Other section 4947(a)(1) nonexempt charitable trusts.

Section 4947(a)(1) nonexempt charitable trusts not treated as private foundations don't file Form 990-PF. However, they may need to file Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax. With either of these forms, the trust must also file Schedule A (Form 990 or 990-EZ), Public Charity Status and Public Support, and other required schedules. See the Form 990 and Form 990-EZ instructions.

How to avoid filing an incomplete return.

Form 720, Quarterly Federal Excise Tax Return.

In addition to various federal excise taxes that are paid with the filing of this form, the Patient-Centered Outcomes Research Institute fee that is imposed on health insurers and employers who maintain self-insured health plans is payable annually and reported on the Form 720 that is filed for the second quarter of each year, which is due no later than July 31 of each calendar year.

Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation.

U.S. persons (including domestic corporations and trusts) must file Form 926 to report certain transfers of tangible or intangible property to a foreign corporation, as required by section 6038B.

Form 990-T, Exempt Organization Business Income Tax Return.

Every organization exempt from income tax under section 501(a) with total gross income of $1,000 or more from all trades or businesses unrelated to the organization's exempt purpose must file Form 990-T. The form is also used by tax-exempt organizations to report other additional taxes, including the additional tax figured in Part IV of Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.

Form 990-W, Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations.

Use of this form is optional. It is provided only to aid you in determining your tax liability. You must use electronic funds transfer to make all depository tax deposits. See P. Tax Payment Methods for Domestic Private Foundations, later, for information about electronic deposits.

Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

This form for recognition of exemption from federal income tax under section 501(c)(3) must be used by private foundations that don't qualify to use Form 1023-EZ or that are also requesting advance approval of individual grant procedures or recognition as an operating foundation. Form 8940 may also be used for requesting advance approval of individual grant procedures or recognition as an operating foundation.

Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

Certain small private foundations may apply for recognition of exemption under section 501(c)(3) using this form instead of Form 1023.

Form 1041, U.S. Income Tax Return for Estates and Trusts.

Required of section 4947(a)(1) nonexempt charitable trusts that also file Form 990-PF. However, if the trust doesn't have any taxable income under the income tax provisions (subtitle A of the Code), it may use the filing of Form 990-PF to satisfy its Form 1041 filing requirement under section 6012. If this condition is met, check the box on line 15, Part VI-A, of Form 990-PF and don't file Form 1041.

Form 1041-ES, Estimated Income Tax for Estates and Trusts.

Used to make estimated tax payments.

Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

Used to transmit Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G to the IRS. Don’t use it to transmit electronically.

Form 1098 series.

Information returns to report mortgage interest, student loan interest, qualified tuition and related expenses, and a contribution of a qualified vehicle that has a claimed value of more than $500.

Form 1099 series.

Information returns to report acquisitions or abandonments of secured property; proceeds from broker and barter exchange transactions; cancellation of debt; dividends and distributions; certain government and state qualified tuition program payments; taxable distributions from cooperatives; interest payments; payments of long-term care and accelerated death benefits; miscellaneous income payments; nonemployee compensation; distributions from an HSA, Archer MSA or Medicare Advantage MSA; original issue discount; distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc.; and proceeds from real estate transactions. Also, use certain of these returns to report amounts that were received as a nominee on behalf of another person.

Form 1120, U.S. Corporation Income Tax Return.

Filed by nonexempt taxable private foundations that have taxable income under the income tax provisions (subtitle A of the Code). Form 990-PF is also filed by these taxable foundations.

Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.

Section 501(c) organizations must file Form 1120-POL if they are treated as having political organization taxable income under section 527(f)(1).

Form 1128, Application To Adopt, Change, or Retain a Tax Year.

Form 1128 is used to request approval from the IRS to change a tax year or to adopt or retain a certain tax year.

Form 2220, Underpayment of Estimated Tax by Corporations.

Form 2220 is used by corporations and trusts filing Form 990-PF to see if the foundation owes a penalty and to figure the amount of the penalty. Generally, the foundation isn't required to file this form because the IRS can figure the amount of any penalty and bill the foundation for it. However, complete and attach Form 2220 even if the foundation doesn't owe the penalty if:

Form 2848, Power of Attorney and Declaration of Representative.

Used to authorize an individual to represent you in matters before the IRS, such as the filing of Form 1023.

Form 3115, Application for Change in Accounting Method.

Used to request a change in either an overall method of accounting or the accounting treatment of any item, in situations not covered by Rev. Proc. 85-58, 1985-18 I.R.B. 5.

Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.

Used by U.S. persons to report certain transactions with foreign trusts, ownership of foreign trusts under the grantor trust rules of sections 671–679, and receipt of certain large gifts or bequests from certain foreign persons.

Form 4506, Request for Copy of Tax Return.

Used by the organization or designated third party to get a complete copy of the organization's return.

Form 4506-A, Request for Public Inspection or Copy of Exempt or Political Organization IRS Form.

Used to inspect or request a copy of an exempt or political organization's return, report, notice, or exemption application by the public or the organization.

Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.

Is primarily used to determine the excise taxes imposed on:

Form 5471, Information Return of U.S. Persons for Certain Foreign Corporations.

Used by certain U.S. persons that are shareholders in certain foreign corporations, in compliance with sections 6038 and 6046.

Form 5500, Annual Return/Report of Employee Benefit Plan.

Used to report information concerning employee benefit plans and Direct Filing Entities.

Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.

Used by nonexempt charitable trusts and taxable foundations to request extension of time to file income tax returns.

Form 8282, Donee Information Return.

Required of the donee of “charitable deduction property” that sells, exchanges, or otherwise disposes of the property within 3 years after the date it received the property. Also required of any successor donee that disposes of charitable deduction property within 3 years after the date the donor gave the property to the original donee. It doesn't matter who gave the property to the successor donee. It may have been the original donee or another successor donee.

Form 8283, Noncash Charitable Contributions.

Donors must file Form 8283 to report information about certain noncash charitable contributions in order to substantiate a charitable deduction under section 170. The donor may need to obtain an acknowledgement by the donee foundation in Part IV of Form 8283.

Form 8275, Disclosure Statement.

Taxpayers and tax return preparers should attach this form to Form 990-PF to disclose items or positions (except those contrary to a regulation—see Form 8275-R below) that aren't otherwise adequately disclosed on the tax return. The disclosure is made to avoid parts of the accuracy-related penalty imposed for substantial understatement of tax or disregard of rules or regulations language in 1.6662-3(b)(2) and 1.6662-3(c)(2). See also IRM 20.1.5.8.2.1. Form 8275 is also used for disclosures relating to preparer penalties for understatements due to unrealistic positions or for willful or reckless conduct.

Form 8275-R, Regulation Disclosure Statement.

Use this form to disclose any item on a tax return for which a position has been taken that is contrary to Treasury regulations.

Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

Used to report cash amounts in excess of $10,000 received in a single transaction (or in two or more related transactions) in the course of a trade or business (as defined in section 162).

Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.

A U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC) may need to file. But see Regulations section 1.1291–1(e) with respect to tax-exempt foundations.

Form 8821, Tax Information Authorization.

Used to authorize an individual or organization to inspect and/or receive your confidential tax information on designated matters.

Form 8822-B, Change of Address or Responsible Party—Business.

Used by taxpayers to notify the IRS of changes in business mailing address, business location, or responsible party.

Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.

Used by U.S. persons to report information required under section 6038 (controlled foreign partnerships), section 6038B (transfers to foreign partnerships), or section 6046A (acquisitions, dispositions, and changes in foreign partnership interests).

Form 8868, Application for Extension of Time To File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans.

Used by an exempt organization to request an automatic 6-month extension of time to file its return or, by a Form 5330 filer to request an extension of up to 6 months to file a return for excise taxes related to employee benefit plans.

Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts.

Used to identify those personal benefit contracts for which funds were transferred to the organization, directly or indirectly, as well as the transferors and beneficiaries of those contracts.

Form 8886, Reportable Transaction Disclosure Statement.

Used to disclose information for each reportable transaction in which the organization participated, including but not limited to a prohibited tax shelter transaction. Exempt organizations may also be required to file Form 8886-T in such case.

Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction.

Used by an exempt organization to disclose that it was a party to a prohibited tax shelter transaction.

Form 8899, Notice of Income From Donated Intellectual Property.

Used to report income from qualified intellectual property.

Form 8940, Request for Miscellaneous Determination.

Used by private foundations, government entities requesting voluntary termination of exempt status under section 501(c)(3), and nonexempt charitable trusts to obtain certain determinations including advance approval of individual grant procedures (section 4945(g)), advance approval of certain set-asides (section 4942(g)(2)), advance approval of voter registration activities (section 4945(f)), and termination of private foundation status (section 507(b)(1)(B)). Nonexempt charitable trusts also file this form to request an initial determination under section 509(a)(3). Canadian registered charities file this form to be listed as an organization described in section 501(c)(3) on IRS.gov or request classification as a public charity rather than a private foundation.

FinCEN Form 114, Report of Foreign Bank and Financial Accounts.

Used by organizations formed or organized in or under the laws of the United States to report a financial interest in or signature authority over a foreign financial account if the aggregate value exceeds $10,000 at any time during the calendar year.

Determine state filing requirements.

Consult the appropriate officials of all states and other jurisdictions in which the organization does business to determine their specific filing requirements. “Doing business” in a jurisdiction may include any of the following.

Monetary tests may differ.

Some or all of the dollar limitations that apply to Form 990-PF when filed with the IRS may not apply when using Form 990-PF instead of state or local report forms. IRS dollar limitations that may not meet some state requirements are the $5,000 total assets minimum that requires completion of Part II, column (c), and Part XIV; and the $50,000 minimum for listing the highest paid employees and for listing professional fees in Part VII.

Additional information may be required.

State and local filing requirements may require attaching to Form 990-PF one or more of the following.

Each jurisdiction may require the additional material to be presented on forms they provide. The additional material doesn't have to be submitted with the Form 990-PF filed with the IRS.

If required information isn't provided to a state, the organization may be asked by the state to provide it or to submit an amended return even if the Form 990-PF is accepted by the IRS as complete.

Amended returns.

If the organization submits supplemental information or files an amended Form 990-PF with the IRS, it must also submit a copy of the information or amended return to any state with which it filed a copy of Form 990-PF.

Method of accounting.

Many states require that all amounts be reported based on the accrual method of accounting.

Time for filing may differ.

The time for filing Form 990-PF with the IRS may differ from the time for filing state reports.

Other requirements.

If the Attorney General or other appropriate state official of any state requests a copy of the annual return, the foundation managers must comply with the request.

Exceptions.

These rules don't apply to any foreign foundation that, from the date of its creation, has received at least 85% of its support (excluding gross investment income) from sources outside the United States. See S. Organizations Organized or Created in a Foreign Country, later, for other exceptions that affect this type of organization.

Coordination with state reporting requirements.

If the foundation managers submit a copy of Form 990-PF and Form 4720 (if applicable) to a state Attorney General to satisfy a state reporting requirement, they don't have to furnish a second copy to that Attorney General to comply with the Internal Revenue Code requirements discussed in this section.

If there is a state reporting requirement to file a copy of Form 990-PF with a state official other than the Attorney General (for instance, the Secretary of State), then the foundation managers must also send a copy of the Form 990-PF and Form 4720 (if applicable) to the Attorney General of that state.

Calendar or fiscal year.

File the 2023 return for the calendar year 2023 or fiscal year beginning in 2023. If the return is for a fiscal year, fill in the beginning and ending dates of the tax year in the spaces at the top of the return.

Short period.

For an initial or final return or for a short tax year resulting from a change in accounting period, the 2023 form may also be used as the return for a short period (less than 12 months) ending November 30, 2023, or earlier. The 2023 form may also be used for a short period beginning after November 30, 2023, and ending before December 31, 2024 (not on or after December 31, 2024). Note on the short period return the change of accounting period.

Accounting period change.

In general, to change its accounting period, the organization must file Form 990-PF by the due date for the short period resulting from the change. At the top of this short period return, write “Change of Accounting Period.”

If the organization has previously changed its accounting period within the 10-calendar-year period that includes the beginning of the short period resulting from the current change in accounting period, and it had a Form 990-PF filing requirement at any time during that 10-year period, it must also file Form 1128, Application to Adopt, Change, or Retain a Tax Year, with the short-period return. See Rev. Proc. 85-58, 1985-2 C.B. 740, 1985-18 I.R.B. 5.

Accounting method change.

Once a taxpayer, including a tax-exempt entity, adopts an accounting method for federal income tax purposes, the taxpayer must generally request the IRS’s consent before it can change its accounting method (even if the year in which the taxpayer seeks to make the change is a year in which it generates only tax-exempt income or is otherwise not taxed on its taxable income). In most cases, a taxpayer requests consent to change an accounting method by filing a Form 3115, Application for Change in Accounting Method. See Rev. Proc. 2015-13, or any successor, for general procedures for obtaining consent to change an accounting method.

Depending upon the specific accounting method change being requested, the taxpayer may be able to request “automatic” consent. This means that as long as the taxpayer follows the applicable procedures, the taxpayer does not have to wait for formal approval by the IRS before applying the new accounting method. See Rev. Proc. 2019-43, 2019-48 I.R.B. 1107, as modified by Rev. Proc. 2021-34, 2021-35 I.R.B. 337, or its successor, for a list of accounting method changes that generally qualify for automatic consent.

For example, a tax-exempt entity that has adopted an accounting method for an item of income from an unrelated trade or business must generally request consent before it can change its method of accounting for that item in any subsequent year. This is true regardless of whether gross income from the unrelated trade or business is greater than or equal to $1,000 in such subsequent year.

Alternatively, if a taxpayer, including a tax-exempt entity, has not yet adopted an accounting method for an item of income or deduction, a change in how the entity reports the item is not a change in accounting method. In this case, the procedures applicable to requests for accounting method changes (for example, the requirement to file a Form 3115) are not applicable.

Thus, a tax-exempt entity that has never taken into account an item of income or deduction in determining taxable income does not have to request consent to change its method of reporting that item on Form 990-PF. Additionally, a tax-exempt entity that has never been subject to federal income tax on an item of income or deduction but that is required to file a Form 990-T solely due to owing a section 6033(e)(2) proxy tax does not have to request consent to change its method for reporting the item.

Exception.

Complete Part I, column (d), on the cash receipts and disbursements method of accounting.

State reporting requirements.

See Amended returns, earlier.

Need a copy of an old return or form?

Use Form 4506 to obtain a copy of a previously filed return. You can download items from the IRS website at IRS.gov/FormsPubs.

Against the organization.

If an organization doesn't file timely and completely, or doesn't furnish the correct information, it must pay $20 for each day the failure continues ($120 a day if it is a large organization), unless it can show that the failure was due to reasonable cause. The maximum penalty for each return won't exceed the smaller of $12,000 ($60,000 for a large organization) or 5% of the gross receipts of the organization for the year.

Against the responsible person.

The IRS will make written demand that the delinquent return be filed or the information furnished within a reasonable time after the mailing of the notice of the demand. The person failing to comply with the demand on or before the date specified will have to pay $10 for each day the failure continues, unless there is reasonable cause. The maximum penalty imposed on all persons for any one return is $6,000. If more than one person is liable for any failures, all such persons are jointly and severally liable for such failures. See section 6652(c) for further information.

Other penalties.

Because this return also satisfies the filing requirements of a tax return under section 6011 for the tax on investment income imposed by section 4940 (or 4948 if an exempt foreign organization), the penalties imposed by section 6651 for not filing a return (without reasonable cause) also apply.

There are also criminal penalties for willful failure to file and for filing fraudulent returns and statements. See sections 7203, 7206, and 7207.

Most tax-exempt organizations, other than churches, are required to file an annual Form 990, 990-EZ, 990-PF, or 990-N e-Postcard with the IRS. If an organization fails to file an annual return or notice for 3 consecutive years, it will automatically lose its tax-exempt status. A private foundation that loses its exemption must file income tax returns and pay income taxes and must file Form 990-PF as a taxable private foundation. For details, go to IRS.gov/EO.

Estimated tax penalty.

The section 6655 penalty for failure to pay estimated tax applies to the tax on net investment income of domestic private foundations and section 4947(a)(1) nonexempt charitable trusts. The penalty also applies to any tax on unrelated business income of a private foundation. Generally, if a private foundation's tax liability is $500 or more and it didn't make the required payments on time, then it is subject to the penalty.

For more details, see the discussion of Form 2220, Underpayment of Estimated Tax by Corporations, in D. Other Forms You May Need To File, earlier.

A private foundation is also subject to the section 6656 penalty for failure to deposit employment taxes when due. See sections 11 and 12 of Pub. 15 (Circular E), Employer’s Tax Guide, for details.

Penalty.

A foundation that doesn't pay the proper estimated tax when due may be subject to the estimated tax penalty for the period of the underpayment. See sections 6655(b) and (d) and the Form 2220 instructions for further information.

With regard to figuring and paying employment taxes, see Pub. 15 (Circular E).

Depositing on time.

For deposits made by EFTPS to be on time, the foundation must generally submit the transaction at least 1 business day before the date the deposit is due. See Pub. 15 (Circular E) for information on a same-day payment option under some circumstances.

Additional requirements.

For a complete corporate liquidation or trust termination, attach a statement as to whether a final distribution of assets was made and the date it was made (if applicable).

Also, an organization must indicate:

Relief from public inspection requirements.

If the organization has terminated its private foundation status under section 507(b)(1)(A), it doesn't have to comply with the notice and public inspection requirements of the return for the termination year.

Filing date.

See J. When and How To File, earlier, for the filing date.

Definitions.

The term “substantial contraction” includes any partial liquidation or any other significant disposition of assets. However, this doesn't include transfers for full and adequate consideration or distributions of current income.

A significant disposition of assets doesn't include any disposition for a tax year if:

The facts and circumstances of the particular case will determine whether a significant disposition has occurred through a series of related dispositions. Ordinarily, a distribution described in section 170(b)(1)(F)(ii) (relating to private foundations making qualifying distributions out of corpus equal to 100% of contributions received during the foundation's tax year) won't be taken into account as a significant disposition of assets. See Regulations section 1.170A-9(h)(2).

Rounding off to whole dollars.

You must round off cents to whole dollars on your return and schedules. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Currency and language requirements.

Report all amounts in U.S. dollars. State the conversion rate used. Report all items in total, including amounts from both U.S. and non-U.S. sources. All information must be in English.

Attachments.

Use the schedules on Form 990-PF. If you need more space, use attachments that are the same size as the printed forms.

On each attachment, write:

Line 1. Cash—Non-interest-bearing.

Enter the amount of cash on deposit in checking accounts, deposits in transit, change funds, petty cash funds, and any other non-interest-bearing account. Don’t include advances to employees or officers or refundable deposits paid to suppliers or others.

Line 2. Savings and temporary cash investments.

Enter the total of cash in savings or other interest-bearing accounts and temporary cash investments, such as money market funds, commercial paper, certificates of deposit, and U.S. Treasury bills or other governmental obligations that mature in less than 1 year.

Line 3. Accounts receivable.

On the dashed lines to the left of column (a), enter the year-end figures for total accounts receivable and allowance for doubtful accounts from the sale of goods and/or the performance of services. In columns (a), (b), and (c), enter net amounts (total accounts receivable reduced by the corresponding allowance for doubtful accounts). Claims against vendors or refundable deposits with suppliers or others may be reported here if not significant in amount. (Otherwise, report them on line 15.) Any receivables due from officers, directors, trustees, foundation managers, or other disqualified persons must be reported on line 6. Report receivables (including loans and advances) due from other employees on line 15.

Line 4. Pledges receivable.

On the dashed lines to the left of column (a), enter the year-end figures for total pledges receivable and allowance for doubtful accounts (pledges estimated to be uncollectible). In columns (a), (b), and (c), enter net amounts (total pledges receivable reduced by the corresponding allowance for doubtful accounts).

Line 5. Grants receivable.

Enter the total grants receivable from governmental agencies, foundations, and other organizations as of the beginning and end of the year.

Line 6. Receivables due from officers, directors, trustees, and other disqualified persons.

Enter here (and on an attached schedule described below) all receivables due from officers, directors, trustees, foundation managers, and other disqualified persons and all secured and unsecured loans (including advances) to such persons. Don’t adjust the amounts reported by any amount(s) estimated to be uncollectible. “Disqualified person” is defined in C. Definitions, earlier.

Line 7. Other notes and loans receivable.

On the dashed lines to the left of column (a), enter the combined total year-end figures for other notes receivable and loans receivable and the allowance for doubtful accounts.

Line 8. Inventories for sale or use.

Enter the amount of materials, goods, and supplies purchased or manufactured by the organization and held for sale or use in some future period.

Line 9. Prepaid expenses and deferred charges.

Enter the amount of short-term and long-term prepayments of expenses attributable to one or more future accounting periods. Examples include prepayments of rent, insurance, and pension costs, and expenses incurred in connection with a solicitation campaign to be conducted in a future accounting period.

Lines 10a, b, and c. Investments— government obligations, corporate stock and bonds.

Enter the book value (which may be market value) of these investments.

Attach a schedule that lists each security held at the end of the year and shows whether the security is listed at cost (including the value recorded at the time of receipt in the case of donated securities) or end-of-year market value. Don’t include amounts shown on line 2. Governmental obligations reported on line 10a are those that mature in 1 year or more. Debt securities of the U.S. Government may be reported as a single total rather than itemized. Obligations of state and municipal governments may also be reported as a lump-sum total. Don’t combine U.S. Government obligations with state and municipal obligations on this schedule.

Line 11. Investments—land, buildings, and equipment.

On the first dashed line to the left of column (a), enter the year-end book value (excluding accumulated depreciation), and on the second dashed line, enter the accumulated depreciation of all land, buildings, and equipment held for investment purposes, such as rental properties. In columns (a) and (b), enter the book value of all land, buildings, and equipment held for investment less accumulated depreciation. In column (c), enter the fair market value of these assets. Attach a schedule listing these investment fixed assets held at the end of the year and showing, for each item or category listed, the original cost or other basis, accumulated depreciation, and ending book value.

Line 12. Investments—mortgage loans.

Enter the amount of mortgage loans receivable held as investments but don't include program-related investments (see the instructions for line 15).

Line 13. Investments—other.

Enter the amount of all other investment holdings not reported on lines 10 through 12. Attach a schedule listing and describing each of these investments held at the end of the year. Show the book value for each and indicate whether the investment is listed at cost or end-of-year market value. Don’t include program-related investments (see the instructions for line 15).

Line 14. Land, buildings, and equipment.

On the first dashed line to the left of column (a), enter the year-end book value (excluding accumulated depreciation), and on the second dashed line, enter the accumulated depreciation of all land, buildings, and equipment owned by the organization and not held for investment. In columns (a) and (b), enter the book value of all land, buildings, and equipment not held for investment less accumulated depreciation. In column (c), enter the fair market value of these assets. Include any property, plant, and equipment owned and used by the organization to conduct its charitable activities. Attach a schedule listing these fixed assets held at the end of the year and showing the original cost or other basis, accumulated depreciation, and ending book value of each item or category listed.

Line 15. Other assets.

List and show the book value of each category of assets not reportable on lines 1 through 14. Attach a separate schedule if more space is needed.

One type of asset reportable on line 15 is program-related investments. These are investments made primarily to accomplish a charitable purpose of the filing organization with no significant purpose to produce income.

Line 16. Total assets.

All filers must complete line 16 of columns (a), (b), and (c). These entries represent the totals of lines 1 through 15 of each column. However, foundations that have assets of less than $5,000 per books at all times during the year need not complete lines 1 through 15 of column (c).

The column (c) amount is also entered on the entry space for Item I in the Heading section on page 1.

Line 17. Accounts payable and accrued expenses.

Enter the total of accounts payable to suppliers and others and accrued expenses, such as salaries payable, accrued payroll taxes, and interest payable.

Line 18. Grants payable.

Enter the unpaid portion of grants and awards the organization has made a commitment to pay other organizations or individuals, whether or not the commitments have been communicated to the grantees.

Line 19. Deferred revenue.

Include revenue that the organization has received but not yet earned as of the balance sheet date under its method of accounting.

Line 20. Loans from officers, directors, trustees, and other disqualified persons.

Enter the unpaid balance of loans received from officers, directors, trustees, and other disqualified persons. For loans outstanding at the end of the year, attach a schedule that shows (for each loan) the name and title of the lender and the information listed in items 2 through 10 of the instructions for line 6, earlier.

Line 21. Mortgages and other notes payable.

Enter the amount of mortgages and other notes payable at the beginning and end of the year. Attach a schedule showing, as of the end of the year, the total amount of all mortgages payable and, for each nonmortgage note payable, the name of the lender and the other information specified in items 2 through 10 of the instructions for line 6, earlier. The schedule should also identify the relationship of the lender to any officer, director, trustee, foundation manager, or other disqualified person.

Line 22. Other liabilities.

List and show the amount of each liability not reportable on lines 17 through 21. Attach a separate schedule if more space is needed.

Reportable gains and losses.

Capital gains or losses include gains or losses from the sale or other disposition of property that:

However, don't include gains or losses for any portion of property if:

Capital gains and losses may arise from the deemed sale of section 1256 contracts (marked to market).

Line 1.

“Political purposes” include, but aren't limited to, directly or indirectly accepting contributions or making payments to influence the selection, nomination, election, or appointment of any individual to any federal, state, or local public office or office in a political organization, or the election of Presidential or Vice Presidential electors, whether or not the individual or electors are actually selected, nominated, elected, or appointed.

Line 3.

A “conformed copy” of an organizational document is one that agrees with the original document and all its amendments. If copies aren't signed, attach a written declaration signed by an officer authorized to sign for the organization, certifying that they are complete and accurate copies of the original documents.

Note.

If you are filing electronically, send a conformed copy of the changes to the IRS at the address listed in U. Section 507(b)(1)(B) Termination Notice and Filing Requirements, earlier.

Line 4a.

See Pub. 598, Tax on Unrelated Business Income of Exempt Organizations, for a description of unrelated business income and Form 990-T filing requirements for foundations having such income.

Line 6.

For a private foundation to be exempt from income tax, its governing instrument must include provisions that require it to act or refrain from acting so as not to engage in an act of self-dealing (section 4941) or subject the foundation to the taxes imposed by sections 4942 (failure to distribute income), 4943 (excess business holdings), 4944 (investments that jeopardize charitable purpose), and 4945 (taxable expenditures). A private foundation may satisfy these section 508(e) requirements either by express language in its governing instrument or by application of state law that imposes the above requirements on the foundation or treats these requirements as being contained in the governing instrument. If an organization claims it satisfies the requirements of section 508(e) by operation of state law, the provisions of state law must effectively impose the section 508(e) requirements on the organization. See Rev. Rul. 75-38, 1975-1 C.B. 161, for a list of states with legislation that satisfies the requirements of section 508(e).

However, if the state law doesn't apply to a governing instrument that contains mandatory directions conflicting with any of its requirements and the organization has such mandatory directions in its governing instrument, then the organization hasn't satisfied the requirements of section 508(e) by the operation of that legislation.

Line 6 doesn't apply to foreign foundations described in section 4948(b).

Line 8a.

In the space provided, list all states:

Attach a separate list if you need more space.

Line 8 doesn't apply to foreign foundations described in section 4948(b).

Line 8b.

If the organization hasn't furnished a copy of its Form 990-PF to the Attorney General (or the person designated) of each state required to be listed in the response to line 8a, then explain in an attached statement why not. If the Attorney General (or the person designated) won't accept such filings, then so state.

Line 9.

If the organization claims status as a private operating foundation for 2023 and, in fact, meets the private operating foundation requirements for that year (as reflected in Part XIII), any excess distributions carryover from 2022 or prior years may not be carried over to 2023 or any year after 2023 even if it doesn't meet the private operating foundation requirements. See Part XII. Undistributed Income, later.

Line 10. Substantial contributors.

If you answer “Yes,” attach a schedule listing the names and addresses of all persons who became substantial contributors during the year.

The term “substantial contributor” means any person whose contributions or bequests, during the current tax year and prior tax years, total more than $5,000 and are more than 2% of the total contributions and bequests received by the foundation from its creation through the close of its tax year. An individual is treated as making all contributions and bequests made by the individual's spouse (section 507(d)(2)(B)(iii)). In the case of a trust, the term “substantial contributor” also means the creator of the trust (section 507(d)(2)(A)).

The term “person” includes individuals, trusts, estates, partnerships, associations, corporations, and other exempt organizations.

Each contribution or bequest must be valued at fair market value on the date it was received.

Any person who is a substantial contributor on any date will remain a substantial contributor for all later periods.

However, a person will cease to be a substantial contributor with respect to any private foundation if:

The term “related person” includes any other person who would be a disqualified person because of a relationship with the substantial contributor (section 4946). When the substantial contributor is a corporation, the term also includes any officer or director of the corporation. The term “substantial contributor” doesn't include public charities (organizations described in section 509(a)(1), (2), or (3)).

A foreign foundation described in section 4948(b) should report only substantial contributors that are U.S. citizens.

Line 11. Controlled entities.

Answer “Yes” if at any time during the tax year the foundation owned a controlled entity. A controlled entity is an entity in which the foundation owns more than 50% of the:

The foundation must apply section 318 in determining its ownership of stock in a corporation and use similar principles in determining its ownership interests in other entities.

Attached schedule for transfers to controlled entities.

If at any time during the tax year, the foundation made any loans or transfers to a corporation, partnership, or other entity, which it controlled within the meaning of section 512(b)(13), attach a schedule using the format provided in the sample schedule, Line 11—Example A Statement of Information Regarding Transfers to a Controlled Entity, later. In column (c), describe each loan or transfer. In column (d), enter the amount for each loan or transfer to each controlled entity.

Attached schedule for transfers from controlled entities.

If at any time during the tax year, the foundation received any transfers of funds or payments from a controlled entity within the meaning of section 512(b)(13), attach a schedule using the format provided in the sample schedule, Line 11—Example B Statement of Information Regarding Transfers From a Controlled Entity, later. In column (c), describe each transfer or payment received, including payment of interest, annuities, royalties, rents, dividends, fees or other payments for services, contributions to capital, and loans. In column (d), enter the amount of each loan or transfer from each controlled entity.

Line 12. Distribution to a donor-advised fund.

If a distribution was made from the foundation to a donor-advised fund over which the foundation or a disqualified person had advisory privileges, then in an attachment state whether the foundation treated any distribution to a donor-advised fund as a qualifying distribution, and explain how the distributions will be used to accomplish a purpose described in section 170(c)(2)(B).

Line 13. Public inspection requirements and website address.

All domestic private foundations (including section 4947(a)(1) nonexempt charitable trusts treated as private foundations) are subject to the public inspection requirements. See Q. Public Inspection Requirements, earlier, for information on making the foundation's annual returns and exemption application available for public inspection.

Enter the foundation's website address if the foundation has a website. Otherwise, enter “N/A.”

Line 15. Section 4947(a)(1) trusts.

Section 4947(a)(1) nonexempt charitable trusts that file Form 990-PF instead of Form 1041 must complete this line. The trust should include exempt-interest dividends received from a mutual fund or other regulated investment company as well as tax-exempt interest received directly.

Line 16. Foreign accounts.

Answer “Yes” if either (1) or (2) below applies.

Go to www.fincen.gov for more information.

If you are required to file FinCEN Form 114 but don't do so, you may have to pay a penalty of up to $10,000 (more in some cases).

Enter the name of each foreign country in which a foreign account described on line 16 is located.

Line 1. Self-dealing.

The activities listed in lines 1a(1)–(6) are considered self-dealing under section 4941 unless one of the exceptions applies. See IRS.gov/Charities/Foundations/Acts-of-Self-Dealing.

The terms “disqualified person” and “foundation manager” are defined under C. Definitions, earlier.

Line 1b.

If you answered “Yes” to any of the questions in line 1a, you should answer “Yes” to line 1b unless all of the acts engaged in were acts excepted by the regulations under section 4941 or other guidance, including Notices published in the Internal Revenue Bulletin relating to disaster assistance.

Line 2a.

Under section 4942, a foundation (other than an operating foundation) must make qualifying distributions of its distributable amount for a tax year by the end of the following tax year. Otherwise, the foundation’s undistributed income as of the end of the following tax year is generally subject to tax until corrected. Parts IX through XII are used in determining whether the foundation has met its requirements under section 4942.

Line 2b. Taxes on failure to distribute income.

If you answer “No” to the question on line 2b, attach a statement explaining:

Foreign foundations described in section 4948(b) need not complete line 2.

Line 3a.

A private foundation generally is subject to tax under section 4943 if it owns any excess business holdings. In general, the holdings of a private foundation, combined with the holdings of related foundations and other disqualified persons, can't exceed 20% of the voting stock of a corporation, the profits interest in a partnership, or the beneficial remainder interest in a trust. (See “disqualified person” under C. Definitions, earlier.) Regardless of the holdings of disqualified persons, however, a foundation is permitted to own holdings that don't exceed 2% of either the voting stock or value of all outstanding shares of all classes of stock in a corporation. A similar exception applies to a beneficial or profits interest in any business enterprise that is a trust or partnership.

Section 4943(g), added by the Bipartisan Budget Act of 2018, P.L. 115-123, 132 Stat. 64 (2018), provides an exception for certain limited holdings to independently operated businesses. In general, the excess business holdings provisions of section 4943(a) shall not apply with respect to the holdings of a private foundation in any business enterprise that meets all the requirements of section 4943(g)(2), (3), and (4). Accordingly, answer “No” to line 3a if the following requirements are met.

The requirements of section 4943(g)(2) are met if:

The requirements of section 4943(g)(3) are met if the business enterprise, no later than 120 days after the close of the tax year, distributes an amount equal to its net operating income for such tax year to the private foundation. For purposes of this paragraph, the net operating income of any business enterprise for any tax year is an amount equal to the gross income of the business enterprise for the tax year, reduced by the sum of:

The requirements of section 4943(g)(4) are met if, at all times during the tax year:

This provision does not apply to any donor-advised fund treated as a private foundation by section 4943(e), a supporting organization treated as a private foundation by section 4943(f), a trust described in section 4947(a)(1), or a trust described in section 4947(a)(2).

Section 4943(g) shall apply to tax years beginning after December 31, 2017.

For more information about excess business holdings, see the Instructions for Form 4720.

Line 4. Taxes on investments that jeopardize charitable purposes.

In general, an investment that jeopardizes any of the charitable purposes of a private foundation is one for which a foundation manager didn't exercise ordinary business care to provide for the long- and short-term financial needs of the foundation in carrying out its charitable purposes. For more details, see the regulations under section 4944.

Line 5. Taxes on taxable expenditures and political expenditures.

In general, payments made for the activities described on lines 5a(1)–(5) are taxable expenditures.

Line 5a(2).

Under section 4955, a section 501(c)(3) organization must pay an excise tax for any amount paid or incurred on behalf of or in opposition to any candidate for public office. The organization must pay an additional excise tax if it doesn't correct the expenditure timely.

A manager of a section 501(c)(3) organization who knowingly agrees to a political expenditure must pay an excise tax unless the agreement isn't willful and there is reasonable cause. A manager who doesn't agree to a correction of the political expenditure may have to pay an additional excise tax.

A section 501(c)(3) organization will lose its exempt status if it engages in political activity.

A political expenditure that is treated as an expenditure under section 4955 isn't treated as a taxable expenditure under section 4945.

For purposes of the section 4955 tax, when an organization promotes a candidate for public office (or is used or controlled by a candidate or prospective candidate), amounts paid or incurred for the following purposes are political expenditures.

See the regulations under section 4945 for more information.

Line 5a(3).

Answer “Yes” if the organization made a grant to an individual for travel, study, or similar purposes. Such purposes include scholarships, fellowships, certain prizes and awards, and grants to achieve a specific objective, produce a report or similar product, or improve a literary, artistic, musical, scientific, teaching, or other similar skill of the grantee. Similar purposes don't include grants to individuals in relief of poverty or distress (other than grants of the type described above), or prizes or awards that don't finance any future activities of the recipient.

A grant to an individual for travel, study, or similar purposes is a taxable expenditure under section 4945(d)(3) unless the foundation awarded the grant on an objective and nondiscriminatory basis under a procedure approved in advance by the IRS, as required under section 4945(g). The foundation may request approval of its procedure in the process of applying for exemption with Form 1023 (Schedule H), or thereafter with Form 8940, Request for Miscellaneous Determination.

Line 5a(4).

Except as discussed below, a grant by a private foundation to a public charity described in section 509(a)(1), (2), or (3) or to an exempt operating foundation (as defined in section 4940(d)(2) and the instructions for Part VI) isn't a taxable expenditure if the private foundation doesn't earmark the grant for any of the activities described in lines 5a(1)–(5), and there is no oral or written agreement by which the grantor foundation may cause the grantee to engage in any such prohibited activity or to select the grant recipient.

A grant made to a section 509(a)(3) Type III supporting organization (as defined in section 4943(f)(5)) that isn't a functionally integrated supporting organization (as defined in section 4943(f)(5)(B)) is a taxable expenditure unless you exercise expenditure responsibility. Check “Yes” on line 5a(4) if you made a grant to such an organization. See Regulations section 1.509(a)-4(i), for more information about whether an organization is functionally integrated.

A grant made to any other supporting organization (including a functionally integrated Type III), if a disqualified person of the private foundation controls the supporting organization or any of its supported organizations, is also a taxable expenditure unless you exercise expenditure responsibility. Check “Yes” on line 5a(4) if you made a grant to such an organization. In addition, check “Yes” on line 5a(4) if you made a grant in a prior year with respect to which you have a continuing obligation to exercise expenditure responsibility. See Regulations sections 53.4942(a)-3(a)(3) and 53.4945-5(a) for more information.

Line 5b.

If you answered “Yes” to any of the questions in line 5a, you should answer “Yes” to line 5b unless all of the transactions engaged in were “excepted” transactions. Excepted transactions are described in Regulations section 53.4945-2 through 53.4945-5 and appear in Notices published in the Internal Revenue Bulletin relating to disaster assistance. For example, see Pub. 3833, Disaster Relief.

Line 6b.

Check “Yes” if, in connection with any transfer of funds to a private foundation, the foundation directly or indirectly pays premiums on any personal benefit contract, or there is an understanding or expectation that any person will directly or indirectly pay these premiums.

Report the premiums it paid and the premiums paid by others, but treated as paid by the private foundation, on Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, and pay the excise tax (which is equal to premiums paid) on Form 4720.

For more information, see Form 8870 and Notice 2000-24, 2000-17 I.R.B. 952.

Line 7a.

Answer “Yes” if the foundation was a party to a prohibited tax shelter transaction (PTST) as described in section 4965(e) at any time during the tax year.

PTST.

In general, a PTST means any listed transaction and any prohibited reportable transaction.

Listed transaction.

A listed transaction, within the meaning of section 6707A(c)(2), is a transaction that is the same as, or substantially similar to, any transaction that has been specifically identified by the Secretary in published guidance as a tax avoidance transaction for purposes of section 6011.

Prohibited reportable transaction.

Prohibited reportable transaction means any confidential transaction or any transaction with contractual protection (as defined under regulations prescribed by the Secretary) (see Regulations section 1.6011-4(b)(3) and (4)) that is a reportable transaction (as defined in section 6707A(c)(1)).

If the answer to this question is “Yes,” the foundation must also file Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transactions.

Line 7b.

Answer “Yes” if the foundation answered “Yes” to line 7a, and it had net income or received proceeds attributable to the PTST during the tax year.

If the foundation answers “Yes” to both lines 7a and 7b, it may be required to file Form 4720 and pay tax with respect to each PTST. The foundation's managers may also be required to file Form 4720 and pay tax with respect to the relevant PTSTs.

Line 8.

See the instructions for Form 4720, Schedule N, to determine if you paid to any covered employee more than $1 million in remuneration or paid an excess parachute payment during the year. Remuneration paid to a covered employee includes any remuneration paid by a related organization.

Line 1. List of officers, directors, trustees, etc.

List the names, addresses, and other information requested for those who were officers, directors, and trustees (or any person who had responsibilities or powers similar to those of officers, directors, or trustees) of the foundation at any time during the year. Each must be listed whether or not they receive any compensation from the foundation. Give the address at which officers, etc., prefer the IRS to contact them.

Also include on this list any officers or directors (or any person who had responsibilities or powers similar to those of officers or directors) of a disregarded entity owned by the foundation who aren't officers, directors, etc., of the foundation.

If the foundation (or disregarded entity) pays any other person, such as a management services company, for the services provided by any of the foundation's officers, directors, or trustees (or any person who had responsibilities or powers similar to those of officers, directors, or trustees), report the compensation and other items on Part VII as if you had paid the officers, etc., directly.

Show all forms of compensation earned by each listed officer, etc. In addition to completing Part VII, if you want to explain the compensation of one or more officers, directors, and trustees, you may provide an attachment describing the person's entire 2023 compensation package.

Enter zero in columns (c), (d), and (e) if no compensation was paid. Attach a schedule if more space is needed.

Line 2. Compensation of five highest-paid employees.

Fill in the information requested for the five employees (if any) of the foundation (or disregarded entity that the foundation owns) who received the greatest amount of annual compensation over $50,000. Don't include employees listed on line 1. Also enter the total number of other employees who received more than $50,000 in annual compensation.

Show each listed employee's entire compensation package for the period covered by the return. Include all forms of compensation that each listed employee received in return for the employee’s services. See the line 1 instructions for more details on includible compensation.

Line 3. Five highest-paid independent contractors for professional services.

Fill in the information requested for the five highest-paid independent contractors (if any), whether individuals or professional service corporations or associations, to whom the organization paid more than $50,000 for the year to perform personal services of a professional nature for the organization (for example, attorneys, accountants, and doctors). Also show the total number of all other independent contractors who received more than $50,000 for the year for performing professional services.

Program-related investment.

Section 4944(c) and corresponding regulations define a program-related investment as one that is made primarily to accomplish a charitable purpose of the foundation and no substantial purpose of which is to produce investment income or a capital gain from the sale of the investment. Examples of program-related investments include educational loans to individuals and low-interest loans to other section 501(c)(3) organizations.

General instructions.

Report all program-related investments made in the current tax year. Don't report any investments made in a prior year even if they were still held by the foundation in the current tax year.

Report in the amount column only the amounts of program-related investments that may be treated as qualifying distributions. Don't report in the amount column (1) the amount of a loan guarantee except to the extent that the foundation makes a guarantee payment that would be a qualifying distribution, or (2) the amount of a program-related investment in an organization described in the exceptions set forth in the Part I, line 25, column (d), instructions. If an amount isn't reportable in the amount column, then report it in the column describing the program-related investment.

Investments consisting of loans to individuals (such as educational loans) aren't required to be listed separately but may be grouped with other program-related investments of the same type. Loans to other section 501(c)(3) organizations and all other types of program-related investments must be listed separately on lines 1 through 3 or on an attachment.

Lines 1 and 2.

List the two largest program-related investments made by the foundation in 2023, if any, whether or not the investments were still held by the foundation at the end of the year. If none, enter “NONE.”

Line 3.

Combine all other program-related investments and enter the total on line 3 in the Amount column. List the individual investments or groups of investments included (attach a schedule, if necessary).

Who must complete this section?

All domestic foundations must complete Part IX.

Foreign foundations that checked Item D2 in the Heading section don’t have to complete Part IX unless claiming status as a private operating foundation.

Private operating foundations described in section 4942(j)(3) or 4942(j)(5) must complete Part IX in order to complete Part XIII.

Overview.

A private foundation that isn't a private operating foundation must pay out, as qualifying distributions, its distributable amount, as determined in Part X. The distributable amount is the minimum investment return with certain adjustments. An organization’s minimum investment return, as determined in Part IX, is 5% of the total fair market value (less acquisition indebtedness) of its noncharitable-use assets.

Minimum investment return.

In figuring the minimum investment return, include only those assets that aren't actually used or held for use by the organization for a charitable, educational, or other similar function that contributed to the charitable status of the foundation. Cash on hand and on deposit is considered used or held for use for charitable purposes only to the extent of the reasonable cash balances reported in Part IX, line 4. See the instructions for lines 1b and 4, later.

Assets held for the production of income or for investment aren't considered to be used directly for charitable functions even though the income from the assets is used for charitable functions. It is a factual question whether an asset is held for the production of income or for investment rather than used or held for use directly by the foundation for charitable purposes.

For example, an office building used to provide offices for employees engaged in managing endowment funds for the foundation isn't considered an asset used for charitable purposes.

Line 1a. Average monthly fair market value of securities.

If market quotations are readily available, a foundation may use any reasonable method to determine the average monthly fair market value of securities such as common and preferred stock, bonds, and mutual fund shares, as long as that method is consistently used. For example, a value for a particular month might be determined by the closing price on the first or last trading days of the month or an average of the closing prices on the first and last trading days of the month. Market quotations are considered readily available if a security is any of the following.

If securities are held in trust for, or on behalf of, a foundation by a bank or other financial institution that values those securities periodically using a computer pricing system, a foundation may use that system to determine the value of the securities. The system must be acceptable to the IRS for federal estate tax purposes.

The foundation may reduce the fair market value of securities only to the extent that it can establish that the securities could only be liquidated in a reasonable period of time at a price less than the fair market value because of:

Any reduction in value allowed under these provisions may not be more than 10% of the fair market value (determined without regard to any reduction in value).

Also, see Regulations sections 53.4942(a)-2(c)(4)(i)(b), (c), and (iv)(a), relating to the rules summarized above and to the general rules for valuing other assets.

Line 1b. Average of monthly cash balances.

Figure cash balances on a monthly basis by averaging the amount of cash on hand on the first and last days of each month. Include all cash balances and amounts that may be used for charitable purposes (see Line 4. Cash deemed held for charitable activities, later) or set aside and taken as a qualifying distribution (see Part XI. Qualifying Distributions, later).

Line 1c. Fair market value of all other assets.

The foundation must report on line 1c the value of all assets other than charitable-use assets, publicly traded securities, cash, and certain “excluded assets” described in Regulations section 53.4942(a)-2(c)(2). The foundation must value the assets reported on line 1c annually, except that real estate may be valued every 5 years if the independent appraisal procedures discussed under 5-year valuation below are followed. Alternatively, an annual valuation may be made by private foundation employees or by any other person even if that person is a disqualified person. If the IRS accepts an annual valuation, it is valid only for the tax year for which it is made. A new valuation is required for the next tax year.

Line 1e. Reduction claimed for blockage or other factors.

If the fair market value of any securities, real estate holdings, or other assets reported on lines 1a and 1c reflects a blockage discount, marketability discount, or other reduction from full fair market value because of the size of the asset holding or any other factor, enter on line 1e the aggregate amount of the discounts claimed. Attach an explanation that includes the following information for each asset or group of assets involved.

In the case of securities, there are certain limitations on the size of the reduction in value that can be claimed. See the instructions for Part IX, line 1a.

Line 2. Acquisition indebtedness.

Enter the total acquisition indebtedness that applies to assets included on line 1. For details, see section 514(c)(1).

Line 4. Cash deemed held for charitable activities.

Foundations may exclude from the assets used in the minimum investment return computation the reasonable cash balances necessary to cover current administrative expenses and other normal and current disbursements directly connected with the charitable, educational, or other similar activities. The amount of cash that may be excluded is generally 1.5% of the fair market value of all assets (minus any acquisition indebtedness) as figured in Part IX, line 3. However, if under the facts and circumstances an amount larger than the deemed amount is necessary to pay expenses and disbursements, then you may enter the larger amount instead of 1.5% of the fair market value on line 4. If you use a larger amount, attach an explanation.

Line 6. Short tax periods.

If the foundation's tax period is less than 12 months, determine the applicable percentage by dividing the number of days in the short tax period by 365 (or 366 in a leap year). Multiply the result by 5% (0.05). Then multiply the modified percentage by the amount on line 5 and enter the result on line 6.

Line 4.

Enter the total of recoveries of amounts treated as qualifying distributions for any year under section 4942(g). Include recoveries of part or all (as applicable) of grants previously made, proceeds from the sale or other disposition of property whose cost was treated as a qualifying distribution when the property was acquired, and any amount set aside under section 4942(g) to the extent it is determined that this amount isn't necessary for the purposes of the set-aside.

Line 6. Deduction from distributable amount.

If the foundation was organized before May 27, 1969, and its governing instrument or any other instrument continues to require the accumulation of income after a judicial proceeding pursuant to section 508(e) to reform the instrument has terminated, then the income required to be accumulated must be subtracted from the distributable amount beginning with the first tax year after the tax year in which the judicial proceeding was terminated.

Line 1a. Expenses, contributions, gifts, etc.

Enter the amount from Part I, line 26, column (d).

Line 1b. Program-related investments.

Enter the total of the Amount column from Part VIII-B. See the Part VIII-B instructions for the definition of “program-related investments.”

Line 3. Amounts set aside.

Amounts set aside may be treated as qualifying distributions only if the private foundation establishes to the satisfaction of the IRS that the amount will be paid for the specific project within 60 months from the date of the first set-aside and meets (1) or (2) below.

Excess distribution carryovers.

An excess of qualifying distributions is created for a particular tax year (and available as a carryover for the 5 succeeding years) if the total qualifying distributions treated as made out of the undistributed income for the year or out of corpus with respect to the year (other than amounts distributed in satisfaction of section 170(b)(1)(F)(ii) or 4942(g)(3) or applied to a prior tax year by election) exceeds the distributable amount for the year. See Regulations section 53.4942(a)-3(e)(2). Thus, in no case does the excess for the particular tax year exceed the qualifying distributions for the year less the distributable amount for the year.

Line 1. Distributable amount.

Enter the distributable amount for 2023 from Part X, line 7.

Line 2. Undistributed income.

Enter the distributable amount for 2022 and amounts for earlier years that remained undistributed at the beginning of the 2023 tax year.

Line 2b.

Enter the amount of undistributed income for years before 2022.

Line 3. Excess distributions carryover to 2023.

If the foundation has made excess distributions out of corpus in prior years, which haven't been applied in any year, enter the amount for each year. Don't enter an amount for a particular year if the organization was a private operating foundation for any later year.

Lines 3a through 3e.

Enter the amount of any excess distribution made on the line for each year listed. Don't include any amount that was applied against the distributable amount of an earlier year or that was already used to meet pass-through distribution requirements. (See Line 7. Distributions out of corpus for 2022 pass-through distributions, later.)

Line 3f.

This amount can be applied in 2023.

Line 4. Qualifying distributions.

Enter the total amount of qualifying distributions made in 2023 from Part XI, line 4, on the line next to column (a). The total of the amounts applied on lines 4a through 4e is equal to the qualifying distributions made in 2023.

Line 4a.

The qualifying distributions for 2023 are first used to reduce any undistributed income remaining from 2022. Enter only enough of the 2023 qualifying distributions to reduce the 2022 undistributed income to zero.

Lines 4b and 4c.

If there are any 2023 qualifying distributions remaining after reducing the 2022 undistributed income to zero, one or more elections can be made under Regulations section 53.4942(a)-3(d)(2) to apply all or part of the remaining qualifying distributions to any undistributed income remaining from years before 2022 or to apply to corpus.

A foundation may make a corpus election on line 4c in order to qualify under section 170(b)(1)(F)(ii) for the benefit of its contributors, or in order for a foundation grantor to the foundation to obtain a qualifying distribution under section 4942(g)(3), as described in the Part XII, line 7, instructions. A foundation can't make a corpus election on line 4c in an attempt to create or increase an excess distributions carryover for the current year on line 10e by applying excess distribution carryovers to its current-year distributable amount on line 5. See Regulations section 53.4942(a)-3(e)(2).

Line 4d.

Treat as a distribution of the distributable amount for 2023 any qualifying distributions for 2023 that remain after reducing the 2022 undistributed income to zero and after electing to treat any part of the remaining distributions as a distribution out of corpus or as a distribution of a prior year's undistributed income. Enter only enough of the remaining 2023 qualifying distributions to reduce the 2023 distributable amount to zero.

Line 4e.

Any 2023 qualifying distributions remaining after reducing the 2023 distributable amount to zero should be treated as an excess distribution out of corpus. This amount may be carried over and applied to later years.

Line 5. Excess qualifying distributions carryover applied to 2023.

The foundation may apply excess qualifying distribution carryovers from its 5 prior years to its current-year undistributed income, but only to the extent that the undistributed income exceeds its qualifying distributions for the year. For example, if for the tax year X Foundation has a distributable amount of $1,000, qualifying distributions of $800 that it elects to treat as made out of corpus, prior-year carryovers of $700, and no undistributed income for prior years, then it may apply only $200 of the carryovers to its current-year undistributed income. See Regulations section 53.4942(a)-3(e)(1).

Enter any excess qualifying distributions from line 3, which were applied to 2023, in both the Corpus column and the 2023 column. Apply the oldest excess qualifying distributions first. Thus, the organization will apply any excess qualifying distributions carried forward from 2018 before those from later years.

Line 6a.

Add lines 3f, 4c, and 4e. Subtract line 5 from the total. Enter the net total in the Corpus column.

Line 6c.

Enter only the undistributed income from 2021 and prior years for which either a notice of deficiency under section 6212(a) has been mailed for the section 4942(a) first-tier tax, or on which the first-tier tax has been assessed because the organization filed a Form 4720 for a tax year that began before 2022.

Lines 6d and 6e.

These amounts are taxable under the provisions of section 4942(a), except for any part that is due solely to improper valuation of assets to which the provisions of section 4942(a)(2) are being applied (see Line 2b. Taxes on failure to distribute income, earlier). Report the taxable amount on Form 4720. If the exception applies, attach an explanation.

Line 6f.

In the 2023 column, enter the amount by which line 1 is more than the total of lines 4d and 5. This is the undistributed income for 2023. The organization must distribute the amount shown by the end of its 2024 tax year so that it won't be liable for the tax on undistributed income.

Line 7. Distributions out of corpus for 2023 pass-through distributions.

If the foundation is the donee and receives a contribution from another private foundation, the donor foundation may treat the contribution as a qualifying distribution only if the donee foundation makes a distribution equal to the full amount of the contribution and the distribution is a qualifying distribution that is treated as a distribution of corpus. The donee foundation must, no later than the close of the first tax year after the tax year in which it receives the contributions, distribute an amount equal in value to the contributions received in the prior tax year and have no remaining undistributed income for the prior year. For example, if private Foundation X received $1,000 in tax year 2021 from Foundation Y, Foundation X would have to distribute the $1,000 as a qualifying distribution out of corpus by the end of 2022 and have no remaining undistributed income for 2022.

If a private foundation receives a contribution from an individual or a corporation and the individual is seeking the 60% contribution base limit on deductions for the tax year (or the individual or corporation isn't applying the limit imposed on deductions for contributions to the foundation of capital gain property), the foundation must comply with certain distribution requirements.

By the 15th day of the 3rd month after the end of the tax year in which the foundation received the contributions, the donee foundation must distribute as qualifying distributions out of corpus 100% of the value as of the date of receipt of the following.

1. All contributions of cash and property received during the year, in order for the individual contributor to receive the benefit of the 60% limit on deductions under section 170(b)(1)(F)(ii).

2. All contributions of property only, in order for the individual or corporate contributor not to be subject to the section 170(e)(1)(B)(ii) limitations.

Line 8. Outdated excess distributions carryover.

Because of the 5-year carryover limitation under section 4942(i)(2), the organization must reduce any excess distributions carryover by any amounts from 2018 that weren't applied in 2023.

Line 9. Excess distributions carryover to 2023.

Enter the amount by which line 6a is more than the total of lines 7 and 8. This is the amount the organization may apply to 2024 and following years. Line 9 can never be less than zero.

Line 10. Analysis of line 9.

In the space provided for each year, enter the amount of excess distributions carryover from that year that hasn't been applied as of the end of the 2023 tax year. If there is an amount on the line for 2019, it must be applied by the end of the 2024 tax year since the 5-year carryover period for 2019 ends in 2024.

Certain elderly care facilities (section 4942(j)(5)).

For purposes of section 4942 only, certain elderly care facilities that, on May 26, 1969, and at all times thereafter before the close of the tax year, operated and maintained as their principal functional purpose facilities for the long-term care, comfort, maintenance, or education of permanently and totally disabled persons, elderly persons, needy widows, or children may be classified as private operating foundations. To be so classified, they must also meet the endowment test described below.

If the foundation is a section 4942(j)(5) organization, complete only lines 1a, 1b, 2c, 2d, 2e, and 3b. Enter “N/A” on all other lines in the Total column for Part XIII.

Private operating foundation (section 4942(j)(3)).

The term “private operating foundation” means any private foundation that spends at least 85% of the smaller of its adjusted net income or its minimum investment return directly for the active conduct of the exempt purpose or functions for which the foundation is organized and operated (the income test) and that also meets one of the three tests below.

See the regulations under section 4942 for the meaning of “directly for the active conduct” of exempt activities for purposes of these tests.

Line 2.

In the space provided (or in an attachment, if necessary), furnish the required information about the organization's grant, scholarship, fellowship, loan, etc., programs. In addition to restrictions or limitations on awards by geographical areas, charitable fields, and kinds of recipients, indicate any specific dollar limitations or other restrictions applicable to each type of award the organization makes. This information benefits the grant seeker and the foundation. The grant seekers will be aware of the grant eligibility requirements, and the foundation should receive only applications that adhere to these grant application requirements.

If the foundation only makes contributions to preselected charitable organizations and doesn't accept unsolicited applications for funds, check the box on line 2.

Line 3.

If necessary, attach a schedule for lines 3a and 3b that lists separately amounts given to individuals and amounts given to organizations.

See Regulations section 1.509(a)-4 and Rev. Proc. 2018-32, 2018-23 I.R.B. 739, available at IRS.gov/pub/irs-irbs/irb18-23.pdf, for guidance on determining whether a grantee is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Columns (a) and (c).

In column (a), enter a six-digit business code, from the list in the Instructions for Form 990-T, to identify any income reported in column (b). In column (c), enter an exclusion code, from the list later, to identify any income reported in column (d). If more than one exclusion code is applicable to a particular revenue item, select the lowest numbered exclusion code that applies. Also, if nontaxable revenues from several sources are reportable on the same line in column (d), use the exclusion code that applies to the largest revenue source.

Columns (b), (d), and (e).

For amounts reported in Part XV-A on lines 1–11, enter in column (b) any income earned that is unrelated business income (see section 512). In column (d), enter any income earned that is excluded from the computation of unrelated business taxable income by section 512, 513, or 514. In column (e), enter any related or exempt function income; that is, any income earned that is related to the organization's purpose or function that constitutes the basis for the organization's exemption.

Also enter in column (e) any income specifically excluded from gross income other than by section 512, 513, or 514, such as interest on state and local bonds that is excluded from tax by section 103. You must explain in Part XV-B any amount shown in column (e).

Comparing Part XV-A with Part I.

The sum of the amounts entered on each line of lines 1–11 of columns (b), (d), and (e) of Part XV-A should equal corresponding amounts entered on Part I, lines 3–11, column (a), and on line 5b as shown below.

Line 1. Program service revenue.

On lines 1a–g, list each revenue-producing program service activity of the organization. For each program service activity listed, enter the gross revenue earned for each activity, as well as identifying business and exclusion codes, in the appropriate columns. For line 1g, enter amounts that are payments for services rendered to governmental units. Don't include governmental grants that are reportable on Part I, line 1.

Report the total of lines 1a–g on line 11 of Part I, along with any other income reportable on line 11.

Program services are mainly those activities that the reporting organization was created to conduct and that, along with any activities begun later, form the basis of the organization's current exemption from tax.

Program services can also include the organization's unrelated trade or business activities. Program service revenue also includes income from program-related investments (such as interest earned on scholarship loans) as defined in the instructions for Part VIII-B.

Line 11.

On lines 11a–e, list each “Other revenue” activity not reported on lines 1 through 10. Report the sum of the amounts entered for lines 11a–e, columns (b), (d), and (e), on Part I, line 11.

Line 13.

On line 13, enter the total of columns (b), (d), and (e) of line 12.

You may use the following worksheet to verify your calculations.

Line 1. Reporting of certain transfers and transactions.

Generally, report on line 1 any transfer to or transaction with a noncharitable exempt organization even if the transfer or transaction constitutes the only connection with the noncharitable exempt organization.

Line 1a. Transfers.

Answer “Yes” to lines 1a(1) and 1a(2) if the reporting organization made any direct or indirect transfers of any value to a noncharitable exempt organization.

A “transfer” is any transaction or arrangement whereby one organization transfers something of value (cash, other assets, services, use of property, etc.) to another organization without receiving something of more than nominal value in return. Contributions, gifts, and grants are examples of transfers.

If the only transfers between the two organizations were contributions and grants made by the noncharitable exempt organization to the reporting organization, answer “No.”

Line 1b. Other transactions.

Answer “Yes” for any transaction described on line 1b(1)–(6), regardless of its amount, if it is with a related or affiliated organization.

Line 1b(3).

Answer “Yes” for transactions in which the reporting organization was either the lessor or the lessee.

Line 1b(4).

Answer “Yes” if either organization reimbursed expenses incurred by the other.

Line 1b(5).

Answer “Yes” if either organization made loans to the other or if the reporting organization guaranteed the other's loans.

Line 1b(6).

Answer “Yes” if either organization performed services or membership or fundraising solicitations for the other.

Line 1c.

Complete line 1c regardless of whether the noncharitable exempt organization is related to or closely affiliated with the reporting organization. For purposes of this line, “facilities” includes office space and any other land, building, or structure whether owned or leased by, or provided free of charge to, the reporting organization or the noncharitable exempt organization.

Line 1d.

Use this schedule to describe the transfers and transactions for which “Yes” was entered on lines 1a–c, earlier. You must describe each transfer or transaction for which the answer was “Yes.” You may combine all of the cash transfers (line 1a(1)) to each organization into a single entry. Otherwise, make a separate entry for each transfer or transaction.

Line 2. Reporting of certain relationships.

Enter on line 2 each noncharitable exempt organization that the reporting organization is related to or affiliated with, as defined earlier. If the control factor or the historic and continuing relationship factor (or both) is present at any time during the year, identify the organization on line 2 even if neither factor is present at the end of the year.

Don't enter unrelated noncharitable exempt organizations on line 2 even if transfers to or transactions with those organizations were entered on line 1. For example, if a one-time transfer to an unrelated noncharitable exempt organization was entered on line 1a(2), don't enter the organization on line 2.

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