Contents
Part		Page
I	Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees	1
II	Compensation of the Five Highest Paid Independent Contractors for Professional Services	2
III	Statements About Activities	2
IV	Reason for Non-Private Foundation Status	3
IV-A	Support Schedule	5
V	Private School Questionnaire	7
VI-A	Lobbying Expenditures by Electing Public Charities	9
VI-B	Lobbying Activity by Nonelecting Public Charities	11
VII	Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations	12
	Index	14

General Instructions

Purpose of Form

Schedule A (Form 990 or 990-EZ) is used by:

• Section 501(c)(3) organizations, and
• Section 4947(a)(1) nonexempt charitable trusts.

These organizations must use Schedule A (Form 990 or 990-EZ) to furnish additional information not required of other types of organizations that file Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Section 6033(b) and Rev. Proc. 75-50, 1975-2 C.B. 587 require this additional information.

Note:   For purposes of these instructions, the term section 501(c)(3) includes organizations exempt under sections:
 

• 501(e), Cooperative Hospital Service Organizations
• 501(f), Cooperative Service Organizations of Operating Educational Organizations
• 501(k), Child Care Organizations
• 501(n), Charitable Risk Pools.

Who Must File

An organization described in section 501(c)(3) or a nonexempt charitable trust described in section 4947(a)(1) must complete and attach Schedule A (Form 990 or 990-EZ) to its Form 990 or Form 990-EZ.

If an organization is not required to file Form 990, or Form 990-EZ, it is not required to file Schedule A (Form 990 or 990-EZ).

Do not use Schedule A (Form 990 or 990-EZ) if an organization is a private foundation. Instead, file Form 990-PF, Return of Private Foundation.

Period Covered

The organization's Schedule A (Form 990 or 990-EZ) should cover the same period as the Form 990, or Form 990-EZ, with which it is filed.

Penalties

Schedule A (Form 990 or 990-EZ) is considered a part of Form 990, or Form 990-EZ, for section 501(c)(3) organizations and section 4947(a)(1) nonexempt charitable trusts that are required to file either form. Therefore, any such organization that does not submit a completed Schedule A (Form 990 or 990-EZ) with its Form 990, or Form 990-EZ, does not satisfy its filing requirement and may be charged a $20 a day penalty ($100 a day for large organizations). See General Instruction K of the Instructions for Form 990 and Form 990-EZ for details on this and other penalties.

To avoid having to respond to requests for missing information, please be sure to:

1. Complete all applicable line items;
2. Answer Yes or No to each question on the return;
3. Make an entry (including a zero when appropriate) on all total lines; and
4. Enter None or N/A if an entire part does not apply.

Specific Instructions

• Attach separate sheets on which you follow the same format and sequence as on the printed form, if you need more space for any part or line item.
• Show totals on the printed form.
• Put the organization's name and employer identification number (EIN) on the attached separate sheets and identify the part or line that the attachments support.
• You may show money items as whole dollars. To do so, drop any amount less than 50 cents and increase any amount from 50 through 99 cents to the next higher dollar.

Part I - Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees

Complete Part I for the five employees with the highest annual compensation over $50,000. Enter the number of other employees with annual compensation over $50,000 who are not individually listed in Part I. Do not include employees listed in Part V of Form 990 or in Part IV of Form 990-EZ (List of Officers, Directors, Trustees, and Key Employees).

In columns (c) through (e), show all cash and noncash forms of compensation for each listed employee whether paid currently or deferred. The organization may also provide an attachment to explain the entire year 2002 compensation package for any person listed in Part I.

Column (c)

Enter salary, fees, bonuses, and severance payments received by each listed employee. Include current year payments of amounts reported or reportable as deferred compensation in any prior year.

Column (d)

Include in column (d) all forms of deferred compensation and future severance payments (whether or not funded, whether or not vested, and whether or not the deferred compensation plan is a qualified plan under section 401(a)). Include in this column payments to welfare benefit plans on behalf of the employee. Such plans provide benefits such as medical, dental, life insurance, severance pay, disability, etc. Reasonable estimates may be used if precise cost figures are not readily available.

Unless the amounts are reported in column (c), report, as deferred compensation in column (d), salaries and other compensation earned during the period covered by the return, but not yet paid by the date the organization files its return.

Column (e)

Enter in column (e) both taxable and nontaxable fringe benefits (other than de minimis fringe benefits described in section 132(e)). Include expense allowances or reimbursements that the recipients must report as income on their separate income tax returns. Examples include:

• Amounts for which the recipient did not account to the organization,
• Allowances that were more than the payee spent on serving the organization, and
• Payments made in connection with indemnification arrangements, the value of the personal use of housing, automobiles, or other assets owned or leased by the organization (or provided for the organization's use without charge), as well as any other taxable and nontaxable fringe benefits.

See Pub. 525, Taxable and Nontaxable Income, for more information.

Part II - Compensation of the Five Highest Paid Independent Contractors for Professional Services

Complete Part II for the five highest paid independent contractors (whether individuals or firms) who performed personal services of a professional nature for the organization and, in return, received over $50,000 for the year from the organization. Examples of such contractors include attorneys, accountants, doctors, and professional fundraisers.

Show also the number of other independent contractors who received more than $50,000 for the year for performing such services but who are not individually listed in Part II.

The organization may, at its discretion, provide an attachment to explain the entire year 2002 compensation package for any person listed in Part II.

Fundraising fees exceeding $50,000 should be reported in Part II, but not reimbursements for amounts paid by the fundraiser to others for printing, paper, envelopes, postage, mailing list rental, etc. Part II is intended for the fee portion of payments to contractors, not for any expense reimbursements.

Part III - Statements About Activities

Line 1.   If you checked Yes on this line, you must complete Part VI-A or VI-B and provide the required additional information; otherwise, the return may be considered incomplete.

Enter the total expenses paid or incurred in connection with the lobbying activities described on line 1. The amount of expenses you enter should equal the amounts on line 38, Part VI-A, or line i, Part VI-B. If columns (a) and (b) of line 38 are both completed, enter both amounts separately.

Substantial part test.   In general, a section 501(c)(3) organization may not devote a substantial part of its activities to attempts to influence legislation. Under the substantial part test, if such an organization engages in substantial lobbying activities, the organization will lose both its tax-exempt status and its ability to receive tax-deductible charitable contributions. Except for churches, certain church affiliated organizations, and private foundations, an organization that loses its section 501(c)(3) status because it did not meet the substantial part test will owe an excise tax under section 4912 on all of its lobbying expenditures. Managers of the organization may also be jointly and severally liable for this tax.

Expenditure test.   As an alternative to the substantial part test, eligible public charities may elect the expenditure test of section 501(h). The expenditure test generally permits higher limits for lobbying expenditures than allowed under the substantial part test. Electing public charities are subject to the lobbying expenditure definitions of section 4911, which are generally more liberal than the definitions under the substantial part test. Section 4911 applies only to public charities that made a valid section 501(h) election by filing Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation.

Electing public charities.   If the organization is an electing public charity, you must complete Part VI-A of this form.

Nonelecting public charities.   If the organization checked Yes but is not an electing public charity, you must complete Part VI-B and attach a statement giving a detailed description of the organization's lobbying activities.

Important:   All charities, both electing and nonelecting, are absolutely prohibited from intervening in a political campaign for or against any candidate for an elective public office. If a charity does intervene in a political campaign, it will lose both its tax-exempt status and its eligibility to receive tax-deductible charitable contributions. Both the organization and its managers are subject to the tax on political expenditures under section 4955.

Line 2.   See Part IV, Definitions, for the meaning of the term family member.

Lines 2a through 2e   apply to both sides of a listed transaction. Reporting is required, for example, whether the exempt organization is a payer or payee, buyer or seller, lender or borrower.

Line 2d. Compensation or Repayment.   If the only compensation or repayment relates to amounts the organization reported in Part V of Form 990, or Part IV of Form 990-EZ, check Yes and write See Part V, Form 990, or See Part IV of Form 990-EZ, on the dotted line to the left of the entry space.

Line 3. Scholarships, etc.   The term qualify in the Note for line 3 means that organizations or individuals will use the funds the organization provides for charitable purposes described in sections 170(c)(1) and 170(c)(2).

The term qualify also means that individual recipients belong to a charitable class and the payments are to aid them. Examples include:

• Helping the aged poor;
• Training teachers and social workers from underdeveloped countries; and
• Awarding scholarships to individuals.

Line 4. Section 403(b) Annuity Plan.   Indicate whether you have a section 403(b) annuity plan available for your employees.

Part IV - Reason for Non-Private Foundation Status

Definitions

The following terms are used in more than one item in Part IV. The definitions given below generally apply.

    Support (for lines 10, 11, and 12 of Part IV), with certain qualified exceptions described below, means all forms of support including (but not limited to) -

Support includes -	Part IV-A Line
Gifts, grants, contributions, membership fees	15 and 16
Any amounts an organization receives from the exercise or performance of its charitable, educational, or other purpose or function constituting the basis for its exemption*.	17
*Note: The amounts on line 17 are included as support only for those organizations that checked the box on line 12. Otherwise, the amounts on line 17 are not included in support.
Net income from unrelated business activities, whether or not such activities are carried on regularly as a trade or business	18 and 19
Gross investment income, such as interest, dividends, rents, and royalties	18
Tax revenues levied for the benefit of an organization and either paid to or expended on behalf of such organization; and	20
The value of services or facilities (exclusive of those generally furnished to the public without charge) furnished by a governmental unit referred to in Code section 170(c)(1) to an organization without charge	21

Support does not include -	Part IV-A Line
Any amounts an organization receives from the exercise or performance of its charitable, educational, or other purpose or function constituting the basis for its exemption*	17
*Note: For organizations that checked the box on line 12, the amounts on line 17 of the Support Schedule are included in support.
Any gain upon the sale or exchange of property which would be considered under any section of the Code as gain from the sale or exchange of a capital asset.
Contributions of services for which a deduction is not allowable.

Support from a governmental unit,   with certain exceptions described below, includes:

• Any amounts received from a governmental unit, including donations or contributions and amounts received in connection with a contract entered into with a governmental unit for the performance of services or in connection with a government research grant, provided these amounts are not excluded from the term support as amounts received from exercising or performing the organization's charitable purpose or function.
  An amount paid by a governmental unit to an organization is not treated as received from exercising or performing its charitable, etc., purpose or function if the payment is to enable the organization to provide a service to, or maintain a facility for, the direct benefit of the public, as for example, to maintain library facilities that are open to the public.
• Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.
• The value of services or facilities (exclusive of services or facilities generally furnished, without charge, to the public) furnished by a governmental unit to the organization without charge. For example, a city pays the salaries of personnel to guard a museum, art gallery, etc., or provides the use of a building rent free. However, the term does not include the value of any exemption from Federal, state, or local tax or any similar benefit.

Indirect contributions from the general public   are what the organization receives from other organizations that receive a substantial part of their support from general public contributions. An example is the organization's share of the proceeds from an annual community chest drive (such as the United Way or United Fund). These are included on line 15.

Disqualified person.   A disqualified person is:

1. A substantial contributor, who is -
   1. Any person who gave an aggregate amount of more than $5,000, if that amount is more than 2% of the total contributions the foundation or organization received from its inception through the end of the year in which that person's contributions were received.
      
   2. The creator of a trust (without regard to the amount of contributions received by the trust from the creator and other persons).
   • Any person who is a substantial contributor at any time generally remains a substantial contributor for all future periods even if later contributions by others push that person's contributions below the 2% figure discussed above.
   • Gifts from the contributor's spouse are treated as gifts from the contributor.
   • Gifts are generally valued at fair market value as of the date the organization received them.
2. An officer, director, or trustee of the organization or any individual having powers or responsibilities similar to those of officers, directors, or trustees.
3. An owner of more than 20% of the voting power of a corporation, profits interest of a partnership, or beneficial interest of a trust or an unincorporated enterprise that is a substantial contributor to the organization.
4. A family member of an individual in the first three categories. A family member includes only a person's spouse, ancestors, children, grandchildren, great grandchildren, and the spouses of children, grandchildren, and great grandchildren.
5. A corporation, partnership, trust, or estate in which persons described in 1 through 4 above own more than 35% of the voting power, profits interest, or beneficial interest. See section 4946(a)(1).

Normally.   An organization is considered normally to satisfy the public support test (for lines 10, 11, and 12 of the Support Schedule) for its current tax year and the tax year immediately following its current tax year, if the organization satisfies the applicable support test for the 4 tax years immediately before the current tax year.

If the organization has a material change (other than from unusual grants - see instructions for line 28) in its sources of support during the current tax year, the data ordinarily required in the Support Schedule covering the years 1998 through 2001 must be submitted for the years 1998 through 2002. Prepare and attach a 5-year schedule using the same format as provided in the Support Schedule for lines 15 through 28.

Lines 5 through 14. Reason for Non-Private Foundation Status.   Check one of the boxes on these lines to indicate the reason the organization is not a private foundation. The organization's exemption letter states this reason, or the local IRS office can tell you.

Line 6. School.   Check the box on line 6 for a school whose primary function is the presentation of formal instruction, and which regularly has a faculty, a curriculum, an enrolled body of students, and a place where educational activities are regularly conducted.

A private school, in addition, must have a racially nondiscriminatory policy toward its students. For details about these requirements, see the instructions for Part V.

Line 7. Hospital or Cooperative Hospital Service Organization.   Check the box on line 7 for an organization whose main purpose is to provide hospital or medical care. A rehabilitation institution or an outpatient clinic may qualify as a hospital, but the term does not include medical schools, medical research organizations, convalescent homes, homes for the aged, or vocational training institutions for the handicapped.

Check the box on line 7 also for a cooperative hospital service organization described in section 501(e).

Line 9. Hospital Medical Research Organization.   Check the box on line 9 for a medical research organization operated in connection with or in conjunction with a hospital. The hospital must be described in section 501(c)(3) or operated by the Federal government, a state or its political subdivision, a U.S. possession or its political subdivision, or the District of Columbia.

Medical research means studies and experiments done to increase or verify information about physical or mental diseases and disabilities and their causes, diagnosis, prevention, treatment, or control. The organization must conduct the research directly and continuously. If it primarily gives funds to other organizations (or grants and scholarships to individuals) for them to do the research, the organization is not a medical research organization.

The organization is not required to be an affiliate of the hospital, but there must be an understanding that there will be close and continuous cooperation in any joint-effort medical research.

Assets test/Expenditure test.   An organization qualifies as a medical research organization if its principal purpose is medical research, and it devotes more than half its assets, or spends at least 3.5% of the fair market value of its endowment, in conducting medical research directly.

Either test may be met based on a computation period consisting of the immediately preceding tax year or the immediately preceding 4 tax years.

If an organization does not satisfy either the assets test or the expenditure test, it may still qualify as a medical research organization, based on the circumstances involved.

These tests are discussed in Regulations sections 1.170A-9(c)(2)(v) and (vi). Value the organization's assets as of any day in its tax year but use the same day every year. Value the endowment at fair market value, using commonly accepted valuation methods. (See Regulations section 20.2031.)

Line 10. Organization Operated for the Benefit of a Governmental Unit.   Check the box on line 10 and complete the Support Schedule if the organization receives and manages property for and expends funds to benefit a college or university that is owned or operated by one or more states or their political subdivisions. The school must be as described in the first paragraph of the instructions for line 6.

Expending funds to benefit a college or university includes acquiring and maintaining the campus, its buildings, and its equipment, granting scholarships and student loans, and making any other payments in connection with the normal functions of colleges and universities.

The organization must meet essentially the same public support test described below for line 11. See Rev. Rul. 82-132, 1982-2 C.B. 107.

Line 11. Organization Meeting the Section 509(a)(1) Public Support Test.   Check either box (but not both) on line 11a or 11b and complete the Support Schedule to determine whether the organization meets the section 509(a)(1)/170(b)(1)(A)(vi) public support test described below.

The Support Schedule is completed for an organization that normally (see Part IV, Definitions) receives at least 331/3% of its support (excluding income received in exercising its charitable, etc., function) from:

1. Direct or indirect contributions from the general public;
2. Other publicly supported (section 170(b)(1)(A)(vi)) organizations; or
3. A governmental unit.

To determine whether the section 509(a)(1)/170(b)(1)(A)(vi) test is met, donor contributions are considered support from direct or indirect contributions from the general public only to the extent that the total amount received from any one donor during the 4-tax-year period is 2% or less of the organization's total support for those 4 tax years as described below.

• Any contribution by one individual will be included in full in the total support denominator of the fraction determining the 331/3%-of-support or the 10%-of-support limitation.
• Only the portion of each donor's contribution that is 2% or less of the total support denominator will be included in the numerator.

  In applying the 2% limitation, all contributions by any person(s) related to the donor as described in section 4946(a)(1)(C) through (G) (and related regulations) will be treated as if made by the donor.

  The 2% limitation does not apply to support from governmental units referred to in section 170(c)(1), or to contributions from publicly supported organizations (section 170(b)(1)(A)(vi)), that check the box on line 11a or 11b.

Example.   X organization reported the following amounts in its Support Schedule for the 4-year period 1998 through 2001:

Line		(e) Total
15	Gifts, grants & contributions	$300,000
17	Gross receipts from admissions, etc.	100,000
18	Dividends & interest	300,000
24	Line 23 minus line 17	600,000
26a	2% of line 24 (2% limitation)	12,000
b	Total of contributions exceeding the 2% limitation	98,000

The X organization determined whether or not it met the section 509(a)(1)/170(b)(1)(A)(vi) public support test as follows:

Total support (line 24):		$600,000
Direct contributions:   Total direct contributions from persons who contributed less than 2% of total support		50,000
Total direct contributions from six donors, each of whom gave more than 2% ($12,000) of total support		170,000
Indirect contributions from the general public:
United Fund		40,000
Grant from Y City		40,000
Total gifts, grants & contributions		$300,000
Total direct contributions from six donors, each of whom gave more than 2% of total support	$170,000
2% limitation for six donors: (2% × $600,000 × 6)	72,000
Less: Direct contributions in excess of 2% of total support		98,000
Total public support		$202,000

Section 509(a)(1)/170(b)(1)(A)(vi) computation:
Line 26c Total support			$600,000
Line 26d Less total of lines:
	18	$300,000
	19	-0-
	22	-0-
	26b	98,000	$398,000
Line 26e Total public support			$202,000
Line 26f Public support percentage (line 26e divided by line 26c - $202,000/$600,000)			33.67%

Since X organization received more than 331/3% of its total support for the period from public sources, it qualifies as a section 509(a)(1)/170(b)(1)(A)(vi) publicly supported organization. Note that if an organization fails the public support test for 2 consecutive years, it loses its public charity status and becomes a private foundation.

Facts and circumstances- Public support test.   An organization that does not qualify as publicly supported under the test described above may be publicly supported on the basis of the facts in its case if it receives at least 10% of its support from the general public. If you believe your organization is publicly supported according to applicable regulations, attach a detailed statement of the facts upon which you base your conclusion.

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