Form 990 Part IX

Grants and other assistance to domestic organizations and domestic governments.

See Part IV, line 21

Line 1.
Enter the amount that the organization, at its own discretion, paid in grants or other assistance to domestic organizations and domestic governments. United Way and similar federated fundraising organizations should report grants to member or participating agencies on line 1. Organizations must report voluntary grants to state or local affiliates for specific (restricted) purposes or projects on line 1.

If the organization reported on line 1 more than $5,000 of grants or other assistance to any domestic organization or to any domestic government, the organization must complete Parts I and II of Schedule I (Form 990).

Section 501(c)(21) trusts. Use line 1 to report amounts paid by the trust to:

• The Federal Black Lung Disability Trust Fund pursuant to section 3(b)(3) of Public Law 95-227, or
• For insurance exclusively covering liabilities under sections 501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV). For details, see Regulations section 1.501(c)(21)-1(d).

Grants and other assistance to domestic individuals.

See Part IV, line 22

Line 2.
Enter the amount paid by the organization to domestic individuals in the form of scholarships, fellowships, stipends, research grants, and similar payments and distributions. Also include grants and other assistance paid to third-party providers for the benefit of specified domestic individuals. For example, a grant payment to a hospital to cover the medical expenses of a specific patient must be reported on line 2. By comparison, a grant to the same hospital to provide services to the general public or to unspecified charity patients must be reported on line 1.

If line 2 exceeds $5,000, the organization must complete Parts I and III of Schedule I (Form 990).

Section 501(c)(21) trusts. Use line 2 to report amounts paid
by the trust to or for the benefit of miners or their beneficiaries.

Grants and other assistance to foreign organizations, foreign governments, and foreign individuals.

See Part IV, lines 15 and 16

Line 3.
The organization must enter the total amount of grants and other assistance made to foreign organizations, foreign governments, and foreign individuals, and to domestic organizations or domestic individuals for the purpose of providing grants or other assistance to designated foreign organizations or foreign individuals.

If line 3 exceeds $5,000, the organization may have to complete Part II and/or Part III of Schedule F (Form 990), Statement of Activities Outside the United States. See the Instructions for Schedule F (Form 990) for more information.

Benefits paid to or for members

Line 4.
Enter the payments made by the organization to provide benefits to members (such as payments made by an organization exempt under section 501(c)(8), 501(c)(9), or 501(c)(17) to obtain insurance benefits for members, or patronage dividends paid by section 501(c)(12) organizations to their members). Don’t report on this line the cost of employment-related benefits such as health insurance, life insurance, or disability insurance provided by the organization to its officers, directors, trustees, key employees, and other employees. Report such costs for officers, directors, trustees, and key employees on Part IX, line 5; report such costs for other disqualified persons on Part IX, line 6; and report such costs for other employees on Part IX, lines 8 and 9.

Compensation of current officers, directors, trustees, and key employees

Line 5.
Enter the total compensation paid to current officers, directors, trustees, and key employees (as defined under Part VII, earlier) for the organization’s tax year. Compensation includes all forms of income and other benefits earned or received from the filing organization, common paymasters, and payroll/reporting agents in return for services rendered to the filing organization, including compensation reported on Forms W-2 and 1099, pension plan contributions and accruals, and other employee benefits, but doesn’t include non-compensatory expense reimbursements or allowances. Report all compensation amounts relating to such an individual, including those related to services performed in a capacity other than as an officer, director, trustee, or key employee.

Note. To the extent the following examples discuss allocation of expenses in columns (B), (C), and (D), they apply only to filers required to complete those columns.

Compensation not included above to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B)

Line 6.

Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must report the total compensation and other distributions provided to disqualified persons and persons described in section 4958(c)(3)(B) to the extent not included on line 5. See Appendix G.

Compensation includes all forms of income and other benefits earned or received from the filing organization, common paymasters, and payroll/reporting agents in return for services rendered to the filing organization, including compensation reported on Forms W-2 and 1099, pension plan contributions and accruals, and other employee benefits, but doesn’t include non-compensatory expense reimbursements or allowances.

Other salaries and wages

Line 7.
Enter the total amount of employee salaries, wages, fees, bonuses, severance payments, and similar amounts paid or provided from the filing organization, common paymasters, and payroll/reporting agents in return for services rendered to the filing organization that aren’t reported on line 5 or 6.

Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions)

Line 8.
Enter the employer’s share of contributions to, or accruals under, qualified and nonqualified pension and deferred compensation plans for the year. The organization should include contributions made by the filing organization, common paymasters, and payroll/reporting agents to the filing organization’s sections 401(k) and 403(b) pension plans on behalf of employees. However, it shouldn’t include contributions to qualified pension, profit-sharing, and stock bonus plans under section 401(a) solely for the benefit of current or former officers, directors, trustees, key employees, or disqualified persons, which are reportable on line 5 or 6.

Other employee benefits

Line 9. Other employee benefits.
Enter contributions by the filing organization, common paymasters, and payroll/reporting agents to the filing organization’s employee benefit programs (such as insurance, health, and welfare programs that aren’t an incidental part of a pension plan included on line 8), and the cost of other employee benefits.

For example, report expenses for employee events such as a picnic or holiday party on line 9. Don’t include contributions on behalf of current or former officers, directors, trustees, key employees, or other persons that were included on line 5 or 6.

Payroll taxes

Line 10. Payroll taxes.
Enter the amount of federal, state, and local payroll taxes for the year but only those taxes that are imposed on the organization as an employer. This includes the employer’s share of social security and Medicare taxes, the federal unemployment tax (FUTA), state unemployment compensation taxes, and other state and local payroll taxes.

Don’t include on line 10 taxes withheld from employees’ salaries and paid to various governmental units such as federal, state, and local income taxes and the employees’ shares of social security and Medicare taxes. Such withheld amounts are reported as compensation.

Fees for services (nonemployees):

Line 11. Fees for services paid to nonemployees (independent contractors).
Enter on lines 11a through 11g amounts for services provided by independent contractors for management, legal, accounting, lobbying, professional fundraising services, investment management, and other services, respectively. Include amounts whether or not a Form 1099 was issued to the independent contractor. Don’t include on line 11 amounts paid to or earned by employees, officers, directors, trustees, or disqualified persons for these types of services, which must be reported on lines 5 through 7.

If the organization is able to distinguish between fees paid for independent contractor services and expense payments or reimbursements to the contractor(s), report the fees paid for services on line 11 and the expense payments or reimbursements on the applicable lines in Part IX (including line 24 if no other line is applicable). If the organization is unable to distinguish between service fees and expense payments or reimbursements, report all such amounts on line 11.

Management

Line 11a. Management fees.
Enter the total fees charged for management services provided by outside firms and individuals.

Legal

Line 11b. Legal fees.
Enter the total legal fees charged by outside firms and individuals. Don’t include any penalties, fines, settlements, or judgments imposed against the organization as a result of legal proceedings. Report those expenses on line 24. Report any amounts for lobbying services provided by attorneys on line 11d.

Accounting

Line 11c. Accounting fees.
Enter the total accounting and auditing fees charged by outside firms and individuals.

Lobbying

Line 11d. Lobbying fees.
Enter amounts for activities intended to influence foreign, national, state, or local legislation, including direct lobbying and grassroots lobbying.

Professional fundraising services.

See Part IV, line 17

Line 11e. Professional fundraising fees.
Enter amounts paid for professional fundraising services, including solicitation campaigns and advice or other consulting services supporting in-house fundraising campaigns. If the organization is able to distinguish between fees paid for professional fundraising services and amounts paid for fundraising expenses such as printing, paper, envelopes, postage, mailing list rental, and equipment rental, then fees paid for professional fundraising services should be reported on line 11e and amounts paid for fundraising expenses should be reported on line 24 as other expenses. If the organization is unable to distinguish between these amounts, it should report all such fees and amounts online 11e.

Investment management fees

Line 11f. Investment management fees.
Enter amounts for investment counseling and portfolio management. Monthly account service fees are considered portfolio management expenses and must be reported here. Don’t include transaction costs such as brokerage fees and commissions, which are considered sales expenses and are included on Part VIII, line 7b.

Other.

(If line 11g amount exceeds 10% of line 25, column (A), amount, list line 11g expenses on Schedule O.)

Line 11g. Other fees for services.
Enter amounts for other independent contractor services not listed on lines 11a through 11f. For example, amounts paid to an independent contractor for advocacy services that don’t constitute lobbying should be reported here. For health care organizations, payments to health care professionals who are independent contractors are reported on line 11g. Report on line 11g payments to payroll agents, common paymasters, and other third parties for services provided by those third parties to the filing organization. Report on lines 5–10, as appropriate, payments that reimburse third parties for compensation to the organization’s officers, directors, trustees, key employees, or other employees. Report payments to contractors for information technology services on line 14, rather than online 11g.

If the amount on line 11g exceeds 10% of the amount in line 25, column (A), the organization must list the type and amount of each line 11g expense on Schedule O (Form 990).

Advertising and promotion

Line 12. Advertising and promotion expenses.
Enter amounts paid for advertising. Include amounts for print and electronic media advertising. Also include Internet site link costs, signage costs, and advertising costs for the organization’s in-house fundraising campaigns. Include fees paid to independent contractors for advertising, except for fees paid to independent contractors for conducting professional fundraising services or campaigns, which are reported on line 11e.

Office expenses

Line 13. Office expenses.
Enter amounts for supplies (office, classroom, or other supplies); telephone (cell phones and landlines) and facsimile; postage (overnight delivery, parcel delivery, trucking, and other delivery expenses) and mailing expenses; shipping materials; equipment rental; bank fees; and other similar costs. Also include printing costs of a general nature. Printing costs that relate to conferences or conventions must be reported on line 19.

Information technology

Line 14. Information technology.
Enter amounts for information technology, including hardware, software, and support services such as maintenance, help desk, and other technical support services. Also include expenses for infrastructure support, such as website design and operations, virus protection and other information security programs and services to keep the organization’s website operational and secured against unauthorized and unwarranted intrusions, and other information technology contractor services. Report payments to information technology employees on lines 5 through 10. Report depreciation/amortization related to information technology on line 22.

Royalties

Line 15. Royalties.
Enter amounts for royalties, license fees, and similar amounts that allow the organization to use intellectual property such as patents and copyrights.

Occupancy

Line 16. Occupancy.
Enter amounts for the use of office space or other facilities, including rent; heat, light, power, and other utilities expenses; property insurance; real estate taxes; mortgage interest; and similar occupancy-related expenses. Don’t include on line 16 expenses reported as office expenses (such as telephone expenses) on line 13.

Don’t net any rental income received from leasing or subletting rented space against the amount reported on line 16 for occupancy expenses. If the tenant’s activities are related to the organization’s exempt purpose, report rental income as program service revenue on Part VIII, line 2, and allocable occupancy expenses on line 16. However, if the tenant’s activities aren’t program related, report the rental income on Part VIII, line 6a, and related rental expenses on Part VIII, line 6b.

Don’t include employee salaries or depreciation as occupancy expenses. These expenses are reported on lines 5 through 7 and 22, respectively.

Travel

Line 17. Travel.
Enter the total travel expenses, including transportation costs (fares, mileage allowances, and automobile expenses), meals and lodging, and per diem payments. Travel costs include the expenses of purchasing, leasing, operating, and repairing any vehicles owned by the organization and used for the organization’s activities. However, if the organization leases vehicles on behalf of its executives or other employees as part of an executive or employee compensation program, the leasing costs are considered employee compensation and are reported on lines 5 through 7.

Payments of travel or entertainment expenses for any federal, state, or local public officials

Line 18. Payments of travel or entertainment expenses for any federal, state, or local public officials.
Enter total amounts for travel or entertainment expenses (including reimbursement for such costs) for any federal, state, or local public officials (as determined under section 4946(c)) and their family members (as determined under section 4946(d)). Report amounts for a particular public official only if aggregate expenditures for the year relating to such official (including family members of such official) exceed $1,000 for the year.

For expenditures that aren’t specifically identifiable to a particular individual, the organization can use any reasonable allocation method to estimate the cost of the expenditure to an individual. Amounts not described above can be included in the reported total amount for line 18 or can be reported on line 24. The organization is responsible for keeping records of all travel and entertainment expenses related to a government official whether orT not the expenses are reported on line 18 or line 24.

Conferences, conventions, and meetings

Line 19. Conferences, conventions, and meetings.
Enter the total expenses incurred by the organization in conducting meetings related to its activities. Include such expenses as facility rentals, speakers’ fees and expenses, and printed materials. Include the registration fees (but not travel expenses) paid for sending any of the organization’s staff to conferences, conventions, and meetings conducted by other organizations. Travel expenses incurred by officers, directors, and employees attending such conferences, conventions, and meetings must be reported on line 17.

Interest

Line 20. Interest.
Enter the total interest expense for the year. Don’t include any interest attributable to rental property (reported on Part VIII, line 6b) or any mortgage interest (reported as an occupancy expense on line 16).

Payments to affiliates

Line 21. Payments to affiliates.
Enter certain types of payments to organizations affiliated with (closely related to) the filing organization.

Payments to affiliated state or national organizations.
Dues paid by a local organization to its affiliated state or national (parent) organization are reported on line 21. 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 aren’t reported on line 21 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 for providing goods or services to affiliates can be reported on line 21 if:

• The goods or services provided aren’t related to the program services conducted by the organization furnishing them (for example, when a local organization incurs expenses in the production of a solicitation film for the state or national organization); and


• The costs involved aren’t connected with the management and general or fundraising functions of the filing 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 can be reported on line 21, but not the expenses of preparing and maintaining the local organization’s master list.
  

Voluntary awards or grants to affiliates.
Don’t report on line 21 voluntary awards or grants made by the organization to its state or national organizations for specified purposes.

Membership dues paid to other organizations.
Report membership dues paid to obtain general membership benefits from other organizations, such as regular services, publications, and other materials, on line 24. This is the case if a charitable organization pays dues to a trade association comprised of otherwise unrelated members.

Depreciation, depletion, and amortization

Line 22. Depreciation, depletion, and amortization.
If the organization records depreciation, depletion, amortization, or similar expenses, enter the total on line 22. Include any depreciation or amortization of leasehold improvements and intangible assets. An organization isn’t required to use the Modified Accelerated Cost Recovery System (MACRS) to compute depreciation reported on Form 990. For an explanation of acceptable methods for computing depreciation, see Pub. 946, How To Depreciate Property. If an amount is reported on this line, the organization is required to maintain books and records to substantiate any amount reported.

Insurance

Line 23. Insurance.
Enter total insurance expenses other than insurance attributable to rental property (reported on Part VIII, line 6b). Don’t report on this line payments made by organizations exempt under section 501(c)(8), (9), or (17) to obtain insurance benefits for members. Report those expenses on line 4. Don’t report on this line the cost of employment-related benefits such as health insurance, life insurance, or disability insurance provided by the organization to or for its officers, directors, trustees, key employees, and other employees. Report the costs for officers, directors, trustees, and key employees on Part IX, line 5; report the costs for other disqualified persons on Part IX, line 6; and report the costs for other employees on Part IX, line 9. Report the costs for members on Part IX, line 4, not on Part IX, line 23. Don’t report on this line property or occupancy-related insurance. Report those expenses on line 16.

Other expenses. Itemize expenses not covered above.

(List miscellaneous expenses on line 24e. If line 24e amount exceeds 10% of line 25, column (A), amount, list line 24e expenses on Schedule O.)

Line 24. Other expenses.
Enter the types and amounts of expenses which weren’t reported on lines 1 through 23. Include expenses for medical supplies incurred by health care/medical organizations. Include payments by the organization to professional fundraisers of fundraising expenses such as printing, paper, envelopes, postage, mailing list rental, and equipment rental, if the organization is able to distinguish these expense amounts from fees for professional fundraising services reportable on line 11e. Enter the four largest dollar amounts on lines 24a through 24d and the total of all remaining miscellaneous expenses on line 24e. Don’t include a separate entry for “miscellaneous expenses,” “program expenses,” “other expenses,” or a similar general category on lines 24a–d. If the amount on line 24e exceeds 10% of the amount on line 25, column (A), the organization must list the type and amount of each line 24e expense on Schedule O (Form 990).

The organization must separately report the amount, if any, of unrelated business income taxes that it paid or accrued during the tax year on line 24.

Total functional expenses. Add lines 1 through 24e

Line 25. Total functional expenses.
Section 501(c)(3) and 501(c)(4) organizations. Add lines 1 through 24e and enter the totals on line 25 in columns (A), (B), (C), and (D).

All other organizations. Add lines 1 through 24e and enter the total on line 25 in column (A).

Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation.

Check here ☐ if following SOP 98-2 (ASC 958-720)

Line 26. Joint costs.
Organizations that included in program service expenses (column (B) of Part IX) any joint costs from a combined educational campaign and fundraising solicitation must disclose how the total joint costs of all such combined activities were allocated in Part IX between education and fundraising. For instance, if the organization spent $100,000 on joint costs and allocated 10% to education, it would report $100,000 in line 26, column (A); $10,000 in column (B); and $90,000 in column (D). Any costs reported here aren’t to be deducted from the other lines in Part IX on which they are reported. Don’t check the box unless the organization followed Statement of Position 98-2 (SOP 98-2), Accounting for Costs of Activities of Not-for-Profit Organizations and State and Local Governmental Entities That Include Fundraising (FASB ASC 958-720), in allocating such costs.

An organization conducts a combined educational campaign and fundraising solicitation when it solicits contributions (by mail, telephone, broadcast media, or any other means) and includes, with the solicitation, educational material or other information that furthers a bona fide non-fundraising exempt purpose of the organization.

Expenses attributable to providing information regarding the organization itself, its use of past contributions, or its planned use of contributions received are fundraising expenses and must be reported in column (D). Don’t report such expenses as program service expenses in column (B).

Any method of allocating joint costs between columns (B) and (D) must be reasonable under the facts and circumstances of each case. Most states with reporting requirements for charitable organizations and other organizations that solicit contributions either require or allow reporting of joint costs under AICPA SOP 98-2, now codified in FASB ASC 958-720.