US Internal Revenue Service: i990pf--1992

8/14/2019 US Internal Revenue Service: i990pf--1992

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Cat. No. 11290Y

Instructions forForm 990-PFReturn of Private Foundation or Section 4947(a)(1)

Charitable Trust Treated as a Private Foundation(Section references are to the Internal Revenue Code unless otherwise noted.)

Department of the TreasuryInternal Revenue Service

General InformationPaperwork Reduction Act Notice.Weask for the information on this form tocarry out the Internal Revenue laws ofthe United States. You are required togive us the information. We need it toensure that you are complying withthese laws and to allow us to figure andcollect the right amount of tax.

The time needed to complete and filethis form will vary depending on

individual circumstances. The estimatedaverage time is:

Recordkeeping 140 hr., 37 min.

Learning about thelaw or the form 27 hr., 5 min.

Preparing the form 31 hr., 30 min.

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

If you have comments concerning theaccuracy of these time estimates orsuggestions for making this form moresimple, we would be happy to hear fromyou. You can write to both the InternalRevenue Service, Washington, DC

20224, Attention: IRS Reports ClearanceOfficer, T:FP; and the Office ofManagement and Budget, PaperworkReduction Project (1545-0052),Washington, DC 20503. DO NOT sendthe tax form to either of these offices.Instead, see When and Where To Fileon page 4.

Purpose of Form.Form 990-PF isused by private foundations and bynonexempt 4947(a)(1) charitable truststhat are treated as private foundations.These organizations use this form tocalculate the tax on net investmentincome and to report charitabledistributions and activities. The form

also serves as a substitute for thenonexempt section 4947(a)(1) charitabletrusts income tax return, Form 1041,U.S. Fiduciary Income Tax Return, whenthe trust has no taxable income.

Contents Page

A. Who Must File 1

B. Which Parts To Complete 2

C. Definitions 2

D. Other Forms You May Need ToFile 2

Contents Page

E. Additional Information 3

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

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

H. Accounting Period 4

I. Accounting Methods 4

J. When and Where To File 4

K. Extension of Time To File 4

L. Amended Return 4M. Penalty for Failure To File Timely,

Completely, or Correctly 4

N. Penalty for Not Paying Tax onTime 5

O. Figuring and Paying EstimatedTaxes on Net Investment Income 5

P. Depositary Method of TaxPayment for Domestic PrivateFoundations 5

Q. Public Inspection Requirements 5

R. Disclosures Regarding CertainInformation and ServicesFurnished 6

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

T. Liquidation, Dissolution,Termination, or SubstantialContraction 6

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

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

Specific Instructions 7

Part IAnalysis of Revenue andExpenses 8

Part IIBalance Sheets 12

Part IIIAnalysis of Changes inNet Assets or Fund Balances 14

Part IVCapital Gains and Lossesfor Tax on Investment Income 14

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

Part VIExcise Tax on InvestmentIncome 15

Part VIIStatements RegardingActivities 16

Contents Page

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

Part IX-ASummary of DirectCharitable Activities 17

Part IX-BSummary of Program-Related Investments 18

Part XMinimum Investment Return 18

Part XIDistributable Amount 20

Part XIIQualifying Distribut ions 20

Part XIIIUndistributed Income 21Part XIVPrivate Operating

Foundations 22

Part XVSupplementary Information 23

Part XVI-AAnalysis of Income-Producing Activities 23

Part XVI-BRelationship of Activitiesto the Accomplishment of ExemptPurposes 23

Part XVIIInformation RegardingTransfers to and Transactions andRelationships With NoncharitableExempt Organizations 23

Part XVIIIPublic Inspection 25

Signature 25Exclusion Codes 26

General Instructions

A. Who Must File

Form 990-PF is an annual informationreturn that must be filed by:

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

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

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

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

5. Organizations that are making asection 507 termination.

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

Note: Section 4947(a)(1) nonexemptcharitable trusts that are not treated asprivate foundations, do not file Form


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990-PF. However, they may need to fileForm 990, Return of OrganizationExempt From Income Tax, orForm990EZ, Short Form Return ofOrganization Exempt From Income Tax.With either of these forms, the trustmust also fileSchedule A (Form 990),Organization Exempt Under Section501(c)(3) (Except Private Foundation),501(e), 501(f), 501(k), or Section4947(a)(1) Charitable TrustSupplementary Information. (See Form990 or Form 990EZ instructions. )

B. Which Parts To Complete

The parts of the form listed below donot apply to all filers. If an entire part, ora major portion of a part, does notapply, enter N/A where appropriate.

Part I, column (c), applies only toprivate operating foundations and tononoperating private foundations thathave income from charitable activities.

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

Part IV does not apply to foreignorganizations.

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

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

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

foundations. Part XIV applies only to privateoperating foundations.

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

C. Definitions

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

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

A nonexempt charitable trust treatedas a private foundation is a trust that isnot exempt from tax under section501(a) and all of the unexpired interestsof which are devoted to religious,charitable, or other purposes described

in section 170(c)(2)(B), and for which adeduction was allowed under a sectionof the Code listed in section 4947(a)(1).

A taxable foundation is no longerexempt under section 501(a) as anorganization described in section501(c)(3). Though it may operate as ataxable entity, it will continue to betreated as a private foundation until itsstatus as such is terminated undersection 507.

A foundation manager is an officer,

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

A disqualified person is:

1. A substantial contributor (see page17);

2. A foundation manager;

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

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

5. A corporation, partnership, trust, orestate in which persons described in 1,2, 3, or 4 above own a total beneficialinterest of more than 35%.

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

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

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

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

An organization is controlled by afoundation or by one or moredisqualified persons with respect tothe foundation if any of these persons

may, by combining their votes orpositions of authority, require theorganization to make an expenditure orprevent the organization from making anexpenditure, regardless of the method ofcontrol. Control is determined withoutregard to the conditions imposed by afoundation on the manner in which thecontribution must be used.

Charitable and exempt aresynonymous terms in these instructionswhen they relate to a tax-exempt privatefoundation.

D. Other Forms You May Need ToFile

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

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

Form 990-T.Exempt OrganizationBusiness Income Tax Return. Everyorganization exempt from income taxunder section 501(c)(3) that has totalgross income of $1,000 or more from alltrades or businesses that are unrelatedto the organizations exempt purposemust file a return on Form 990-T.

Form 1041.U.S. Fiduciary Income TaxReturn. Required of section 4947(a)(1)charitable trusts that also file Form990-PF. However, if the trust does nothave any taxable income under subtitleA of the Code, it may use the filing ofForm 990-PF to satisfy its Form 1041filing requirement under section 6012. If

this condition is met, check the box forquestion 19, Part VII, of Form 990-PFand do not file Form 1041, but completeForm 990-PF in the normal manner.

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

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

Form 1120.U.S. Corporation IncomeTax Return. Filed by nonexempt taxableprivate foundations that have taxableincome under subtitle A of the Code.The Form 990-PF annual informationreturn is also filed by these taxablefoundations.

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

Form 1128.Application to Adopt,

Change or Retain A Tax Year.Form 2758.Application for Extensionof Time To File Certain Excise, Income,Information, and Other Returns.

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


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However, complete and attach Form2220 even if the foundation does notowe the penalty if:

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

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

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

any penalty on this line.Form 4720.Return of Certain ExciseTaxes on Charities and Other PersonsUnder Chapters 41 and 42 of theInternal Revenue Code, is primarily usedto determine the excise taxes imposedon: acts of self-dealing between privatefoundations and disqualified persons;failure to distribute income; excessbusiness holdings; investments that

jeopardize the foundations charitablepurposes; and making political or othernoncharitable expenditures. Certainexcise taxes and penalties also apply tofoundation managers, substantial

contributors, and certain related personsand are reported on this form.

Form 5500 or 5500-C/R.Employerswho maintain pension, profit-sharing, orother funded deferred compensationplans are generally required to file one ofthe 5500 series of forms specified in thefollowing paragraph. This requirementapplies whether or not the plan isqualified under the Internal RevenueCode and whether or not a deduction isclaimed for the current tax year.

The forms required to be filed are:

Form 5500, Annual Return/Report ofEmployee Benefit Plan. Used for each

plan with 100 or more participants.Form 5500-C/R, Return/Report ofEmployee Benefit Plan. Used for eachplan with fewer than 100 participants.

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

Also required of any successor doneewho disposes of charitable deductionproperty within 2 years after the datethat the donor gave the property to theoriginal donee. (It does not matter who

gave the property to the successordonee. It may have been the originaldonee or another successor donee.) Forsuccessor donees, the form must befiled only for any property that wastransferred by the original donee afterJuly 5, 1988.

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

trade or business (as defined in section162).

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

Form 990-W.Estimated Tax onUnrelated Business Taxable Income forTax-Exempt Organizations.

Form 1041-ES.Estimated Income Tax

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

Form 8109.Federal Tax DepositCoupon.

Form 8822.Change of Address.

E. Additional Information

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

Publication 525.Taxable andNontaxable Income.

Publication 578.Tax Information forPrivate Foundations and FoundationManagers.

Publication 583.Taxpayers Starting aBusiness.

Publication 598.Tax on UnrelatedBusiness Income of ExemptOrganizations.

Publication 910.Guide to Free TaxServices.

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

Publications and forms are available atno charge through IRS offices or by

calling 1-800-TAX-FORM(1-800-829-3676).

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

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

If the organization plans to use Form990-PF to satisfy state or local filingrequirements, such as those arisingunder state charitable solicitation acts,note the following:

Determine state filing requirements.

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

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

checking account or owning or rentingproperty therein.

Monetary tests may differ.Some orall of the dollar limitations applicable toForm 990-PF when filed with the IRSmay not apply when using Form 990-PFin place of state or local report forms.IRS dollar limitations that may not meetsome state requirements are the $5,000total assets minimum that requirescompletion of Part II, column (c), andPart XV; and the $30,000 minimum for

listing the highest paid employees andfor listing professional fees in Part VIII.

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

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

Even if the Form 990-PF filed with theIRS is accepted by the IRS as complete,a copy of the same return filed with astate will not fully satisfy that statesfiling requirement if required informationis not provided. This includes any of theadditional information discussed above,or if the state determines that the formwas not completed according to theapplicable Form 990-PF instructions or

supplemental state instructions. In thiscase, the organization may be asked toprovide the missing information or tosubmit an amended return.

Amended returns.If the organizationsubmits supplemental information orfiles an amended Form 990-PF with theIRS, it must also furnish a copy of theinformation or amended return to anystate with which it filed a copy of Form990-PF originally to meet that statesfiling requirement.

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

Time for filing may differ.The time forfiling Form 990-PF with the IRS differsfrom the time for filing reports with somestates.

State registration numbers.Insert theapplicable state or local jurisdictionregistration or identification number inbox B (in the heading on page 1) foreach jurisdiction in which theorganization files Form 990-PF in placeof the state or local form. When filing inseveral jurisdictions, prepare as many


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copies as needed with the stateregistration number omitted. Then enterthe applicable registration number onthe copy to be filed with each

jurisdiction.

G. Furnishing Copies of Form990-PF to State Officials

The foundation managers must furnish acopy of the annual Form 990-PF to theattorney general (or his or her designate)of (a) each state which they are required

to list in Part VII, line 8a, (b) the state inwhich the principal office of thefoundation is located, and (c) the state inwhich the foundation was incorporatedor created. The return must be furnishedat the same time it is sent to the IRS.The foundation managers must alsoprovide a copy of the annual return tothe attorney general or other appropriatestate official of any other state whorequests it. The foundation managersmust also attach to all copies of theannual return filed with an attorneygeneral a copy of any Form 4720 filedby the foundation with the IRS for theyear. These provisions do not apply to

any foreign foundation which, from thedate of its creation, has received at least85% of its support (excluding grossinvestment income) from sourcesoutside the United States. (SeeExceptions in General Instruction Q.)

If the foundation managers submit acopy of Form 990-PF (and Form 4720, ifany) to a state attorney general tosatisfy a state reporting requirement,they do not have to furnish a secondcopy to that attorney general to complywith the Internal Revenue Coderequirements covered by this instruction.If there is a state reporting requirementthat the copy of Form 990-PF be filedwith a state official other than theattorney general (such as a secretary ofstate), then the foundation managersmust also furnish a copy of the Form990-PF to the attorney general of thatstate.

H. Accounting Period1. File the 1992 return for the calendar

year 1992 or fiscal year beginning in1992. If the return is for a fiscal year, fillin the tax year space at the top of thereturn.

2. The return must be filed on thebasis of the established annual

accounting period of the organization. Ifthe organization has no establishedaccounting period, the return should beon the calendar-year basis.

3. In the case of an initial or finalreturn or a change in accounting period,the 1992 form may also be used as thereturn for a short period (less than 12months) ending November 30, 1993, orearlier.

In general, to change its accountingperiod the organization must file timely aForm 990-PF for the short period

resulting from the change. At the top ofthis short period return, indicate that achange of accounting period is beingmade by writing Change of AccountingPeriod.

If the organization changed itsaccounting period within the10-calendar-year period that includesthe beginning of the short period, and ithad a Form 990-PF filing requirement atany time during that 10-year period, itmust also attach a Form 1128 to the

short period return. See Rev. Proc.85-58, 1985-2 C.B. 740.

I. Accounting Methods

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

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

J. When and Where To File

This return must be filed by the 15th day

of the 5th month following the close ofthe accounting period. If the return isfiled late, see Penalty for Failure To FileTimely, Completely, or Correctly below.

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

Where To File

If the principal officeof the organization

is located in

Use the followingInternal RevenueService Center

address

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

Atlanta, GA 39901

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

Austin, TX 73301

Indiana, Kentucky,Michigan, Ohio, WestVirginia

Cincinnati, OH 45999

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

Fresno, CA 93888

Connecticut, Maine,Massachusetts, NewHampshire, New York,Rhode Island, Vermont

Holtsville, NY 00501

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

Kansas City, MO 64999

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

Philadelphia, PA 19255

K. Extension of Time To File

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

L. Amended Return

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

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

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

Use Form 4506-A to obtain a copy ofa previously filed return. You can obtainblank forms for prior years by callingtoll-f ree, 1-800-TAX-FORM(1-800-829-3676).

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

Against the organization.If anorganization fails to file timely,completely, or to furnish the correctinformation, it must pay $10 for eachday during which such failure continues,unless it can show that the failure wasdue to reasonable cause. Those filinglate (after the due date, includingextensions) must attach an explanationto the return. The maximum penalty forany one return will not exceed thesmaller of $5,000 or 5% of the grossreceipts of the organization for the year.

Against the responsible person.TheIRS will make written demand that thedelinquent return be filed or theinformation furnished within areasonable time after notice of mailing ofthe demand. The person failing tocomply with the demand on or beforethe date specified in the demand willhave to pay $10 for each day the failurecontinues, unless there is reasonablecause. The maximum penalty imposedon all persons for failures with respect toany one return will not exceed $5,000. Ifmore than one person is liable for anyfailures, all such persons are jointly and

severally liable for such failures (seesection 6652(c)).

To avoid filing an incomplete return orhaving to respond to requests formissing information, please be sure tocomplete all applicable line items; toanswer Yes, No, or N/A (notapplicable) to each question on thereturn; to make an entry (including azero when appropriate) on all total lines;and to enter None or N/A if an entirepart does not apply.


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

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

N. Penalty for Not Paying Tax onTime

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

The section 6655 penalties for failureto pay estimated taxes apply to thetaxes on net investment income ofdomestic private foundations andsection 4947(a)(1) charitable trusts. Thepenalties also apply to any tax onunrelated business income of theseorganizations. For more information, seethe discussion of Form 2220 in OtherForms You May Need To File in theseinstructions.

O. Figuring and Paying EstimatedTaxes on Net Investment Income

A domestic private foundation mustmake estimated tax payments of theexcise tax on investment income if it can

expect its estimated tax (section 4940tax minus allowable credits) to be $500or more. The number of installmentpayments it must make under thedepositary method is determined at thetime during the year that it first meetsthis requirement. For calendar-yeartaxpayers, the first deposit of estimatedtaxes for a year should generally bemade by April 15 of the year.

Although Form 990-W is usedprimarily to compute the installmentpayments of unrelated business incometax, it may also be used to determinethe timing and amounts of installment

payments of the section 4940 tax on netinvestment income.

To figure the estimated tax, multiplythe estimated investment income by thetax rate (1% or 2%, whichever isapplicable) and enter that amount online 11 of Form 990-W.

The Form 990-W line items andinstructions for large organizations alsoapply to private foundations. Forpurposes of paying the estimated tax onnet investment income, a largeorganization is one that had net

investment income of $1 million or morefor any of the 3 tax years immediatelypreceding the tax year involved.

A foundation that fails to pay theproper estimated tax when due may besubject to an underpayment penalty forthe period of the underpayment.Generally, a foundation is subject to thepenalty if its tax liability is $500 or moreand it did not make the requiredpayments on time. See the 1993 Form990-W or 1041-ES for information on

determining the amounts of requiredpayments.

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

Note: Section 4947(a)(1) charitable trustsand taxable foundations that haveincome subject to tax under section 1 orsection 11 should see Form 1120 for theestimated tax rules. However, section4947(a)(1) charitable trusts should useForm 1041-ES for paying any estimatedtax on that income. Taxable foundationsshould use Form 8109, and darken the1120 box on that form.

P. Depositary Method of TaxPayment for Domestic PrivateFoundations

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

If the balance of foundation netinvestment tax due shown on line 9,Part VI of Form 990-PF, or line 5c ofForm 2758, Application for Extension ofTime To File Certain Excise, Income,Information, and Other Returns, is lessthan $500, attach a check or moneyorder, payable to the Internal RevenueService, to page 1 of Form 990-PF orsend the full balance due with Form2758. Otherwise, deposit foundation netinvestment income tax payments(estimated tax payments and balance oftax due as shown on line 9, Part VI ofForm 990-PF, or line 5c of Form 2758)with a Federal Tax Deposit Coupon(Form 8109). Be sure to darken the990-PF box on Form 8109. Make thesetax deposits with either a financialinstitution qualified as a depositary forFederal taxes or the Federal Reserve

bank or branch servicing the geographicarea where the foundation is located. Donot submit deposits directly to an IRSoffice; otherwise, the foundation may besubject to a failure-to-deposit penalty.Records of deposits will be sent to IRSfor crediting to the foundations account.See the instructions in the coupon book(Form 8109) for more details.

To ensure accurate processing of yourdeposits, write the organizationsemployer identification number, type of

tax paid, and the tax period to which thedeposit applies on the check.

For more information concerningdeposits, see Pub. 583.

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

Q. Public Inspection Requirements

From the organization

Information reported on Form 990-PF,including all attachments, is available for

public inspection under section 6104(b).This applies both to information requiredby the form and to information furnishedvoluntarily. Therefore, the return and anyattachments should be of reproduciblequality.

Annual returns

Foundation managers must make theannual return available for inspectionduring regular business hours at theprincipal office of the foundation, or mayfurnish a free copy to any personrequesting inspection, provided therequest is made at the time and in themanner prescribed in section 6104(d)

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

The notice must state that the annualreturn of the private foundation isavailable for inspection at its principaloffice during regular business hours byany citizen who requests inspectionwithin 180 days after the date the noticeis published. It must also show theaddress and telephone number of theprivate foundations principal office andthe name of its principal manager. Aprivate foundation may designate, inaddition to its principal office, any otherlocation at which its annual return will bemade available. Another location mayalso be designated if the foundation hasno principal office or none other than the

residence of a substantial contributor orfoundation manager.

To ensure that the return is availablefor public inspection for the full 180-dayperiod as required by law, do not publishthe notice until the return has beencompleted and, in fact, is readilyavailable for inspection upon request.

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

Penalties.If a foundation does notpublish the notice and attach a copy of


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it to a timely filed return, there is apenalty of $10 a day, up to a maximumof $5,000 for any one return (section6652(c)). The penalty is imposed on theperson under a duty to act, but who failsto do so without reasonable cause. Thepenalty is also imposed on any personwho fails to make the return (includingall required attachments) available forpublic inspection according to thesection 6104(d) provisions discussedabove. If more than one person isresponsible for either failure to act, eachperson is jointly and severally liable forthe full amount of the penalty. Anyperson who willfully fails to comply issubject to an additional penalty of$1,000 (section 6685).

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

1.507-2(a)(6)).The notice and public inspection

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

Exemption applications

Any section 501(c) organization thatsubmitted an application for recognitionof exemption to the Internal RevenueService after July 15, 1987, must makeavailable for public inspection a copy ofits application (together with a copy ofany papers submitted in support of itsapplication) and any letter or otherdocument issued by the IRS in responseto the application. An organization thatsubmitted its exemption application onor before July 15, 1987, must alsocomply with this requirement if it had acopy of its application on July 15, 1987.The copy of the application and relateddocuments must be made available forinspection during regular business hours

at the organizations principal office andat each of its regional or district officeshaving at least three employees.

Any person who does not comply withthe public inspection of applicationrequirement shall be assessed a penaltyof $10 for each day that inspection wasnot permitted. There is no limitation. Nopenalty will be imposed if the failure isdue to reasonable cause. If more thanone person is responsible for failure tocomply with this requirement, eachperson is jointly and severally liable for

the full amount of the penalty. Anyperson who willfully fails to comply issubject to an additional penalty of$1,000.

From the IRS

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

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

address (city and state) of theorganization that filed the return orapplication. A request to inspect a returnshould indicate the type (number) of thereturn and the year(s) involved. Therequest should be sent to the DistrictDirector (Attention: Disclosure Officer) ofthe district in which the requester wantsto inspect the return or application. Ifthe requester wants the inspection atthe IRS National Office, the requestshould be sent to the Commissioner ofInternal Revenue, Attention: Freedom ofInformation Reading Room, 1111Constitution Avenue, N.W., Washington,DC 20224.

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

R. Disclosures Regarding CertainInformation and ServicesFurnished

A section 501(c) organization that offersto sell or solicits money for specificinformation or a routine service for anyindividual that could be obtained bysuch individual from a FederalGovernment agency free or for anominal charge must disclose that factconspicuously when making such offeror solicitation.

Any organization that intentionallydisregards this requirement will besubject to a penalty for each day theoffers or solicitations are made. Thepenalty imposed for a particular day isthe greater of $1,000 or 50% of the totalcost of the offers and solicitations madeon that day which lacked the requireddisclosure.

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

Regulations section 53.4948-1(b) statesthat sections 507, 508, and Chapter 42(other than section 4948) do not apply toa foreign private foundation which fromthe date of its creation has received atleast 85% of its support (as defined insection 509(d), other than section509(d)(4)) from sources outside theUnited States.

Section 4948(a) imposes a 4% tax onthe gross investment income (i.e.,income from dividends, interest, rents,payments received on securities loans

(as defined in section 512(a)(5)), androyalties not reported on Form 990-T ofan exempt foreign private foundationfrom U.S. sources. This tax is in lieu ofthe section 4940 tax on the netinvestment income of a domestic privatefoundation. To pay any tax due, see theinstructions for Part VI, line 9.

Taxable foreign private foundationsand foreign sect ion 4947(a)(1) charitabletrusts are not subject to the excise taxesunder sections 4948(a) and 4940, but

are taxed under subtitle A of the Code.Certain foreign foundations are not

required to furnish copies of annualreturns to state officials, nor must theycomply with the public inspection andnotice requirements of annual returns.(See General Instructions G and Q.)

T. Liquidation, Dissolution,Termination, or SubstantialContraction

Organizations liquidating, etc., mustattach a statement to the returnexplaining the nature of any liquidation,dissolution, termination, or substantial

contraction. See General Instruction Jfor filing dates and locations.

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

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

1. Dispositions for the tax year, and

2. Related dispositions made duringprior tax years (if a disposition is part ofa series of related dispositions made

during these prior tax years)is less than 25% of the fair market valueof the net assets of the organization atthe beginning of the tax year (in thecase of 1 above) or at the beginning ofthe tax year in which any of the series ofrelated dispositions was made (in thecase of 2 above).

Whether a significant disposition hasoccurred through a series of relateddispositions will be determined from allthe facts and circumstances of theparticular case. Ordinarily, a distributiondescribed in section 170(b)(1)(E)(ii)(relating to private foundations makingqualifying distributions out of corpusequal to 100% of contributions receivedduring the foundations tax year) will notbe taken into account as a significantdisposition of assets. See Regulationssection 1.170A-9(g)(2).

In the case of a complete liquidationof a corporation or termination of a trust,state whether a final distribution ofassets was made and the date made.Also, attach a certified copy of theresolution or plan, if any, of liquidation,etc., and all amendments orsupplements not previously filed, as well


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as a schedule listing the names andaddresses of all recipients of assetsdistributed in liquidation, dissolution, orsubstantial contraction, and anexplanation of the nature and fair marketvalue of assets distributed to eachrecipient.

Organizations that have terminatedtheir private foundation status undersection 507(b)(1)(A) are excepted fromthe notice and public inspectionrequirements of their annual return for

the year of termination (see Exceptionsin General Instruction Q).

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

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

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

Although an organization terminating itsprivate foundation status under section507(b)(1)(B) may be regarded as a public

charity for certain purposes, it is stillconsidered a private foundation forpurposes of the filing requirements andmust file an annual return on Form990-PF. The return must be filed foreach year in the 60-month terminationperiod, if that period has not expiredbefore the due date of the return.

Regulations under section 507(b)(1)(B)(iii) specify that within 90 days afterthe end of the termination period theorganization must furnish information toits key District Director establishing thatit has terminated its private foundationstatus and, therefore, qualifies as apublic charity. If information is furnished

establishing a successful termination,then for the final year of the terminationperiod the organization should complywith the filing requirements for the typeof public charity it has become. See theInstructions for Form 990 and ScheduleA (Form 990) for details on filingrequirements. This applies even if thekey district has not affirmed that theorganization has terminated its privatefoundation status by the time the returnfor the final year of the termination isdue (or would be due if a return wererequired).

The organization will be allowed a

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

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

If the organization is terminating itsprivate foundation status under the60-month provisions of section507(b)(1)(B), special rules apply. (SeeGeneral Instructions T and U.) Underthese rules the organization may fileForm 990-PF without paying the tax onnet investment income if it filed aconsent under section 6501(c)(4) with itsnotification to the District Director of its

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

If the foundation did not file theconsent, the tax must be paid in the

normal manner as explained in GeneralInstructions O and P. The organizationmay file a claim for refund aftercompleting termination or during thetermination period. The claim for refundmust be filed on time and theorganization must furnish informationestablishing that it qualified as a publiccharity for the period for which it paidthe tax.

Specific InstructionsName and Address.If the organizationreceived a Form 990-PF Package fromthe IRS with a preaddressed label,

please use it. If the name or address onthe label is wrong, make corrections onthe label. The address used must bethat of the principal office of thefoundation.

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

A. Employer Identification Number.The organization should have only oneemployer identification number. If it hasmore than one number, notify the

Internal Revenue Service Center at theappropriate address shown underGeneral Instruction J above. Explainwhat numbers the organization has, thename and address to which eachnumber was assigned, and the addressof the organizations principal office. TheIRS will then advise which number touse.

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

the computation of the 85% test toForm 990-PF.

Note: If the foundation meets the 85%test, DO NOTfill in Parts XI and XIII, butcheck the box at the top of Part IX. Ifthe foundation meets the 85% test, DONOTfill in Part X unless it is claimingstatus as a private operating foundation.

E. Section 507(b)(1)(A) Terminations.A private foundation that has terminatedits status as such under section507(b)(1)(A), by distributing all its net

assets to one or more public charitieswithout retaining any right, title, orinterest in those assets, should checkthe box in E on page 1 of Form 990-PFto indicate termination. See GeneralInstructions T and Q.

F. 60-Month Termination UnderSection 507(b)(1)(B).Check the box inF on page 1 of Form 990-PF if theorganization is terminating its privatefoundation status under the 60-monthprovisions of section 507(b)(1)(B) duringthe period covered by this return. Tobegin such a termination, a privatefoundation must have given advancenotice to its key District Director andprovided the information outlined inRegulations section 1.507-2(b)(3).

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

See General Instruction U forinformation regarding filing requirementsduring a section 507(b)(1)(B) termination.

H. Type of Organization.Check theblock for Section 501(c)(3) exemptprivate foundation if the foundation hasa ruling or determination letter from theIRS in effect that recognizes itsexemption from Federal income tax asan organization described in section501(c)(3) or if the organizationsexemption application is pending withthe IRS.

Check the 4947(a)(1) charitable trustblock if the trust is a nonexemptcharitable trust treated as a privatefoundation. All others, check the Othertaxable private foundation block.

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

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

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

Currency and LanguageRequirements.Report all amounts in


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U.S. dollars (state conversion rate used).Report all items in total, includingamounts from both U.S. and non-U.S.sources. Furnish all information inEnglish.

Attachments.Use the schedules onthe official form unless you need morespace. If you use attachments, theymust:

1. State Form 990-PF and the taxyear,

2. Show the organizations name and

employer identification number,3. Include the information required by

the form,

4. Follow the format and linesequence of the form, and

5. Be on the same size paper as theform.

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

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

Column (a)Revenue andExpenses per Books

Revenue

Enter in column (a) all items of revenueshown in the books and records thatincreased the net assets of theorganization. Do not include, however,the value of services donated to thefoundation, or items such as the freeuse of equipment or facilities, in

contributions received.Line 1Contributions, gifts, grants,etc., received.Enter the total of grosscontributions, gifts, grants, and similaramounts received. If money, securities,or other property valued at $5,000 ormore was received directly or indirectlyfrom any one person during the year,attach a schedule showing the nameand address of each such person andthe amount and date of each gift madeduring the year by each such person.

To determine whether a person hascontributed $5,000 or more, total onlygifts of $1,000 or more from each

person. Separate and independent giftsneed not be totaled if less than $1,000.If a contribution is in the form ofproperty, furnish a description and thefair market value of the property.

The term person includesindividuals, fiduciaries, partnerships,corporations, associations, trusts, andexempt organizations.

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

Report contributions only on lines 1 and2.

Line 3Interest on savings andtemporary cash investments.Enterthe total amount of interest income frominvestments of the type reportable inBalance Sheets, Part II, line 2. Theseinclude savings or other interest-bearingaccounts and temporary cashinvestments, such as money marketfunds, commercial paper, certificates ofdeposit, and U.S. Treasury bills or other

government obligations that mature inless than 1 year.

Line 4Dividends and interest fromsecurities.Enter the amount ofdividend and interest income fromsecurities (stocks and bonds) of the typereportable in Balance Sheets, Part II, line10. Include amounts received frompayments on securities loans, as definedin section 512(a)(5). Do not include anycapital gain dividends reportable on line6. See the instructions for line 11 forreporting income from program-relatedinvestments. For debt instruments withan original issue discount, report theoriginal issue discount ratably over the

life of the bond on line 4. See section1272 for more information.

Line 5aGross rents.Enter the grossrental income for the year frominvestment property reportable on line11 of Part II.

Line 5bNet rental income or (loss).Figure the net rental income or (loss) forthe year and enter that amount on line5b. Do not carry this amount intocolumns (a) through (d).

Report rents from other sources online 11, Other income. Enter, on lines 13through 23, any expenses, such asinterest and depreciation, attributable to

the rental income reported on line 5.Line 6Net gain or (loss) from sale ofassets.Enter the net gain or (loss) perbooks from the sale of all assets notincluded on line 10. Since any gain isper the books and may include gain onthe sale of assets used for charitablepurposes, the gain entered here may notagree with that shown in the othercolumns.

For assets sold and not included inPart IV, attach a schedule showing: (a)date acquired, manner of acquisition,date sold, and to whom sold, (b) grosssales price, (c) cost, other basis or value

at time of acquisition if donated (statewhich basis), (d) expense of sale andcost of improvements made subsequentto acquisition, and (e) depreciation sinceacquisition, if depreciable property.

Lines 10a, b, cGross profit on salesof inventory.Enter the gross sales(less returns and allowances), cost ofgoods sold, and gross profit or (loss)from the sale of all inventory items,including those sold in the course ofspecial fundraising events and activities.These inventory items are the ones the

organization either makes to sell toothers or buys for resale.

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

Do not include the profit or (loss) fromthe sale of items of a capital nature suchas securities, land, buildings, orequipment. Include such amounts online 6.

Do not include any expenses incurredin the business activities such assalaries, taxes, rent, etc. Include them

instead on lines 13 through 23.Attach a schedule showing the

following items: Gross sales, Cost ofgoods sold, Gross profit or (loss). Theseitems should be classified according totype of inventory sold (such as books,tapes, or other educational or religiousmaterial). The totals from the scheduleshould agree with the entries on lines10a through 10c.

Line 11Other income.Enter thetotal of all other income of thefoundation for the year. Include royaltyincome, income from program-relatedinvestments (defined in the instructions

for Part IX-B), and from other assetsused for charitable purposes (such asinterest earned from scholarship loansand rents from low-income tenants),imputed interest on certain deferredpayments figured under section 483,and any investment income notreportable on lines 3 through 5.However, do not include unrealized gainsand losses on investments carried atmarket value. Report those as fundbalance or net asset adjustments in PartIII. Attach a schedule showing thedescription and amount of the income.

Operating and Administrative

ExpensesEnter in column (a) all items of expense,shown in the books and records, thatdecreased the net assets of theorganization. However, do not include onlines 13 through 26 any expenses usedto compute capital gains and losses onlines 6, 7, and 8 or expenses included incost of goods sold on line 10b.

Line 13Compensation of officers,directors, trustees, etc.Enter the totalcompensation for the year of all officers,directors, and trustees. If none was paid,enter zero. Complete subpart 1 of PartVIII to show the compensation of

officers, directors, trustees, andfoundation managers.

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

Line 15Contributions to employeepension plans and other benefits.Enter the total of the employers share ofthe contributions the organization paidto qualified and nonqualified pensionplans and the employers share ofcontributions to employee benefit


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

Also include in the total the amount ofFederal, state, and local payroll taxes forthe year, but only those that are

imposed on the organization as anemployer. This would include theemployers share of social security andMedicare taxes, FUTA tax, stateunemployment compensation tax, andother state and local payroll taxes. Donot include taxes withheld fromemployees salaries and paid over to thevarious governmental units (such asFederal and state income taxes and theemployees share of social security andMedicare taxes).

Lines 16a, b, and cLegal,accounting, and other professionalfees.On the appropriate line(s), enterthe total amount of legal, accounting,

auditing, and other professional fees(such as fees for fundraising orinvestment services) charged by outsidefirms and individuals who are notemployees of the foundation.

Attach a schedule for lines 16a, b, andc. Show the type of service and amountof expense for each. If the same personprovided more than one of theseservices, provide an allocation of thoseexpenses. (See the instructions for PartVIII, line 3.) Report any fines, penalties,or judgments imposed against thefoundation as a result of legalproceedings on line 23, Other expenses.

Line 18Taxes.Enter the total taxespaid (or accrued) during the year. Thetotal should include all types of taxesrecorded on the books, including realestate tax not reported on line 20; thetax on investment income; and anyincome tax. Do not enter any taxesincluded on line 15. Attach a schedulelisting the type and amount of each taxreported on line 18.

Line 19Depreciation anddepletion.Enter the total expenserecorded in the books for the year.

For depreciation, attach a scheduleshowing: (a) description of the property,

(b) date acquired, (c) cost or other basis(exclude any land), (d) depreciationallowed or allowable in prior years, (e)method of computation, (f) rate (%) orlife (years), and (g) depreciation this year.On a separate line on the schedule,show the amount of depreciationincluded in cost of goods sold and notincluded on line 19.

Line 20Occupancy.Enter the totalamount paid or incurred for the use ofoffice space or other facilities. If thespace is rented or leased, enter the

amount of rent. If space is owned, enterthe amount of mortgage interest, realestate taxes, and similar expenses, butnot depreciation (reportable on line 19).In either case, include the amount forutilities and related expenses, e.g., heat,lights, water, power, telephone, sewer,trash removal, outside janitorial services,and similar services. Do not include anysalaries of the organizations ownemployees which are reportable on line14.

Line 21Travel, conferences, andmeetings.Enter the total expenses forofficers, employees or others during theyear for travel, attending conferences,meetings, etc. The amount shouldinclude transportation (including fares,mileage allowance, or automobileexpenses), meals and lodging, andrelated costs whether paid on the basisof a per diem allowance or actualexpenses incurred. Do not include anycompensation paid to those whoparticipate.

Line 22Printing and publications.Enter the total amount of expenses forprinting or publishing and distributing

any newsletters, magazines, etc. Alsoinclude the cost of subscriptions to, orpurchases of, magazines, newspapers,etc.

Line 23Other expenses.Enter thetotal of all other expenses for the year. Ifa separate line is provided for anexpense, use that line. Attach aschedule showing the type and amountof each expense.

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

Description of the amortizedexpenses;

Date acquired, completed, orexpended;

Amount amortized;

Deduction for prior years;

Amortization period (number ofmonths);

Current-year amortization; and

Total amount of amortization.

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

each class of activity, (b) separate totalfor each activity, (c) name and addressof donee, (d) relationship of donee, ifrelated by blood, marriage, adoption, oremployment (including children ofemployees) to any disqualified person(see definitions), and (e) theorganizational status of donee (forexample, public charityan organizationdescribed in section 509(a)(1), (2), or (3)).You do not have to give the name of anyindigent person who received one ormore gifts or grants from the foundation

unless that person is a disqualifiedperson or one who received a total ofmore than $1,000 from the foundationduring the year.

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

Foundations may include, as a singleentry on the schedule, the total ofamounts paid as grants for which thefoundation exercised expenditureresponsibility. Attach a separate reportfor each grant.

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

Net Amounts

Line 27aExcess of revenue overexpenses.Subtract line 26, column (a),from line 12, column (a). Enter thedifference. Generally, the amount shownin column (a) on this line would also bethe amount by which net assets (or fundbalances) have increased or decreasedfor the year. See the instructions for PartIII, Analysis of Changes in Net Assets orFund Balances.

Column (b)Net InvestmentIncome

Revenue

All domestic private foundations(including section 4947(a)(1) charitabletrusts) are required to pay an excise taxeach tax year on their net investmentincome.

Exempt foreign foundations aresubject to an excise tax on their grossinvestment income from U.S. sources.These foreign organizations shouldcomplete lines 3, 4, 5, 11, 12, and 27bof column (b) and report ONLY incomederived from U.S. sources. No other

income is to be included. No expensesare allowed as deductions.

Gross investment income means thetotal amount of investment income thatwas received by a private foundationfrom all sources. However, it does notinclude any income included in figuringthe tax on unrelated business income. Itincludes interest, dividends, rents,payments with respect to securitiesloans (as defined in section 512(a)(5)),royalties received from assets devotedto charitable activities, income from


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notional principal contracts (as definedin Regulations section 1.863-7)), andother substantially similar income fromordinary and routine investmentsexcluded by section 512(b)(1). Therefore,interest received on a student loan isincludible in the gross investmentincome of a private foundation makingthe loan.

Net investment income is the amountby which the sum of gross investmentincome and the capital gain net income

exceeds the allowable deductionsdiscussed later. Tax-exempt interest ongovernmental obligations and relatedexpenses are excluded.

Include in column (b) all or part of anyamount from column (a) that applies toinvestment income. However, see theexception below, and the additional rulesfor specific line items.

Do not include in column (b) anyinterest, dividends, rents or royalties(and related expenses) that werereported on Form 990-T because theorganization had gross income of $1,000or more from a trade or businessunrelated to its charitable purpose.

For example, investment incomederived from debt-financed propertyunrelated to the organizations charitablepurpose and certain rents (and relatedexpenses) treated as unrelated trade orbusiness income should be reported onForm 990-T. Income from debt-financedproperty that is not taxed under section511 is taxed under section 4940. Thus, ifthe debt/basis percentage of adebt-financed property is 80%, only80% of the gross income (andexpenses) for that property is used tofigure the section 511 tax on Form990-T. The remaining 20% of the gross

income (and expenses) of that propertyis used to figure the section 4940 tax onnet investment income on Form 990-PF.(See Form 990-T and its instructions formore information.)

Line 2Certain contributions fromsplit-interest trusts described insection 4947(a)(2).The income portionof distributions from split-interest trustsis treated as investment income to theextent that it was earned on amountsplaced in trust after May 26, 1969.Include only that income portion of suchdistributions on line 2. That same figureis a part of line 1.

Line 3Interest on savings andtemporary cash investments.Enterthe amount of interest income shown incolumn (a). Do not include interest ontax-exempt government obligations.

Line 4Dividends and interest fromsecurities.Enter the amount ofdividend and interest income, andpayments on securities loans fromcolumn (a). Do not include interest ontax-exempt government obligations.

Line 5Gross rents.Enter the grossrental income from column (a).

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

Line 11Other income.Enter theamount of investment income includedin line 11, column (a). Include dividends,interest, rents, and royalties derived fromassets devoted to charitable activities,such as interest on student loans.

Line 12Total.Domesticorganizations, enter the total of lines 1through 11. Exempt foreign

organizations, enter the total of lines 3,4, 5, and 11 only.

Operating and AdministrativeExpenses

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

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

If any of the expenses listed in column(a) are paid or incurred for bothinvestment and charitable purposes,they must be allocated on a reasonablebasis between the investment activitiesand the charitable activities so that onlyexpenses from investment activities willappear in column (b). Examples ofallocation methods are given in theinstructions for Part IX-A.

Note: The deduction for expenses paid

or incurred in any tax year for producinggross investment income earnedincident to a charitable function cannotbe more than the amount of incomeearned from the function which isincludible as gross investment incomefor the year.

For example, if rental income isincidentally realized in 1992 from historicbuildings held open to the public,deductions for amounts paid or incurredin 1992 for the production of suchincome may not be more than theamount of rental income includible asgross investment income in column (b)for 1992.

Do not include on lines 13 through 23of column (b) any expenses paid orincurred that are allocable to tax-exemptinterest that is excluded from lines 3 and4.

Line 18Taxes.Enter only those taxesincluded in column (a) that are related toinvestment income taxable undersection 4940. Do not include the section4940 tax paid or incurred on netinvestment income or the section 511tax on unrelated business income. Salestaxes may not be deducted separately,

but must be treated as a part of the costof acquired property, or as a reductionof the amount realized on disposition ofthe property.

Line 19Depreciation anddepletion.For column (b), a deductionfor depreciation is allowed only forproperty used in connection with theproduction of investment income, andonly on the straight-line method ofcomputing depreciation.

A deduction for depletion is allowed,

but must be computed only under thecost depletion method.

The basis used in computingdepreciation and depletion is the basisdetermined under normal basis rules,without regard to the fair market valueon December 31, 1969, that may beused in determining gain or loss whenthe asset is sold.

Line 21.Only 80% of the expense forbusiness meals, etc., paid or incurred inconnection with travel, meetings, etc.,relating to the production of investmentincome, may be deducted in computingnet investment income (section 274 (n)).

Line 23Other expenses.Enter thepart of other expenses included incolumn (a) that applies to investmentincome.

A deduction for amortization isallowed only for an asset used for theproduction of investment income.

Net Amounts

Line 27bNet investment income.Domestic organizations, subtract line 26from line 12. Enter the difference.Exempt foreign organizations, enter theamount shown on line 12.

The amount entered is subject to theexcise tax imposed on privatefoundations (domestic organizations1% (4940(e)), 2% (4940(a) or (b)),exempt foreign organizations4%(4948)) as computed in Part VI. However,if the organization is a domesticorganization and line 26 is more thanline 12 (i.e., expenses exceed income),enter zero (not a negative amount).

Column (c)Adjusted Net Income

Note: Nonoperating PrivateFoundationsSee Special Rule1 belowto determine whether you are requiredto make any entries in column (c).

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

For column (c), include income fromcharitable functions, investmentactivities, short-term capital gains frominvestments, amounts set aside, andunrelated trade or business activities. Do


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not include gifts, grants or contributions,or long-term capital gains or losses.Nonoperating private foundations shouldfollow the special rules that apply.

Note: In completing column (c), includeon each line only that portion of theamount from column (a) that isapplicable to the adjusted net incomecomputation.

Private Operating Foundations.Allorganizations that claim status as privateoperating foundations under section

4942(j)(3) or 4942(j)(5) must complete alllines of column (c) that apply (accordingto the general rules for income andexpenses that apply to this column), thespecific line instructions for lines 3through 27c, and Special Rule 3 andExamples (1)and (2)given below.

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

1. If a nonoperating private foundationhas no income from charitable activitiesthat would be reportable on line 10 orline 11 of Part I, it does not have to

make any entries in column (c).2. If a nonoperating private foundationhas income from charitable activities, itmust report that income only on lines 10and/or 11 in column (c). Thesefoundations do not need to report otherkinds of income and expenses (such asinvestment income and expenses) incolumn (c).

3. The expenses attributable to eachspecific charitable activity, limited by theamount of income from the activity, mustbe reported in column (c) on lines 13through 26. If the expenses of anycharitable activity exceed the incomegenerated by that activity, only theexcess of these expenses over theincome should be reported in column(d). Note the examples given below.

Examples. (1)A charitable activitygenerated $5,000 of income and $4,000of expenses. Report all of the incomeand expenses in column (c) and none incolumn (d).

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

Line 3Interest on savings andtemporary cash investments.Enterthe amount of interest income shown incolumn (a). Include interest ontax-exempt government obligations.

Line 4Dividends and interest fromsecurities.Enter the amount ofdividends and interest income, andpayments on securities loans fromcolumn (a). Include interest ontax-exempt government obligations.

Line 5Gross rents.Enter the grossrental income from column (a).

Line 8Net short-term capital gain.

Note: Only private operating foundationsshould compute their short-term capitalgains and report them on line 8.Nonoperating private foundations shouldsee the above instructions.

Include only net short-term capitalgain for the year (assets sold orexchanged that were held not more thanone year). Do not include a netlong-term capital gain and loss or a netshort-term capital loss in column (c).

The net gain from the sale orexchange of depreciable property, orland used in a trade or business (section1231) and held for more than 1 year isnot included in the computation ofadjusted net income. The net loss fromsuch property, however, should beincluded on line 23, Other expenses.

In general, organizations may use thenet short-term capital gain reported inPart IV, line 3. However, because Part IVdoes not take into account capital gainsand losses related to debt-financedproperty, any short-term capital gain ondebt-financed property would have to be

taken into account in figuring the netshort-term capital gain reported on line8. See the instructions for Form 990-Tfor definition of debt-financed property.

Line 9Income modifications.Include on this line:

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

2. Amounts received or accrued fromthe sale or other disposition of propertyto the extent that the acquisition of the

property was considered a qualifyingdistribution for any tax year.

3. Any amount set aside for a specificproject (see explanation in theinstructions for Part XII) that was notnecessary for the purposes for which itwas set aside.

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

5. Amounts treated in a preceding taxyear as qualifying distributions to:

a. A private foundation, which is not aprivate operating foundation, if the

amounts were not redistributed by thegrantee organization by the close of itstax year following the year in which itreceived the funds, or

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

Line 10Gross profit on sales ofinventory.Enter the gross profit from

sales of inventory as shown in column(a), line 10c.

Line 11Other income.Include allother items includible in adjusted netincome not covered elsewhere in column(c).


Deductible expenses include the partof a private foundations operatingexpenses that is paid or incurred to

produce or collect gross incomereported on lines 311 of column (c). Ifonly part of the property producesincome includible in column (c),deductions such as interest, taxes, andrent must be divided between thecharitable and noncharitable uses of theproperty. If the deductions for propertyused for a charitable, educational, orother similar purpose are more than theincome from the property, the excesswill not be allowed as a deduction butmay be treated as a qualifyingdistribution in Part I, column (d). SeeExamples (1)and (2)given on this page.

Line 13Compensation of officers,

etc.Enter the portion of thecompensation included in column (a)that was paid or incurred to produce orcollect income included in column (c).

Line 18Taxes.Enter only those taxesincluded in column (a) that relate toincome included in column (c). Do notinclude any excise tax paid or incurredon the net investment income (as shownin Part VI), or any income tax paid orincurred on income reported on Form990-T.

Line 19Depreciation anddepletion.A deduction for depreciationis allowed only for property used in the

production of income reported in column(c) and only using the straight linemethod of computing depreciation.

A deduction for depletion is allowedbut must be figured only using the costdepletion method.

In figuring depreciation and depletion,determine the basis under normal basisrules, without regard to the special rulesfor using the fair market value onDecember 31, 1969, that relate only togain or loss on dispositions for purposesof the tax on net investment income.

Line 21Travel, conferences, andmeetings.Enter the total amount of

expenses paid or incurred by officers,employees, or others for travel,conferences, meetings, etc., related toincome included in column (c).

Line 22Printing and publications.Enter the total amount paid or incurredfor printing and distributing newsletters,magazines, directories, etc., publishedby the organization, and subscriptioncosts for magazines or newspapers thatrelate to income included in column (c).

Line 23Other expenses.In additionto the applicable portion of expenses


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from column (a), include any net lossfrom the sale or exchange of land ordepreciable property that was held formore than 1 year and used in a trade orbusiness.

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

Net Amounts

Line 27cAdjusted net income.

Subtract line 26, column (c) from line 12,column (c) and enter the difference.

Column (d)Disbursements forCharitable Purposes


Note: For amounts entered in column(d), use the cash receipts anddisbursements method of accounting,regardless of the method of accountingused in keeping the books of thefoundation.

Do not include in column (d) anyamount or part of an amount that is

included in column (b) or (c).Expenses entered in column (d) relate

to activities that constitute the charitablepurpose of the foundation. Include onlines 13 through 25 all expenses,including necessary and reasonableadministrative expenses, paid by thefoundation for religious, charitable,scientific, literary, educational, or otherpublic purposes, or for the prevention ofcruelty to children or animals.

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

Example: An educational seminarproduced $1,000 in income which wasreportable in columns (a) and (c).Expenses attributable to this charitableactivity were $1,900. Only $1,000 ofexpense would be reported in column (c)and the remaining $900 in expensewould be reported in column (d).

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

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

For purposes of column (d), include adistribution of property at the fair marketvalue on the date the distribution wasmade.

If you want to provide an analysis ofdisbursements that is more detailed thancolumn (d), you may attach a scheduleinstead of completing lines 13 through

25. The schedule must include all thespecific items of lines 13 through 25,and the total from the schedule must beentered in column (d), line 26.

Line 18Taxes.Do not include anyexcise tax paid on investment income(as reported in Part VI of this return orthe equivalent part of a return for prioryears) unless the organization is claimingstatus as a private operating foundationand completes Part XIV.

Line 25Contributions, gifts, grants

paid.Enter on line 25 all contributions,gifts, and grants the foundation paidduring the year.

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

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

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

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

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

When space is provided to the left ofcolumn (a) for reporting receivables andthe related allowance for doubtfulaccounts or depreciable assets andaccumulated depreciation, enter the

end-of-year figures. Foundations that had assets of $5,000or more at any time during the yearmust complete all of columns (a), (b),and (c).

Foundations with less than $5,000 oftotal assets at all times during the yearmust complete all of columns (a) and (b),and only line 16 of column (c).

Line 1Cashnon-interest-bearing.Enter the amount of cash ondeposit in checking accounts, depositsin transit, change funds, petty cash

funds, or any other non-interest-bearingaccount. Do not include advances toemployees or officers or refundabledeposits paid to suppliers or others.

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

less than 1 year.Line 3Accounts receivable.Enterthe total accounts receivable (reducedby the corresponding allowance fordoubtful accounts) from the sale ofgoods and/or the performance ofservices. Claims against vendors orrefundable deposits with suppliers orothers may be reported here if notsignificant in amount. (Otherwise, reportthem on line 15, Other assets.) Anyreceivables due from officers, directors,trustees, foundation managers, or otherdisqualified persons must be reportedon line 6. Receivables (including loansand advances) due from other

employees should be reported on line15.

Line 4Pledges receivable.Enter thetotal pledges receivable recorded as ofthe beginning and end of the year,reduced by the amount of pledgesestimated to be uncollectible.

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

Line 6Receivables due from officers,directors, trustees, and otherdisqualified persons.Enter here (and

on an attached schedule describedbelow) all receivables due from officers,directors, trustees, foundation managers,and other disqualified persons and allsecured and unsecured loans (includingadvances) to such persons. Disqualifiedperson is defined under C. Definitions.

Attached schedules.(a) On therequired schedule, report each loanseparately, even if more than one loanwas made to the same person, or thesame terms apply to all loans made.

Salary advances and other advancesfor the personal use and benefit of therecipient and receivables subject to

special terms or arising fromtransactions not functionally related tothe foundations charitable purposesmust be reported as separate loans foreach officer, director, etc.

(b) Receivables that are subject to thesame terms and conditions (includingcredit limits and rate of interest) asreceivables due from the general publicand that arose in connection with anactivity functionally related to thefoundations charitable purposes may bereported as a single total for all the


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officers, directors, etc. Travel advancesmade for official business of theorganization may also be reported as asingle total.

For each outstanding loan or otherreceivable that must be reportedseparately, the attached schedule shouldshow the following information(preferably in columnar form):

(a) Borrowers name and title.

(b) Original amount.

(c) Balance due.

(d) Date of note.

(e) Maturity date.

(f) Repayment terms.

(g) Interest rate.

(h) Security provided by the borrower.

(i) Purpose of the loan.

(j) Description and fair market value ofthe consideration furnished by thelender (for example, cash$1,000; or100 shares of XYZ, Inc., commonstock $9,000).

The above detail is not required forreceivables or travel advances that maybe reported as a single total (seeinstruction (b) above); however, reportand identify those totals separately inthe attachment.

Line 7Other notes and loansreceivable.Enter the combined total ofnotes receivable and net loansreceivable.

Notes receivable.Enter the amountof all notes receivable not listed on line6 and not acquired as investments.Attach a schedule similar to that calledfor in the instructions for line 6. Theschedule should also identify therelationship of the borrower to anyofficer, director, trustee, foundation

manager, or other disqualified person.For a note receivable from any section

501(c)(3) organization, list only the nameof the borrower and the balance due onthe required schedule.

Loans receivable.Enter the grossamount of loans receivable, minus theallowance for doubtful accounts fromthe normal activities of the filingorganization (such as scholarship loans).An itemized list of these loans is notrequired but attach a schedule showingthe total amount of each type ofoutstanding loan. Report loans toofficers, directors, trustees, foundation

managers, or other disqualified personson line 6 and loans to other employeeson line 15.

Line 8Inventories for sale or use.Enter the amount of materials, goods,and supplies purchased or manufacturedby the organization and held for sale oruse in some future period.

Line 9Prepaid expenses andd

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US Internal Revenue Service: i990pf--1992

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