US Internal Revenue Service: i990pf--1994

8/14/2019 US Internal Revenue Service: i990pf--1994

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Cat. No. 11290Y

Instructions forForm 990-PFReturn of Private Foundation or Section

4947(a)(1) Nonexempt Charitable TrustTreated as a Private Foundation

Section references are to the Internal Revenue Code unless otherwise noted.

Department of the TreasuryInternal Revenue Service

Paperwork ReductionAct NoticeWe ask for the information on this formto carry 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 onindividual circumstances. The estimatedaverage time is:

Recordkeeping 140 hr., 52 min.

Learning about thelaw or the form 27 hr., 11 min.

Preparing the form 31 hr., 37 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 formsimpler, we would be happy to hear from

you. You can write to both the InternalRevenue Service, Attention: Tax FormsCommittee, PC:FP, Washington DC20224; and the Office of Managementand Budget, Paperwork ReductionProject (1545-0052), Washington, DC20503. DO NOT send the tax form toeither of these offices. Instead, seeWhen and Where To File on page 4.

Purpose of Form.Form 990-PF isused by private foundations and bysection 4947(a)(1) nonexempt charitabletrusts that are treated as privatefoundations. These organizations usethis form to figure the tax on netinvestment income and to reportcharitable distributions and activities.The form also serves as a substitute forthe section 4947(a)(1) nonexemptcharitable trusts income tax return,Form 1041, U.S. Income Tax Return forEstates and Trusts, when the trust hasno taxable income.

Contents Page

A. Who Must File 1

B. Which Parts To Complete 2

C. Definitions 2

D. Other Forms You May Need ToFile 2

E. Useful Publications 3

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

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

H. Accounting Period 4

I. Accounting Methods 4

J. When and Where To File 4

K. Extension of Time To File 4

L. Amended Return 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 Requirements 5

R. Disclosures Regarding CertainInformation and ServicesFurnished 6

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

T. Liquidation, Dissolution,Termination, or SubstantialContraction 6

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

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

Specific Instructions 7

Part IAnalysis of Revenue andExpenses 8

Part IIBalance Sheets 12

Part IIIAnalysis of Changes inNet Assets or Fund Balances 14

Contents Page

Part IVCapital Gains and Lossesfor Tax on Investment Income 15

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

Part VIExcise Tax on InvestmentIncome 15

Part VIIStatements Regarding

Activities 16Part VIIIInformation About Officers,

Directors, Trustees, etc. 17

Part IX-ASummary of DirectCharitable Activities 18

Part IX-BSummary of Program-Related Investments 19

Part XMinimum Investment Return 19

Part XIDistributable Amount 20

Part XIIQualifying Distribut ions 21

Part XIIIUndistributed 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 is an annual informationreturn that must be filed by:

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

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

3. Organizations that agree to privatefoundation status and whoseapplications for exempt status are


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pending on the due date for filing Form990-PF.

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

5. Organizations that are making asection 507 termination.

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

Note: Section 4947(a)(1) nonexemptcharitable trusts that are not treated asprivate foundations do not file Form990-PF. However, they may need to fileForm 990, Return of OrganizationExempt From Income Tax, orForm990-EZ, Short Form Return ofOrganization Exempt From Income Tax.With either of these forms, the trustmust also fileSchedule A (Form 990),Organization Exempt Under Section501(c)(3) (Except Private Foundation),and Section 501(e), 501(f), 501(k), orSection 4947(a)(1) Nonexempt CharitableTrust Supplementary Information. (SeeForm 990 or Form 990-EZ instructions. )

B. Which Parts To Complete

The parts of the form listed below donot apply to all filers. If an entire part ora major portion of a part does not apply,enter N/A where appropriate.

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

Part II, column (c), with the exceptionof line 16, applies only to organizationshaving at least $5,000 in assets perbooks at some time during the year. Line16, column (c), applies to all filers.

Part IV does not apply to foreignorganizations.

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

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

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

Part XIV applies only to privateoperating foundations.

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

C. Definitions

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

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

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

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

A taxable foundation is 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.

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

A disqualified person is:

1. A substantial contributor (seeinstructions for Part VII, line 15 on page17);

2. A foundation manager;

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

4. A family member of an individual

described in 1, 2, or 3 above; or5. A corporation, partnership, trust, or

estate in which persons described in 1,2, 3, or 4 above own a total beneficialinterest of more than 35%.

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

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

a. A private foundation which iseffectively controlled (directly or

indirectly) 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 the

foundation if any of these persons may,by combining their votes or positions ofauthority, require the organization tomake 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.

D. Other Forms You May Need ToFile

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

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

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

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

Form 1041.U.S. Income Tax Returnfor Estates and Trusts. Required ofsection 4947(a)(1) nonexempt charitabletrusts that also file Form 990-PF.However, if the trust does not have anytaxable income under subtitle A of theCode, it may use the filing of Form990-PF to satisfy its Form 1041 filingrequirement under section 6012. If thiscondition is met, check the box for

question 19, Part VII, of Form 990-PFand do not file Form 1041.

Form 1041-ES.Estimated Income Taxfor Estates 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, 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 net


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investment income both exceed $100 forthe year.

Form 1128.Application to Adopt,Change, or Retain A Tax Year.

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

Form 2220.Underpayment ofEstimated Tax by Corporations, is usedby corporations and trusts filing Form990-PF to see if the foundation owes apenalty and to figure the amount of the

penalty. Generally, the foundation is notrequired to file this form because theIRS can figure the amount of anypenalty and bill the foundation for it.However, complete and attach Form2220 even if the foundation does notowe the penalty if:

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

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

If Form 2220 is attached, check thebox on line 8, Part VI, on page 4 of

Form 990-PF and enter the amount ofany penalty on this line.

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

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

jeopardize the foundations charitable

purposes; 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 shown below.This requirement applies whether or notthe plan is qualified under the InternalRevenue Code and whether or not adeduction is claimed for the current taxyear.

The forms required to be filed are:

Form 5500, Annual Return/Report ofEmployee Benefit Plan (With 100 ormore participants).

Form 5500-C/R, Return/Report ofEmployee Benefit Plan (With fewer than100 participants).

Form 8109.Federal Tax DepositCoupon.

Form 8282.Donee Information Return.Required of the donee of charitablededuction property that sells,

exchanges, or otherwise disposes of theproperty within 2 years after the date itreceived the property.

Also required of any successor doneethat disposes of charitable deductionproperty within 2 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 originaldonee or another successor donee.) Forsuccessor donees, the form must be

filed 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 section162).

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

Form 8822.Change of Address.

E. Useful Publications

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 SatisfyState Reporting Requirements

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

If the organization plans to use Form990-PF to satisfy state or local filingrequirements, such as those from statecharitable solicitation acts, note thefollowing:

Determine state filing requirements.Consult the appropriate officials of allstates and other jurisdictions in whichthe organization does business to

determine 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 there.

Monetary tests may differ.Some or

all of the dollar limitations that apply toForm 990-PF when filed with the IRSmay not apply when using Form 990-PFinstead of state or local report forms.IRS dollar limitations that may not meetsome state requirements are the $5,000total assets minimum that requirescompletion of Part II, column (c), andPart XV; and the $50,000 minimum forlisting the highest paid employees andfor listing professional fees in Part VIII.

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

statements, 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.

If required information is not provided

to a state, the organization may beasked by the state to provide it or tosubmit an amended return, even if theForm 990-PF is accepted by the IRS ascomplete.

Amended returns.If the organizationsubmits supplemental information orfiles an amended Form 990-PF with theIRS, it must also include a copy of theinformation or amended return to anystate with which it filed a copy of Form990-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 maydiffer from the time for filing statereports.

State registration numbers.Enter theapplicable state or local jurisdictionregistration or identification number inbox B (on page 1) for each jurisdiction inwhich the organization files Form 990-PFinstead of the state or local form. Whenfiling in several jurisdictions, prepare asmany copies as needed with the state


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registration number omitted. Then enterthe applicable registration number onthe copy to be filed with each

jurisdiction.

G. Furnishing Copies of Form990-PF to State Officials

The foundation managers must furnish acopy of the annual Form 990-PF to theattorney general (or designate) of (a)each state which they are required to listin Part VII, line 8a, (b) the state in which

the principal office of the foundation islocated, and (c) the state in which thefoundation was incorporated or created.The return must be filed at the sametime it is sent to the IRS. The foundationmanagers must also provide a copy ofthe annual return to the attorney generalor other appropriate state official of anyother state who requests it. Thefoundation managers must also attachto all copies of the annual return filedwith an attorney general a copy of anyForm 4720 filed with the IRS for theyear. These rules do not apply to anyforeign foundation which, from the dateof its creation, has received at least

85% 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, ifnecessary) 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. If there is a state reportingrequirement that the copy of Form990-PF be filed with a state official otherthan the attorney general (such as asecretary of state), then the foundationmanagers must also send a copy of theForm 990-PF to the attorney general ofthat state.

H. Accounting Period1. File the 1994 return for the calendar

year 1994 or fiscal year beginning in1994. 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 be

on the calendar-year basis.3. For initial or final returns or a

change in accounting period, the 1994form may also be used as the return fora short period (less than 12 months)ending November 30, 1995, 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, write,Change of Accounting Period.

If the organization changed itsaccounting period within the10-calendar-year period that includesthe beginning of the short period, and ithad a Form 990-PF filing requirement atany time during that 10-year period, itmust also attach a Form 1128 to theshort-period return. See Rev. Proc.85-58, 1985-2 C.B. 740.

I. Accounting Methods

Generally, you should report the financial

information requested on the basis ofthe accounting method the foundationregularly uses to keep 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 foundations accounting period. Ifthe regular due date falls on a Saturday,Sunday, or legal holiday, file on the nextbusiness day. If the return is filed late,see M. Penalty for Failure To FileTimely, Completely, or Correctly below.

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

Where To File

If the principal officeof the organization

is located in

Use the followingInternal RevenueService Center

address

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

South Carolina, Tennessee

Atlanta, GA 39901

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

Austin, TX 73301

Indiana, Kentucky,Michigan, Ohio, WestVirginia

Cincinnati, OH 45999

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

Fresno, CA 93888

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

Holtsville, NY 00501

Illinois, Iowa, Minnesota,Missouri, Montana,

Nebraska, North Dakota,South Dakota, Wisconsin

Kansas City, MO 64999

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

Philadelphia, PA 19255

K. Extension of Time To File

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

L. Amended Return

To change the organizations return forany year, file an amended return,including attachments, with the correctinformation. The amended return mustprovide all the information required bythe form and instructions, not just thenew or corrected information. WriteAmended Return at the top of thereturn.

If the organization files an amendedreturn to claim a refund of tax paid

under section 4940 or 4948, it must filethe amended return within 3 years afterthe date the original return was due orfiled, or within 2 years from the date thetax was paid, whichever date is later.

Note: A copy of the amended returnmust also be sent to appropriate stateofficials. See General Instruction G.

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

M. Penalty for Failure To File

Timely, Completely, or CorrectlyAgainst the organization.If anorganization does not file timely andcompletely, or does not furnish thecorrect information, it must pay $10 foreach day the failure continues, unless itcan show that the failure was due toreasonable cause. Those filing late (afterthe due date, including extensions) mustattach an explanation to the return. Themaximum penalty for each return will notexceed the smaller of $5,000 or 5% ofthe gross receipts of the organization forthe year.

Against the responsible person.The

IRS will make written demand that thedelinquent return be filed or theinformation furnished within areasonable time after the mailing of thenotice of the demand. The person failingto comply with the demand on or beforethe date specified will have to pay $10for each day the failure continues,unless there is reasonable cause. Themaximum penalty imposed on allpersons for any one return will notexceed $5,000. If more than one personis liable for any failures, all such personsare jointly and severally liable for suchfailures (see section 6652(c)).

To avoid filing an incomplete return or

having to respond to requests formissing information, be sure to completeall applicable line items; to answerYes, No, or N/A (not applicable) toeach question on the return; to make anentry (including a zero when appropriate)on all total lines; and to enter None orN/A if an entire part does not apply.

Because this return also satisfies thefiling requirements of a tax return undersection 6011 for the tax on investmentincome imposed by section 4940 (or4948 if an exempt foreign organization),


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the penalties imposed by section 6651for not filing a return (without reasonablecause) also apply.

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

N. Penalty for Not Paying Tax onTime

There is a penalty for not paying taxwhen due (section 6651).The penalty

generally 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) nonexempt charitabletrusts. The penalties also apply to anytax on unrelated business income ofthese organizations. For more details,see the discussion of Form 2220 inOther Forms You May Need To File inthese instructions.

O. Figuring and Paying EstimatedTaxes on Net Investment Income

A domestic private foundation mustmake estimated tax payments of theexcise tax on investment income if it canexpect its estimated tax (section 4940tax minus allowable credits) to be $500or more. The number of installmentpayments it must make under thedepositary method is determined at the

time during the year that it first meetsthis requirement. For calendar-yeartaxpayers, the first deposit of estimatedtaxes for a year generally should 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 figure the estimated tax, multiplythe estimated investment income by thetax rate (1% or 2%, whichever applies)

and enter that amount on line 10a ofForm 990-W.

The Form 990-W line items andinstructions for large organizations alsoapply to private foundations. Forpurposes of paying the estimated tax onnet investment income, a largeorganization is one that had netinvestment income of $1 million or morefor any of the 3 tax years immediatelypreceding the tax year involved.

A foundation that does not pay theproper estimated tax when due may be

subject 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 1995 Form990-W or 1041-ES for information ondetermining the amounts of requiredpayments.

Compute separately any requireddeposits of section 4940 tax andunrelated business income tax. (See

sections 6655(b) and (d) and the Form2220 instructions.)

Note: Section 4947(a)(1) nonexemptcharitable trusts and taxable foundationsthat have income subject to tax undersection 1 or section 11 should see Form1120 for the estimated tax rules.However, section 4947(a)(1) nonexemptcharitable trusts should use Form1041-ES for paying any estimated tax onthat income. Taxable foundations shoulduse Form 8109, and darken the 1120box on that form.

P. Depositary Method of TaxPayment for Domestic Private

FoundationsThe 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 income tax due shown online 9, Part VI of Form 990-PF, or line 5cof Form 2758, is less than $500, attacha check or money order, payable to theInternal Revenue Service, to page 1 ofForm 990-PF or send the full balancedue with Form 2758. Otherwise, depositfoundation net investment income taxpayments (estimated tax payments and

balance of tax due as shown on line 9,Part VI of Form 990-PF, or line 5c ofForm 2758) with a Federal Tax DepositCoupon (Form 8109). Be sure to darkenthe 990-PF box on Form 8109. Makethese tax deposits with either a financialinstitution qualified as a depositary forFederal taxes or the Federal Reservebank or branch servicing the geographicarea where the foundation is located. Donot submit deposits directly to an IRSoffice or the foundation may be subjectto a failure-to-deposit penalty. Recordsof deposits will be sent to IRS forcrediting to the foundations account.See the instructions in the coupon book(Form 8109) for more details.

To ensure accurate processing ofdeposits, write the organizationsemployer identification number, type oftax paid, and the tax period to which thedeposit applies on the check.

Generally, taxpayers whose totaldeposits of withheld income, socialsecurity, and Medicare taxes duringcalendar year 1993 exceeded $78 millionare required to deposit all depositorytaxes due after 1994 by electronic funds

transfer (EFT). TAXLINK, an electronicremittance processing system, must beused to make deposits by EFT.Taxpayers who are not required to makedeposits by EFT may voluntarilyparticipate in TAXLINK. For more detailson TAXLINK, see Rev. Proc. 94-48,1994-29 I.R.B. 31. You may also call thetoll-free TAXLINK HELPLINE at1-800-829-5469.

For more details about deposits, seePub. 583.

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

Q. Public Inspection Requirements

From the organization

Information reported on Form 990-PF,including all attachments, is available forpublic inspection under section 6104(b).This applies both to information requiredby the form and to voluntaryinformation. Therefore, the return andany attachments should be reproducible.

Annual returns

Foundation managers must make the

annual return available for inspectionduring regular business hours at theprincipal office of the foundation, or maygive a free copy to any personrequesting inspection, if the request ismade at the time and in the mannerprescribed in section 6104(d) and therelated regulations.

Notice requirements.A notice that theprivate foundations annual return isavailable for inspection must bepublished by the due date for filing theannual return, including any extensionsof time for filing. The notice must bepublished in a newspaper with general

circulation 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 and

the name of its principal manager. Aprivate foundation may designate, inaddition to its principal office, any otherlocation where 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-dayperiod as required by law, do not publishthe notice until the return has been


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completed and is available for inspectionupon request.

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

Penalties.If a foundation does notpublish the notice and attach a copy 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 theperson under a duty to act, but who fails

to do so without reasonable cause. Thepenalty is also imposed on any personwho does not make the return (includingall required attachments) available forpublic inspection according to thesection 6104(d) provisions discussedunder Annual returns on the precedingpage. If more than one person isresponsible for either failure to act, eachperson is jointly and severally liable forthe full amount of the penalty. Anyperson who willfully fails to comply issubject to an additional penalty of$1,000 (section 6685).

Exceptions. A private foundation thathas terminated its status as such undersection 507(b)(1)(A), by distributing all itsnet assets to one or more publiccharities without keeping 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, fromthe date of its creation, has received atleast 85% of its support (excludinggross investment income) from sources

outside the United States. Therequirement to furnish copies of annualreturns to state officials also does notapply to such foreign foundations (seeGeneral Instruction G).

Exemption applications

Any section 501(c) organization thatsubmitted an application for recognitionof exemption to the Internal RevenueService after July 15, 1987, must makeavailable for public inspection a copy ofits application (and any paperssubmitted in support of its application)and any letter or other document issuedby the IRS in response to 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 will be charged a penalty of$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 issubject to an additional penalty of$1,000.

From the IRSBoth 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 thereturn and the year(s) involved. Therequest should be sent to the DistrictDirector (Attention: Disclosure Officer) of

the district in which the requester wantsto inspect the return or application. Ifthe requester wants the inspection atthe IRS National Office, the requestshould be sent to the Commissioner ofInternal Revenue, Attention: Freedom ofInformation Reading Room, 1111Constitution Ave., NW, Washington, DC20224.

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 to anyindividual that could be obtained by theindividual from a Federal Governmentagency free or for a nominal chargemust disclose that fact conspicuouslywhen making such offer or solicitation.

Any organization that intentionallydisregards this requirement will besubject to a penalty for each day theoffers or solicitations are made. Thepenalty is the greater of $1,000 or 50%of the total cost of the offers andsolicitations made on that day.

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

If you apply any provision of any U.S.tax treaty to compute the foundationstaxable income, tax liability, or taxcredits in a manner different from the990-PF instructions, attach anexplanation.

Regulations section 53.4948-1(b)states that sections 507, 508, andChapter 42 (other than section 4948) donot apply to a foreign private foundationwhich 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 foundationsand foreign section 4947(a)(1)nonexempt charitable trusts are notsubject to the excise taxes undersections 4948(a) and 4940, but aretaxed under subtitle A of the Code.

Certain foreign foundations are notrequired to send copies of annualreturns to state officials, or comply withthe public inspection and noticerequirements of annual returns. (SeeGeneral Instructions G and Q.)

T. Liquidation, Dissolution,Termination, or SubstantialContraction

Organizations liquidating, etc., mustattach a statement to the returnexplaining any liquidation, dissolution,termination, or substantial contraction.See General Instruction J for filing datesand locations.

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

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

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 dispositions

made during prior tax years (if adisposition is part of a series of relateddispositions made during these prior taxyears) is less than 25% of the fairmarket value of the net assets of theorganization at the beginning of the taxyear in which any of the series of relateddispositions was made.

The facts and circumstances of theparticular case will determine whether asignificant disposition has occurredthrough a series of related dispositions.Ordinarily, a distribution described in


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section 170(b)(1)(E)(ii) (relating to privatefoundations making qualifyingdistributions out of corpus equal to100% of contributions received duringthe foundations tax year) will not betaken 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 anexplanation of the nature and fair marketvalue of assets distributed to eachrecipient.

Organizations that have terminatedtheir private foundation status undersection 507(b)(1)(A) do not have tocomply with the notice and publicinspection requirements of their annual

return for the year of termination (seeExceptions in General Instruction Q).

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

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

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

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

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

Regulations under section 507(b)(1)(B)(iii) specify that within 90 days afterthe end of the termination period theorganization must supply information toits key district director establishing thatit has terminated its private foundationstatus and, therefore, qualifies as a

public 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 typeof public charity it has become. See theInstructions for Form 990 and ScheduleA (Form 990) for details on filingrequirements. This applies even if thekey district has not confirmed that theorganization has terminated its privatefoundation status by the time the returnfor the final year of the termination is

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)but not previously filed if it is laterdetermined that the organization did notterminate its private foundation status.Interest on any tax due will be chargedfrom the original due date of the Form990-PF, but penalties under sections

6651 and 6652 will not be assessed ifthe Form 990-PF is filed within theperiod allowed by the key district.

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

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

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

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

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

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

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

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

A. Employer Identification Number.The organization should have only one

employer identification number. If it hasmore than one number, notify theInternal Revenue 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 theorganizations principal office. The IRSwill then advise which number to use.

D2. Foreign Organizations.Check thebox in D2 on page 1 of Form 990-PF if

the organization meets the 85% test ofRegulations section 53.4948-1(b). Attachthe computation of the 85% test toForm 990-PF.

Note: If the foundation meets the 85%test, do not fill in Parts XI and XIII, butcheck the box at the top of Part XI. Ifthe foundation meets the 85% test, donotfill in Part X unless it is claimingstatus as a private operating foundation.

E. Section 507(b)(1)(A) Terminations.A private foundation that has terminatedits status as such under section507(b)(1)(A), by distributing all its netassets to one or more public charitieswithout keeping any right, title, orinterest in those assets, should checkthe box in E on page 1 of Form 990-PF.See General Instructions T and Q.

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

General Instruction U for informationregarding filing requirements during asection 507(b)(1)(B) termination.

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

H. Type of Organization.Check thebox for Section 501(c)(3) exempt privatefoundation if the foundation has a rulingor determination letter from the IRS ineffect that recognizes its exemption fromFederal income tax as an organizationdescribed in section 501(c)(3) or if the

organizations exemption application ispending with the IRS.

Check the Section 4947(a)(1)nonexempt charitable trust box if thetrust is a nonexempt charitable trusttreated as a private foundation. Allothers, check the Other taxable privatefoundation box.

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


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

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

Currency and Language

Requirements.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. All information must be inEnglish.

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

1. Write Form 990-PF, the tax year,and the corresponding schedule numberor letter,

2. Include the organizations name andemployer identification number,

3. Follow the format and linesequence of the form,

4. Include the information required bythe form, and

5. Show totals on the printed forms.

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 Part

XVI-A, analyze amounts entered incolumn (a) and on line 5b.

Column (a)Revenue andExpenses per Books

Revenue

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

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

person. Separate and independent giftsneed not be totaled if less than $1,000.If a contribution is in the form ofproperty, describe the property andinclude its fair market value.

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

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

are a part of the amount on line 1.Report contributions only on lines 1 and2.

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 therelated temporary regulations forexceptions to this rule.

The acknowledgment the foundationprovides to the donor must show (a) theamount of cash contributed, (b) adescription of any property contributed,(c) whether the foundation provided anygoods or services to the donor, and (d)a description and a good-faith estimateof the value of any goods or services thefoundation gave in return for thecontribution, unless the goods andservices have insubstantial value orunless a statement is included thatthese goods and services consist solelyof intangible religious benefits.

Generally, if a charitable organization

solicits or receives a contribution ofmore than $75 for which it gives thedonor something in return (a quid proquo contribution), the organization mustinform the donor, by written statement,that the amount of the contributiondeductible for Federal income taxpurposes is limited to the amount bywhich the contribution exceeds thevalue of the goods or services receivedby the donor. The written statementmust also provide the donor with agood-faith estimate of the value ofgoods or services given in return for thecontribution.

An organization that does not makethe required disclosure for each quid proquo contribution will incur a penalty of$10 for each failure, not to exceed$5,000 for a particular fundraising eventor mailing, unless it can showreasonable cause for not providing thedisclosure.

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

Donors must file Form 8283, NoncashCharitable Contributions, if their

deduction for all noncash gifts is morethan $500.

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

government obligations that mature inless than 1 year.

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

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

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

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

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

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

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

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

Lines 10a, b, cGross profit fromsales of inventory.Enter the grosssales (less returns and allowances), costof goods sold, and gross profit or (loss)from the sale of all inventory items,including those sold in the course ofspecial events and activities. Theseinventory items are the ones the


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organization either makes to sell toothers or buys for resale.

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

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

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

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

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

Line 11Other income.Enter thetotal of all other income of thefoundation for the year. Include allincome not reported on lines 1 through10c. Refer to the instructions for Part

XVI-A. Include imputed interest oncertain deferred payments figured undersection 483, and any investment incomenot reportable on lines 3 through 5.However, do not include unrealized gainsand losses on investments carried atmarket value. Report those as fundbalance or net asset adjustments in PartIII. Attach a schedule showing thedescription and amount of the income.

Operating and AdministrativeExpenses

Enter in column (a) all items of expenseshown in the books and records thatdecreased the net assets of the

organization. However, do not include onlines 13 through 26 any expenses usedto compute capital gains and losses onlines 6, 7, and 8 or expenses included incost of goods sold on line 10b.

Line 13Compensation of officers,directors, trustees, etc.Enter the totalcompensation for the year of all officers,directors, and trustees. If none was paid,enter zero. Complete line 1 of Part VIII toshow the compensation of officers,directors, trustees, and foundationmanagers.

Line 14Other employee salaries andwages.Enter the total salaries and

wages 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 Form

5500 series appropriate for theorganizations plan. (See the Instructionsfor Form 5500 for information aboutemployee welfare benefit plans requiredto file that form.)

Also include in the total the amount ofFederal, state, and local payroll taxes forthe year, but only those that areimposed on the organization as anemployer. This includes the employersshare of social security and Medicaretaxes, FUTA tax, state unemployment

compensation tax, and other state andlocal payroll taxes. Do not include taxeswithheld from employees salaries andpaid over to the various governmentalunits (such as Federal and state incometaxes and the employees share of socialsecurity and Medicare taxes).

Lines 16a, b, and cLegal,accounting, and other professionalfees.On the appropriate line(s), enterthe total amount of legal, accounting,auditing, and other professional fees(such as fees for fundraising orinvestment services) charged by outsidefirms and individuals who are notemployees of the foundation.

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

Line 18Taxes.Enter the total taxespaid (or accrued) during the year. Thetotal should include all types of taxesrecorded on the books, including realestate tax not reported on line 20; the

tax 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 (%)or life (years), and (g) depreciation this

year. On a separate line on theschedule, show the amount ofdepreciation included in cost of goodssold and not included on line 19.

Line 20Occupancy.Enter the totalamount paid or incurred for the use ofoffice space or other facilities. If thespace is rented or leased, enter 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 the organizations ownemployees that are 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. Ifa separate line is provided for anexpense, use that line. Attach aschedule showing the type and amountof each expense.

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

Description of the amortizedexpenses;

Date acquired, completed, orexpended;

Amount amortized;

Deduction for prior years;

Amortization period (number ofmonths);

Current-year amortization; and Total amount of amortization.

Line 25Contributions, gifts, grantspaid.Enter the total of allcontributions, gifts, grants, and similaramounts paid (or accrued) for the year.List each contribution, gift, grant, etc., inPart XV, or attach a schedule of theitems included on line 25 and list:(a) each class of activity, (b) separatetotal for each activity, (c) name andaddress of donee, (d) relationship ofdonee, if related by blood, marriage,adoption, or employment (includingchildren of employees) to any

disqualified person (see definitions), and(e) the organizational status of donee(for example, public charityanorganization described in section509(a)(1), (2), or (3)). You do not have togive the name of any indigent personwho received one or more gifts or grantsfrom the foundation unless thatindividual is a disqualified person or onewho received a total of more than$1,000 from the foundation during theyear.


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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 expenditure

responsibility. Attach a separate reportfor each grant.

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

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

Column (b)Net InvestmentIncome

Revenue

All domestic private foundations(including section 4947(a)(1) nonexemptcharitable trusts) are required to pay anexcise tax each tax year on their netinvestment income.

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 should be included. Noexpenses are allowed as deductions.

Gross investment income means the

total amount of investment income thatwas received by a private foundationfrom all sources. However, it does notinclude any income subject to theunrelated business income tax. Itincludes interest, dividends, rents,payments with respect to securitiesloans (as defined in section 512(a)(5)),royalties received from assets devotedto charitable activities, income fromnotional principal contracts (as definedin Regulations section 1.863-7)), andother substantially similar income from

ordinary and routine investmentsexcluded by section 512(b)(1). Therefore,interest received on a student loan isincludible in the gross investmentincome of a private foundation makingthe loan.

Net investment income is the amountby which the sum of gross investmentincome and the capital gain net incomeexceeds the allowable deductionsdiscussed later. Tax-exempt interest ongovernmental obligations and related

expenses are excluded.Include in column (b) all or part of any

amount from column (a) that applies toinvestment income. However, do notinclude in column (b) any interest,dividends, rents or royalties (and relatedexpenses) that were reported on Form990-T because the organization hadgross income of $1,000 or more from atrade or business unrelated to itscharitable purpose.

For example, investment income fromdebt-financed property unrelated to theorganizations 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 (andexpenses) 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 its instructions formore information.)

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 thatincome portion of these distributions online 2. That same figure is a part ofline 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 included

in line 11, column (a). Include dividends,interest, rents, and royalties derived fromassets devoted to charitable activities,such as interest on student loans.

Line 12Total.Domesticorganizations, enter the total of lines 2through 11. Exempt foreignorganizations, enter the total of lines 3,4, 5, and 11 only.


Include in column (b) all ordinary andnecessary expenses paid or incurred toproduce or collect investment incomefrom: interest, dividends, rents, amountsreceived from payments on securitiesloans (as defined in section 512(a)(5)),royalties, income from notional principalcontracts, and other substantially similarincome from ordinary and routineinvestments excluded by section512(b)(1); or for the management,conservation, or maintenance ofproperty held for the production ofincome that is taxable under section4940.

If any of the expenses listed in column

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

Note: The deduction for expenses paidor incurred in any tax year for producinggross investment income earnedincident to a charitable function cannotbe more than the amount of incomeearned from the function which is

includible as gross investment incomefor the year.

For example, if rental income isincidentally realized in 1994 from historicbuildings held open to the public,deductions for amounts paid or incurredin 1994 for the production of suchincome may not be more than theamount of rental income includible asgross investment income in column (b)for 1994.

Note: Do not include on lines 13 through23 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 include the section4940 tax paid or incurred on netinvestment income or the section 511tax on unrelated business income. Salestaxes may not be deducted separately,but must be treated as a part of the costof acquired property, or as a reductionof the amount realized on disposition ofthe property.


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

A deduction for depletion is allowed,but must be computed only under thecost depletion method.

The basis used in computingdepreciation and depletion is the basis

determined 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 50% of the expense forbusiness meals, etc., paid or incurred inconnection with travel, meetings, etc.,relating to the production of investmentincome, may be deducted in computingnet investment income (section 274 (n)).

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

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

Net Amounts

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

The amount entered is subject to theexcise tax imposed on privatefoundations (domestic organizations1% (section 4940(e)), 2% (section4940(a) or (b)), exempt foreignorganizations4% (section 4948)) as

computed in Part VI. However, if theorganization is a domestic organizationand line 26 is more than line 12 (i.e.,expenses exceed income), enter zero(not a negative amount).

Column (c)Adjusted Net Income

Note: See1 below underNonoperatingPrivate Foundationsto see if you arerequired to make any entries in column(c).

Revenue

In general, adjusted net income is theamount of a private foundations gross

income that is more than the expensesof earning the income. The modificationsand exclusions explained below areapplied to gross income and expensesin figuring adjusted net income.

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

Nonoperating private foundations shouldfollow the special rules that apply.

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

Private Operating Foundations.Allorganizations that claim status as privateoperating foundations under section4942(j)(3) or 4942(j)(5) must complete alllines of column (c) that apply, according

to the general rules for income andexpenses that apply to this column, thespecific line instructions for lines 3through 27c, and Special Rule 3 andExamples 1 and 2 given below.

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

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

2. If a nonoperating private foundation

has income from charitable activities, itmust report that income only on lines 10and/or 11 in column (c). Thesefoundations do not need to report otherkinds of income and expenses (such asinvestment income and expenses) incolumn (c).

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

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

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

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

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

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

Line 8Net short-term capital gain.

Note: Only private operating foundationsshould compute their short-term capitalgains and report them on line 8.

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 or loss or a netshort-term capital loss in column (c).

A net gain from the sale or exchangeof depreciable property, or land used ina trade or business (section 1231) and

held for more than 1 year is not includedin the computation of adjusted netincome. A net loss from such property,however, should be included on line 23,Other expenses.

In general, organizations may use thenet short-term capital gain reported inPart IV, line 3. However, because Part IVdoes not take into account capital gainsand losses related to debt-financedproperty, any short-term capital gain ondebt-financed property must be takeninto 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 theproperty was considered a qualifyingdistribution for any tax year.

3. Any amount set aside for a specific

project (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 an earlier taxyear as qualifying distributions to:

a. A private foundation, which is not aprivate operating foundation, if theamounts were not redistributed by thegrantee organization by the close of itstax year following the year in which it

received the funds, orb. 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 fromsales of inventory as shown in column(a), line 10c.

Line 11Other income.Include allother items includible in adjusted net


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income not covered elsewhere in column(c).


Deductible expenses include the part ofa private foundations operatingexpenses that is paid or incurred toproduce or collect gross incomereported on lines 311 of column (c). Ifonly part of the property producesincome includible in column (c),deductions such as interest, taxes, andrent must be divided between thecharitable and noncharitable uses of theproperty. If the deductions for propertyused for a charitable, educational, orother similar purpose are more than theincome from the property, the excesswill not be allowed as a deduction butmay be treated as a qualifyingdistribution in Part I, column (d). SeeExamples 1 and 2 on page 11.

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 theproduction 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. These rules relateonly to gain or loss on dispositions forpurposes of the tax on net investmentincome.

Line 21Travel, conferences, andmeetings.Enter the total amount ofexpenses paid or incurred by officers,employees, or others for travel,conferences, meetings, etc., related to

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

Line 23Other expenses.In additionto the applicable portion of expensesfrom column (a), include any net lossfrom the sale or exchange of land ordepreciable property that was held for

more than 1 year and used in a trade orbusiness.

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

Net Amounts

Line 27cAdjusted net income.Subtract line 26, column (c) from line 12,column (c) and enter the difference.

Column (d)Disbursements forCharitable Purposes


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

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

Expenses entered in column (d) relateto activities that constitute the charitable

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

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

Example. An educational seminarproduced $1,000 in income which wasreportable in columns (a) and (c).

Expenses attributable to this charitableactivity were $1,900. Only $1,000 ofexpense would be reported in column (c)and the remaining $900 in expensewould be reported in column (d).

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

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

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

If you want to provide an analysis ofdisbursements that is more detailed thancolumn (d), you may attach a scheduleinstead of completing lines 13 through25. The schedule must include all thespecific items of lines 13 through 25,

and the total from the schedule must beentered in column (d), line 26.

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

Line 25Contributions, gifts, grantspaid.Enter on line 25 all contributions,gifts, and grants the foundation paid

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

Do not reduce the amount of grantspaid in the current year by the amount

of 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 current years write-offsof prior years program-relatedinvestments. All program-relatedinvestments are included in qualifyingdistributions (Part XII, line 1b) in the yearthe investment is made.

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

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

Enter the end-of-year figures to the

left of column (a) to report receivablesand the related allowance for doubtfulaccounts or depreciable assets andaccumulated depreciation.

Foundations whose books of accountincluded total assets of $5,000 or moreat any time during the year mustcomplete all of columns (a), (b), and (c).

Foundations with less than $5,000 oftotal assets per books at all times duringthe year must complete all of columns(a) and (b), and only line 16 of column(c).


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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 toemployees or officers or refundabledeposits paid to suppliers or others.

Line 2Savings and temporary cashinvestments.Enter the total of cash insavings or other interest-bearingaccounts and temporary cash

investments, such as money marketfunds, commercial paper, certificates ofdeposit, and U.S. Treasury bills or othergovernmental obligations that mature inless than 1 year.

Line 3Accounts receivable.Enterthe total accounts receivable (reducedby the corresponding allowance fordoubtful accounts) from the sale ofgoods and/or the performance ofservices. Claims against vendors orrefundable deposits with suppliers orothers may be reported here if notsignificant in amount. (Otherwise, reportthem on line 15, Other assets.) Anyreceivables due from officers, directors,

trustees, foundation managers, or otherdisqualified persons must be reportedon line 6. Report receivables (includingloans and advances) due from otheremployees on line 15.

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 (andon an attached schedule describedbelow) all receivables due from officers,directors, trustees, foundation managers,and other disqualified persons and allsecured and unsecured loans (includingadvances) to such persons. Disqualifiedperson is defined in General InstructionC.

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

same terms apply to all loans made.Salary advances and other advancesfor the personal use and benefit of therecipient and receivables subject tospecial 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 public

from an activity functionally related tothe foundations charitable purposesmay be reported as a single total for allthe officers, directors, etc. Traveladvances made for official business ofthe organization may also be reported asa single total.

For each outstanding loan or otherrece

Documents

US Internal Revenue Service: i990pf--1994