Line 3 - Membership dues and assessments
Enter members' and affiliates' dues and assessments that are not contributions.
Dues and assessments received that compare reasonably with available benefits.
When dues and assessments are received that compare reasonably with membership benefits received, report such dues and assessments on line 3.
Organizations described in section 501(c)(5), (6), or (7) generally provide benefits that have a reasonable relationship to dues, although benefits
to members may be indirect.
Dues or assessments received that exceed the value of available membership benefits.
Whether or not membership benefits are used, dues received by an organization, to the extent they are more than the monetary value of the
membership benefits available to the dues payer, are a contribution that should be reported on line 1a. See Rev. Rul. 54-565, 1954-2 C.B. 95 and Rev.
Rul. 68-432, 1968-2 C.B. 104.
Dues received primarily for the organization's support.
If a member pays dues mainly to support the organization's activities and not to obtain benefits of more than nominal monetary value, those dues
are a contribution to the organization includible on line 1a.
Examples of membership benefits.
These include subscriptions to publications, newsletters (other than one about the organization's activities only), free or reduced-rate admissions
to events the organization sponsors, the use of its facilities, and discounts on articles or services that both members and nonmembers can buy. In
figuring the value of membership benefits, do not include intangible benefits, such as the right to attend meetings, vote or hold office in the
organization, and the distinction of being a member of the organization.
Line 4 - Interest on savings and temporary cash investments
Enter the amount of interest income from savings and temporary cash investments reportable on line 46. So-called dividends or earnings received
from mutual savings banks, money market funds, etc., are actually interest and should be entered on line 4.
Line 5 - Dividends and interest from securities
Enter the amount of dividend and interest income from equity and debt securities (stocks and bonds) of the type reportable on line 54. Include
amounts received from payments on securities loans, as defined in section 512(a)(5). Do not include any capital gains dividends that are reportable on
line 8. See the instructions for line 2 for reporting income from program-related investments.
Line 6a - Gross rents
Enter on line 6a the rental income received for the year from investment property reportable on line 55. Do not include on line 6a rental income
related to the reporting organization's exempt function (program service). Report such income on line 2. For example, an exempt organization whose
exempt purpose is to provide low-rental housing to persons with low income would report that rental income as program service revenue on line 2.
Rental income received from an unaffiliated exempt organization is generally considered as unrelated to the reporting organization's exempt purpose
and reportable on line 6a. However, note an exception given in the instructions for line 2 when the reporting organization aids an unaffiliated
organization with its exempt function.
Only for purposes of completing this return, the reporting organization must report any rental income received from an affiliated exempt
organization as program service revenue on line 2.
Line 6b - Rental expenses
Enter the expenses paid or incurred for the income reported on line 6a. Include interest related to rental property and depreciation if it is
recorded in the organization's books and records. Report in column (B) of Part II (Program services) any rental expenses allocable to rental income
reportable as program service revenue on line 2.
Line 6c - Net rental income or (loss)
Subtract line 6b from line 6a. Show any loss in parentheses.
Line 7 - Other investment income
Enter the amount of investment income not reportable on lines 4 through 6 and describe the type of income in the space provided or in an
attachment. The income should be the gross amount derived from investments reportable on line 56. Include, for example, royalty income from mineral
interests owned by the organization. However, do not include income from program-related investments. See the instructions for line 2. Also, do not
include unrealized gains and losses on investments carried at market value. See the instructions for line 20.
Lines 8a through 8d - Gains (or losses) from sale of assets other than inventory
Report, on lines 8a through 8c, all sales of securities in column (A). Use column (B) to report sales of all other types of investments (such as
real estate, royalty interests, or partnership interests) and all other noninventory assets (such as program-related investments and fixed assets used
by the organization in its related and unrelated activities).
On line 8a, for each column, enter the total gross sales price of all such assets. Total the cost or other basis (less depreciation) and selling
expenses and enter the result on line 8b. On line 8c, enter the net gain or loss.
On lines 8a and 8c, also report capital gains dividends, the organization's share of capital gains and losses from a partnership, and capital gains
distributions from trusts. Indicate the source on the schedule described below.
Combine the gain and/or loss figures reported on line 8c, columns (A) and (B) and report that total on line 8d. Do not include any unrealized gains
or losses on securities carried at market value in the books of account. See the instructions for line 20.
For reporting sales of securities on Form 990, you may use the more convenient average cost basis method to figure the organization's gain or loss.
When a security is sold, compare its sales price with the average cost basis of the particular security to determine gain or loss. However, generally,
for reporting sales of securities on Form 990-T, do not use the average cost basis to determine gain or loss.
Nonpublicly traded securities and noninventory items.
Attach a schedule showing the sale or exchange of nonpublicly traded securities and the sale or exchange of other assets that are not inventory
items. The schedule should show security transactions separately from the sale of other assets. Show for each of these assets:
- Date acquired and how acquired,
- Date sold and to whom sold,
- Gross sales price,
- Cost, other basis, or if donated, value at time acquired (state which),
- Expense of sale and cost of improvements made after acquisition, and
- If depreciable property, depreciation since acquisition.
Publicly traded securities.
On the attached schedule, for sales of publicly traded securities through a broker, total the gross sales price, the cost or other basis, and the
expenses of sale on all such securities sold, and report lump-sum figures in place of the detailed reporting required by the above paragraph. Publicly
traded securities include common and preferred stocks, bonds (including governmental obligations), and mutual fund shares that are listed and
regularly traded in an over-the-counter market or on an established exchange and for which market quotations are published or otherwise readily
available.
Lines 9a through 9c - Special events and activities
On the appropriate line, enter the gross revenue, expenses, and net income (or loss) from all special events and activities, such as dinners,
dances, carnivals, raffles, bingo games, other gambling activities, and door-to-door sales of merchandise.
These activities only incidentally accomplish an exempt purpose. Their sole or primary purpose is to raise funds that are other than contributions
to finance the organization's exempt activities. This is done by offering goods or services that have more than a nominal value (compared to the price
charged) for a payment that is more than the direct cost of those goods or services.
The gross revenue from gambling activities and other special events must be reported in the right-hand column on line 9a without reduction for cash
or noncash prizes, cost of goods sold, compensation, fees, or other expenses.
Characterizing any required payment as a donation or contribution on tickets or on advertising or solicitation materials does not
affect how such payments should be reported on Form 990 or Form 990-EZ. As discussed in the instructions for line 1, the amount of the contribution is
the excess of the amount paid over the retail value of the goods or services received by the payer. See also Pub. 526.
Special events may generate both revenue and contributions.
Special events sometimes generate both contributions and revenue. When a buyer pays more than the retail value of the goods or services
furnished, enter:
- As gross revenue, on line 9a (in the right-hand column), the retail value of the goods or services,
- As a contribution, on both line 1a and line 9a (within the parentheses), the amount received that exceeds the retail value of the goods or
services given.
Report on line 9b only the expenses directly attributable to the goods or services the buyer receives from a special event. Fundraising expenses
attributable to contributions, reported on both line 1a and line 9a (within the parentheses), are reportable in Part II, column (D), Fundraising. If
you include an expense on line 9b, do not report it again on line 10b or in Part II. Expenses reported on line 10b relate to sales of inventory.
Expenses reported in Part II, column (D), relate to contributions raised through fundraising.
Example.
At a special event, an organization received $100 in gross receipts for goods valued at $40. The organization entered gross revenue of $40 on line
9a (in the right-hand column) and entered a contribution of $60 on both line 1a and line 9a (within the parentheses). The contribution of $60 was the
difference between the gross revenue of $40 and the gross receipts of $100.
The expenses directly relating to the sale of the goods would be reported on line 9b. However, all expenses of raising contributions would be
reported in column (D), Fundraising, Part II and not on line 9b.
For more details about contributions received through fundraising, and contributions and revenue received through special events, see the line 1
instructions. See also General Instruction L and its references.
Sales or gifts of goods or services of only nominal value.
If the goods or services given or offered at special events have only nominal value, include all of the receipts as contributions on line 1a and
all of the related expenses as fundraising expenses on line 15 and in column (D) of Part II. See General Instruction L for a description of nominal or
insubstantial benefits.
An activity may generate only contributions.
An activity that generates only contributions, such as a solicitation campaign by mail, is not a special event and should not be reported on line
9.
Contributions from such an activity are reportable on line 1, and the related fundraising expenses are reportable in column (D), Part II.
Sweepstakes, raffles, and lotteries may produce revenue or contributions.
The proceeds of solicitation campaigns in which the names of contributors and other respondents are entered in a drawing for the awarding of prizes
(so-called sweepstakes or lotteries) are contributions, reportable on line 1, and the related expenses are fundraising expenses,
reportable in column (D) of Part II. However, raffles and lotteries in which a payment of at least a specified minimum amount is required for each
entry are special events, reportable on line 9, unless the prizes awarded have only nominal value. Reporting payments in their entirety as
contributions when gifts or services given are nominal in value is discussed above.
Attached schedule.
Attach a schedule listing the three largest special events conducted, as measured by gross receipts. Describe each of these events and show for
each event: the gross receipts; the amount of contributions included in gross receipts (see the instructions above); the gross revenue (gross receipts
less contributions); the direct expenses; and the net income (or loss) (gross revenue less direct expenses).
Include the same information, in total figures, for all other special events held that were not among the three largest. Indicate the type and
number of the events not listed individually (e.g., three dances and two raffles).
An example of this schedule of special events might appear in columnar form as follows:
| Special Events: |
(A) |
(B) |
(C) |
All Other |
Total |
| Gross Receipts |
$xx |
$xx |
$xx |
$xx |
$xx |
| Less: Contributions |
xx |
xx |
xx |
xx |
xx |
| Gross Revenue |
xx |
xx |
xx |
xx |
xx |
| Less: Direct Expenses |
xx |
xx |
xx |
xx |
xx |
| Net Income or (loss) |
$xx |
$xx |
$xx |
$xx |
$xx |
If you use the above schedule, report the total for Contributions on line 1a of Form 990 and on line 9a (within the parentheses). Report the totals
for Gross Revenue, in the right-hand column, on line 9a; Direct Expenses on line 9b; and Net Income or (loss) on line 9c.
Lines 10a through 10c - Gross profit or (loss) from sales of inventory
Enter the gross sales (less returns and allowances), cost of goods sold, and gross profit or (loss) from the sale of inventory items. These sales
do not include items sold at special events that are reportable on line 9. Sales of inventory items reportable on line 10 are sales of those items the
organization either makes to sell to others or buys for resale. Sales of investments on which the organization expected to profit by appreciation and
sale are not reported here. Report sales of investments on line 8.
On line 10a, report gross sales revenue from sales of inventory items, whether the sales activity is an exempt function of the organization or an
unrelated trade or business.
On line 10b, report the cost of goods sold related to the sales of such inventory. The usual items included in cost of goods sold are direct and
indirect labor, materials and supplies consumed, freight-in, and a proportion of overhead expenses. Marketing and distribution costs are not included
in cost of goods sold but are reported in Part II, column (B), Program services.
Attached schedule.
In an attached schedule, give a breakdown of items sold; (e.g., sales of food, souvenirs, electronic equipment, uniforms, or educational
publications).
Line 11 - Other revenue
Enter the total amount from Part VII, lines 103(a) through (e) (Other revenue), columns (B), (D), and (E). This figure represents the total income
from all sources not covered by lines 1 through 10 of Part I. Examples of income includible on line 11 are interest on notes receivable not held as
investments or as program-related investments (defined in the line 2 instructions); interest on loans to officers, directors, trustees, key employees,
and other employees; and royalties that are not investment income or program service revenue.
Lines 13 through 15 - Program services, management and general, and fundraising expenses
Section 4947(a)(1) nonexempt charitable trusts and section 501(c)(3) and (4) organizations.
Complete Part II and then enter on lines 13 through 15 the appropriate amounts from the totals for columns (B), (C), and (D) reported on line 44,
Part II.
All other organizations.
All other organizations are not required to complete lines 13 through 15 of the Form 990.
Line 16 - Payments to affiliates
This expense classification is used to report certain types of payments to organizations affiliated with (closely related to) a reporting
agency.
Payments to affiliated state or national organizations.
Dues paid by the local charity to its affiliated state or national (parent) organization are usually reported on line 16. Report on this line
predetermined quota support and dues (excluding membership dues of the type described below) by local agencies to their state or national
organizations for unspecified purposes; that is, general use of funds for the national organization's own program and support services.
Purchases from affiliates.
Purchases of goods or services from affiliates are not reported on line 16 but are reported as expenses in the usual manner.
Expenses for providing goods or services to affiliates.
In addition to payments made directly to affiliated organizations, expenses incurred in providing goods or services to affiliates may be reported
on line 16 if:
- The goods or services provided are not related to the program services conducted by the organization furnishing them (e.g., when a local
organization incurs expenses in the production of a solicitation film for the state or national organization); and
- The costs involved are not connected with the management and general or fundraising functions of the reporting organization. For example,
when a local organization gives a copy of its mailing list to the state or national organization, the expense of preparing the copy provided may be
reported on line 16, but not expenses of preparing and maintaining the local organization's master list.
Federated fundraising agencies.
These agencies (see the instructions for line 1b) should include in their own support the full amount of contributions received in connection with
a solicitation campaign they conduct, even though donors designate specific agencies to receive part or all of their individual contributions. These
fundraising organizations should report the allocations to participating agencies as grants and allocations (line 22) and quota support payments to
their state or national organization as payments to affiliates (line 16).
Voluntary awards or grants to affiliates.
Do not report on line 16 voluntary awards or grants made by the reporting agency to its state or national organization for specified purposes.
Report these awards or grants on line 22, Grants and allocations.
Membership dues paid to other organizations.
Report membership dues paid to obtain general membership benefits, such as regular services, publications, and materials, from other organizations
as Other expenses on line 43. This is the case, for example, if a charitable organization pays dues to a trade association comprised of
otherwise unrelated members.
Attached schedule.
Attach a schedule listing the name and address of each affiliate that received payments reported on line 16. Specify the amount and purpose of the
payments to each affiliate.
Note:
Properly distinguishing between payments to affiliates and grants and allocations is especially important if you use Form 990 for state reporting
purposes. See General Instruction E. If you use Form 990 only for reporting to the IRS, payments to affiliated state or national organizations that do
not represent membership dues reportable as Other expenses on line 43 (see instructions above) may be reported either on line 16 or line 22 and
explained in the required attachment.
Line 17 - Total expenses
Organizations using only column (A) of Part II should enter the total of line 16 and line 44 of column (A), Part II, on line 17. Other
organizations should enter the total of lines 13 through 16. Organizations using Form 5500 or an approved DOL form as a partial substitute for Form
990 should enter the total expense figure from Form 5500, or from the required reconciliation schedule if Form LM-2 or LM-3 is used. See General
Instruction F.
Line 18 - Excess or (deficit) for the year
Enter the difference between lines 12 and 17. If line 17 is more than line 12, enter the difference in parentheses.
Line 19 - Net assets or fund balances, beginning of year
Enter the balance at the beginning of the year as reported in column (A) of line 73 (or from Form 5500 or an approved DOL form if General
Instruction F applies). The balance at the beginning of the year for line 19 was the end of the year balance for line 21 and 73 as reported on the
organization's prior year return.
Line 20 - Other changes in net assets or fund balances
Attach a schedule explaining any changes in net assets or fund balances between the beginning and end of the year that are not accounted for by the
amount on line 18. Amounts to report here include adjustments of earlier years' activity; unrealized gains and losses on investments carried at market
value; and any difference between fair market value and book value of property given as an award or grant. See General Instruction G regarding the
reporting of a section 481(a) adjustment to conform to SFAS 116.
Line 21 - Net assets or fund balances, end of year
Enter the total of lines 18, 19, and 20. This total figure must equal the amount reported for the end of the year in column (B) of line 73.
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