2023

Instructions for Form 990-PF

Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust 

Treated as a Private Foundation

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless 

otherwise noted.

Contents Page

General Instructions ......................... 2

A. Who Must File ........................ 2

B. Which Parts To Complete ................ 2

C. Definitions ........................... 4

D. Other Forms You May Need To File ......... 4

E. Useful Publications ..................... 6

F. Use of Form 990-PF To Satisfy State 

Reporting Requirements ................. 7

G. Furnishing Copies of Form 990-PF to State 

Officials ............................. 7

H. Accounting Period ..................... 7

I. Accounting Methods .................... 8

J. When and How To File ................... 8

K. Extension of Time To File ................ 8

L. Amended Return ....................... 8

M. Penalty for Failure To File Timely, 

Completely, or Correctly ................. 8

N. Penalties for Not Paying Tax on Time ........ 9

O. Figuring and Paying Estimated Tax ......... 9

P. Tax Payment Methods for Domestic Private 

Foundations .......................... 9

Q. Public Inspection Requirements .......... 10

R. Disclosures Regarding Certain Information 

and Services Furnished ................. 12

S. Organizations Organized or Created in a 

Foreign Country ...................... 12

T. Liquidation, Dissolution, Termination, or 

Substantial Contraction ................. 12

U. Section 507(b)(1)(B) Termination—Notice 

and Filing Requirements ................ 13

V. Payment of Section 4940 Tax During 

Section 507(b)(1)(B) Termination .......... 13

W. Rounding, Currency, and Attachments ...... 14

Specific Instructions ........................ 14

Heading .............................. 14

Part I. Analysis of Revenue and Expenses ..... 15

Part II. Balance Sheets ................... 20

Part III. Analysis of Changes in Net Assets or 

Fund Balances ....................... 22

Part IV. Capital Gains and Losses for Tax on 

Investment Income .................... 22

Part V. Excise Tax Based on Investment 

Income (Section 4940(a), 4940(b), or 

4948) .............................. 23

Part VI-A. Statements Regarding Activities ..... 24

Contents Page

Part VI-B. Statements Regarding Activities for 

Which Form 4720 May Be Required ........ 28

Part VII. Information About Officers, Directors, 

Trustees, Foundation Managers, Highly 

Paid Employees, and Contractors ......... 29

Part VIII-A. Summary of Direct Charitable 

Activities ........................... 30

Part VIII-B. Summary of Program-Related 

Investments ......................... 31

Part IX. Minimum Investment Return .......... 31

Part X. Distributable Amount ............... 33

Part XI. Qualifying Distributions ............. 33

Part XII. Undistributed Income .............. 33

Part XIII. Private Operating Foundations ....... 35

Part XIV. Supplementary Information ......... 36

Part XV-A. Analysis of Income-Producing 

Activities ........................... 36

Part XV-B. Relationship of Activities to the 

Accomplishment of Exempt Purposes ...... 37

Part XVI. Information Regarding Transfers to 

and Transactions and Relationships With 

Noncharitable Exempt Organizations ....... 37

Signature ............................. 38

Paid Preparer .......................... 38

Paid Preparer Authorization ................... 39

How To Get Forms and Publications ............. 39

Index ................................... 42

Future Developments

For the latest information about developments related to Form 

990-PF and its instructions, such as legislation enacted after 

they were published, go to IRS.gov/Form990PF.

Reminders

Announcement (Ann.) 2021-18, 2021-52 I.R.B. 910. Ann. 

2021-18, 2021-52 I.R.B. 910, revoked Ann. 2001-33, 2001-17 

I.R.B. 1137, which provided tax-exempt organizations with 

reasonable cause for purposes of relief from the penalty 

imposed under section 6652(c)(1)(A)(ii) of the Internal Revenue 

Code if they reported compensation on their annual information 

returns in the manner described in Ann. 2001-33 instead of in 

accordance with certain form instructions. Ann. 2021-18 revoked 

Ann. 2001-33 and instructs affected tax-exempt organizations to 

follow the specific instructions to the Form 990, Form 990-EZ, 

and Form 990-PF, effective for annual information returns 

required for taxable years beginning on or after January 1, 2022.

Reduced tax on net investment income repealed. The 

Taxpayer Certainty and Disaster Tax Relief Act reduced the 2% 

section 4940(a) excise tax on net investment income of private 

foundations to 1.39%. The legislation also repealed section 

4940(e), Reduced Tax on Net Investment Income.

Dec 14, 2023 Cat. No. 11290Y
Required electronic filing by exempt organizations. For tax 

years beginning on or after July 2, 2019, the Taxpayer First Act, 

section 3101 of P. L. 116-25, requires that returns by exempt 

organizations be filed electronically. Accordingly, you must file 

the return electronically for tax years beginning in 2021. See 

Electronic Filing, later, for more information.

Reporting standard for net assets updated. Part II of Form 

990-PF was updated to reflect the Financial Accounting 

Standard Board’s (FASB’s) reclassification of net assets into two 

classes, net assets without donor restrictions and net assets with 

donor restrictions. For more information, see Part II. Balance 

Sheets, Lines 24 Through 30. Net Assets or Fund Balances, 

later.

Pub. 15-T. Pub. 15-T, Federal Income Tax Withholding Methods, 

contains the federal income tax withholding tables that were 

previously provided in Pubs. 15 and 15-A and explains how to 

use the tables.

Exception from the excise tax on excess business holdings. Section 4943(g) provides an exception from the excise tax 

on excess business holdings for certain independently operated 

enterprises whose voting stock is wholly owned by a private 

foundation. For more details, see Part VI-B, Line 3a, later.

Tax on excess executive compensation. Section 4960 

imposes an excise tax on a foundation that pays to any covered 

employee more than $1 million in remuneration or pays an 

excess parachute payment. See section 4960 and Form 4720, 

Return of Certain Excise Taxes Under Chapters 41 and 42 of the 

Internal Revenue Code, for more information.

Initial Form 990-PF by former public charity. If you are filing 

Form 990-PF because you no longer meet a public support test 

under section 509(a)(1) and you haven't previously filed Form 

990-PF, check Initial return of a former public charity in Item G of 

the Heading section on page 1 of your return. Before filing Form 

990-PF for the first time, you may want to go to IRS.gov/EO for 

the latest information and filing tips to confirm you are no longer 

a publicly supported organization.

Automatic revocation. Most tax-exempt organizations are 

required to file an annual Form 990, 990-EZ, or 990-PF with the 

IRS, or to submit a Form 990-N e-Postcard to the IRS. For 

information on the exception requirement, visit IRS.gov/Annual 

Exempt Organizations: Who Must File. If a tax-exempt private 

foundation fails to file an annual return as required for 3 

consecutive years, it will automatically lose its tax-exempt status 

and will become a taxable private foundation. See M. Penalty for 

Failure To File Timely, Completely, or Correctly, later.

Don’t include social security numbers on publicly disclosed forms. Because the IRS is required to publicly disclose 

the organization's annual information returns, social security 

numbers shouldn't be included on this form. Documents subject 

to disclosure include schedules and attachments filed with the 

form.

Photographs of Missing Children

The IRS is a proud partner with the National Center for Missing & 

Exploited Children® (NCMEC). Photographs of missing children 

selected by the Center may appear in instructions on pages that 

would otherwise be blank. You can help bring these children 

home by looking at the photographs and calling 

1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Phone Help

If you have questions and/or need help completing this form, 

please call 877-829-5500. This toll-free telephone service is 

available Monday through Friday.

IRS e-Services Makes Taxes Easier

Now more than ever before, businesses can enjoy the benefits of 

filing and paying their federal taxes electronically. Whether you 

rely on a tax professional or handle your own taxes, the IRS 

offers you convenient programs to make taxes easier.

• You can e-file your Form 990-PF, Form 940 and 941 

employment tax returns, and Forms 1099 and other information 

returns. Visit IRS.gov/Charities-Non-Profits/Annual-Reportingand-Filing for details.

• You can pay taxes online or by phone using the free Electronic 

Federal Tax Payment System (EFTPS). To get more information 

about EFTPS or to enroll in EFTPS, visit EFTPS.gov or call 

800-555-4477. To contact EFTPS using the Telecommunications 

Relay Services (TRS), for people who are deaf, hard of hearing, 

or have a speech disability, dial 711 and provide the TRS 

assistant the 800-555-4477 number above or 800-733-4829.

• Electronic Funds Withdrawal (EFW) from a checking or 

savings account is also available to those who file electronically.

General Instructions

Purpose of form. Form 990-PF is used:

• To figure the tax based on investment income, and

• To report charitable distributions and activities.

Also, Form 990-PF serves as a substitute for the section 

4947(a)(1) nonexempt charitable trust's income tax return, Form 

1041, U.S. Income Tax Return for Estates and Trusts, when the 

trust has no taxable income.

A. Who Must File

Form 990-PF is an annual information return that must be filed by 

the following.

• Exempt private foundations (section 6033(a), (b), and (c)).

• Taxable private foundations (section 6033(d)).

• Organizations that agree to private foundation status and 

whose applications for exempt status are pending on the due 

date for filing Form 990-PF.

• Organizations that claim private foundation status, haven't yet 

applied for exempt status, and whose application isn't yet 

untimely under section 508(a) for retroactive recognition of 

exemption.

• Organizations that made an election under section 41(e)(6)

(D)(iv).

• Private foundations that are making a section 507(b) 

termination.

• Section 4947(a)(1) nonexempt charitable trusts treated as 

private foundations (section 6033(d)).

Include on the foundation's return the financial and other 

information of any disregarded entity owned by the 

foundation. See Regulations sections 301.7701-1 

through 3 for information on the classification of certain business 

organizations, including an eligible entity that is disregarded as 

an entity separate from its owner (disregarded entity).

Other section 4947(a)(1) nonexempt charitable trusts. 

Section 4947(a)(1) nonexempt charitable trusts not treated as 

private foundations don't file Form 990-PF. However, they may 

need to file Form 990, Return of Organization Exempt From 

Income Tax, or Form 990-EZ, Short Form Return of Organization 

Exempt From Income Tax. With either of these forms, the trust 

must also file Schedule A (Form 990 or 990-EZ), Public Charity 

Status and Public Support, and other required schedules. See 

the Form 990 and Form 990-EZ instructions.

B. Which Parts To Complete

See the chart showing which parts of the form must be 

completed, later.

TIP

2 Instructions for Form 990-PF (2023)
B. Which Parts To Complete

Some parts of the form listed below don't apply to some filers. See How to avoid filing an incomplete return, earlier, for 

information on what to do if a part or an item doesn't apply.

Part of Form 990-PF Foundations Which Must Complete This Part

Heading All

Part I (analysis of revenues and expenses), columns (a) (revenue and expenses 

per books) and (d) (disbursements for charitable purposes)

All

Part I (analysis of revenues and expenses), column (b) (net investment income) All except (1) foreign taxable foundations, and (2) foreign nonexempt charitable 

trusts; foreign 501(c)(3) foundations need not complete line 7 (capital gain net 

income) or expense lines

Part I (analysis of revenues and expenses), column (c) (adjusted net income) Only foundations claiming operating foundation status, foundations (not 

described in section 4948(b)) that derive income from a charitable activity and 

claim a qualifying distribution for net losses from the activity, and domestic 501(c)

(3) foundations that maintain a common fund as described in section 170(b)(1)(F)

(iii)

Part II (balance sheets), columns (a) and (b) (beginning and end-of-year book 

value)

All

Part II (balance sheets), column (c) (end-of-year fair market value) All foundations with at least $5,000 in assets per books at some time during tax 

year; other foundations complete only line 16

Part III (analysis of changes in net assets or fund balances) All

Part IV (capital gains and losses for tax on investment income) All except foreign foundations; line 3 must be completed only by foundations that 

must complete Part I, column (c)

Part V (excise tax based on investment income) All except (1) organizations electing private foundation status under section 41(e)

(6)(D), (2) foreign taxable foundations, and (3) foreign nonexempt charitable trusts

Part VI-A (statements regarding activities) All; foreign foundations described in section 4948(b) need not complete lines 6 

and 8, and in line 10, foreign foundations don't list persons who aren't U.S. 

citizens

Part VI-B (statements regarding activities for which Form 4720 may be required) All; foreign foundations described in section 4948(b) need not complete line 2 

Part VII (information about officers, directors, trustees, foundation managers, 

highly paid employees, and contractors)

All

Part VIII-A (summary of direct charitable activities) All

Part VIII-B (summary of program-related investments) All

Part IX (minimum investment return) All except foreign foundations described in section 4948(b) that aren't claiming 

operating foundation status

Part X (distributable amount) All except (1) foreign foundations described in section 4948(b), and (2) 

foundations claiming operating foundation status

Part XI (qualifying distributions) All except foreign foundations described in section 4948(b) that aren't claiming 

operating foundation status

Part XII (undistributed income) All except foreign foundations described in section 4948(b); if the foundation 

claims operating foundation status for any of the years shown in Part XII, it 

doesn't complete those portions of Part XII that apply to those years

Part XIII (private operating foundations) Only foundations claiming operating foundation status

Part XIV (supplementary information) All except (1) foundations with less than $5,000 of assets per books at all times 

during tax year, and (2) foreign foundations described in section 4948(b)

Part XV-A (analysis of income-producing activities) All

Part XV-B (relationship of activities to the accomplishment of exempt purposes) All

Part XVI (information regarding transfers to and transactions and relationships 

with noncharitable exempt organizations)

All

Signature block All

Instructions for Form 990-PF (2023) 3
How to avoid filing an incomplete return. 

• Complete all applicable line items.

• Answer “Yes,” “No,” or “N/A” (not applicable) to each question 

on the return.

• Make an entry (including a zero when appropriate) on all total 

lines.

• Enter “None” or “N/A” if an entire part doesn't apply.

Sequencing Chart To Complete the Form

You may find the following chart helpful. It limits jumping from 

one part of the form to another to figure an amount needed to 

complete an earlier part. If you complete the parts in the listed 

order below, any information you may need from another part will 

already be entered.

Step Part Step Part

1 .......... IV 8......... XI, lines 1–4

2 .......... I & II 9......... V

3 .......... Heading 10 ........ XI, lines 5–6

4 .......... III 11 ........ X

5 .......... VI-A 12 ........ XII

6 .......... VII 13 ........ VI-B

7 .......... VIII-A – X 14 ........ XIII – XVI

C. Definitions

1. A private foundation is a domestic or foreign organization 

exempt from income tax under section 501(a), described in 

section 501(c)(3), and is other than an organization described in 

sections 509(a)(1) through (4).

Churches, hospitals, schools, broadly publicly supported 

organizations, supporting organizations, and organizations that 

test for public safety are excluded from private foundation status 

by sections 509(a)(1) through (4). These organizations may be 

required to file Form 990, Form 990-EZ, or Form 990-N 

(“e-Postcard”) instead of Form 990-PF.

2. A nonexempt charitable trust treated as a private 

foundation is a trust that isn't exempt from tax under section 

501(a) and all of the unexpired interests of which are devoted to 

religious, charitable, or other purposes described in section 

170(c)(2)(B), and for which a charitable deduction was allowed 

under a section of the Code listed in section 4947(a)(1).

3. A taxable private foundation is an organization that 

previously was recognized as being exempt under section 

501(a) as an organization described in section 501(c)(3), but has 

lost that recognition. Though it may operate as a taxable entity, it 

will continue to be treated as a private foundation until that status 

is terminated under section 507.

4. A private operating foundation is an organization that is 

described under section 4942(j)(3) or (5). It means any private 

foundation that spends at least 85% of the smaller of its adjusted 

net income (figured in Part I) or its minimum investment return 

(figured in Part IX) directly for the active conduct of the exempt 

purpose or functions for which it is organized and operated and 

that also meets the assets test, the endowment test, or the 

support test (discussed in Part XIII). Also, certain elderly care 

facilities created before 1970 are treated as private operating 

foundations.

5. A nonoperating private foundation is a private foundation 

that isn't a private operating foundation. These often are referred 

to as “grant-making foundations.”

6. A foundation manager is an officer, director, or trustee of a 

foundation, or an individual who has powers similar to those of 

officers, directors, or trustees. In the case of any act or failure to 

act, the term “foundation manager” may also include employees 

of the foundation who have the authority to act.

7. A disqualified person is any of the following.

a. A substantial contributor (see the instructions for Part 

VI-A, line 10, later).

b. A foundation manager.

c. A person who owns more than 20% of a corporation, 

partnership, trust, or unincorporated enterprise that is itself a 

substantial contributor.

d. A family member of an individual described in (a), (b), or 

(c) above.

e. A corporation, partnership, trust, or estate in which 

persons described in (a), (b), (c), or (d) above own a total 

beneficial interest of more than 35%.

f. For purposes of section 4941 (self-dealing), a disqualified 

person also includes certain government officials. (See section 

4946(c) and the related regulations.)

g. For purposes of section 4943 (excess business holdings), 

a disqualified person also includes:

i. A private foundation effectively controlled (directly or 

indirectly) by the same persons who control the private 

foundation in question; or

ii. A private foundation to which substantially all 

contributions were made (directly or indirectly) by one or more of 

the persons described in (a), (b), and (c) above, or members of 

their families, within the meaning of section 4946(d).

8. An organization is controlled by a foundation or by one or 

more disqualified persons with respect to the foundation if any of 

these persons may, by combining their votes or positions of 

authority, require the organization to make an expenditure or 

prevent the organization from making an expenditure, regardless 

of the method of control. “Control” is determined regardless of 

how the foundation requires the contribution to be used.

D. Other Forms You May Need To File

• Form W-2, Wage and Tax Statement.

• Form W-3, Transmittal of Wage and Tax Statements.

• Form 940, Employer's Annual Federal Unemployment (FUTA) 

Tax Return (section 4947(a)(1) trusts and taxable private 

foundations may need to file).

• Form 941, Employer's QUARTERLY Federal Tax Return.

These forms are used to report social security, Medicare, and 

income taxes withheld by an employer and social security and 

Medicare taxes paid by an employer.

If income, social security, and Medicare taxes that must be 

withheld aren't withheld or aren't paid to the IRS, a trust fund 

recovery penalty may apply. The penalty is 100% of such unpaid 

taxes.

This penalty may be imposed on all persons (including 

volunteers (see below)) whom the IRS determines to be 

responsible for collecting, accounting for, and paying over these 

taxes, and who willfully didn't do so.

This penalty doesn't apply to any volunteer, unpaid member 

of any board of trustees or directors of a tax-exempt organization 

if this member:

• Is solely serving in an honorary capacity;

• Doesn’t participate in the day-to-day or financial activities of 

the organization; and

• Doesn’t have actual knowledge of the failure to collect, 

account for, and pay over these taxes.

However, this exception doesn't apply if it results in no person 

being liable for the penalty.

Form 720, Quarterly Federal Excise Tax Return. In addition 

to various federal excise taxes that are paid with the filing of this 

form, the Patient-Centered Outcomes Research Institute fee that 

is imposed on health insurers and employers who maintain 

self-insured health plans is payable annually and reported on the 

4 Instructions for Form 990-PF (2023)
Form 720 that is filed for the second quarter of each year, which 

is due no later than July 31 of each calendar year.

Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation. U.S. persons (including domestic 

corporations and trusts) must file Form 926 to report certain 

transfers of tangible or intangible property to a foreign 

corporation, as required by section 6038B.

Form 990-T, Exempt Organization Business Income Tax Return. Every organization exempt from income tax under section 

501(a) with total gross income of $1,000 or more from all trades 

or businesses unrelated to the organization's exempt purpose 

must file Form 990-T. The form is also used by tax-exempt 

organizations to report other additional taxes, including the 

additional tax figured in Part IV of Form 8621, Return by a 

Shareholder of a Passive Foreign Investment Company or 

Qualified Electing Fund.

Form 990-W, Estimated Tax on Unrelated Business Taxable 

Income for Tax-Exempt Organizations. Use of this form is 

optional. It is provided only to aid you in determining your tax 

liability. You must use electronic funds transfer to make all 

depository tax deposits. See P. Tax Payment Methods for 

Domestic Private Foundations, later, for information about 

electronic deposits.

Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. This 

form for recognition of exemption from federal income tax under 

section 501(c)(3) must be used by private foundations that don't 

qualify to use Form 1023-EZ or that are also requesting advance 

approval of individual grant procedures or recognition as an 

operating foundation. Form 8940 may also be used for 

requesting advance approval of individual grant procedures or 

recognition as an operating foundation.

Form 1023-EZ, Streamlined Application for Recognition of 

Exemption Under Section 501(c)(3) of the Internal Revenue 

Code. Certain small private foundations may apply for 

recognition of exemption under section 501(c)(3) using this form 

instead of Form 1023.

Form 1041, U.S. Income Tax Return for Estates and Trusts. 

Required of section 4947(a)(1) nonexempt charitable trusts that 

also file Form 990-PF. However, if the trust doesn't have any 

taxable income under the income tax provisions (subtitle A of the 

Code), it may use the filing of Form 990-PF to satisfy its Form 

1041 filing requirement under section 6012. If this condition is 

met, check the box on line 15, Part VI-A, of Form 990-PF and 

don't file Form 1041.

Form 1041-ES, Estimated Income Tax for Estates and 

Trusts. Used to make estimated tax payments.

Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Used to transmit Forms 1097, 1098, 1099, 

3921, 3922, 5498, and W-2G to the IRS. Don’t use it to transmit 

electronically.

Form 1098 series. Information returns to report mortgage 

interest, student loan interest, qualified tuition and related 

expenses, and a contribution of a qualified vehicle that has a 

claimed value of more than $500.

Form 1099 series. Information returns to report acquisitions or 

abandonments of secured property; proceeds from broker and 

barter exchange transactions; cancellation of debt; dividends 

and distributions; certain government and state qualified tuition 

program payments; taxable distributions from cooperatives; 

interest payments; payments of long-term care and accelerated 

death benefits; miscellaneous income payments; nonemployee 

compensation; distributions from an HSA, Archer MSA or 

Medicare Advantage MSA; original issue discount; distributions 

from pensions, annuities, retirement or profit-sharing plans, 

IRAs, insurance contracts, etc.; and proceeds from real estate 

transactions. Also, use certain of these returns to report amounts 

that were received as a nominee on behalf of another person.

Form 1120, U.S. Corporation Income Tax Return. Filed by 

nonexempt taxable private foundations that have taxable income 

under the income tax provisions (subtitle A of the Code). Form 

990-PF is also filed by these taxable foundations.

Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. Section 501(c) organizations must file Form 

1120-POL if they are treated as having political organization 

taxable income under section 527(f)(1).

Form 1128, Application To Adopt, Change, or Retain a Tax 

Year. Form 1128 is used to request approval from the IRS to 

change a tax year or to adopt or retain a certain tax year.

Form 2220, Underpayment of Estimated Tax by Corporations. Form 2220 is used by corporations and trusts filing Form 

990-PF to see if the foundation owes a penalty and to figure the 

amount of the penalty. Generally, the foundation isn't required to 

file this form because the IRS can figure the amount of any 

penalty and bill the foundation for it. However, complete and 

attach Form 2220 even if the foundation doesn't owe the penalty 

if:

• The annualized income or the adjusted seasonal installment 

method is used; or

• The foundation is a “large organization,” (see O. Figuring and 

Paying Estimated Tax, later) figuring its first required installment 

based on the prior year's tax.

If Form 2220 is attached, check the box on Form 990-PF, Part V, 

line 8, and enter the amount of any penalty on this line.

Form 2848, Power of Attorney and Declaration of Representative. Used to authorize an individual to represent you in 

matters before the IRS, such as the filing of Form 1023.

Form 3115, Application for Change in Accounting Method. 

Used to request a change in either an overall method of 

accounting or the accounting treatment of any item, in situations 

not covered by Rev. Proc. 85-58, 1985-18 I.R.B. 5.

Form 3520, Annual Return To Report Transactions With 

Foreign Trusts and Receipt of Certain Foreign Gifts. Used 

by U.S. persons to report certain transactions with foreign trusts, 

ownership of foreign trusts under the grantor trust rules of 

sections 671–679, and receipt of certain large gifts or bequests 

from certain foreign persons.

Form 4506, Request for Copy of Tax Return. Used by the 

organization or designated third party to get a complete copy of 

the organization's return.

Form 4506-A, Request for Public Inspection or Copy of Exempt or Political Organization IRS Form. Used to inspect or 

request a copy of an exempt or political organization's return, 

report, notice, or exemption application by the public or the 

organization.

Form 4720, Return of Certain Excise Taxes Under Chapters 

41 and 42 of the Internal Revenue Code. Is primarily used to 

determine the excise taxes imposed on:

• Acts of self-dealing between private foundations and 

disqualified persons,

• Failure to distribute income,

• Excess business holdings,

• Investments that jeopardize a foundation's charitable 

purposes,

• Making political or other noncharitable expenditures,

• Prohibited tax shelter transactions, and

• Excess executive compensation.

Form 5471, Information Return of U.S. Persons for Certain 

Foreign Corporations. Used by certain U.S. persons that are 

Instructions for Form 990-PF (2023) 5
shareholders in certain foreign corporations, in compliance with 

sections 6038 and 6046.

Form 5500, Annual Return/Report of Employee Benefit 

Plan. Used to report information concerning employee benefit 

plans and Direct Filing Entities.

Form 7004, Application for Automatic Extension of Time To 

File Certain Business Income Tax, Information, and Other 

Returns. Used by nonexempt charitable trusts and taxable 

foundations to request extension of time to file income tax 

returns.

Form 8282, Donee Information Return. Required of the 

donee of “charitable deduction property” that sells, exchanges, 

or otherwise disposes of the property within 3 years after the 

date it received the property. Also required of any successor 

donee that disposes of charitable deduction property within 3 

years after the date the donor gave the property to the original 

donee. It doesn't matter who gave the property to the successor 

donee. It may have been the original donee or another 

successor donee.

Form 8283, Noncash Charitable Contributions. Donors must 

file Form 8283 to report information about certain noncash 

charitable contributions in order to substantiate a charitable 

deduction under section 170. The donor may need to obtain an 

acknowledgement by the donee foundation in Part IV of Form 

8283.

Form 8275, Disclosure Statement. Taxpayers and tax return 

preparers should attach this form to Form 990-PF to disclose 

items or positions (except those contrary to a regulation—see 

Form 8275-R below) that aren't otherwise adequately disclosed 

on the tax return. The disclosure is made to avoid parts of the 

accuracy-related penalty imposed for substantial 

understatement of tax or disregard of rules or regulations 

language in 1.6662-3(b)(2) and 1.6662-3(c)(2). See also IRM 

20.1.5.8.2.1. Form 8275 is also used for disclosures relating to 

preparer penalties for understatements due to unrealistic 

positions or for willful or reckless conduct.

Form 8275-R, Regulation Disclosure Statement. Use this 

form to disclose any item on a tax return for which a position has 

been taken that is contrary to Treasury regulations.

Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Used to report cash amounts 

in excess of $10,000 received in a single transaction (or in two or 

more related transactions) in the course of a trade or business 

(as defined in section 162).

Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing 

Fund. A U.S. person that is a direct or indirect shareholder of a 

passive foreign investment company (PFIC) may need to file. But 

see Regulations section 1.1291–1(e) with respect to tax-exempt 

foundations.

Form 8821, Tax Information Authorization. Used to authorize 

an individual or organization to inspect and/or receive your 

confidential tax information on designated matters.

Form 8822-B, Change of Address or Responsible Party—Business. Used by taxpayers to notify the IRS of changes 

in business mailing address, business location, or responsible 

party.

Form 8865, Return of U.S. Persons With Respect to Certain 

Foreign Partnerships. Used by U.S. persons to report 

information required under section 6038 (controlled foreign 

partnerships), section 6038B (transfers to foreign partnerships), 

or section 6046A (acquisitions, dispositions, and changes in 

foreign partnership interests).

Form 8868, Application for Extension of Time To File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans. Used by an exempt organization to 

request an automatic 6-month extension of time to file its return 

or, by a Form 5330 filer to request an extension of up to 6 months 

to file a return for excise taxes related to employee benefit plans.

Form 8870, Information Return for Transfers Associated 

With Certain Personal Benefit Contracts. Used to identify 

those personal benefit contracts for which funds were transferred 

to the organization, directly or indirectly, as well as the 

transferors and beneficiaries of those contracts.

Form 8886, Reportable Transaction Disclosure Statement. 

Used to disclose information for each reportable transaction in 

which the organization participated, including but not limited to a 

prohibited tax shelter transaction. Exempt organizations may 

also be required to file Form 8886-T in such case.

Form 8886-T, Disclosure by Tax-Exempt Entity Regarding 

Prohibited Tax Shelter Transaction. Used by an exempt 

organization to disclose that it was a party to a prohibited tax 

shelter transaction.

Form 8899, Notice of Income From Donated Intellectual 

Property. Used to report income from qualified intellectual 

property.

Form 8940, Request for Miscellaneous Determination. 

Used by private foundations, government entities requesting 

voluntary termination of exempt status under section 501(c)(3), 

and nonexempt charitable trusts to obtain certain determinations 

including advance approval of individual grant procedures 

(section 4945(g)), advance approval of certain set-asides 

(section 4942(g)(2)), advance approval of voter registration 

activities (section 4945(f)), and termination of private foundation 

status (section 507(b)(1)(B)). Nonexempt charitable trusts also 

file this form to request an initial determination under section 

509(a)(3). Canadian registered charities file this form to be listed 

as an organization described in section 501(c)(3) on IRS.gov or 

request classification as a public charity rather than a private 

foundation.

FinCEN Form 114, Report of Foreign Bank and Financial 

Accounts. Used by organizations formed or organized in or 

under the laws of the United States to report a financial interest 

in or signature authority over a foreign financial account if the 

aggregate value exceeds $10,000 at any time during the 

calendar year.

E. Useful Publications

The following publications may be helpful in preparing Form 

990-PF or for other tax compliance purposes.

• Pub. 15 (Circular E), Employer’s Tax Guide.

• Pub. 15-A, Employer’s Supplemental Tax Guide (Fringe 

Benefits).

• Pub. 15-T, Federal Income Tax Withholding Methods.

• Pub. 525, Taxable and Nontaxable Income.

• Pub. 526, Charitable Contributions.

• Pub. 538, Accounting Periods and Methods.

• Pub. 557, Tax-Exempt Status for Your Organization.

• Pub. 561, Determining the Value of Donated Property.

• Pub. 583, Starting a Business and Keeping Records.

• Pub. 598, Tax on Unrelated Business Income of Exempt 

Organizations.

• Pub. 892, How To Appeal an IRS Determination on 

Tax-Exempt Status.

• Pub. 946, How To Depreciate Property.

• Pub. 966, Electronic Federal Tax Payment System: A Guide to 

Getting Started.

• Pub. 1771, Charitable Contributions—Substantiation and 

Disclosure Requirements.

6 Instructions for Form 990-PF (2023)
• Pub. 3079, Tax-Exempt Organizations and Gaming.

• Pub. 3833, Disaster Relief, Providing Assistance Through 

Charitable Organizations.

• Pub. 4220, Applying for 501(c)(3) Tax-Exempt Status.

• Pub. 4221-PF, Compliance Guide for 501(c)(3) Private 

Foundations.

• Pub. 4302, A Charity’s Guide to Vehicle Donations.

• Pub. 4303, A Donor’s Guide to Vehicle Donations.

• Pub. 4386, Compliance Checks—Examination, Audit, or 

Compliance Check?

• Pub. 4630, Exempt Organizations Products and Services 

Catalog.

Publications and forms are available at no charge on the IRS 

website at IRS.gov/FormsPubs.

F. Use of Form 990-PF To Satisfy State 

Reporting Requirements

Some states and local government units will accept a copy of 

Form 990-PF and required attachments instead of all or part of 

their own financial report forms.

If the organization plans to use Form 990-PF to satisfy state 

or local filing requirements, such as those from state charitable 

solicitation acts, note the following.

Determine state filing requirements. Consult the appropriate 

officials of all states and other jurisdictions in which the 

organization does business to determine their specific filing 

requirements. “Doing business” in a jurisdiction may include any 

of the following.

• Soliciting contributions or grants by mail or otherwise from 

individuals, businesses, or other charitable organizations.

• Conducting programs.

• Having employees within that jurisdiction.

• Maintaining a checking account or owning or renting property 

there.

Monetary tests may differ. Some or all of the dollar limitations 

that apply to Form 990-PF when filed with the IRS may not apply 

when using Form 990-PF instead of state or local report forms. 

IRS dollar limitations that may not meet some state requirements 

are the $5,000 total assets minimum that requires completion of 

Part II, column (c), and Part XIV; and the $50,000 minimum for 

listing the highest paid employees and for listing professional 

fees in Part VII.

Additional information may be required. State and local filing 

requirements may require attaching to Form 990-PF one or more 

of the following.

• Additional financial statements, such as a complete analysis 

of functional expenses or a statement of changes in net assets.

• Notes to financial statements.

• Additional financial schedules.

• A report on the financial statements by an independent 

accountant.

• Answers to additional questions and other information.

Each jurisdiction may require the additional material to be 

presented on forms they provide. The additional material doesn't 

have to be submitted with the Form 990-PF filed with the IRS.

If required information isn't provided to a state, the 

organization may be asked by the state to provide it or to submit 

an amended return even if the Form 990-PF is accepted by the 

IRS as complete.

Amended returns. If the organization submits supplemental 

information or files an amended Form 990-PF with the IRS, it 

must also submit a copy of the information or amended return to 

any state with which it filed a copy of Form 990-PF.

Method of accounting. Many states require that all amounts 

be reported based on the accrual method of accounting.

Time for filing may differ. The time for filing Form 990-PF with 

the IRS may differ from the time for filing state reports.

G. Furnishing Copies of Form 990-PF 

to State Officials

The foundation managers must furnish a copy of Form 990-PF 

and Form 4720 (if applicable) to the Attorney General of:

• Each state required to be listed in Part VI-A, line 8a;

• The state in which the foundation's principal office is located; 

and

• The state in which the foundation was incorporated or 

created.

A copy of the annual return must be sent to the Attorney 

General at the same time the annual return is filed with the IRS.

Other requirements. If the Attorney General or other 

appropriate state official of any state requests a copy of the 

annual return, the foundation managers must comply with the 

request.

Exceptions. These rules don't apply to any foreign foundation 

that, from the date of its creation, has received at least 85% of its 

support (excluding gross investment income) from sources 

outside the United States. See S. Organizations Organized or 

Created in a Foreign Country, later, for other exceptions that 

affect this type of organization.

Coordination with state reporting requirements. If the 

foundation managers submit a copy of Form 990-PF and Form 

4720 (if applicable) to a state Attorney General to satisfy a state 

reporting requirement, they don't have to furnish a second copy 

to that Attorney General to comply with the Internal Revenue 

Code requirements discussed in this section.

If there is a state reporting requirement to file a copy of Form 

990-PF with a state official other than the Attorney General (for 

instance, the Secretary of State), then the foundation managers 

must also send a copy of the Form 990-PF and Form 4720 (if 

applicable) to the Attorney General of that state.

H. Accounting Period

Calendar or fiscal year. File the 2023 return for the calendar 

year 2023 or fiscal year beginning in 2023. If the return is for a 

fiscal year, fill in the beginning and ending dates of the tax year 

in the spaces at the top of the return.

The return must be filed on the basis of the established 

annual accounting period of the organization. If the organization 

has no established accounting period, the return should be on 

the calendar-year basis.

Short period. For an initial or final return or for a short tax year 

resulting from a change in accounting period, the 2023 form may 

also be used as the return for a short period (less than 12 

months) ending November 30, 2023, or earlier. The 2023 form 

may also be used for a short period beginning after November 

30, 2023, and ending before December 31, 2024 (not on or after 

December 31, 2024). Note on the short period return the change 

of accounting period.

Accounting period change. In general, to change its 

accounting period, the organization must file Form 990-PF by the 

due date for the short period resulting from the change. At the 

top of this short period return, write “Change of Accounting 

Period.”

If the organization has previously changed its accounting 

period within the 10-calendar-year period that includes the 

beginning of the short period resulting from the current change in 

accounting period, and it had a Form 990-PF filing requirement 

Instructions for Form 990-PF (2023) 7
at any time during that 10-year period, it must also file Form 

1128, Application to Adopt, Change, or Retain a Tax Year, with 

the short-period return. See Rev. Proc. 85-58, 1985-2 C.B. 740, 

1985-18 I.R.B. 5.

I. Accounting Methods

An “accounting method,” for federal income tax purposes, is a 

practice a taxpayer follows to determine the taxable year in 

which to report revenue and expenses for federal income tax 

purposes. An accounting method includes not only the overall 

plan of accounting for gross income or deductions (for example, 

an accrual method or the cash receipts and disbursement 

method), but also the treatment of any item that involves the 

proper time for the inclusion of an item in income or the taking of 

an item as a deduction, or both. However, a practice that does 

not affect the timing for reporting an item of income or deduction 

for purposes of determining taxable income is not an accounting 

method. A taxpayer, including a tax-exempt entity, generally 

adopts any permissible accounting method in the first year in 

which it uses the method in determining its taxable income. See 

Rev. Proc. 2015-13, 2015-5 I.R.B. 419.

An exempt organization may adopt an accounting 

method not only for purposes of calculating taxable 

income, but also for purposes of determining whether 

taxable income will be subject to federal income tax. For 

example, a tax-exempt entity may adopt an accounting method 

for an item of income from an unrelated trade or business activity 

even if the gross income from such activity is less than $1,000 

and is therefore not taxed for federal income tax purposes 

pursuant to Regulations section 1.6012-2(e).

An accounting method for an item of income or deduction 

may generally be adopted separately for each of the taxpayer’s 

trades or businesses. However, in order to be permissible, an 

accounting method must clearly reflect the taxpayer’s income. 

Unless instructed otherwise, the organization should generally 

use the same accounting method on the return (including the 

Form 990-PF and all schedules) to report revenue and expenses 

that it regularly uses to keep its books and records.

Accounting method change. Once a taxpayer, including a 

tax-exempt entity, adopts an accounting method for federal 

income tax purposes, the taxpayer must generally request the 

IRS’s consent before it can change its accounting method (even 

if the year in which the taxpayer seeks to make the change is a 

year in which it generates only tax-exempt income or is 

otherwise not taxed on its taxable income). In most cases, a 

taxpayer requests consent to change an accounting method by 

filing a Form 3115, Application for Change in Accounting 

Method. See Rev. Proc. 2015-13, or any successor, for general 

procedures for obtaining consent to change an accounting 

method.

Depending upon the specific accounting method change 

being requested, the taxpayer may be able to request 

“automatic” consent. This means that as long as the 

taxpayer follows the applicable procedures, the taxpayer does 

not have to wait for formal approval by the IRS before applying 

the new accounting method. See Rev. Proc. 2019-43, 2019-48 

I.R.B. 1107, as modified by Rev. Proc. 2021-34, 2021-35 I.R.B. 

337, or its successor, for a list of accounting method changes 

that generally qualify for automatic consent.

For example, a tax-exempt entity that has adopted an 

accounting method for an item of income from an unrelated trade 

or business must generally request consent before it can change 

its method of accounting for that item in any subsequent year. 

This is true regardless of whether gross income from the 

unrelated trade or business is greater than or equal to $1,000 in 

such subsequent year.

CAUTION

!

CAUTION

!

Alternatively, if a taxpayer, including a tax-exempt entity, has 

not yet adopted an accounting method for an item of income or 

deduction, a change in how the entity reports the item is not a 

change in accounting method. In this case, the procedures 

applicable to requests for accounting method changes (for 

example, the requirement to file a Form 3115) are not applicable.

Thus, a tax-exempt entity that has never taken into account 

an item of income or deduction in determining taxable income 

does not have to request consent to change its method of 

reporting that item on Form 990-PF. Additionally, a tax-exempt 

entity that has never been subject to federal income tax on an 

item of income or deduction but that is required to file a Form 

990-T solely due to owing a section 6033(e)(2) proxy tax does 

not have to request consent to change its method for reporting 

the item.

Exception. Complete Part I, column (d), on the cash receipts 

and disbursements method of accounting.

J. When and How To File

This return must be filed by the 15th day of the 5th month 

following the close of the foundation's tax year. If the regular due 

date falls on a Saturday, Sunday, or legal holiday, file by the next 

business day. If the return is filed late, see M. Penalty for Failure 

To File Timely, Completely, or Correctly, later.

In the case of a complete liquidation, dissolution, or 

termination, file the return by the 15th day of the 5th month 

following complete liquidation, dissolution, or termination.

Required electronic filing. If you are filing a 2023 Form 

990-PF, you are required to file electronically.

For additional information on the electronic filing requirement 

and e-file providers, visit IRS.gov/EOefile.

K. Extension of Time To File

A foundation generally uses Form 8868 to request an automatic 

extension of time to file its return.

An automatic extension will be granted if you properly 

complete this form, file it, and pay any balance due by the due 

date for Form 990-PF.

L. Amended Return

To change the organization's return for any year, file an amended 

return, including attachments, with the correct information. The 

amended return must provide all the information required by the 

form and instructions, not just the new or corrected information. 

Check “Amended return” in Item G at the top of page 1 of the 

form. See Line 9. Tax due, later.

If the organization files an amended return to claim a refund of 

tax paid under section 4940 or 4948, it must file the amended 

return within 3 years after the date the original return was filed, or 

within 2 years from the date the tax was paid, whichever date is 

later.

State reporting requirements. See Amended returns, earlier.

Need a copy of an old return or form? Use Form 4506 to 

obtain a copy of a previously filed return. You can download 

items from the IRS website at IRS.gov/FormsPubs.

M. Penalty for Failure To File Timely, 

Completely, or Correctly

To avoid filing an incomplete return or having to respond to 

requests for missing information, see B. Which Parts To 

Complete, earlier.

Against the organization. If an organization doesn't file timely 

and completely, or doesn't furnish the correct information, it must 

8 Instructions for Form 990-PF (2023)
pay $20 for each day the failure continues ($120 a day if it is a 

large organization), unless it can show that the failure was due to 

reasonable cause. The maximum penalty for each return won't 

exceed the smaller of $12,000 ($60,000 for a large organization) 

or 5% of the gross receipts of the organization for the year.

Large organization. A large organization is one that has 

gross receipts exceeding $1,208,500 for the tax year.

Gross receipts. Gross receipts means the gross amount 

received during the foundation's annual accounting period from 

all sources without reduction for any costs or expenses.

To calculate the foundation's gross receipts, figure the 

following.

1. Part I, line 12, column (a).

2. Add lines 6b and 10b.

3. Subtract line 6a.

Against the responsible person. The IRS will make written 

demand that the delinquent return be filed or the information 

furnished within a reasonable time after the mailing of the notice 

of the demand. The person failing to comply with the demand on 

or before the date specified will have to pay $10 for each day the 

failure continues, unless there is reasonable cause. The 

maximum penalty imposed on all persons for any one return is 

$6,000. If more than one person is liable for any failures, all such 

persons are jointly and severally liable for such failures. See 

section 6652(c) for further information.

Other penalties. Because this return also satisfies the filing 

requirements of a tax return under section 6011 for the tax on 

investment income imposed by section 4940 (or 4948 if an 

exempt foreign organization), the penalties imposed by section 

6651 for not filing a return (without reasonable cause) also apply.

There are also criminal penalties for willful failure to file and 

for filing fraudulent returns and statements. See sections 7203, 

7206, and 7207.

Most tax-exempt organizations, other than churches, are 

required to file an annual Form 990, 990-EZ, 990-PF, or 990-N 

e-Postcard with the IRS. If an organization fails to file an annual 

return or notice for 3 consecutive years, it will automatically lose 

its tax-exempt status. A private foundation that loses its 

exemption must file income tax returns and pay income taxes 

and must file Form 990-PF as a taxable private foundation. For 

details, go to IRS.gov/EO.

N. Penalties for Not Paying Tax on 

Time

There is a penalty for not paying tax when due (section 6651). 

The penalty is generally 1/2 of 1% of the unpaid tax for each 

month or part of a month the tax remains unpaid, not to exceed 

25% of the unpaid tax. If there was reasonable cause for not 

paying the tax on time, the penalty can be waived. However, 

interest is charged on any tax not paid on time, at the rate 

provided by section 6621.

Estimated tax penalty. The section 6655 penalty for failure to 

pay estimated tax applies to the tax on net investment income of 

domestic private foundations and section 4947(a)(1) nonexempt 

charitable trusts. The penalty also applies to any tax on 

unrelated business income of a private foundation. Generally, if a 

private foundation's tax liability is $500 or more and it didn't 

make the required payments on time, then it is subject to the 

penalty.

For more details, see the discussion of Form 2220, 

Underpayment of Estimated Tax by Corporations, in D. Other 

Forms You May Need To File, earlier.

A private foundation is also subject to the section 6656 

penalty for failure to deposit employment taxes when due. See 

sections 11 and 12 of Pub. 15 (Circular E), Employer’s Tax 

Guide, for details.

O. Figuring and Paying Estimated Tax

A domestic exempt private foundation, a domestic taxable 

private foundation, or a nonexempt charitable trust treated as a 

private foundation must make estimated tax payments for the 

excise tax based on investment income if it can expect its 

estimated tax (section 4940 tax minus allowable credits) to be 

$500 or more. The number of installment payments it must make 

under the depository method is determined at the time during 

the year that it first meets this requirement. For calendar-year 

taxpayers, the first deposit of estimated taxes for a year should 

generally be made by May 15 of the year.

Although Form 990-W is used primarily to figure the 

installment payments of unrelated business income tax, it is also 

used to determine the timing and amounts of installment 

payments of the section 4940 tax based on investment income. 

Figure separately any required deposits of excise tax based on 

investment income and unrelated business income tax.

To figure the estimated tax for the excise tax based on 

investment income, see Part V. Enter the tax you figured on 

line 10a of Form 990-W.

The Form 990-W line items and instructions for large 

organizations also apply to private foundations. For purposes of 

paying the estimated tax on net investment income, a “large 

organization” is one that had net investment income of $1 million 

or more for any of the 3 tax years immediately preceding the tax 

year involved.

Penalty. A foundation that doesn't pay the proper estimated tax 

when due may be subject to the estimated tax penalty for the 

period of the underpayment. See sections 6655(b) and (d) and 

the Form 2220 instructions for further information.

With regard to figuring and paying employment taxes, see 

Pub. 15 (Circular E).

Special Rules

Section 4947(a)(1) nonexempt charitable trusts. Form 

1041-ES should be used to pay any estimated tax on income 

subject to tax under section 1. Form 1041-ES also contains the 

estimated tax rules for paying the tax on that income.

Taxable private foundations. Form 1120-W, Estimated Tax for 

Corporations, should be used to figure any estimated tax on 

income subject to tax under section 11. Form 1120-W contains 

the estimated tax rules for paying the tax on that income.

P. Tax Payment Methods for Domestic 

Private Foundations

The foundation must deposit all depository taxes (such as 

employment tax, excise tax, and unrelated business income tax) 

electronically using electronic funds transfer. Generally, such 

transfers are made using the Electronic Federal Tax Payment 

System (EFTPS). To get more information about EFTPS or to 

enroll in EFTPS, visit EFTPS.gov, or call 800-555-4477. To 

contact EFTPS using the Telecommunications Relay Services 

(TRS), for people who are deaf, hard of hearing, or have a 

speech disability, dial 711 and provide the TRS assistant the 

800-555-4477 number above or 800-733-4829. Additional 

information about EFTPS is also available in Pub. 966, Electronic 

Federal Tax Payment System: A Guide to Getting Started. See 

below for an exception to this rule for small foundations.

Depositing on time. For deposits made by EFTPS to be on 

time, the foundation must generally submit the transaction at 

least 1 business day before the date the deposit is due. See Pub. 

Instructions for Form 990-PF (2023) 9
15 (Circular E) for information on a same-day payment option 

under some circumstances.

Q. Public Inspection Requirements

A private foundation must make its annual returns and exemption 

application available for public inspection.

Definitions

Annual returns. Annual returns include an exact copy of the 

following documents as filed with the IRS.

• Form 990-PF, including all schedules, attachments, and 

supporting documents, and any amended return that is 3 or 

fewer years old from:

1. The date the original return was filed or required to be 

filed, or

2. The date the return was required to be filed.

• Form 990-T, if it was used to report any tax on unrelated 

business income.

Exemption application. An application for tax exemption 

includes (except as described later):

• Any prescribed application form (such as Form 1023 or Form 

1024),

• Any letter application where a form isn't required,

• All documents and statements the IRS requires an applicant 

to file with the form or letter application,

• Any statement or other supporting document submitted in 

support of the application, and

• Any letter or other document issued by the IRS concerning the 

application.

An application for tax exemption doesn't include:

• Any application for tax exemption filed before July 15, 1987, 

unless the private foundation filing the application had a copy of 

the application on July 15, 1987; or

• Any material that isn't available for public inspection under 

section 6104.

Who Must Make the Annual Returns and 

Exemption Application Available for Public 

Inspection?

The foundation's Form 990-PF, Form 990-T, and exemption 

application must be made available to the public by the 

foundation and the IRS.

How Does a Private Foundation Make Its Annual 

Returns and Exemption Application Available 

for Public Inspection?

A private foundation must make its annual returns and exemption 

application available in three ways.

• By office visitation.

• By providing copies.

• By Internet posting.

Public Inspection by Office Visitation

A private foundation must make its annual returns and exemption 

application available for public inspection without charge at its 

principal, regional, and district offices during regular business 

hours.

Conditions that may be set for public inspection at the office. A private foundation:

• May have an employee present,

• Must allow the individual conducting the inspection to take 

notes freely during the inspection, and

• Must allow an individual to make photocopies of documents at 

no charge but only if the individual brings photocopying 

equipment to the place of inspection.

Determining if a site is a regional or district office. A 

regional or district office is any office of a private foundation, 

other than its principal office, that has paid employees whose 

total number of paid hours a week are normally 120 hours or 

more. Include the hours worked by part-time (as well as full-time) 

employees in making that determination.

What sites aren't considered a regional or district office? 

A site isn't considered a regional or district office if:

1. The only services provided at the site further the 

foundation's exempt purposes (for example, day care, health 

care, or scientific or medical research); and

2. The site doesn't serve as an office for management staff, 

other than managers who are involved only in managing the 

exempt function activities at the site.

What if the private foundation doesn't maintain a permanent office? If the private foundation doesn't maintain a 

permanent office, it will comply with the public inspection by 

office visitation requirement by making the annual returns and 

exemption application available at a reasonable location of its 

choice. It must permit public inspection:

• Within a reasonable amount of time after receiving a request 

for inspection (normally, not more than 2 weeks), and

• At a reasonable time of day.

Optional method of complying. If a private foundation that 

doesn't have a permanent office wishes not to allow an 

inspection by office visitation, it may mail a copy of the requested 

documents instead of allowing an inspection. However, it must 

mail the documents within 2 weeks of receiving the request and 

may charge for copying and postage only if the requester 

consents to the charge.

Private foundations with a permanent office but limited 

or no hours. Even if a private foundation has a permanent 

office but no office hours or very limited hours during certain 

times of the year, it must still meet the office visitation 

requirement. To meet this requirement during those periods 

when office hours are limited or not available, follow the rules 

above under What if the private foundation doesn't maintain a 

permanent office, earlier.

Public Inspection—Providing Copies

A private foundation must provide copies of its annual returns or 

exemption application to any individual who makes a request for 

a copy in person or in writing unless it makes these documents 

widely available.

In-person requests for document copies. A private 

foundation must provide copies to any individual who makes a 

request in person at the private foundation's principal, regional, 

or district offices during regular business hours on the same day 

that the individual makes the request.

Accepted delay in fulfilling an in-person request. If 

unusual circumstances exist and fulfilling a request on the same 

day places an unreasonable burden on the private foundation, it 

must provide copies by the earlier of:

• The next business day following the day that the unusual 

circumstances end, or

• The fifth business day after the date of the request.

Examples of unusual circumstances include:

• Receipt of a volume of requests (for document copies) that 

exceeds the private foundation's daily capacity to make copies,

• Requests received shortly before the end of regular business 

hours that require an extensive amount of copying, or

10 Instructions for Form 990-PF (2023)
• Requests received on a day when the organization's 

managerial staff capable of fulfilling the request is conducting 

official duties (for instance, student registration or attending an 

off-site meeting or convention) instead of its regular 

administrative duties.

Use of local agents for providing copies. A private 

foundation may use a local agent to handle in-person requests 

for document copies. If a private foundation uses a local agent, it 

must immediately provide the local agent's name, address, and 

telephone number to the requester.

The local agent must:

• Be located within reasonable proximity to the principal, 

regional, or district office where the individual makes the request; 

and

• Provide document copies within the same time frames as the 

private foundation.

Written requests for document copies. If a private foundation 

receives a written request for a copy of its annual returns or 

exemption application (or parts of these documents), it must give 

a copy to the requester. However, this rule only applies if the 

request:

• Is addressed to a private foundation's principal, regional, or 

district office;

• Is delivered to that address by mail, electronic mail (email), 

facsimile (fax), or a private delivery service approved by the IRS 

(go to IRS.gov/PDS for the current list of approved services); and

• Gives the address to which the document copies should be 

sent.

How and when a written request is fulfilled. Requested 

document copies must be mailed within 30 days from the date 

the private foundation receives the request.

Unless other evidence exists, a mailed request or payment is 

considered to be received by the private foundation 7 days after 

the postmark date.

If an advance payment is required, copies must be provided 

within 30 days from the date payment is received.

If the private foundation requires payment in advance and it 

receives a request without payment or with insufficient payment, 

it must notify the requester of the prepayment policy and the 

amount due within 7 days from the date it receives the request.

A request that is transmitted to the private foundation by email 

or fax is considered received the day the request is transmitted 

successfully.

Requested documents can be emailed instead of the 

traditional method of mailing if the requester consents to this 

method.

A document copy is considered as provided on the:

• Postmark date,

• Private delivery date,

• Registration date for certified or registered mail,

• Postmark date on the sender's receipt for certified or 

registered mail, or

• Day the email is successfully transmitted (if the requester 

agreed to this method).

Requests for parts of a document copy. A person can 

request all or any specific part or schedule of the annual returns 

or exemption application, and the private foundation must fulfill 

the person's request for a copy.

Can an agent be used to provide copies? A private 

foundation can use an agent to provide document copies for the 

written requests it receives. However, the agent must provide the 

document copies under the same conditions imposed on the 

private foundation itself. Also, if an agent fails to provide the 

documents as required, the private foundation will continue to be 

subject to penalties.

Example. The ABC Foundation retained an agent to provide 

copies for all written requests for documents. However, ABC 

Foundation received a request for document copies before the 

agent did.

The deadline for providing a response is referenced by the 

date the ABC Foundation received the request and not when the 

agent received it. If the agent received the request first, then a 

response would be referenced to the date the agent received it.

Can a fee be charged for providing copies? A private 

foundation may charge a reasonable fee for providing copies. 

Also, it can require the fee to be paid before providing a copy of 

the requested document.

What is a reasonable fee? A fee is reasonable only if it is no 

more than the per-page copying fee charged by the IRS for 

providing copies, plus no more than the actual postage costs 

incurred to provide the copies.

What forms of payment must the private foundation 

accept? The form of payment depends on whether the request 

for copies is made in person or in writing.

Cash and money orders must be accepted for in-person 

requests for document copies. The private foundation, if it 

wishes, may accept additional forms of payment.

A certified check, money order, and either a personal check 

or credit card must be accepted for written requests for 

document copies. The private foundation, if it wishes, may 

accept additional forms of payment.

Other fee information. If a private foundation provides a 

requester with notice of a fee and the requester doesn't pay the 

fee within 30 days, the private foundation may ignore the 

request.

If a requester's check doesn't clear on deposit, the private 

foundation may ignore the request.

If a private foundation doesn't require prepayment and the 

requester doesn't prepay, the private foundation must receive 

consent from the requester if the copying and postage charge 

exceeds $20.

Private foundations subject to a harassment campaign. If 

the IRS determines that a private foundation is being harassed, it 

isn't required to comply with any request for copies that it 

reasonably believes is part of the harassment campaign.

A group of requests for a private foundation's annual returns 

or exemption application is indicative of a harassment campaign 

if the requests are part of a single coordinated effort to disrupt 

the operations of the private foundation rather than to collect 

information about it.

See Regulations section 301.6104(d)-3 for more information.

Requests that may be disregarded without IRS approval. A 

private foundation may disregard any request for copies of all or 

part of any document beyond the first two received within any 

30-day period or the first four received within any 1-year period 

from the same individual or the same address.

Making the Annual Returns and Exemption 

Application Widely Available

A private foundation doesn't have to provide copies of its annual 

returns and/or its exemption application if it makes these 

documents widely available. However, it must still allow public 

inspection by office visitation.

How does a private foundation make its annual returns and 

exemption application widely available? A private 

foundation's annual returns and/or exemption application is 

widely available if it meets all four of the following requirements.

1. Internet posting requirement—This is met if:

Instructions for Form 990-PF (2023) 11
• The document is posted on the foundation's website, or

• The document is posted as part of a database of like 

documents of other tax-exempt organizations on a website 

established and maintained by another entity.

2. Additional posting information requirement—This is met if:

• The website through which the document is available clearly 

informs readers that the document is available and provides 

instructions for downloading the document;

• After it is downloaded and viewed, the web document exactly 

reproduces the image of the annual returns or exemption 

application as it was originally filed with the IRS, except for any 

information permitted by statute to be withheld from public 

disclosure; and

• Any individual with access to the Internet can access, 

download, view, and print the document without special 

computer hardware or software required for that format (except 

software that is readily available to members of the public 

without payment of any fee) and without payment of a fee to the 

private foundation or to another entity maintaining the web page.

3. Reliability and accuracy requirements—To meet this, the 

entity maintaining the website must:

• Have procedures for ensuring the reliability and accuracy of 

the document that it posts on the page;

• Take reasonable precautions to prevent alteration, 

destruction, or accidental loss of the document when posted on 

its page; and

• Correct or replace the document if a posted document is 

altered, destroyed, or lost.

4. Notice requirement—To meet this, a private foundation 

must notify any individual requesting copies of its annual returns 

and/or exemption application where the documents are available 

(including the Internet address). If the request is made in person, 

the private foundation must notify the individual immediately. If 

the request is in writing, it must notify the individual within 7 days 

of receiving the request.

Penalties

A penalty may be imposed on any person who doesn't make the 

annual returns (including all required attachments to each return) 

or the exemption application available for public inspection 

according to the section 6104(d) rules discussed above. If more 

than one person fails to comply, each person is jointly and 

severally liable for the full amount of the penalty. The penalty 

amount is $20 for each day during which a failure occurs. The 

maximum penalty that may be imposed on all persons for any 

one annual return is $12,000. There is no maximum penalty 

amount for failure to make the exemption application available for 

public inspection.

Any person who willfully fails to comply with the section 

6104(d) public inspection requirements is subject to an 

additional penalty of $5,000.

Requirements Placed on the IRS

The IRS makes available a private foundation's Form 990-PF, 

Form 990-T, and approved exemption application. You may view 

exempt organization forms free of charge on Tax Exempt 

Organization Search (TEOS) at IRS.gov/TEOS. You may contact 

the IRS to obtain a copy of a return if it is not available online. 

Complete information is available on the IRS website at IRS.gov/

Charities-Non-Profits/Copies-of-EO-Returns-Available.

R. Disclosures Regarding Certain 

Information and Services Furnished

A section 501(c) organization that offers to sell or solicits money 

for specific information or a routine service to any individual that 

could be obtained by the individual from a federal government 

agency free or for a nominal charge must disclose that fact 

conspicuously when making such offer or solicitation.

Any organization that intentionally disregards this requirement 

will be subject to a penalty for each day the offers or solicitations 

are made. The penalty is the greater of $1,000 or 50% of the 

total cost of the offers and solicitations made on that day.

S. Organizations Organized or 

Created in a Foreign Country

If the organization applies any provision of any U.S. tax treaty to 

figure the foundation's taxable income, tax liability, or tax credits 

in a manner different from these instructions, attach an 

explanation.

Section 4948(a) imposes a 4% tax on the gross investment 

income (but not capital gain net income) of an exempt foreign 

private foundation from U.S. sources, such as dividends; 

interest; rents; payments received on securities loans, as defined 

in section 512(a)(5); and royalties. Amounts taken into income 

on Form 990-T are excepted. The section 4948(a) tax replaces 

the section 4940 tax on the net investment income of a domestic 

private foundation. A foreign foundation doesn't complete Form 

990-PF, Part IV.

Under section 4948(b), sections 507 and 508 and chapter 42 

(other than section 4948) don't apply to a foreign organization 

that from the date of its creation has received at least 85% of its 

support (as defined in section 509(d), excluding gross 

investment income) from sources outside the United States. The 

foreign foundation's section 501(c)(3) status can be revoked, 

however, if it commits a violation of chapter 42 (other than 

section 4942) after receiving a warning of a violation from the 

IRS, or if it commits a willful and flagrant violation. A foreign 

foundation described in section 4948(b) doesn't complete Form 

990-PF, Parts IX (unless claiming status as an operating 

foundation), X, XII, and XIV; isn't required to send a copy of its 

annual return to a state official; and isn't required to comply with 

the public inspection requirements for annual returns (see G. 

Furnishing Copies of Form 990-PF to State Officials and Q. 

Public Inspection Requirements, earlier). The foundation must 

attach a computation of the 85% test to the return.

Taxable foreign private foundations and foreign section 

4947(a)(1) nonexempt charitable trusts aren't subject to excise 

tax under section 4948(a) or 4940, but are subject to income tax 

under subtitle A of the Code.

For these purposes, U.S. territories are considered part of the 

United States, and thus territories' organizations aren't 

considered foreign organizations.

T. Liquidation, Dissolution, 

Termination, or Substantial 

Contraction

If there is a liquidation, dissolution, termination, or substantial 

contraction (defined below) of the organization, attach the 

following to the return.

• A statement to the return that describes the transaction.

• A certified copy of the liquidation plan, resolution, etc. (if any) 

and all amendments or supplements that weren't previously filed.

• A schedule that lists the names and addresses of all 

recipients of assets.

• An explanation of the nature and fair market value of the 

assets distributed to each recipient.

Additional requirements. For a complete corporate liquidation 

or trust termination, attach a statement as to whether a final 

distribution of assets was made and the date it was made (if 

applicable).

12 Instructions for Form 990-PF (2023)
Also, an organization must indicate:

• That it has ceased to exist and check Final return in Item G of 

the Heading section on page 1 of the return; or

• That it is terminating its private foundation status under 

section 507(b)(1)(B), according to U. Section 507(b)(1)(B) 

Termination Notice and Filing Requirements and V. Payment of 

Section 4940 Tax During Section 507(b)(1)(B) Termination, later; 

or

• That it is voluntarily terminating its private foundation status 

under section 507(a)(1) and owes a termination tax and must 

send the notice (and tax payment, if applicable) required by Rev. 

Rul. 2003-13, 2003-4 I.R.B. 305, and Rev. Rul. 2002-28, 

2002-20 I.R.B. 941, to the Manager, Exempt Organizations 

Determinations, at the address given in U. Section 507(b)(1)(B) 

Termination Notice and Filing Requirements, later.

Relief from public inspection requirements. If the 

organization has terminated its private foundation status under 

section 507(b)(1)(A), it doesn't have to comply with the notice 

and public inspection requirements of the return for the 

termination year.

Filing date. See J. When and How To File, earlier, for the filing 

date.

Definitions. The term “substantial contraction” includes any 

partial liquidation or any other significant disposition of assets. 

However, this doesn't include transfers for full and adequate 

consideration or distributions of current income.

A significant disposition of assets doesn't include any 

disposition for a tax year if:

1. The total of the dispositions for the tax year is less than 

25% of the fair market value of the net assets of the organization 

at the beginning of the tax year, and

2. The total of the related dispositions made during prior tax 

years (if a disposition is part of a series of related dispositions 

made during these prior tax years) is less than 25% of the fair 

market value of the net assets of the organization at the 

beginning of the tax year in which any of the series of related 

dispositions was made.

The facts and circumstances of the particular case will 

determine whether a significant disposition has occurred through 

a series of related dispositions. Ordinarily, a distribution 

described in section 170(b)(1)(F)(ii) (relating to private 

foundations making qualifying distributions out of corpus equal 

to 100% of contributions received during the foundation's tax 

year) won't be taken into account as a significant disposition of 

assets. See Regulations section 1.170A-9(h)(2).

U. Section 507(b)(1)(B) 

Termination—Notice and Filing 

Requirements

A private foundation or nonexempt charitable trust (other than a 

foundation or trust described in section 4948(b)) may terminate 

its private foundation status under section 507(b)(1)(B) by 

meeting the requirements of public charity status under section 

509(a)(1), (2), or (3) over a continuous 60-month period that 

begins with the beginning of a tax year of the organization. The 

organization must give proper notice to the IRS prior to the start 

of the 60-month period, and establish to the satisfaction of the 

IRS within 90 days after the end of the 60-month period that it so 

qualified.

If the organization fails to qualify as a public charity over the 

entire 60-month period, then it will be treated as a private 

foundation after the end of the 60-month period, and for any tax 

year within the 60-month period in which it didn't qualify as a 

public charity.

An organization gives the IRS notice of termination under 

section 507(b)(1)(B) by submitting Form 8940, Request for 

Miscellaneous Determinations, on which it provides the 

information set forth in Regulations section 1.507-2(b)(3).

An organization may also give the notice with a request for an 

advance ruling that the organization can be expected to meet the 

requirements of public charity status during the 60-month period. 

Form 8940, Request for Miscellaneous Determination, is also 

used for this purpose. No user fee is required to provide the 

required notice, but a user fee is required if an advance ruling is 

requested. See the Instructions for Form 8940 for more 

information.The advantage of an advance ruling is that the 

organization’s grantors and contributors can generally rely on it 

during the 60-month period, and the ruling constitutes 

reasonable cause for abatement of penalties for failure to pay 

section 4940 tax during the period. The organization itself can't 

rely on the ruling to avoid private foundation status during or after 

the 60-month period.

Although an organization terminating its private foundation 

status under section 507(b)(1)(B) may be regarded as a public 

charity for certain purposes, it is considered a private foundation 

for filing requirement purposes and must file an annual return on 

Form 990-PF. The return must be filed for each year in the 

60-month termination period, if that period hasn't expired before 

the due date of the return.

Within 90 days after the end of the termination period, the 

organization must supply information to the IRS establishing that 

it has terminated its private foundation status and, as a result, 

qualifies as a public charity. This information is provided on Form 

8940.

If information is furnished establishing a successful 

termination, then, for the final year of the termination period, the 

organization should comply with the filing requirements for the 

type of public charity it has become. See the Instructions for 

Form 990 and the Instructions for Schedule A (Form 990 or 

990-EZ) for details on filing requirements. This applies even if the 

IRS hasn't confirmed that the organization has terminated its 

private foundation status by the time the return for the final year 

of the termination is due (or would be due if a return were 

required).

The organization will be allowed a reasonable period of time 

to file any private foundation returns required (for the last year of 

the termination period) but not previously filed if it is later 

determined that the organization didn't terminate its private 

foundation status. Interest on any tax due will be charged from 

the original due date of Form 990-PF, but penalties under 

sections 6651 and 6652 won't be assessed if Form 990-PF is 

filed within the period allowed by the IRS.

V. Payment of Section 4940 Tax 

During Section 507(b)(1)(B) 

Termination

An organization terminating its private foundation status under 

section 507(b)(1)(B) may file Form 990-PF without paying the 

section 4940 tax based on investment income if it filed a consent 

under section 6501(c)(4) with its notice of termination prior to the 

start of the 60-month period. The consent provides that the 

period of limitation on the assessment of tax under chapter 42, 

based on investment income for any tax year in the 60-month 

period, won't expire until at least 1 year after the period for 

assessing a deficiency for the last tax year in which the 

60-month period would normally expire. Any foundation not 

paying the tax when it files Form 990-PF must attach a copy of 

the signed consent.

If the foundation didn't file the consent, the tax must be paid in 

the normal manner as explained in O. Figuring and Paying 

Instructions for Form 990-PF (2023) 13
Estimated Tax and P. Tax Payment Methods for Domestic Private 

Foundations, earlier. The organization may file a claim for refund 

after completing termination or during the termination period. 

The claim for refund must be filed on time and the organization 

must supply information establishing that it qualified as a public 

charity for the period for which it paid the tax.

W. Rounding, Currency, and 

Attachments

Rounding off to whole dollars. You must round off cents to 

whole dollars on your return and schedules. To round, drop 

amounts under 50 cents and increase amounts from 50 to 99 

cents to the next dollar. For example, $1.39 becomes $1 and 

$2.50 becomes $3.

If you have to add two or more amounts to figure the amount 

to enter on a line, include cents when adding the amounts and 

round off only the total.

Currency and language requirements. Report all amounts in 

U.S. dollars. State the conversion rate used. Report all items in 

total, including amounts from both U.S. and non-U.S. sources. 

All information must be in English.

Attachments. Use the schedules on Form 990-PF. If you need 

more space, use attachments that are the same size as the 

printed forms.

On each attachment, write:

• “Form 990-PF,”

• The tax year,

• The corresponding schedule number or letter,

• The organization's name and EIN, and

• The information requested using the format and line sequence 

of the printed form.

Also, show totals on the printed forms.

Specific Instructions

Heading

Name and Address

If the organization operates under a name different from its legal 

name, give the legal name of the organization but identify its 

alternate name, after the legal name, by writing “aka” (also 

known as) and the alternate name of the organization. The 

address used must be that of the principal office of the 

foundation.

Include the suite, room, or other unit number after the street 

address. If the post office doesn't deliver mail to the street 

address and the organization has a P.O. box, show the box 

number instead of the street address.

Item A. Employer Identification Number

The organization should have only one EIN. If it has more than 

one EIN, notify the Internal Revenue Service Center at the 

address shown under J. When and How To File, earlier. Explain 

what numbers the organization has, the name and address to 

which each number was assigned, and the address of the 

organization's principal office. The IRS will then advise which 

number to use.

Item B. Telephone Number

Enter a foundation telephone number (including the area code) 

that the public and government regulators may use to obtain 

information about the foundation's finances and activities. This 

information should be available at this telephone number during 

normal business hours. If the foundation doesn't have a 

telephone, enter a telephone number of a foundation official who 

can provide this information during normal business hours.

Item D2. Foreign Organizations

If the foreign organization meets the 85% test of Regulations 

section 53.4948-1(b), then:

• Check the box in D2 in the Heading section on page 1 of Form 

990-PF,

• Check the box at the top of Part X,

• Don’t fill in Parts X and XII,

• Don’t fill in Part IX unless it is claiming status as a private 

operating foundation, and

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

Note. In addition to these requirements, foreign organizations 

checking the box in D1 of the Heading on Form 990-PF don't 

complete Part IV or Part I, line 7. See B. Which Parts To 

Complete, earlier, for more details.

Item E. Section 507(b)(1)(A) Terminations

A private foundation that has terminated its private foundation 

status under section 507(b)(1)(A) during the tax year being 

reported, by distributing all its net assets to one or more public 

charities without keeping any right, title, or interest in those 

assets, should check this box. See Q. Public Inspection 

Requirements and T. Liquidation, Dissolution, Termination, or 

Substantial Contraction, earlier.

Item F. 60-Month Termination Under Section 

507(b)(1)(B)

Check this box if the organization is terminating its private 

foundation status under the 60-month provisions of section 

507(b)(1)(B) during the period covered by this return. To begin 

such a termination, a private foundation must have given 

advance notice to TE/GE at the Cincinnati address given earlier 

and provided the information outlined in Regulations section 

1.507-2(b)(3). See U. Section 507(b)(1)(B) Termination Notice 

and Filing Requirements, earlier, for information regarding filing 

requirements during a section 507(b)(1)(B) termination.

See V. Payment of Section 4940 Tax During Section 507(b)(1)

(B) Termination, earlier, for information regarding payment of the 

tax based on investment income (figured in Part V) during a 

section 507(b)(1)(B) termination.

Item G. Initial Return of Certain Former Public 

Charities

If this is the initial Form 990-PF return of a former public charity 

under section 170(b)(1)(A)(vi) or 509(a)(2) or 509(a)(3), then the 

organization is treated as a private foundation for the tax year 

being reported only for purposes of section 6033 (filing Form 

990-PF), section 4940 (paying excise tax on investment income), 

and section 507 (terminating private foundation status).

Item H. Type of Organization

Check the box for “Section 501(c)(3) exempt private foundation” 

if the foundation has a ruling or determination letter from the IRS 

in effect that recognizes its exemption from federal income tax as 

an organization described in section 501(c)(3) or if the 

organization's exemption application is pending with the IRS.

Check the “Section 4947(a)(1) nonexempt charitable trust” 

box if the trust is a nonexempt charitable trust treated as a 

private foundation. All others, check the “Other taxable private 

foundation” box.

14 Instructions for Form 990-PF (2023)
Item I. Fair Market Value of All Assets

In Item I in the Heading on page 1 of Form 990-PF, enter the fair 

market value of all assets the foundation held at the end of the 

tax year.

This amount should be the same as the figure reported 

in Part II, line 16, column (c).

Part I. Analysis of Revenue and 

Expenses

Column Instructions

The total of amounts in columns (b), (c), and (d) (or any 

combination of them, such as columns (b) and (d)) may differ 

from the amount in column (a).

The amounts entered in column (a) and on line 5b must be 

analyzed in Part XV-A.

Column (a). Revenue and Expenses per Books

Enter in column (a) all items of revenue and expense shown in 

the books and records that increased or decreased the net 

assets of the organization. However, don't include the value of 

services donated to the foundation or items such as free use of 

equipment or facilities in contributions received. Also, don't 

include any expenses used to figure capital gains and losses on 

lines 6, 7, and 8 or expenses included in cost of goods sold on 

line 10b. For foundations that don't use the cash method of 

accounting for book purposes, charitable expenditures reported 

in column (a) won't necessarily match amounts reported in 

column (d).

Column (b). Net Investment Income

All domestic private foundations (including section 4947(a)(1) 

nonexempt charitable trusts) are required to pay an excise tax 

each tax year on net investment income.

Exempt foreign foundations are subject to an excise tax on 

gross investment income from U.S. sources. These foreign 

organizations should complete lines 3, 4, 5a, 5b, 11, 12, and 27b 

of column (b) and report only income derived from U.S. sources. 

No other income should be included. No expenses are allowed 

as deductions.

Definitions. See below.

Gross investment income. Gross investment income is the 

total amount of investment income that was received by a private 

foundation from all sources. However, it doesn't include any 

income subject to the unrelated business income tax. It includes 

interest, dividends, rents, payments with respect to securities 

loans (as defined in section 512(a)(5)), royalties received from 

assets devoted to charitable activities, income from notional 

principal contracts (as defined in Regulations section 1.863-7), 

annuities, substantially similar income from ordinary and routine 

investments, and income from similar sources. Therefore, 

interest received on a student loan is includible in the gross 

investment income of a private foundation making the loan.

Net investment income. Net investment income is the 

amount by which the sum of gross investment income and the 

capital gain net income exceeds the allowable deductions 

discussed later. Tax-exempt interest on governmental obligations 

and related expenses are excluded.

Investment income. Include in column (b) all or part of any 

amount from column (a) that applies to investment income. 

However, don't include in column (b) any income and related 

expenses reported on Form 990-T.

TIP

For example, investment income from debt-financed property 

unrelated to the organization's charitable purpose and certain 

rents (and related expenses) treated as unrelated trade or 

business income should be reported on Form 990-T. Income 

from debt-financed property that isn't taxed under section 511 is 

taxed under section 4940. Thus, if the debt/basis percentage of 

a debt-financed property is 80%, only 80% of the gross income 

(and expenses) for that property is used to figure the section 511 

tax on Form 990-T. The remaining 20% of the gross income (and 

expenses) of that property is used to figure the section 4940 tax 

on net investment income on Form 990-PF. (See Form 990-T 

and its instructions for more information.)

Investment expenses. Include in column (b) all ordinary and 

necessary expenses paid or incurred to produce or collect 

investment income from interest, dividends, rents, amounts 

received from payments on securities loans (as defined in 

section 512(a)(5)), royalties, income from notional principal 

contracts, annuities, substantially similar income from ordinary 

and routine investments, and income from similar sources; or for 

the management, conservation, or maintenance of property held 

for the production of income that is taxable under section 4940.

If any of the expenses listed in column (a) are paid or incurred 

for both investment and charitable purposes, they must be 

allocated on a reasonable basis between the investment 

activities and the charitable activities so that only expenses from 

investment activities appear in column (b). Examples of 

allocation methods are given in the instructions for Part VIII-A.

Limitation. The deduction for expenses paid or incurred in 

any tax year for producing gross investment income earned 

incident to a charitable function can't be more than income 

earned from the function includible as gross investment income 

for the year.

For example, if rental income is incidentally realized in 2021 

from historic buildings held open to the public, deductions for 

amounts paid or incurred in 2021 for the production of this 

income may not be more than the amount of rental income 

includible as gross investment income in column (b) for 2021.

Expenses related to tax-exempt interest. Don’t include on 

lines 13–23 of column (b) any expenses paid or incurred that are 

allocable to tax-exempt interest that is excluded from lines 3 and 

4.

If the foundation is a partner in a partnership, then 

pertinent items of income, gain, loss, deduction, or credit 

from the entity's Schedule K-1 (Form 1065) should 

generally be reported in columns (b) and (c) for the tax year of 

the entity ending with or within the foundation's tax year. See 

Regulations sections 53.4940-1(c)(1) and 53.4942(a)-2(d)(1).

By contrast, if the foundation is a beneficiary of a trust, 

distributions from the trust aren't included in income in column 

(c) if the trust was created and funded by a person other than the 

foundation, and aren't included in column (b). See Regulations 

section 53.4942(a)-2(d)(2)(vii) and Notice 2004-35, 2004-19 

I.R.B. 889, available at IRS.gov/irb/2004-19_IRB/index.html.

Column (c). Adjusted Net Income

Nonoperating private foundations should see 

Nonoperating private foundations, later, to find out if they 

need to complete column (c).

Private operating foundations. All organizations that claim 

status as private operating foundations under section 4942(j)(3) 

or (5) must complete all lines of column (c) that apply, according 

to the general rules for income and expenses that apply to this 

column, the specific line instructions for lines 3–27c, the Special 

rule, later, and Examples 1 and 2, later.

TIP TIP

Instructions for Form 990-PF (2023) 15
General rules. In general, adjusted net income is the amount of 

a private foundation's gross income that is more than the 

expenses of earning the income. The modifications and 

exclusions explained below are applied to gross income and 

expenses in figuring adjusted net income.

For income and expenses, include on each line of column (c) 

only that portion of the amount from column (a) allocable to the 

adjusted net income computation.

Income. For column (c), include income from charitable 

functions, investments, related and unrelated business, and 

amounts set aside; short-term capital gains and losses; 

recoveries of amounts that were treated as qualifying 

distributions in prior tax years; and amounts set aside that are 

determined not to be needed for the purposes for which they 

were set aside. Don’t include gifts, grants or contributions, or 

long-term capital gains or losses.

Expenses. Deductible expenses include the part of a private 

foundation's operating expenses paid or incurred to produce or 

collect gross income reported on lines 3–11 of column (c). If only 

part of the property produces income includible in column (c), 

deductions such as interest, taxes, and rent must be divided 

between the charitable and noncharitable uses of the property. If 

the deductions for property used for a charitable, educational, or 

other similar purpose are more than the income from the 

property, the excess won't be allowed as a deduction but may be 

treated as a qualifying distribution in Part I, column (d). See 

Examples 1 and 2, below.

Special rule. The expenses attributable to each specific 

charitable activity, limited by the amount of income from the 

activity, must be reported in column (c) on lines 13–26. If the 

expenses of any charitable activity exceed the income generated 

by that activity, only the excess of these expenses over the 

income should be reported in column (d).

Examples. 

1. A charitable activity generated $5,000 of income and 

$4,000 of expenses. Report all income and expenses in column 

(c) and none in column (d).

2. A charitable activity generated $5,000 of income and 

$6,000 of expenses. Report $5,000 of income and $5,000 of 

expenses in column (c) and the excess expenses of $1,000 in 

column (d).

Nonoperating private foundations. A foundation that doesn't 

claim status as a private operating foundation isn't required to 

complete column (c) unless either of the following applies.

1. The foundation received income from a charitable activity 

and wishes to claim a qualifying distribution for expenses 

incurred in the activity in excess of the income. The foundation 

must report such income only on lines 10 and/or 11 in column 

(c), and any expenses relating to this income following the 

general rules and the special rule above. See Examples 1 and 2, 

above. The foundation need not report other kinds of income and 

expenses (such as investment income and expenses) in column 

(c).

2. The foundation claims status under section 170(b)(1)(F)

(iii) (relating to foundations that maintain a common fund). The 

foundation must complete all lines of column (c) that apply.

Column (d). Disbursements for Charitable 

Purposes

Expenses entered in column (d) relate to activities that constitute 

the charitable purpose(s) of the foundation.

For amounts entered in column (d):

• Use the cash receipts and disbursements method of 

accounting no matter what accounting method is used in 

keeping the books of the foundation;

• Don’t include any amount or part of an amount included in 

column (b) or (c);

• Include on lines 13–25 all expenses, including necessary and 

reasonable administrative expenses, paid by the foundation for 

religious, charitable, scientific, literary, educational, or other 

public purposes, or for the prevention of cruelty to children or 

animals;

• Include a distribution of property at the fair market value on 

the date the distribution was made; and

• Include only the part entered in column (a) that is allocable to 

the charitable purposes of the foundation.

Example. An educational seminar produced $1,000 in 

income that was reportable in columns (a) and (c). Expenses 

attributable to this charitable activity were $1,900. Only $1,000 of 

expense should be reported in column (c) and the remaining 

$900 in expense should be reported in column (d).

Qualifying distributions. Generally, amounts paid to 

accomplish the foundation’s exempt purposes are qualifying 

distributions. Special rules apply in certain situations—see the 

line 25, column (d), instructions.

The total of the expenses and disbursements on line 26 

is also entered on line 1a in Part XI to figure qualifying 

distributions.

Alternative to completing lines 13–25. If you want to provide 

an analysis of disbursements that is more detailed than column 

(d), you may attach a schedule instead of completing lines 13–

25. The schedule must include all the specific items of lines 13–

25, and the total from the schedule must be entered on line 26, 

column (d).

Line Instructions

Line 1. Contributions, gifts, grants, etc., received. Enter the 

total of gross contributions, gifts, grants, and similar amounts 

received.

The Coronavirus Aid, Relief, and Economic Security Act 

(CARES Act) established the Paycheck Protection 

Program (PPP) to provide loans to small businesses as a 

direct incentive to keep their workers on the payroll. The loans 

are forgiven if all employee retention criteria are met and the 

funds are used for eligible expenses. Amounts of PPP loans that 

are forgiven may be reported on line 1 as contributions from a 

governmental unit in the taxable year that the amounts are 

forgiven or at such other time as provided in Rev. Proc. 2021-48, 

2021-49 I.R.B. 835.

Schedule B (Form 990). If money, securities, or other 

property valued at $5,000 or more was received directly or 

indirectly from any one person during the year, complete 

Schedule B and attach it to the return. If the foundation isn't 

required to complete Schedule B (no person contributed $5,000 

or more), be sure to check the box on line 2.

To determine whether a person has contributed $5,000 or 

more, total only gifts of $1,000 or more from each person. 

Separate and independent gifts need not be totaled if less than 

$1,000. If a contribution is in the form of property, describe the 

property and include its fair market value.

The term “person” includes individuals, fiduciaries, 

partnerships, corporations, associations, trusts, and exempt 

organizations.

Split-interest trusts. Distributions from split-interest trusts 

should be entered on line 1, column (a). They are a part of the 

amount on line 1.

TIP TIP

16 Instructions for Form 990-PF (2023)
Substantiation requirements. An organization must keep 

records, as required by the regulations under section 170.

Generally, a donor making a charitable contribution of $250 or 

more won't be allowed a federal income tax deduction unless the 

donor obtains a written acknowledgment from the donee 

organization by the earlier of the date on which the donor files a 

tax return for the tax year in which the contribution was made or 

the due date, including extensions, for filing that return. However, 

see section 170(f)(8)(D) and Regulations section 1.170A-13(f) 

for exceptions to this rule.

The written acknowledgment the foundation provides to the 

donor must show:

1. The amount of cash contributed;

2. A description of any property contributed;

3. Whether the foundation provided any goods or services to 

the donor; and

4. A description and a good-faith estimate of the value of 

any goods or services the foundation gave in return for the 

contribution, unless:

a. The goods and services have insubstantial value, or

b. A statement is included that these goods and services 

consist solely of intangible religious benefits.

Generally, if a charitable organization solicits or receives a 

contribution of more than $75 for which it gives the donor 

something in return (a quid pro quo contribution), the 

organization must inform the donor, by written statement, that the 

amount of the contribution deductible for federal income tax 

purposes is limited to the amount by which the contribution 

exceeds the value of the goods or services received by the 

donor. The written statement must also provide the donor with a 

good-faith estimate of the value of goods or services given in 

return for the contribution.

Penalties. An organization that doesn't make the required 

disclosure for each quid pro quo contribution will incur a penalty 

of $10 for each failure, not to exceed $5,000 for a particular 

fundraising event or mailing, unless it can show reasonable 

cause for not providing the disclosure.

For more information. See Regulations section 1.170A-13 

for more information on charitable recordkeeping and 

substantiation requirements.

Line 2. Check this box if the foundation isn't required to attach 

Schedule B.

Line 3. Interest on savings and temporary cash investments. Enter in the columns below.

In column (a). Enter the total amount of interest income from 

investments reportable in Part II, line 2. These include savings or 

other interest-bearing accounts and temporary cash 

investments, such as money market funds, commercial paper, 

certificates of deposit, and U.S. Treasury bills or other 

government obligations that mature in less than 1 year.

In column (b). Enter the amount of interest income shown in 

column (a). Don’t include interest on tax-exempt government 

obligations.

In column (c). Enter the amount of interest income shown in 

column (a). Include interest on tax-exempt government 

obligations.

Line 4. Dividends and interest from securities. Enter in the 

columns below.

In column (a). Enter the amount of dividend and interest 

income from securities (stocks and bonds) reportable in Part II, 

line 10. Include amounts received from payments on securities 

loans, as defined in section 512(a)(5). Don’t include any capital 

gain dividends reportable on line 6a. Report income from 

program-related investments on line 11. For debt instruments 

with an original issue discount, report the original issue discount 

ratably over the life of the bond on line 4. See section 1272 for 

more information.

In column (b). Enter the amount of dividend and interest 

income and payments on securities loans from column (a). Don’t 

include interest on tax-exempt government obligations.

In column (c). Enter the amount of dividend and interest 

income and payments on securities loans from column (a). 

Include interest on tax-exempt government obligations.

Line 5a. Gross rents. Enter in the columns below.

In column (a). Enter the gross rental income for the year 

from investment property reportable in Part II, line 11.

In columns (b) and (c). Enter the gross rental income from 

column (a).

Line 5b. Net rental income or (loss). Figure the net rental 

income or (loss) for the year and enter that amount on the entry 

line to the left of column (a).

Report rents from other sources on line 11. Enter any 

expenses attributable to the rental income reported on line 5, 

such as interest and depreciation, on lines 13–23.

Line 6a. Net gain or (loss) from sale of assets. Enter the net 

gain or (loss) per books from all asset sales not included on 

line 10.

For assets sold and not included in Part IV, attach a schedule 

showing:

• Date acquired;

• Manner of acquisition;

• Gross sales price;

• Cost, other basis, or value at time of acquisition (if donated) 

and which of these methods was used;

• Date sold;

• To whom sold;

• Expense of sale and cost of improvements made subsequent 

to acquisition; and

• Depreciation since acquisition (if depreciable property).

Line 6b. Gross sales price for all assets on line 6a. Enter 

the gross sales price from all asset sales whose net gain or loss 

was reported on line 6a.

Line 7. Capital gain net income. Enter the capital gain net 

income from Part IV, line 2. See the Part IV instructions.

Line 8. Net short-term capital gain. Include only net 

short-term capital gain for the year (assets sold or exchanged 

that were held not more than 1 year). Don’t include net long-term 

capital gain or net loss in column (c).

Don’t include on line 8 a net gain from the sale or exchange of 

depreciable property, or land used in a trade or business 

(section 1231) and held for more than 1 year. However, include 

net loss from such property on line 23 as an Other expense.

In general, foundations may carry to line 8 the net short-term 

capital gain reported in Part IV, line 3. However, if the foundation 

had any short-term capital gain from sales of debt-financed 

property, add it to the amount reported in Part IV, line 3, to figure 

the amount to include on line 8. For information dealing with 

“debt-financed property,” see the Instructions for Form 990-T.

Only private operating foundations report their 

short-term capital gains on line 8.

Line 9. Income modifications. Include on this line:

1. Amounts received or accrued as repayments of amounts 

taken into account as qualifying distributions;

2. Amounts received or accrued from the sale or other 

disposition of property to the extent that the acquisition of the 

property was considered a qualifying distribution for any tax 

year;

TIP

Instructions for Form 990-PF (2023) 17
3. Any amount set aside for a specific project (see 

explanation in the instructions for Part XI) that wasn't necessary 

for the purposes for which it was set aside;

4. Income received from an estate, but only if the estate was 

considered terminated for income tax purposes due to a 

prolonged administration period; and

5. Amounts treated in an earlier tax year as qualifying 

distributions to:

• A nonoperating private foundation if the amounts weren't 

redistributed by the grantee organization by the close of its tax 

year following the year in which it received the funds, or

• An organization controlled by the distributing foundation or a 

disqualified person if the amounts weren't redistributed by the 

grantee organization by the close of its tax year following the 

year in which it received the funds.

Lines 10a, b, c. Gross profit 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 all inventory 

items, including those sold in the course of special events and 

activities. These inventory items are the ones the organization 

either makes to sell to others or buys for resale.

Don’t report any sales or exchanges of investments on 

line 10.

Don’t include any profit or (loss) from the sale of capital items 

such as securities, land, buildings, or equipment on line 10. 

Enter these amounts on line 6a.

Don’t include any business expenses such as salaries, taxes, 

rent, etc., on line 10. Include them on lines 13–23.

Attach a schedule showing the following items: gross sales, 

cost of goods sold, and gross profit or (loss). These items should 

be classified according to type of inventory sold (such as books, 

tapes, other educational or religious material, etc.). The totals 

from the schedule should agree with the entries on lines 10a–

10c.

In column (c), enter the gross profit or (loss) from sales of 

inventory shown on line 10c, column (a).

Line 11. Other income. Enter the total of all the foundation's 

other income for the year. Attach a schedule that gives a 

description and the amount of the income. Include all income not 

reported on lines 1 through 10c. Also, see Part XV-A, Line 11, 

later.

Include imputed interest on certain deferred payments figured 

under section 483 and any investment income not reportable on 

lines 3 through 5, including income from program-related 

investments (defined in the instructions for Part VIII-B).

Don’t include unrealized gains and losses on investments 

carried at market value. Report those as fund balance or net 

asset adjustments in Part III.

In column (b). Enter the amount of investment income 

included in line 11, column (a). Include dividends, interest, rents, 

and royalties derived from assets devoted to charitable activities, 

such as interest on student loans.

In column (c). Include all other items includible in adjusted 

net income not covered elsewhere in column (c).

Line 12. Total. Enter the total of lines 1–11 in columns (a)–(c).

In column (b). Domestic organizations should enter the total 

of lines 3–11. Tax-exempt foreign foundations should exclude the 

line 7 amount from the total.

Line 13. Compensation of officers, directors, trustees, etc. 

Enter in the columns below.

In column (a). Enter the total compensation for the year of all 

officers, directors, and trustees. If none was paid, enter zero. 

Complete line 1 of Part VII to show the compensation of officers, 

directors, trustees, and foundation managers.

In columns (b), (c), and (d). Enter the portion of the 

compensation included in column (a) that is applicable to the 

column. For example, in column (c), enter the portion of the 

compensation included in column (a) paid or incurred to produce 

or collect income included in column (c).

Line 14. Other employee salaries and wages. Enter the 

salaries and wages of all employees other than those included 

on line 13.

Employee leasing companies and professional employer 

organizations. In some cases, an exempt organization “leases” 

one or more “employees” from another company, which may be 

in the business of leasing employees. Alternatively, the 

organization may enter into an agreement with a professional 

employer organization to perform some or all of the federal 

employment tax withholding, reporting, and payment functions 

related to workers performing services for the organization. The 

organization should treat employees of an employee leasing 

company or a professional employer organization (whether or 

not certified under the Certified Professional Employer 

Organization Program (CPEO)) as the organization's own 

employees and should report the compensation and other items 

in Part IV as if the organization had paid the officers, directors, 

trustees, and key employees directly. For more information, visit 

IRS.gov/CPEO. An employee is defined as, any individual who, 

under the usual common law rules applicable in determining the 

employer-employee relationship, has the status of an employee, 

and any other individual who is treated as an employee for 

federal employment tax purposes under section 3121(d). See 

Pub. 1779 for more information.

Line 15. Contributions to employee pension plans and other benefits. Enter the employer's share of contributions the 

organization paid to qualified and nonqualified pension plans 

and the employer's share of contributions to employee benefit 

programs (such as insurance, health, and welfare programs) that 

aren't an incidental part of a pension plan. Complete the return/

report of the Form 5500 series appropriate for the organization's 

plan. See the Instructions for Form 5500 for information about 

employee welfare benefit plans required to file that form.

Also include the amount of federal, state, and local payroll 

taxes for the year, but only include those that are imposed on the 

organization as an employer. This includes the employer's share 

of social security and Medicare taxes, FUTA tax, state 

unemployment compensation tax, and other state and local 

payroll taxes. Don’t include taxes withheld from employees' 

salaries and paid over to the various governmental units (such as 

federal and state income taxes and the employee's share of 

social security and Medicare taxes).

Lines 16a, b, and c. Legal, accounting, and other professional fees. On the appropriate line(s), enter the legal, accounting, 

auditing, and other professional fees (such as fees for 

fundraising or investment services) charged by outside firms and 

individuals who aren't employees of the foundation.

Attach a schedule for lines 16a, b, and c. Show the type of 

service and expense for each. If the same person provided more 

than one of these services, include an allocation of those 

expenses.

Report any fines, penalties, or judgments imposed against 

the foundation as a result of legal proceedings on line 23.

Line 18. Taxes. Attach a schedule listing the type and amount 

of each tax reported on line 18. Don’t enter any taxes included 

on line 15.

In column (a). Enter the taxes paid (or accrued) during the 

year. Include all types of taxes recorded on the books, including 

real estate tax not reported on line 20, the tax on investment 

income, and any income tax.

18 Instructions for Form 990-PF (2023)
In column (b). Enter only those taxes included in column (a) 

related to investment income taxable under section 4940. Don’t 

include the section 4940 tax paid or incurred on net investment 

income or the section 511 tax on unrelated business income. 

Sales taxes may not be deducted separately but must be treated 

as a part of the cost of acquired property or as a reduction of the 

amount realized on disposition of the property.

In column (c). Enter only those taxes included in column (a) 

that relate to income included in column (c). Don’t include any 

excise tax paid or incurred on the net investment income (as 

shown in Part V) or any tax reported on Form 990-T.

In column (d). Don’t include any excise tax paid on 

investment income (as reported in Part V of this return or the 

equivalent part of a return for prior years) unless the organization 

is claiming status as a private operating foundation and 

completes Part XIII.

Line 19. Depreciation and depletion. 

In column (a). Enter the expense recorded in the books for 

the year.

For depreciation, attach a schedule showing:

• A description of the property,

• The date acquired,

• The cost or other basis (exclude any land),

• The depreciation allowed or allowable in prior years,

• The method of computation,

• The rate (%) or life (years), and

• The depreciation this year.

On a separate line on the schedule, show the amount of 

depreciation included in cost of goods sold and not included on 

line 19.

In columns (b) and (c). A deduction for depreciation is 

allowed only for property used in the production of income 

reported in the column, and only using the straight line method of 

figuring depreciation. A deduction for depletion is allowed but 

must be figured only using the cost depletion method.

The basis used in figuring depreciation and depletion is the 

basis determined under normal basis rules, without regard to the 

special rules for using the fair market value on December 31, 

1969, that relate only to gain or loss on dispositions for purposes 

of the tax on net investment income.

Line 20. Occupancy. Enter the amount paid or incurred for the 

use of office space or other facilities. If the space is rented or 

leased, enter the amount of rent. If the space is owned, enter the 

amount of mortgage interest, real estate taxes, and similar 

expenses, but not depreciation reportable on line 19. In either 

case, include the amount for utilities and related expenses (for 

example, heat, lights, water, power, telephone, sewer, trash 

removal, outside janitorial services, and similar services). Don’t 

include any salaries of the organization's own employees 

reportable on line 14.

Line 21. Travel, conferences, and meetings. Enter the 

expenses for officers, employees, or others during the year for 

travel, attending conferences, meetings, etc. Include 

transportation (including fares, mileage allowance, or automobile 

expenses), meals and lodging, and related costs whether paid 

on the basis of a per diem allowance or actual expenses 

incurred. Don’t include any compensation paid to those who 

participate.

In column (b). Only 50% of the expense for business meals 

paid or incurred in connection with travel, meetings, etc., relating 

to the production of investment income may be deducted in 

figuring net investment income (section 274(n)).

In column (c). Subject to the Special rule, earlier, limiting 

amounts reported in column (c) by the income generated by a 

charitable activity, enter the total amount of expenses paid or 

incurred by officers, employees, or others for travel, conferences, 

meetings, etc., related to income included in column (c).

Line 22. Printing and publications. Enter the expenses for 

printing or publishing and distributing any newsletters, 

magazines, etc. Also include the cost of subscriptions to, or 

purchases of, magazines, newspapers, etc.

Line 23. Other expenses. Enter all other expenses for the year. 

Include all expenses not reported on lines 13–22. Attach a 

schedule showing the type and amount of each expense.

If a deduction is claimed for amortization, attach a schedule 

showing:

• Description of the amortized expenses;

• Date acquired, completed, or expended;

• Amount amortized;

• Deduction for prior years;

• Amortization period (number of months);

• Current-year amortization; and

• Total amount of amortization.

In column (c). In addition to the applicable portion of 

expenses from column (a), include any net loss from the sale or 

exchange of land or depreciable property that was held for more 

than 1 year and used in a trade or business.

A deduction for amortization is allowed but only for assets 

used for the production of income reported in column (c).

Line 25. Contributions, gifts, grants paid. Don’t report on 

line 25 direct program expenditures that aren't contributions, 

gifts, or grants. These amounts should be reported on lines 13–

24.

In column (a). Enter the total of all contributions, gifts, grants, 

and similar amounts paid (or accrued) for the year. List each 

contribution, gift, grant, etc., in Part XIV, or attach a schedule of 

the items included on line 25 and list:

1. Name and address of donee;

2. Relationship of donee if related by:

a. Blood,

b. Marriage,

c. Adoption, or

d. Employment (including children of employees) to any 

disqualified person (see C. Definitions, earlier, for definitions); 

and

3. The organizational status of donee (for instance, public 

charity—an organization described in section 509(a)(1), (2), or 

(3)).

You don't have to give the name of any indigent person who 

received one or more gifts or grants from the foundation unless 

that individual is a disqualified person or one who received a 

total of more than $1,000 from the foundation during the year.

Activities should be described according to purpose and in 

greater detail than merely charitable, educational, religious, or 

scientific activities. For example, use identification such as 

payments for nursing service, for fellowships, or for assistance to 

indigent families.

Foundations may include, as a single entry on the schedule, 

the total of amounts paid as grants for which the foundation 

exercised expenditure responsibility. Attach a separate report for 

each grant.

When the fair market value of the property at the time of 

disbursement is the measure of a contribution, the schedule 

must also show:

• A description of the contributed property,

• The book value of the contributed property,

• The method used to determine the book value,

• The method used to determine the fair market value, and

• The date of the gift.

Instructions for Form 990-PF (2023) 19
The difference between fair market value and book value 

should be shown in the books of account and as a net 

asset adjustment in Part III.

In column (d). Enter on line 25 all contributions, gifts, and 

grants the foundation paid during the year with the following 

exceptions.

• Don’t include contributions to organizations controlled by the 

foundation or by one or more disqualified persons, or 

contributions to nonoperating private foundations, unless the 

donee organization is exempt from tax under section 501(c)(3) 

and redistributes the contributions, and the foundation maintains 

sufficient evidence of redistribution, in accordance with section 

4942(g)(3) and Regulations section 53.4942(a)-3(c).

• Don’t include contributions paid from a nonoperating private 

foundation to a Type III supporting organization, as defined 

under section 4943(f)(5), that isn't a functionally integrated Type 

III supporting organization, as defined under section 4943(f)(5)

(B). See Regulations section 1.509(a)-4(i).

• Don’t include contributions paid from a nonoperating private 

foundation to any supporting organization if a disqualified person 

of the private foundation controls the supporting organization or 

any of its supported organizations. See Regulations section 

53.4942(a)-3(a)(3).

• Don’t reduce the amount of grants paid in the current year by 

the amount of grants paid in a prior year returned or recovered in 

the current year. Report those repayments on Part I, line 9, 

column (c), and in Part X, line 4.

• Don’t include any payments of set-asides (see the instructions 

for Part XI, line 3) taken into account as qualifying distributions in 

the current year or any prior year. All set-asides are included in 

qualifying distributions (Part XI, line 3) in the year of the 

set-aside, regardless of when paid.

• Don’t include current-year write-offs of prior years' 

program-related investments. All program-related investments 

are included in qualifying distributions (Part XI, line 1b) in the 

year the investment is made.

• Don’t include any payments that aren't qualifying distributions, 

as defined in section 4942(g)(1).

Net Amounts

Line 27a. Excess of revenue over expenses and disbursements. Subtract line 26, column (a), from line 12, column (a), 

and enter the result. Generally, the amount shown in column (a) 

on this line is also the amount by which net assets (or fund 

balances) have increased or decreased for the year. See Part III. 

Analysis of Changes in Net Assets or Fund Balances, later.

Line 27b. Net investment income. Domestic organizations 

should subtract line 26, column (b), from line 12, column (b), and 

enter the result. Exempt foreign organizations should enter the 

amount shown on line 12, column (b). However, if the 

organization is a domestic organization and line 26, column (b), 

is more than line 12, column (b) (such as when expenses exceed 

income), enter zero (not a negative amount).

Line 27c. Adjusted net income. Subtract line 26, column (c), 

from line 12, column (c), and enter the result.

Part II. Balance Sheets

For column (b), show the book value at the end of the year. For 

column (c), show the fair market value at the end of the year. 

Attached schedules must show the end-of-year value for each 

asset listed in columns (b) and (c).

Foundations whose books of account included total assets of 

$5,000 or more at any time during the year must complete all of 

columns (a), (b), and (c).

TIP

Foundations with less than $5,000 of total assets per books at 

all times during the year must complete all of columns (a) and (b) 

and only line 16 of column (c).

Line 1. Cash—Non-interest-bearing. Enter the amount of 

cash on deposit in checking accounts, deposits in transit, 

change funds, petty cash funds, and any other 

non-interest-bearing account. Don’t include advances to 

employees or officers or refundable deposits paid to suppliers or 

others.

Line 2. Savings and temporary cash investments. Enter the 

total of cash in savings or other interest-bearing accounts and 

temporary cash investments, such as money market funds, 

commercial paper, certificates of deposit, and U.S. Treasury bills 

or other governmental obligations that mature in less than 1 year.

Line 3. Accounts receivable. On the dashed lines to the left of 

column (a), enter the year-end figures for total accounts 

receivable and allowance for doubtful accounts from the sale of 

goods and/or the performance of services. In columns (a), (b), 

and (c), enter net amounts (total accounts receivable reduced by 

the corresponding allowance for doubtful accounts). Claims 

against vendors or refundable deposits with suppliers or others 

may be reported here if not significant in amount. (Otherwise, 

report them on line 15.) Any receivables due from officers, 

directors, trustees, foundation managers, or other disqualified 

persons must be reported on line 6. Report receivables 

(including loans and advances) due from other employees on 

line 15.

Line 4. Pledges receivable. On the dashed lines to the left of 

column (a), enter the year-end figures for total pledges 

receivable and allowance for doubtful accounts (pledges 

estimated to be uncollectible). In columns (a), (b), and (c), enter 

net amounts (total pledges receivable reduced by the 

corresponding allowance for doubtful accounts).

Line 5. Grants receivable. Enter the total grants receivable 

from governmental agencies, foundations, and other 

organizations as of the beginning and end of the year.

Line 6. Receivables due from officers, directors, trustees, 

and other disqualified persons. Enter here (and on an 

attached schedule described below) all receivables due from 

officers, directors, trustees, foundation managers, and other 

disqualified persons and all secured and unsecured loans 

(including advances) to such persons. Don’t adjust the amounts 

reported by any amount(s) estimated to be uncollectible. 

“Disqualified person” is defined in C. Definitions, earlier.

Attached schedules. 1. On the required schedule, report 

each loan separately, even if more than one loan was made to 

the same person or the same terms apply to all loans made. 

Salary advances and other advances for the personal use and 

benefit of the recipient and receivables subject to special terms 

or arising from transactions not functionally related to the 

foundation's charitable purposes must be reported as separate 

loans for each officer, director, etc.

2. Receivables that are subject to the same terms and 

conditions (including credit limits and rate of interest) as 

receivables due from the general public from an activity 

functionally related to the foundation's charitable purposes may 

be reported as a single total for all the officers, directors, etc. 

Travel advances made for official business of the organization 

may also be reported as a single total.

For each outstanding loan or other receivable that must be 

reported separately, the attached schedule should show the 

following information (preferably using columns).

1. Borrower's name and title.

2. Original amount.

3. Balance due.

20 Instructions for Form 990-PF (2023)
4. Date of note.

5. Maturity date.

6. Repayment terms.

7. Interest rate.

8. Security provided by the borrower.

9. Purpose of the loan.

10. Description and fair market value of the consideration 

furnished by the lender (for example, cash—$1,000; or 100 

shares of XYZ, Inc., common stock— $9,000).

The above detail isn't required for receivables or travel advances 

that may be reported as a single total (see the discussion of 

receivables in (2) above); however, report and identify those 

totals separately on the attachment.

Line 7. Other notes and loans receivable. On the dashed 

lines to the left of column (a), enter the combined total year-end 

figures for other notes receivable and loans receivable and the 

allowance for doubtful accounts.

Notes receivable. In columns (a), (b), and (c), enter the 

amount of all notes receivable not listed on line 6 and not 

acquired as investments. Attach a schedule similar to the one for 

line 6. The schedule should also identify the relationship of the 

borrower to any officer, director, trustee, foundation manager, or 

other disqualified person.

For a note receivable from any section 501(c)(3) organization, 

list only the name of the borrower and the balance due on the 

required schedule.

Loans receivable. In columns (a), (b), and (c), enter the 

gross amount of loans receivable, minus the allowance for 

doubtful accounts, from the normal activities of the filing 

organization (such as scholarship loans). An itemized list of 

these loans isn't required, but attach a schedule showing the 

total amount of each type of outstanding loan. Report loans to 

officers, directors, trustees, foundation managers, or other 

disqualified persons on line 6 and loans to other employees on 

line 15.

Line 8. Inventories for sale or use. Enter the amount of 

materials, goods, and supplies purchased or manufactured by 

the organization and held for sale or use in some future period.

Line 9. Prepaid expenses and deferred charges. Enter the 

amount of short-term and long-term prepayments of expenses 

attributable to one or more future accounting periods. Examples 

include prepayments of rent, insurance, and pension costs, and 

expenses incurred in connection with a solicitation campaign to 

be conducted in a future accounting period.

Lines 10a, b, and c. Investments— government obligations, 

corporate stock and bonds. Enter the book value (which may 

be market value) of these investments.

Attach a schedule that lists each security held at the end of 

the year and shows whether the security is listed at cost 

(including the value recorded at the time of receipt in the case of 

donated securities) or end-of-year market value. Don’t include 

amounts shown on line 2. Governmental obligations reported on 

line 10a are those that mature in 1 year or more. Debt securities 

of the U.S. Government may be reported as a single total rather 

than itemized. Obligations of state and municipal governments 

may also be reported as a lump-sum total. Don’t combine U.S. 

Government obligations with state and municipal obligations on 

this schedule.

Line 11. Investments—land, buildings, and equipment. On 

the first dashed line to the left of column (a), enter the year-end 

book value (excluding accumulated depreciation), and on the 

second dashed line, enter the accumulated depreciation of all 

land, buildings, and equipment held for investment purposes, 

such as rental properties. In columns (a) and (b), enter the book 

value of all land, buildings, and equipment held for investment 

less accumulated depreciation. In column (c), enter the fair 

market value of these assets. Attach a schedule listing these 

investment fixed assets held at the end of the year and showing, 

for each item or category listed, the original cost or other basis, 

accumulated depreciation, and ending book value.

Line 12. Investments—mortgage loans. Enter the amount of 

mortgage loans receivable held as investments but don't include 

program-related investments (see the instructions for line 15).

Line 13. Investments—other. Enter the amount of all other 

investment holdings not reported on lines 10 through 12. Attach 

a schedule listing and describing each of these investments held 

at the end of the year. Show the book value for each and indicate 

whether the investment is listed at cost or end-of-year market 

value. Don’t include program-related investments (see the 

instructions for line 15).

Line 14. Land, buildings, and equipment. On the first dashed 

line to the left of column (a), enter the year-end book value 

(excluding accumulated depreciation), and on the second 

dashed line, enter the accumulated depreciation of all land, 

buildings, and equipment owned by the organization and not 

held for investment. In columns (a) and (b), enter the book value 

of all land, buildings, and equipment not held for investment less 

accumulated depreciation. In column (c), enter the fair market 

value of these assets. Include any property, plant, and 

equipment owned and used by the organization to conduct its 

charitable activities. Attach a schedule listing these fixed assets 

held at the end of the year and showing the original cost or other 

basis, accumulated depreciation, and ending book value of each 

item or category listed.

Line 15. Other assets. List and show the book value of each 

category of assets not reportable on lines 1 through 14. Attach a 

separate schedule if more space is needed.

One type of asset reportable on line 15 is program-related 

investments. These are investments made primarily to 

accomplish a charitable purpose of the filing organization with no 

significant purpose to produce income.

Line 16. Total assets. All filers must complete line 16 of 

columns (a), (b), and (c). These entries represent the totals of 

lines 1 through 15 of each column. However, foundations that 

have assets of less than $5,000 per books at all times during the 

year need not complete lines 1 through 15 of column (c).

The column (c) amount is also entered on the entry 

space for Item I in the Heading section on page 1.

Line 17. Accounts payable and accrued expenses. Enter 

the total of accounts payable to suppliers and others and 

accrued expenses, such as salaries payable, accrued payroll 

taxes, and interest payable.

Line 18. Grants payable. Enter the unpaid portion of grants 

and awards the organization has made a commitment to pay 

other organizations or individuals, whether or not the 

commitments have been communicated to the grantees.

Line 19. Deferred revenue. Include revenue that the 

organization has received but not yet earned as of the balance 

sheet date under its method of accounting.

Line 20. Loans from officers, directors, trustees, and other 

disqualified persons. Enter the unpaid balance of loans 

received from officers, directors, trustees, and other disqualified 

persons. For loans outstanding at the end of the year, attach a 

schedule that shows (for each loan) the name and title of the 

lender and the information listed in items 2 through 10 of the 

instructions for line 6, earlier.

TIP

Instructions for Form 990-PF (2023) 21
Line 21. Mortgages and other notes payable. Enter the 

amount of mortgages and other notes payable at the beginning 

and end of the year. Attach a schedule showing, as of the end of 

the year, the total amount of all mortgages payable and, for each 

nonmortgage note payable, the name of the lender and the other 

information specified in items 2 through 10 of the instructions for 

line 6, earlier. The schedule should also identify the relationship 

of the lender to any officer, director, trustee, foundation manager, 

or other disqualified person.

Line 22. Other liabilities. List and show the amount of each 

liability not reportable on lines 17 through 21. Attach a separate 

schedule if more space is needed.

Lines 24 Through 30. Net Assets or Fund 

Balances

FASB Accounting Standards Codification 958, Not-for-Profit Entities (ASC 958). ASC 958 provides standards for external 

financial statements certified by an independent accountant for 

certain types of nonprofit organizations.

While some states may require reporting according to ASC 

958, the IRS does not. However, a Form 990-PF return prepared 

according to ASC 958 will be acceptable to the IRS.

Foundations that follow ASC 958. Check the box above 

line 24, and complete lines 24 and 25 and lines 29 and 30. 

Classify and report net assets in two groups in Part II (net assets 

without donor restrictions and net assets with donor restrictions) 

based on the existence or absence of donor-imposed 

restrictions and the nature of those restrictions. Enter the sum of 

the two classes of net assets on line 29. On line 30, add the 

amounts on lines 23 and 29 to show total liabilities and net 

assets. The amount on line 16 must equal line 30.

Effective for reporting years ending after December 15, 

2017, ASC 958-205, Not-for-Profit 

Entities—Presentation of Financial Statements (ASC 

958), addresses reporting of donor-restricted endowments and 

board-designated (quasi) endowments. Further, many states 

have enacted the Uniform Prudent Management of Institutional 

Funds Act (UPMIFA). If the organization is subject to the UPMIFA 

or ASC 958, it may affect the amounts reported on lines 24 and 

25.

Line 24. Net assets without donor restrictions. Enter the 

balances per books of the net assets without donor restrictions 

class of net assets. For years ending after December 15, 2017, 

ASC 958 refers to “unrestricted net assets” as “net assets 

without donor restrictions.” Net assets without donor restrictions 

are neither permanently restricted nor temporarily restricted by 

donor-imposed stipulations. All funds without donor-imposed 

restrictions must be classified as net assets without donor 

restrictions, regardless of the existence of any board 

designations or appropriations.

Line 25. Net assets with donor restrictions. This line can be 

used to show the balance per books of net assets with donorimposed restrictions that may require resources to be used after 

a specified date (time restrictions), or used for a specified 

purpose (purpose restrictions), or both.

Foundations that don’t follow ASC 958. Check the box above 

line 26 and report account balances on lines 26 through 30. 

Report capital stock, trust principal, or current funds on line 26. 

Report paid-in capital surplus or land, building, or equipment 

funds on line 27. Report retained earnings, endowment, 

accumulated income, or other funds on line 28.

Line 26. Capital stock, trust principal, or current funds. For 

corporations, enter the balance per books for capital stock 

accounts. Show par or stated value (or for stock with no par or 

CAUTION

!

stated value, total amount received upon issuance) of all classes 

of stock issued and, as yet, uncanceled. For trusts, enter the 

amount in the trust principal or corpus account. For foundations 

continuing to use the fund method of accounting, enter the fund 

balances for the foundation's current restricted and unrestricted 

funds.

Line 27. Paid-in or capital surplus, or land, building, and 

equipment fund. Enter the balance per books for all paid-in 

capital in excess of par or stated value for all stock issued and 

uncanceled. If stockholders or others gave donations that the 

organization records as paid-in capital, include them here. 

Report any current-year donations you included on line 27 in Part 

I, line 1. The fund balance for the land, building, and equipment 

fund would be entered here.

Line 28. Retained earnings, accumulated income, endowment, or other funds. For corporations, enter the balance in 

the retained earnings, or similar account, minus the cost of any 

corporate treasury stock. For trusts, enter the balance per books 

in the accumulated income or similar account. For foundations 

using fund accounting, enter the total of the fund balances for 

the permanent and term endowment funds as well as balances 

of any other funds not reported on lines 26 and 27.

Line 29. Total net assets or fund balances. For foundations 

that follow FASB ASC 958, enter the total of lines 24 and 25. For 

all other foundations, enter the total of lines 26 through 28. Enter 

the beginning-of-year figure in Part III, line 1. The end-of-year 

figure in column (b) must agree with the figure in Part III, line 6.

Line 30. Total liabilities and net assets/fund balances. 

Enter the total of lines 23 and 29. This amount must equal the 

amount for total assets reported on line 16 for both the beginning 

and end of the year.

Part III. Analysis of Changes in Net 

Assets or Fund Balances

Generally, the excess of revenue over expenses, or vice versa, 

accounts for the difference between the net assets at the 

beginning and end of the year.

On Part III, line 2, re-enter the figure from Part I, line 27(a), 

column (a).

On lines 3 and 5, list any changes in net assets that weren't 

caused by the receipts or expenses shown in Part I, column (a). 

For example, if a foundation follows FASB ASC 958 (formerly 

“SFAS 115”) (ASC 320-10-35) and shows an asset in the ending 

balance sheet at a higher value than in the beginning balance 

sheet because of an increased market value (after a larger 

decrease in a prior year), include the increase in Part III, line 3.

If the organization uses a stepped-up basis to determine 

gains on sales of assets included in Part I, column (a), then 

include the amount of step-up in basis in Part III. If you entered a 

contribution, gift, or grant of property valued at fair market value 

in Part I, line 25, column (a), the difference between fair market 

value and book value should be shown in the books of account 

and as a net asset adjustment in Part III.

Part IV. Capital Gains and Losses for 

Tax on Investment Income

Use Part IV to figure the amount of net capital gain to report on 

lines 7 and 8 of Part I.

Part IV doesn't apply to foreign organizations.

Nonoperating private foundations may not have to figure their 

short-term capital gain or loss on line 3. See Nonoperating 

private foundations, earlier.

Reportable gains and losses. Capital gains or losses include 

gains or losses from the sale or other disposition of property that:

22 Instructions for Form 990-PF (2023)
• Is used for a charitable purpose (for sales or other 

dispositions in tax years beginning after August 17, 2006),

• Is held for investment, or

• Is used in the production of income. Don't include the gain or 

loss that is included in figuring the foundation's unrelated 

business taxable income.

However, don't include gains or losses for any portion of 

property if:

• The property was used for 1 year or more in furthering the 

foundation's exempt purpose or function; and

• Immediately following the use, is exchanged for property of 

like kind that is to be used primarily in furthering the foundation's 

exempt purpose or function. Rules similar to the rules of section 

1031 relating to exchange of property held for productive use or 

investment apply. See Gross investment income, earlier.

Capital gains and losses may arise from the deemed sale of 

section 1256 contracts (marked to market).

Basis. The basis for determining gain from the sale or other 

disposition of property is the larger of:

• The fair market value of the property on December 31, 1969, 

plus or minus all adjustments after December 31, 1969, and 

before the date of disposition, if the foundation held the property 

on that date and continuously after that date until disposition; or

• The basis of the property on the date of disposition under 

normal basis rules (actual basis). See sections 1011–1016.

To figure a loss, basis on the date of disposition is determined 

under normal basis rules.

The rules that generally apply to property dispositions 

reported in this part are:

• Section 1011, adjusted basis for determining gain or loss;

• Section 1012, basis of property-cost;

• Section 1014, basis of property acquired from a decedent;

• Section 1015, basis of property acquired by gifts and transfers 

in trust; and

• Section 1016, adjustments to basis.

Section 1015 provides in most circumstances for a 

carryover basis of property acquired by gift, that is, the 

basis in the hands of the donor carries over to the 

foundation. Section 1014 generally provides for a stepped-up 

basis of property acquired by bequest (other than an item of 

income in respect of a decedent), that is, the fair market value of 

the property at the decedent's death.

Losses. If the disposition of investment property results in a 

loss, that loss may be subtracted from capital gains realized from 

the disposition of property during the same tax year but only to 

the extent of the gains. If losses are more than gains, the excess 

may not be subtracted from gross investment income nor may 

the losses be carried back or forward to other tax years.

Reporting Transactions in Part IV

Publicly traded securities. For sales of publicly traded 

securities through a broker, enter the description “publicly traded 

securities” on line 1, column (a). Leave columns (b), (c), and (d) 

blank. Total the gross sales price, the cost or other basis, and the 

expense of sale on all such securities sold. Report these 

lump-sum figures in columns (e) through (l), as appropriate. You 

must maintain detailed records of each transaction in your books 

and records.

Publicly traded securities are securities that are listed and 

regularly traded on an over-the-counter market or an established 

exchange in which market quotations are published or otherwise 

readily available. Securities include:

• Common and preferred stock,

• Bonds (including governmental obligations), and

• Mutual fund shares.

TIP

Other gains and losses. For sales of anything other than 

publicly traded securities sold, each transaction must be listed 

and reported separately, completing all appropriate columns in 

Part IV.

Part V. Excise Tax Based on 

Investment Income (Section 4940(a), 

4940(b), or 4948)

General Rules

Domestic exempt private foundations. These foundations 

are subject to a 1.39% tax on net investment income under 

section 4940(a). However, certain exempt operating foundations 

described in section 4940(d)(2) may not owe any tax.

Exception. The section 4940 tax doesn't apply to an 

organization making an election under section 41(e)(6)(D). Enter 

“N/A” on line 1 in Part V.

Domestic taxable private foundations and section 4947(a)

(1) nonexempt charitable trusts. These organizations are 

subject to a modified 1.39% tax on net investment income under 

section 4940(b). However, they must first figure the tax under 

section 4940(a) as if that tax applied to them.

Foreign organizations. Under section 4948, exempt foreign 

private foundations are subject to a 4% tax on their gross 

investment income derived from U.S. sources.

Under section 871(m), added by the Hiring Incentives to 

Restore Employment Act (HIRE), a “dividend equivalent” 

is treated as a dividend from U.S. sources for certain 

purposes, including U.S. withholding tax rules applicable to 

foreign organizations. See section 871(m) for more information.

Taxable foreign private foundations that filed Form 1040-NR, 

U.S. Nonresident Alien Income Tax Return, or Form 1120-F, U.S. 

Income Tax Return of a Foreign Corporation should not complete 

Part V.

Estimated tax. Domestic exempt and taxable private 

foundations and section 4947(a)(1) nonexempt charitable trusts 

may have to make estimated tax payments for the excise tax 

based on investment income. See O. Figuring and Paying 

Estimated Tax, earlier, for more information.

Tax Computation

Line 1a only applies to domestic exempt operating 

foundations described in section 4940(d)(2) that have a 

ruling or determination letter from the IRS establishing 

exempt operating foundation status. If your organization doesn't 

have this letter, skip line 1a.

Line 1a. A domestic exempt private foundation that qualifies as 

an exempt operating foundation under section 4940(d)(2) isn't 

liable for any tax on net investment income on this return.

If your organization qualifies, check the box and enter the 

date of the ruling or determination letter on line 1a and enter 

“N/A” on line 1. Leave the rest of Part V blank. For the first year, 

the organization must attach a copy of the ruling or determination 

letter establishing exempt operating foundation status. As long 

as the organization retains this status, enter the date of the ruling 

or determination letter in the space on line 1a. If the organization 

no longer qualifies under section 4940(d)(2), leave the date line 

blank and figure the section 4940 tax in the normal manner.

Qualification. To qualify as an exempt operating foundation 

for a tax year, an organization must meet the following 

requirements of section 4940(d)(2).

• It is an operating foundation described in section 4942(j)(3).

CAUTION

!

CAUTION

!

Instructions for Form 990-PF (2023) 23
• It has been publicly supported for at least 10 tax years or was 

a private operating foundation on January 1, 1983, or for its last 

tax year ending before January 1, 1983.

• Its governing body, at all times during the tax year, consists of 

individuals, at least 75% of whom aren't disqualified individuals 

(as defined in section 4940(d)(3)), and is broadly representative 

of the general public.

• It has no officer who was a disqualified individual at any time 

during the tax year.

Line 1c. Exempt foreign organizations shouldn't include net 

capital gain income when figuring the excise tax due under 

section 4948(a).

Line 2. Section 511 tax. Under section 4940(b), a domestic 

section 4947(a)(1) nonexempt charitable trust or taxable private 

foundation must add to the tax figured under section 4940(a) (on 

line 1) the tax which would have been imposed under section 

511 for the tax year if it had been exempt from tax under section 

501(a). If the domestic section 4947(a)(1) nonexempt charitable 

trust or taxable private foundation has unrelated business 

taxable income that would have been subject to the tax imposed 

by section 511, the computation of tax must be shown in an 

attachment. Form 990-T may be used as the attachment. All 

other filers, enter zero.

Line 4. Subtitle A (income) tax. Domestic section 4947(a)(1) 

nonexempt charitable trusts and taxable private foundations, 

enter the amount of subtitle A (income) tax for the year reported 

on Form 1041 or Form 1120. All other filers, enter zero.

Line 5. Tax based on investment income. Subtract line 4 

from line 3 and enter the difference (but not less than zero) on 

line 5. Any overpayment entered on line 10 that is the result of a 

negative amount shown on line 5 won't be refunded. Unless the 

organization is a domestic section 4947(a)(1) nonexempt 

charitable trust or taxable private foundation, the amount on 

line 5 is the same as on line 1.

Line 6a. Enter the amount of 2023 estimated tax payments and 

any 2022 overpayment of taxes that the organization specified 

on its 2022 return to be credited toward payment of 2023 

estimated taxes.

Line 6a applies only to domestic foundations. 

Trust payments treated as beneficiary payments. A trust 

may treat any part of estimated taxes it paid as taxes paid by the 

beneficiary. If the filing organization was a beneficiary that 

received the benefit of such a payment from a trust, include the 

amount on line 6a of Part V and write, “Includes section 643(g) 

payment.” See section 643(g) for more information about 

estimated tax payments treated as paid by a beneficiary.

Line 6b. Exempt foreign foundations must enter the amount of 

tax withheld at the source. Attach Form 1042-S, Foreign 

Person's U.S. Source Income Subject to Withholding, or other 

form that verifies the withheld tax reported on line 6b (Form 

8288-A, Statement of Withholding on Dispositions by Foreign 

Persons of U.S. Real Property Interests, or Form 8805, Foreign 

Partner's Information Statement of Section 1446 Withholding 

Tax).

Line 6d. Enter the amount of any backup withholding 

erroneously withheld. Recipients of interest or dividend 

payments must generally certify their correct taxpayer 

identification number to the bank or other payer on Form W-9, 

Request for Taxpayer Identification Number and Certification. If 

the payer doesn't get this information, it must withhold part of the 

payments as “backup withholding.” If the organization files Form 

990-PF and was subject to erroneous backup withholding 

because the payer didn't realize the payee was an exempt 

CAUTION

!

organization and not subject to this withholding, the organization 

can claim credit for the amount withheld.

Don't claim erroneous backup withholding on line 6d if 

you claim it on Form 990-T.

Line 8. Penalty. Enter any penalty for underpayment of 

estimated tax shown on Form 2220.

Line 9. Tax due. Domestic foundations should see P. Tax 

Payment Methods for Domestic Private Foundations, earlier.

Amended return. If you are amending Part V, be sure to 

combine any tax due that was paid with the original return (or 

any overpayment credited or refunded) in the total for line 7. On 

the dotted line to the left of the line 7 entry space, write “Tax Paid 

w/ O.R.” and the amount paid. If you had an overpayment, write 

“O.R. Overpayment” and the amount credited or refunded in 

brackets.

If you file more than one amended return, attach a schedule 

listing the tax due amounts that were paid and overpayment 

amounts that were credited or refunded. Write “See Attachment” 

on the dotted line and enter the net amount in the entry space for 

line 7.

Part VI-A. Statements Regarding 

Activities

Each question in this section must be answered “Yes,” “No,” or 

“N/A” (not applicable).

Line 1. “Political purposes” include, but aren't limited to, directly 

or indirectly accepting contributions or making payments to 

influence the selection, nomination, election, or appointment of 

any individual to any federal, state, or local public office or office 

in a political organization, or the election of Presidential or Vice 

Presidential electors, whether or not the individual or electors are 

actually selected, nominated, elected, or appointed.

Line 3. A “conformed copy” of an organizational document is 

one that agrees with the original document and all its 

amendments. If copies aren't signed, attach a written declaration 

signed by an officer authorized to sign for the organization, 

certifying that they are complete and accurate copies of the 

original documents.

Note. If you are filing electronically, send a conformed copy of 

the changes to the IRS at the address listed in U. Section 507(b)

(1)(B) Termination Notice and Filing Requirements, earlier.

Line 4a. See Pub. 598, Tax on Unrelated Business Income of 

Exempt Organizations, for a description of unrelated business 

income and Form 990-T filing requirements for foundations 

having such income.

Line 6. For a private foundation to be exempt from income tax, 

its governing instrument must include provisions that require it to 

act or refrain from acting so as not to engage in an act of 

self-dealing (section 4941) or subject the foundation to the taxes 

imposed by sections 4942 (failure to distribute income), 4943 

(excess business holdings), 4944 (investments that jeopardize 

charitable purpose), and 4945 (taxable expenditures). A private 

foundation may satisfy these section 508(e) requirements either 

by express language in its governing instrument or by application 

of state law that imposes the above requirements on the 

foundation or treats these requirements as being contained in 

the governing instrument. If an organization claims it satisfies the 

requirements of section 508(e) by operation of state law, the 

provisions of state law must effectively impose the section 

508(e) requirements on the organization. See Rev. Rul. 75-38, 

1975-1 C.B. 161, for a list of states with legislation that satisfies 

the requirements of section 508(e).

CAUTION

!

24 Instructions for Form 990-PF (2023)
However, if the state law doesn't apply to a governing 

instrument that contains mandatory directions conflicting with 

any of its requirements and the organization has such mandatory 

directions in its governing instrument, then the organization 

hasn't satisfied the requirements of section 508(e) by the 

operation of that legislation.

Line 6 doesn't apply to foreign foundations described in 

section 4948(b).

Line 8a. In the space provided, list all states:

1. To which the organization reports in any way about its 

organization, assets, or activities; and

2. With which the organization has registered (or which it 

has otherwise notified in any manner) that it intends to be, or is, 

a charitable organization or that it is, or intends to be, a holder of 

property devoted to a charitable purpose.

Attach a separate list if you need more space.

Line 8 doesn't apply to foreign foundations described in 

section 4948(b).

Line 8b. If the organization hasn't furnished a copy of its Form 

990-PF to the Attorney General (or the person designated) of 

each state required to be listed in the response to line 8a, then 

explain in an attached statement why not. If the Attorney General 

(or the person designated) won't accept such filings, then so 

state.

Line 9. If the organization claims status as a private operating 

foundation for 2023 and, in fact, meets the private operating 

foundation requirements for that year (as reflected in Part XIII), 

any excess distributions carryover from 2022 or prior years may 

not be carried over to 2023 or any year after 2023 even if it 

doesn't meet the private operating foundation requirements. See 

Part XII. Undistributed Income, later.

Line 10. Substantial contributors. If you answer “Yes,” attach 

a schedule listing the names and addresses of all persons who 

became substantial contributors during the year.

The term “substantial contributor” means any person whose 

contributions or bequests, during the current tax year and prior 

tax years, total more than $5,000 and are more than 2% of the 

total contributions and bequests received by the foundation from 

its creation through the close of its tax year. An individual is 

treated as making all contributions and bequests made by the 

individual's spouse (section 507(d)(2)(B)(iii)). In the case of a 

trust, the term “substantial contributor” also means the creator of 

the trust (section 507(d)(2)(A)).

The term “person” includes individuals, trusts, estates, 

partnerships, associations, corporations, and other exempt 

organizations.

Each contribution or bequest must be valued at fair market 

value on the date it was received.

Any person who is a substantial contributor on any date will 

remain a substantial contributor for all later periods.

However, a person will cease to be a substantial contributor 

with respect to any private foundation if:

1. The person, and all related persons, made no 

contributions to the foundation during the 10-year period ending 

with the close of the tax year;

2. The person, or any related person, was never the 

foundation's manager during this 10-year period; and

3. The aggregate contributions made by the person, and 

related persons, are determined by the IRS to be insignificant 

compared to the aggregate amount of contributions to the 

foundation by any other person and the appreciated value of 

contributions held by the foundation.

The term “related person” includes any other person who 

would be a disqualified person because of a relationship with the 

substantial contributor (section 4946). When the substantial 

contributor is a corporation, the term also includes any officer or 

director of the corporation. The term “substantial contributor” 

doesn't include public charities (organizations described in 

section 509(a)(1), (2), or (3)).

A foreign foundation described in section 4948(b) should 

report only substantial contributors that are U.S. citizens.

Line 11. Controlled entities. Answer “Yes” if at any time during 

the tax year the foundation owned a controlled entity. A 

controlled entity is an entity in which the foundation owns more 

than 50% of the:

1. Stock (by vote or value) in a corporation,

2. Interest (of profit or capital) in a partnership, or

3. Beneficial interest of any other entity.

The foundation must apply section 318 in determining its 

ownership of stock in a corporation and use similar principles in 

determining its ownership interests in other entities.

Attached schedule of controlled entities. If at any time 

during the tax year the foundation was the controlling 

organization of a controlled entity under section 512(b)(13), 

attach a schedule listing the name, address, and EIN of each 

controlled entity and stating whether the controlled entity is an 

excess business holding.

Attached schedule for transfers to controlled entities. If at 

any time during the tax year, the foundation made any loans or 

transfers to a corporation, partnership, or other entity, which it 

controlled within the meaning of section 512(b)(13), attach a 

schedule using the format provided in the sample schedule, 

Line 11—Example A Statement of Information Regarding 

Transfers to a Controlled Entity, later. In column (c), describe 

each loan or transfer. In column (d), enter the amount for each 

loan or transfer to each controlled entity.

Attached schedule for transfers from controlled entities. If 

at any time during the tax year, the foundation received any 

transfers of funds or payments from a controlled entity within the 

meaning of section 512(b)(13), attach a schedule using the 

format provided in the sample schedule, Line 11—Example B 

Statement of Information Regarding Transfers From a Controlled 

Entity, later. In column (c), describe each transfer or payment 

received, including payment of interest, annuities, royalties, 

rents, dividends, fees or other payments for services, 

contributions to capital, and loans. In column (d), enter the 

amount of each loan or transfer from each controlled entity.

Note. For both schedules, if additional space is needed, make a 

copy of the schedule, and enter one total amount on the first 

page of the schedule.

Line 12. Distribution to a donor-advised fund. If a 

distribution was made from the foundation to a donor-advised 

fund over which the foundation or a disqualified person had 

advisory privileges, then in an attachment state whether the 

foundation treated any distribution to a donor-advised fund as a 

qualifying distribution, and explain how the distributions will be 

used to accomplish a purpose described in section 170(c)(2)(B).

Line 13. Public inspection requirements and website address. All domestic private foundations (including section 

4947(a)(1) nonexempt charitable trusts treated as private 

foundations) are subject to the public inspection requirements. 

See Q. Public Inspection Requirements, earlier, for information 

on making the foundation's annual returns and exemption 

application available for public inspection.

Enter the foundation's website address if the foundation has a 

website. Otherwise, enter “N/A.”

Instructions for Form 990-PF (2023) 25
Line 15. Section 4947(a)(1) trusts. Section 4947(a)(1) 

nonexempt charitable trusts that file Form 990-PF instead of 

Form 1041 must complete this line. The trust should include 

exempt-interest dividends received from a mutual fund or other 

regulated investment company as well as tax-exempt interest 

received directly.

Line 16. Foreign accounts. Answer “Yes” if either (1) or (2) 

below applies.

1. At any time during the calendar year ending with or within 

the foundation's tax year, the foundation had an interest in, or 

signature or other authority over, a financial account in a foreign 

country (such as a bank account, securities account, or other 

financial account); and

a. The combined value of all such accounts was more than 

$10,000 at any time during the calendar year; and

b. The accounts weren't with a U.S. military banking facility 

operated by a U.S. financial institution.

2. The foundation owns more than 50% of the stock in any 

corporation that would answer “Yes” to item 1 above.

If “Yes,” electronically file FinCEN Form 114, Report of Foreign 

Bank and Financial Accounts (FBAR), with the Department of 

the Treasury using the FinCEN's BSA E-Filing System. Because 

FinCEN Form 114 isn't a tax form, don't file it with Form 990-PF.

Go to www.fincen.gov for more information.

If you are required to file FinCEN Form 114 but don't do 

so, you may have to pay a penalty of up to $10,000 

(more in some cases).

Enter the name of each foreign country in which a foreign 

account described on line 16 is located.

CAUTION

!

26 Instructions for Form 990-PF (2023)
Line 11—Example A

Statement of Information Regarding Transfers to a Controlled Entity

(A)

Name and address of each controlled entity

(B)

Employer 

identification 

number

(C)

Description of transfer

(D)

Amount of 

transfer

a

b

c

d

e

Total ................................................................................

Line 11—Example B

Statement of Information Regarding Transfers From a Controlled Entity

(A)

Name and address of each controlled entity

(B)

Employer 

identification 

number

(C)

Description of transfer

(D)

Amount of 

transfer

a

b

c

d

e

Total ................................................................................

Instructions for Form 990-PF (2023) 27
Part VI-B. Statements Regarding 

Activities for Which Form 4720 May 

Be Required

The purpose of these questions is to determine whether there is 

any initial excise tax due under sections 4941–4945, 170(f)(10), 

4960, and 4965. If the answer is “Yes” to the question on line 1b, 

1c, 2b, 3b, 4a, 4b, 5b, 6b, 7b, or 8, complete and file Form 4720 

unless an exception applies. Foundations described in section 

4948(b) must complete Part VI-B (except line 2) and file Form 

4720, but chapter 42 taxes don't apply to such foundations 

(except section 4948). Organizations in a 60-month termination 

under section 507(b)(1)(B) must complete this part but might not 

be liable for private foundation excise taxes—see U. Section 

507(b)(1)(B) Termination Notice and Filing Requirements and V. 

Payment of Section 4940 Tax During Section 507(b)(1)(B) 

Termination, earlier.

Line 1. Self-dealing. The activities listed in lines 1a(1)–(6) are 

considered self-dealing under section 4941 unless one of the 

exceptions applies. See IRS.gov/Charities/Foundations/Acts-ofSelf-Dealing.

The terms “disqualified person” and “foundation manager” are 

defined under C. Definitions, earlier.

Line 1b. If you answered “Yes” to any of the questions in line 1a, 

you should answer “Yes” to line 1b unless all of the acts engaged 

in were acts excepted by the regulations under section 4941 or 

other guidance, including Notices published in the Internal 

Revenue Bulletin relating to disaster assistance.

Line 2a. Under section 4942, a foundation (other than an 

operating foundation) must make qualifying distributions of its 

distributable amount for a tax year by the end of the following tax 

year. Otherwise, the foundation’s undistributed income as of the 

end of the following tax year is generally subject to tax until 

corrected. Parts IX through XII are used in determining whether 

the foundation has met its requirements under section 4942.

Line 2b. Taxes on failure to distribute income. If you answer 

“No” to the question on line 2b, attach a statement explaining:

• All the facts regarding the incorrect valuation of assets; and

• The actions taken (or planned) to comply with section 4942(a)

(2)(B), (C), and (D) and the related regulations.

Foreign foundations described in section 4948(b) need not 

complete line 2.

Line 3a. A private foundation generally is subject to tax under 

section 4943 if it owns any excess business holdings. In general, 

the holdings of a private foundation, combined with the holdings 

of related foundations and other disqualified persons, can't 

exceed 20% of the voting stock of a corporation, the profits 

interest in a partnership, or the beneficial remainder interest in a 

trust. (See “disqualified person” under C. Definitions, earlier.) 

Regardless of the holdings of disqualified persons, however, a 

foundation is permitted to own holdings that don't exceed 2% of 

either the voting stock or value of all outstanding shares of all 

classes of stock in a corporation. A similar exception applies to a 

beneficial or profits interest in any business enterprise that is a 

trust or partnership.

Section 4943(g), added by the Bipartisan Budget Act of 2018, 

P.L. 115-123, 132 Stat. 64 (2018), provides an exception for 

certain limited holdings to independently operated businesses. 

In general, the excess business holdings provisions of section 

4943(a) shall not apply with respect to the holdings of a private 

foundation in any business enterprise that meets all the 

requirements of section 4943(g)(2), (3), and (4). Accordingly, 

answer “No” to line 3a if the following requirements are met.

The requirements of section 4943(g)(2) are met if:

1. 100% of the voting stock in the business enterprise is 

held by the private foundation at all times during the tax year; 

and

2. All of the private foundation’s ownership interests were 

acquired by means other than purchase, such as a gift or 

bequest.

The requirements of section 4943(g)(3) are met if the 

business enterprise, no later than 120 days after the close of the 

tax year, distributes an amount equal to its net operating income 

for such tax year to the private foundation. For purposes of this 

paragraph, the net operating income of any business enterprise 

for any tax year is an amount equal to the gross income of the 

business enterprise for the tax year, reduced by the sum of:

1. The deductions allowed by chapter 1 for the tax year that 

are directly connected with the production of such income,

2. The tax imposed by chapter 1 on the business enterprise 

for the tax year, and

3. An amount for a reasonable reserve for working capital 

and other business needs of the business enterprise.

The requirements of section 4943(g)(4) are met if, at all times 

during the tax year:

1. No substantial contributor (as defined in section 4958(c)

(3)(C)) to the private foundation or family member (as 

determined under section 4958(f)(4)) of such a contributor is a 

director, officer, trustee, manager, employee, or contractor of the 

business enterprise (or an individual having powers or 

responsibilities similar to any of the foregoing);

2. At least a majority of the board of directors of the private 

foundation are persons who are not (i) directors or officers of the 

business enterprise, or (ii) family members of a substantial 

contributor to the private foundation; and

3. There is no loan outstanding from the business enterprise 

to a substantial contributor to the private foundation or to any 

family member of such a contributor.

This provision does not apply to any donor-advised fund 

treated as a private foundation by section 4943(e), a supporting 

organization treated as a private foundation by section 4943(f), a 

trust described in section 4947(a)(1), or a trust described in 

section 4947(a)(2).

Section 4943(g) shall apply to tax years beginning after 

December 31, 2017.

For more information about excess business holdings, see 

the Instructions for Form 4720.

Line 4. Taxes on investments that jeopardize charitable 

purposes. In general, an investment that jeopardizes any of the 

charitable purposes of a private foundation is one for which a 

foundation manager didn't exercise ordinary business care to 

provide for the long- and short-term financial needs of the 

foundation in carrying out its charitable purposes. For more 

details, see the regulations under section 4944.

Line 5. Taxes on taxable expenditures and political expenditures. In general, payments made for the activities described 

on lines 5a(1)–(5) are taxable expenditures.

Line 5a(2). Under section 4955, a section 501(c)(3) 

organization must pay an excise tax for any amount paid or 

incurred on behalf of or in opposition to any candidate for public 

office. The organization must pay an additional excise tax if it 

doesn't correct the expenditure timely.

A manager of a section 501(c)(3) organization who knowingly 

agrees to a political expenditure must pay an excise tax unless 

the agreement isn't willful and there is reasonable cause. A 

manager who doesn't agree to a correction of the political 

expenditure may have to pay an additional excise tax.

28 Instructions for Form 990-PF (2023)
A section 501(c)(3) organization will lose its exempt status if it 

engages in political activity.

A political expenditure that is treated as an expenditure under 

section 4955 isn't treated as a taxable expenditure under section 

4945.

For purposes of the section 4955 tax, when an organization 

promotes a candidate for public office (or is used or controlled by 

a candidate or prospective candidate), amounts paid or incurred 

for the following purposes are political expenditures.

• Remuneration to the individual (or candidate or prospective 

candidate) for speeches or other services.

• Travel expenses of the individual.

• Expenses of conducting polls, surveys, or other studies, or 

preparing papers or other material for use by the individual.

• Expenses of advertising, publicity, and fundraising for such 

individual.

• Any other expense that has the primary effect of promoting 

public recognition or otherwise primarily accruing to the benefit 

of the individual.

See the regulations under section 4945 for more information.

Line 5a(3). Answer “Yes” if the organization made a grant to an 

individual for travel, study, or similar purposes. Such purposes 

include scholarships, fellowships, certain prizes and awards, and 

grants to achieve a specific objective, produce a report or similar 

product, or improve a literary, artistic, musical, scientific, 

teaching, or other similar skill of the grantee. Similar purposes 

don't include grants to individuals in relief of poverty or distress 

(other than grants of the type described above), or prizes or 

awards that don't finance any future activities of the recipient.

A grant to an individual for travel, study, or similar purposes is 

a taxable expenditure under section 4945(d)(3) unless the 

foundation awarded the grant on an objective and 

nondiscriminatory basis under a procedure approved in advance 

by the IRS, as required under section 4945(g). The foundation 

may request approval of its procedure in the process of applying 

for exemption with Form 1023 (Schedule H), or thereafter with 

Form 8940, Request for Miscellaneous Determination.

Line 5a(4). Except as discussed below, a grant by a private 

foundation to a public charity described in section 509(a)(1), (2), 

or (3) or to an exempt operating foundation (as defined in section 

4940(d)(2) and the instructions for Part VI) isn't a taxable 

expenditure if the private foundation doesn't earmark the grant 

for any of the activities described in lines 5a(1)–(5), and there is 

no oral or written agreement by which the grantor foundation 

may cause the grantee to engage in any such prohibited activity 

or to select the grant recipient.

A grant made to a section 509(a)(3) Type III supporting 

organization (as defined in section 4943(f)(5)) that isn't a 

functionally integrated supporting organization (as defined in 

section 4943(f)(5)(B)) is a taxable expenditure unless you 

exercise expenditure responsibility. Check “Yes” on line 5a(4) if 

you made a grant to such an organization. See Regulations 

section 1.509(a)-4(i), for more information about whether an 

organization is functionally integrated.

A grant made to any other supporting organization (including 

a functionally integrated Type III), if a disqualified person of the 

private foundation controls the supporting organization or any of 

its supported organizations, is also a taxable expenditure unless 

you exercise expenditure responsibility. Check “Yes” on 

line 5a(4) if you made a grant to such an organization. In 

addition, check “Yes” on line 5a(4) if you made a grant in a prior 

year with respect to which you have a continuing obligation to 

exercise expenditure responsibility. See Regulations sections 

53.4942(a)-3(a)(3) and 53.4945-5(a) for more information.

Line 5b. If you answered “Yes” to any of the questions in line 5a, 

you should answer “Yes” to line 5b unless all of the transactions 

engaged in were “excepted” transactions. Excepted transactions 

are described in Regulations section 53.4945-2 through 

53.4945-5 and appear in Notices published in the Internal 

Revenue Bulletin relating to disaster assistance. For example, 

see Pub. 3833, Disaster Relief.

Line 6b. Check “Yes” if, in connection with any transfer of funds 

to a private foundation, the foundation directly or indirectly pays 

premiums on any personal benefit contract, or there is an 

understanding or expectation that any person will directly or 

indirectly pay these premiums.

Report the premiums it paid and the premiums paid by others, 

but treated as paid by the private foundation, on Form 8870, 

Information Return for Transfers Associated With Certain 

Personal Benefit Contracts, and pay the excise tax (which is 

equal to premiums paid) on Form 4720.

For more information, see Form 8870 and Notice 2000-24, 

2000-17 I.R.B. 952.

Line 7a. Answer “Yes” if the foundation was a party to a 

prohibited tax shelter transaction (PTST) as described in section 

4965(e) at any time during the tax year.

PTST. In general, a PTST means any listed transaction and any 

prohibited reportable transaction.

Listed transaction. A listed transaction, within the meaning of 

section 6707A(c)(2), is a transaction that is the same as, or 

substantially similar to, any transaction that has been specifically 

identified by the Secretary in published guidance as a tax 

avoidance transaction for purposes of section 6011.

Prohibited reportable transaction. Prohibited reportable 

transaction means any confidential transaction or any 

transaction with contractual protection (as defined under 

regulations prescribed by the Secretary) (see Regulations 

section 1.6011-4(b)(3) and (4)) that is a reportable transaction 

(as defined in section 6707A(c)(1)).

If the answer to this question is “Yes,” the foundation must 

also file Form 8886-T, Disclosure by Tax-Exempt Entity 

Regarding Prohibited Tax Shelter Transactions.

Line 7b. Answer “Yes” if the foundation answered “Yes” to 

line 7a, and it had net income or received proceeds attributable 

to the PTST during the tax year.

If the foundation answers “Yes” to both lines 7a and 7b, it may 

be required to file Form 4720 and pay tax with respect to each 

PTST. The foundation's managers may also be required to file 

Form 4720 and pay tax with respect to the relevant PTSTs.

Line 8. See the instructions for Form 4720, Schedule N, to 

determine if you paid to any covered employee more than $1 

million in remuneration or paid an excess parachute payment 

during the year. Remuneration paid to a covered employee 

includes any remuneration paid by a related organization.

Part VII. Information About Officers, 

Directors, Trustees, Foundation 

Managers, Highly Paid Employees, 

and Contractors

Line 1. List of officers, directors, trustees, etc. List the 

names, addresses, and other information requested for those 

who were officers, directors, and trustees (or any person who 

had responsibilities or powers similar to those of officers, 

directors, or trustees) of the foundation at any time during the 

year. Each must be listed whether or not they receive any 

compensation from the foundation. Give the address at which 

officers, etc., prefer the IRS to contact them.

Instructions for Form 990-PF (2023) 29
Also include on this list any officers or directors (or any 

person who had responsibilities or powers similar to those of 

officers or directors) of a disregarded entity owned by the 

foundation who aren't officers, directors, etc., of the foundation.

If the foundation (or disregarded entity) pays any other 

person, such as a management services company, for the 

services provided by any of the foundation's officers, directors, 

or trustees (or any person who had responsibilities or powers 

similar to those of officers, directors, or trustees), report the 

compensation and other items on Part VII as if you had paid the 

officers, etc., directly.

Show all forms of compensation earned by each listed officer, 

etc. In addition to completing Part VII, if you want to explain the 

compensation of one or more officers, directors, and trustees, 

you may provide an attachment describing the person's entire 

2023 compensation package.

Enter zero in columns (c), (d), and (e) if no compensation was 

paid. Attach a schedule if more space is needed.

Column (b). A numerical estimate of the average hours per 

week devoted to the position is required for the answer to be 

considered complete.

Phrases such as “as needed” or “as required” are 

unacceptable entries for column (b).

Column (c). Enter salary, fees, bonuses, and severance 

payments received by each person listed. Include current-year 

payments of amounts reported or reportable as deferred 

compensation in any prior year.

Column (d). Include all forms of deferred compensation and 

future severance payments (whether or not funded or vested, 

and whether or not the deferred compensation plan is a qualified 

plan under section 401(a)). Include payments to welfare benefit 

plans (employee welfare benefit plans covered by Part I of Title 1 

of the Employee Retirement Income Security Act of 1974 

(ERISA), providing benefits such as medical, dental, life 

insurance, apprenticeship and training, scholarship funds, 

severance pay, disability, etc.) on behalf of the officers, etc. 

Reasonable estimates may be used if precise cost figures aren't 

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 foundation files its return.

Column (e). Enter both taxable and nontaxable fringe 

benefits, expense account and other allowances (other than de 

minimis fringe benefits described in section 132(e)). See Pub. 

525, Taxable and Nontaxable Income, for more information. 

Examples of allowances include amounts for which the recipient 

didn't account to the organization or allowances that were more 

than the payee spent on serving the organization. Include 

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).

Line 2. Compensation of five highest-paid employees. Fill 

in the information requested for the five employees (if any) of the 

foundation (or disregarded entity that the foundation owns) who 

received the greatest amount of annual compensation over 

$50,000. Don't include employees listed on line 1. Also enter the 

total number of other employees who received more than 

$50,000 in annual compensation.

Show each listed employee's entire compensation package 

for the period covered by the return. Include all forms of 

compensation that each listed employee received in return for 

the employee’s services. See the line 1 instructions for more 

details on includible compensation.

CAUTION

!

Line 3. Five highest-paid independent contractors for professional services. Fill in the information requested for the five 

highest-paid independent contractors (if any), whether 

individuals or professional service corporations or associations, 

to whom the organization paid more than $50,000 for the year to 

perform personal services of a professional nature for the 

organization (for example, attorneys, accountants, and doctors). 

Also show the total number of all other independent contractors 

who received more than $50,000 for the year for performing 

professional services.

Part VIII-A. Summary of Direct 

Charitable Activities

List the foundation's four largest programs as measured by the 

direct and indirect expenses attributable to each that consist of 

the direct active conduct of charitable activities. Whether any 

expenditure is for the direct active conduct of a charitable activity 

is determined, generally, by the definitions and special rules of 

section 4942(j)(3) and the related regulations, which define a 

private operating foundation.

Except for significant involvement grant programs, described 

below, don't include in Part VIII-A any grants or expenses 

attributable to administering grant programs, such as reviewing 

grant applications, interviewing or testing applicants, selecting 

grantees, and reviewing reports relating to the use of the grant 

funds.

Include scholarships, grants, or other payments to individuals 

as part of an active program in which the foundation maintains 

some significant involvement. Related administrative expenses 

should also be included. Examples of active programs and 

definitions of the term “significant involvement” are provided in 

Regulations sections 53.4942(b)-1(b)(2) and 53.4942(b)-1(d).

Don't include any program-related investments (reportable in 

Part VIII-B) in the description and expense totals.

Include qualified set-asides for direct charitable activities 

reported on line 3 of Part XI. Also, include in Part VIII-A amounts 

paid or set aside to acquire assets used in the direct active 

conduct of charitable activities. Don't include current-year 

expenditures of amounts previously reported as set-asides in 

Part VIII-A.

Expenditures for direct charitable activities include, among 

others, amounts paid or set aside to:

1. Acquire or maintain the operating assets of a museum, 

library, or historic site or to operate the facility;

2. Provide goods, shelter, or clothing to indigent or disaster 

victims if the foundation maintains some significant involvement 

in the activity rather than merely making grants to the recipients;

3. Conduct educational conferences and seminars;

4. Operate a home for the elderly or disabled;

5. Conduct scientific, historic, public policy, or other 

research with significance beyond the foundation's grant 

program that doesn't constitute a prohibited attempt to influence 

legislation;

6. Publish and disseminate the results of such research, 

reports of educational conferences, or similar educational 

material;

7. Support the service of foundation staff on boards or 

advisory committees of other charitable organizations or on 

public commissions or task forces;

8. Provide technical advice or assistance to a governmental 

body, a governmental committee, or subdivision of either, in 

response to a written request by the governmental body, 

committee, or subdivision;

30 Instructions for Form 990-PF (2023)
9. Conduct performing arts performances; or

10. Provide technical assistance to grantees and other 

charitable organizations. This assistance must have significance 

beyond the purposes of the grants made to the grantees and 

must not consist merely of monitoring or advising the grantees in 

their use of the grant funds. Technical assistance involves the 

furnishing of expert advice and related assistance regarding, for 

example:

a. Compliance with governmental regulations,

b. Reducing operating costs or increasing program 

accomplishments,

c. Fundraising methods, and

d. Maintaining complete and accurate financial records.

Report both direct and indirect expenses in the expense 

totals. Direct expenses are those that can be specifically 

identified as connected with a particular activity. These include, 

among others, compensation and travel expenses of employees 

and officers directly engaged in an activity, the cost of materials 

and supplies utilized in conducting the activity, and fees paid to 

outside firms and individuals in connection with a specific 

activity.

Indirect (overhead) expenses are those that aren't specifically 

identified as connected with a particular activity but that relate to 

the direct costs incurred in conducting the activity. Examples of 

indirect expenses include:

• Occupancy expenses;

• Supervisory and clerical compensation;

• Repair, rental, and maintenance of equipment;

• Expenses of other departments or cost centers (such as 

accounting, personnel, and payroll departments or units) that 

service the department or function that incurs the direct 

expenses of conducting an activity; and

• Other applicable general and administrative expenses, 

including the compensation of top management, to the extent 

reasonably allocable to a particular activity.

No specific method of allocation is required. The method 

used, however, must be reasonable and must be used 

consistently.

Examples of acceptable allocation methods include:

• Compensation allocated on a time basis;

• Employee benefits allocated on the basis of direct salary 

expenses;

• Travel, conference, and meeting expenses charged directly to 

the activity that incurred the expense;

• Occupancy expenses allocated on a space-utilized basis; and

• Other indirect expenses allocated on the basis of direct salary 

expenses or total direct expenses.

Part VIII-B. Summary of 

Program-Related Investments

Program-related investment. Section 4944(c) and 

corresponding regulations define a program-related investment 

as one that is made primarily to accomplish a charitable purpose 

of the foundation and no substantial purpose of which is to 

produce investment income or a capital gain from the sale of the 

investment. Examples of program-related investments include 

educational loans to individuals and low-interest loans to other 

section 501(c)(3) organizations.

General instructions. Report all program-related investments 

made in the current tax year. Don't report any investments made 

in a prior year even if they were still held by the foundation in the 

current tax year.

Report in the amount column only the amounts of 

program-related investments that may be treated as qualifying 

distributions. Don't report in the amount column (1) the amount 

of a loan guarantee except to the extent that the foundation 

makes a guarantee payment that would be a qualifying 

distribution, or (2) the amount of a program-related investment in 

an organization described in the exceptions set forth in the Part I, 

line 25, column (d), instructions. If an amount isn't reportable in 

the amount column, then report it in the column describing the 

program-related investment.

Investments consisting of loans to individuals (such as 

educational loans) aren't required to be listed separately but may 

be grouped with other program-related investments of the same 

type. Loans to other section 501(c)(3) organizations and all other 

types of program-related investments must be listed separately 

on lines 1 through 3 or on an attachment.

Lines 1 and 2. List the two largest program-related investments 

made by the foundation in 2023, if any, whether or not the 

investments were still held by the foundation at the end of the 

year. If none, enter “NONE.”

Line 3. Combine all other program-related investments and 

enter the total on line 3 in the Amount column. List the individual 

investments or groups of investments included (attach a 

schedule, if necessary).

The total of lines 1 through 3 in the Amount column must 

equal the amount reported on line 1b of Part XI.

Part IX. Minimum Investment Return

Who must complete this section? All domestic foundations 

must complete Part IX.

Foreign foundations that checked Item D2 in the Heading 

section don’t have to complete Part IX unless claiming status as 

a private operating foundation.

Private operating foundations described in section 4942(j)(3) 

or 4942(j)(5) must complete Part IX in order to complete Part XIII.

Overview. A private foundation that isn't a private operating 

foundation must pay out, as qualifying distributions, its 

distributable amount, as determined in Part X. The distributable 

amount is the minimum investment return with certain 

adjustments. An organization’s minimum investment return, as 

determined in Part IX, is 5% of the total fair market value (less 

acquisition indebtedness) of its noncharitable-use assets.

Minimum investment return. In figuring the minimum 

investment return, include only those assets that aren't actually 

used or held for use by the organization for a charitable, 

educational, or other similar function that contributed to the 

charitable status of the foundation. Cash on hand and on deposit 

is considered used or held for use for charitable purposes only to 

the extent of the reasonable cash balances reported in Part IX, 

line 4. See the instructions for lines 1b and 4, later.

Assets held for the production of income or for investment 

aren't considered to be used directly for charitable functions 

even though the income from the assets is used for charitable 

functions. It is a factual question whether an asset is held for the 

production of income or for investment rather than used or held 

for use directly by the foundation for charitable purposes.

For example, an office building used to provide offices for 

employees engaged in managing endowment funds for the 

foundation isn't considered an asset used for charitable 

purposes.

Dual-use property. When property is used both for 

charitable and other purposes, the property is considered used 

entirely for charitable purposes if 95% or more of its total use is 

for that purpose. If less than 95% of its total use is for charitable 

purposes, a reasonable allocation must be made between 

charitable and noncharitable uses.

TIP

Instructions for Form 990-PF (2023) 31
Excluded property. Certain assets are excluded entirely 

from the computation of the minimum investment return. These 

include pledges of grants and contributions to be received in the 

future and future interests in estates and trusts.

Line 1a. Average monthly fair market value of securities. If 

market quotations are readily available, a foundation may use 

any reasonable method to determine the average monthly fair 

market value of securities such as common and preferred stock, 

bonds, and mutual fund shares, as long as that method is 

consistently used. For example, a value for a particular month 

might be determined by the closing price on the first or last 

trading days of the month or an average of the closing prices on 

the first and last trading days of the month. Market quotations are 

considered readily available if a security is any of the following.

• Listed on an exchange in which quotations appear on a daily 

basis, including foreign securities listed on a recognized foreign 

national or regional exchange.

• Regularly traded in the national or regional over-the-counter 

market for which published quotations are available.

• Locally traded, for which quotations can be readily obtained 

from established brokerage firms.

If securities are held in trust for, or on behalf of, a foundation 

by a bank or other financial institution that values those 

securities periodically using a computer pricing system, a 

foundation may use that system to determine the value of the 

securities. The system must be acceptable to the IRS for federal 

estate tax purposes.

The foundation may reduce the fair market value of securities 

only to the extent that it can establish that the securities could 

only be liquidated in a reasonable period of time at a price less 

than the fair market value because of:

• The size of the block of the securities,

• The fact that the securities held are securities in a closely held 

corporation, or

• The fact that the sale of the securities would result in a forced 

or distress sale.

Any reduction in value allowed under these provisions may 

not be more than 10% of the fair market value (determined 

without regard to any reduction in value).

Also, see Regulations sections 53.4942(a)-2(c)(4)(i)(b), (c), 

and (iv)(a), relating to the rules summarized above and to the 

general rules for valuing other assets.

Line 1b. Average of monthly cash balances. Figure cash 

balances on a monthly basis by averaging the amount of cash on 

hand on the first and last days of each month. Include all cash 

balances and amounts that may be used for charitable purposes 

(see Line 4. Cash deemed held for charitable activities, later) or 

set aside and taken as a qualifying distribution (see Part XI. 

Qualifying Distributions, later).

Line 1c. Fair market value of all other assets. The 

foundation must report on line 1c the value of all assets other 

than charitable-use assets, publicly traded securities, cash, and 

certain “excluded assets” described in Regulations section 

53.4942(a)-2(c)(2). The foundation must value the assets 

reported on line 1c annually, except that real estate may be 

valued every 5 years if the independent appraisal procedures 

discussed under 5-year valuation below are followed. 

Alternatively, an annual valuation may be made by private 

foundation employees or by any other person even if that person 

is a disqualified person. If the IRS accepts an annual valuation, it 

is valid only for the tax year for which it is made. A new valuation 

is required for the next tax year.

5-year valuation. A written, certified, and independent 

appraisal of the fair market value of any real estate, including any 

improvements, may be determined on a 5-year basis by a 

qualified person.

The qualified person may not be a disqualified person (see C. 

Definitions, earlier) with respect to the private foundation or an 

employee of the foundation.

Commonly accepted valuation methods must be used in 

making the appraisal. A valuation based on acceptable methods 

of valuing property for federal estate tax purposes will be 

considered acceptable.

The appraisal must include a closing statement that, in the 

appraiser's opinion, the appraised assets were valued according 

to valuation principles regularly employed in making appraisals 

of such property, using all reasonable valuation methods. The 

foundation must keep a copy of the independent appraisal for its 

records. If a valuation is reasonable, the foundation may use it for 

the tax year for which the valuation is made and for each of the 4 

following tax years.

Any valuation of real estate by a certified, independent 

appraisal may be replaced during the 5-year period by a 

subsequent 5-year certified, independent appraisal or by an 

annual valuation as described above. The most recent valuation 

should be used to figure the foundation's minimum investment 

return.

If the valuation is made according to the above rules, the IRS 

will continue to accept it during the 5-year period for which it 

applies even if the actual fair market value of the property 

changes during the period. For specific rules, see Regulations 

section 53.4942(a)-2(c)(4)(iv)(b).

Valuation date. An asset required to be valued annually may 

be valued as of any day in the private foundation's tax year, 

provided the foundation values the asset as of that date in all tax 

years. However, a valuation of real estate determined on a 

5-year basis by a certified, independent appraisal may be made 

as of any day in the first tax year of the foundation to which the 

valuation applies.

Assets held for less than a tax year. To determine the 

value of an asset held less than 1 tax year, divide the number of 

days the foundation held the asset by the number of days in the 

tax year. Multiply the result by the fair market value of the asset.

Line 1e. Reduction claimed for blockage or other factors. If 

the fair market value of any securities, real estate holdings, or 

other assets reported on lines 1a and 1c reflects a blockage 

discount, marketability discount, or other reduction from full fair 

market value because of the size of the asset holding or any 

other factor, enter on line 1e the aggregate amount of the 

discounts claimed. Attach an explanation that includes the 

following information for each asset or group of assets involved.

1. A description of the asset or asset group (for example, 

20,000 shares of XYZ, Inc., common stock).

2. For securities, the percentage of the total issued and 

outstanding securities of the same class that is represented by 

the foundation's holding.

3. The fair market value of the asset or asset group before 

any claimed blockage discount or other reduction.

4. The amount of the discount claimed.

5. A statement that explains why the claimed discount is 

appropriate in valuing the asset or group of assets for section 

4942 purposes.

In the case of securities, there are certain limitations on the 

size of the reduction in value that can be claimed. See the 

instructions for Part IX, line 1a.

Line 2. Acquisition indebtedness. Enter the total acquisition 

indebtedness that applies to assets included on line 1. For 

details, see section 514(c)(1).

Line 4. Cash deemed held for charitable activities. 

Foundations may exclude from the assets used in the minimum 

investment return computation the reasonable cash balances 

32 Instructions for Form 990-PF (2023)
necessary to cover current administrative expenses and other 

normal and current disbursements directly connected with the 

charitable, educational, or other similar activities. The amount of 

cash that may be excluded is generally 1.5% of the fair market 

value of all assets (minus any acquisition indebtedness) as 

figured in Part IX, line 3. However, if under the facts and 

circumstances an amount larger than the deemed amount is 

necessary to pay expenses and disbursements, then you may 

enter the larger amount instead of 1.5% of the fair market value 

on line 4. If you use a larger amount, attach an explanation.

Line 6. Short tax periods. If the foundation's tax period is less 

than 12 months, determine the applicable percentage by dividing 

the number of days in the short tax period by 365 (or 366 in a 

leap year). Multiply the result by 5% (0.05). Then multiply the 

modified percentage by the amount on line 5 and enter the result 

on line 6.

Part X. Distributable Amount

If the organization is claiming status as a private operating 

foundation described in section 4942(j)(3) or (j)(5) or if it is a 

foreign foundation that checked Item D2 in the Heading section 

on page 1, check the box in the Heading section for Part X. You 

don't need to complete this part. See the Part XIII instructions for 

more details on private operating foundations.

Section 4942(j)(5) foundations are classified as private 

operating foundations for purposes of section 4942 only if they 

meet the requirements of Regulations section 53.4942(b)-1(a)

(2).

The distributable amount for 2023 is the amount that the 

foundation must distribute by the end of 2024 as qualifying 

distributions to avoid the 30% tax on the undistributed portion.

Line 4. Enter the total of recoveries of amounts treated as 

qualifying distributions for any year under section 4942(g). 

Include recoveries of part or all (as applicable) of grants 

previously made, proceeds from the sale or other disposition of 

property whose cost was treated as a qualifying distribution 

when the property was acquired, and any amount set aside 

under section 4942(g) to the extent it is determined that this 

amount isn't necessary for the purposes of the set-aside.

Line 6. Deduction from distributable amount. If the 

foundation was organized before May 27, 1969, and its 

governing instrument or any other instrument continues to 

require the accumulation of income after a judicial proceeding 

pursuant to section 508(e) to reform the instrument has 

terminated, then the income required to be accumulated must be 

subtracted from the distributable amount beginning with the first 

tax year after the tax year in which the judicial proceeding was 

terminated.

Part XI. Qualifying Distributions

“Qualifying distributions” are amounts spent or set aside for 

religious, educational, or similar charitable purposes. The total 

amount of qualifying distributions for any year is used to reduce 

the distributable amount for specified years to arrive at the 

undistributed income (if any) for those years. Foreign 

foundations described in section 4948(b) not claiming operating 

foundation status need not complete this part.

Line 1a. Expenses, contributions, gifts, etc. Enter the 

amount from Part I, line 26, column (d).

Line 1b. Program-related investments. Enter the total of the 

Amount column from Part VIII-B. See the Part VIII-B instructions 

for the definition of “program-related investments.”

Line 3. Amounts set aside. Amounts set aside may be treated 

as qualifying distributions only if the private foundation 

establishes to the satisfaction of the IRS that the amount will be 

paid for the specific project within 60 months from the date of the 

first set-aside and meets (1) or (2) below.

1. The project can be better accomplished by a set-aside 

than by the immediate payment of funds (suitability test).

2. The private foundation meets the requirements of section 

4942(g)(2)(B)(ii) (cash distribution test).

Set-aside under item 1. For any set-aside under (1) above, 

the private foundation must apply for IRS approval by the end of 

the tax year in the amount of the set-aside. The request for 

approval is submitted with Form 8940, Request for 

Miscellaneous Determination, under sections 507, 509(a), 4940, 

4942, 4945, and 6033. The Instructions for Form 8940 provide 

what information is required to be included with the set-aside 

ruling request. Submit the completed Form 8940, user fee 

payment, and all other required information as directed in the 

Instructions for Form 8940.

Set-aside under item 2. For any set-aside under (2) above, 

the private foundation must attach a schedule to its annual 

information return showing how the requirements are met. A 

schedule is required for the year of the set-aside and for each 

subsequent year until the set-aside amount has been distributed. 

See Regulations section 53.4942(a)-3(b)(7)(ii) for specific 

requirements.

Part XII. Undistributed Income

If you checked Item D2 in the Heading section on page 1, don't 

fill in this part.

If the organization is a private operating foundation for any of 

the years shown in Part XII, don't complete the portions of Part 

XII that apply to those years. If there are excess qualifying 

distributions for any tax year, don't carry them over to a year in 

which the organization is a private operating foundation or to any 

later year. For example, if a foundation made excess qualifying 

distributions in 2021 and became a private operating foundation 

in 2023, the excess qualifying distributions from 2021 could be 

applied against the distributable amount for 2022 but not to any 

year after 2022.

The purpose of this part is to enable the foundation to comply 

with the rules for applying its qualifying distributions for the year 

2023. In applying the qualifying distributions, there are three 

basic steps.

1. Reduce any undistributed income for 2022 (but not below 

zero).

2. The organization may use any part of or all remaining 

qualifying distributions for 2023 to satisfy elections. For example, 

if undistributed income remained for any year before 2022, it 

could be reduced to zero or, if the foundation wished, the 

distributions could be treated as distributions out of corpus.

3. If no elections are involved, apply remaining qualifying 

distributions to the 2023 distributable amount on line 4d. If the 

remaining qualifying distributions are greater than the 2023 

distributable amount, the excess is treated as a distribution out 

of corpus on line 4e.

If for any reason the 2023 qualifying distributions don't reduce 

any 2022 undistributed income to zero, the amount not 

distributed is subject to a 30% tax. If the 2021 income remains 

undistributed at the end of 2024, it could be subject again to the 

30% tax. Also, see section 4942(b) for the circumstances under 

which a second-tier tax could be imposed.

Excess distribution carryovers. An excess of qualifying 

distributions is created for a particular tax year (and available as 

a carryover for the 5 succeeding years) if the total qualifying 

distributions treated as made out of the undistributed income for 

the year or out of corpus with respect to the year (other than 

amounts distributed in satisfaction of section 170(b)(1)(F)(ii) or 

4942(g)(3) or applied to a prior tax year by election) exceeds the 

Instructions for Form 990-PF (2023) 33
distributable amount for the year. See Regulations section 

53.4942(a)-3(e)(2). Thus, in no case does the excess for the 

particular tax year exceed the qualifying distributions for the year 

less the distributable amount for the year.

Example. X Foundation has an excess distribution carryover 

of $100,000 from 5 years ago that will expire to the extent that it 

isn't used in its current tax year. For its current tax year, X 

Foundation has a distributable amount of $110,000, qualifying 

distributions of $90,000, and no undistributed income from prior 

years. X Foundation doesn't elect to distribute any part of its 

qualifying distributions in satisfaction of section 170(b)(1)(F)(ii) 

or 4942(g)(3). Under these circumstances, X Foundation has no 

excess distributions for its current tax year. X Foundation may 

apply $20,000 of its $100,000 carryover from 5 years ago to its 

undistributed income in the current tax year, but the remaining 

$80,000 must expire. X Foundation can't create an excess 

distribution for its current tax year by electing to treat all or part of 

its qualifying distributions for the current year as made out of 

corpus and applying the $100,000 carryover from the prior year 

in satisfaction of its distributable amount for the current year.

Line 1. Distributable amount. Enter the distributable amount 

for 2023 from Part X, line 7.

Line 2. Undistributed income. Enter the distributable amount 

for 2022 and amounts for earlier years that remained 

undistributed at the beginning of the 2023 tax year.

Line 2b. Enter the amount of undistributed income for years 

before 2022.

Line 3. Excess distributions carryover to 2023. If the 

foundation has made excess distributions out of corpus in prior 

years, which haven't been applied in any year, enter the amount 

for each year. Don't enter an amount for a particular year if the 

organization was a private operating foundation for any later 

year.

Lines 3a through 3e. Enter the amount of any excess 

distribution made on the line for each year listed. Don't include 

any amount that was applied against the distributable amount of 

an earlier year or that was already used to meet pass-through 

distribution requirements. (See Line 7. Distributions out of 

corpus for 2022 pass-through distributions, later.)

Line 3f. This amount can be applied in 2023.

Line 4. Qualifying distributions. Enter the total amount of 

qualifying distributions made in 2023 from Part XI, line 4, on the 

line next to column (a). The total of the amounts applied on lines 

4a through 4e is equal to the qualifying distributions made in 

2023.

Line 4a. The qualifying distributions for 2023 are first used to 

reduce any undistributed income remaining from 2022. Enter 

only enough of the 2023 qualifying distributions to reduce the 

2022 undistributed income to zero.

Lines 4b and 4c. If there are any 2023 qualifying distributions 

remaining after reducing the 2022 undistributed income to zero, 

one or more elections can be made under Regulations section 

53.4942(a)-3(d)(2) to apply all or part of the remaining qualifying 

distributions to any undistributed income remaining from years 

before 2022 or to apply to corpus.

A foundation may make a corpus election on line 4c in 

order to qualify under section 170(b)(1)(F)(ii) for the 

benefit of its contributors, or in order for a foundation 

grantor to the foundation to obtain a qualifying distribution under 

section 4942(g)(3), as described in the Part XII, line 7, 

instructions. A foundation can't make a corpus election on line 4c 

in an attempt to create or increase an excess distributions 

carryover for the current year on line 10e by applying excess 

CAUTION

!

distribution carryovers to its current-year distributable amount on 

line 5. See Regulations section 53.4942(a)-3(e)(2).

Elections. To make these elections, the organization must file 

a statement with the IRS or attach a statement, as described in 

the above regulations section, to Form 990-PF. An election made 

by filing a separate statement with the IRS must be made within 

the year for which the election is made. Otherwise, attach a 

statement to the Form 990-PF filed for the year the election was 

made.

Where to enter. If the organization elected to apply all or part 

of the remaining amount to the undistributed income remaining 

from years before 2022, enter the amount on line 4b.

If the organization elected to treat those qualifying 

distributions as a distribution out of corpus, enter the amount on 

line 4c.

Entering an amount on line 4b or 4c without submitting 

the required statement isn't considered a valid election.

Line 4d. Treat as a distribution of the distributable amount for 

2023 any qualifying distributions for 2023 that remain after 

reducing the 2022 undistributed income to zero and after 

electing to treat any part of the remaining distributions as a 

distribution out of corpus or as a distribution of a prior year's 

undistributed income. Enter only enough of the remaining 2023 

qualifying distributions to reduce the 2023 distributable amount 

to zero.

Line 4e. Any 2023 qualifying distributions remaining after 

reducing the 2023 distributable amount to zero should be treated 

as an excess distribution out of corpus. This amount may be 

carried over and applied to later years.

Line 5. Excess qualifying distributions carryover applied to 

2023. The foundation may apply excess qualifying distribution 

carryovers from its 5 prior years to its current-year undistributed 

income, but only to the extent that the undistributed income 

exceeds its qualifying distributions for the year. For example, if 

for the tax year X Foundation has a distributable amount of 

$1,000, qualifying distributions of $800 that it elects to treat as 

made out of corpus, prior-year carryovers of $700, and no 

undistributed income for prior years, then it may apply only $200 

of the carryovers to its current-year undistributed income. See 

Regulations section 53.4942(a)-3(e)(1).

Enter any excess qualifying distributions from line 3, which 

were applied to 2023, in both the Corpus column and the 2023 

column. Apply the oldest excess qualifying distributions first. 

Thus, the organization will apply any excess qualifying 

distributions carried forward from 2018 before those from later 

years.

Line 6a. Add lines 3f, 4c, and 4e. Subtract line 5 from the total. 

Enter the net total in the Corpus column.

Line 6c. Enter only the undistributed income from 2021 and 

prior years for which either a notice of deficiency under section 

6212(a) has been mailed for the section 4942(a) first-tier tax, or 

on which the first-tier tax has been assessed because the 

organization filed a Form 4720 for a tax year that began before 

2022.

Lines 6d and 6e. These amounts are taxable under the 

provisions of section 4942(a), except for any part that is due 

solely to improper valuation of assets to which the provisions of 

section 4942(a)(2) are being applied (see Line 2b. Taxes on 

failure to distribute income, earlier). Report the taxable amount 

on Form 4720. If the exception applies, attach an explanation.

Line 6f. In the 2023 column, enter the amount by which line 1 is 

more than the total of lines 4d and 5. This is the undistributed 

income for 2023. The organization must distribute the amount 

CAUTION

!

34 Instructions for Form 990-PF (2023)
shown by the end of its 2024 tax year so that it won't be liable for 

the tax on undistributed income.

Line 7. Distributions out of corpus for 2023 pass-through 

distributions. If the foundation is the donee and receives a 

contribution from another private foundation, the donor 

foundation may treat the contribution as a qualifying distribution 

only if the donee foundation makes a distribution equal to the full 

amount of the contribution and the distribution is a qualifying 

distribution that is treated as a distribution of corpus. The donee 

foundation must, no later than the close of the first tax year after 

the tax year in which it receives the contributions, distribute an 

amount equal in value to the contributions received in the prior 

tax year and have no remaining undistributed income for the 

prior year. For example, if private Foundation X received $1,000 

in tax year 2021 from Foundation Y, Foundation X would have to 

distribute the $1,000 as a qualifying distribution out of corpus by 

the end of 2022 and have no remaining undistributed income for 

2022.

If a private foundation receives a contribution from an 

individual or a corporation and the individual is seeking the 60% 

contribution base limit on deductions for the tax year (or the 

individual or corporation isn't applying the limit imposed on 

deductions for contributions to the foundation of capital gain 

property), the foundation must comply with certain distribution 

requirements.

By the 15th day of the 3rd month after the end of the tax year 

in which the foundation received the contributions, the donee 

foundation must distribute as qualifying distributions out of 

corpus 100% of the value as of the date of receipt of the 

following.

1. All contributions of cash and property received during the 

year, in order for the individual contributor to receive the benefit 

of the 60% limit on deductions under section 170(b)(1)(F)(ii).

2. All contributions of property only, in order for the individual 

or corporate contributor not to be subject to the section 170(e)(1)

(B)(ii) limitations.

Elections. If the organization is applying excess distributions 

from prior years (for instance, any part of the amount in Part XII, 

line 3f) to satisfy the distribution requirements of section 170(b)

(1)(F) or 4942(g)(3), it must make the election under Regulations 

section 53.4942(a)-3(c)(2) by attaching a statement in 

accordance with that section. Also, see Regulations section 

1.170A-9(h)(2).

Enter on line 7 the total distributions out of corpus made to 

satisfy the restrictions on amounts received from donors 

described, earlier.

Line 8. Outdated excess distributions carryover. Because 

of the 5-year carryover limitation under section 4942(i)(2), the 

organization must reduce any excess distributions carryover by 

any amounts from 2018 that weren't applied in 2023.

Line 9. Excess distributions carryover to 2023. Enter the 

amount by which line 6a is more than the total of lines 7 and 8. 

This is the amount the organization may apply to 2024 and 

following years. Line 9 can never be less than zero.

Line 10. Analysis of line 9. In the space provided for each 

year, enter the amount of excess distributions carryover from that 

year that hasn't been applied as of the end of the 2023 tax year. 

If there is an amount on the line for 2019, it must be applied by 

the end of the 2024 tax year since the 5-year carryover period for 

2019 ends in 2024.

Part XIII. Private Operating 

Foundations

All organizations that claim status as private operating 

foundations under section 4942(j)(3) or (5) for 2023 must 

complete Part XIII.

Certain elderly care facilities (section 4942(j)(5)). For 

purposes of section 4942 only, certain elderly care facilities that, 

on May 26, 1969, and at all times thereafter before the close of 

the tax year, operated and maintained as their principal 

functional purpose facilities for the long-term care, comfort, 

maintenance, or education of permanently and totally disabled 

persons, elderly persons, needy widows, or children may be 

classified as private operating foundations. To be so classified, 

they must also meet the endowment test described below.

If the foundation is a section 4942(j)(5) organization, 

complete only lines 1a, 1b, 2c, 2d, 2e, and 3b. Enter “N/A” on all 

other lines in the Total column for Part XIII.

Private operating foundation (section 4942(j)(3)). The term 

“private operating foundation” means any private foundation that 

spends at least 85% of the smaller of its adjusted net income or 

its minimum investment return directly for the active conduct of 

the exempt purpose or functions for which the foundation is 

organized and operated (the income test) and that also meets 

one of the three tests below.

1. Assets test. 65% or more of the foundation's assets are 

devoted directly to those activities or functionally related 

businesses, or both; or 65% or more of the foundation's assets 

are stock of a corporation that is controlled by the foundation, 

and substantially all of the assets of the corporation are devoted 

to those activities or functionally related businesses.

2. Endowment test. The foundation normally makes 

qualifying distributions directly for the active conduct of the 

exempt purpose or functions for which it is organized and 

operated in an amount that is two-thirds or more of its minimum 

investment return.

3. Support test. The foundation normally receives 85% or 

more of its support (other than gross investment income as 

defined in section 509(e)) from the public and from five or more 

exempt organizations that aren't described in section 4946(a)(1)

(H) with respect to each other or the recipient foundation. Not 

more than 25% of the support (other than gross investment 

income) normally may be received from any one of the exempt 

organizations and not more than one-half of the support normally 

may be received from gross investment income.

See the regulations under section 4942 for the meaning of 

“directly for the active conduct” of exempt activities for purposes 

of these tests.

Complying with these tests. A foundation may meet the 

income test and either the assets, endowment, or support test by 

satisfying the tests for any 3 years during a 4-year period 

consisting of the tax year in question and the 3 immediately 

preceding tax years. It may also meet the tests based on the 

total of all related amounts of income or assets held, received, or 

distributed during that 4-year period. A foundation may not use 

one method for satisfying the income test and another for 

satisfying one of the three alternative tests. Thus, if a foundation 

meets the income test on the 3-out-of-4-year basis for a 

particular tax year, it may not use the 4-year aggregation method 

for meeting one of the three alternative tests for that same year.

In completing line 3c(3) of Part XIII under the aggregation 

method, the largest amount of support from an exempt 

organization will be based on the total amount received for the 

4-year period from any one exempt organization.

A new private foundation must use the aggregation method to 

satisfy the tests for its first tax year in order to be treated as a 

Instructions for Form 990-PF (2023) 35
private operating foundation from the beginning of that year. It 

must continue to use the aggregation method for its second and 

third tax years to maintain its status for those years.

Part XIV. Supplementary Information

Complete this part only if the foundation had assets of $5,000 or 

more at any time during the year. This part doesn't apply to a 

foreign foundation that during its entire period of existence 

received substantially all (85% or more) of its support (other than 

gross investment income) from sources outside the United 

States.

Line 2. In the space provided (or in an attachment, if 

necessary), furnish the required information about the 

organization's grant, scholarship, fellowship, loan, etc., 

programs. In addition to restrictions or limitations on awards by 

geographical areas, charitable fields, and kinds of recipients, 

indicate any specific dollar limitations or other restrictions 

applicable to each type of award the organization makes. This 

information benefits the grant seeker and the foundation. The 

grant seekers will be aware of the grant eligibility requirements, 

and the foundation should receive only applications that adhere 

to these grant application requirements.

If the foundation only makes contributions to preselected 

charitable organizations and doesn't accept unsolicited 

applications for funds, check the box on line 2.

Line 3. If necessary, attach a schedule for lines 3a and 3b that 

lists separately amounts given to individuals and amounts given 

to organizations.

Foundation Status of Recipient

Use the following codes:

PF Private non-operating foundation (section 509(a)) 

POF Private operating foundation (section 4942(j)(3)) other than 

an EOF

EOF Exempt operating foundation (section 4940(d)) 

PC Public charity described in section 509(a)(1) or (2) 

GOV Domestic or foreign government (including Indian tribal 

governments) or instrumentality, or international organization 

designated by Executive Order under 22 U.S.C. 288

SO-DP Type I, Type II, or Type III functionally integrated supporting 

organization if a disqualified person of the private foundation 

controls the supporting organization or a supported 

organization (sections 509(a)(3) and 4942(g)(4)) 

SO I Type I supporting organization (sections 509(a)(3) and 

509(a)(3)(B)(i)) other than an SO-DP

SO II Type II supporting organization (sections 509(a)(3) and 

509(a)(3)(B)(ii)) other than an SO-DP

SO III FI Functionally integrated Type III supporting organization 

(sections 509(a)(3), 509(a)(3)(B)(iii), and 4943(f)(5)(B)) 

other than an SO-DP

SO III NFI Non-functionally integrated Type III supporting organization 

(sections 509(a)(3), 509(a)(3)(B)(iii), and 4943(f)(5)(B)) 

TPS Testing for public safety organization (section 509(a)(4))

NC Organization not otherwise classified

 I Individual person

See Regulations section 1.509(a)-4 and Rev. Proc. 2018-32, 

2018-23 I.R.B. 739, available at IRS.gov/pub/irs-irbs/

irb18-23.pdf, for guidance on determining whether a grantee is a 

Type I, Type II, Type III functionally integrated, or Type III 

non-functionally integrated supporting organization.

Purpose of grant or contribution. Entries under this 

column should reflect the grant's or contribution's purpose and 

should be in greater detail than merely classifying them as 

charitable, educational, religious, or scientific activities.

For example, use an identification such as payments:

• For nursing service,

• For fellowships, or

• For assistance to indigent families.

Entries such as “grant” or “contribution” under the 

column titled Purpose of grant or contribution are 

unacceptable.

Line 3a. Paid during year. List all contributions, grants, etc., 

actually paid during the year, including grants or contributions 

that aren't qualifying distributions under section 4942(g). Include 

current-year payments of set-asides treated as qualifying 

distributions in the current tax year or any prior year.

Line 3b. Approved for future payment. List all 

contributions, grants, etc., approved during the year but not paid 

by the end of the year, including the unpaid portion of any 

current-year set-aside. Don't report contributions and grants 

approved or set aside in a prior tax year but still unpaid as of the 

end of the tax year.

Part XV-A. Analysis of 

Income-Producing Activities

In Part XV-A, analyze revenue items that are also entered in Part 

I, lines 3–11, column (a), and on line 5b. Contributions reported 

on line 1 of Part I aren't entered in Part XV-A. For information on 

unrelated business income, see the Instructions for Form 990-T 

and Pub. 598.

Columns (a) and (c). In column (a), enter a six-digit business 

code, from the list in the Instructions for Form 990-T, to identify 

any income reported in column (b). In column (c), enter an 

exclusion code, from the list later, to identify any income reported 

in column (d). If more than one exclusion code is applicable to a 

particular revenue item, select the lowest numbered exclusion 

code that applies. Also, if nontaxable revenues from several 

sources are reportable on the same line in column (d), use the 

exclusion code that applies to the largest revenue source.

Columns (b), (d), and (e). For amounts reported in Part XV-A 

on lines 1–11, enter in column (b) any income earned that is 

unrelated business income (see section 512). In column (d), 

enter any income earned that is excluded from the computation 

of unrelated business taxable income by section 512, 513, or 

514. In column (e), enter any related or exempt function income; 

that is, any income earned that is related to the organization's 

purpose or function that constitutes the basis for the 

organization's exemption.

Also enter in column (e) any income specifically excluded 

from gross income other than by section 512, 513, or 514, such 

as interest on state and local bonds that is excluded from tax by 

section 103. You must explain in Part XV-B any amount shown in 

column (e).

Comparing Part XV-A with Part I. The sum of the amounts 

entered on each line of lines 1–11 of columns (b), (d), and (e) of 

Part XV-A should equal corresponding amounts entered on Part 

I, lines 3–11, column (a), and on line 5b as shown below.

CAUTION

!

36 Instructions for Form 990-PF (2023)
Amounts in

Part XV-A

on line . . .

Correspond to

amounts in Part I,

column (a), line . . .

1a–g .................... 11

2 ...................... 11

3 ...................... 3

4 ...................... 4

5 and 6 ................... 5b (description column)

7 ...................... 11

8 ...................... 6a

9 ...................... 11 minus any special event 

expenses included on lines 13 

through 23 of Part I, column (a)

10 ..................... 10c

11a–e ................... 11

Line 1. Program service revenue. On lines 1a–g, list each 

revenue-producing program service activity of the organization. 

For each program service activity listed, enter the gross revenue 

earned for each activity, as well as identifying business and 

exclusion codes, in the appropriate columns. For line 1g, enter 

amounts that are payments for services rendered to 

governmental units. Don't include governmental grants that are 

reportable on Part I, line 1.

Report the total of lines 1a–g on line 11 of Part I, along with 

any other income reportable on line 11.

Program services are mainly those activities that the reporting 

organization was created to conduct and that, along with any 

activities begun later, form the basis of the organization's current 

exemption from tax.

Program services can also include the organization's 

unrelated trade or business activities. Program service revenue 

also includes income from program-related investments (such as 

interest earned on scholarship loans) as defined in the 

instructions for Part VIII-B.

Line 11. On lines 11a–e, list each “Other revenue” activity not 

reported on lines 1 through 10. Report the sum of the amounts 

entered for lines 11a–e, columns (b), (d), and (e), on Part I, 

line 11.

Line 13. On line 13, enter the total of columns (b), (d), and (e) of 

line 12.

You may use the following worksheet to verify your 

calculations.

Line 13, Part XV-A ..................

Minus: Part I, line 5b ................

Note. If Part I, line 5b, reflects a loss, add 

that amount here instead of subtracting.

Plus: Part I, line 1 .................

Plus: Part I, line 5a ................

Plus: Expenses of special events deducted in 

figuring Part XV-A, line 9 .........

Equal: Part I, line 12, column (a) .........

Part XV-B. Relationship of Activities 

to the Accomplishment of Exempt 

Purposes

To explain how each amount in column (e) of Part XV-A was 

related or exempt function income, show the line number of the 

amount in column (e) and give a brief description of how each 

activity reported in column (e) contributed importantly to the 

accomplishment of the organization's exempt purposes (other 

than by providing funds for such purposes). Activities that 

generate exempt-function income are activities that form the 

basis of the organization's exemption from tax.

Also, explain any income entered in column (e) that is 

specifically excluded from gross income other than by section 

512, 513, or 514. If no amount is entered in column (e), don't 

complete Part XV-B.

Example. M, a performing arts association, is primarily 

supported by endowment funds. It raises revenue by charging 

admissions to its performances. These performances are the 

primary means by which the organization accomplishes its 

cultural and educational purposes.

M reported admissions income in column (e) of Part XV-A 

and explained in Part XV-B that these performances are the 

primary means by which it accomplishes its cultural and 

educational purposes.

Because M also reported interest from state bonds in column 

(e) of Part XV-A, M explained in Part XV-B that such interest was 

excluded from gross income by section 103.

Part XVI. Information Regarding 

Transfers to and Transactions and 

Relationships With Noncharitable 

Exempt Organizations

Part XVI is used to report direct and indirect transfers to (line 1a) 

and direct and indirect transactions with (line 1b) and 

relationships with (line 2) any other noncharitable exempt 

organization. A “noncharitable exempt organization” is a 

tax-exempt organization described in section 501(c), other than 

in paragraph (3) of section 501(c), or a political organization 

described in section 527.

For purposes of these instructions, the section 501(c)(3) 

organization completing Part XVI is referred to as the “reporting 

organization.”

A noncharitable exempt organization is “related to or affiliated 

with” the reporting organization if either:

• The two organizations share some element of common 

control, or

• A historic and continuing relationship exists between the two 

organizations.

A noncharitable exempt organization is unrelated to the 

reporting organization if:

• The two organizations share no element of common control, 

and

• A historic and continuing relationship doesn't exist between 

the two organizations.

An “element of common control” is present when one or more 

of the officers, directors, or trustees of one organization are 

elected or appointed by the officers, directors, trustees, or 

members of the other. An element of common control is also 

present when more than 25% of the officers, directors, or 

trustees of one organization serve as officers, directors, or 

trustees of the other organization.

A “historic and continuing relationship” exists when two 

organizations participate in a joint effort to achieve one or more 

common purposes on a continuous or recurring basis rather than 

on the basis of one or more isolated transactions or activities. 

Such a relationship also exists when two organizations share 

facilities, equipment, or paid personnel during the year, 

regardless of the length of time the arrangement is in effect.

Line 1. Reporting of certain transfers and transactions. 

Generally, report on line 1 any transfer to or transaction with a 

Instructions for Form 990-PF (2023) 37
noncharitable exempt organization even if the transfer or 

transaction constitutes the only connection with the 

noncharitable exempt organization.

Related organizations. If the noncharitable exempt 

organization is related to or affiliated with the reporting 

organization, report all direct and indirect transfers and 

transactions except for contributions and grants to the reporting 

organization.

Unrelated organizations. All transfers to an unrelated 

noncharitable exempt organization must be reported on line 1a. 

All transactions between the reporting organization and an 

unrelated noncharitable exempt organization must be shown on 

line 1b unless they meet an exception in the specific instructions 

for line 1b.

Line 1a. Transfers. Answer “Yes” to lines 1a(1) and 1a(2) if the 

reporting organization made any direct or indirect transfers of 

any value to a noncharitable exempt organization.

A “transfer” is any transaction or arrangement whereby one 

organization transfers something of value (cash, other assets, 

services, use of property, etc.) to another organization without 

receiving something of more than nominal value in return. 

Contributions, gifts, and grants are examples of transfers.

If the only transfers between the two organizations were 

contributions and grants made by the noncharitable exempt 

organization to the reporting organization, answer “No.”

Line 1b. Other transactions. Answer “Yes” for any transaction 

described on line 1b(1)–(6), regardless of its amount, if it is with 

a related or affiliated organization.

Unrelated organizations. Answer “Yes” for any transaction 

between the reporting organization and an unrelated 

noncharitable exempt organization, regardless of its amount, if 

the reporting organization received less than adequate 

consideration. There is adequate consideration when the fair 

market value of the goods and other assets or services furnished 

by the reporting organization isn't more than the fair market value 

of the goods and other assets or services received from the 

unrelated noncharitable exempt organization. The exception 

described below doesn't apply to transactions for less than 

adequate consideration.

Answer “Yes” for any transaction between the reporting 

organization and an unrelated noncharitable exempt 

organization if the “amount involved” is more than $500. The 

“amount involved” is the fair market value of the goods, services, 

or other assets furnished by the reporting organization.

Exception. If a transaction with an unrelated noncharitable 

exempt organization was for adequate consideration and the 

amount involved was $500 or less, answer “No” for that 

transaction.

Line 1b(3). Answer “Yes” for transactions in which the reporting 

organization was either the lessor or the lessee.

Line 1b(4). Answer “Yes” if either organization reimbursed 

expenses incurred by the other.

Line 1b(5). Answer “Yes” if either organization made loans to 

the other or if the reporting organization guaranteed the other's 

loans.

Line 1b(6). Answer “Yes” if either organization performed 

services or membership or fundraising solicitations for the other.

Line 1c. Complete line 1c regardless of whether the 

noncharitable exempt organization is related to or closely 

affiliated with the reporting organization. For purposes of this 

line, “facilities” includes office space and any other land, 

building, or structure whether owned or leased by, or provided 

free of charge to, the reporting organization or the noncharitable 

exempt organization.

Line 1d. Use this schedule to describe the transfers and 

transactions for which “Yes” was entered on lines 1a–c, earlier. 

You must describe each transfer or transaction for which the 

answer was “Yes.” You may combine all of the cash transfers 

(line 1a(1)) to each organization into a single entry. Otherwise, 

make a separate entry for each transfer or transaction.

Column (a). For each entry, enter the line number from lines 

1a–c. For example, if the answer was “Yes” to line 1b(3), enter 

“b(3)” in column (a).

Column (d). If you need more space, enter “See Attached” in 

column (d) and use an attached sheet for the description. If 

making more than one entry on line 1d, specify on the attached 

sheet which transfer or transaction you are describing.

Line 2. Reporting of certain relationships. Enter on line 2 

each noncharitable exempt organization that the reporting 

organization is related to or affiliated with, as defined earlier. If 

the control factor or the historic and continuing relationship factor 

(or both) is present at any time during the year, identify the 

organization on line 2 even if neither factor is present at the end 

of the year.

Don't enter unrelated noncharitable exempt organizations on 

line 2 even if transfers to or transactions with those organizations 

were entered on line 1. For example, if a one-time transfer to an 

unrelated noncharitable exempt organization was entered on 

line 1a(2), don't enter the organization on line 2.

Column (b). Enter the exempt category of the organization; 

for example, “501(c)(4).”

Column (c). In most cases, a simple description, such as 

“common directors” or “auxiliary of reporting organization,” will 

be sufficient. If you need more space, enter “See Attached” in 

column (c) and use an attached sheet to describe the 

relationship. If you are entering more than one organization on 

line 2, identify which organization you are describing on the 

attached sheet.

Signature

The return must be signed by the president, vice president, 

treasurer, assistant treasurer, chief accounting officer, or other 

corporate officer (such as tax officer) who is authorized to sign. A 

receiver, trustee, or assignee must sign any return that the 

authorized person is required to file for a corporation. If the return 

is filed for a trust, it must be signed by the authorized trustee or 

trustees. Sign and date the form and fill in the signer's title.

If an officer or employee of the organization prepares the 

return, the Paid Preparer Use Only area should remain blank. If 

someone prepares the return without charge, that person 

shouldn't sign the return.

Note. A paid preparer must sign the original or amended return 

by rubber stamp, mechanical device, or computer software 

program.

Paid Preparer

Generally, anyone who is paid to prepare the return must sign 

the return and fill in the other blanks in the Paid Preparer Use 

Only area. An employee of the filing organization isn't a paid 

preparer.

The paid preparer must:

• Sign the return in the space provided for the preparer's 

signature;

• Enter the preparer information;

• Enter the preparer tax identification number (PTIN); and

• Give a copy of the return to the organization, in addition to the 

copy to be filed with the IRS.

Failure to provide required information may result in a penalty 

for each violation under section 6695.

38 Instructions for Form 990-PF (2023)
Enter the paid preparer's PTIN, not the social security 

number (SSN), in the “PTIN” box in the paid preparer's 

block. Because this form is publicly disclosable, any 

information entered in this block will be publicly disclosed. For 

more information about PTINs, visit the IRS website at IRS.gov/

PTIN.

Paid Preparer Authorization

On the “Sign Here” line, check “Yes” if the IRS can contact the 

paid preparer who signed the return to discuss the return. This 

authorization applies only to the individual whose signature 

appears in the Paid Preparer Use Only section of Form 990-PF. It 

doesn't apply to the firm, if any, shown in that section.

By checking “Yes” to this box, the organization is authorizing 

the IRS to contact the paid preparer to answer any questions that 

arise during the processing of the return. The organization is also 

authorizing the paid preparer to:

• Give the IRS any information missing from the return;

• Call the IRS for information about processing the return; and

• Respond to certain IRS notices about math errors, offsets, 

and return preparation.

The organization isn't authorizing the paid preparer to bind 

the organization to anything or otherwise represent the 

organization before the IRS.

CAUTION

!

The authorization will automatically end no later than the due 

date (excluding extensions) for filing of the organization's Form 

990-PF for its next tax year. If the organization wants to expand 

the paid preparer's authorization or revoke it before it ends, see 

Pub. 947, Practice Before the IRS and Power of Attorney.

Check “No” if the IRS should contact the organization listed in 

the Heading section rather than the paid preparer.

How To Get Forms and Publications

Getting tax forms, instructions, and publications. Go to 

IRS.gov/Forms to download current and prior-year forms, 

instructions, and publications.

Ordering tax forms, instructions, and publications. Go to 

IRS.gov/OrderForms to order current forms, instructions, and 

publications; call 800-829-3676 to order prior-year forms and 

instructions. The IRS will process your order for forms and 

publications as soon as possible. Don’t resubmit requests 

you've already sent us. You can get forms and publications faster 

online.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United 

States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to 

figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the 

Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions 

must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax 

returns and return information are confidential, as required by section 6103. However, certain returns and return information of 

tax-exempt organizations and trusts are subject to public disclosure and inspection, as required by section 6104.

Estimates of Taxpayer Burden. These include Forms in the 990 series and attachments and Forms 1023, 1024, 1028, 5578, 

5884-C, 8038, 8038-B, 8038-CP, 8038-G, 8038-GC, 8038-R, 8038-T, 8038-TC, 8328, 8718, 8282, 8453-TE, 8453-X, 8868, 8870, 

8871, 8872, 8879-TE, 8886-T, 8899 and their schedules and all the forms tax-exempt organizations attach to their tax returns. Time 

spent and out-of-pocket costs are presented separately. Time burden includes the time spent preparing to file and to file, with 

recordkeeping representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and 

submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax 

preparation software costs. Note that these estimates do not include burden associated with post-filing activities. IRS operational data 

indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower post-filing burden.

Reported time and out-of-pocket cost burdens are national averages and include all associated forms and schedules, across all 

preparation methods and taxpayer activities. As a result, the averages don't necessarily reflect a “typical” case. Most taxpayers 

experience lower-than-average burden, with taxpayer burden varying considerably by taxpayer type.

Fiscal Year 2024 Form 990 Series Taxpayer Compliance Cost Estimates

Form 990 Form 990-EZ Form 990-PF Form 990-T Form 990-N

Projections of the Number of 

Returns To Be Filed with IRS 351,100 251,000 130,100 233,200 733,100

Estimated Average Total Time 

(Hours) 107 69 53 42 5

Estimated Average Total 

Out-of-Pocket Costs $2,900 $600 $2,200 $2,200 $20

Estimated Average Total 

Monetized Burden $9,900 $1,700 $4,600 $5,700 $100

Estimated Total Time (Hours) 37,710,000 17,400,000 6,940,000 9,790,000 3,660,000

Estimated Total Out-of-Pocket 

Costs $1,023,200,000 $152,200,000 $282,600,000 $506,400,000 $14,000,000

Estimated Total Monetized 

Burden $3,466,900,000 $425,200,000 $594,600,000 $1,324,000,000 $71,400,000

Note. Amounts above are for FY2024. Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case. Most taxpayers experience lower-than-average burden, 

with taxpayer burden varying considerably by taxpayer type. Detail may not add due to rounding.

Comments and suggestions. We welcome your comments about this publication and suggestions for future editions.

Instructions for Form 990-PF (2023) 39
You can send us comments through IRS.gov/FormComments. Or you can write to the Internal Revenue Service, Tax Forms and 

Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your 

comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send the form, tax questions, tax returns, 

or payments to the above address. Instead, see J. When and How To File, earlier.

40 Instructions for Form 990-PF (2023)
Exclusion Codes

Real property rental income that does not

depend on the income or prots derived

by the person leasing the property and is

excluded by section 512 (b)(3)

16—

General Exceptions Debt-Financed Income

Income exempt from debt-nanced

(section 514) provisions because at least

85% of the use of the property is for the

organization’s exempt purposes. (Note:

This code is only for income from the

15% or less non-exempt purpose use.)

(section 514(b)(1)(A))

Income from an activity that is not

regularly carried on (section 512(a)(1))

01— 30—

Income from an activity in which labor is a material income-producing factor and

substantially all (at least 85%) of the work

is performed with unpaid labor (section

513(a)(1))

02—

17— Rent from personal property leased with

real property and incidental (10% or less)

in relation to the combined income from

the real and personal property (section

512(b)(3))

Gross income from mortgaged property

used in research activities described in

section 512(b)(7), (8), or (9) (section

514(b)(1)(C))

Section 501(c)(3) organization—Income 31—

from an activity carried on primarily for

the convenience of the organization’s

members, students, patients, visitors,

ofcers, or employees (hospital parking

lot or museum cafeteria, for example)

(section 513(a)(2))

03—

18— Gain or loss from the sale of investments

and other non-inventory property and

from certain property acquired from

nancial institutions that are in

conservatorship or receivership (sections

512(b)(5) and (16)(A))

19— Gain or loss from the lapse or termination

of options to buy or sell securities or real

property, and on options and from the

forfeiture of good-faith deposits for the

purchase, sale, or lease of investment real

estate (section 512(b)(5))

Gross income from mortgaged property

used in any activity described in section

513(a)(1), (2), or (3) (section 514(b)(1)(D))

32—

20— Income from research for the United

States; its agencies or instrumentalities; or any state or political subdivision

(section 512(b)(7))

Section 501(c)(4) local association of

employees organized before May 27,

1969— Income from the sale of

work-related clothes or equipment and

items normally sold through vending

machines; food dispensing facilities; or

snack bars for the convenience of

association members at their usual places

of employment (section 513(a)(2))

04— Income from mortgaged property

(neighborhood land) acquired for exempt

purpose use within 10 years (section

514(b)(3))

33—

21— Income from research conducted by a college, university, or hospital (section

512(b)(8))

Income from mortgaged property

acquired by bequest or devise (applies to

income received within 10 years from the

date of acquisition) (section 514(c)(2)(B))

34—

22— Income from research conducted by an organization whose primary activity is

conducting fundamental research, the

results of which are freely available to the

general public (section 512(b)(9))

Income from the sale of merchandise,

substantially all of which (at least 85%)

was donated to the organization (section

513(a)(3))

05— Income from mortgaged property

acquired by gift where the mortgage was

placed on the property more than 5 years

previously and the property was held by

the donor for more than 5 years (applies

to income received within 10 years from

the date of gift) (section 514(c)(2)(B)) 

35—

23— Income from services provided under

license issued by a federal regulatory

agency and conducted by a religious

order or school operated by a religious

order, but only if the trade or business

has been carried on by the organization

since before May 27, 1959 (section

512(b)(15))

Specific Exceptions

Section 501(c)(3), (4), or (5) organization

conducting an agricultural or educational

fair or exposition—Qualied public

entertainment activity income (section

513(d)(2))

06— Income from property received in return

for the obligation to pay an annuity

described in section 514(c)(5)

36—

Income from mortgaged property that

provides housing to low and moderate

income persons, to the extent the

mortgage is insured by the Federal

Housing Administration (section 514(c)(6)).

(Note: In many cases, this would be

exempt function income reportable in

column (e). It would not be so in the case

of a section 501(c)(5) or (6) organization,

for example, that acquired the housing as

an investment or as a charitable activity.)

37—

Foreign Organizations

Section 501(c)(3), (4), (5), or (6)

organization—Qualied convention and

trade show activity income (section

513(d)(3))

07—

Foreign organizations only—Income from

a trade or business NOT conducted in the

United States and NOT derived from

United States sources (patrons) (section

512(a)(2))

24—

Income from hospital services described

in section 513(e)

08—

Income from noncommercial bingo games

that do not violate state or local law

(section 513(f))

09—

Social Clubs and VEBAs

Section 501(c)(7), (9), or (17)

organization—Non-exempt function

income set aside for a charitable, etc.,

purpose specied in section 170(c)(4)

(section 512(a)(3)(B)(i))

25—

Income from games of chance conducted

by an organization in North Dakota

(section 311 of the Decit Reduction Act

of 1984, as amended)

10— Income from mortgaged real property

owned by: a school described in section

170(b)(1)(A)(ii); a section 509(a)(3) afliated

support organization of such a school; a

section 501(c)(25) organization; or by a

partnership in which any of the above

organizations owns an interest if the

requirements of section 514(c)(9)(B)(vi) are

met (section 514(c)(9))

38—

Section 501(c)(7), (9), or (17)

organization—Proceeds from the sale of

exempt function property that was or will

be timely reinvested in similar property

(section 512(a)(3)(D))

26—

Section 501(c)(12) organization— Qualied

pole rental income (section 513(g)) and/or

member income (described in section

501(c)(12)(H))

11—

Income from the distribution of low-cost

articles in connection with the solicitation

of charitable contributions (section 513(h))

12—

Section 501(c)(9) or (17) organization—

Nonfunction income set aside for the

payment of life, sick, accident, or

other benets (section 512(a)(3)(B)(ii))

27—

Special Rules

Income from the exchange or rental of

membership or donor list with an

organization eligible to receive charitable

contributions by a section 501(c)(3)

organization; by a war veterans’

organization; or an auxiliary unit or society

of, or trust or foundation for, a war

veterans’ post or organization (section

513(h))

13—

Section 501(c)(5) organization—Farm

income used to nance the operation and

maintenance of a retirement home,

hospital, or similar facility operated by the

organization for its members on property

adjacent to the farm land (section

1951(b)(8)(B) of Public Law 94-455)

39—

Veterans’ Organizations

Section 501(c)(19) organization—Payments

for life, sick, accident, or health insurance

for members or their dependents that are

set aside for the payment of such insurance

benets or for a charitable, etc., purpose

specied in section 170(c)(4) (section

512(a)(4))

28—

Trade or Business

41— Gross income from an unrelated activity

that is regularly carried on but, in light of

continuous losses sustained over a

number of tax periods, cannot be

regarded as being conducted with the

motive to make a prot (not a trade or

business)

Modifications and Exclusions

Dividends, interest, payments with

respect to securities loans, annuities,

income from notional principal contracts,

other substantially similar income from

ordinary and routine investments, and

loan commitment fees, excluded by

section 512(b)(1)

14—

Section 501(c)(19) organization— Income

from an insurance set-aside (see code 28

above) that is set aside for payment of

insurance benets or for a charitable, etc.,

purpose specied in section 170(c)(4)

(Regs. 1.512(a)-4(b)(2))

29—

Royalty income excluded by section

512(b)(2)

15—

Annual dues, not exceeding $191 (subject

to ination), paid to a section 501(c)(5)

agricultural or horticultural organization

(section 512(d))

40—

Other

Receipt of qualied sponsorship

payments described in section 513(i)

42—

Exclusion of any gain or loss from the

qualied sale, exchange, or other

disposition of any qualifying browneld

property (section 512(b)(19))

43— Instructions for Form 990-PF (2023) 41
Index

A

Accounting methods 8

Accounting period 7

Adjusted net income 15

Amended return 8, 24

Amended returns, state 7

Annual return:

Amended 8

Copies to state officials 7

Extension for filing 8

Failure to file timely or completely 8

How to file 8

Purpose of form 2

State reporting requirements 7

Termination 13

When to file 8

Which parts to complete 3

Assets test 35

Attachments 14

Attorney 39

B

Bank account 26

Business meals 19

C

Capital gains and losses:

Basis 23

Gains 22

Losses 23

Charitable donation:

Substantiation of 17

Children 2

Contributions 19

Copy of old return 8

Currency 14

D

Definitions 4

Disqualified person 4

Distributable amount 33

Foundation manager 4

Gross investment income 15

Net investment income 15

Noncharitable exempt organization 37

Nonexempt charitable trust 4

Private foundation 4

Private operating foundation 4

Program-related investment 31

Qualifying distributions 33

Significant disposition 13

Substantial contraction 13

Taxable private foundation 4

Depreciation 19

Disqualified person 4

Disregarded entity 2, 30

Dissolution 12

Distributable amount 33

E

Elections 23, 34, 35

Endowment test 35

Estimated tax 9

Penalty 9

Excise tax based on excess business 

holdings 28

Excise tax based on excessive executive 

compensation 2, 29

Excise tax based on investment income:

Domestic exempt private foundations 23

Domestic taxable private foundations and 

section 4947(a)(1) nonexempt 

charitable trusts 23

Foreign organizations 23

Exempt operating foundation 

qualification 23

Extension for filing 8

F

Failure to file timely or completely 8

Failure to pay tax when due 9

Filing extension 8

Financial account 26

Foreign 26

Accounts 26

Foreign organizations 12, 14, 23

Foundation manager 4

G

Gifts 19

Grants 19

Gross investment income 15

Gross profit 18

Gross receipts 9

H

How To Get Forms and Publications 39

I

Income test 35

Incomplete return:

How to avoid 4

Penalties 8

Inventory 18

L

Large organization 9

Liquidation 12

M

Minimum investment return 31

Short tax year 33

N

Net investment income 15, 20

Business meals 19

Noncharitable exempt organization 37

Nonexempt charitable trust 4, 9, 26

Nonoperating private foundation 16, 17

Nonoperating private foundation 4

O

Other expenses 19

P

Paid preparer 38

Penalties:

Against responsible person 9

Estimated tax 9

Failure to disclose quid pro quo 

contributions 17

Failure to file timely or completely 8

Failure to make return available for public 

inspection 12

Failure to pay timely 9

Photographs of missing children 2

Private foundation 4

Private operating foundation 4, 15, 35

Program services 37

Program-related investment 31, 33

Public inspection 25

Relief 13

Publications:

Pub. 947, Practice Before the IRS and 

Power of Attorney 39

Q

Qualifying distributions 16, 17, 33, 34

Amounts set aside 33

Qualifying distributions (see the 

instructions for Part XII for an 

explanation of qualifying distributions) 

for any year. 17

R

Required electronic filing 8

Rounding 14

S

Schedule B (Form 990, 990–EZ, or 990–

PF) 16

Section 4943(g), exception from excise tax 

on excess business holdings 28

Self-dealing 28

Signature 38

Significant disposition 13

Significant involvement 30

State reporting requirements 7

Amended returns 7

Substantial contraction 12, 13

Substantial contributor 25

Support test 35

T

Taxable private foundation 4, 9

Termination 12, 14

Annual return 13

Special rules 13

Travel 19

W

When to file 8

Extension 8

Where to file 8

Which parts to complete 3

Who must file 2

42