us internal revenue service: i990pf--2000

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2000 Department of the TreasuryInternal Revenue ServiceInstructions for Form990-PFReturn of Private Foundation or Section 4947(a)(1)Nonexempt Charitable Trust Treated as a PrivateFoundationSection references are to the Internal Revenue Code unless otherwise noted.

Contents Page

Changes To Note

q The Tax and Trade Relief Extension Actof 1998 changed the public inspectionrules. These new rules apply to any

Contents Page private foundation return with a due date(including extensions) after March 12,2000. The newspaper notice requirementis now eliminated. See GeneralInstruction Q for more information.q Line G on page 1 of the form has beenexpanded to include check boxes for aninitial return, final return, amended return,and name change in addition to address

change.q Line 6b on page 1 of the form is new.It asks for the gross sales price for allassets on line 6a. This line assists infiguring gross receipts for theorganization.q New questions 6a and 6b in Part VII-Bask about an organization's actitivitiesinvolving personal benefit contracts. Seethe instructions for line 6b on page 20 formore information.q An automatic 3-month extension of timeto file Form 990-PF is now available. Toapply for an automatic extension orrequest additional time to file, use new

Form 8868, Application for Extension ofTime To File an Exempt OrganizationReturn.

Photographs of MissingChildrenThe Internal Revenue Service is a proudpartner with the National Center forMissing and Exploited Children.Photographs of missing children selectedby the Center may appear in instructionson pages that would otherwise be blank.You can help bring these children homeby looking at the photographs and calling1-800-THE-LOST (1-800-843-5678) if you

recognize a child.

Phone HelpIf you have questions and/or need helpcompleting this form, please call1-877-829-5500. This toll-free telephoneservice is available Monday throughFriday from 8:00 a.m. to 9:30 p.m.Eastern time.

Part IVCapital Gains and Losses forTax on Investment Income . . . . 17

General Instructions

A. Who Must File . . . . . . . . . . 2Part VQualification Under Section

4940(e) for Reduced Tax on NetInvestment Income . . . . . . . . 18

B. Which Parts To Complete . . . . 2

C. Definitions . . . . . . . . . . . . 2

D. Other Forms You May Need To File 3 Part VIExcise Tax Based onInvestment Income . . . . . . . . 18E. Useful Publications . . . . . . . . 4

Part VII-AStatements RegardingActivities . . . . . . . . . . . . . 19

F. Use of Form 990-PF To SatisfyState Reporting Requirements . . 4

Part VII-BActivities for Which Form4720 May Be Required . . . . . . 20

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

Part VIIIInformation About Officers,Directors, Trustees, etc. . . . . . 20

H. Accounting Period . . . . . . . . 5

I. Accounting Methods . . . . . . . 5Part IX-ASummary of Direct

Charitable Activities . . . . . . . . 21J. When and Where To File . . . . 5

K. Extension of Time To File . . . . 5Part IX-BSummary of

Program-Related Investments . . 22L. Amended Return . . . . . . . . . 5

M. Penalty for Failure To FileTimely, Completely, or Correctly . 5

Part XMinimum Investment Return 22

Part XIDistributable Amount . . . 23N. Penalties for Not Paying Tax

on Time . . . . . . . . . . . . . 5 Part XIIQualifying Distributions . . 24

Part XIIIUndistributed Income . . 24O. Figuring and Paying Estimated Tax 6Part XIVPrivate Operating

Foundations . . . . . . . . . . . . 25P. Tax Payment Methods for Domestic

Private Foundations . . . . . . . 6Part XVSupplementary Information 26Q. Public Inspection Requirements . 6Part XVI-AAnalysis of

Income-Producing Activities . . . . 26R. Disclosures Regarding Certain

Information and Services Furnished 9Part XVI-BRelationship of Activities

to the Accomplishment of ExemptPurposes . . . . . . . . . . . . . 27

S. Organizations Organized orCreated in a Foreign Country orU.S. Possession . . . . . . . . . 9

Part XVIIInformation RegardingTransfers To and Transactions andRelationships With NoncharitableExempt Organizations . . . . . . 27

T. Liquidation, Dissolution, Termination,or Substantial Contraction . . . . 9

U. Filing Requirements DuringSection 507(b)(1)(B) Termination 9

Signature . . . . . . . . . . . . . . 28

V. Special Rules for Section507(b)(1)(B) Terminations . . . . 10 Paperwork Reduction Act Notice . . 28Exclusion Codes . . . . . . . . . . 29W. Rounding, Currency, and

Attachments . . . . . . . . . . . 10 Index . . . . . . . . . . . . . . . . 30

Specific Instructions

Completing the Heading . . . . . . 10

Part IAnalysis of Revenue andExpenses . . . . . . . . . . . . . 10

Part IIBalance Sheets . . . . . . 15

Part IIIAnalysis of Changes in NetAssets or Fund Balances . . . . . 17

Cat. No. 11290Y


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How To Get Forms andPublications

Personal Computer

You can access the IRS Web Site 24hours a day, 7 days a week atwww.irs.gov to:q Download forms, instructions, andpublications.q See answers to frequently asked tax

questions.q Search publications on-line by topic orkeyword.q Send us comments or request help viae-mail.q Sign up to receive local and national taxnews by e-mail.

You can also reach us using filetransfer protocol at ftp.irs.gov.

CD-ROM

Order Pub. 1796, Federal Tax Productson CD-ROM, and get:q Current year forms, instructions, andpublications.

q Prior year forms, instructions, andpublications.q Popular tax forms that may be filled inelectronically, printed out for submission,and saved for recordkeeping.q The Internal Revenue Bulletin.Buy the CD-ROM on the Internet atwww.irs.gov/cdorders from the NationalTechnical Information Service (NTIS) for$21 (no handling fee), or call1-877-CDFORMS (1-877-233-6767) tollfree to buy the CD-ROM for $21 (plus a$5 handling fee).

By Phone and In Person

You can order forms and publications 24hours a day, 7 days a week, by calling1-800-TAX-FORM (1-800-829-3676). Youcan also get most forms and publicationsat your local IRS office.

General InstructionsPurpose of form. Form 990-PF is used:q To figure the tax based on investmentincome, andq To report charitable distributions andactivities.

Also, Form 990-PF serves as asubstitute for the section 4947(a)(1)nonexempt charitable trust's income taxreturn, Form 1041, U.S. Income TaxReturn for Estates and Trusts, when thetrust has no taxable income.

A. Who Must FileForm 990-PF is an annual informationreturn that must be filed by:q Exempt private foundations (section6033(a), (b), and (c)).q Taxable private foundations (section6033(d)).

q Organizations that agree to privatefoundation status and whose applicationsfor exempt status are pending on the duedate for filing Form 990-PF.q Organizations that made an electionunder section 41(e)(6).q Organizations that are making a section507 termination.q Section 4947(a)(1) nonexemptcharitable trusts that are treated asprivate foundations (section 6033(d)).

Note: Include on the foundation's returnthe financial and other information of anydisregarded entity owned by thefoundation. See Regulations sections301.7701-1 through 3 for information onthe classification of certain businessorganizations including an eligible entitythat is disregarded as an entity separatefrom its owner (disregarded entity).

Other section 4947(a)(1) nonexemptcharitable trusts. Section 4947(a)(1)nonexempt charitable trusts that are nottreated as private foundations do not fileForm 990-PF. However, they may needto file Form 990, Return of OrganizationExempt From Income Tax, or Form990-EZ, Short Form Return ofOrganization Exempt From Income Tax.With either of these forms, the trust mustalso file Schedule A (Form 990),Organization Exempt Under Section501(c)(3) (Except Private Foundation),and Section 501(e), 501(f), 501(k),501(n), or Section 4947(a)(1) NonexemptCharitable Trust SupplementaryInformation. (See Form 990 and Form990-EZ instructions.)

B. Which Parts To CompleteThe parts of the form listed below do notapply to all filers. See How to avoid filingan incomplete return on this page forinformation on what to do if a part or anitem does apply.q Part I, column (c), applies only toprivate operating foundations and tononoperating private foundations thathave income from charitable activities.q Part II, column (c), with the exceptionof line 16, applies only to organizationshaving at least $5,000 in assets per booksat some time during the year. Line 16,column (c), applies to all filers.q Part IV does not apply to foreignorganizations.q Parts V and VI do not apply toorganizations making an election undersection 41(e).q Part X does not apply to foreignfoundations that check box D2 on page 1of Form 990-PF unless they claim statusas a private operating foundation.q Parts XI and XIII do not apply to foreignfoundations that check box D2 on page 1of Form 990-PF. However, check the boxat the top of Part XI. Part XI does notapply to private operating foundations.Also, if the organization is a privateoperating foundation for any of the years

shown in Part XIII, do not complete theportions that apply to those years.q Part XIV applies only to privateoperating foundations.q Part XV applies only to organizationshaving assets of $5,000 or more duringthe year. This part does not apply tocertain foreign organizations.How to avoid filing an incompletereturn.q Complete all applicable line items,

q Answer Yes, No, or N/A (notapplicable) to each question on the return,q Make an entry (including a zero whenappropriate) on all total lines, andq Enter None or N/A if an entire partdoes not apply.

Sequencing Chart To Complete theForm

You may find the following chart helpful.It limits jumping from one part of the formto another to compute an amount neededto complete an earlier part. If youcomplete the parts in the listed order, anyinformation you may need from another

part will already be entered.

C. Definitions

q A private foundation is a domestic orforeign organization exempt from incometax under section 501(a); described insection 501(c)(3); and is other than anorganization described in sections

509(a)(1) through (4).In general, churches, hospitals,

schools, and broadly publicly supportedorganizations are excluded from privatefoundation status by these sections.These organizations may be required tofile Form 990 (or Form 990-EZ) insteadof Form 990-PF.q A nonexempt charitable trust treatedas a private foundation is a trust that isnot exempt from tax under section 501(a)and all of the unexpired interests of whichare devoted to religious, charitable, orother purposes described in section170(c)(2)(B), and for which a deduction

was allowed under a section of the Codelisted in section 4947(a)(1).q A taxable private foundation is anorganization that is no longer exemptunder section 501(a) as an organizationdescribed in section 501(c)(3). Though itmay operate as a taxable entity, it willcontinue to be treated as a privatefoundation until that status is terminatedunder section 507.q A private operating foundation is anorganization that is described undersection 4942(j)(3) or (5). It means anyprivate foundation that spends at least

Step Part Step Part

1.................... IV 8 .................. XII, lines 142.................... I & II 9 .................. V & VI3.................... Heading 10 .................. XII, lines 564.................... III 11 .................. XI5.................... VII-A 12 .................. XIII6.................... VIII 13 .................. VII-B7.................... IX-A X 14 .................. XIV XVII

Page 2 Form 990-PF Instructions


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85% of the smaller of its adjusted netincome (figured in Part I) or its minimuminvestment return (figured in Part X)directly for the active conduct of theexempt purpose or functions for which thefoundation is organized and operated andthat also meets the assets test, theendowment test, or the support test(discussed in Part XIV).q A nonoperating private foundation isa private foundation that is not a privateoperating foundation.q A foundation manager is an officer,director, or trustee of a foundation, or anindividual who has powers similar to thoseof officers, directors, or trustees. In thecase of any act or failure to act, the termfoundation manager may also includeemployees of the foundation who havethe authority to act.q A disqualified person is:

1. A substantial contributor (seeinstructions for Part VII-A, line 10, onpage 19);

2. A foundation manager;

3. A person who owns more than 20%

of a corporation, partnership, trust, orunincorporated enterprise that is itself asubstantial contributor;

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

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

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

7. For purposes of section 4943

(excess business holdings), a disqualifiedperson also includes:

a. A private foundation that iseffectively controlled (directly or indirectly)by the same persons who control theprivate foundation in question, 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, and3 above, or members of their families,within the meaning of section 4946(d).q An organization is controlled by afoundation or by one or more disqualifiedpersons with respect to the foundation ifany of these persons may, by combiningtheir votes or positions of authority,require the organization to make anexpenditure or prevent the organizationfrom making an expenditure, regardlessof the method of control. Control isdetermined regardless of how thefoundation requires the contribution to beused.

D. Other Forms You MayNeed To FileForm W-2, Wage and Tax Statement.Form W-3, Transmittal of Wage and TaxStatements.

Form 941, Employer's Quarterly FederalTax Return. Used to report social security,Medicare, and income taxes withheld byan employer and social security andMedicare taxes paid by an employer.

If income, social security, and Medicaretaxes that must be withheld are notwithheld or are not paid to the IRS, aTrust Fund Recovery Penalty may apply.The penalty is 100% of such unpaidtaxes.

This penalty may be imposed on allpersons (including volunteers, see below)whom the IRS determines to beresponsible for collecting, accounting for,and paying over these taxes, and whowillfully did not do so.

This penalty does not apply to anyvolunteer, unpaid member of any boardof trustees or directors of a tax-exemptorganization, if this member:

1. Is solely serving in an honorarycapacity,

2. Does not participate in theday-to-day or financial activities of theorganization, and

3. Does not have actual knowledgeof the failure to collect, account for, andpay over these taxes.

However, this exception does not applyif it results in no person being liable for thepenalty.

Form 990-T, Exempt OrganizationBusiness Income Tax Return. Everyorganization exempt from income taxunder section 501(a) that has total grossincome of $1,000 or more from all tradesor businesses that are unrelated to theorganization's exempt purpose must filea return on Form 990-T. The form is alsoused by tax-exempt organizations toreport other additional taxes including theadditional tax figured in Part IV of Form8621, Return by a Shareholder of aPassive Foreign Investment Company orQualified Electing Fund.Form 990-W, Estimated Tax on UnrelatedBusiness Taxable Income for Tax-ExemptOrganizations (and on Investment Incomefor Private Foundations).Form 1041, U.S. Income Tax Return for

Estates and Trusts. Required of section4947(a)(1) nonexempt charitable truststhat also file Form 990-PF. However, if thetrust does not have any taxable incomeunder the income tax provisions (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 13, Part VII-A, of Form 990-PFand do not file Form 1041.

Form 1041-ES, Estimated Income Tax forEstates and Trusts.Form 1096, Annual Summary andTransmittal of U.S. Information Returns.Forms 1099-INT, MISC, OID, and R,Information returns for reporting certaininterest; miscellaneous income (e.g.,payments to providers of health andmedical services, miscellaneous incomepayments, and nonemployeecompensation); original issue discount;and distributions from retirement orprofit-sharing plans, IRAs, SEPs orSIMPLEs, and insurance contracts.Form 1120, U.S. Corporation Income TaxReturn. Filed by nonexempt taxableprivate foundations that have taxableincome under the income tax provisions(subtitle A of the Code). The Form 990-PFannual information return is also filed bythese taxable foundations.

Form 1120-POL, U.S. Income Tax Returnfor Certain Political Organizations.Section 501(c) organizations must fileForm 1120-POL if their politicalexpenditures and their net investmentincome both exceed $100 for the year.

Form 1128, Application To Adopt,Change, or Retain a Tax Year.Form 2220, Underpayment of EstimatedTax by Corporations, is used bycorporations and trusts filing Form 990-PFto see if the foundation owes a penaltyand to figure the amount of the penalty.Generally, the foundation is not requiredto file this form because the IRS canfigure the amount of any penalty and billthe foundation for it. However, completeand attach Form 2220 even if thefoundation does not owe the penalty if:q The annualized income or the adjustedseasonal installment method is used, or

q The foundation is a largeorganization, (see General Instruction O)computing its first required installmentbased on the prior year's tax.

If Form 2220 is attached, check the boxon line 8, Part VI, on page 4 of Form990-PF and enter the amount of anypenalty on this line.Form 4506-A, Request for PublicInspection or Copy of Exempt or PoliticalOrganization IRS Form.Form 4720, Return of Certain ExciseTaxes on Charities and Other PersonsUnder Chapters 41 and 42 of the InternalRevenue Code, is primarily used to

determine the excise taxes imposed on:acts of self-dealing between privatefoundations and disqualified persons;failure to distribute income; excessbusiness holdings; investments that

jeopardize the foundation's 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 990-PF Instructions Page 3


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Form 5500, Annual Return/Report ofEmployee Benefit Plan is used to reportinformation concerning employee benefitplans, Direct Filing Entities and fringebenefit plans.

Form 8109, Federal Tax Deposit Coupon.

Form 8282, Donee Information Return.Required of the donee of charitablededuction property that sells, exchanges,or otherwise disposes of the propertywithin 2 years after the date it receivedthe property.

Also required of any successor doneethat disposes of charitable deductionproperty within 2 years after the date thatthe donor gave the property to the originaldonee. (It does not matter who gave theproperty to the successor donee. It mayhave been the original donee or anothersuccessor donee.) For successor donees,the form must be filed only for anyproperty that was transferred by theoriginal donee after July 5, 1988.Form 8275, Disclosure Statement.Taxpayers and tax return preparersshould attach this form to Form 990-PF todisclose items or positions (except those

contrary to a regulationsee Form8275-R below) that are not otherwiseadequately disclosed on the tax return.The disclosure is made to avoid parts ofthe accuracy-related penalty imposed fordisregard of rules or substantialunderstatement of tax. Form 8275 is alsoused for disclosures relating to preparerpenalties for understatements due tounrealistic positions or for willful orreckless conduct.Form 8275-R, Regulation DisclosureStatement. Use this form to disclose anyitem on a tax return for which a positionhas been taken that is contrary to

Treasury regulations.Form 8300, Report of Cash PaymentsOver $10,000 Received in a Trade orBusiness. Used to report cash amounts inexcess of $10,000 that were received ina single transaction (or in two or morerelated transactions) in the course of atrade or business (as defined insection 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 8822, Change of Address.Form 8868, Application for Extension ofTime To File an Exempt OrganizationReturn.Form 8870, Information Return forTransfers Associated With CertainPersonal Benefit Contracts. Used toidentify those personal benefit contractsfor which funds were transferred to theorganization, directly or indirectly, as wellas the transferors and beneficiaries ofthose contracts.

E. Useful PublicationsThe following publications may be helpfulin preparing Form 990-PF:Publication 525, Taxable andNontaxable Income.

Publication 578, Tax Information forPrivate Foundations and FoundationManagers.

Publication 583, Starting a Business andKeeping Records.

Publication 598, Tax on UnrelatedBusiness Income of ExemptOrganizations.Publication 910, Guide to Free TaxServices.

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

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

F. Use of Form 990-PF ToSatisfy State Reporting

RequirementsSome states and local government unitswill accept a copy of Form 990-PF andrequired attachments instead of all or partof their own financial report forms.

If the organization plans to use Form990-PF to satisfy state or local filingrequirements, such as those from statecharitable solicitation acts, note thefollowing:Determine state filing requirements.Consult the appropriate officials of allstates and other jurisdictions in which theorganization does business to determinetheir specific filing requirements. Doingbusiness in a jurisdiction may include anyof the following:q Soliciting contributions or grants by mailor otherwise from individuals, businesses,or other charitable organizations,q Conducting programs,q Having employees within that

jurisdiction, orq Maintaining a checking account orowning or renting property there.Monetary tests may differ. Some or allof the dollar limitations that apply to Form990-PF when filed with the IRS may notapply when using Form 990-PF instead

of state or local report forms. IRS dollarlimitations that may not meet some staterequirements are the $5,000 total assetsminimum that requires completion of PartII, column (c), and Part XV; and the$50,000 minimum for listing the highestpaid employees and for listingprofessional fees in Part VIII.

Additional information may berequired. State and local filingrequirements may require attaching toForm 990-PF one or more of thefollowing:

q Additional financial statements, suchas a complete analysis of functionalexpenses or a statement of changes innet assets,q Notes to financial statements,q Additional financial schedules,q A report on the financial statements byan independent accountant, andq Answers to additional questions andother information.

Each jurisdiction may require theadditional material to be presented onforms they provide. The additionalinformation does not have to be submittedwith the Form 990-PF filed with the IRS.

If required information is not providedto a state, the organization may be askedby the state to provide it or to submit anamended return, even if the Form 990-PFis accepted by the IRS as complete.Amended returns. If the organizationsubmits supplemental information or filesan amended Form 990-PF with the IRS,it must also include a copy of theinformation or amended return to anystate with which it filed a copy of Form

990-PF.Method of accounting. Many statesrequire that all amounts be reportedbased on the accrual method ofaccounting.Time for filing may differ. The time forfiling Form 990-PF with the IRS may differfrom the time for filing state reports.

G. Furnishing Copies ofForm 990-PF to StateOfficialsThe foundation managers must furnish acopy of the annual return Form 990-PF

(and Form 4720 (if applicable)) to theattorney general of:

1. Each state required to be listed inPart VII-A, line 8a,

2. The state in which the foundation'sprincipal office is located, and

3. The state in which the foundationwas incorporated or created.

A copy of the annual return must besent to the attorney general at the sametime the annual return is filed with theIRS.Other requirements. If the attorneygeneral or other appropriate state officialof any state requests a copy of the annual

return, the foundation managers mustgive them a copy of the annual return.

Exceptions. These rules do not apply toany foreign foundation which, from thedate of its creation, has received at least85% of its support (excluding grossinvestment income) from sources outsidethe United States. (See Exceptions inGeneral Instruction Q for other exceptionsthat affect this type of organization.)



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Coordination with state reportingrequirements. If the foundationmanagers submit a copy of Form 990-PFand Form 4720 (if applicable) to a stateattorney general to satisfy a statereporting requirement, they do not haveto furnish a second copy to that attorneygeneral to comply with the InternalRevenue Code requirements discussed inthis section.

If there is a state reporting requirementto file a copy of Form 990-PF with a stateofficial other than the attorney general(such as the secretary of state), then thefoundation managers must also send acopy of the Form 990-PF and Form 4720(if applicable) to the attorney general ofthat state.

H. Accounting Period

1. File the 2000 return for the calendaryear 2000 or fiscal year beginning in2000. 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 the

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

3. For initial or final returns or achange in accounting period, the 2000form may also be used as the return fora short period (less than 12 months)ending November 30, 2001, or earlier.

In general, to change its accountingperiod the organization must file Form990-PF by the due date for the shortperiod resulting from the change. At thetop of this short period return, writeChange of Accounting Period.

If the organization changed itsaccounting period within the10-calendar-year period that includes thebeginning of the short period, and it hada Form 990-PF filing requirement at anytime during that 10-year period, it mustalso attach a Form 1128 to theshort-period return. See Rev. Proc. 85-58,1985-2 C.B. 740.

I. Accounting MethodsGenerally, you should report the financialinformation requested on the basis of theaccounting method the foundationregularly uses to keep its books andrecords.Exception. Complete Part I, column (d)on the cash receipts and disbursementsmethod of accounting.Change required by Statement ofFinancial Accounting Standards(SFAS) No. 116. Foundations that arechanging their methods of accounting forFederal income tax purposes to complywith SFAS 116 are not required to fileForm 3115, Application for Change in

Accounting Method. Foundations maychange to the methods described in SFAS116 for Federal income tax purposes forany tax year beginning after December15, 1994, by reflecting the change in themanner described in Notice 96-30, 1996-1C.B. 378.

J. When and Where To FileThis return must be filed by the 15th dayof the 5th month following the close of the

foundation's accounting period. If theregular due date falls on a Saturday,Sunday, or legal holiday, file by the nextbusiness day. If the return is filed late, seeGeneral Instruction M.

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

To file the return, mail or deliver it to:

Internal Revenue Service CenterOgden, UT 842010027

K. Extension of Time To FileA foundation uses Form 8868 to requestan automatic or additional extension oftime to file its return.

An automatic 3-month extension will begranted if you properly complete this form,file it, and pay any balance due by the duedate for Form 990-PF.

If more time is needed, Form 8868 isalso used to request an additionalextension of up to 3 months. However,these extensions are not automaticallygranted. To obtain this additionalextension of time to file, you must showreasonable cause for the additional timerequested.

L. Amended ReturnTo change the organization's return forany year, file an amended return,including attachments, with the correctinformation. The amended return mustprovide all the information required by theform and instructions, not just the new orcorrected information. Check theAmended Return box in G at the top ofthe return.

If the organization files an amendedreturn to claim a refund of tax paid undersection 4940 or 4948, it must file theamended return within 3 years after the

date the original return was due or filed,or within 2 years from the date the taxwas paid, whichever date is later.

State reporting requirements. SeeAmended returns under GeneralInstruction F.

Need a copy of an old return or form?Use Form 4506-A to obtain a copy of apreviously filed return. You can obtainblank forms for prior years by calling1-800-TAX-FORM (1-800-829-3676).

M. Penalty for Failure To FileTimely, Completely, orCorrectlyTo avoid filing an incomplete return orhaving to respond to requests for missinginformation, see General Instruction B.

Against the organization. If anorganization does not file timely andcompletely, or does not furnish the correctinformation, it must pay $20 for each day

the failure continues ($100 a day if it is alarge organization), unless it can showthat the failure was due to reasonablecause. Those filing late (after the duedate, including extensions) must attachan explanation to the return. Themaximum penalty for each return will notexceed the smaller of $10,000 ($50,000for a large organization) or 5% of thegross receipts of the organization for theyear.

Large organization. A largeorganization is one that has gross receiptsexceeding $1 million for the tax year.

Gross receipts. Gross receipts meansthe gross amount received during thefoundation's annual accounting periodfrom all sources without reduction for anycosts or expenses.

To figure the foundation's grossreceipts, start with Part I, line 12 column(a) then add to it lines 6b and 10b, thensubtract line 6a from that amount.Against the responsible person. TheIRS will make written demand that thedelinquent return be filed or theinformation furnished within a reasonabletime after the mailing of the notice of thedemand. The person failing to comply withthe demand on or before the datespecified will have to pay $10 for each

day the failure continues, unless there isreasonable cause. The maximum penaltyimposed on all persons for any one returnis $5,000. If more than one person isliable for any failures, all such persons are

jointly and severally liable for such failures(see section 6652(c)).

Other penalties. Because this returnalso satisfies the filing requirements of atax return under section 6011 for the taxon investment income imposed by section4940 (or 4948 if an exempt foreignorganization), the penalties imposed bysection 6651 for not filing a return (withoutreasonable cause) also apply.

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

N. Penalties for Not PayingTax on TimeThere is a penalty for not paying tax whendue (section 6651). The penalty generallyis 1/2 of 1% of the unpaid tax for eachmonth or part of a month the tax remainsunpaid, not to exceed 25% of the unpaid



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tax. If there was reasonable cause for notpaying the tax on time, the penalty canbe waived. However, interest is chargedon any tax not paid on time, at the rateprovided by section 6621.

Estimated tax penalty. The section 6655penalty for failure to pay estimated taxapplies to the tax on net investmentincome of domestic private foundationsand section 4947(a)(1) nonexemptcharitable trusts. The penalty also appliesto any tax on unrelated business incomeof a private foundation. Generally, if aprivate foundation's tax liability is $500 ormore and it did not make the requiredpayments on time, then it is subject to thepenalty.

For more details, see the discussionof Form 2220 in General Instruction D.

O. Figuring and PayingEstimated TaxA domestic exempt private foundation, adomestic taxable private foundation, or anonexempt charitable trust treated as aprivate foundation must make estimated

tax payments for the excise tax based oninvestment income if it can expect itsestimated tax (section 4940 tax minusallowable credits) to be $500 or more. Thenumber of installment payments it mustmake under the depository method isdetermined at the time during the yearthat it first meets this requirement. Forcalendar-year taxpayers, the first depositof estimated taxes for a year generallyshould be made by May 15 of the year.

Although Form 990-W is used primarilyto compute the installment payments ofunrelated business income tax, it is alsoused to determine the timing and amountsof installment payments of the section

4940 tax based on investment income.Compute separately any requireddeposits of excise tax based oninvestment income and unrelatedbusiness income tax.

To figure the estimated tax for theexcise tax based on investment income,apply the rules of Part VI to your tax year2001 estimated amounts for that part.Enter the tax you figured on line 9a ofForm 990-W.

The Form 990-W line items andinstructions for large organizations alsoapply to private foundations. For purposesof paying the estimated tax on net

investment income, a large organizationis one that had net investment income of$1 million or more for any of the 3 taxyears immediately preceding the tax yearinvolved.Penalty. A foundation that does not paythe proper estimated tax when due maybe subject to the estimated tax penalty forthe period of the underpayment. (Seesections 6655(b) and (d) and the Form2220 instructions.)

Special Rules

Section 4947(a)(1) nonexemptcharitable trusts should use Form1041-ES for paying any estimated tax onincome subject to tax under section 1.Form 1041-ES also contains theestimated tax rules for paying the tax onthat income.

Taxable private foundations should useForm 1120-W for figuring any estimatedtax on income subject to tax under section

11. Form 1120-W contains the estimatedtax rules for paying the tax on thatincome.

P. Tax Payment Methods forDomestic PrivateFoundationsWhether the foundation uses thedepository method of tax payment or thespecial option for small foundations, itmust pay the tax due (see Part VI) in fullby the 15th day of the 5th month after theend of its tax year.

Depository Method of Tax Payment

Some foundations (described below) arerequired to electronically deposit alldepository taxes, including their taxpayments for the excise tax based oninvestment income.

Electronic Deposit Requirement

The foundation must make electronicdeposits of all depository taxes (such asemployment tax or the excise tax basedon investment income) using theElectronic Federal Tax Payment System(EFTPS) in 2001 if:q The total deposits of such taxes in 1999were more than $200,000 orq The foundation was required to useEFTPS in 2000.

If the foundation is required to useEFTPS and fails to do so, it may besubject to a 10% penalty. If the foundationis not required to use EFTPS, it mayparticipate voluntarily. To enroll in or getmore information about EFTPS, call1-800-555-4477 or 1-800-945-8400.

Depositing on time. For deposits madeby EFTPS to be on time, the foundationmust initiate the transaction at least 1business day before the date the depositis due.

Deposits With Form 8109

If the foundation does not use EFTPS,deposit estimated tax payments and anybalance due for the excise tax based oninvestment income with Form 8109,Federal Tax Deposit Coupon. If you donot have a preprinted Form 8109, useForm 8109-B to make deposits. You canget this form only by calling1-800-829-1040. Be sure to have youremployer identification number (EIN)ready when you call.

Do not send deposits directly to an IRSoffice; otherwise, the foundation mayhave to pay a penalty. Mail or deliver thecompleted Form 8109 with the paymentto an authorized depositary, i.e., acommercial bank or other financialinstitution authorized to accept Federaltax deposits.

Make checks or money orders payableto the depositary. To help ensure propercrediting, write the foundation's EIN, thetax period to which the deposit applies,and Form 990-PF on the check ormoney order. Be sure to darken the990-PF box on the coupon. Records ofthese deposits will be sent to the IRS.

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

Special Payment Option for SmallFoundations

A private foundation may enclose a checkor money order, payable to the UnitedStates Treasury, with the Form 990-PFor Form 8868, if it meets all of the

following requirements.1. The foundation must not be

required to use EFTPS.

2. The tax based on investmentincome shown on line 5, Part VI of Form990-PF is less than $500.

3. If Form 8868 is used, the amountentered on line 3a of Part I or 8a of PartII of Form 8868 must be less than $500and it must be the full balance due.

Be sure to write 2000 Form 990-PFand the foundation's name, address, andEIN on its check or money order.

CAUTION!

Foreign organizations should see

the instructions for Part VI, line 9.

Q. Public InspectionRequirementsA private foundation must make its annualreturns and exemption applicationavailable for public inspection.

Definitions

Annual returns. An annual return is anexact copy of the Form 990-PF that wasfiled with the IRS including all schedules,attachments, and supporting documents.It also includes any amendments to the

original return (amended return).By annual returns, we mean any annual

return (defined above) that is not morethan 3 years old from the later of:

1. The date the return is required tobe filed (including extensions) or

2. The date that the return is actuallyfiled.

Exemption application is an applicationfor tax exemption and includes (except asdescribed later):q Any prescribed application form (suchas Form 1023 or Form 1024),



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q All documents and statements the IRSrequires an applicant to file with the form,q Any statement or other supportingdocument submitted in support of theapplication, andq Any letter or other document issued bythe IRS concerning the application.

An application for tax exemption doesnot include:q Any application for tax exemption filedbefore July 15, 1987, unless the private

foundation filing the application had acopy of the application on July 15, 1987,orq Any material that is not available forpublic inspection under section 6104.

Who Must Make the AnnualReturns and ExemptionApplication Available for PublicInspection?

The foundation's annual returns andexemption application must be madeavailable to the public by the privatefoundation itself and by the IRS.

How Does a Private FoundationMake Its Annual Returns andExemption Application Availablefor Public Inspection?

A private foundation must make its annualreturns and exemption applicationavailable in 2 ways:

1. By office visitation and

2. By providing copies or making themwidely available.

Public Inspection by Office Visitation

A private foundation must make its annualreturns and exemption applicationavailable for public inspection without

charge at its principal, regional, anddistrict offices during regular businesshours.

Conditions that may be set for publicinspection at the office. A privatefoundation:q May have an employee present,q Must allow the individual conducting theinspection to take notes freely during theinspection, andq Must allow an individual to make photocopies of documents at no charge butonly if the individual brings photocopyingequipment to the place of inspection.

Determining if a site is a regional or

district office. A regional or district officeis any office of a private foundation, otherthan its principal office, that has paidemployees whose total number of paidhours a week are normally 120 hours ormore. Include the hours worked bypart-time (as well as fulltime) employeesin making that determination.

What sites are not considered aregional or district office. A site is notconsidered a regional or district office if:

1. The only services provided at thesite further the foundations exempt

purposes (e.g., day care, health care, orscientific or medical research) and

2. The site does not serve as an officefor management staff, other thanmanagers who are involved only inmanaging the exempt function activitiesat the site.

What if the private foundation does notmaintain a permanent office? If theprivate foundation does not maintain apermanent office, it will comply with the

public inspection by office vistationrequirement by making the annual returnsand exemption application available at areasonable location of its choice. It mustpermit public inspection:q Within a reasonable amount of timeafter receiving a request for inspection(normally, not more than 2 weeks) andq At a reasonable time of day.

Optional method of complying. If aprivate foundation that does not have apermanent office wishes not to allow aninspection by office visitation, it may maila copy of the requested documentsinstead of allowing an inspection.However, it must mail the documentswithin 2 weeks of receiving the requestand may charge for copying and postageonly if the requester consents to thecharge.

Private foundations with apermanent office but limited or nohours. Even if a private foundation hasa permanent office but no office hours orvery limited hours during certain times ofthe year, it must still meet the officevisitation requirement. During thoseperiods when office hours are limited ornot available, follow the rules above underWhat if the private foundation does notmaintain a permanent office? to meet

this requirement.Public InspectionProviding Copies

A private foundation must provide copiesof its annual returns or exemptionapplication to any individual who makesa request for a copy in person or in writingunless it makes these documents widelyavailable.In-person requests for documentcopies. A private foundation mustprovide copies to any individual whomakes a request in person at the privatefoundation's principal, regional, or districtoffices during regular business hours onthe same day that the individual makes

the request.Accepted delay in fulfilling an

in-person request. If unusualcircumstances exist and fulfilling arequest on the same day places anunreasonable burden on the privatefoundation, it must provide copies by theearlier of:q The next business day following the daythat the unsusal circumstances end orq The fifth business day after the date ofthe request.

Examples of unusual circumstancesinclude:q Receipt of a volume of requests (fordocument copies) that exceeds theprivate foundations daily capacity to makecopies,q Requests received shortly before theend of regular business hours that requirean extensive amount of copying, orq Requests received on a day when theorganization's managerial staff capable of

fulfilling the request is conducting officialduties (e.g., student registration orattending an offsite meeting orconvention) instead of its regularadministrative duties.

Use of local agents for providingcopies. A private foundation may use alocal agent to handle in-person requestsfor document copies. If a privatefoundation uses a local agent, it mustimmediately provide the local agent'sname, address, and telephone number tothe requester.

The local agent must:q Be located within reasonable proximity

to the principal, regional, or district officewhere the individual makes the requestandq Provide document copies within thesame time frames as the privatefoundation.

Written requests for document copies.If a private foundation receives a writtenrequest for a copy of its annual returnsor exemption application (or parts of thesedocuments), it must give a copy to therequester. However, this rule only appliesif the request:q Is addressed to a private foundation'sprincipal, regional, or district office,q

Is delivered to that address by mail,electronic mail (e-mail), facsimile (fax), ora private delivery service approved by theIRS (see Where To File in theInstructions for Form 990-T for a list), andq Gives the address to which thedocument copies should be sent.

How and when a written request isfulfilled.q Requested document copies must bemailed in 30 days from the date theprivate foundation receives the request.q Unless other evidence exists, a requestor payment that is mailed is considered tobe received by the private foundation 7

days after the postmark date.q If an advance payment is required,copies must be provided in 30 days fromthe date payment is received.q If the private foundation requirespayment in advance and it receives arequest without payment or withinsufficient payment, it must notify therequester of the prepayment policy andthe amount due within 7 days from thedate it receives the request.q A request that is transmitted to theprivate foundation by e-mail or fax is



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considered received the day the requestis transmitted successfully.q Requested documents can be e-mailedinstead of the traditional method ofmailing if the requester consents to thismethod.

A document copy is considered asprovided on the:q Postmark date,q Private delivery date,q Registration date for certified or

registered mail,q Postmark date on the sender's receiptfor certified or registered mail, orq Day the email is successfulytransmitted (if the requester agreed to thismethod).

Requests for parts of a documentcopy. A person can request all or anyspecific part or schedule of the annualreturns or exemption application and theprivate foundation must fulfill their requestfor a copy.

Can an agent be used to providecopies? A private foundation can use anagent to provide document copies for the

written requests it receives. However, theagent must provide the document copiesunder the same conditions that areimposed on the private foundation itself.Also, if an agent fails to provide thedocuments as required, the privatefoundation will continue to be subject topenalties.

Example. The ABC Foundationretained an agent to provide copies for allwritten requests for documents. However,ABC Foundation received a request fordocument copies before the agent did.

The deadline for providing a responseis referenced by the date that the ABC

Foundation received the request and notwhen the agent received it. If the agentreceived the request first, then a responsewould be referenced to the date that theagent received it.

Can a fee be charged for providingcopies? A private foundation may chargea reasonable fee for providing copies.Also, it can require the fee to be paidbefore providing a copy of the requesteddocument.

What is a reasonable fee? A fee isreasonable only if it is no more than theper-page copying fee charged by the IRSfor providing copies, plus no more thanthe actual postage costs incurred toprovide the copies.

The current copying fee charged by theIRS is $1.00 for the first page of eachreturn and 15 for each additional page.

What forms of payment must theprivate foundation accept? The formof payment depends on whether therequest for copies is made in person or inwriting.

Cash and money order must beaccepted for in-person requests fordocument copies. The private foundation,

if it wishes, may accept additional formsof payment.

Certified check, money order, andeither personal check or credit card mustbe accepted for written requests fordocument copies. The private foundation,if it wishes, may accept additional formsof payment.

Other fee information. If a privatefoundation provides a requester withnotice of a fee and the requester does not

pay the fee in 30 days, it may ignore therequest.

If a requester's check does not clear ondeposit, it may ignore the request.

If a private foundation does not requireprepayment and the requester does notprepay, the private foundation mustreceive consent from the requester if thecopying and postage charge exceeds$20.

Private foundations subject to aharrassment campaign. If the IRSdetermines that a private foundation isbeing harrassed, it is not required tocomply with any request for copies that itreasonably believes is part of theharrassment campaign.

A group of requests for a privatefoundation's annual returns or exemptionapplication is indicative of a harrassmentcampaign if the requests are part of asingle coordinated effort to disrupt theoperations of the private foundation ratherthan to collect information about it.

See Regulations section 301.6104(d)-3for more information.Requests that may be disregardedwithout IRS approval. A privatefoundation may disregard any request forcopies of all or part of any documentbeyond the first two received within any

30-day period or the first four receivedwithin any 1-year period from the sameindividual or the same address.

Making the Annual Returns andExemption Application WidelyAvailable

A private foundation does not have toprovide copies of its annual returns and/orits exemption application if it makes thesedocuments widely available. However, itmust still allow public inspection by officevisitation.

How does a private foundation makeits annual returns and exemption

application widely available? A privatefoundation's annual returns and/orexemption application is widely availableif it meets all four of the followingrequirements:

1.The internet postingrequirement This is met if:q The document is posted on a WorldWide Web page that the privatefoundation establishes and maintains orq The document is posted as part of adatabase of like documents of othertax-exempt organizations on a World

Wide Web page established andmaintained by another entity.

2.Additional posting informationrequirement This is met if:q The World Wide Web page throughwhich the document is available clearlyinforms readers that the document isavailable and provides instructions fordownloading the document;q After it is downloaded and viewed, theweb document exactly reproduces the

image of the annual returns or exemptionapplication as it was originally filed withthe IRS, except for any informationpermitted by statute to be withheld frompublic disclosure; andq Any individual with access to theInternet can access, download, view, andprint the document without specialcomputer hardware or software requiredfor that format (except software that isreadily available to members of the publicwithout payment of any fee) and withoutpayment of a fee to the private foundationor to another entity maintaining the webpage.

3.Reliability and accuracyrequirementsTo meet this, the entitymaintaining the World Wide Web pagemust:q Have procedures for ensuring thereliability and accuracy of the documentthat it posts on the page;q Take reasonable precautions to preventalteration, destruction, or accidental lossof the document when posted on its page;andq Correct or replace the document if aposted document is altered, destroyed,or lost.

4.Notice requirement To meetthis, a private foundation must notify anyindividual requesting a copy of its annualreturns and/or exemption applicationwhere the documents are available(including the Internet address). If therequest is made in person, the privatefoundation must notify the individualimmediately. If the request is in writing, itmust notify the individual within 7 days ofreceiving the request.

Penalties

A penalty may be imposed on any personwho does not make the annual returns(including all required attachments toeach return) or the exemption application

available for public inspection accordingto the section 6104(d) rules discussedabove. If more than one person fails tocomply, each person is jointly andseverally liable for the full amount of thepenalty. The penalty amount is $20 foreach day during which a failure occurs.The maximum penalty that may beimposed on all persons for any 1 annualreturn is $10,000. There is no maximumpenalty amount for failure to make theexemption application available for publicinspection.



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Any person who willfully fails to complywith the section 6104(d) public inspectionrequirements is subject to an additionalpenalty of $5,000 (section 6685).

Requirements Placed on the IRS

A private foundation's annual returns andapproved exemption application may beinspected by the public at an IRS office foryour area or at the IRS National Office inWashington, DC.

To request a copy or to inspect anannual return or an approved exemptionapplication, complete Form 4506-A. Thereis a charge for photocopying.

R. Disclosures RegardingCertain Information andServices FurnishedA section 501(c) organization that offersto sell or solicits money for specificinformation or a routine service to anyindividual that could be obtained by theindividual from a Federal Governmentagency free or for a nominal charge mustdisclose that fact conspicuously when

making such offer or solicitation.Any organization that intentionally

disregards this requirement will be subjectto a penalty for each day the offers orsolicitations are made. The penalty is thegreater of $1,000 or 50% of the total costof the offers and solicitations made onthat day.

S. Organizations Organizedor Created in a ForeignCountry or U.S. PossessionIf you apply any provision of any U.S. taxtreaty to compute the foundation's taxable

income, tax liability, or tax credits in amanner different from the 990-PFinstructions, attach an explanation.

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

Section 4948(a) imposes a 4% tax onthe gross investment income from U.S.sources (i.e., income from dividends,

interest, rents, payments received onsecurities loans (as defined in section512(a)(5)), and royalties not reported onForm 990-T of an exempt foreign privatefoundation. This tax replaces the section4940 tax on the net investment incomeof a domestic private foundation. To payany tax due, see the instructions for PartVI, line 9.

Taxable foreign private foundations andforeign section 4947(a)(1) nonexemptcharitable trusts are not subject to theexcise taxes under sections 4948(a) and

4940, but are subject to income tax undersubtitle A of the Code.

Certain foreign foundations are notrequired to send copies of annual returnsto state officials, or comply with the publicinspection and notice requirements ofannual returns. (See General InstructionsG and Q.)

T. Liquidation, Dissolution,Termination, or Substantial

ContractionIf there is a liquidation, dissolution,termination, or substantial contraction(defined below) of the organization,attach:

1. A statement to the returnexplaining it,

2. A certified copy of the liquidationplan, resolution, etc. (if any) and allamendments or supplements that werenot previously filed,

3. A schedule that lists the names andaddresses of all recipients of assets, and

4. An explanation of the nature and

fair market value of the assets distributedto each recipient.

Additional requirements. For acomplete corporate liquidation or trusttermination, attach a statement as towhether a final distribution of assets wasmade and the date it was made (ifapplicable).

Also, if the organization:q Has ceased to exist, check the FinalReturn box in G at the top of page 1 ofthe return.q Is terminating its private foundationstatus under section 507(b)(1)(B), seeGeneral Instructions U and V.

Relief from public inspectionrequirements. If the organization hasterminated its private foundation statusunder section 507(b)(1)(A), it does nothave to comply with the notice and publicinspection requirements of their return forthe termination year.Filing date. See General Instruction J forthe filing date.Definitions. The term substantialcontraction includes any partialliquidation or any other significantdispositionof assets. However, this doesnot include transfers for full and adequateconsideration or distributions of currentincome.

A significant disposition of assetsdoes not include any disposition for a taxyear if:

1. The total of the dispositions for thetax year is less than 25% of the fairmarket value of the net assets of theorganization at the beginning of the taxyear, and

2. The total of the related dispositionsmade during prior tax years (if adisposition is part of a series of relateddispositions made during these prior taxyears) is less than 25% of the fair market

value of the net assets of the organizationat the beginning of the tax year in whichany of the series of related dispositionswas made.

The facts and circumstances of theparticular case will determine whether asignificant disposition has occurredthrough a series of related dispositions.Ordinarily, a distribution described insection 170(b)(1)(E)(ii) (relating to privatefoundations making qualifyingdistributions out of corpus equal to 100%of contributions received during thefoundation's tax year) will not be takeninto account as a significant dispositionof assets. See Regulations section1.170A-9(g)(2).

U. Filing RequirementsDuring Section 507(b)(1)(B)TerminationAlthough an organization terminating itsprivate foundation status under section507(b)(1)(B) may be regarded as a publiccharity for certain purposes, it isconsidered a private foundation for filing

requirement purposes and it must file anannual return on Form 990-PF. The returnmust be filed for each year in the60-month termination period, if that periodhas not expired before the due date of thereturn.

Regulations under section 507(b)(1)(B)(iii) specify that within 90 days after theend of the termination period theorganization must supply information tothe IRS establishing that it has terminatedits private foundation status and,therefore, qualifies as a public charity.Send the information to:

Internal Revenue Service

TE/GE DivisionCentralized Files Unit

P.O. Box 2508

Cincinnati, OH 45201

If information is furnished establishinga successful termination, then, for the finalyear of the termination period, theorganization should comply with the filingrequirements for the type of public charityit has become. See the Instructions forForm 990 and Schedule A (Form 990) fordetails on filing requirements. This applieseven if the key district has not confirmedthat the organization has terminated itsprivate foundation status by the time thereturn for the final year of the terminationis due (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) butnot previously filed if it is later determinedthat the organization did not terminate itsprivate foundation status. Interest on anytax due will be charged from the originaldue date of the Form 990-PF, butpenalties under sections 6651 and 6652



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will not be assessed if the Form 990-PFis filed within the period allowed by thekey district.

V. Special Rules for Section507(b)(1)(B) TerminationsIf the organization is terminating its privatefoundation status under the 60-monthprovisions of section 507(b)(1)(B), specialrules apply. (See General Instructions Tand U.) Under these rules, the

organization may file Form 990-PFwithout paying the tax based oninvestment income if it filed a consentunder section 6501(c)(4) with itsnotification to the TE/GE Division at theCincinnati address given on page 9 of itsintention to begin a section 507(b)(1)(B)termination. The consent provides that theperiod of limitation on the assessment ofexcise tax under section 4940 or 4948based on investment income for any taxyear in the 60-month period will not expireuntil at least 1 year after the period forassessing a deficiency for the last taxyear in which the 60-month period wouldnormally expire. Any foundation notpaying the tax when it files Form 990-PFmust attach a copy of the signed consent.

If the foundation did not file theconsent, the tax must be paid in thenormal manner as explained in GeneralInstructions O and P. The organizationmay file a claim for refund aftercompleting termination or during thetermination period. The claim for refundmust be filed on time and the organizationmust supply information establishing thatit qualified as a public charity for theperiod for which it paid the tax.

W. Rounding, Currency, and

AttachmentsRounding off to whole-dollar amounts.You may show the money items on thereturn and accompanying schedules aswhole-dollar amounts. To do so, drop anyamount less than 50 cents and increaseany amount from 50 cents through 99cents to the next higher dollar.

Currency and language requirements.Report all amounts in U.S. dollars (stateconversion rate used). Report all items intotal, including amounts from both U.S.and non-U.S. sources. All informationmust be in English.

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

On each attachment, write:q Form 990-PF,q The tax year,q The corresponding schedule numberor letter,q The organization's name and EIN, andq The information requested using theformat and line sequence of the printedform.

Also, show totals on the printed forms.

Specific Instructions

Completing the HeadingThe following instructions are keyed toitems in the Form 990-PF heading.

Name and Address

If the organization received a Form990-PF package from the IRS with apeel-off label, please use it. If the nameor address 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 box number insteadof the street address.

AEmployer IdentificationNumber

The organization should have only oneemployer identification number. If it hasmore than one number, notify the InternalRevenue Service Center at theappropriate address shown underGeneral Instruction J. Explain whatnumbers the organization has, the nameand address to which each number wasassigned, and the address of theorganization's principal office. The IRSwill then advise which number to use.

BTelephone Number

Enter a foundation telephone number(including the area code) that the public

and government regulators may use toobtain information about the foundation'sfinances and activities. This informationshould be available at this telephonenumber during normal business hours. Ifthe foundation does not have a telephone,enter a telephone number of a foundationofficial who can provide this informationduring normal business hours.

D2Foreign Organizations

If the foreign organization meets the 85%test of Regulations section 53.4948-1(b),then:

1. Check the box in D2 on page 1 ofForm 990-PF,

2. Check the box at the top of Part XI,

3.Do not fill in Parts XI and XIII,

4.Do not fill in Part X unless it isclaiming status as a private operatingfoundation, and

5. Attach the computation of the 85%test to Form 990-PF.

ESection 507(b)(1)(A)Terminations

A private foundation that has terminatedits status as such under section

507(b)(1)(A), by distributing all its netassets to one or more public charitieswithout keeping any right, title, or interestin those assets, should check the box inE on page 1 of Form 990-PF. SeeGeneral Instructions T and Q.

F60-Month Termination UnderSection 507(b)(1)(B)

Check the box in F on page 1 of Form990-PF if the organization is terminatingits private foundation status under the60-month provisions of section507(b)(1)(B) during the period covered bythis return. To begin such a termination,a private foundation must have givenadvance notice to the TE/GE Division atthe Cincinnati address given on page 9and provided the information outlined inRegulations section 1.507-2(b)(3). SeeGeneral Instruction U for informationregarding filing requirements during asection 507(b)(1)(B) termination.

See General Instruction V forinformation regarding payment of the taxbased on investment income (computedin Part VI) during a section 507(b)(1)(B)

termination.

HType of Organization

Check the box for Section 501(c)(3)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 the organization'sexemption application is pending with theIRS.

Check the Section 4947(a)(1)nonexempt charitable trust box if the trustis a nonexempt charitable trust treated asa private foundation. All others, check theOther taxable private foundation box.

IFair Market Value of All Assets

In block I on page 1 of Form 990-PF,enter the fair market value of all assetsthe foundation held at the end of the taxyear.

TIP

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

Part IAnalysis of Revenueand Expenses

Column InstructionsThe total of amounts in columns (b), (c),and (d) may not necessarily equal theamounts in column (a).

The amounts entered in column (a) andon line 5b must be analyzed in PartXVI-A.

Column (a)Revenue and Expensesper Books

Enter in column (a) all items of revenueand expense shown in the books andrecords that increased or decreased the



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net assets of the organization. However,do not include the value of servicesdonated to the foundation, or items suchas the free use of equipment or facilities,in contributions received. Also, do notinclude any expenses used to computecapital gains and losses on lines 6, 7, and8 or expenses included in cost of goodssold on line 10b.

Column (b)Net Investment Income

All domestic private foundations (including

section 4947(a)(1) nonexempt charitabletrusts) are required to pay an excise taxeach tax year on net investment income.

Exempt foreign foundations are subjectto an excise tax on gross investmentincome from U.S. sources. These foreignorganizations should complete lines 3, 4,5, 11, 12, and 27b of column (b) andreport only income derived from U.S.sources. No other income should beincluded. No expenses are allowed asdeductions.Definitions

Gross investment incomemeans thetotal amount of investment income that

was received by a private foundation fromall sources. However, it does not includeany income subject to the unrelatedbusiness income tax. It includes interest,dividends, rents, payments with respectto securities loans (as defined in section512(a)(5)), royalties received from assetsdevoted to charitable activities, incomefrom notional principal contracts (asdefined in Regulations section 1.863-7),and other substantially similar incomefrom ordinary and routine investmentsexcluded by section 512(b)(1). Therefore,interest received on a student loan isincludible in the gross investment incomeof a private foundation making the loan.

Net investment income is the amountby which the sum of gross investmentincome and the capital gain net incomeexceeds the allowable deductionsdiscussed later. Tax-exempt interest ongovernmental obligations and relatedexpenses are excluded.Investment income. Include in column(b) all or part of any amount from column(a) that applies to investment income.However, do not include in column (b) anyinterest, dividends, rents or royalties (andrelated expenses) that were reported onForm 990-T.

For example, investment income from

debt-financed property unrelated to theorganization's 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%, only 80%of the gross income (and expenses) forthat property is used to figure the section511 tax on Form 990-T. The remaining20% of the gross income (and expenses)

of that property is used to figure thesection 4940 tax on net investmentincome on Form 990-PF. (See Form990-T and its instructions for moreinformation.)Investment expenses. Include incolumn (b) all ordinary and necessaryexpenses paid or incurred to produce orcollect investment income from: interest,dividends, rents, amounts received frompayments on securities loans (as definedin section 512(a)(5)), royalties, incomefrom notional principal contracts, andother substantially similar income fromordinary and routine investmentsexcluded by section 512(b)(1); or for themanagement, conservation, ormaintenance of property held for theproduction of income that is taxable undersection 4940.

If any of the expenses listed in column(a) are paid or incurred for bothinvestment and charitable purposes, theymust be allocated on a reasonable basisbetween the investment activities and thecharitable activities so that only expensesfrom investment activities appear in

column (b). Examples of allocationmethods are given in the instructions forPart IX-A.

Limitation. The deduction forexpenses paid or incurred in any tax yearfor producing gross investment incomeearned incident to a charitable functioncannot be more than the amount ofincome earned from the function that isincludible as gross investment income forthe year.

For example, if rental income isincidentally realized in 2000 from historicbuildings held open to the public,deductions for amounts paid or incurredin 2000 for the production of this incomemay not be more than the amount ofrental income includible as grossinvestment income in column (b) for 2000.

Expenses related to tax-exemptinterest. Do not include on lines 1323of column (b) any expenses paid orincurred that are allocable to tax-exemptinterest that is excluded from lines 3and 4.

Column (c)Adjusted Net Income

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Nonoperating private foundationsshould see item1 underNonoperating private

foundationson this page to find out if

they need to complete column (c).Private operating foundations. Allorganizations that claim status as privateoperating foundations under section4942(j)(3) or (5) must complete all linesof column (c) that apply, according to thegeneral rules for income and expensesthat apply to this column, the specific lineinstructions for lines 327c, the Specialrule, and Examples 1 and 2 below.General rules. In general, adjusted netincome is the amount of a privatefoundation's gross income that is more

than the expenses of earning the income.The modifications and exclusionsexplained below are applied to grossincome and expenses in figuring adjustednet income.

For income and expenses, include oneach line of column (c) only that portionof the amount from column (a) that isapplicable to the adjusted net incomecomputation.

Income. For column (c), include

income from charitable functions,investment activities, short-term capitalgains from investments, amounts setaside, and unrelated trade or businessactivities. Do not include gifts, grants, orcontributions, or long-term capital gainsor losses.

Expenses. Deductible expensesinclude the part of a private foundation'soperating expenses that is paid orincurred to produce or collect grossincome reported on lines 311 of column(c). If only part of the property producesincome includible in column (c),deductions such as interest, taxes, andrent must be divided between the

charitable and noncharitable uses of theproperty. If the deductions for propertyused for a charitable, educational, or othersimilar purpose are more than the incomefrom the property, the excess will not beallowed as a deduction but may betreated as a qualifying distribution in PartI, column (d). See Examples 1 and 2below.Special rule. The expenses attributableto each specific charitable activity, limitedby the amount of income from the activity,must be reported in column (c) on lines1326. If the expenses of any charitableactivity exceed the income generated bythat activity, only the excess of theseexpenses over the income should bereported in column (d).

Examples.

1. A charitable activity generated$5,000 of income and $4,000 ofexpenses. Report all of the income andexpenses in column (c) and none incolumn (d).

2. A charitable activity generated$5,000 of income and $6,000 ofexpenses. Report $5,000 of income and$5,000 of expenses in column (c) and theexcess expenses of $1,000 in column (d).Nonoperating private foundations. Thefollowing rules apply to nonoperatingprivate foundations.

1. If a nonoperating private foundationhas no income from charitable activitiesthat would be reportable on line 10 or line11 of Part I, it does not have to make anyentries in column (c).

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



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investment income and expenses) incolumn (c).

3. If a nonoperating private foundationhas income that it reports on lines 10and/or 11, report any expenses relating tothis income following the general rulesand the special rule. See Examples 1 and2 on the prior page.

Column (d)Disbursements forCharitable Purposes

Expenses entered in column (d) relate toactivities that constitute the charitablepurpose of the foundation.

For amounts entered in column (d):q Use the cash receipts anddisbursements method of accounting nomatter what accounting method is used inkeeping the books of the foundation.q Do not include any amount or part ofan amount that is included in column (b)or (c).q Include on lines 1325 all expenses,including necessary and reasonableadministrative expenses, paid by thefoundation for religious, charitable,scientific, literary, educational, or otherpublic purposes, or for the prevention ofcruelty to children or animals.q Include a distribution of property at thefair market value on the date thedistribution was made.q Include only the part entered in column(a) that is allocable to the charitablepurposes of the foundation.

Example. An educational seminarproduced $1,000 in income that wasreportable in columns (a) and (c).Expenses attributable to this charitableactivity were $1,900. Only $1,000 ofexpense should be reported in column (c)and the remaining $900 in expenseshould be reported in column (d).Qualifying distributions. Generally, giftsand grants to organizations described insection 501(c)(3), that have beendetermined to be publicly supportedcharities (i.e., organizations that are notprivate foundations as defined in section509(a)), are qualifying distributions only ifthe granting foundation does not controlthe public charity.

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The total of the expenses anddisbursements on line 26 is alsoentered on line 1a in Part XII to

figure qualifying distributions.

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

Line Instructions

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 name andaddress of the person and the amountand date of each gift made during the

year.To determine whether a person hascontributed $5,000 or more, total only giftsof $1,000 or more from each person.Separate and independent gifts need notbe totaled if less than $1,000. If acontribution is in the form of property,describe the property and include its fairmarket value.

The term person includes individuals,fiduciaries, partnerships, corporations,associations, trusts, and exemptorganizations.

An organization must keep records,required by the regulations under section170, for all its charitable contributions.

Change in accounting method toconform with SFAS 116. If the privatefoundation changed its accountingmethod for tax purposes to conform withSFAS 116 and part or all of its net assetadjustment (section 481(a) adjustment)represents contributions, then include inthe list of contributors that is attached tothe return any contributor of an amountthat is included in the adjustment andmeets the requirements above. Reportthe contributors that meet theserequirements in the year of the change.

Split-interest trusts. Contributionsfrom split-interest trusts should be entered

on both line 1 of column (a) and line 2 ofcolumn (b). They are a part of the amounton line 1. Report contributions only onlines 1 and 2.

Substantiation requirements.Generally, a donor making a charitablecontribution of $250 or more will not beallowed a Federal income tax deductionunless the donor obtains a writtenacknowledgment from the doneeorganization by the earlier of the date onwhich the donor files a tax return for thetax year in which the contribution wasmade or the due date, includingextensions, for filing that return. However,

see section 170(f)(8) and Regulationssection 1.170A-13 for exceptions to thisrule.

The written acknowledgment thefoundation provides to the donor mustshow:

1. The amount of cash contributed,

2. A description of any propertycontributed,

3. Whether the foundation providedany goods or services to the donor, and

4. A description and a good-faithestimate of the value of any goods or

services the foundation gave in return forthe contribution, unless:

a. The goods and services haveinsubstantial value, or

b. A statement is included that thesegoods and services consist solely ofintangible religious benefits.

Generally, if a charitable organizationsolicits or receives a contribution of morethan $75 for which it gives the donorsomething in return (a quid pro quo

contribution), the organization must informthe donor, by written statement, that theamount of the contribution deductible forFederal income tax purposes is limited tothe amount by which the contributionexceeds the value of the goods orservices received by the donor. Thewritten statement must also provide thedonor with a good-faith estimate of thevalue of goods or services given in returnfor the contribution.

Penalties. An organization that doesnot make the required disclosure for eachquid pro quo contribution will incur apenalty of $10 for each failure, not toexceed $5,000 for a particular fundraisingevent or mailing, unless it can showreasonable cause for not providing thedisclosure.

For more information. SeeRegulations section 1.170A-13 for moreinformation on charitable recordkeepingand substantiation requirements.

Line 2Certain contributions fromsplit-interest trusts described insection 4947(a)(2). The income portionof distributions from split-interest truststhat was earned on amounts placed intrust after May 26, 1969, is treated asinvestment income. Include only theincome portion of these distributions on

line 2. That same figure is a part ofline 1.Line 3Interest on savings andtemporary cash investments.

In column (a), enter the total amountof interest income from investments of thetype reportable in Balance Sheets, Part II,line 2. These include savings or otherinterest-bearing accounts and temporarycash investments, such as money marketfunds, commercial paper, certificates ofdeposit, and U.S. Treasury bills or othergovernment obligations that mature inless than 1 year.

In column (b), enter the amount of

interest income shown in column (a). Donot include interest on tax-exemptgovernment obligations.

In column (c), enter the amount ofinterest income shown in column (a).Include interest on tax-exemptgovernment obligations.Line 4Dividends and interest fromsecurities.

In column (a), enter the amount ofdividend and interest income fromsecurities (stocks and bonds) of the typereportable in Balance Sheets, Part II, line



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10. Include amounts received frompayments on securities loans, as definedin section 512(a)(5). Do not include anycapital gain dividends reportable on line6. Report income from program-relatedinvestments on line 11. For debtinstruments with an original issuediscount, report the original issue discountratably over the life of the bond on line 4.See section 1272 for more information.

In column (b), enter the amount ofdividend and interest income, andpayments on securities loans from column(a). Do not include interest on tax-exemptgovernment obligations.

In column (c), enter the amount ofdividends and interest income, andpayments on securities loans from column(a). Include interest on tax-exemptgovernment obligations.Line 5aGross rents.

In column (a), enter the gross rentalincome for the year from investmentproperty reportable on line 11 of Part II.

In columns (b) and (c), enter the grossrental income from column (a).Line 5bNet rental income or (loss).Figure the net rental income or (loss) forthe year and enter that amount on theentry line to the left of column (a).

Report rents from other sources on line11, Other income. Enter any expensesattributable to the rental income reportedon line 5, such as interest anddepreciation, on lines 1323.

Line 6aNet gain or (loss) from saleof assets. Enter the net gain or (loss) perbooks from all asset sales not includedon line 10.

For assets sold and not included in PartIV, attach a schedule showing:q Date acquired,q Manner of acquisition,q Gross sales price,q Cost, other basis, or value at time ofacquisition (if donated) and which of thesemethods was used,q Date sold,q To whom sold,q Expense of sale and cost ofimprovements made subsequent toacquisition, andq Depreciation since acquisition (ifdepreciable property).

Line 6bGross sales price for allassets on line 6a. Enter the gross sales

price from all asset sales whose net gainor loss was reported on line 6a.

Line 7Capital gain net income. Enterthe capital gain net income from Part IV,line 2. See Part IV instructions.

Line 8Net short-term capital gain.

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Only private operating foundationsreport their short-term capital gainson line 8.

Include only net short-term capital gainfor the year (assets sold or exchangedthat were held not more than 1 year). Do

not include a net long-term capital gainor a net loss in column (c).

Do not include on line 8 a net gain fromthe sale or exchange of depreciableproperty, or land used in a trade orbusiness (section 1231) and held for morethan 1 year. However, include a net lossfrom such property on line 23 as an Otherexpense.

In general, organizations may carry toline 8 the net short-term capital gain

reported on Part IV, line 3. However, if thefoundation had any short-term capital gainfrom sales of debt-financed property, addit to the amount reported on Part IV, line3, to figure the amount to include on line8. For the definition of debt-financedproperty, see the instructions for Form990-T.

Line 9Income modifications. Includeon this line:q Amounts received or accrued asrepayments of amounts taken intoaccount as qualifying distributions (seethe instructions for Part XII for anexplanation of qualifying distributions) forany year.q Amounts received or accrued from thesale or other disposition of property to theextent that the acquisition of the propertywas considered a qualifying distributionfor any tax year.q Any amount set aside for a specificproject (see explanation in the instructionsfor Part XII) that was not necessary for thepurposes for which it was set aside.q Income received from an estate, butonly if the estate was consideredterminated for income tax purposes dueto a prolonged administration period.q Amounts treated in an earlier tax yearas qualifying distributions to:

1. A nonoperating private foundation,if the amounts were not redistributed bythe grantee organization by the close ofits tax year following the year in which itreceived the funds, or

2. 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.

Lines 10a, b, cGross profit fromsales of inventory. Enter the gross sales(less returns and allowances), cost ofgoods sold, and gross profit or (loss) from

the sale of all inventory items, includingthose sold in the course of special eventsand activities. These inventory items arethe ones the organization either makes tosell to others or buys for resale.

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

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

Do not include any business expensessuch as salaries, taxes, rent, etc., on line10. Include them on lines 1323.

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

us internal revenue service: i990pf--2000

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