PDF document

- 1 -

                     Userid: CPM                 Schema:        Leadpct: 100%  Pt. size: 9.5      Draft            Ok to Print
                                                 instrx
AH XSL/XML           Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source                              (Init. & Date) _______

Page 1 of 20                                                                                     13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                 Department of the Treasury
                                                                                                 Internal Revenue Service
2022

Instructions for Schedule A 

(Form 990)

Public Charity Status and Public Support

Section references are to the Internal Revenue Code unless      except that in Part V, Sections D and E, distributions must be 
otherwise noted.                                                reported on the cash receipts and disbursements method.
Future developments. For the latest information about              If the accounting method the organization used in 
developments related to Form 990 and its instructions, such     completing the 2021 Schedule A (Form 990) was different 
as legislation enacted after they were published, go to         from the accounting method checked on the 2022 Form 990, 
IRS.gov/Form990.                                                Part XII, line 1, or the 2022 Form 990-EZ, line G, the 
                                                                organization shouldn't report in either Part II or Part III the 
                                                                amounts reported in the applicable columns of the 2021 
General Instructions                                            Schedule A (Form 990). Instead, the organization should 
                                                                report all amounts in Part II or Part III using the accounting 
Note.   Terms in bold are defined in the Glossary of the        method checked on the 2022 Form 990, Part XII, line 1, or 
Instructions for Form 990, Return of Organization Exempt        the 2022 Form 990-EZ, line G.
From Income Tax.                                                        If the organization changed its accounting method 
                                                                        from a prior year, it should provide an explanation in 
Purpose of Schedule                                             TIP
                                                                        Schedule O (Form 990), Supplemental Information to 
Schedule A (Form 990) is used by an organization that files     Form 990 or 990-EZ.
Form 990, Return of Organization Exempt From Income Tax, 
or Form 990-EZ, Short Form Return of Organization Exempt           Example 1.  An organization checks “Cash” on Form 990, 
From Income Tax, to provide the required information about      Part XII, line 1. It should report the amounts in Part II or Part 
public charity status and public support.                       III using the cash method. If the organization filed a 2021 
                                                                Schedule A (Form 990) using the cash method, it should 
Who Must File                                                   report in the 2018 through 2021 columns on the 2022 
An organization that answered “Yes” to Form 990, Part IV,       Schedule A (Form 990) the same amounts that it reported in 
line 1, must complete and attach Schedule A (Form 990) to       the 2018 through 2021 columns on the 2022 Schedule A 
Form 990. Any section 501(c)(3) organization (or                (Form 990).
organization treated as such) that files a Form 990-EZ must 
                                                                   Example 2.  An organization checks “Accrual” on Form 
complete and attach this schedule to Form 990-EZ. These 
                                                                990, Part XII, line 1. The organization reports grants on Form 
include:
                                                                990, Part VIII, line 1, in accordance with the Financial 
• Organizations that are described in section 501(c)(3) and 
                                                                Accounting Standards Board FASB ASC 958 (see the 
are public charities;
                                                                instructions for Form 990, Part VIII, line 1). During the year, 
• Organizations that are described in sections 501(e), 
                                                                the organization receives a grant to be paid in future years. 
501(f), 501(j), 501(k), or 501(n); and
                                                                The organization should report the grant's present value on 
• Nonexempt charitable trusts described in section 
                                                                the 2022 Schedule A (Form 990). The organization should 
4947(a)(1) that aren’t treated as private foundations.
                                                                report accruals of present value increments to the unpaid 
  If an organization isn’t required to file Form 990 or 990-EZ  grant on Schedule A (Form 990) in future years.
but chooses to do so, it must file a complete return and 
provide all of the information requested, including the 
required schedules.                                             Specific Instructions

        Any organization that is exempt from tax under          Part I. Reason for Public Charity 
TIP     section 501(c)(3) but is a private foundation and not 
        a public charity shouldn't file Form 990, Form          Status
990-EZ, or Schedule A (Form 990), but should file Form 
990-PF, Return of Private Foundation or Section 4947(a)(1)      Lines 1–12 (in general)
Trust Treated as Private Foundation. See the instructions to    Check only one of the boxes on lines 1 through 12 to indicate 
Part I.                                                         the reason the organization is a public charity for the tax 
                                                                year. The reason can be the same as stated in the 
Accounting Method                                               organization's tax-exempt determination letter from the IRS 
When completing Schedule A (Form 990), the organization         (“exemption letter”) or subsequent IRS determination letter, 
must use the same accounting method it checked on Form          or it can be different. An organization that doesn't check any 
990, Part XII, line 1, or Form 990-EZ, line G. The organization of the boxes on lines 1 through 12 shouldn't file Form 990, 
must use this accounting method in reporting all amounts on     Form 990-EZ, or Schedule A (Form 990) for the tax year, but 
Schedule A (Form 990), regardless of the accounting method      should file Form 990-PF instead.
it used in completing Schedule A (Form 990) for prior years,       If an organization believes there is more than one reason 
                                                                why it is a public charity, it should check only one box but can 

Oct 06, 2022                                             Cat. No. 11294Q

- 2 -

Page 2 of 20         Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source                                13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

explain the other reasons it qualifies for public charity status       509(a)(3). Based on Rev. Proc. 2021-5, the organization 
in Part VI. An organization that claims a public charity status        submitted a Form 8940 request to the IRS to change its 
other than section 170(b)(1)(A)(vi) can also demonstrate that          classification to public charity status under section 509(a)(2). 
it qualifies under section 170(b)(1)(A)(vi) by completing Part         For the tax year, it meets the requirements of section 509(a)
II; it may want to do so for purposes such as qualifying for the       (2). The organization received a determination letter that it 
first Special Rule in Schedule B (Form 990), Schedule of               has been reclassified as a public charity under section 509(a)
Contributors, by meeting the 33 / % support test.1 3                   (2). The organization should check the box on line 10 and 
   The IRS doesn't update its records on an organization's             complete Part III.
public charity status based on a change the organization               Example 5.          The organization received an exemption 
makes on Schedule A (Form 990). Thus, an organization that             letter that it is a public charity under section 170(b)(1)(A)(vi). 
checks a public charity status different from the reason stated        For the tax year, it doesn't meet the requirements for public 
in its exemption letter or subsequent determination letter,            charity status under section 170(b)(1)(A)(vi) or 509(a)(2), or 
although not required, may submit a request to the IRS                 as a supporting organization under section 509(a)(3). Nor 
Exempt Organizations Determinations Office for a                       does it meet the requirements for public charity status under 
determination letter confirming that it qualifies for the new          any other provision of the Internal Revenue Code. The 
public charity status if the organization wants the IRS records        organization is a private foundation and shouldn't file Form 
to reflect that new public charity status (also referred to as         990, Form 990-EZ, or Schedule A (Form 990) for the tax year 
“private foundation status”). See Form 8940, Request for               but should file Form 990-PF instead.
Miscellaneous Determination, for instructions. A $500 user             Example 6.          The organization received an exemption 
fee must be submitted with such a request. See Appendix A              letter that it is a supporting organization under section 
of Rev. Proc. 2021-5 I.R.B. 250.                                       509(a)(3). The letter doesn't state which type of supporting 
   A subordinate organization of a group exemption that                organization it is. The organization should review the 
is filing its own return, but hasn't received its own tax              instructions for lines 12a through 12d to determine which 
exemption determination letter from the IRS, should check              type best describes the organization. The organization may 
the public charity status box which most accurately describes          wish to file Form 8940 to request a determination of type.
its public charity status.
                                                                       Line 1. Check the box for a church, convention of churches, 
   An organization that doesn't know the public charity status         or association of churches. Pub. 1828, Tax Guide for 
stated in its exemption letter or subsequent determination             Churches and Religious Organizations, lists certain 
letter should call the Exempt Organizations Customer                   characteristics generally attributed to churches. These 
Account Services toll free at 877-829-5500 or write to:                attributes of a church have been developed by the IRS and 
                                                                       by court decisions. They include: distinct legal existence, 
   Internal Revenue Service                                            recognized creed and form of worship, definite and distinct 
   TE/GE Customer Account Services                                     ecclesiastical government, formal code of doctrine and 
   P.O. Box 2508                                                       discipline, distinct religious history, membership not 
   Cincinnati, OH 45201                                                associated with any other church or denomination, 
                                                                       organization of ordained ministers, ordained ministers 
See the following examples.                                            selected after completing prescribed courses of study, 
   Example 1.       The organization received an exemption             literature of its own, established places of worship, regular 
letter that it is a public charity under section 170(b)(1)(A)(vi).     congregations, regular religious services, Sunday schools for 
For the tax year, it meets the requirements for public charity         the religious instruction of the young, and schools for the 
status under section 170(b)(1)(A)(vi). The organization                preparation of its ministers. The IRS generally uses a 
should check the box on line 7 and complete Part II.                   combination of these characteristics, together with other 
                                                                       facts and circumstances, to determine whether an 
   Example 2.       The organization received an exemption             organization is considered a church for federal tax purposes.
letter that it is a public charity under section
170(b)(1)(A)(vi). For the tax year, it doesn't meet the                Line 2. Check the box for a school whose primary function 
requirements for public charity status under section                   is the presentation of formal instruction, which regularly has a 
170(b)(1)(A)(vi). Instead, it meets the requirements for public        faculty, a curriculum, an enrolled body of students, and a 
charity status under section 509(a)(2). The organization               place where educational activities are regularly conducted. A 
should check the box on line 10 and complete Part III.                 private school must have a racially nondiscriminatory policy 
   Example 3.       The organization received an exemption             toward its students. For details about these requirements, 
letter that it is a public charity under section 509(a)(2). For        see Schedule E (Form 990), Schools, and its related 
the tax year, it doesn't meet the requirements for public              instructions.
charity status under section 509(a)(2) or 170(b)(1)(A)(vi).                    An organization that checks the box on line 2 must 
Instead, it meets the requirements for public charity status as        TIP     also complete Schedule E (Form 990), Schools.
a supporting organization under section 509(a)(3). The 
organization should:
                                                                       Line 3. Check the box for an organization whose main 
   1. Check the box for line 12 and either line 12a, 12b, 12c,         purpose is to provide hospital or medical care. A 
or 12d;                                                                rehabilitation institution or an outpatient clinic can qualify as a 
   2. Complete line 12f;                                               hospital if its principal purposes or functions are the providing 
   3. Complete the table on line 12g; and                              of hospital or medical care, but the term doesn't include 
                                                                       medical schools, medical research organizations, 
   4. Complete Part IV and (if applicable) Part V.                     convalescent homes, homes for children or the aged, or 
   Example 4.       The organization received an exemption             vocational training institutions for handicapped individuals.
letter that it is a supporting organization under section 

                                                                   -2-              Instructions for Schedule A (Form 990) 2022

- 3 -

Page 3 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Check the box on line 3 also for a cooperative hospital The organization must meet the same public support test
service organization described in section 501(e). described later for line 7. See Rev. Rul. 82-132, 1982-2 C.B.
107.
The definition of hospital for Schedule A (Form 990),
TIP Part I, is different from the definition for Schedule H Line 6. Only a federal, state, or local government or
(Form 990), Hospitals. Accordingly, see Who Must governmental unit that has received an exemption letter
File in the Instructions for Schedule H (Form 990) about recognizing it as exempt from tax under section 501(c)(3)
whether the organization is also required to complete should check this box. See Rev. Rul. 60-384, 1960-2 C.B.
Schedule H (Form 990). 172.
Line 4. Check the box for an organization whose principal Line 7. Check the box and complete Part II if the
purpose or function is to engage in medical research, and organization meets one of the section 170(b)(1)(A)(vi) public
that is directly engaged in the continuous active conduct of support tests. See the instructions for Part II regarding how
medical research in conjunction with a hospital. The hospital an organization can qualify as a publicly supported
must be described in section 501(c)(3) or operated by the organization under section 170(b)(1)(A)(vi).
federal government, a state or its political subdivision, a U.S. Line 8. Check the box and complete Part II if the
possession or its political subdivision, or the District of organization is a community trust and meets a section
Columbia. 170(b)(1)(A)(vi) public support test. A community trust is a
If the organization primarily gives funds to other charity that attracts large contributions for the benefit of a
organizations (or grants and scholarships to individuals) for particular community or area, often initially from a small
them to do the research, the organization isn't a medical number of donors, and is generally governed by
research organization. representatives of its particular community or area. See
Regulations sections 1.170A-9(f)(10), (11), and (12).
The organization isn't required to be an affiliate of the
hospital, but there must be a joint effort by the organization A community trust claiming it qualifies as a public
and the hospital to maintain continuing close cooperation in ! charity should check the box on line 8 whether it is
the active conduct of medical research. CAUTION structured as a corporation or as a trust.

The definition of medical research for Schedule A Line 9. Check the box if the organization is an agricultural
TIP (Form 990), Part I, is different from the definition for research organization described in section 170(b)(1)(A)(ix)
Schedule H (Form 990), Hospitals. Accordingly, operated in conjunction with a land-grant college or university
research that is medical research for purposes of or a non-land grant college of agriculture. Enter the name,
determining whether an organization is a medical research city, and state of the college or university. You don't have to
organization isn't necessarily medical research for complete Part II.
Schedule H (Form 990) reporting purposes.
Line 10. Check the box and complete Part III if the
Assets test/expenditure test. An organization qualifies as organization meets both of the section 509(a)(2) support
a medical research organization if its principal purpose is tests. See the instructions for Part III regarding how an
medical research, and if it devotes more than half its assets, organization can qualify as a publicly supported organization
or spends at least 3.5% of the fair market value of its under section 509(a)(2).
endowment, directly in conducting medical research. Either Line 11. Check the box only if the organization has received
test can be met based on a computation period consisting of a ruling from the IRS that it is organized and operated
the immediately preceding tax year or the immediately primarily to test for public safety.
preceding 4 tax years.
If an organization doesn't satisfy either the assets test or Lines 12 and 12a–12d. If the organization is a supporting
the expenditure test, it can still qualify as a medical research organization, check the box for line 12 and then check the
organization based on the circumstances involved. appropriate box for line 12a, 12b, 12c, or 12d to indicate the
type of supporting organization it is. The organization must
These tests are discussed in Regulations sections also complete lines 12e and 12f, the table on line 12g, and
1.170A-9(d)(2)(v) and (vi). Under these tests, value the Part IV. If the organization is a Type III non-functionally
organization's assets as of any day in its tax year using the integrated supporting organization, it must also complete
same day every year, and value the endowment at fair Part V.
market value using commonly accepted valuation methods.
See Regulations section 20.2031. For more information about supporting organizations, see
Regulations section 1.509(a)-4 and sections 509(a)(3) and
Line 5. Check the box and complete Part II if the 509(f). For a brief overview of the requirements for
organization receives and manages property for and qualification as a supporting organization, and the different
expends funds to benefit a college or university that is owned types of supporting organizations, see Pub. 557, Tax-Exempt
or operated by one or more states or political subdivisions. Status for Your Organization, and visit IRS.gov/Charities-
The school must be an organization described in the Non-Profits/Section-509(a)(3)-Supporting-Organizations.
instructions for line 2. Use the information later to determine the supporting
Expending funds to benefit a college or university includes organization's type. If the organization checks the box on
acquiring and maintaining the campus, its buildings and line 12e, the letter the organization received from the IRS
equipment, granting scholarships and student loans, and identifies its type. If the box checked on any of lines 12a
making any other payments in connection with the normal through 12d is different from the type stated in the letter (for
functions of colleges and universities. example, because the organization has made significant
changes to its structure or operations resulting in it no longer
qualifying as the type of supporting organization indicated in
its letter), provide an explanation in Part VI. If the organization

Instructions for Schedule A (Form 990) 2022 -3-

- 4 -

Page 4 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

doesn't check the box on line 12e, it should check the box on requirements described in Part V, or (b) the alternative
line 12a, 12b, 12c, or 12d that best describes the type of integral part test for certain trusts in existence on November
supporting organization it is. 20, 1970, described in Part V, line 1.
All supporting organizations, regardless of type, must Line 12e. The organization's exemption letter or subsequent
! be responsive to the needs or demands of one or determination letter may state the type of supporting
CAUTION more supported organizations, and must constitute organization it is. If it does, check the box on this line. If the
an integral part of, or maintain a significant involvement in, letter doesn't state the type, or if the letter states Type III but
the operations of one or more supported organizations. doesn't specify whether functionally integrated or
Although Type III supporting organizations have specific non-functionally integrated, leave this line blank.
“responsiveness” and “integral part” tests that must be met, A grantor to a section 509(a)(3) supporting organization,
the relationship between a Type I or Type II supporting acting in good faith, can rely on this letter in determining
organization and its supported organization(s) must also whether the organization is a Type I Type II Type III , ,
include these responsiveness and integral part functionally integrated, or Type III non-functionally integrated
characteristics. The ability of the supported organization(s) in supporting organization. See Rev. Proc. 2018-32, 2018-23
a Type I or Type II relationship effectively to control the I.R.B. 739.
supporting organization's board generally ensures that these
characteristics are present. If they aren't present, however, Line 12f. A supporting organization must be organized and
don't check any box for lines 12a through 12d. For more operated exclusively to support or benefit one or more
information, see Regulations sections 1.509(a)-4(f)(3) and specified publicly supported organizations. Please write in
(4). the space provided the number of supported organizations.
Include all supported organizations that the organization was
• Type I. A Type I supporting organization is operated, organized to support at any time during the tax year, whether
supervised, or controlled by one or more publicly supported or not they actually received support during the tax year.
organizations. If the organization otherwise qualifies as a
Line 12g. An organization checking a box on line 12a, 12b,
supporting organization and can answer “Yes” to the
12c, or 12d must complete the table on line 12g.
following question, check the box for Type I.
• Columns (i) and (ii). Enter the name and employer
Do the supported organizations have a substantial degree identification number (EIN) for each supported
of direction over the policies, programs, and activities of the organization counted on line 12f. If the organization had
supporting organization, typically by ensuring that the more than five supported organizations during the tax year,
governing body, officers, or membership of the supported enter the additional organizations on duplicate pages of
organizations may regularly appoint or elect a majority of the Schedule A (Form 990), Part I. Use as many duplicate copies
supporting organization's directors or trustees? as needed, and number each page.
• Type II. A Type II supporting organization is supervised • Column (iii). For each supported organization named in
or controlled in connection with one or more publicly column (i), enter the line number (from lines 1 through 10
supported organizations. If the organization otherwise above) that best describes the foundation status of the
qualifies as a supporting organization and can answer “Yes” supported organization.
to the following question, check the box for Type II.
Example 1. If the supported organization is a hospital,
Do the same persons, such as directors, trustees, and then that is an organization described in section 170(b)(1)(A)
officers, supervise or control the supported organization(s) (iii), and you should enter “3” in column (iii).
and the supporting organization?
• Type III—Functionally integrated. Check this box if the Example 2. If the supported organization is a federal,
organization qualifies as a Type III functionally integrated state, or local governmental unit, or foreign government, then
supporting organization by meeting the following that is an organization described in section 170(b)(1)(A)(v),
requirements. and you should enter “6” in column (iii).
1. The organization meets the notification requirement Example 3. If the supported organization is exempt
described in Part IV, Section D, line 1; under section 501(c)(4), 501(c)(5), or 501(c)(6), but can be
supported by a supporting organization (see Regulations
2. The organization meets the responsiveness test (both
section 1.509(a)-4(k)), enter the line number (from lines 1
the relationship requirement and the significant voice
through 10 above) that would describe the section 501(c)(4),
requirement) described in Part IV, Section D, lines 2 and 3;
501(c)(5), or 501(c)(6) organization if it were a section 501(c)
and
(3) organization. Identify the specific code section (501(c)(4),
3. The organization meets one of the alternative integral 501(c)(5), or 501(c)(6)) for each such supported organization
part tests described in Part IV, Section E. in Part VI.
• Type III—Non-functionally integrated. Check this box if
the organization qualifies as a Type III non-functionally The only correct entry in column (iii) is a line number
integrated supporting organization by meeting the following ! (from lines 1 through 10) that corresponds to the
requirements. CAUTION description of the supported organization.
1. The organization meets the notification requirement • Column (iv). Check “Yes” if the supported organization
described in Part IV, Section D, line 1; named in column (i) is specifically named as a supported
2. The organization meets the responsiveness test (both organization in the organization's declaration of trust, articles
the relationship requirement and the significant voice of incorporation, or other governing document.
requirement) described in Part IV, Section D, lines 2 and 3; • Column (v). Enter the total amount of monetary support
and paid to, or for the benefit of, the supported organization
named in column (i) during the tax year. Such monetary
3. The organization meets the integral part test by support may include making payments to or for the use of
meeting either (a) the distribution and attentiveness individual members of the charitable class benefited by the

-4- Instructions for Schedule A (Form 990) 2022

- 5 -

Page 5 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

supported organization (such as scholarships), and to 501(c) that the membership fees are payments to purchase
(3) public charities operated, supervised, or controlled admissions, merchandise, services, or the use of facilities in
directly by or in connection with the supported organization. a related activity, report the membership fees on line 12. To
See Regulations section 1.509(a)-4(e). If no monetary the extent that the membership fees are payments to
support was provided during the tax year, enter “0”. purchase admissions, merchandise, services, or the use of
• Column (vi). In this column, the organization may (but facilities in an unrelated business activity, report the
isn't required to) provide an estimate of the fair market value membership fees on line 9. See Regulations section
of goods, other property, services, and use of facilities that is 1.170A-9(f)(7)(iv). Include qualified sponsorship payments
provided to or for the benefit of the supported organizations under section 513(i).
during the tax year. Describe in Part VI any such goods, other Noncash contributions. Use any reasonable method to
property, services, and use of facilities, whether or not an determine the value of noncash contributions reported on
amount is reported for them in column (vi). line 1.
Don't report any donations of services (such as the value
Part II. Support Schedule for
of donated advertising space or broadcast air time) or
Organizations Described in Sections donations of use of materials, equipment, or facilities, on
line 1 as gifts, grants, or contributions. Donated services and
170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) facilities from a governmental unit only are reported on
If the organization checked a box in Part I, on line 5, line 3.
Loss on uncollectible pledge. If an organization records
CAUTION appropriate dollar amounts. Don't leave Part II blank
! 7, or 8, it should complete Part II and insert the a loss on an uncollectible pledge that it reported on a prior
or report only zeros if the organization had any support year's Schedule A (Form 990), it should deduct that loss from
during the period. If the organization checks the box in Part II, the contribution amount for the year in which it originally
on line 13, it should stop there and not complete the rest of counted that contribution as revenue. For example, if in the
Part II. prior tax year the organization reported a pledged
contribution with a then-present value of $50,000 in Part II,
If the organization checked a box in Part I, on line 5, line 1, column (e), but learned during the current tax year that
TIP 7, or 8 and also checks the box in Part II, on line 18, it wouldn't receive any of that pledged contribution, it should
the organization should complete Part III to deduct the $50,000 from the amount reported in Part II,
determine if it qualifies as a publicly supported organization line 1, column (d), for the prior tax year.
under section 509(a)(2). If it does qualify, the organization Support from a governmental unit. Include on line 1
should instead check the box in Part I, on line 10. support received from a governmental unit. This includes
contributions, but not gross receipts from exercising or
Public Support Test. For an organization to qualify as a performing the organization's tax-exempt purpose or
publicly supported organization under section 170(b)(1)(A) function, which should be reported on line 12. An amount
(vi), either: received from a governmental unit is treated as gross
• 33 / % or more of its total support must come from 1 3 receipts from exercising or performing the organization's
governmental agencies, contributions from the general tax-exempt purpose or function if the purpose of the payment
public, and contributions or grants from other public charities; is primarily to serve the direct and immediate needs of the
or payor governmental unit, and is treated as a contribution, if
• 10% or more of its total support must come from the purpose is primarily to provide a direct benefit to the
governmental agencies, contributions from the general public. For example, a payment to maintain library facilities
public, and contributions or grants from other public charities that are open to the public should be treated as a
and the facts and circumstances indicate it is a publicly contribution. See Regulations section 1.170A-9(f)(8) and
supported organization. Rev. Rul. 81-276, 1981-2 C.B. 128. Refer to the instructions
for Form 990, Part VIII, lines 1e and 2, for more examples
Note. An organization won't meet either of these public addressing the distinction between government payments
support tests if almost all of its support comes from gross that are contributions and government payments that are
receipts from related activities and an insignificant amount of gross receipts from activities related to the organization's
its support comes from governmental units and tax-exempt purpose or function. Medicare and Medicaid
contributions made directly or indirectly by the general payments are treated as gross receipts from patients rather
public. than as contributions from the government payor for
Public support is measured using a 5-year computation purposes of the public support test. See Rev. Rul. 83-153,
period that includes the current and 4 prior tax years 1983-2 C.B. 48.
(including short years). If the organization's current tax year
The Coronavirus Aid, Relief, and Economic Security
or any of its 4 prior tax years were short years, explain in Part
TIP Act (CARES Act) established the Paycheck
VI.
Protection Program (PPP) to provide loans to small
If the organization wasn't a section 501(c)(3) organization businesses as a direct incentive to keep their workers on the
for the entire 5-year period in Part II, report amounts only for payroll. The loans are forgiven if all employee retention
the years the organization was a section 501(c)(3) criteria are met and the funds are used for eligible expenses.
organization. Amounts of PPP loans that are forgiven may be reported on
Line 1. Don't include any “unusual grants.” See Unusual line 1 as contributions from a governmental unit in the tax
grants, later. Include membership fees only to the extent to year when the amounts are forgiven or at such other time as
which the fees are payments to provide support for the provided in Rev. Proc. 2021-48, 2021-49 I.R.B. 835.
organization rather than to purchase admissions,
merchandise, services, or the use of facilities. To the extent

Instructions for Schedule A (Form 990) 2022 -5-

- 6 -

Page 6 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Unusual grants. Unusual grants are generally substantial 990 as revenue in Part VIII or as assets in Part X, or as
contributions and bequests from disinterested persons and revenue or assets on Form 990-EZ, explain in Part VI the
are: basis for characterizing such transfers as contributions but
1. Attracted because of the organization's publicly not as revenue or assets. For example, if an organization is a
supported nature, community foundation that receives and holds a cash
transfer for another tax-exempt organization and reports
2. Unusual and unexpected because of the amount, and contributions of such property on Schedule A (Form 990),
3. Large enough to endanger the organization's status as Part II, line 1, without reporting it on Form 990 as revenue in
normally meeting either the 33 / % public support test or the 1 3 Part VIII or assets in Part X, explain the basis for
10%-facts-and-circumstances test. characterizing the property as contributions but not as
For a list of other factors to be considered in determining revenue or assets.
whether a grant is an unusual grant, see Regulations section Line 2. Enter tax revenue levied for the organization's
1.509(a)-3(c)(4). benefit by a governmental unit and either paid to the
An unusual grant is excluded even if the organization organization or expended on its behalf. Report this amount
receives or accrues the funds over a period of years. whether or not the organization includes this amount as
revenue on its financial statements or elsewhere on Form
Don't report gross investment income items as unusual
990 or 990-EZ.
grants. Instead, include all investment income on line 8.
See Rev. Rul. 76-440, 1976-2 C.B. 58; Regulations Line 3. Enter the value of services or facilities furnished by a
section 1.170A-9(f)(6)(ii); and Regulations sections governmental unit to the organization without charge. Don't
1.509(a)-3(c)(3) and (4) for details about unusual grants. include the value of services or facilities generally furnished
to the public without charge. For example, include the fair
Include in Part VI a list showing the amount, but not the rental value of office space furnished by a governmental unit
grantor, of each unusual grant actually received each year (if to the organization without charge but only if the
the cash accounting method is used) or accrued each year (if governmental unit doesn't generally furnish similar office
the accrual accounting method is used). space to the public without charge. Report these amounts
Don't include the names of the grantors because Part whether or not the organization includes these amounts as
revenue on its financial statements or elsewhere on Form
! VI will be made available for public inspection.
CAUTION 990 or 990-EZ.
Unusual grants recordkeeping. An organization that Line 5. Enter in column (f) the portion of total contributions
received any unusual grants during the 5-year period should by each individual, trust, or corporation included on line 1 for
also keep for its records a list showing, for each year, the the years reported that exceeds 2% of the amount reported
name of the contributor, the date and amount of the grant, in line 11, column (f). In applying the 2% limitation, all
and a brief description of the grant. If the organization used contributions made by a donor and by any person or persons
the cash method for the applicable year, show only the standing in a relationship to the donor that is described in
amounts the organization actually received during that year. section 4946(a)(1)(C) through (a)(1)(G) and the related
If the organization used the accrual method for the applicable regulations (for example, spouses and certain other family
year, show only the amounts the organization accrued for members, and entities where ownership or control interests
that year. An example of this list is given below. exceed a threshold level) will be treated as made by one
Don't file this list with the organization's Form 990 or person. However, the 2% limitation doesn't apply to
contributions from organizations qualifying as publicly
CAUTION inspection.
! 990-EZ because it may be made available for public supported organizations under section 170(b)(1)(A)(vi),
governmental units described in section 170(b)(1)(A)(v), and
other organizations, such as the following, but only if they
Line 1. Example—List of unusual grants also qualify as publicly supported organizations under
section 170(b)(1)(A)(vi).
Year ▶ 2022 Description • Churches described in section 170(b)(1)(A)(i),
• Educational institutions described in section 170(b)(1)(A)
Name ▶ Mr. Distinguished Donor Undeveloped land (ii),
• Hospitals described in section 170(b)(1)(A)(iii),
Date of Grant ▶ January 15, • Organizations operated for the benefit of a college or
2022 university owned or operated by a governmental unit
described in section 170(b)(1)(A)(iv), and
Amount of Grant ▶ $600,000 • Agricultural research organizations described in section
170(b)(1)(A)(ix).
Conservation easements and qualified conservation The organization should keep for its records a list showing
contributions. The organization must report any qualified the name of and amount contributed by each donor (other
conservation contributions and contributions of conservation than a governmental unit or publicly supported
easements consistently with how it reports revenue from organization) whose total gifts during the years reported
such contributions in its books, records, and financial exceed 2% of the amount reported in line 11, column (f). An
statements and in Form 990, Part VIII, Statement of example of this list is given later.
Revenue.
Don't file this list with the organization's Form 990 or
Reporting contributions not reported as revenue. If the ! 990-EZ because it may be made available for public
organization reports any contributions on line 1 of CAUTION inspection.
Schedule A (Form 990), Part I, that it doesn't report on Form

-6- Instructions for Schedule A (Form 990) 2022

- 7 -

Page 7 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 5. Example—List of donors other than governmental units and publicly supported organizations
Assumption: 2% of the amount on Schedule A (Form 990), Part II, line 11, column (f), is $12,000.
Contributors whose total gifts from 2017 through 2021 were in excess of the 2% limitation
(a) (b) (c) (d) (e) (f) (g)
Name 2018 2019 2020 2021 2022 Total Excess
contributions
(column (f)
minus the 2%
limitation)
XYZ Foundation $59,000 $3,000 $18,000 $80,000 $68,000
Banana Office $12,000 $3,000 $1,000 $16,000 $4,000
Supply
Plum Corporation $15,000 $15,000 $30,000 $18,000
John Smith $5,000 $5,000 $5,000 $1,000 $16,000 $4,000
Sue Adams $10,000 $10,000 $10,000 $30,000 $18,000
Raisin Trade $20,000 $7,000 $27,000 $15,000
Assoc.
Total. Add the items in column (g). Enter the total here and on Part II, column (f), line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $127,000

Line 8. Include the gross income from interest, dividends, • A trade or business in which substantially all work is
payments with respect to securities loans (section 512(a)(5)), performed by volunteers (such as book fairs and sales of
rents, royalties, and income from similar sources. Don't gift wrap paper). See section 513(a)(1).
include on this line payments that result from activities of the • A trade or business carried on by the organization
organization that further its exempt purpose. Instead, report primarily for the convenience of its members, students,
these amounts on line 12. patients, officers, or employees. See section 513(a)(2).
• A trade or business which is the selling of merchandise,
Line 9. Enter the organization's net income from conducting substantially all of which the organization received as gifts or
unrelated business activities, whether or not the activities contributions. See section 513(a)(3).
are regularly conducted as a trade or business. See sections • “Qualified public entertainment activities” or “qualified
512 and 513 and the applicable regulations. Include convention and trade show activities” of certain
membership fees to the extent they are payments to organizations. See section 513(d).
purchase admissions, merchandise, services, or the use of • Furnishing certain hospital services. See section 513(e).
facilities in an activity that is an unrelated business. • A trade or business consisting of conducting bingo
When calculating unrelated business taxable income games, but only if the conduct of such games is lawful. See
(UBTI) for this purpose, an exempt organization with more section 513(f).
than one unrelated trade or business may use either its UBTI • Qualified pole rentals by a mutual or cooperative
calculated under section 512(a)(6) or its UBTI calculated in telephone or electric company. See section 513(g).
the aggregate. If a net loss results, enter “0” on this line. • The distribution of certain low-cost articles incidental to the
solicitation of charitable contributions (except to the extent
Line 10. Include all support as defined in section 509(d) that
such gross receipts are properly treated as charitable
isn't included elsewhere in Part II. Explain in Part VI the
contributions reportable on line 1 rather than as proceeds of
nature and source of each amount reported. Don't include
a sale or exchange), and exchange and rental of members
gain or loss from amounts reportable on line 12 or from the
lists. See section 513(h).
sale of capital assets.
Line 13. An organization that checks this box should stop
Line 12. Enter the total amount of gross receipts the
here and shouldn't complete the rest of Part II. It shouldn't
organization received from related activities for all years
make a public support computation on line 14 or 15 or check
reported in Part II. The organization won't be treated as
meeting the section 170(b)(1)(A)(vi), 33 / % public support 1 3 any of the boxes on lines 16 through 18.
test or the 10%-facts-and-circumstances public support test, Example. An organization receives an exemption letter
if almost all of its support consists of gross receipts from from the IRS that it is exempt from tax under section
related activities and an insignificant amount of its support 501(c)(3) and qualifies as a public charity under section
comes from governmental units and public contributions. 170(b)(1)(A)(vi) effective on its date of incorporation. When
See Regulations section 1.170A-9(f)(7)(iii). the organization prepares Part II for each of its first 5 tax
Include on line 12 gross receipts from admissions, sales of years as a section 501(c)(3) organization, it should check the
merchandise, performance of services, or furnishing of box on line 13 and shouldn't complete the rest of Part II.
facilities in any activity which isn't an unrelated trade or When the organization prepares Part II for its sixth tax year
business (within the meaning of section 513). See section and subsequent years, it shouldn't check the box on line 13
509(d)(2). Include membership fees to the extent they are and should complete the rest of Part II.
payments to purchase admissions, merchandise, services, or
the use of facilities in a related activity. For example, include
on this line gross receipts from:

Instructions for Schedule A (Form 990) 2022 -7-

- 8 -

Page 8 of 20       Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source                                     13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

      An organization in its first 5 years as a section 501(c)        Line 18.    If the organization didn't check a box on line 13, 
TIP   (3) organization should make the public support                 16a, 16b, 17a, or 17b, it doesn't qualify as a publicly 
      computations on a copy of Schedule A (Form 990)                 supported organization under section 170(b)(1)(A)(iv) or 
that it keeps for itself. An organization should carefully            170(b)(1)(A)(vi) for the 2022 tax year and should check the 
monitor its public support on an ongoing basis to ensure that         box on this line. If the organization doesn't qualify as a public 
it will meet a public support test in the sixth year and              charity under any of the boxes in Part I, lines 1 through 12, it 
succeeding years.                                                     is a private foundation as of the beginning of the 2022 tax 
                                                                      year for filing purposes and shouldn't file Form 990, Form 
Line 14. Round to the nearest hundredth decimal point in              990-EZ, or Schedule A (Form 990) for the 2022 tax year. 
reporting the percentage of public support. For example, if           Instead, the organization should file Form 990-PF and check 
the organization calculates its public support percentage as          Initial return of a former public charity on Form 990-PF, at the 
58.3456%, this percentage would be rounded to 58.35%                  top of page 1.
when reported on line 14.
                                                                          If Form 990 or 990-EZ is for the organization's sixth 
Line 15. For 2022, enter the public support percentage from           TIP tax year as a section 501(c)(3) organization, the 
the 2021 Schedule A (Form 990), Part II, line 14. Round to                organization should figure the public support 
the nearest hundredth decimal point in reporting the                  percentage on its Form 990 or 990-EZ for its first 5 tax years 
percentage of public support.                                         before it checks the box on line 18. If its public support 
Line 16a. If the organization didn't check the box on line 13,        percentage for its first 5 tax years is 33 / % or more, or if it 1 3
and line 14 is 33 / % or more, 1 3 check the box on this line         meets the 10%-facts-and-circumstances test for its first 5 tax 
and don't complete the rest of Part II. The organization              years, it will qualify as a public charity for its sixth tax year. If 
qualifies as a publicly supported organization for 2022 and           the organization qualifies under the 10% test, explain in Part 
2023.                                                                 VI.

Line 16b. If the organization didn't check a box on line 13 or            If the organization doesn't qualify as a publicly 
16a, and line 15 is 33 / % or more, 1 3 check the box on this         TIP supported organization under section 170(b)(1)(A)
line and don't complete the rest of Part II. The                          (vi), it can complete Part III to determine if it qualifies 
organization qualifies as a publicly supported organization for       as a publicly supported organization under section 509(a)(2).
2022.
Line 17a. If the organization didn't check a box on line 13,          Part III. Support Schedule for 
16a, or 16b, and line 14 is 10% or more, and if the 
organization meets the facts-and-circumstances test, check            Organizations Described in Section 
the box on this line and don't complete the rest of Part              509(a)(2)
II. The organization qualifies as a publicly supported 
organization for 2022 and 2023.                                           If an organization checked the box in Part I, for 
  If this box is checked, explain in Part VI how the                  TIP line 10, it should complete Part III and insert the 
organization meets the facts-and-circumstances test in                    appropriate dollar amounts. Don't leave Part III blank 
Regulations section 1.170A-9(f)(3). Include the following             or report only zeros if the organization had any support 
information.                                                          during the period. If the organization checks the box in Part 
• Explain whether the organization maintains a continuous             III, for line 14, it should stop there and not complete the rest 
and bona fide program for solicitation of funds from the              of Part III.
general public, community, membership group involved, 
governmental units, or other public charities.                            If the organization checked the box in Part I, for 
• List all other facts and circumstances, including the               TIP line 10, and also checks the box in Part III, for line 20, 
sources of support, whether the organization has a                        the organization should complete Part II to determine 
governing body that represents the broad interests of the             if it qualifies as a publicly supported organization under 
public, and whether the organization generally provides               section 170(b)(1)(A)(vi). If it does qualify, the organization 
facilities or services directly for the benefit of the general        should instead check the box in Part I, for line 5, 7, or 8, 
public on a continuing basis.                                         whichever applies.
• If the organization is a membership organization, explain 
                                                                      Public Support Test.    For an organization to qualify as a 
whether the solicitation for dues-paying members is 
                                                                      publicly supported organization under section 509(a)(2):
designed to enroll a substantial number of persons from the                          1 3
community, whether dues for individual members have been              •  More than 33 / % of its support normally must come from 
                                                                      gifts, grants, contributions, membership fees, and gross 
fixed at rates designed to make membership available to a 
                                                                      receipts from admissions, sales of merchandise, 
broad cross-section of the interested public, and whether the 
                                                                      performance of services, or furnishing of facilities in an 
activities of the organization will likely appeal to persons 
                                                                      activity which isn't an unrelated trade or business under 
having some broad common interest or purpose.
                                                                      section 513; and
Line 17b. If the organization didn't check a box on line 13,          •  No more than 33 / % of its support normally must come 1 3
16a, 16b, or 17a, and line 15 is 10% or more, and if the              from gross investment income and net unrelated business 
organization meets the facts-and-circumstances test, check            income (less section 511 tax) from businesses acquired by 
the box on this line and don't complete the rest of Part              the organization after June 30, 1975.
II. The organization qualifies as a publicly supported                   Public support is measured using a 5-year computation 
organization for 2022. If this box is checked, explain in Part        period that includes the current and 4 prior tax years 
VI how the organization meets the facts-and-circumstances             (including short years). If the organization's current tax year 
test in Regulations section 1.170A-9(f)(3). Include the same          or any of its 4 prior tax years were short years, explain in Part 
information identified in the instructions for Line 17a, earlier.     VI.

                                                                  -8-                Instructions for Schedule A (Form 990) 2022

- 9 -

Page 9 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

In Part III, if the organization wasn't a section 501(c)(3) than as contributions from the government payor for
organization for the entire 5-year period, report amounts only purposes of the public support test. See Rev. Rul. 83-153,
for the years the organization was a section 501(c)(3) 1983-2 C.B. 48.
organization.
The Coronavirus Aid, Relief, and Economic Security
Line 1. Don't include any “unusual grants.” See Unusual TIP Act (CARES Act) established the Paycheck
grants, later. Include membership fees only to the extent to Protection Program (PPP) to provide loans to small
which the fees are payments to provide support for the businesses as a direct incentive to keep their workers on the
organization rather than to purchase admissions, payroll. The loans are forgiven if all employee retention
merchandise, services, or the use of facilities. To the extent criteria are met and the funds are used for eligible expenses.
that the membership fees are payments to purchase Amounts of PPP loans that are forgiven may be reported on
admissions, merchandise, services, or the use of facilities in line 1 as contributions from a governmental unit in the tax
a related activity, include the membership fees on line 2. See year when the amounts are forgiven or at such other time as
Regulations section 1.509(a)-3(h). To the extent that the provided in Rev. Proc. 2021-48, 2021-49 I.R.B. 835.
membership fees are payments to purchase admissions,
merchandise, services, or the use of facilities in an activity Unusual grants. Unusual grants are generally substantial
that isn't an unrelated business under section 513, report contributions and bequests from disinterested persons and
the membership fees on line 3. To the extent that the are:
membership fees are payments to purchase admissions, 1. Attracted because of the organization's publicly
merchandise, services, or the use of facilities in an activity supported nature,
that is an unrelated business, report the net amount either on 2. Unusual and unexpected because of the amount, and
line 10b or 11, as appropriate. 3. Large enough to endanger the organization's status as
Noncash contributions. Use any reasonable method to normally meeting the 33 / % public support test.1 3
determine the value of noncash contributions reported on
line 1. For a list of other factors to be considered in determining
Don't report any donations of services (such as the value whether a grant is an unusual grant, see Regulations section
of donated advertising space or broadcast air time) or 1.509(a)-3(c)(4).
donations of use of materials, equipment, or facilities, on An unusual grant is excluded even if the organization
line 1 as gifts, grants, or contributions. Donated services and receives or accrues the funds over a period of years.
facilities from a governmental unit are reported on line 5. Don't report gross investment income items as unusual
Loss on uncollectible pledge. If an organization records grants. Instead, include all investment income on line 10a.
a loss on an uncollectible pledge that it reported on a prior See Rev. Rul. 76-440, 1976-2 C.B. 58; Regulations
year's Schedule A (Form 990), it should deduct that loss from section 1.170A-9(f)(6)(ii); and Regulations sections
the contribution amount for the year in which it originally 1.509(a)-3(c)(3) and 1.509(a)-3(c)(4) for details about
counted that contribution as revenue. For example, if in the unusual grants.
prior tax year the organization reported a pledged
contribution with a then-present value of $50,000 in Part III, Include in Part VI a list showing the amount, but not the
line 1, column (e), but learned during the current tax year that grantor, of each unusual grant actually received each year (if
it wouldn't receive any of that pledged contribution, it should the cash accounting method is used) or accrued each year (if
deduct the $50,000 from the amount reported in Part III, the accrual accounting method is used).
line 1, column (d), for the prior tax year. Don't include the names of the grantors because Part
Support from a governmental unit. Include on line 1 ! VI will be made available for public inspection.
support received from a governmental unit. This includes CAUTION
contributions, but not gross receipts from exercising or Unusual grants recordkeeping. An organization that
performing the organization's tax-exempt purpose or received any unusual grants during the 5-year period, should
function, which should be reported on line 2. Contributions also keep for its records a list showing, for each year, the
are sometimes difficult to distinguish from such gross name of the contributor, the date and amount of the grant,
receipts—the label on the agreement isn't controlling. An and a brief description of the grant. If the organization used
amount received from a governmental unit is treated as gross the cash method for the applicable year, show only amounts
receipts from exercising or performing the organization's the organization actually received during that year. If the
tax-exempt purpose or function if the purpose of the payment organization used the accrual method for the applicable year,
is primarily to serve the direct and immediate needs of the show only amounts the organization accrued for that year. An
payor governmental unit. An amount is treated as a example of this list is given below.
contribution if the purpose of the payment is primarily to
provide a direct benefit to the public. For example, if a state Don't file this list with the organization's Form 990 or
government agency pays an organization to operate an ! 990-EZ because it may be made available for public
institute to train agency employees in the principles of CAUTION inspection.
management and administration, the funds received should
be included on line 2 as gross receipts. See Regulations
section 1.509(a)-3(g). Refer to the instructions for Form 990,
Part VIII, lines 1e and 2, for more examples addressing the
distinction between government payments that are
contributions and government payments that are gross
receipts from activities related to the organization's
tax-exempt purpose or function. Medicare and Medicaid
payments are treated as gross receipts from patients rather

Instructions for Schedule A (Form 990) 2022 -9-

- 10 -

Page 10 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 7a. Example—List of amounts received from disqualified persons

Disqualified Person (a) 2018 (b) 2019 (c) 2020 (d) 2021 (e) 2022 (f) Total
David Smith $7,000 $6,000 $2,000 $15,000
Anne Parker $5,000 $7,000 $4,000 $16,000
Total $7,000 $6,000 $5,000 $7,000 $6,000 $31,000

Line 1. Example—List of unusual grants • Furnishing certain hospital services. See section 513(e).
• A trade or business consisting of conducting bingo
Year ▶ 2022 Description games, but only if the conduct of such games is lawful. See
section 513(f).
Name ▶ Mr. Distinguished Donor Undeveloped land • Qualified pole rentals by a mutual or cooperative
telephone or electric company. See section 513(g).
Date of Grant ▶ January 15, • The distribution of certain low-cost articles incidental to the
2022 solicitation of charitable contributions (except to the extent
such gross receipts are properly treated as charitable
Amount of Grant ▶ $600,000 contributions reportable on line 1 rather than as proceeds of
a sale or exchange), and exchange and rental of members
Conservation easements and qualified conservation lists. See section 513(h).
contributions. The organization must report any qualified While the activity of soliciting and receiving qualified
conservation contributions and contributions of conservation sponsorship payments is also excluded from unrelated
easements consistently with how it reports revenue from business (see section 513(i)), the qualified sponsorship
such contributions in its books, records, and financial payments themselves are treated as charitable contributions
statements and in Form 990, Part VIII, Statement of reportable on line 1.
Revenue. Line 4. Enter tax revenue levied for the organization's
Reporting contributions not reported as revenue. If the benefit by a governmental unit and either paid to the
organization reports any contributions on Schedule A (Form organization or expended on its behalf. Report this amount
990), Part III, line 1, that it doesn't report on Form 990, as whether or not the organization includes this amount as
revenue in Part VIII or as assets in Part X, or as revenue or revenue on its financial statements or elsewhere on Form
assets on Form 990-EZ, explain in Part VI the basis for 990 or 990-EZ.
characterizing such transfers as contributions but not as Line 5. Enter the value of services or facilities furnished by a
revenue or assets. For example, if an organization is a governmental unit to the organization without charge. Don't
community foundation that receives and holds a cash include the value of services or facilities generally furnished
transfer for another tax-exempt organization and reports to the public without charge. For example, include the fair
contributions of such property on Schedule A (Form 990), rental value of office space furnished by a governmental unit
Part III, line 1, without reporting it on Form 990, as revenue in to the organization without charge, but only if the
Part VIII or assets in Part X, explain the basis for governmental unit doesn't generally furnish similar office
characterizing the property as contributions but not as space to the public without charge. Report these amounts
revenue or assets. whether or not the organization includes these amounts as
Line 2. Include gross receipts from admissions, revenue on its financial statements or elsewhere on Form
merchandise sold, services performed, or facilities furnished 990 or 990-EZ.
in any activity that is related to the organization's tax-exempt Line 7a. Enter the amounts that are included on lines 1, 2,
purpose (such as charitable, educational, etc.). and 3 that the organization received from disqualified
To the extent that membership fees are payments to persons. See the definition of disqualified person in the
purchase admissions, merchandise, services, or the use of Glossary of the Instructions for Form 990.
facilities in a related activity, include the membership fees on For amounts included on lines 1, 2, and 3 that were
this line 2. See Regulations section 1.509(a)-3(h). received from a disqualified person, the organization should
Line 3. Include gross receipts from activities that aren't an keep for its records a list showing the name of, and total
unrelated trade or business under section 513, such as: amounts received in each year from, each disqualified
• A trade or business in which substantially all work is person. Enter the total of such amounts for each year on
performed by volunteers (such as book fairs and sales of line 7a. See an example of this list above.
gift wrap paper). See section 513(a)(1).
• A trade or business carried on by the organization Don't file this list with the organization's Form 990 or
primarily for the convenience of its members, students, ! 990-EZ because it may be made available for public
patients, officers, or employees. See section 513(a)(2). CAUTION inspection.
• A trade or business that is the selling of merchandise,
Line 7b. For any gross receipts included on lines 2 and 3
substantially all of which the organization received as gifts or
from related activities received from a person or from a
contributions. See section 513(a)(3).
bureau or similar agency of a governmental unit, other than
• “Qualified public entertainment activities” or “qualified
from a disqualified person, that exceed the greater of
convention and trade show activities” of certain
$5,000 or 1% of the amount on line 13 for the applicable
organizations. See section 513(d).
year, enter the excess on line 7b. The organization should

-10- Instructions for Schedule A (Form 990) 2022

- 11 -

Page 11 of 20          Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source                                                       13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 7b. Example—List of amounts received from other than disqualified persons
Year 2022

        (a) Name            (b) Amount received in      (c) 1% of amount on                 (d) Enter the larger of         (e) 2022 excess 
                                    2022                      line 13 in 2022                 column (c) or $5,000          (column (b) minus 
                                                                                                                            column (d)) 
Word Processing, Inc.               $25,000                       $2,000                                $5,000              $20,000 
Enter on Schedule A (Form 990), column (e), line 7b     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000 

keep for its records a list showing, for each year, the name of           investment income computation on line 17 or 18, or check 
the person or government agency, the amount received                      any of the boxes for line 19 or 20.
during the applicable year, the larger of $5,000 or 1% of the                 Example.          An organization receives an exemption letter 
amount on line 13 for the applicable year, and the excess, if             from the IRS that it is exempt from tax under section
any. See an example of this list above.                                   501(c)(3) and qualifies as a public charity under section 
        Don't file this list with the organization's Form 990 or          509(a)(2) effective on its date of incorporation. When the 
                                                                          organization prepares Part III for its first 5 tax years, it should 
!       990-EZ because it may be made available for public 
CAUTION inspection.                                                       check the box on line 14 and shouldn't complete the rest of 
                                                                          Part III. When the organization prepares Part III for its sixth 
Line 10a. Include the gross income from interest, dividends,              tax year and subsequent years, it shouldn't check the box on 
payments received on securities loans (section 512(a)(5)),                line 14 and should complete the rest of Part III.
rents, royalties, and income from similar sources. Don't                              An organization in its first 5 years as a section 501(c)
include on this line payments that result from activities of the            TIP       (3) organization should make the public support and 
organization that further its exempt purpose. Instead, report                         investment income computations on a copy of 
these amounts on line 2.                                                  Schedule A (Form 990) that it keeps for itself. An 
Line 10b. Enter the excess of the organization's unrelated                organization should carefully monitor its public support on an 
business taxable income (UBTI) (as defined in section                     ongoing basis to ensure that it will meet the public support 
512) from trades or businesses that it acquired or                        tests in the sixth year and succeeding years.
commenced after June 30, 1975, over the amount of tax 
imposed on this income under section 511. Include                         Line 15.      Round to the nearest hundredth decimal point in 
membership fees to the extent they are payments to                        reporting the percentage of public support. For example, if 
purchase admissions, merchandise, services, or the use of                 the organization calculates its public support percentage as 
facilities in an unrelated business activity that is a trade or           58.3456%, this percentage would be rounded to 58.35% 
business that was acquired or commenced after June 30,                    when reported on line 15.
1975.                                                                     Line 16.      For 2022, enter the public support percentage from 
When calculating UBTI for this purpose, an exempt                         the 2021 Schedule A (Form 990), Part III, line 15. Round to 
organization with more than one unrelated trade or business               the nearest hundredth decimal point in reporting the 
may use either its UBTI calculated under section 512(a)(6) or             percentage of public support.
its UBTI calculated in the aggregate.                                     Line 17.      Round to the nearest whole percentage.
Line 11.  Enter the organization's net income from                        Line 18.      For 2022, enter the investment income percentage 
conducting unrelated business activities not included on                  from the 2021 Schedule A (Form 990), Part III, line 17. Round 
line 10b, whether or not the activities are regularly conducted           to the nearest whole percentage.
as a trade or business. Don't include net income from 
conducting trades or businesses acquired or commenced by                  Line 19a.       If the organization didn't check the box on line 14, 
the organization prior to July 1, 1975. See sections 512, 513,            line 15 is more than 33 / %, and line 17 isn't more than 1 3
and 514, and the applicable regulations. Include membership               33 / %, 1 3 check the box on this line and don't complete 
fees to the extent they are payments to purchase                          the rest of this schedule. The organization qualifies as a 
admissions, merchandise, services, or the use of facilities in            publicly supported organization for 2022 and 2023.
an activity that is an unrelated business not included on                 Line 19b.       If the organization didn't check the box on line 14 
line 10b.                                                                 or 19a, line 16 is more than 33 / %, and line 18 isn't more 1 3
When calculating unrelated business taxable income                        than 33 / %, 1 3    check the box on this line and don't 
(UBTI) for this purpose, an exempt organization with more                 complete the rest of this schedule. The organization 
than one unrelated trade or business may use either its UBTI              qualifies as a publicly supported organization for 2022.
calculated under section 512(a)(6) or its UBTI calculated in              Line 20.      If the organization didn't check the box on line 14, 
the aggregate. If a net loss results, enter “0” on this line.             19a, or 19b, it doesn't qualify as a publicly supported 
Line 12.  Include all support as defined in section 509(d) that           organization under section 509(a)(2) for the 2022 tax year 
isn't included elsewhere in Part III. Explain in Part VI the              and should check the box on this line. If the organization 
nature and source of each amount reported. Don't include                  doesn't qualify as a public charity under any of the boxes on 
gain or loss from the sale of capital assets.                             Schedule A (Form 990), Part I, lines 1 through 12, it is a 
                                                                          private foundation for filing purposes as of the beginning of 
Line 14.  An organization that checks this box should stop 
                                                                          the tax year and shouldn't file Form 990, Form 990-EZ, or 
here and shouldn't complete the rest of Part III. It shouldn't 
                                                                          Schedule A (Form 990) for the 2022 tax year. Instead, the 
make a public support computation on line 15 or 16 or an 

Instructions for Schedule A (Form 990) 2022                         -11-

- 12 -

Page 12 of 20         Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source                                   13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

organization should file Form 990-PF, and check Initial return          Line 3a. A supporting organization may support an 
of a former public charity on Form 990-PF, at the top of                organization described in section 501(c)(4), (5), or (6), if the 
page 1.                                                                 supported organization satisfies the public support tests 
        If Form 990 or 990-EZ is for the organization's sixth           applicable to a section 509(a)(2) organization. See 
TIP     tax year as a section 501(c)(3) organization and it             Regulations section 1.509(a)-4(k) and the instructions for 
        checked the box on line 20, it should figure the public         Part III. If the organization supports a section
support percentage and the investment income percentage                 501(c)(4), (5), or (6) organization, check “Yes” for line 3a.
on its Form 990 for its first 5 tax years. If its public support        Line 3b. If the organization confirmed that the supported 
percentage for its first 5 tax years is more than 33 / % and 1 3        organization qualified under section 501(c)(4), (5), or (6) and 
the investment income percentage for its first 5 tax years isn't        met the section 509(a)(2) public support test for its most 
more than 33 / %, it will qualify as a public charity for its sixth 1 3 recent tax year, check “Yes” and describe in Part VI how the 
tax year. If the organization qualifies in this manner, explain         organization made this determination. For example, the 
in Part VI.                                                             organization may ask its section 501(c)(4), (5), or (6) 
                                                                        supported organization to furnish a copy of its IRS 
        If the organization doesn't qualify as a publicly               determination letter and to complete annually a pro forma 
TIP     supported organization under section 509(a)(2), it              Schedule A (Form 990), Part III, and keep the letter and 
        can complete Part II to determine if the organization           support calculation in the supporting organization’s files.
qualifies as a publicly supported organization under section 
170(b)(1)(A)(vi).                                                            If the supporting organization doesn't annually confirm that 
                                                                        its supported organization satisfies the section 509(a)(2) 
                                                                        public support test, it must explain in Part VI how it knows 
Part IV. Supporting Organizations                                       that the supported organization would’ve been described in 
Complete the sections of Part IV that correspond below with             section 509(a)(2) if it were described in section 501(c)(3) 
the type of supporting organization indicated on line 12a,              during the tax year.
12b, 12c, or 12d of Part I.
•  Type I: Sections A and B;                                            Line 3c. Support given to a supported section 501(c)(4), (5), 
•  Type II: Sections A and C;                                           or (6) organization must be used solely for charitable 
•  Type III Functionally Integrated: Sections A, D, and E; and          purposes. If the supporting organization has put into place 
•  Type III Non-Functionally Integrated: Sections A and D,              measures to ensure that such support is used solely for 
and Part V.                                                             charitable purposes, check “Yes” and describe those 
                                                                        measures in Part VI. If not, check “No” and describe in Part VI 
Section A. All Supporting Organizations                                 how the supporting organization ensured during the tax year 
                                                                        that its assets were used solely for charitable purposes.
Line 1. The organization's articles of incorporation or trust 
instrument must designate the publicly supported                        Line 4a. A supporting organization can't qualify for Type III 
organization(s) on whose behalf the supporting organization             status in the tax year if any supported organization wasn't 
is operated. The articles of a Type I or Type II supporting             organized in the United States.
organization may designate its supported organization(s)                Lines 4b and 4c. A supporting organization must exercise 
either by class or purpose or by name. The articles of a Type           control and discretion over funds granted to an organization 
III supporting organization must designate the supported                that isn't exempt under section 501(c)(3). See Rev. Rul. 
organization(s) by name, unless a historic and continuing               68-489, 1968-2 C.B. 210. Also, a domestic charity must 
relationship exists between the organizations.                          generally exercise control and discretion over funds granted 
   Check “Yes” only if the organization supports no                     to a foreign organization. See Rev. Rul. 63-252, 1963-2 C.B. 
organization other than those listed by name in its governing           101, and Rev. Rul. 66-79, 1966-1 C.B. 48.
instrument. If the organization supports any organization not                Explain in Part VI how the organization retained such 
specifically listed, check “No” and describe in Part VI how the         control and discretion despite being controlled or supervised 
supported organizations are designated. If designated by                by or in connection with such foreign supported 
class or purpose, describe the class or purpose. If the                 organization(s). Also, explain what controls the organization 
organization and its supported organization(s) have a historic          used to ensure that all support to the foreign supported 
and continuing relationship, explain that relationship. If              organization(s) was used exclusively for charitable, 
support of one or more organizations is subject to certain              educational, etc., purposes described in section 170(c)(2)(B) 
future contingencies, explain those contingencies, and                  if the foreign supported organization doesn't have an IRS 
explain what organizations will be supported or benefited if            determination under sections 501(c)(3) and 509(a)(1) or (2).
those contingencies occur.
                                                                        Line 5.  Supporting organizations may add, substitute, or 
Line 2. If the organization supported any domestic or foreign           remove supported organizations only in certain limited 
organization (other than an organization described in section           situations. See Regulations section 1.509(a)-4(d). Generally, 
501(c)(4), (5), or (6)) that didn't have an IRS determination of        a Type I or Type II supporting organization may add or 
status under section 509(a)(1) or (2), check “Yes” and                  substitute particular supported organizations within the class 
explain in Part VI how the organization determined that the             or classes designated in its articles, but may not add or 
supported organization was described in section 509(a)(1) or            substitute supported organizations outside of the designated 
(2) and why the supported organization doesn't have such an             class(es). A Type III supporting organization, which must 
IRS determination (for example, because it has applied for              specify its supported organizations by name, may only 
but not yet received such a determination, or it isn't required         substitute supported organizations if such substitution is 
to obtain recognition of its public charity status because it is a      conditioned upon the occurrence of an event that is beyond 
church, a state university, or described in section 4948(b)).           the control of the supporting organization (such as a 

                                                                        -12-            Instructions for Schedule A (Form 990) 2022

- 13 -

Page 13 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

supported organization’s lapse into private foundation Type I or Type III supporting organization accepts a
status). contribution after August 16, 2006, from a person who
If the organization has added, substituted, or removed any controls the governing body of a supported organization (or
supported organization during the tax year, check “Yes” and from a family member of such person, or from a 35%
provide detail in Part VI, including (i) the names and EINs of controlled entity of such person), then the supporting
the organizations added, substituted, or removed; (ii) the organization loses its status as a supporting organization.
reasons for each addition, substitution, or removal; (iii) the Such supporting organization must file Form 990-PF unless it
authority under the organization’s organizing document for qualifies as a public charity under section 509(a)(1) or (2).
each addition, substitution, or removal; and (iv) an
explanation of how the action was accomplished (such as by Section B. Type I Supporting Organizations
amendment to the organizing document substituting a new Line 1. A Type I supporting organization must be operated,
supported organization). supervised, or controlled by one or more of its supported
Line 6. A supporting organization must engage solely in organizations (the “controlling supported organizations”).
activities that support or benefit its supported organization(s). This means that the controlling supported organizations must
In addition to making grants and providing services and have a substantial degree of direction over the policies,
facilities directly to its supported organization(s), a supporting programs, and activities of the supporting organization, and
organization may also generally make grants or provide the supporting organization in turn must be responsive to the
services or facilities to (1) individual members of the needs or demands of the controlling supported
charitable class benefited by its supported organization(s) or organizations, and must constitute an integral part of, or
(2) other supporting organizations that also support or benefit maintain a significant involvement in, the operations of the
its supported organization(s). See Regulations section controlling supported organizations. This relationship is most
1.509(a)-4(e). If the organization made any grants or clearly established when one or more supported
provided any benefits to any other organization or individual, organizations (through their officers, directors, trustees, or
check “Yes” and provide detail in Part VI. membership) have the unconditional power to remove and
replace at least a majority of the supporting organization’s
Lines 7 and 8. Under section 4958(c)(3), any grant, loan, directors or trustees at any time. The relationship is also
compensation, or other similar payment provided by a commonly established when one or more supported
supporting organization to a substantial contributor (defined organizations have the power to appoint or elect at least a
in section 4958(c)(3)(C)), to a family member (defined in majority of the supporting organization’s directors or trustees
section 4958(f)(4)), and to a 35% controlled entity of such at regular intervals. However, there may be other ways to
persons, is considered a per se excess benefit in its entirety, establish this relationship. If the organization relies on other
regardless of the fairness or reasonableness of the payment, ways to establish the relationship, check “No” and describe in
and is subject to tax under section 4958(a). The same is true Part VI how the necessary relationship is established.
of any loan by a supporting organization to a disqualified
person under section 4958 (other than loans to certain Line 2. The supporting organization may benefit
exempt organizations). If the organization made any such organizations that don't participate in the control relationship
payment or loan during the tax year, check “Yes” and report described on line 1, but only if such activity carries out the
the transaction on Schedule L (Form 990), Transactions With purposes of the controlling supported organizations.
Interested Persons, Part I. For more information on excess
benefit transactions generally, see the Instructions for Section C. Type II Supporting Organizations
Schedule L (Form 990). Line 1. A Type II supporting organization must be
Line 9. A supporting organization may not be controlled by supervised or controlled in connection with its supported
disqualified persons, as defined in section 4946. Section organization(s). This means that there must be common
509(a)(1) or (2) organizations, and foundation managers who supervision or control by the persons supervising or
are disqualified persons only as a result of being foundation controlling both the supporting organization and the
managers, aren't treated as disqualified persons for this supported organization(s) to ensure that the supporting
purpose. Impermissible control may be direct or indirect. If a organization will be responsive to the needs and
disqualified person holds any of the interests described on requirements of the supported organization(s). This
line 9b or 9c, or derives personal benefit from any such relationship is most clearly established when the same
assets, provide detail in Part VI. persons serve as all or a majority of the directors or trustees
of all of the organizations involved. However, there may be
Line 10. Under section 4943(f), a Type II supporting other ways to establish this relationship. If the organization
organization that accepts a contribution from a person who relies on other than overlap of at least a majority of directors
controls the governing body of a supported organization (or or trustees of all organizations involved, check “No” and
from a family member of such person, or from a 35% describe in Part VI how the necessary relationship is
controlled entity of such person) is subject to the excess established.
business holdings tax under section 4943. All Type III
non-functionally integrated supporting organizations are also Section D. All Type III Supporting Organizations
generally subject to the tax. For more information about
excess business holdings, see the Instructions for Form Line 1. A Type III supporting organization must supply
4720, Return of Certain Excise Taxes Under Chapters 41 annually a written notice, addressed to a principal officer of
and 42 of the Internal Revenue Code. each supported organization, which includes the following.
1. A description of the type and amount of all support the
Line 11. Section 509(f)(2) prohibits Type I and Type III supporting organization provided to the supported
supporting organizations from accepting a gift or contribution organization during the supporting organization’s tax year
from certain persons associated with a supported preceding the tax year in which the notice is provided.
organization of such supporting organization. Specifically, if a

Instructions for Schedule A (Form 990) 2022 -13-

- 14 -

Page 14 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2. A copy of the supporting organization’s most recently supported organizations (see the instructions for Line 3,
filed Form 990 (the supporting organization may redact the later), or (c) support one or more governmental entities (see
names and addresses of contributors). Support of governmental entity, later). If the organization
3. A copy of the supporting organization’s updated can't satisfy any of these tests, it may still qualify as a Type III
governing documents (including articles of organization, non-functionally integrated supporting organization (see Part
bylaws, and any amendments), to the extent not previously V, later).
provided. Support of governmental entity. A Type III supporting
organization meets the integral part test for a functionally
See Regulations section 1.509(a)-4(i)(2). The notice must be integrated supporting organization if it (1) supports at least
submitted by the last day of the fifth month of the supporting one supported organization that is a governmental entity to
organization's tax year being reported (May 31 for which the supporting organization is responsive (as
calendar-year filers). An organization that doesn't timely discussed in the instructions for Section D, Lines 2 and 3,
submit the required information in the required manner earlier), and (2) engages in activities for or on behalf of such
doesn't qualify as a Type III supporting organization for the governmental supported organization that performs the
tax year in which it fails to timely submit. functions or carries out the purposes of such governmental
State whether during the tax year being reported the supported organization and that, but for the involvement of
organization provided a timely notice with the required the supporting organization, would normally be engaged in
information in the required manner. by the governmental supported organization itself. See
Notice 2014-4. A Type III supporting organization that claims
Lines 2 and 3. A Type III supporting organization must be
to meet the integral part test for a functionally integrated
responsive to the needs or demands of a supported
supporting organization by supporting a governmental entity
organization. An organization meets this responsiveness test
must describe in Part VI how it met these requirements for
with regard to a particular supported organization if:
the tax year.
1. The supported organization has an adequate
relationship with the supporting organization because: Line 2. Activities Test. To meet the activities test of a Type
III functionally integrated supporting organization,
a. The supported organization regularly appoints or substantially all of the supporting organization’s activities
elects (whether or not during the tax year) at least one must (1) directly further the exempt purposes of the
officer, director, or trustee of the supporting organization; supported organization(s) to which the supporting
b. At least one member of the governing body of the organization was responsive, and (2) be activities that such
supported organization also serves as an officer, director, supported organization(s) would normally be engaged in but
or trustee of the supporting organization; or for the supporting organization’s involvement.
c. The officers, directors, or trustees of the supporting
Direct furtherance. Substantially all of the supporting
organization and of the supported organization maintain
organization’s activities must be “direct furtherance”
a close and continuous working relationship; and
activities. Direct furtherance activities are conducted by the
2. Because of this relationship, the supported supporting organization itself, rather than by a supported
organization has a significant voice in the supporting organization. Holding title to exempt-use assets and
organization’s investment policies, timing of grants, manner managing them are direct furtherance activities. Fundraising,
of making grants, selection of grant recipients, and other use investing and managing non-exempt-use assets,
of income or assets (the “significant voice” test). grant-making to organizations, and grant-making to
In the case of a supporting organization that supported a individuals (unless it meets the requirements of Regulations
supported organization before November 20, 1970, section 1.509(a)-4(i)(4)(ii)(D)) aren't direct furtherance
additional facts and circumstances such as a historic and activities.
continuing relationship between the organizations may also But for. In addition, the direct furtherance activities must
be taken into account in considering the responsiveness test. be activities in which, but for the supporting organization’s
involvement, the supported organization would normally be
If the organization had an adequate relationship with at
involved.
least one supported organization only by means of a “close
and continuous working relationship” or a “historic and Examples include holding and managing facilities used by
continuing relationship,” then in Part VI explain the a church for its religious purposes, operating a food pantry
relationship and how it was maintained. Also, all Type III for a group of churches that normally would operate food
supporting organizations that claim to meet the significant pantries themselves, and maintaining local parks for a
voice test must describe in Part VI the voice or role of the community foundation that otherwise would maintain those
supported organization(s) in directing the supporting parks. See Regulations section 1.509(a)-4(i)(4)(v) for more
organization’s use of its income or assets. detailed examples.
Line 3. Parent of Supported Organizations. To qualify as
Section E. Type III Functionally Integrated the parent of all the supported organizations, a supporting
Supporting Organizations organization must (1) have the power to appoint or elect,
Line 1. A Type III supporting organization must constitute an directly or indirectly, a majority of the officers, directors, or
integral part of one or more of its supported organizations by trustees of every supported organization; and (2) exercise a
maintaining significant involvement in its operations and substantial degree of direction over the policies, programs,
providing support on which the supported organization is and activities of every supported organization.
dependent. To satisfy this requirement as a Type III
functionally integrated supporting organization, an
organization may (a) pass an Activities Test (see the
instructions for Line 2, later), (b) be the parent of its

-14- Instructions for Schedule A (Form 990) 2022

- 15 -

Page 15 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

as recoveries of prior-year distributions). Net short-term
Part V. Type III Non-Functionally
capital loss can't be carried back or forward to other tax
Integrated 509(a)(3) Supporting years. Amounts treated as long-term capital gains include
capital gain dividends from a regulated investment company
Organizations and net section 1231 gains (but net section 1231 losses are
A Type III supporting organization (other than a Type III treated as ordinary losses and thus taken into account). If the
functionally integrated supporting organization) must fair market value of property distributed for charitable
generally satisfy a distribution requirement described in purposes exceeds adjusted basis, the excess isn't deemed
Regulations section 1.509(a)-4(i)(5)(ii) along with an includible in income.
attentiveness requirement described in Regulations section
1.509(a)-4(i)(5)(iii) to meet the integral part test for a Type III Adjusted basis. The adjusted basis for purposes of
relationship. To satisfy the distribution requirement, the determining gain from the sale or other disposition of
organization must make a minimum amount (distributable property is the greater of:
amount) of distributions to or for the use of one or more 1. The fair market value of such property on August 17,
supported organizations. Carryovers of excess distributions 2006, plus or minus all adjustments thereafter and before the
from certain prior years may be used for this purpose. date of disposition under sections 1011–1023, if the property
was held continuously from August 17, 2006, to the date of
Sections A through E of Part V show whether the disposition.
organization has satisfied its distribution and attentiveness 2. The adjusted basis under sections 1011–1023, without
requirements for its tax year. Sections A and B determine the regard to section 362(c). If assets acquired before August 17,
organization’s adjusted net income and minimum asset 2006, were subject to depreciation or depletion, to determine
amount. These amounts are used in determining the the adjustments to basis between the date of acquisition and
distributable amount in Section C. Section D determines the August 17, 2006, straight-line depreciation or cost depletion
organization’s distributions that count toward the distributable must be taken into account. Any other adjustments that
amount and determines whether the attentiveness would’ve been made during such period (such as a change in
requirement is met. Section E determines whether the useful life based upon additional data or a change in facts)
distributable amount is satisfied through current distributions must also be taken into account.
and prior-year carryovers, and determines carryovers to
future years. The adjusted basis for purposes of determining loss is only
the amount described in item 2 above.
A trust is excepted from the general distribution and
attentiveness requirements (and need not complete Sections Line 2. Recoveries of prior-year distributions include the
A through E) if on November 20, 1970, it met and continues following.
to meet the requirements set forth in Regulations section • Repayments received of amounts which were taken into
1.509(a)-4(i)(9). A trust that claims this status by checking account as a distribution counting toward the distribution
the box on line 1 at the beginning of Part V must explain in requirement in a prior tax year.
Part VI how it meets each of the requirements. A trust that • Proceeds from the sale or disposition of property to the
has obtained a ruling from the IRS on this issue must so extent that acquisition of such property was taken into
indicate in Part VI. account as a distribution counting toward the distribution
requirement in a prior tax year.
Section A. Adjusted Net Income • An amount set aside and taken into account as a
The principles of section 4942(f) and Regulations section distribution counting toward the distribution requirement in a
53.4942(a)-2(d) apply in determining adjusted net income. prior tax year to the extent it is determined that such amount
See Regulations section 1.509(a)-4(i)(5)(ii)(B). isn't necessary for the purposes for which it was set aside.
Prior and current year columns. The organization’s Line 3. Report all other gross income. Gross income
adjusted net income for the prior tax year is used in includes all amounts derived from, or in connection with,
determining the organization’s distributable amount for the property held by the organization (except as specified
current tax year. The form also allows for reporting the otherwise in the instructions for Line 1). Include income from
organization’s adjusted net income for the current tax year for any related or unrelated trade or business. Include income
use in next year’s calculations; this reporting is optional but from tax-exempt bonds. Don't include the following.
may be helpful if the organization anticipates being required • Gifts, grants, or contributions received.
to complete Part V next year. • Long-term capital gains or losses or net short-term capital
losses.
Definition. Adjusted net income is gross income for the tax • Income received from an estate, unless the estate is
year less deductions allowable to a corporation subject to tax considered terminated due to a prolonged period of
under section 11, with certain modifications discussed in the administration.
line instructions later. In computing gross income and • Distributions from a trust created and funded by another
deductions, the principles of the income tax provisions of the person.
Code apply (except to the extent inconsistent with section • Certain amounts received by an organization in the
4942 or the underlying regulations), but exclusions, redemption of stock in a corporate disqualified person in
deductions, and credits aren't allowed unless expressly order to avoid excess business holdings, which are treated
provided for under section 4942 or the underlying as not essentially equivalent to a dividend under section
regulations. See Regulations section 53.4942(a)-2(d)(1). 302(b)(1) (and thus as amounts received in exchange for the
Line 1. Report the organization’s net short-term capital gain, stock, giving rise to long-term capital gain or loss) if the
if any. Long-term capital gains and losses from the sale or conditions of Regulations section 53.4942(a)-2(d)(2)(iv) are
disposition of property aren't taken into account in met.
determining adjusted net income (unless reportable on line 2

Instructions for Schedule A (Form 990) 2022 -15-

- 16 -

Page 16 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 5. The deduction for depreciation under section 167 is for charitable purposes, a reasonable allocation must be
allowed, but only on the basis of the straight-line method. made between charitable and noncharitable use.
The deduction for depletion under section 611 is allowed, but Excluded property. Certain assets (in addition to
without regard to section 613 (percentage depletion). exempt-use assets) are excluded entirely from the
Lines 6 and 7. No deduction is allowed except ordinary and computation of the minimum asset amount. These include
necessary expenses paid or incurred for the production or charitable pledges and interests in an estate or trust (created
collection of gross income, or for the management, and funded by another person) prior to distribution to the
conservation, or maintenance of property held for the supporting organization.
production of income. Such expenses may include operating Line 1a. Report on line 1a the average monthly fair market
expenses such as compensation of officers and employees, value of securities (such as common and preferred stock,
interest, rent, and taxes. Where only a portion of property bonds, and mutual fund shares) for which market quotations
produces income (or is held for the production of income) are readily available. A supporting organization may use any
and the remainder is used for charitable purposes, the reasonable method to make this determination if consistently
expenses must be apportioned between exempt and used. For example, a value for a particular month might be
non-exempt use on a reasonable basis. determined by the closing price on the first or last trading day
Don't deduct the following. of the month or an average of the closing prices on the first
• Net losses from a related business or other charitable and last trading days of the month. Market quotations are
activity that produces gross income (no deduction in excess considered readily available if a security is any of the
of the income from such activity). following.
• Charitable contributions under section 170 or 642. • Listed on the New York or American Stock Exchange or
• Net operating loss carrybacks and carryovers under any city or regional exchange in which quotations appear on
section 172. a daily basis, including foreign securities listed on a
• Dividends under section 241 and the sections following it recognized foreign national or regional exchange;
(the dividends-received deductions for corporations). • Regularly traded in the national or regional
• Net capital losses (short-term or long-term). over-the-counter market for which published quotations are
Expenses and interest relating to tax-exempt income under available; or
section 265 are deductible. • Locally traded, for which quotations can be readily
obtained from established brokerage firms.
Section B. Minimum Asset Amount If securities are held in trust for, or on behalf of, a supporting
The rules for determining the supporting organization’s organization by a bank or other financial institution that
minimum asset amount are set forth in Regulations sections values those securities periodically using a computer pricing
1.509(a)-4(i)(5)(ii)(C) and 1.509(a)-4(i)(8), using valuation system, the organization may use that system to determine
methods described in Regulations section 53.4942(a)-2(c). the value of the securities. The system must be acceptable to
the IRS for federal estate tax purposes.
Prior and current year columns. The organization’s
minimum asset amount for the prior tax year is used in Line 1b. Figure cash balances on a monthly basis by
determining the organization’s distributable amount for the averaging the amount of cash on hand on the first and last
current tax year. The form also allows for reporting the days of each month. Include all cash balances and amounts,
organization’s minimum asset amount for the current tax year even if they may be used for charitable purposes (see the
for use in next year’s calculations; this reporting is optional instructions for Line 4, later) or set aside and taken as a
but may be helpful if the organization anticipates being distribution (see the instructions for Section D, Line 5, later).
required to complete Part V next year. Line 1c. The fair market value of assets other than securities
Definition. In figuring the minimum asset amount, include for which market quotations are readily available is
only assets of the supporting organization that aren't used or determined annually except as described later. The valuation
held for use by the supporting organization (or by a may be made by supporting organization employees or by
supported organization, if the supporting organization any other person even if that person is a disqualified person.
provides the asset free of charge or at nominal rent) to carry If the IRS accepts the valuation, it is valid only for the tax year
out the exempt purposes of the supported organization(s). for which it is made. A new valuation is required for the next
Assets held for the production of income or for investment tax year.
aren't considered to be used directly for charitable functions Valuation date. An asset required to be valued annually
even though the income from the assets is used for may be valued as of any day in the supporting organization's
charitable functions. It is a factual question whether an asset tax year, provided the organization values the asset as of that
is held for the production of income or for investment rather date in all tax years. However, a valuation of real estate
than used or held for use directly by the supporting determined on a 5-year basis by a certified, independent
organization or a supported organization for charitable appraisal (discussed later) may be made as of any day in the
purposes. For example, an office building used to provide first tax year of the organization to which the valuation
offices for employees engaged in managing endowment applies.
funds for the supporting organization or supported
organization isn't considered an asset used for charitable Proration of value of assets held for part of year or in a
purposes. short tax year. The value of an asset held less than a full
tax year is prorated by multiplying the value of the asset by a
Dual-use property. When property is used for both fraction, of which the numerator is the number of days the
charitable and other purposes, the property is considered organization held the asset during its tax year, and the
used entirely for charitable purposes if 95% or more of its denominator is 365 (366 if the tax year includes February
total use is for that purpose. If less than 95% of its total use is 29). If the supporting organization has a short tax year, the
value of all assets is accordingly prorated.

-16- Instructions for Schedule A (Form 990) 2022

- 17 -

Page 17 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

5-year valuation for real estate. A written, certified, and held for a portion of the year or in a short tax year). For
independent appraisal of the fair market value of any real details on acquisition indebtedness, see section 514(c)(1).
estate, including any improvements, may be determined on a Line 4. Supporting organizations may exclude from the
5-year basis by a qualified person. The qualified person may minimum asset amount the reasonable cash balances
not be a disqualified person with respect to the supporting necessary to cover current administrative expenses and
organization or an employee of the supporting organization. other normal and current disbursements directly connected
Commonly accepted valuation methods must be used in with the charitable, educational, or other similar activities.
making the real estate appraisal. A valuation based on The amount of cash that may be excluded is generally 1.5%
acceptable methods of valuing property for federal estate tax of the fair market value of all assets (minus any acquisition
purposes will be considered acceptable. indebtedness). However, if under the facts and
The real estate appraisal must include a closing statement circumstances an amount larger than the deemed amount is
that, in the appraiser's opinion, the appraised assets were necessary to pay expenses and disbursements, then the
valued according to valuation principles regularly employed organization may enter the larger amount instead (prorated in
in making appraisals of such property, using all reasonable the case of a short tax year). If the organization uses a larger
valuation methods. The supporting organization must keep a amount, explain why in Part VI.
copy of the independent appraisal for its records. If a Line 7. Enter the amount of recoveries (if any) reportable on
valuation is reasonable, the organization may use it for the Section A, line 2.
tax year for which the valuation is made and for each of the 4
following tax years. Section C. Distributable Amount
Any valuation of real estate by a certified independent The organization’s distributable amount for the current tax
appraisal may be replaced during the 5-year period by a year is ordinarily the greater of:
subsequent 5-year certified independent appraisal or by an 1. 85% of its adjusted net income for the prior tax year or
annual valuation, as described earlier. The most recent
2. Its minimum asset amount for the prior tax year,
valuation should be used to figure the organization's
minimum asset amount. less income taxes imposed on the organization during the
If the valuation is made according to the above rules, the prior tax year. See Regulations section 1.509(a)-4(i)(5)(ii)(B).
IRS will continue to accept it during the 5-year period for First tax year. The distributable amount for the first tax year
which it applies even if the actual fair market value of the real that an organization is treated as a non-functionally
estate changes during the period. integrated Type III supporting organization is zero rather than
Line 1e. If the fair market value of any securities, real estate the amount as ordinarily determined. Such an organization
holdings, or other assets reported on lines 1a and 1c reflects should check the box on line 7. For purposes of determining
a blockage discount, marketability discount, or other whether the organization has an excess of distributions in its
reduction from full fair market value because of the size of the tax year that can be carried over to future years, the
asset holding or any other factor, enter on line 1e the distributable amount as ordinarily determined applies to
aggregate amount of the discounts claimed. Provide an every non-functionally integrated Type III supporting
explanation in Part VI that includes the following information organization (including an organization that checked the box
for each asset or group of assets involved. on line 7 for the current year). The distributable amount as
ordinarily determined is reported in Sections C and E.
1. A description of the asset or asset group (for example,
20,000 shares of XYZ, Inc., common stock); Emergency temporary reduction. In cases of disaster or
2. For securities, the percentage of the total issued and emergency, the IRS may provide for a temporary reduction in
outstanding securities of the same class that is represented the distributable amount by publication in the Internal
by the organization's holding; Revenue Bulletin. In these cases, the reduced amount
should be reported on line 6 and the reduction noted in Part
3. The fair market value of the asset or asset group VI.
before any claimed blockage discount or other reduction;
4. The amount of the discount claimed; and Section D. Distributions
5. An explanation of the reason for the discount. Section D sets forth the supporting organization’s
distributions that count toward its distribution requirement,
In the case of securities, there are certain limitations on and determines whether the attentiveness requirement is
the size of the reduction in value that can be claimed. The met. The amount of a distribution made to a supported
organization may reduce the fair market value of securities organization is the amount of cash or fair market value of
only to the extent that it can establish that the securities could property on the date of distribution. The organization must
only be liquidated in a reasonable period of time at a price use the cash method of accounting for this purpose. See
less than the fair market value because: Regulations section 1.509(a)-4(i)(6).
• The securities are such a large block that liquidation would
depress the market, Line 1. Report amounts paid to supported organizations to
• The securities are in a closely held corporation, or accomplish their exempt purposes. Distributions furthering
• The sale would result in a forced or distress sale. the “exempt” purposes of supported organizations not
Any reduction in value of securities may not exceed 10% of described in section 501(c)(3) refer solely to distributions for
the fair market value (determined without regard to any section 501(c)(3) purposes.
reduction in value). Line 2. Report amounts paid to perform any activity that
Line 2. Enter the total acquisition indebtedness that applies directly furthers exempt purposes of supported organizations
to assets included on line 1 (prorated in the case of assets and that would otherwise normally be engaged in by the
supported organizations, but only to the extent that expenses

Instructions for Schedule A (Form 990) 2022 -17-

- 18 -

Page 18 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

from the activity exceed income from the activity. See the 1. The supporting organization distributes to the
Schedule A (Form 990), Part IV, Section E, Line 2, supported organization at least 10% of the supported
instructions on “direct furtherance” activities. organization’s total support in its tax year ending before the
beginning of the supporting organization’s tax year. For
Line 3. Report reasonable and necessary administrative
example, if the supporting organization and the supported
expenses paid to accomplish exempt purposes of supported
organization both use a calendar year, and the supported
organizations. Don't include expenses incurred in the
organization has total support of $X in a year, then the
production of investment income.
supporting organization’s support in the following year must
Line 4. Report amounts paid to acquire exempt-use assets. be at least 10% of $X. Where the supporting organization
Such assets must be used (or held for use) to carry out the supports a particular department or school of a university,
exempt purposes of the supported organizations. The assets hospital, or church, the department’s or school’s total support
may be used or held by either the supporting organization or is considered instead.
one or more supported organizations; if the latter, the 2. The amount of support received from the supporting
supporting organization must make the asset available to the organization is necessary to avoid the interruption of a
supported organization(s) free of charge or for nominal rent. particular function or activity of the supported organization.
See Regulations section 53.4942(a)-2(c)(3) for further
discussion of exempt-use assets. 3. The amount of support received from the supporting
organization is a sufficient part of the supported
Line 5. Report qualified amounts set aside for a specific organization’s total support to ensure attentiveness, based
project that accomplishes the exempt purposes of a on all pertinent facts, including the number of supported
supported organization to which the supporting organization organizations, the length and nature of the relationship
is responsive. A qualified set-aside counts toward the between the supporting organization and supported
distribution requirement in the tax year set aside but not organization, and the purpose to which the funds are put. The
again when paid. attentiveness of a supported organization is normally
Approval required. For each set-aside, a supporting influenced by the amounts received from the supporting
organization must obtain the written approval of both the organization, but evidence of actual attentiveness to the
pertinent supported organization(s) and the IRS. The operations (including investments) of the supporting
supporting organization must apply to the IRS for approval organization is of almost equal importance. Where the
(using Form 8940) before the end of its tax year in which the supporting organization supports a particular department or
amount is set aside. Explain in Part VI whether the school of a university, hospital, or church, the department’s
organization has requested and obtained the necessary or school’s total support is considered instead of the
approvals for the set-aside. See Regulations section supported organization’s total support.
1.509(a)-4(i)(6)(v) for more information. Amounts received from a supporting organization that are
Line 6. Report any other distributions not described above held in a donor-advised fund of the supported organization
that the organization claims are for the use of its supported are disregarded in determining attentiveness.
organizations, and describe such distributions in detail in Part See the examples in Regulations section 1.509(a)-4(i)(5)
VI. (iii)(D).
Lines 8–10. Report on line 8 the amount of distributions Responsiveness test. A supporting organization is
reported on line 1 to supported organizations that met the “responsive” to the needs and demands of a supported
attentiveness and responsiveness tests, discussed later, and organization if it meets the responsiveness test set forth in
provide in Part VI the supplemental information, discussed the instructions for Part IV, Section D, Lines 2 and 3, with
later. respect to the supported organization.
Supplemental information required. In Part VI, identify
A Type III non-functionally integrated supporting
each of the supported organizations listed in Part I, line 12g,
organization must distribute at least one-third of its
column (i), that met both of the following conditions for the tax
distributable amount each tax year to one or more supported
year.
organizations that are “attentive” to its operations and to
which the supporting organization is “responsive” (as 1. The supporting organization was responsive to the
described later); thus, the line 10 amount must be at least supported organization, and
0.333. Carryovers of excess distributions from prior years 2. The supported organization was attentive to the
don't count toward the attentiveness requirement. supporting organization. With respect to each of the
If the line 10 amount is less than one-third (that is, the identified supported organizations, set forth the facts that
amount of distributions to supported organizations that met show how both the attentiveness test and the
both the attentiveness test and responsiveness test is less responsiveness test were met by the supporting organization
than one-third of the distributable amount), then the and the supported organization.
organization doesn't qualify as a Type III non-functionally
integrated supporting organization for the tax year. See Section E. Distribution Allocations
Regulations sections 1.509(a)-4(i)(5)(i) and (iii). If the Section E determines whether the distributable amount for
organization doesn't otherwise qualify as a public charity, the current tax year (and any underdistribution for reasonable
then the organization is a private foundation and must file cause in a prior year) is satisfied through current-year
Form 990-PF for the tax year. distributions and carryovers of prior-year excess
Attentiveness test. A supported organization is distributions. Section E also determines carryovers of excess
“attentive” to the operations of a supporting organization if, distributions to future years. Several lines in Section E aren't
during the tax year, at least one of the following requirements yet applicable during the phase-in period of the new
is satisfied. regulations for Type III non-functionally integrated supporting
organizations. Those lines are grayed out.

-18- Instructions for Schedule A (Form 990) 2022

- 19 -

Page 19 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

In applying distributions, there are three basic steps. clerical error. Under these circumstances, Y first applies
1. First, apply distributions to eliminate any $50,000 of its 2022 distributions of $310,000 to the 2021
underdistribution for reasonable cause in a prior tax year. underdistribution of $50,000 ($200,000 minus $150,000),
then applies $190,000 of its remaining 2022 distributions of
2. Second, apply distributions to satisfy the distributable $260,000 ($310,000 minus $50,000) to satisfy its 2022
amount for the current year. distributable amount. Y’s remaining $70,000 of distributions
3. Third, carry over to future years any remaining excess in 2022 ($310,000, minus $50,000 allocated to 2021, and
distributions. minus $190,000 allocable to 2022) are excess distributions
that may be carried over to future years.
Apply the oldest distributions first. Carryovers of excess
distributions from prior years are always applied in full before Line 1. Report the distributable amount for 2022 from
current-year distributions (unlike the rules for qualifying Section C, line 6.
distributions by private foundations), and older carryovers are Line 2. An organization that is treated as a Type III
applied before newer carryovers. Excess distributions of a non-functionally integrated supporting organization for the
given year can't be carried over for more than 5 years. first time in its 2021 tax year will have a distributable amount
Example 1. X is a Type III non-functionally integrated of zero during the 2021 tax year.
supporting organization that for its tax year including If the organization had any underdistributions for a prior
December 28, 2019, and through its following 2020 tax year tax year (2020 or 2021), then it didn't qualify as a Type III
meets the requirements of Regulations section 1.509(a)-4(i) non-functionally integrated supporting organization in that tax
(3)(iii) as in effect prior to December 28, 2019. Under year and subsequent years (and would be classified as a
transition rules, X is deemed to meet its distribution private foundation unless it met the requirements of another
requirement for 2020, but its distributable amount is public charity status) unless it met the requirements of the
calculated in the ordinary manner to determine its excess reasonable cause exception or the judicial proceeding
distributions. For 2020, X had a distributable amount, as exception discussed in the instructions for Lines 5 and 6,
ordinarily determined, of $80,000 and distributions of later. If the organization met either of these exceptions,
$100,000. Accordingly, X had excess distributions of explain in detail in Part VI how the organization met the
$20,000. For 2021, X had a distributable amount of $95,000 requirements for the exception.
and distributions of $85,000. X first applied its 2020 excess
distributions carryover of $20,000 to the 2021 distributable Line 3. On lines 3d and 3e, enter the amounts reported on
amount of $95,000. Then, X applied $75,000 of its 2021 lines 8d and 8e, respectively, from the organization's return
distributions of $85,000 to the remaining 2021 distributable for the 2021 tax year. The sum of the amounts on lines 3d
amount. Accordingly, X has excess distributions of $10,000 and 3e is also reported on line 3f. The amount reported on
from 2021 (2021 distributions of $85,000 minus $75,000 line 3f is then applied in the following priority.
applied to the 2021 distributable amount), which it may carry 1. First to any prior-year underdistributions on line 3g,
over to 2022. For 2022, X has a distributable amount of 2. Second (if any remaining amount) to the current-year
$100,000 and distributions of $150,000. X applies the distributable amount on line 3h, and
$10,000 excess distribution carryover from 2021 to the 2022
3. Third (if any remaining amount) on line 3j for carryover
distributable amount. Then, X applies $90,000 of its 2022
to future years.
distributions to the remaining 2022 distributable amount.
Section E will show $0 carryovers for 2020 and 2021 Excess distributions can't be carried over for more than 5 tax
(because the excess carryovers for each of those years were years and thus are forfeited if not used in the fifth year of
previously applied). In addition, Section E will show excess carryover. Such amounts are set forth on line 3i (not
distributions of $60,000 in 2022 (2022 distributions of applicable to the 2022 return).
$150,000 minus $90,000 applied to the 2022 distributable
Line 4. Apply the current-year distributions (from Section D,
amount), which it may carry over in the next 5 tax years until
line 7) in the same order of priority as described in the
applied.
instructions for Line 3 to any prior-year underdistributions
Example 2. Y is a Type III supporting organization that for (line 4a) and current-year distributable amount (line 4b)
its tax year including December 28, 2019, meets the remaining after applying carryovers on line 3. Any remaining
requirements of Regulations section 1.509(a)-4(i)(3)(iii) as in distributions are reported on line 4c for carryover to future
effect prior to such date, but doesn't meet such requirements years.
in its following 2020 tax year (because of underdistributions
for which the prior regulation didn't expressly provide a Lines 5 and 6. If the current-year distributable amount is
reasonable cause exception). Therefore, Y didn't benefit from greater than the sum of the excess distributions carryover
the transition rule for its 2020 tax year. Y's distributable from the prior year plus the current-year distributions, then
amount was $120,000 for 2020. Y made distributions of that the organization doesn't meet the distribution requirement
amount and had no excess distributions to carry over to and can't qualify as a Type III non-functionally integrated
2021. Y calculated that its distributable amount was supporting organization for the tax year, unless an exception
$150,000 for 2021 and made distributions of exactly that applies. If the organization doesn't qualify as a supporting
amount in 2021. Early in its 2022 tax year, Y discovers that its organization or otherwise as a public charity for the tax year,
distributable amount for 2021 actually was $200,000. Within then it is a private foundation and must file Form 990-PF for
180 days, Y makes a $110,000 distribution ($50,000 to cover the tax year and subsequent years until private foundation
the underdistribution for 2021 and $60,000 as part of its 2022 status is terminated under section 507. If either the
distributions). Later in the 2022 tax year, Y makes additional reasonable cause or judicial proceeding exception applies,
distributions totaling $200,000. Y’s distributable amount in then explain in detail in Part VI how the organization met the
the 2022 tax year is $190,000. In its 2022 Form 990, Y claims requirements for the exception.
reasonable cause for the 2021 underdistribution due to a

Instructions for Schedule A (Form 990) 2022 -19-

- 20 -

Page 20 of 20 Fileid: … 0-ez(scha)/2022/a/xml/cycle02/source 13:38 - 6-Oct-2022

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Reasonable cause exception. An organization that fails governing instrument that prohibits compliance, under the
to distribute its distributable amount won't be classified as a circumstances set forth in Regulations section 1.509(a)-4(i)
private foundation for the year of the failure if the organization (11)(ii)(E).
establishes to the satisfaction of the IRS that:
Lines 7 and 8. Enter on line 7 the prior-year carryover and
1. The failure was due to unforeseen events or the current-year distributions to the extent not applied to
circumstances beyond its control, a clerical error, or an prior-year underdistributions and the current-year
incorrect valuation of assets; distributable amount (and not already carried over for 5 tax
2. The failure was due to reasonable cause and not to years). The organization may carry over these amounts to
willful neglect; and future years. Prior-year carryovers are applied before
3. The distribution requirement is met within 180 days current-year distributions.
after the organization is first able to distribute its distributable
Part VI. Supplemental Information
amount notwithstanding the unforeseen events or
circumstances, or within 180 days after the clerical error or Use Part VI to provide narrative information required by these
incorrect valuation was or should have been discovered. instructions or to supplement responses to questions on
Schedule A (Form 990). Identify the specific part and line
Amounts paid to meet a distribution requirement of a prior tax number that the response supports, in the order in which they
year can't also be counted toward the distribution appear on Schedule A (Form 990). Part VI can be duplicated
requirement for the tax year in which paid. if more space is needed.
Judicial proceeding exception. An organization is
Don't include in Part VI the names of any donors,
excused from meeting the distribution requirements to the
grantors, or contributors because Part VI will be
extent of a conflicting mandatory provision in its governing CAUTION!
made available for public inspection.
instrument, if a judicial proceeding is pending to reform a

-20- Instructions for Schedule A (Form 990) 2022

PDF file checksum: 3853234095

(Plugin #1/9.12/13.0)