrecords.

Note: Complete Part I, column (d) on thecash receipts and disbursements methodof accounting.

J. When and Where To File

This return must be filed by the 15th dayof the 5th month following the close ofthe foundations accounting period. If

the regular due date falls on a Saturday,Sunday, or legal holiday, file on the nextbusiness day. If the return is filed late,see M. Penalty for Failure To FileTimely, Completely, or Correctly onpage 5.

In case of a complete liquidation,dissolution, or termination, file the returnby the 15th day of the 5th monthfollowing complete liquidation,dissolution, or termination.

Where To File

If the principal officeof the organization

is located in

Use the followingInternal RevenueService Center

address

Alabama, Arkansas, Florida,Georgia, Louisiana,Mississippi, North Carolina,South Carolina, Tennessee

Atlanta, GA39901-0027

Arizona, Colorado, Kansas,New Mexico, Oklahoma,Texas, Utah, Wyoming

Austin, TX73301-0027

Indiana, Kentucky,Michigan, Ohio, WestVirginia

Cincinnati, OH45999-0027

Alaska, California, Hawaii,Idaho, Nevada, Oregon,Washington

Fresno, CA93888-0027

Connecticut, Maine,

Massachusetts, NewHampshire, New York,Rhode Island, Vermont

Holtsville, NY00501-0027

Illinois, Iowa, Minnesota,Missouri, Montana,Nebraska, North Dakota,South Dakota, Wisconsin

Kansas City, MO64999-0027

Delaware, District ofColumbia, Maryland, NewJersey, Pennsylvania,Virginia, any U.S.possession, or foreigncountry

Philadelphia, PA19255-0027


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K. Extension of Time To File

A foundation may use Form 2758 torequest an extension of time to file itsreturn.

L. Amended Return

To change the organizations return forany year, file an amended return,including attachments, with the correctinformation. The amended return mustprovide all the information required bythe form and instructions, not just the

new or corrected information. WriteAmended Return at the top of thereturn.

If the organization files an amendedreturn to claim a refund of tax paidunder section 4940 or 4948, it must filethe amended return within 3 years afterthe date the original return was due orfiled, or within 2 years from the date thetax was paid, whichever date is later.

Note: A copy of the amended returnmust also be sent to appropriate stateofficials. See General Instruction G.

Use Form 4506-A to obtain a copy ofa previously filed return. You can obtain

blank forms for prior years by calling,1-800-TAX-FORM (1-800-829-3676).

M. Penalty for Failure To FileTimely, Completely, or Correctly

Against the organization.If anorganization does not file timely andcompletely, or does not furnish thecorrect information, it must pay $10 foreach day the failure continues, unless itcan show that the failure was due toreasonable cause. Those filing late (afterthe due date, including extensions) mustattach an explanation to the return. Themaximum penalty for each return will notexceed the smaller of $5,000 or 5% of

the gross receipts of the organization forthe year.

Against the responsible person.TheIRS will make written demand that thedelinquent return be filed or theinformation furnished within areasonable time after the mailing of thenotice of the demand. The person failingto comply with the demand on or beforethe date specified will have to pay $10for each day the failure continues,unless there is reasonable cause. Themaximum penalty imposed on allpersons for any one return will notexceed $5,000. If more than one personis liable for any failures, all such persons

are jointly and severally liable for suchfailures (see section 6652(c)).

To avoid filing an incomplete return orhaving to respond to requests formissing information, complete allapplicable line items; answer Yes,No, or N/A (not applicable) to eachquestion on the return; make an entry(including a zero when appropriate) onall total lines; and enter None or N/Aif an entire part does not apply.

Because this return also satisfies thefiling requirements of a tax return under

section 6011 for the tax on investmentincome imposed by section 4940 (or4948 if an exempt foreign organization),the penalties imposed by section 6651for not filing a return (without reasonablecause) also apply.

There are also penalties for willfulfailure to file and for filing fraudulentreturns and statements. See sections7203, 7206, and 7207.

N. Penalty for Not Paying Tax onTime

There is a penalty for not paying taxwhen due (section 6651).The penaltygenerally is 12 of 1% of the unpaid taxfor each month or part of a month thetax remains unpaid, not to exceed 25%of the unpaid tax. If there wasreasonable cause for not paying the taxon time, the penalty can be waived.However, interest is charged on any taxnot paid on time, at the rate provided bysection 6621.

The section 6655 penalties for failureto pay estimated taxes apply to thetaxes on net investment income ofdomestic private foundations and

section 4947(a)(1) nonexempt charitabletrusts. The penalties also apply to anytax on unrelated business income ofthese organizations. For more details,see the discussion of Form 2220 inOther Forms You May Need To File inthese instructions.

O. Figuring and Paying EstimatedTaxes on Net Investment Income

A domestic private foundation mustmake estimated tax payments for theexcise tax on investment income if it canexpect its estimated tax (section 4940tax minus allowable credits) to be $500or more. The number of installment

payments it must make under thedepositary method is determined at thetime during the year that it first meetsthis requirement. For calendar-yeartaxpayers, the first deposit of estimatedtaxes for a year generally should bemade by April 15 of the year.

Although Form 990-W is usedprimarily to compute the installmentpayments of unrelated business incometax, it is also used to determine thetiming and amounts of installmentpayments of the section 4940 tax on netinvestment income.

To figure the estimated tax, multiply

the estimated investment income by thetax rate (1% or 2%, whichever applies)and enter that amount on line 9a ofForm 990-W.

The Form 990-W line items andinstructions for large organizations alsoapply to private foundations. Forpurposes of paying the estimated tax onnet investment income, a largeorganization is one that had netinvestment income of $1 million or morefor any of the 3 tax years immediatelypreceding the tax year involved.

A foundation that does not pay theproper estimated tax when due may besubject to an underpayment penalty forthe period of the underpayment.Generally, a foundation is subject to thepenalty if its tax liability is $500 or moreand it did not make the requiredpayments on time. See the 1996 Form990-W or 1041-ES for information ondetermining the amounts of requiredpayments.

Compute separately any requireddeposits of section 4940 tax andunrelated business income tax. (Seesections 6655(b) and (d) and the Form2220 instructions.)

Note: Section 4947(a)(1) nonexemptcharitable trusts and taxable foundationsthat have income subject to tax undersection 1 or section 11 should see Form1120 for the estimated tax rules.However, section 4947(a)(1) nonexemptcharitable trusts should use Form1041-ES for paying any estimated tax onthat income. Taxable foundations shoulduse Form 8109, and darken the 1120box on that form.

P. Depositary Method of TaxPayment for Domestic PrivateFoundations

The foundation must pay the tax due infull when the return is filed, but no laterthan 412 months after the end of the taxyear.

If the balance of foundation netinvestment income tax due shown online 9, Part VI of Form 990-PF, or line 5cof Form 2758, is less than $500, enclosea check or money order, payable to theInternal Revenue Service, with Form990-PF or send the full balance due withForm 2758. Otherwise, if theorganization is not required to (or does

not voluntarily) use the electronic fundstransfer (EFT) system described below,deposit foundation net investmentincome tax payments (estimated taxpayments and balance of tax due asshown on line 9, Part VI of Form 990-PF,or line 5c of Form 2758) with a FederalTax Deposit Coupon (Form 8109). Donot send deposits directly to an IRSoffice. Mail or deliver the completedForm 8109 with the payment to aqualified depository for Federal taxes orto the Federal Reserve bank (FRB)servicing the foundations geographicarea. Make checks or money orderspayable to that depository or FRB.

To help ensure proper crediting toyour account, write the organizationsemployer identification number, the taxperiod to which the deposit applies, andForm 990-PF on the check or moneyorder. Darken the 990-PF box on thecoupon. Records of these deposits willbe send to the IRS.

A penalty may be imposed if thedeposits are sent to an IRS officeinstead of to an authorized depository orFRB.


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For more information on deposits, seethe instructions in the coupon booklet(Form 8109) and Pub. 583, Starting aBusiness and Keeping Records.

Generally, taxpayers that had totaldeposits of withheld income, socialsecurity, and Medicare taxes duringcalendar year 1993 or 1994 in excess of$47 million are required to deposit alldepository taxes due in 1996 byelectronic funds transfer (EFT).Organizations that were required to usethe EFT system to deposit taxes due in1995 must continue to use the EFTsystem in 1996. TAXLINK, an electronicremittance processing system, must beused to make deposits by EFT.Taxpayers who are not required to makedeposits by EFT may voluntarilyparticipate in TAXLINK. For more detailson TAXLINK, see Rev. Proc. 94-48,1994-2 C.B. 694, and 94-48A, 1994-2C.B. 703. You may also call theTAXLINK HELPLINE at 1-800-829-5469.

Note: Foreign organizations should seethe instructions for Part VI, line 9.

Q. Public Inspection Requirements

From the organizationInformation reported on Form 990-PF,including all attachments, is available forpublic inspection under section 6104(b).This applies both to information requiredby the form and to voluntary information.Therefore, the return and anyattachments should be reproducible.

Annual returns

Foundation managers must make theannual return available for inspectionduring regular business hours at theprincipal office of the foundation, or maygive a free copy to any personrequesting inspection, if the request ismade at the time and in the mannerprescribed in section 6104(d) and therelated regulations.

Notice requirements.A notice that theprivate foundations annual return isavailable for inspection must bepublished by the due date for filing theannual return, including any extensionsof time for filing. The notice must bepublished in a newspaper with generalcirculation in the county in which theprincipal office of the private foundationis located. (A newspaper or journal thatpublishes real estate title transfers orother similar legal notices to satisfy state

statutory requirements is alsoconsidered to have general circulation.)The notice must state that the annualreturn of the private foundation isavailable for inspection at its principaloffice during regular business hours byany citizen who requests inspectionwithin 180 days after the date the noticeis published. It must also show theaddress and telephone number of theprivate foundations principal office andthe name of its principal manager. Aprivate foundation may designate, inaddition to its principal office, any other

location where its annual return will bemade available. Another location mayalso be designated if the foundation hasno principal office or none other than theresidence of a substantial contributor orfoundation manager.

To ensure that the return is availablefor public inspection for the full 180-dayperiod as required by law, do notpublish the notice until the return hasbeen completed and is available forinspection upon request.

Attach a copy of the notice to theForm 990-PF filed with the InternalRevenue Service.

Penalties.If a foundation does notpublish the notice and attach a copy ofit to a timely filed return, there is apenalty of $10 a day, up to a maximumof $5,000 for any one return (section6652(c)). The penalty is imposed on theperson under a duty to act, but who failsto do so without reasonable cause. Thepenalty is also imposed on any personwho does not make the return (includingall required attachments) available forpublic inspection according to thesection 6104(d) provisions discussed

above under Annual returns. If morethan one person is responsible for eitherfailure to act, each person is jointly andseverally liable for the full amount of thepenalty. Any person who willfully fails tocomply is subject to an additionalpenalty of $1,000 (section 6685).

Exceptions. A private foundation thathas terminated its status as such undersection 507(b)(1)(A), by distributing all itsnet assets to one or more publiccharities without keeping any right, title,or interest in those assets, does nothave to publish notice of availability ofits annual return or furnish the return tothe public for the tax year in which it

terminates (Regulations section1.507-2(a)(6)).

The notice and public inspectionprovisions discussed above do not applyto any foreign foundation which, fromthe date of its creation, has received atleast 85% of its support (excludinggross investment income) from sourcesoutside the United States. Therequirement to furnish copies of annualreturns to state officials also does notapply to such foreign foundations (seeGeneral Instruction G).

Exemption applications

Any section 501(c) organization that filed

an application for recognition ofexemption to the Internal RevenueService after July 15, 1987, must makeavailable for public inspection a copy ofits application (and any paperssubmitted in support of its application)and any letter or other document issuedby the IRS in response to theapplication. An organization that filed itsexemption application on or before July15, 1987, must comply with thisrequirement if it had a copy of itsapplication on July 15, 1987. The copyof the application and related

documents must be made available forinspection during regular business hoursat the organizations principal office andat each of its regional or district officeshaving at least three employees.

Any person who does not comply withthe public inspection of applicationrequirement will be charged a penalty of$10 for each day that inspection wasnot permitted. There is no limitation. Nopenalty will be imposed if the failure isdue to reasonable cause. If more thanone person is responsible for failure tocomply with this requirement, eachperson is jointly and severally liable forthe full amount of the penalty. Anyperson who willfully fails to comply issubject to an additional penalty of$1,000.

From the IRS

Both exempt organization returns andapproved exemption applications maybe inspected by the public at IRS districtoffices and at the IRS National Office inWashington, DC.

A request for inspection must be inwriting and must include the name and

address (city and state) of theorganization that filed the return orapplication. A request to inspect a returnshould indicate the type (number) of thereturn and the year(s) involved. Therequest should be sent to the DistrictDirector (Attention: Disclosure Officer) ofthe district in which the requester wantsto inspect the return or application. Ifthe requester wants the inspection atthe IRS National Office, the requestshould be sent to the Commissioner ofInternal Revenue, Attention: Freedom ofInformation Reading Room, 1111Constitution Ave., NW, Washington, DC20224.

Form 4506-A can be used to requesta copy or to inspect an exemptorganization return at an IRS office.There is a charge for photocopying.

R. Disclosures Regarding CertainInformation and ServicesFurnished

A section 501(c) organization that offersto sell or solicits money for specificinformation or a routine service to anyindividual that could be obtained by theindividual from a Federal Governmentagency free or for a nominal chargemust disclose that fact conspicuouslywhen making such offer or solicitation.

Any organization that intentionallydisregards this requirement will besubject to a penalty for each day theoffers or solicitations are made. Thepenalty is the greater of $1,000 or 50%of the total cost of the offers andsolicitations made on that day.

S. Organizations Organized orCreated in a Foreign Country orU.S. Possession

If you apply any provision of any U.S.tax treaty to compute the foundations


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taxable income, tax liability, or taxcredits in a manner different from the990-PF instructions, attach anexplanation.

Regulations section 53.4948-1(b)states that sections 507, 508, andChapter 42 (other than section 4948) donot apply to a foreign private foundationwhich from the date of its creation hasreceived at least 85% of its support (asdefined in section 509(d), other thansection 509(d)(4)) from sources outsidethe United States.

Section 4948(a) imposes a 4% tax onthe gross investment income from U.S.sources (i.e., income from dividends,interest, rents, payments received onsecurities loans (as defined in section512(a)(5)), and royalties not reported onForm 990-T of an exempt foreign privatefoundation. This tax replaces the section4940 tax on the net investment incomeof a domestic private foundation. To payany tax due, see the instructions for PartVI, line 9.

Taxable foreign private foundationsand foreign section 4947(a)(1)nonexempt charitable trusts are not

subject to the excise taxes undersections 4948(a) and 4940, but aresubject to income tax under subtitle A ofthe Code.

Certain foreign foundations are notrequired to send copies of annualreturns to state officials, or comply withthe public inspection and noticerequirements of annual returns. (SeeGeneral Instructions G and Q.)

T. Liquidation, Dissolution,Termination, or SubstantialContraction

Organizations liquidating, etc., mustattach a statement to the returnexplaining any liquidation, dissolution,termination, or substantial contraction.See General Instruction J for filing datesand locations.

The term substantial contractionincludes any partial liquidation or anyother significant disposition of assets(other than transfers for full andadequate consideration or distributionsof current income).

A significant disposition of assetsdoes not include any disposition for atax year if:

1. The total of the dispositions for thetax year is less than 25% of the fair

market value of the net assets of theorganization at the beginning of the taxyear, and

2. The total of the related dispositionsmade during prior tax years (if adisposition is part of a series of relateddispositions made during these prior taxyears) is less than 25% of the fairmarket value of the net assets of theorganization at the beginning of the taxyear in which any of the series of relateddispositions was made.

The facts and circumstances of theparticular case will determine whether asignificant disposition has occurredthrough a series of related dispositions.Ordinarily, a distribution described insection 170(b)(1)(E)(ii) (relating to privatefoundations making qualifyingdistributions out of corpus equal to100% of contributions received duringthe foundations tax year) will not betaken into account as a significantdisposition of assets. See Regulationssection 1.170A-9(g)(2).

In the case of a complete liquidationof a corporation or termination of a trust,state whether a final distribution ofassets was made and the date made.Also, attach a certified copy of theresolution or plan, if any, of liquidation,etc., and all amendments orsupplements not previously filed, as wellas a schedule listing the names andaddresses of all recipients of assetsdistributed in liquidation, dissolution, orsubstantial contraction, and anexplanation of the nature and fair marketvalue of assets distributed to eachrecipient.

Organizations that have terminatedtheir private foundation status undersection 507(b)(1)(A) do not have tocomply with the notice and publicinspection requirements of their annualreturn for the year of termination (seeExceptions in General Instruction Q).

If the organization has ceased to exist,write Final Return at the top of page 1of the return.

If the organization is terminating itsprivate foundation status under section507(b)(1)(B), see General Instructions Uand V below.

U. Filing Requirements During

Section 507(b)(1)(B) TerminationAlthough an organization terminating itsprivate foundation status under section507(b)(1)(B) may be regarded as a publiccharity for certain purposes, it is stillconsidered a private foundation forpurposes of the filing requirements andmust file an annual return on Form990-PF. The return must be filed foreach year in the 60-month terminationperiod, if that period has not expiredbefore the due date of the return.

Regulations under section 507(b)(1)(B)(iii) specify that within 90 days afterthe end of the termination period theorganization must supply information toits key district director establishing thatit has terminated its private foundationstatus and, therefore, qualifies as apublic charity. If information is furnishedestablishing a successful termination,then, for the final year of the terminationperiod, the organization should complywith the filing requirements for the typeof public charity it has become. See theInstructions for Form 990 and ScheduleA (Form 990) for details on filingrequirements. This applies even if thekey district has not confirmed that the

organization has terminated its privatefoundation status by the time the returnfor the final year of the termination isdue (or would be due if a return wererequired).

The organization will be allowed areasonable period of time to file anyprivate foundation returns required (forthe last year of the termination period)but not previously filed if it is laterdetermined that the organization did notterminate its private foundation status.Interest on any tax due will be chargedfrom the original due date of the Form990-PF, but penalties under sections6651 and 6652 will not be assessed ifthe Form 990-PF is filed within theperiod allowed by the key district.

V. Special Rules for Section507(b)(1)(B) Terminations

If the organization is terminating itsprivate foundation status under the60-month provisions of section507(b)(1)(B), special rules apply. (SeeGeneral Instructions T and U.) Underthese rules the organization may fileForm 990-PF without paying the tax on

net investment income if it filed aconsent under section 6501(c)(4) with itsnotification to the district director of itsintention to begin a section 507(b)(1)(B)termination. The consent provides thatthe period of limitation on theassessment of excise tax under section4940 or 4948 on investment income forany tax year in the 60-month period willnot expire until at least 1 year after theperiod for assessing a deficiency for thelast tax year in the 60-month periodwould normally expire. Any foundationnot paying the tax when it files Form990-PF must attach a copy of thesigned consent.

If the foundation did not file theconsent, the tax must be paid in thenormal manner as explained in GeneralInstructions O and P. The organizationmay file a claim for refund aftercompleting termination or during thetermination period. The claim for refundmust be filed on time and theorganization must supply informationestablishing that it qualified as a publiccharity for the period for which it paidthe tax.

W. RoundingCurrencyAttachments

Rounding Off to Whole-Dollar

Amounts.You may show the moneyitems on the return and accompanyingschedules as whole-dollar amounts. Todo so, drop any amount less than 50cents and increase any amount from 50cents through 99 cents to the nexthigher dollar.

Currency and LanguageRequirements.Report all amounts inU.S. dollars (state conversion rate used).Report all items in total, includingamounts from both U.S. and non-U.S.


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sources. All information must be inEnglish.

Attachments.Use the schedules onForm 990-PF. If you need more spaceuse attachments that are the same sizeas the printed forms. On each sheet:

1. Write Form 990-PF, the tax year,and the corresponding schedule numberor letter,

2. Include the organizations nameand employer identification number,

3. Follow the format and line

sequence of the printed form,4. Include the information required by

the form, and

5. Show totals on the printed forms.

Specific InstructionsName and Address.If the organizationreceived a Form 990-PF Package fromthe IRS with a preaddressed label,please use it. If the name or address onthe label is wrong, make corrections onthe label. The address used must bethat of the principal office of thefoundation.

Include the suite, room, or other unitnumber after the street address. If thePost Office does not deliver mail to thestreet address and the organization hasa P.O. box, show the box numberinstead of the street address.

A. Employer Identification Number.The organization should have only oneemployer identification number. If it hasmore than one number, notify theInternal Revenue Service Center at theappropriate address shown underGeneral Instruction J. Explain whatnumbers the organization has, the nameand address to which each number wasassigned, and the address of the

organizations principal office. The IRSwill then advise which number to use.

D2. Foreign Organizations.Check thebox in D2 on page 1 of Form 990-PF ifthe organization meets the 85% test ofRegulations section 53.4948-1(b). Attachthe computation of the 85% test toForm 990-PF.

Note: If the foundation meets the 85%test, do not fill in Parts XI and XIII, butcheck the box at the top of Part XI. Ifthe foundation meets the 85% test, donotfill in Part X unless it is claimingstatus as a private operating foundation.

E. Section 507(b)(1)(A) Terminations.

A private foundation that has terminatedits status as such under section507(b)(1)(A), by distributing all its netassets to one or more public charitieswithout keeping any right, title, orinterest in those assets, should checkthe box in E on page 1 of Form 990-PF.See General Instructions T and Q.

F. 60-Month Termination UnderSection 507(b)(1)(B).Check the box inF on page 1 of Form 990-PF if theorganization is terminating its privatefoundation status under the 60-monthprovisions of section 507(b)(1)(B) during

the period covered by this return. Tobegin such a termination, a privatefoundation must have given advancenotice to its key district director andprovided the information outlined inRegulations section 1.507-2(b)(3). SeeGeneral Instruction U for informationregarding filing requirements during asection 507(b)(1)(B) termination.

See General Instruction V forinformation regarding payment of the taxon investment income (computed in PartVI) during a section 507(b)(1)(B)termination.

H. Type of Organization.Check thebox for Section 501(c)(3) exempt privatefoundation if the foundation has a rulingor determination letter from the IRS ineffect that recognizes its exemption fromFederal income tax as an organizationdescribed in section 501(c)(3) or if theorganizations exemption application ispending with the IRS.

Check the Section 4947(a)(1)nonexempt charitable trust box if thetrust is a nonexempt charitable trusttreated as a private foundation. Allothers, check the Other taxable private

foundation box.I. Fair Market Value of All Assets.Inblock I on page 1 of Form 990-PF, enterthe fair market value of all assets thefoundation held at the end of the taxyear.

Note: This amount should be the sameas the figure reported in Part II, column(c), line 16.

Part IAnalysis of Revenueand ExpensesNote: The amounts in column (a) are therevenue and expenses shown in thebooks and records of the foundation.

The total of amounts in columns (b),(c), and (d) may not necessarily equalthe amounts in column (a). In PartXVI-A, analyze amounts entered incolumn (a) and on line 5b.

Column (a)Revenue andExpenses per BooksEnter in column (a) all items of revenueand expense shown in the books andrecords that increased or decreased thenet assets of the organization. However,do not include the value of servicesdonated to the foundation, or items suchas the free use of equipment or facilities,in contributions received. Also, do notinclude any expenses used to computecapital gains and losses on lines 6, 7,and 8 or expenses included in cost ofgoods sold on line 10b.

Column (b)Net InvestmentIncome

All domestic private foundations(including section 4947(a)(1) nonexemptcharitable trusts) are required to pay anexcise tax each tax year on their netinvestment income.

Exempt foreign foundations aresubject to an excise tax on their grossinvestment income from U.S. sources.These foreign organizations shouldcomplete lines 3, 4, 5, 11, 12, and 27bof column (b) and report only incomederived from U.S. sources. No otherincome should be included. Noexpenses are allowed as deductions.

Gross investment income means thetotal amount of investment income thatwas received by a private foundationfrom all sources. However, it does notinclude any income subject to theunrelated business income tax. Itincludes interest, dividends, rents,payments with respect to securitiesloans (as defined in section 512(a)(5)),royalties received from assets devotedto charitable activities, income fromnotional principal contracts (as definedin Regulations section 1.863-7)), andother substantially similar income fromordinary and routine investmentsexcluded by section 512(b)(1). Therefore,interest received on a student loan isincludible in the gross investmentincome of a private foundation makingthe loan.

Net investment income is the amountby which the sum of gross investmentincome and the capital gain net incomeexceeds the allowable deductionsdiscussed later. Tax-exempt interest ongovernmental obligations and relatedexpenses are excluded.

Include in column (b) all or part of anyamount from column (a) that applies toinvestment income. However, do notinclude in column (b) any interest,dividends, rents or royalties (and relatedexpenses) that were reported on Form990-T.

For example, investment income from

debt-financed property unrelated to theorganizations charitable purpose andcertain rents (and related expenses)treated as unrelated trade or businessincome should be reported on Form990-T. Income from debt-financedproperty that is not taxed under section511 is taxed under section 4940. Thus, ifthe debt/basis percentage of adebt-financed property is 80%, only80% of the gross income (andexpenses) for that property is used tofigure the section 511 tax on Form990-T. The remaining 20% of the grossincome (and expenses) of that propertyis used to figure the section 4940 tax on

net investment income on Form 990-PF.(See Form 990-T and its instructions formore information.)

Include in column (b) all ordinary andnecessary expenses paid or incurred toproduce or collect investment incomefrom: interest, dividends, rents, amountsreceived from payments on securitiesloans (as defined in section 512(a)(5)),royalties, income from notional principalcontracts, and other substantially similarincome from ordinary and routineinvestments excluded by section512(b)(1); or for the management,


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conservation, or maintenance ofproperty held for the production ofincome that is taxable under section4940.

If any of the expenses listed in column(a) are paid or incurred for bothinvestment and charitable purposes,they must be allocated on a reasonablebasis between the investment activitiesand the charitable activities so that onlyexpenses from investment activitiesappear in column (b). Examples ofallocation methods are given in theinstructions for Part IX-A.Note: The deduction for expenses paidor incurred in any tax year for producinggross investment income earned incidentto a charitable function cannot be morethan the amount of income earned fromthe function which is includible as grossinvestment income for the year.

For example, if rental income isincidentally realized in 1995 from historicbuildings held open to the public,deductions for amounts paid or incurredin 1995 for the production of this incomemay not be more than the amount ofrental income includible as gross

investment income in column (b) for1995.

Note: Do not include on lines 1323 ofcolumn (b) any expenses paid orincurred that are allocable to tax-exemptinterest that is excluded from lines 3and 4.

Column (c)Adjusted Net Income

Note: See1 below underNonoperatingPrivate Foundationsto see if you arerequired to make any entries in column(c).

In general, adjusted net income is theamount of a private foundations grossincome that is more than the expensesof earning the income. The modificationsand exclusions explained below areapplied to gross income and expensesin figuring adjusted net income.

For column (c), include income fromcharitable functions, investmentactivities, short-term capital gains frominvestments, amounts set aside, andunrelated trade or business activities. Donot include gifts, grants, orcontributions, or long-term capital gainsor losses. Nonoperating privatefoundations should follow the specialrules that apply.

Note: In completing column (c), include

on each line only that portion of theamount from column (a) that isapplicable to the adjusted net incomecomputation.

Private Operating Foundations.Allorganizations that claim status as privateoperating foundations under section4942(j)(3) or (5) must complete all linesof column (c) that apply, according tothe general rules for income andexpenses that apply to this column, thespecific line instructions for lines 327c,and Special Rule 3 and Examples 1 and2 given below.

Nonoperating Private Foundations.The following special rules andexamples apply to nonoperating privatefoundations.

1. If a nonoperating private foundationhas no income from charitable activitiesthat would be reportable on line 10 orline 11 of Part I, it does not have tomake any entries in column (c).

2. If a nonoperating private foundationhas income from charitable activities, itmust report that income only on lines 10

and/or 11 in column (c). Thesefoundations do not need to report otherkinds of income and expenses (such asinvestment income and expenses) incolumn (c).

3. The expenses attributable to eachspecific charitable activity, limited by theamount of income from the activity,must be reported in column (c) on lines1326. If the expenses of any charitableactivity exceed the income generated bythat activity, only the excess of theseexpenses over the income should bereported in column (d).

Examples. 1 A charitable activitygenerated $5,000 of income and $4,000

of expenses. Report all of the incomeand expenses in column (c) and none incolumn (d).

2 A charitable activity generated$5,000 of income and $6,000 ofexpenses. Report $5,000 of income and$5,000 of expenses in column (c) andthe excess expenses of $1,000 incolumn (d).

Deductible expenses include the partof a private foundations operatingexpenses that is paid or incurred toproduce or collect gross incomereported on lines 311 of column (c). Ifonly part of the property producesincome includible in column (c),deductions such as interest, taxes, andrent must be divided between thecharitable and noncharitable uses of theproperty. If the deductions for propertyused for a charitable, educational, orother similar purpose are more than theincome from the property, the excesswill not be allowed as a deduction butmay be treated as a qualifyingdistribution in Part I, column (d). SeeExamples 1 and 2 above.

Column (d)Disbursements forCharitable Purposes

Note: For amounts entered in column

(d), use the cash receipts anddisbursements method of accounting,regardless of the method of accountingused in keeping the books of thefoundation.

Do not include in column (d) anyamount or part of an amount that isincluded in column (b) or (c).

Expenses entered in column (d) relateto activities that constitute the charitablepurpose of the foundation. Include onlines 1325 all expenses, includingnecessary and reasonable administrative

expenses, paid by the foundation forreligious, charitable, scientific, literary,educational, or other public purposes, orfor the prevention of cruelty to childrenor animals.

For any expense amount entered incolumn (a), enter only the part allocableto the charitable purposes of thefoundation in column (d).

Example. An educational seminarproduced $1,000 in income which wasreportable in columns (a) and (c).

Expenses attributable to this charitableactivity were $1,900. Only $1,000 ofexpense should be reported in column(c) and the remaining $900 in expenseshould be reported in column (d).

The total of the expenses anddisbursements on line 26 is used in PartXII to figure qualifying distributions.

Generally, gifts and grants toorganizations described in section501(c)(3), that have been determined tobe publicly supported charities (i.e.,organizations that are not privatefoundations as defined in section509(a)), are qualifying distribut ions,provided that the granting foundation

does not control the public charity.For purposes of column (d), include a

distribution of property at the fair marketvalue on the date the distribution wasmade.

If you want to provide an analysis ofdisbursements that is more detailed thancolumn (d), you may attach a scheduleinstead of completing lines 1325. Theschedule must include all the specificitems of lines 1325, and the total fromthe schedule must be entered in column(d), line 26.

Line 1Contributions, gifts, grants,etc., received.Enter the total of gross

contributions, gifts, grants, and similaramounts received. If money, securities,or other property valued at $5,000 ormore was received directly or indirectlyfrom any one person during the year,attach a schedule showing the nameand address of the person and theamount and date of each gift madeduring the year.

To determine whether a person hascontributed $5,000 or more, total onlygifts of $1,000 or more from eachperson. Separate and independent giftsneed not be totaled if less than $1,000.If a contribution is in the form ofproperty, describe the property and

include its fair market value.The term person includes

individuals, fiduciaries, partnerships,corporations, associations, trusts, andexempt organizations.

Contributions from split-interest trustsshould be entered on both line 1 ofcolumn (a) and line 2 of column (b). Theyare a part of the amount on line 1.Report contributions only on lines 1and 2.

Generally, a donor making a charitablecontribution of $250 or more will not be


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allowed a Federal income tax deductionunless the donor obtains a writtenacknowledgment from the doneeorganization by the earlier of the date onwhich the donor files a tax return for thetax year in which the contribution wasmade or the due date, includingextensions, for filing that return.However, see section 170(f)(8) and therelated temporary regulations forexceptions to this rule.

The acknowledgment the foundationprovides to the donor must show (a) theamount of cash contributed, (b) adescription of any property contributed,(c) whether the foundation provided anygoods or services to the donor, and (d)a description and a good-faith estimateof the value of any goods or services thefoundation gave in return for thecontribution, unless the goods andservices have insubstantial value orunless a statement is included thatthese goods and services consist solelyof intangible religious benefits.

Generally, if a charitable organizationsolicits or receives a contribution ofmore than $75 for which it gives thedonor something in return (a quid proquo contribution), the organization mustinform the donor, by written statement,that the amount of the contributiondeductible for Federal income taxpurposes is limited to the amount bywhich the contribution exceeds thevalue of the goods or services receivedby the donor. The written statementmust also provide the donor with agood-faith estimate of the value ofgoods or services given in return for thecontribution.

An organization that does not makethe required disclosure for each quid proquo contribution will incur a penalty of

$10 for each failure, not to exceed$5,000 for a particular fundraising eventor mailing, unless it can showreasonable cause for not providing thedisclosure.

An organization must keep records,required by the regulations undersection 170, for all its charitablecontributions.

Donors must file Form 8283, NoncashCharitable Contributions, if theirdeduction for all noncash gifts is morethan $500.

Line 2Certain contributions fromsplit-interest trusts described insection 4947(a)(2).The income portion

of distributions from split-interest truststhat was earned on amounts placed intrust after May 26, 1969 is treated asinvestment income. Include only theincome portion of these distributions online 2. That same figure is a part ofline 1.

Line 3Interest on savings andtemporary cash investments.Incolumn (a), enter the total amount ofinterest income from investments of thetype reportable in Balance Sheets, PartII, line 2. These include savings or other

interest-bearing accounts and temporarycash investments, such as moneymarket funds, commercial paper,certificates of deposit, and U.S. Treasurybills or other government obligations thatmature in less than 1 year.

In column (b), enter the amount ofinterest income shown in column (a). Donot include interest on tax-exemptgovernment obligations.

In column (c), enter the amount ofinterest income shown in column (a).

Include interest on tax-exemptgovernment obligations.

Line 4Dividends and interest fromsecurities.In column (a), enter theamount of dividend and interest incomefrom securities (stocks and bonds) of thetype reportable in Balance Sheets, PartII, line 10. Include amounts receivedfrom payments on securities loans, asdefined in section 512(a)(5). Do notinclude any capital gain dividendsreportable on line 6. Report income fromprogram-related investments on line 11.For debt instruments with an originalissue discount, report the original issuediscount ratably over the life of the bond

on line 4. See section 1272 for moreinformation.

In column (b), enter the amount ofdividend and interest income, andpayments on securities loans fromcolumn (a). Do not include interest ontax-exempt government obligations.

In column (c), enter the amount ofdividends and interest income, andpayments on securities loans fromcolumn (a). Include interest ontax-exempt government obligations.

Line 5aGross rents.In column (a),enter the gross rental income for theyear from investment property reportableon line 11 of Part II.

In columns (b) and (c), enter thegross rental income from column (a).

Line 5bNet rental income or (loss).Figure the net rental income or (loss) forthe year and enter that amount on theentry line to the left of column (a).

Report rents from other sources online 11, Other income. Enter anyexpenses attributable to the rentalincome reported on line 5, such asinterest and depreciation, on lines 1323.

Line 6Net gain or (loss) from sale ofassets.Enter the net gain or (loss) perbooks from all asset sales not includedon line 10.

For assets sold and not included inPart IV, attach a schedule showing:(a) date acquired, manner of acquisition,date sold, and to whom sold, (b) grosssales price, (c) cost, other basis or valueat time of acquisition if donated (statewhich basis), (d) expense of sale andcost of improvements made subsequentto acquisition, and (e) depreciation sinceacquisition, if depreciable property.

Line 7Capital gain net income.Enter the capital gain net income fromPart IV, line 2. See Part IV instructions.

Line 8Net short-term capital gain.

Note: Only private operating foundationsshould figure their short-term capitalgains and report them on line 8.

Include only net short-term capitalgain for the year (assets sold orexchanged that were held not more than1 year). Do not include a net long-termcapital gain or a net loss in column (c).

Do not include a net gain from thesale or exchange of depreciableproperty, or land used in a trade orbusiness (section 1231) and held formore than 1 year on line 8. However,include a net loss from such property online 23 as an Other expense.

In general, organizations may carry thenet short-term capital gain reported inPart IV, line 3, to line 8. However, if thefoundation had any short-term capitalgain from sales of debt-financedproperty, add it to the amount reportedon Part IV, line 3, to figure the amountto include on line 8. For definition ofdebt-financed property, see theinstructions for Form 990-T.Line 9Income modifications.Include on this line:

Amounts received or accrued asrepayments of amounts taken intoaccount as qualifying distributions (seethe instructions for Part XII for anexplanation of qualifying distributions) forany year.

Amounts received or accrued from thesale or other disposition of property tothe extent that the acquisition of theproperty was considered a qualifyingdistribution for any tax year.

Any amount set aside for a specific

project (see explanation in theinstructions for Part XII) that was notnecessary for the purposes for which itwas set aside.

Income received from an estate, butonly if the estate was consideredterminated for income tax purposes dueto a prolonged administration period.

Amounts treated in an earlier tax yearas qualifying distributions to:

a. A private foundation, which is not aprivate operating foundation, if theamounts were not redistributed by thegrantee organization by the close of itstax year following the year in which it

received the funds, orb. An organization controlled by the

distributing foundation or a disqualifiedperson if the amounts were notredistributed by the grantee organizationby the close of its tax year following theyear in which it received the funds.

Lines 10a, b, cGross profit fromsales of inventory.Enter the grosssales (less returns and allowances), costof goods sold, and gross profit or (loss)from the sale of all inventory items,including those sold in the course of


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special events and activities. Theseinventory items are the ones theorganization either makes to sell toothers or buys for resale.

Do not report any sales or exchangesof investments on line 10.

Do not include any profit or (loss) fromthe sale of capital items such assecurities, land, buildings, or equipmenton line 10. Enter these amounts online 6.

Do not include any business expenses

such as salaries, taxes, rent, etc., on line10. Include them on lines 1323.

Attach a schedule showing thefollowing items: Gross sales, Cost ofgoods sold, Gross profit or (loss). Theseitems should be classified according totype of inventory sold (such as books,tapes, other educational or religiousmaterial, etc.). The totals from theschedule should agree with the entrieson lines 10a10c.

In column (c), enter the gross profit or(loss) from sales of inventory shown incolumn (a), line 10c.

Line 11Other income.Enter the

total of all the foundations other incomefor the year. Include all income notreported on lines 1 through 10c. Refer tothe instructions for Part XVI-A, line 11.Include imputed interest on certaindeferred payments figured under section483, and any investment income notreportable on lines 3 through 5,including income from program-relatedinvestments (defined in the instructionsfor Part IX-B). However, do not includeunrealized gains and losses oninvestments carried at market value.Report those as fund balance or netasset adjustments in Part III. Attach aschedule showing the description andamount of the income.

In column (b), enter the amount ofinvestment income included in line 11,column (a). Include dividends, interest,rents, and royalties derived from assetsdevoted to charitable activities, such asinterest on student loans.

In column (c), include all other itemsincludible in adjusted net income notcovered elsewhere in column (c).

Line 12Total.In column (b),domestic organizations should enter thetotal of lines 211. Exempt foreignorganizations, enter the total of lines 3,4, 5, and 11 only.

Line 13Compensation of officers,directors, trustees, etc.In column(a), enter the total compensation for theyear of all officers, directors, andtrustees. If none was paid, enter zero.Complete line 1 of Part VIII to show thecompensation of officers, directors,trustees, and foundation managers.

In columns (b), (c), and (d), enter theportion of the compensation included incolumn (a) that is applicable to thecolumn. For example, in column (c) enterthe portion of the compensationincluded in column (a) that was paid or

incurred to produce or collect incomeincluded in column (c).

Line 14Other employee salaries andwages.Enter the salaries and wagesof all employees other than thoseincluded on line 13.

Line 15Contributions to employeepension plans and other benefits.Enter the employers share of thecontributions the organization paid toqualified and nonqualified pension plansand the employers share of

contributions to employee benefitprograms (such as insurance, health,and welfare programs) that are not anincidental part of a pension plan.Complete the return/report of the Form5500 series appropriate for theorganizations plan. (See the Instructionsfor Form 5500 for information aboutemployee welfare benefit plans requiredto file that form.)

Also include the amount of Federal,state, and local payroll taxes for theyear, but only those that are imposed onthe organization as an employer. Thisincludes the employers share of socialsecurity and Medicare taxes, FUTA tax,

state unemployment compensation tax,and other state and local payroll taxes.Do not include taxes withheld fromemployees salaries and paid over to thevarious governmental units (such asFederal and state income taxes and theemployees share of social security andMedicare taxes).

Lines 16a, b, and cLegal,accounting, and other professionalfees.On the appropriate line(s), enterthe amount of legal, accounting,auditing, and other professional fees(such as fees for fundraising orinvestment services) charged by outsidefirms and individuals who are not

employees of the foundation.Attach a schedule for lines 16a, b, and

c. Show the type of service and amountof expense for each. If the same personprovided more than one of theseservices, include an allocation of thoseexpenses. Report any fines, penalties, or

judgments imposed against thefoundation as a result of legalproceedings on line 23, Other expenses.

Line 18Taxes.Enter the taxes paid(or accrued) during the year. Include alltypes of taxes recorded on the books,including real estate tax not reported online 20; the tax on investment income;and any income tax. Do not enter anytaxes included on line 15. Attach aschedule listing the type and amount ofeach tax reported on line 18.

In column (b), enter only those taxesincluded in column (a) that are related toinvestment income taxable under section4940. Do not include the section 4940tax paid or incurred on net investmentincome or the section 511 tax onunrelated business income. Sales taxesmay not be deducted separately, butmust be treated as a part of the cost ofacquired property, or as a reduction of

the amount realized on disposition of theproperty.

In column (c), enter only those taxesincluded in column (a) that relate toincome included in column (c). Do notinclude any excise tax paid or incurredon the net investment income (as shownin Part VI), or any tax reported on Form990-T.

In column (d), do not include anyexcise tax paid on investment income(as reported in Part VI of this return or

the equivalent part of a return for prioryears) unless the organization is claimingstatus as a private operating foundationand completes Part XIV.

Line 19Depreciation anddepletion.In column (a), enter theexpense recorded in the books for theyear.

For depreciation, attach a scheduleshowing: (a) description of the property,(b) date acquired, (c) cost or other basis(exclude any land), (d) depreciationallowed or allowable in prior years,(e) method of computation, (f) rate (%)or life (years), and (g) depreciation thisyear. On a separate line on the

schedule, show the amount ofdepreciation included in cost of goodssold and not included on line 19.

In columns (b) and (c), a deductionfor depreciation is allowed only forproperty used in the production ofincome reported in the column, and onlyusing the straight line method ofcomputing depreciation. A deduction fordepletion is allowed but must be figuredonly using the cost depletion method.

The basis used in figuring depreciationand depletion is the basis determinedunder normal basis rules, without regardto the special rules for using the fairmarket value on December 31, 1969,that relate only to gain or loss ondispositions for purposes of the tax onnet investment income.

Line 20Occupancy.Enter theamount paid or incurred for the use ofoffice space or other facilities. If thespace is rented or leased, enter theamount of rent. If the space is owned,enter the amount of mortgage interest,real estate taxes, and similar expenses,but not depreciation (reportable on line19). In either case, include the amountfor utilities and related expenses, e.g.,heat, lights, water, power, telephone,sewer, trash removal, outside janitorial

services, and similar services. Do notinclude any salaries of the organizationsown employees that are reportable online 14.

Line 21Travel, conferences, andmeetings.Enter the expenses forofficers, employees or others during theyear for travel, attending conferences,meetings, etc. Include transportation(including fares, mileage allowance, orautomobile expenses), meals andlodging, and related costs whether paidon the basis of a per diem allowance oractual expenses incurred. Do not include


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any compensation paid to those whoparticipate.

In column (b), only 50% of theexpense for business meals, etc., paidor incurred in connection with travel,meetings, etc., relating to the productionof investment income, may be deductedin figuring net investment income(section 274 (n)).

In column (c), enter the total amountof expenses paid or incurred by officers,employees, or others for travel,

conferences, meetings, etc., related toincome included in column (c).

Line 22Printing and publications.Enter the expenses for printing orpublishing and distributing anynewsletters, magazines, etc. Alsoinclude the cost of subscriptions to, orpurchases of, magazines, newspapers,etc.

Line 23Other expenses.Enter allother expenses for the year. Include allexpenses not reported on lines 1322.Attach a schedule showing the type andamount of each expense.

If a deduction is claimed foramortization, attach a schedule showing:

Description of the amortizedexpenses;

Date acquired, completed, orexpended;

Amount amortized;

Deduction for prior years;

Amortization period (number ofmonths);

Current-year amortization; and

Total amount of amortization.

In column (c), in addition to theapplicable portion of expenses fromcolumn (a), include any net loss from thesale or exchange of land or depreciable

property that was held for more than 1year and used in a trade or business.

A deduction for amortization isallowed but only for assets used for theproduction of income reported in column(c).

Line 25Contributions, gifts, grantspaid.Enter the total of allcontributions, gifts, grants, and similaramounts paid (or accrued) for the year.List each contribution, gift, grant, etc., inPart XV, or attach a schedule of theitems included on line 25 and list:(a) each class of activity, (b) separatetotal for each activity, (c) name and

address of donee, (d) relationship ofdonee, if related by blood, marriage,adoption, or employment (includingchildren of employees) to anydisqualified person (see GeneralInstruction C for definitions), and (e) theorganizational status of donee (forexample, public charityan organizationdescribed in section 509(a)(1), (2), or (3)).You do not have to give the name ofany indigent person who received one ormore gifts or grants from the foundationunless that individual is a disqualifiedperson or one who received a total of

more than $1,000 from the foundationduring the year.

Activities should be classifiedaccording to purpose and in greaterdetail than merely classifying them ascharitable, educational, religious, orscientific activities. For example, useidentification such as: payments fornursing service, for fellowships, or forassistance to indigent families.

Foundations may include, as a singleentry on the schedule, the total of

amounts paid as grants for which thefoundation exercised expenditureresponsibility. Attach a separate reportfor each grant.

When the fair market value of theproperty at the time of disbursement isthe measure of a contribution, theschedule must also show: (a) descriptionof the contributed property, (b) bookvalue of the contributed property, (c) themethod used to determine the bookvalue, (d) the method used to determinethe fair market value, and (e) the date ofthe gift. The difference between fairmarket value and book value should beshown in the books of account and as a

net asset adjustment in Part III.In column (d), enter all contributions,

gifts, and grants the foundation paidduring the year on line 25.

Do not include contributions toorganizations controlled by thefoundation or by a disqualified person(see General Instruction C fordefinitions). Do not include contributionsto nonoperating foundations unless thedonees are exempt from tax undersection 501(c)(3), they redistribute thecontributions, and they maintainsufficient evidence of redistributionsaccording to the regulations undersection 4942(g).

Do not reduce the amount of grantspaid in the current year by the amountof grants paid in a prior year that wasreturned or recovered in the currentyear. Report those repayments incolumn (c), line 9, and in Part XI, line 4a.

Do not include any payments ofset-asides (see instructions for Part XII,line 3) taken into account as qualifyingdistributions in the current year or anyprior year. All set-asides are included inqualifying distributions (Part XII, line 3) inthe year of the set-aside regardless ofwhen paid.

Do not include current years

write-offs of prior years program-relatedinvestments. All program-relatedinvestments are included in qualifyingdistributions (Part XII, line 1b) in the yearthe investment is made.

Do not include any payments that arenot qualifying distributions as defined insection 4942(g)(1).

Net Amounts

Line 27aExcess of revenue overexpenses.Subtract line 26, column (a),from line 12, column (a). Enter the result.Generally, the amount shown in column

(a) on this line is also the amount bywhich net assets (or fund balances) haveincreased or decreased for the year. Seethe instructions for Part III, Analysis ofChanges in Net Assets or FundBalances.

Line 27bNet investment income.Domestic organizations, subtract line 26from line 12. Enter the result. Exemptforeign organizations, enter the amountshown on line 12.

The amount entered is subject to the

excise tax imposed on privatefoundations (domestic organizations1% (section 4940(e)), 2% (section4940(a) or (b)), exempt foreignorganizations4% (section 4948)) ascomputed in Part VI. However, if theorganization is a domestic organizationand line 26 is more than line 12 (i.e.,expenses exceed income), enter zero(not a negative amount).

Line 27cAdjusted net income.Subtract line 26, column (c) from line 12,column (c) and enter the result.

Part IIBalance Sheets

For column (b), show the book value atthe end of the year. For column (c),show the fair market value at the end ofthe year. Attached schedules must showthe end-of-year value for each assetlisted in columns (b) and (c).

Foundations whose books of accountincluded total assets of $5,000 or moreat any time during the year mustcomplete all of columns (a), (b), and (c).

Foundations with less than $5,000 oftotal assets per books at all times duringthe year must complete all of columns(a) and (b), and only line 16 of column(c).

Line 1CashNon-interest-

bearing.Enter the amount of cash ondeposit in checking accounts, depositsin transit, change funds, petty cashfunds, or any other non-interest-bearingaccount. Do not include advances toemployees or officers or refundabledeposits paid to suppliers or others.

Line 2Savings and temporary cashinvestments.Enter the total of cash insavings or other interest-bearingaccounts and temporary cashinvestments, such as money marketfunds, commercial paper, certificates ofdeposit, and U.S. Treasury bills or othergovernmental obligations that mature inless than 1 year.

Line 3Accounts receivable.On thedashed lines to the left of column (a),enter the year-end figures for totalaccounts receivable and allowance fordoubtful accounts from the sale ofgoods and/or the performance ofservices. In columns (a), (b), and (c),enter net amounts (total accountsreceivable reduced by the correspondingallowance for doubtful accounts). Claimsagainst vendors or refundable depositswith suppliers or others may be reportedhere if not significant in amount.


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(Otherwise, report them on line 15, Otherassets.) Any receivables due fromofficers, directors, trustees, foundationmanagers, or other disqualified personsmust be reported on line 6. Reportreceivables (including loans andadvances) due from other employees online 15.

Line 4Pledges receivable.On thedashed lines to the left of column (a),enter the year-end figures for totalpledges receivable and allowance fordoubtful accounts (pledges estimated tobe uncollectable). In columns (a), (b),and (c), enter net amounts (total pledgesreceivable reduced by the correspondingallowance for doubtful accounts).

Line 5Grants receivable.Enter thetotal grants receivable fromgovernmental agencies, foundations,and other organizations as of thebeginning and end of the year.

Line 6Receivables due from officers,directors, trustees, and otherdisqualified persons.Enter here (andon an attached schedule describedbelow) all receivables due from officers,directors, trustees, foundation managers,

and other disqualified persons and allsecured