us internal revenue service: i990pf--1991

8/14/2019 US Internal Revenue Service: i990pf--1991

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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., 8 min.

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

Preparing the form 31 hr., 29 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, DC20224, 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.

Changes You Should Note For 1991, foundations owing less than$500 in tax may now attach a check ormoney order to page 1, Form 990-PFinstead of using Form 8109, Federal TaxDeposit Coupon.

The limitation on grant administrativeexpenses expired for tax years

beginning after December 31, 1990.Accordingly, two schedules whichappeared in the 1990 Form (Part XI,Limitation on Grant AdministrativeExpenses, and Part XII, Schedule ofGrant Administrative Expenses) weredeleted from the 1991 revision.

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 formalso 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 Form 990-PF 1

B. Applicability of Parts ofForm 990-PF to Certain Filers 2

C. Definitions 2

D. Other Forms You May Need toFile 2

E. Additional Information 3

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

G. Furnishing Copies of the AnnualReturn to 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 4

M. 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 of Form 990-PFand Approved ExemptionApplications 5

R. Disclosures Regarding Certain

Information 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

Contents Page

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

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

Part IX-ASummary of DirectCharitable Activities 18

Part IX-BSummary of Program-Related Investments 18

Part XMinimum Investment Return 19

Part XIDistributable Amount 20

Part XIIQualifying Distribut ions 20Part XIIIUndist ributed Income 21

Part XIVPrivate OperatingFoundations 22

Part XVSupplementary Information 23

Part XVI-AAnalysis of Income-Producing Activities 23

Part XVI-BRelationship of Activitiesto the Accomplishment of ExemptPurposes 24

Part XVIIInformation RegardingTransfers To and Transactions andRelationships With NoncharitableExempt Organizations 24

Part XVIIIPublic Inspection 25

Signature 25

Exclusion Codes 26

General Instructions

A. Who Must File Form 990-PF

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

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


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2. Taxable private foundations (section6033(d)). (See instruction D, Form 1120.)

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 aretreated asprivate foundations (section 6033(d)).(See instruction D, Form 1041.)

Note: Section 4947(a)(1) nonexemptcharitable trusts that are not treated asprivate foundations, do not file Form990-PF. However, they may need to fileForm 990, Return of OrganizationExempt From Income Tax, orForm990EZ, Short Form Return ofOrganization Exempt From Income Tax.With either of these forms, the trustmust also fileSchedule A (Form 990),Organization Exempt Under 501(c)(3)(except Private Foundation), 501(e),

501(f), 501(k), or Section 4947(a)(1)Charitable Trust SupplementaryInformation. (See Form 990 or Form990EZ instructions. )

B. Applicability of Parts of Form990-PF to Certain Filers

Note: The parts of the form listed belowdo not apply to all filers. If an entire part,or a major portion of a part, does notapply, enter N/A where appropr iate.

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 XI does not apply to privateoperating 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 pr ivate 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 supported

organizations 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 charitabletrust treatedas a private foundation is a trust that isnot exempt from tax under section501(a) and all of the unexpired interestsof which are devoted to religious,charitable, or other purposes describedin section 170(c)(2)(B), and for which a

deduction was allowed under a sectionof the Code listed in section 4947(a)(1).

A taxable foundationis 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 manageris 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 member of the family of anindividual in the first three categories; or

5. a corporation, partnership, trust, orestate in which persons described in (1),

(2), (3), or (4) above own a totalbeneficial interest of more than 35%.

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

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

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

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

An organization is controlled by afoundation or by one or moredisqualified persons with respect to thefoundation if any of these persons may,by combining their votes or positions ofauthority, require the organization to

make an expenditure or prevent theorganization 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.

Charitableand exemptaresynonymous terms in these instructionswhen they relate to a tax-exempt privatefoundation.

D. Other Forms You May Need ToFile

Forms W-2 and W-3.Wage and TaxStatement, and Transmittal of Incomeand Tax Statements.

Form 941.Employers QuarterlyFederal Tax Return. Used to reportsocial security and income taxeswithheld by an employer and socialsecurity tax paid by 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 all

trades or businesses that are unrelatedto the purpose on which theorganizations exempt status is basedmust 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 t rust 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. Ifthis 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.


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

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

However, you must complete and attachForm 2220 even if the foundation doesnot owe 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 you attach Form 2220, check thebox on line 8, Part VI, on page 4 ofForm 990-PF and enter the amount ofany penalty on this line.

Form 4720.Return of Certain ExciseTaxes on Charities and Other Persons

Under Chapters 41 and 42 of theInternal Revenue Code. Primarily used todetermine the excise taxes imposed on:acts of self-dealing between privatefoundations and disqualified persons;failure to distribute income; excessbusiness holdings; investments that

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

Form 5500 or 5500-C/R.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 the deductionis claimed for the current tax year.

The forms required to be filed are:

Form 5500, Annual Return/Report ofEmployee Benefit Plan. Used for eachplan 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 two years after the dateit received the property.

Also required of any successor doneewho disposes of charitable deductionproperty within two years after the datethat the donor gave the property to theoriginal donee. (It does not matter whogave the property to the successordonee. It may have been the original

donee 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 atrade or business (as defined in section

162).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 Taxfor 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 bycalling 1-800-TAX-FORM(1-800-829-3676).

F. Use of Form 990-PF To Satisfy

State Reporting RequirementsSome 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 you intend to use Form 990-PF tosatisfy state or local filing requirements,such as those arising under statecharitable solicitation acts, note thefollowing:

Determine state filing requirements.You should consult the appropriateofficials of all states and other

jurisdictions in which you do business todetermine their specific filingrequirements. Doing business in a

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

Monetary tests may differ.Some orall of the dollar limitations applicable toForm 990-PF when filed with IRS maynot apply when using Form 990-PF inplace of state or local report forms. IRSdollar limitations that may not meetsome state requirements are the $5,000total assets minimum that necessitatescompletion of Part II, column (c), andPart XV; and the $30,000 minimum forlisting the highest paid employees andfor listing professional fees in Part VIII.

Additional information may berequired.State and local filingrequirements may require you to attachto Form 990-PF one or more of the

following: (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 mayrequire 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 you file withIRS 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, including any of theadditional information discussed above,or if the state determines that the formwas not completed according to theapplicable Form 990-PF instructions orsupplemental state instructions. In thatevent, you may be asked to provide themissing information or to submit anamended return.

Amended returns.If you submitsupplemental information or file an

amended Form 990-PF with the IRS,you must also furnish a copy of theinformation or amended return to anystate with which you filed a copy ofForm 990-PF originally to meet thatstates filing 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 differs


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from 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 you file Form990-PF in place of the state or localform. When filing in several jurisdictions,prepare as many copies as needed withthe state registration number omitted.Then enter the applicable registration

number on the copy to be filed witheach jurisdiction.

G. Furnishing Copies of theAnnual Return 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 requiredto 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 also

provide 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 toany 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 Period

1. File the 1991 return for the calendaryear 1991 and fiscal years beginning in1991. If the return is for a fiscal year, fillin the tax year space at the top of thereturn.

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

3. In the case of a change inaccounting period, the 1991 form mayalso be used as the return for a shortperiod (less than 12 months) endingNovember 30, 1992, or earlier.

In general, to change your accountingperiod you must file timely a Form990-PF for the short period resultingfrom the change. At the top of this shortperiod return, indicate that a change ofaccounting period is being made bywriting, Change of Accounting Period.

If you changed your accounting periodwithin the 10-calendar-year period thatincludes the beginning of the shortperiod, and you had a Form 990-PFfiling requirement at any time during that10-year period, you must also attach aForm 1128 to the short period return.See Rev. Proc. 85-58, 1985-2 C.B. 740.

I. Accounting Methods

Unless the instructions specifyotherwise, 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 dayof the 5th month following the close ofthe accounting period. If the return isfiled late, see the discussion of Penaltyfor Failure To File Timely, Completely,or Correctly, item M, 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

Illinios, 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 ReturnTo change your return for a prior year,write Amended Returnat the top of thereturn. Generally, you must file theamended return within three years afterthe date the original return was due orthree years after the date theorganization filed it, whichever is later.Use Form 4506-A to obtain a copy of apreviously filed return. You can obtainblank forms for prior years by calling thetoll-free number given in instruction E.

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 withrespect to any one return shall notexceed the lesser of $5,000 or 5% ofthe gross receipts of the organization forthe year.

Against the responsible person.TheIRS will make written demand that the

delinquent 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 shall not exceed $5,000.If more than one person is liable for anyfailures, all such persons are jointly andseverally liable with respect to suchfailures (see section 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 a-0- when appropriate) on all total lines;and to enter None or N/A if an entirepart does not apply.

Since this return also satisfies thefiling requirements of a tax return undersection 6011 for the tax on investmentincome imposed by section 4940 (or


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4948 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 tax

when 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 private foundation must makeestimated tax payments of the excisetax on investment income if it canexpect its estimated tax (section 4940tax minus allowable credits) to be $500or more. The number of installmentpayments you must make under the

depositary method is determined at thetime during the year that you first meetthis 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 installmentpayments of the section 4940 tax on netinvestment income.

To begin your calculation of theestimated tax, multiply the estimated

investment income by the tax rate (1%or 2%, whichever is applicable) andenter that amount on line 11 of Form990-W.

The Form 990-W line items andinstructions pertaining to largeorganizations also apply to privatefoundations. For purposes of paying theestimated tax on net investment income,a large organization is one that had netinvestment income of $1 million or morefor any of the three tax years

immediately preceding the tax yearinvolved.

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 1992 Form990-W or 1041-ES for information ondetermining the amounts of required

payments.Compute separately any required

deposits of section 4940 tax andunrelated business income tax. (Seesections 6655(b) and (d) and Form 2220instructions.)

Note: Section 4947(a)(1) char itable t rustsand taxable foundations that haveincome subject to tax under section 1 orsection 11 should see Form 1120 for theestimated tax rules. However, for payingany estimated tax on that income,section 4947(a)(1) charitable trustsshould use Form 1041-ES. Taxablefoundations should use Form 8109, anddarken the 1120 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, as shown on line 9,Part VI, is less than $500, attach acheck or money order to page 1 of Form990-PF. Otherwise, deposit foundationnet investment income tax payments(estimated tax payments and balance oftax due as shown on line 9, Part VI) witha Federal Tax Deposit Coupon (Form8109). Be sure to darken the 990-PF boxon Form 8109. Make these tax depositswith either a financial institution qualifiedas a depositary for Federal taxes or theFederal Reserve bank or branchservicing the geographic area where thefoundation is located. Do not submitdeposits directly to an IRS office;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 contained in the

coupon book (Form 8109) for moreinformation.

To ensure more accurate processingof your deposits, please write youremployer identification number, type oftax paid, and the tax period to which thedeposit applies on your check.

For more information concerningdeposits, see Pub. 583.

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

Q. Public Inspection of Form990-PF and Approved ExemptionApplications

Through the organization

Information reported on or with Form990-PF, including all attachments, will bemade available for public inspectionunder section 6104(b). This applies bothto information required by the form andto information furnished voluntarily.Therefore, the return and anyattachments should be of such qualitythat they can be reproducedphotographically.

(1) Annual returns.Foundationmanagers must make the annual returnavailable for inspection during regularbusiness hours at the principal office ofthe foundation, or may furnish a freecopy to any person requestinginspection, provided the request is madeat the time and in the manner prescribedin section 6104(d) and the relatedregulations.

Notice requirements.A notice thatthe private foundations annual return isavailable for inspection must be

published 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 theresidence of a substantial contributor orfoundation manager.

To ensure that the return is availablefor public inspection for the full 180-day

period 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 annually with theInternal Revenue Service.

Penalties.If a foundation does notpublish the notice and attach a copy ofit to a timely filed return, there is apenalty of $10 a day, up to a maximumof $5,000 for any one return (section6652(c)). The penalty is imposed on the


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person 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 shallbe subject 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 section1.507-2(a)(6)).

The notice and public inspectionprovisions discussed above do not applyto any foreign foundation which, from

the 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).

(2) Exemption applications.Anysection 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 of

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

Any person who does not comply withthe public inspection of application

requirement 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 forthe full amount of the penalty. Anyperson who willfully fails to comply shallbe subject to an additional penalty of$1,000.

Through 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 andaddress (city and state) of theorganization that filed the return orapplication. A request to inspect a returnshould indicate the type (number) of the

return and the year(s) involved. Therequest should be sent to the DistrictDirector (Attention: Disclosure Officer) ofthe district in which the requesterdesires to inspect the return orapplication. If inspection at the IRSNational Office is desired, 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 dayonwhich the offers or solicitations aremade. The penalty imposed for aparticular day is the greater of $1,000 or50% of the total cost of the offers andsolicitations made on that day whichlacked the required disclosure.

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

Regulations section 53.4948-1(b)provides that sections 507, 508, andChapter 42 (other than section 4948) donot apply to a foreign private foundation

which from the date of its creation hasreceived at least 85% of its support (asdefined in section 509(d), other thansection 509(d)(4)) from sources outsidethe United States.

Section 4948(a) imposes a 4% tax onthe gross investment income (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 of

the section 4940 tax on the netinvestment income of a domestic privatefoundation. To pay any tax due, seeinstructions for Part VI, line 9.

Taxable foreign private foundationsand foreign section 4947(a)(1) charitabletrusts are not subject to the excise taxesunder sections 4948(a) and 4940, butare taxed under subtitle A of the Code.

Certain foreign foundations are notrequired to furnish copies of annualreturns to state officials, nor must they

comply 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 substantialcontraction. See General Instruction Jfor filing dates and locations.

The term substantial contractionincludes any partial liquidation or any

other significant disposition of assets(other than transfers for full andadequate consideration or distributionsof current income).

A significant disposition of assetsdoesnot include any disposition for a tax yearif 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 madeduring 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 the

case 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 wellas a schedule listing the names andaddresses of all recipients of assetsdistributed in liquidation, dissolution, orsubstantial contraction, and an


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explanation 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 forthe year of termination (see Exceptionsin General Instruction Q).

If the organization has ceased to exist,write Final Returnat the top of page 1

of the return.If the organization is terminating its

private 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 publiccharity for certain purposes, it is stillconsidered a private foundation forpurposes of the filing requirements andmust file an annual return on Form

990-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.

The 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 furnishedestablishing a successful termination,then for the final year of the terminationperiod the organization should complywith the filing requirements for the type

of public charity it has become. See theinstructions for Form 990 and ScheduleA (Form 990) for specific information onfiling requirements. This applies even ifthe key 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 areasonable period of time to file anyprivate foundation returns required (forthe last year of the termination period)but not previously filed if it is later

determined 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 you are terminating your privatefoundation status under the 60-month

provisions of section 507(b)(1)(B), specialrules apply. (See General Instructions Tand U.) Under these rules you may fileForm 990-PF without paying the tax onnet investment income if the foundationfiled a consent under section 6501(c)(4)with its notification to the DistrictDirector of its intention to begin asection 507(b)(1)(B) termination. Theconsent states that the period oflimitation on the assessment of excisetax under section 4940 or 4948 oninvestment income for any tax year inthe 60-month period will not expire untilat least one year after the period forassessing a deficiency for the last taxyear in the 60-month period wouldnormally expire. Any foundation notpaying the tax with the filing of Form990-PF must attach a copy of thesigned consent.

If the foundation did not file theconsent, the tax must be paid in thenormal manner as explained in GeneralInstructions O and P. You may file aclaim for refund after completingtermination or during the terminationperiod. The claim for refund must be

filed timely and the organization mustfurnish information establishing that itqualified as a public charity for theperiod for which it paid the tax.

Specific InstructionsName and Address.If you received aForm 990-PF Package from the IRS witha preaddressed label, please attach thelabel to the name and address area ofthe return you file. If the name oraddress on the label is wrong, makecorrections on the label. The addressused must be that of the principal officeof the foundation.

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 P.O. box numberinstead of the street address.

Employer Identification Number.Youshould have only one employeridentification number. If you have morethan one number, notify the InternalRevenue Service Center, at theappropriate address shown underGeneral Instruction J above. Inform themwhat numbers you have, the name andaddress to which each number was

assigned, and the address of yourprincipal office. The IRS will then adviseyou which number to use.

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

60-Month Termination Under Section507(b)(1)(B).Check the box in F onpage 1 of Form 990-PF if you areterminating your private foundationstatus under the 60-month provisions ofsection 507(b)(1)(B) during the periodcovered by this return. To begin such atermination, a private foundation musthave given advance notice to its keyDistrict Director and provided theinformation outlined in Regulationssection 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.

Type of Organization.Check the blockfor Exempt private foundation if thefoundation has a ruling or determinationletter from the IRS in effect thatrecognizes its exemption from Federalincome tax as an organization describedin section 501(c)(3) or if theorganizations exemption application ispending with IRS. Check the 4947(a)(1)trust block if the trust is a nonexemptcharitable trust treated as a privatefoundation. All other filers should checkthe Other taxable private foundationblock.

Fair Market Value of Assets.In blockI on page 1 of Form 990-PF, enter thefair market value of all assets thefoundation held at the end of the taxyear. Note: This amount should be thesame as the figure reported in Part II,column (c), line 16.

Rounding Off to Whole-DollarAmounts.You may show the money

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

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

Attachments.Use the schedules onthe official form unless you need more

space. If you use attachments, theymust:

1. State Form 990-PF and the taxyear,

2. Show the organizations name andemployer identification number,

3. Include the information required bythe form,

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

5. Be on the same size paper as theform.


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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, you are to analyze amounts youentered in column (a) and on line 5b.

Column (a)Revenue and

Expenses per BooksRevenue

Enter in column (a) all items ofrevenue shown in the books and recordsthat increased 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 thecontributions 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.

In determining whether a person hascontributed $5,000 or more, total onlygifts of $1,000 or more from eachperson. Separate and independent giftsneed not be totaled if less than $1,000.If a contribution is in the form ofproperty, furnish a description and thefair market value of the property.

The term personincludes individuals,

fiduciaries, partnerships, corporations,associations, trusts, and exemptorganizations.

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 on lines 1 and 2only.

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-bearing

accounts and temporary cashinvestments, such as money marketfunds, commercial paper, certificates ofdeposit, and U.S. Treasury bills or othergovernment obligations that mature inless than one 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 defined

in 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 thelife 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 line

11 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 tothe 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 is

per the books and may include gain onthe sale of assets used for charitablepurposes, the gain entered here will notnecessarily agree with that shown in theother columns.

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

Lines 10a, b, cGross profit on salesof inventory.Enter the gross sales(minus 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 theorganization 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 on

line 6.Do not include any expenses incurred

in the business activities such assalaries, taxes, rent, etc. Include theminstead on lines 13 through 23.

Line 11Other income.Enter thetotal of all other income of thefoundation for the year. Include royaltyincome, income from program-relatedinvestments (defined in the instructionsfor Part IX-B), and from other assetsused for charitable purposes (such asinterest earned on scholarship loans and

rents from low-income tenants), imputedinterest on certain deferred paymentsfigured under section 483, and anyinvestment income not reportable onlines 3 through 5. However, do notinclude unrealized gains and losses oninvestments carried at market value.Report those as fund balance or netasset adjustments in Part III. Attach aschedule showing the description andamount of the income.

Operating and Administrative

Expenses.Enter in column (a) all itemsof expense, shown in the books andrecords, that decreased the net assetsof the organization. However, do notinclude on lines 13 through 26 anyexpenses used to compute capital gainsand losses on lines 6, 7, and 8 orexpenses included in cost of goods soldon 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 -0-. Complete subpart 1 of PartVIII to show the compensation ofofficers, directors, foundation managers,

and trustees.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 benefitprograms (such as insurance, health,and welfare programs) that are not anincidental part of a pension plan.

Complete the return/report of the Form5500 series that is appropriate for yourplan. (See the instructions for Form 5500for information about employee welfarebenefit plans required to file that form.)

Also include in the total the amount ofFederal, state, and local payroll taxes forthe year, but only those that areimposed on the organization as anemployer. This would include theemployers share of Social Security andMedicare tax, 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 FICA 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.


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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. The

total 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 in the schedule, showthe amount of depreciation included incost of goods sold and not included online 19.

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

utilities and related expenses, e.g., heat,lights, water, power, telephone, sewer,trash removal, outside janitorial services,and similar services. Do not include anysalaries of your own employees whichare reportable on line 14.

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 distributingany 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. If

a 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, if

related 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 foundationunless 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, the

schedule 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 the

difference. 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 otherincome is to be included. No expensesare allowed as deductions.

Gross investment income means thetotal amount of investment income that

was 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)),and royalties received from assetsdevoted to charitable activities.Therefore, interest received on a studentloan would be includible in the grossinvestment income of a privatefoundation making the 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 given below, and theadditional rules for specific line items.

Do not include in column (b) anyinterest, dividends, rents or royalties(and related expenses) that werereported on Form 990-T because youhad gross income of $1,000 or morefrom a trade or business unrelated to

your charitable purpose.For example, investment income

derived from debt-financed propertyunrelated to your charitable purpose andcertain rents (and related expenses)treated as unrelated trade or businessincome should be reported on Form990-T. Income from debt-financedproperty that is not taxed under section511 is taxed under section 4940. Thus, ifthe debt/basis percentage of adebt-financed property is 80%, only80% of the gross income (and


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expenses) for that property is used tofigure the section 511 tax on Form990-T. The remaining 20% of the grossincome (and expenses) of that propertyis used to figure the section 4940 tax onnet investment income on Form 990-PF.(See Form 990-T and instructions formore information.)

Line 2Certain contributions fromsplit-interest trusts described insection 4947(a)(2).The income portionof distributions from split- interest trusts

is 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.Domestic organizationsenter the total of lines 1 through 11.

Exempt foreign organizations enter thetotal 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)),and royalties, 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 to Part IX-A.

Note: The deduction for expenses paidor incurred in any tax year for producinggross investment income earnedincident to a charitable function cannot

be 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 1991 from historicbuildings held open to the public,deductions for amounts paid or incurredin 1991 for the production of suchincome may not be more than theamount of rental income includible asgross investment income in column (b)

for 1991.Do not include on lines 13 through 23

of 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, however, includethe section 4940 tax paid or incurred onnet investment income or the section511 tax on unrelated business income.Sales taxes may not be deductedseparately, but must be treated as a partof the cost of acquired property, or as areduction of the amount realized ondisposition of the 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 on 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, but only for an asset used forthe production 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 you are a domestic organization andline 26 is more than line 12 (i.e.,expenses exceed income), enter -0-,and not a negative amount.

Column (c)Adjusted Net Income

Note: Nonoperating PrivateFoundationsRefer to Special Rule1,below to determine whether you arerequired to make any entries in

column (c).Revenue

In general, adjusted net income is theamount by which a private foundationsgross income is more than the expensesof earning the income. The modificationsand exclusions explained below areapplied to gross income and expensesin figuring adjusted net income.

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

or long-term capital gains or losses.Nonoperating private foundations shouldfollow the special rules that apply tothem.

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

Private Operating Foundations.Allorganizations that claim status as privateoperating foundations under section4942(j)(3) or 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 in lines 3through 27c and Special Rule 3 andExamples (i) and (ii) given below.

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

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

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

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

3. The expenses attributable to eachspecific charitable activity, limited by theamount of income derived from theactivity, must be reported in column (c)on lines 13 through 26. If the expensesof any charitable activity exceed theincome generated by that activity, theexcess of these expenses over the


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income, and only that excess, shouldbe reported in column (d). Note theexamples given below.

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

(ii)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) and

the 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 Foundationsshould see the above instruct ions. )

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 (section

1231) and held for more than one 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, since Part IVdoes not take into account capital gainsand losses related to debt-financedproperty, any short-term capital gain ondebt-financed property would have to betaken 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 tax

year as qualifying distributions to:a. a private foundation, which is not a

private operating foundation, if theamounts 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).

Operating and AdministrativeExpenses

Deductible expenses include that partof a private foundations operatingexpenses that is paid or incurred toproduce or collect gross incomereported on lines 311 of column (c). Ifonly a 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 derived from the property, theexcess will not be allowed as adeduction, but may be treated as aqualifying distribution in Part I, column(d). (See Examples (i) and (ii) given onthis 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 allowed,but 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 purposes

of the tax on net investment income.Line 21Travel, conferences, andmeetings.Enter the total amount ofexpenses 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 addition

to the applicable portion of expensesfrom column (a), also include any netloss from the sale or exchange of landor depreciable property that was held formore than one year and used in a tradeor business.

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

Operating and Administrative Expenses

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.

Expenses entered in column (d) relateto activities that constitute the charitablepurpose of the foundation. Include onlines 13 through 25 all expenses,including necessary and reasonableadministrative expenses, paid by the

foundation for religious, charitable,scientific, literary, educational, or otherpublic purposes, or for the prevention ofcruelty to children or animals.

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

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 was


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reportable 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 total qualifying distributions.

Generally, gifts and grants toorganizations described in section501(c)(3), that have been determined to

be publicly supported charities (i.e.,organizations that are not privatefoundations as defined in section509(a)), are qualifying distribut ions,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 through25. The schedule must include all the

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

Do not include contributions to

organizations 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) showthe fair market value at the end of theyear. Attached schedules must show theend-of-year value for each asset listed incolumns (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 theend-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 cashfunds, or any other non-interest-bearingaccount. Do not include advances to

employees or officers or refundabledeposits paid to suppliers or others.

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

Line 3Accounts receivable.Enterthe total accounts receivable (reducedby the corresponding allowance fordoubtful accounts) that arose from the

sale of goods 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 otheremployees 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 (andin 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.

Attached schedules.(a) In 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 theofficers, directors, etc. Travel advancesmade in connection with officialbusiness of the organization may also bereported as a single total.

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

Borrowers name and title.

Original amount.

Balance due.

Date of note.

Maturity date.

Repayment terms.

Interest rate.

Security provided by the borrower.

Purpose of the loan; and

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 of

notes 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, foundationmanager, or other disqualified person.

For a note receivable from any section501(c)(3) organization, list only the name


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of the borrower and the balance due onthe required schedule.

Loans receivable.Enter the grossamount of loans receivable, less theallowance for doubtful accounts, arisingfrom the normal activities of the filingorganization (such as scholarship loans).An itemized list of these loans is notrequired, but attach a scheduleindicating the total amount of each typeof loan outstanding. 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 anddeferred charges.Enter the amount ofshort-term and long-term prepaymentsof expenses attributable to one or morefuture accounting periods. Examplesinclude prepayments of rent, insurance,and pension costs, and expensesincurred in connection with a solicitationcampaign to be conducted in a futureaccounting period.

Lines 10a, b, and cInvestmentsgovernment obligations, corporatestocks and bonds.Enter the bookvalue (which may be market value) ofthese investments.

Attach a schedule that lists eachsecurity held at the end of the year andshows whether the security is listed atcost (including the value recorded at thetime of receipt in the case of donatedsecurities) or end-of-year market value.Do not include amounts shown on line2. Governmental obligations reported on

line 10a are those that mature in oneyear or more. Debt securities of the U.S.Government may be reported as a singletotal rather than itemized. Obligations ofstate and municipal governments mayalso be reported as a lump-sum total.Do not combine U.S. Governmentobligations with state and municipalobligations on this schedule.

Line 11Investmentsland, buildings,and equipment.Enter the book value(cost or other basis less accumulateddepreciation) of all land, buildings, andequipment held for investment purposes,such as rent

us internal revenue service: i990pf--1991

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