(c)(3)- PF

Internal Revenue Service 

Tax Exempt and 

Government Entities 

Exempt Organizations 

Compliance Guide 

for 501(c)(3) Private 

Foundations 

Covers: 

Types of private foundations 

Activities that may jeopardize 

a foundation’s exempt status 

Federal information and tax returns 

that must be filed 

Recordkeeping - why, what, when 

Changes to be reported to the IRS 

Required public disclosures 

Resources for private foundations 
 

 

 

 

 5

0

1 What is a private foundation? . . . . . . . . . . . . . . . . . . . . . . . . . . . 2


What are the different types of private foundations?. . . . . . . . 2


What activities may jeopardize a private 


foundation’s tax-exempt status? . . . . . . . . . . . . . . . . . . . . . . . . 4
 

Private Benefit and Inurement. . . . . . . . . . . . . . . . . . . . . . . . . 5
 

Special Restrictions on Private Foundation Activities. . . . . . 5
 

Political Campaign Intervention . . . . . . . . . . . . . . . . . . . . . . . 7
 

Substantial Legislative Activities . . . . . . . . . . . . . . . . . . . . . . 8
 

What federal information and tax returns must be filed? . . . . 9


Form 990-PF, Return of Privation Foundation . . . . . . . . . . . . 9


Form 990-T, Exempt Organizations Business


IncomeTax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


Form 4720, Return of Certain Excise Taxes 


Under Chapters 41 and 42 of the Code . . . . . . . . . . . . . . 13
 

Employment Tax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
 

Why keep records? y keep records? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
 

Evaluate Charitable Programs. . . . . . . . . . . . . . . . . . . . . . . . 15
 

 


Monitor Budgetary Results . . . . . . . . . . . . . . . . . . . . . . . . . . 15
 

Prepare Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . 16
 

Prepare Annual Information Returns andTax Returns . . . . 16
 

Identify Sources of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . 16
 

Substantiate Revenues, Expenses and Deductions for
 

Unrelated Business IncomeTax (UBIT) Purposes . . . . . . 17
 

Comply with Grant-Making Procedures . . . . . . . . . . . . . . . . 17
 

What records should be kept? ecords should be kept? . . . . . . . . . . . . . . . . . . . . . . . . . 18
 

Accounting Periods and Methods. . . . . . . . . . . . . . . . . . . . . 18
 

Supporting Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
 

How long should records be kept? w long should records be kept?. . . . . . . . . . . . . . . . . . . . . . 22


How should changes be reported to the IRS? How should changes be reported to the IRS?. . . . . . . . . . . . . 23
 

Reporting Changes on Form 990-PF. . . . . . . . . . . . . . . . . . . 23
 

Determination Letter and 


Private Letter Ruling Requests . . . . . . . . . . . . . . . . . . . . . 24
 

Making Grants to Organizations or Individuals. . . . . . . . . . 26
 

Requesting Advance Approval of Scholarship or 


Educational Grant Procedures . . . . . . . . . . . . . . . . . . . . . 26
 

Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
 

What disclosur What disclosures are required? es are required?. . . . . . . . . . . . . . . . . . . . . . . . . 29
 

Public Inspection of Annual Returns and

Exemption Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . 29
 

Sale of Free Government Information . . . . . . . . . . . . . . . . . 30

Charitable Contributions – Substantiation and Disclosure. 30
 

Ho


 

How to get IRS assistance and inf w to get IRS assistance and information ormation . . . . . . . . . . . . . . 33
 

Specialized Assistance for Tax-Exempt Organizations. . . . . 33
 

Tax Publications for Exempt Organizations . . . . . . . . . . . . . 34
 

Forms for Exempt Organizations . . . . . . . . . . . . . . . . . . . . . 35
 

General IRS Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
 

 
1ederal tax law provides tax benefits to nonprofit 

(c)(3)
 

Federal tax law provides tax benefits to nonprofit 

organizations recognized as exempt from federal 

income tax under section 501(c)(3) of the Internal 

Revenue Code (Code).The Code requires that 

tax-exempt organizations must comply with federal 

tax law to maintain tax-exempt status and to avoid 

penalties. 

In Publication 4221-PF, the IRS addresses activities that 

could jeopardize a private foundation’s tax-exempt 

status. It identifies general compliance requirements 

on recordkeeping, reporting, and disclosure for exempt 

organizations (EO’s) that are also private foundations, 

including private operating foundation and non-operating 

private foundations. Content includes references to the 

statute,Treasury regulations, IRS publications and IRS 

forms with instructions. Publication 4221-PF is neither 

comprehensive nor intended to address every situation. 

To learn more about compliance rules and procedures 

that apply to organizations exempt from federal 

income tax under section 501(c)(3), see Publication 557, 

Tax-Exempt Status for Your Organization, and the Life 

Cycle of a Private Foundation on www.irs.gov/eo. Stay 

abreast of new EO information, also on this Web site, 

by signing up for the EO Update, a free newsletter for 

tax-exempt organizations and practitioners who represent them. For further assistance, consult a tax adviser. 

1 
What is a private foundation? What is a private foundation?

Every organization that qualifies for tax-exempt 

status under section 501(c)(3) of the Code is further 

classified as either a public charity or a private 

foundation. Under section 508, every organization 

is automatically classified as a private foundation 

unless it meets one of the exceptions listed in section 509(a). Private foundations typically have a 

single major source of funding (usually gifts from 

one family or corporation rather than funding from 

many sources) and most have as their primary 

activity the making of grants to other charitable 

organizations and to individuals, rather than the 

direct operation of charitable programs. 

What are the different types 

of private foundations? 

What are the different types 

of private foundations?

For tax purposes, it may be necessary to distinguish between the particular types of private foundations: private operating foundations, exempt 

operating foundations and grant-making (or nonoperating) private foundations. Some tax law provisions apply to all types of private foundations, 

while other rules only apply to particular types of 

private foundations. The organization’s exemption 

letter will indicate whether the organization has 

been classified as a private foundation, a private 

operating foundation or an exempt operating foundation. Private operating foundations and exempt 

operating foundations are relatively uncommon. 

2 
A private operating foundation is a private foundation that devotes most of its resources to the active 

conduct of its exempt activities as distinguished 

from the more common grant-making foundation 

that generally makes grants to other organizations 

for exempt purposes. A museum that is supported 

by a limited number of individuals would generally 

be an example of an operating foundation. A private foundation that makes grants to public charities or individuals in order to carry out its exempt 

purposes would generally be a private non-operating or grant-making foundation. However, grantmaking private foundations may conduct their own 

programs as well. 

While most of the restrictions and requirements 

that apply to private foundations also apply to 

private operating foundations, there are tax advantages to being classified as a private operating 

foundation. For example, charitable contributions to 

a private operating foundation qualify for a higher 

charitable deduction limit on the donor’s tax return. 

In order to demonstrate that it is a private operating 

foundation, an organization must meet an assets 

test, a support test, or an endowment test and demonstrate that it distributes substantially all (85% or 

more) of the lesser of its adjusted net income or 

minimum investment return directly for the active 

conduct of activities that further its exempt purposes. 

Certain private operating foundations, referred 

to as exempt operating foundations, are exempt 

from the excise tax on net investment income that 

applies to other operating and grant-making foundations.This type of operating foundation must 

have been publicly supported for at least 10 years 

3

0(c1)(3)- PF
and have a broadly representative board with limited participation by disqualified persons. This type 

of private operating foundation is extremely rare. 

A nonexempt charitable trust that has not obtained 

tax-exempt status under section 501(c)(3) is also 

treated as a private foundation where its unexpired interests are solely devoted to one or more 

charitable purposes and it is allowed to receive taxdeductible, charitable contributions. 

Access Publication 557, Tax-Exempt Status for Your 

Organization, instructions for Form 990-PF, and the 

Life Cycle of a Private Foundation at www.irs.gov/eo 

to learn about nonexempt charitable trusts under 

section 4947(a)(1) and the different types of private 

foundations. 

What activities may 

jeopardize a private foundation’s 

tax-exempt status? 

What activities may 

jeopardize a private foundation’s 

tax-exempt status?

Once a private foundation has completed the application process and has established that it is taxexempt under section 501(c)(3), the organization’s 

officers, directors, trustees and employees have 

an ongoing responsibility to ensure that the organization maintains its exempt status and meets its 

ongoing compliance responsibilities. 

A 501(c)(3) private foundation should be aware 

that if it does not restrict its participation in certain 

4 5
activities and does not absolutely refrain from 

others, it risks jeopardizing its tax-exempt status. 

The following four subsections summarize 

limitations on activities of private foundations. 

Private Benefit and Inurement 

A private foundation is prohibited from allowing 

more than an insubstantial accrual of benefits, 

including non-monetary benefits, to individuals 

or organizations. The intent is to ensure that a taxexempt organization serves a public interest, not 

a private one. If a private benefit is substantial, it 

could jeopardize the organization’s tax-exempt status. 

In addition, no part of an organization’s net earnings 

may inure to the benefit of a private shareholder or 

individual. This means that an organization is prohibited from allowing its income or assets to accrue 

to insiders. An example of prohibited inurement 

would include payment of unreasonable compensation to an insider. An insider is a person such as an 

officer, director, or a key employee who has a 

personal or private interest in the activities of the 

organization. Any amount of inurement may be 

grounds for loss of tax-exempt status. 

In addition to loss of the organization’s section 

501(c)(3) tax-exempt status, activities constituting 

inurement may result in the imposition of 

self-dealing excise taxes on individuals benefiting 

from certain transactions with a private foundation. 

Special Restrictions on 

Private Foundation Activities 

There is an excise tax on the net investment 

income of most domestic private foundations. 

5

50(c1)(3)- PF
In addition, tax law rules impose restrictions and 

requirements on private foundations through the 

foundation excise tax provisions. These restrictions 

and requirements include: 

■ restrictions on self-dealing between private 

foundations and their substantial contributors and 

other disqualified persons; 

■ requirements that foundations annually 

distribute income for charitable purposes; 

■ limits on foundation holdings in 

private businesses; 

■ restrictions on investments that might jeopardize 

the carrying out of exempt purposes; and 

■ provisions to ensure that expenditures further 

exempt purposes. 

Violation of these provisions gives rise to excise 

taxes and penalties against the private foundation 

and, in some cases, its managers, its substantial 

contributors, and certain related persons. The Code 

contains provisions that impose two-tier excise 

taxes on private foundations, foundation managers, 

or other disqualified persons that engage in certain 

prohibited acts. First-tier excise tax is automatically 

imposed if the foundation engages in a prohibited 

act, although in certain circumstances the tax may 

be abated, except in cases of self-dealing. Second 

tier taxes may be imposed if the foundation fails to 

take appropriate action to correct the violation within the correction period set out in the Code. Read 

the instructions for Form 4720 and the Life Cycle 

of a Private Foundation pages on www.irs.gov/eo 

for additional information about private foundation 

excise taxes. 

6 5
Political Campaign Intervention 

Private foundations are absolutely prohibited from 

directly or indirectly participating in, or intervening 

in, any political campaign on behalf of (or in opposition to) a candidate for public office. Contributions 

to political campaign funds or public statements 

of position made on behalf of the organization in 

favor of or in opposition to any candidate for public 

office clearly violate the prohibition against political 

campaign activity. Violation of this prohibition may 

result in revocation of tax-exempt status and/or 

imposition of certain excise taxes. 

Certain activities or expenditures may not be prohibited depending on the facts and circumstances. 

For example, the conduct of certain voter education activities (including the presentation of public 

forums and the publication of voter education 

guides) in a non-partisan manner do not constitute 

prohibited political campaign activity. In addition, 

other activities intended to encourage people to 

participate in the electoral process, such as voter 

registration and get-out-the-vote drives, would not 

constitute prohibited political campaign activity if 

conducted in a non-partisan manner. On the other 

hand, voter education or registration activities with 

evidence of bias that would favor one candidate 

over another, oppose a candidate in some manner, 

or have the effect of favoring a candidate or group 

of candidates, will constitute campaign intervention. 

The political campaign activity prohibition is not 

intended to restrict free expression on political 

matters by leaders of public charities speaking 

for themselves as individuals. However, to avoid 

7

50(c1)(3)- PF
jeopardizing the exemption of a foundation, organization leaders must avoid making partisan comments in official organization publications or at 

official functions and should clearly indicate that 

their comments are personal and not intended to 

represent the views of the organization. Go to www. 

irs.gov/eo for additional information about the prohibition against political campaign intervention. 

Legislative Activities 

A private foundation will jeopardize its tax-exempt 

status under section 501(c)(3) if a substantial part 

of its activities is attempting to influence legislation 

(commonly referred to as lobbying). Private foundations that spend money on lobbying activity will 

incur an excise tax on those expenditures; this tax 

is so significant that it generally acts as a lobbying 

prohibition. 

Legislation includes action by Congress, any state 

legislature, any local council, or similar governing body with respect to acts, bills, resolutions, or 

similar items (such as legislative confirmation of 

appointive office), or by the public in referendum, 

ballot initiative, constitutional amendment, or similar procedure. A foundation will be regarded as 

attempting to influence legislation if it contacts, or 

urges members of the public to contact, members 

or employees of a legislative body for the purpose 

of proposing, supporting, or opposing legislation, 

or if the foundation advocates the adoption or 

rejection of legislation. 

Whether a foundation’s attempts to influence legislation constitute a substantial part of its overall 

8 5
activities is determined on the basis of all the pertinent facts and circumstances in each case. The IRS 

considers a variety of factors, including the time 

devoted (by both compensated and volunteer workers) and the expenditures devoted by the foundation to the activity, when determining whether the 

lobbying activity is substantial. 

Under the substantial part test, a foundation that 

conducts excessive lobbying in any taxable year 

may lose its tax-exempt status, resulting in all of its 

income being subject to tax. In addition, a foundation is subject to an excise tax equal to five percent 

of its lobbying expenditures for the year in which it 

ceases to qualify for exemption. 

Further, a tax equal to five percent of the lobbying 

expenditures for the year may be imposed against 

organization managers, jointly and severally, who 

agree to the making of such expenditures knowing 

that the expenditures would likely result in loss of 

tax-exempt status. 

What federal information 

and tax returns must be filed? 

What federal information 

and tax returns must be filed?

Form 990-PF, Return of Private Foundation 

All private foundations are required to file Form 990-PF, 

Return of Private Foundation, annually whether they 

have taxable income for, or activity during, the year. 

Section 4940 of the Code imposes an excise tax of 

2% on the net investment income of most domestic 

9

50(c1)(3)- PF
tax-exempt private foundations, including private 

operating foundations. This tax must be reported 

on Form 990-PF and paid annually at the time for 

filing that return or in quarterly estimated tax 

installments if the total tax for the year is more 

than $500. Some exceptions apply. Exempt operating foundations are not subject to the tax. Further, 

some foundations are only required to pay a 

1% tax. To learn more about the Form 990-PF and 

Section 4940 taxes, see the Life Cycle of a Private 

Foundation at www.irs.gov/eo. 

The Form 990-PF must be filed by the 15th day 

of the fifth month after the end of the private 

foundation’s annual accounting period. For 

information concerning payment of estimated 

tax, see the instructions for Form 990-PF. 

Form 990-PF Schedule B 

If the private foundation receives money, securities, 

or other property valued at $5,000 or more directly 

or indirectly from any person during the year, it must 

complete Schedule B and attach it to Form 990-PF. 

e-filing Requirements 

Private foundations and charitable trusts that file 

Form 990-PF are required to file electronically, 

regardless of their asset size, if they file 250 returns 

a year (including income tax, employment and 

excise tax, and information returns such as Forms 

W-2’s and 1099’s). Other private foundations are 

given a choice to file Form 990-PF electronically. 

Click on the “IRS e-file” logo at www.irs.gov to get 

more information on e-filing. 

10 5
50 11 

(c1)(3)- PF

FILING PENALTIES FOR FORM 990-PF

If an organization fails to complete and file Form 990-

PF by the due date (taking into account any extensions 

granted) it will have to pay $20 for each day the return is 

late ($100 a day if it is a large organization that has gross 

receipts exceeding $1 million for the tax year), not to 

exceed the lesser of $10,000 ($50,000 for a large organization) or 5 percent of the organization’s gross receipts, 

unless it shows that the failure was due to reasonable 

cause. The IRS may make a written demand that the 

delinquent return be filed within a reasonable time after 

the date of mailing the demand. If the organization does 

not file by the date specified in the demand, the person 

or persons responsible for the failure to file will be subject to a penalty of $10 a day for each day after the date 

specified in the notice that the return is not filed unless 

it is shown that the failure to file is due to reasonable 

cause. The total amount imposed on all persons responsible for the failure to file is limited to $5,000. The 

penalty also applies to a failure to provide information 

required by the return, or a failure to file correct 

return information.

FILING PENALTIES FOR FORM 990-PF 

If an organization fails to complete and file Form 990­

PF by the due date (taking into account any extensions 

granted) it will have to pay $20 for each day the return is 

late ($100 a day if it is a large organization that has gross 

receipts exceeding $1 million for the tax year), not to 

exceed the lesser of $10,000 ($50,000 for a large organization) or 5 percent of the organization’s gross receipts, 

unless it shows that the failure was due to reasonable 

cause.The IRS may make a written demand that the 

delinquent return be filed within a reasonable time after 

the date of mailing the demand. If the organization does 

not file by the date specified in the demand, the person 

or persons responsible for the failure to file will be subject to a penalty of $10 a day for each day after the date 

specified in the notice that the return is not filed unless 

it is shown that the failure to file is due to reasonable 

cause.The total amount imposed on all persons responsible for the failure to file is limited to $5,000.The 

penalty also applies to a failure to provide information 

required by the return, or a failure to file correct 

return information. 

Form 990-T, Exempt Organization 

Business Income Tax Return 

A private foundation that participates in an 

unrelated trade or business also may be required 

to file a Form 990-T, Exempt Organization Business 

Tax Return, if the organization has met the $1,000 

unrelated trade or business gross receipts threshold. Net income from income producing activities 

is taxable if the activities: 

■ constitute a trade or business, 

■ are regularly carried on, and 

■ are not substantially related to the organization’s 

exempt purpose. 

The private foundation must pay quarterly 

estimated tax on unrelated business income if 

the organization expects its tax for the year to 

be $500 or more. Form 990-W, Estimated Tax on 
Unrelated Business Taxable Income for Tax-Exempt 

Organizations, is a worksheet to determine the 

amount of estimated tax payments required. 

Exceptions and Special Rules 

Income from certain business activities are excepted from the definition of unrelated business 

income, and earnings from these sources are not 

subject to the unrelated business income tax. 

Exceptions generally include business income from: 

■ activities, including fundraisers, that are conducted by volunteer workers, or where donated 

merchandise is sold; 

■ activities conducted for the convenience of 

members, students, patients or employees; 

■ qualified convention and trade shows; 

■ qualified sponsorship activities; and 

■ qualified bingo activities. 

Income from certain “passive” business activities 

including earnings from routine investments such 

as certificates of deposit, savings accounts, or stock 

dividends, royalties, certain rents from real property, 

and certain gains or losses from the sale of property are usually excluded from the calculation of 

unrelated business activity. 

Special rules apply to income derived from real 

estate or other investments purchased with 

borrowed funds. Such income is called “debt 

financed” income. Debt-financed income generally 

is subject to the unrelated business income tax. 

For more information about unrelated business 

income, read Publication 598, Tax on Unrelated 

Business Income of Exempt Organizations, 

12 5
instructions for Form 990-T, and Form 990-W, 

Estimated Tax for Unrelated Business Taxable 

Income for Tax Exempt Organizations. 

Form 4720, Return of Certain Excise 

Taxes Under Chapters 41 and 42 

of the Code 

A private foundation and its managers may be 

liable for two-tier excise taxes and be required 

to file Form 4720, Return of Certain Excise Taxes 

Under Chapters 41 and 42 of the Internal Revenue 

Code, if they violate certain restrictions and 

requirements imposed on private foundations. 

See Special Restrictions on Private Foundation 

Activities in a previous section of this publication. 

If a private foundation is required to file Form 4720, 

the return must be filed by the 15th day of the fifth 

month after the end of the organization’s annual 

accounting period. 

Taxes may be imposed if a private foundation 

engages in self dealing activities with substantial 

contributors or other disqualified persons. A private 

foundation may be subject to excise taxes if it fails 

to annually distribute the required portion of its 

income for charitable purposes or does not appropriately limit its holdings in private businesses. A 

private foundation is subject to excise tax liability 

if it makes investments that jeopardize its ability to 

carry out its exempt purposes or fails to ensure that 

its expenditures further exempt purposes. 

Read about situations in which two-tier excise taxes 

would be imposed, see the Life Cycle of a Private 

Foundation at www.irs.gov/eo, the instructions for 

Form 990-PF, and the instructions for Form 4720. 

13 50(c1)(3)- PF
Employment Tax Returns 

Like other employers, a private foundation that 

pays wages to employees must withhold, deposit, 

and pay employment tax, including federal income 

tax withholding and Social Security and Medicare 

(FICA) taxes. An organization must withhold federal 

income tax from employee wages and pay FICA 

on each employee who is paid more than $100 

in wages during a calendar year. To know how 

much income tax to withhold, a private foundation 

should have a Form W-4, Employee’s Withholding 

Allowance Certificate, on file for each employee. 

Employment taxes are reported on Form 941, 

Employer’s Quarterly Federal Tax Return. Any 

person who fails to withhold and pay employment 

tax may be subject to penalties. Private foundations 

do not pay federal unemployment tax (FUTA). 

Private foundations do not generally have to 

withhold or pay employment tax on payments 

to independent contractors, but they may have 

information reporting requirements. If a private 

foundation incorrectly classifies an employee as an 

independent contractor, it may be held liable for 

employment taxes for that worker. 

The requirements for withholding, depositing, 

reporting and paying employment taxes are explained 

in Publication 15, Circular E, Employer’sTax Guide. 

Publication 15-A, Employer’s Supplemental Tax Guide, 

can help with determining whether workers are 

employees or independent contractors. For details 

about employment tax responsibilities of private 

foundations, read Publication 557, Tax Exempt 

Status for Your Organizations and the IRS Web 

site at www.irs.gov/eo. 

14 5
Why keep records? Why keep records?

In general, a private foundation must keep books and 

records to show that it complies with tax rules. The 

organization must be able to document the sources of 

receipts and expenditures reported on Form 990-PF, 

Return of Private Foundation, as well as Form 990-T, 

Exempt Organizations Business Income Tax Return. 

See Prepare Annual Information and Tax Returns on 

page 16. If an organization does not keep required 

records, it may not be able to show that it continues 

to qualify for tax-exempt status or whether it is a private operating foundation or a non-operating private 

foundation. In addition, an organization may be unable 

to complete its returns accurately and may be subject 

to penalties described under What federal information 

returns, tax returns and notices must be filed? A good 

recordkeeping system will help an organization evaluate the success of its programs and monitor its budget, and aid in the preparation of financial statements 

and returns. 

Evaluate Charitable Programs 

A private foundation can use records to evaluate 

the success of its charitable program and determine 

whether the organization is achieving desired results. 

Good records can also help a charity identify problem 

areas and determine what changes it may need to 

make to improve performance. 

Monitor Budgetary Results 

Without proper financial records, it is difficult to assess 

whether the private foundation has been successful in 

adhering to budgetary guidelines. A good recordkeeping system is crucial to successful stewardship of a 

private foundation. 

15 50(c

1)(3)- PF
Prepare Financial Statements 

It is important to maintain revenue and expense 

statements and balance sheets to prepare accurate 

financial statements. A foundation can use these 

financial statements when working with banks, 

creditors, contributors, and funding organizations. 

Some states require private foundations to make 

audited financial statements publicly available. 

Prepare Annual Information 

Returns and Tax Returns 

Records must support income, expenses, and credits reported on Form 990-PF and other tax returns. 

Generally, these are the same records used to monitor programs and prepare financial statements. 

Books and records of an exempt organization must 

be available for inspection by the IRS. If the IRS 

examines returns, the private foundation must 

have records to explain items reported. Having a 

complete set of records will speed up the examination process. 

Identify Sources of Receipts 

A private foundation may receive money or property from many sources. With thorough recordkeeping a private foundation can identify the sources of receipts. The organization needs these records 

to separate program from non-program receipts 

and taxable from non-taxable income, and to establish whether it is a private operating foundation or 

private non-operating foundation as the foundation 

then must complete Schedule B of Form 990-PF 

as noted in What federal information returns, tax 

returns and notices must be filed? 

16 5
Substantiate Revenues, Expenses and 

Deductions for Unrelated Business 

Income Tax (UBIT) Purposes 

A public charity may need records to substantiate 

the amount, if any, of unrelated business taxable 

income. An organization must appropriately track 

the financial revenues and expenses subject to UBIT 

reporting in order to prepare its unrelated business 

income tax return, Form 990-T, Exempt Organization 

Income Tax Return. 

Comply with Grant-Making Procedures 

A private foundation that makes grants to individuals must keep adequate records and case histories 

to demonstrate that grants to individuals serve its 

charitable purposes. Case histories on grants to 

individuals must show names, addresses, purposes 

of grants, manner of selection, and relationship 

(if any) that the recipient has with any members, 

officers, trustees, or donors of the organization. If 

a private foundation distributes funds to other U.S 

organizations, records must show whether they 

are exempt under section 501(c)(3), and whether 

the recipient organizations are classified as public 

charities or private foundations. If a private foundation distributes funds to non-U.S. organizations or 

to U.S. organizations that are not tax-exempt under 

section 501(c)(3), its records must demonstrate that 

the foundation exercises expenditure responsibility 

over the use of funds to avoid penalties for taxable 

expenditures under section 4945. Visit the Life Cycle 

of a Private Foundation at www.irs.gov/eo for additional information about expenditure responsibility 

requirements and grants to foreign or non-exempt 

organizations. 

17 50(c

1)(3)- PF
What records should be kept? What records should be kept?

Except in a few cases, the law does not require a 

special kind of record. A private foundation can 

choose any recordkeeping system, suited to its 

activities, that clearly shows the organization’s 

income and expenses. The types of activities a 

private foundation conducts determines the type 

of records that should be kept for federal tax purposes. An organization should set up a recordkeeping system using an accounting method that is 

appropriate for proper monitoring and reporting of 

its financial activities for the tax year. If a private 

foundation has more than one program, it should 

keep complete records that appropriately identify 

the income and expense items that are attributable 

to each program. 

A recordkeeping system should generally include a 

summary of transactions, as well as schedules and 

journals that support the summary information. 

The books must show gross receipts, purchases, 

expenses (other than purchases), employment 

taxes, and assets. For most small organizations, the 

checkbook might be the main source for entries in 

the books, while larger organizations would need 

more sophisticated ledgers and records. In addition, a private foundation must keep documentation that supports entries in the books. 

Accounting Periods and Methods 

Private foundations must keep their financial 

records based on an annual accounting period 

called a tax year, in order to comply with annual 

reporting requirements. 

18 5
Accounting Periods - A tax year is usually 12 consecutive months. There are two kinds of tax years. 

calendar tax year This is a period of 12 consecutive 

months begining January 1 and 

ending December 31. 

fiscal tax year This is a period of 12 consecutive 

months ending on the last day of 

any month except December. 

Accounting Method - An accounting method is 

a set of rules used to determine when and how 

income and expenses are reported. A private 

foundation chooses an accounting method when 

it files its first annual return. There are two basic 

accounting methods: 

cash method	 Under the cash method, a private 

foundation reports income in 

the tax year received. It usually 

deducts expenses in the year paid. 

accrual method	 Under an accrual method, a private 

foundation generally records 

income in the tax year earned, 

(i.e., in the tax year in which a 

pledge is received, even though it 

may receive payment in a later 

year.) It records expenses in the tax 

year incurred, whether or not it 

pays the expenses that year. 

For more information about accounting periods 

and methods, see Publication 538, Accounting 

Periods and Methods, and the instructions to Form 

990-PF, Return of Private Foundation or Section 

4947(a) Nonexempt Charitable Trust Treated as a 

Private Foundation. 

Supporting Documents 

Organization transactions such as contributions, 

purchases, sales, and payroll will generate supporting documents. These documents — grant applications and awards, sales slips, paid bills, invoices, 

receipts, deposit slips, and canceled checks — 

contain information to be recorded in accounting 

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20 5

Gross receipts are the amounts received from all 

sources, including contributions. A private foundation 

should keep supporting documents that show the 

amounts and sources of its gross receipts. Documents 

that show gross receipts include: donor correspondence, 

pledge documents cash register tapes, bank deposit 

slips, receipt books, invoices, credit card charge slips, 

and Forms 1099-MISC, Miscellaneous Income.

Purchases are items bought, including any items resold 

to customers. If an organization produces items, it 

must account for any items sold to customers. Thus, for 

example, the organization must account for the cost of 

all raw materials or parts purchased for manufacture into 

finished products. Supporting documents should show 

the amount paid, and that the amount was for purchases. 

Documents for purchases include: canceled checks, cash 

register tape receipts, credit card sales slips, and invoices. 

These records will help a private foundation determine 

the value of its inventory at the end of the year. See 

Publication 538, Accounting Periods and Methods, for 

general information on methods for valuing inventory.

Expenses are the costs a private foundation incurs (other 

than purchases) to carry on its program. Supporting 

documents should show the amount paid and the 

purpose of the expense. Documents for expenses 

include: canceled checks, cash register tapes, contracts, 

account statements, credit card sales slips, invoices, 

and petty-cash slips for small cash payments.

Organizations that have employees must keep records 

of compensation and specific employment tax records. 

See Publication 15, Circular E, Employer’s Tax Guide, 

for details.

records. It is important to keep these documents 

because they support the entries in books and the 

entries on tax and information returns. Private foundations should keep them in an orderly fashion and 

in a safe place. For instance, organize these documents by year and type of receipt or expense. 

Records Management 

GROSS RECEIPTS 

Gross receipts are the amounts received from all 

sources, including contributions. A private foundation 

should keep supporting documents that show the 

amounts and sources of its gross receipts. Documents 

that show gross receipts include: donor correspondence, 

pledge documents cash register tapes, bank deposit 

slips, receipt books, invoices, credit card charge slips, 

and Forms 1099-MISC, Miscellaneous Income. 

PURCHASES, INCLUDING

ACCOUNTING FOR INVENTORY
 

Purchases are items bought, including any items resold 

to customers. If an organization produces items, it 

must account for any items sold to customers.Thus, for 

example, the organization must account for the cost of 

all raw materials or parts purchased for manufacture into 

finished products. Supporting documents should show 

the amount paid, and that the amount was for purchases. 

Documents for purchases include: canceled checks, cash 

register tape receipts, credit card sales slips, and invoices. 

These records will help a private foundation determine 

the value of its inventory at the end of the year. See 

Publication 538, Accounting Periods and Methods, for 

general information on methods for valuing inventory. 

EXPENSES 

Expenses are the costs a private foundation incurs (other 

than purchases) to carry on its program. Supporting 

documents should show the amount paid and the 

purpose of the expense. Documents for expenses 

include: canceled checks, cash register tapes, contracts, 

account statements, credit card sales slips, invoices, 

and petty-cash slips for small cash payments. 

EMPLOYMENT TAXES 

Organizations that have employees must keep records 

of compensation and specific employment tax records. 

See Publication 15, Circular E, Employer’s Tax Guide, 

for details. 
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Assets are the property, such as investments, buildings, 

and furniture that an organization owns and uses in its 

activities. Liabilities reflect the pecuniary obligations of 

the organization. A private foundation must keep records 

to verify certain information about its assets and liabilities. Records should show:

- when and how the asset was acquired

- whether any debt was used to acquire the asset

- documents that support mortgages, notes, loans or 

 other forms of debt

- purchase price

- cost of any improvements

- deductions taken for depreciation, if any

- deductions taken for casualty losses, if any, such as 

 losses resulting from fires or storms

- how the asset was used

- when and how the asset was disposed of

- selling price

- expenses of sale

Documents that may show the above information 

include: purchase and sales invoices, real estate closing 

statements, canceled checks, and financing documents. 

If a private foundation does not have canceled checks, 

it may be able to show payment with certain financial 

account statements prepared by financial institutions. 

These include account statements prepared for the financial institution by a third party. All information, including 

account statements must be highly legible. The following 

defines acceptable account statements.

IF payment is by: THEN statement must show:

check check number, amount, payee’s 

name, and date the check amount 

was posted to the account by the 

 financial institution

electronic amount transferred, payee’s name, 

funds transfer and date the transfer was posted 

to the account by the financial 

 institution

credit card amount charged, payee’s name, 

and transaction date

 

ASSETS & LIABILITIES 

Assets are the property, such as investments, buildings, 

and furniture that an organization owns and uses in its 

activities. Liabilities reflect the pecuniary obligations of 

the organization. A private foundation must keep records 

to verify certain information about its assets and liabilities. Records should show: 

- when and how the asset was acquired 

- whether any debt was used to acquire the asset 

- documents that support mortgages, notes, loans or 

 other forms of debt 

- purchase price 

- cost of any improvements 

- deductions taken for depreciation, if any 

- deductions taken for casualty losses, if any, such as 

 losses resulting from fires or storms 

- how the asset was used 

- when and how the asset was disposed of 

- selling price 

- expenses of sale 

Documents that may show the above information 

include: purchase and sales invoices, real estate closing 

statements, canceled checks, and financing documents. 

If a private foundation does not have canceled checks, 

it may be able to show payment with certain financial 

account statements prepared by financial institutions. 

These include account statements prepared for the financial institution by a third party. All information, including 

account statements must be highly legible.The following 

defines acceptable account statements. 

IF payment is by: THEN statement must show: 

check check number, amount, payee’s 

name, and date the check amount 

was posted to the account by the 

 financial institution 

electronic 

funds transfer 

amount transferred, payee’s name, 

and date the transfer was posted 

to the account by the financial 

 institution 

credit card amount charged, payee’s name, 

and transaction date 
How long should 

records be kept? 

How long should 

records be kept?

Private foundations must keep records for federal 

tax purposes for as long as they may be needed 

to document evidence of compliance with provisions of the Internal Revenue Code. Generally, this 

means the organization must keep records that 

support an item of income or deduction on a return 

until the statute of limitations for that return runs. 

The statute of limitations has run when the organization can no longer amend its return to claim a 

credit or refund, and the IRS can no longer assess 

additional tax. Generally, the statute of limitations 

runs three years after the date the return is due or 

filed, whichever is later. An organization may be 

required to retain records longer for other legal 

purposes, including state or local tax purposes. 

Record Retention Periods 

Record retention periods vary depending on the 

types of records and returns. 

Permanent Records – Some records should be kept 

permanently. These include the private foundation’s 

application for recognition of tax-exempt status, 

the determination letter recognizing tax-exempt 

status, and organizing documents, such as articles 

of incorporation and by-laws, with amendments, 

as well as board minutes. 

Employment Tax Records – If a private foundation has employees, it must keep employment tax 

records for at least four years after the date the tax 

becomes due or is paid, whichever is later. 

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How should changes 

be reported to the IRS?

Records for Non-Tax Purposes – When records are 

no longer needed for tax purposes, a private 

foundation should keep them until they are no longer needed for non-tax purposes. For example, a 

grantor, insurance company, creditor, or state agency may require that records be kept longer than the 

IRS requires. 

How should changes 

be reported to the IRS? 

Reporting Changes on Form 990-PF 

A private foundation must report name, address, 

structural and operational changes on its annual 

information return, Form 990-PF . A private foundation may also report these changes to the EO 

Determinations Office at the mailing address indicated in How to get IRS assistance and information 

at the end of this publication; however, reporting 

such changes to the EO Determinations office does 

not relieve the organization from reporting the 

changes on its annual return. 

TIP: Attach copies of any signed or state certified 

articles of incorporation, or association, constitution 

or trust instrument or other organization document, 

or the bylaws or other governing document showing changes. If signed or state certified copies of a 

government document are not available, an authorized officer may certify that the governing document provided is a complete and accurate copy of 

the document. 

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Determination Letter and 

Private Letter Ruling Requests 

A private foundation may request a copy of a lost 

exemption letter or an updated exemption letter 

that reflects a name or address change from the EO 

Determinations office. In addition, a private foundation that has had a change in its private foundation 

status should request a new determination letter 

from the EO Determinations office. See How to get 

IRS assistance and information for the appropriate 

address for the EO Determinations Office. 

The IRS will not make any determination regarding 

the effect of completed transactions on an organization’s tax exempt status. However, in certain 

circumstances an organization may request a determination letter or private letter ruling with regard to 

certain changes in structure and activities. 

An organization may request a determination letter 

regarding its private foundation status in certain 

situations. For example, as noted above, a determination letter will be issued to classify or reclassify an 

organization as a public charity or a private foundation, if appropriate. 

In some circumstances, a private foundation is 

required to give notice or receive advance approval 

from the IRS before undertaking a transaction. A 

foundation must request a determination letter, 

with respect to the following issues: 

■ advance approval of a scholarship program, and 

certain other grant-making procedures of private 

foundations; 

■ voluntary termination of a private foundation’s 

status, except by transferring assets to, or operating as, a public charity; 

24 5
 

■ certain determinations regarding application of 

the neighborhood land rule; 

■ status as an exempt operating foundation; 

■ establishment of a set-aside that may be counted 

toward the foundation’s annual minimum distribution amount; 

■ advance approval of private foundation’s voter 

registration activities; and 

■ certain changes in an organization’s accounting 

method and period. 

If a private foundation is unsure about whether proposed changes in its purposes or activities are consistent with its status as a tax-exempt organization 

or as a private foundation, it may want to request a 

private letter ruling. 

The IRS issues private letter rulings on proposed 

transactions and on completed transactions — if 

the request is submitted before the return is filed 

for the year in which the transaction was completed. 

The IRS generally does not issue rulings to private 

foundations on any other completed transactions. 

The IRS will issues letter rulings to private foundations on matters involving a private foundation’s 

tax-exempt status, its private foundation status, as 

well as other matters including issues under sections 501 through 514, 4912, 4940 through 4948, 

4955, 4958, 6033, 6104, and 6115. 

Consult www.irs.gov/eo for the appropriate procedures for preparing and submitting a request for a 

determination letter, private letter ruling, replacement exemption letter, or a letter reflecting a new 

name or address. For general information about 

reporting changes, you may contact EO Customer 

Service at (877)829-5500. 

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Making Grants to 

Organizations or Individuals 

Generally, if a private foundation intends to make 

grants to organizations or individuals and it did not 

describe the program in its exemption application, 

it should inform the IRS about the program. Funds 

the private foundation distributes to an individual 

as a grant must be made on a true charitable basis 

in furtherance of the purposes for which the foundation 

is organized. For example, the organization should be 

able to substantiate the basis for grants awarded to 

individuals to relieve poverty or under a scholarship 

or educational program. Publication 3883, Disaster 

Relief, Providing Assistance through Charitable 

Organizations, covers making grants to individuals in 

the case of a disaster or hardship situation. 

Requesting Advance Approval 

of Scholarship or Educational 

Grant Procedures 

As noted above, if a private foundation is beginning 

an individual grant program that provides scholarships, 

fellowships, educational loans, or other educational 

grants that were not described in its exemption application, it must request advance approval of its grantmaking procedures from the IRS. Advance approval is 

a one-time approval of the private foundation’s system 

of standards and procedures for awarding grants. 

Approval will apply to succeeding grant programs if 

the standards and procedures under which they are 

conducted do not differ materially from those described 

in the organization’s initial request for advance approval. 

To request advance approval, the private foundation 

should send a letter providing the information 

requested on Form 1023, Application for Recognition 

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

26 5
Revenue Code, Schedule H, to the Internal Revenue 

Service , Tax Exempt/Government Entities, Exempt 

Organizations Determinations Office, P.O. Box 2508, 

Cincinnati, OH 45201. 

Employer-related scholarship and loan programs must 

satisfy special requirements set out in Rev. Proc. 76-47, 

1976-2 C.B. 670, applicable to scholarship programs or 

Rev. Proc. 80-39, 1980-2 C.B. 772, applicable to educational loan programs. An employer-related grant program is one that provides grants to an employee or 

to a child or an employee of a particular employer. 

For information on the exclusion of scholarships from 

the income of an individual recipient, see Publication 

520, Scholarships and Fellowships. 

Termination 

When a private foundation dissolves or terminates 

its existence it should notify the IRS that it will 

no longer be filing annual returns. To do so, the 

organization sends a letter to the Internal Revenue 

Service, Tax Exempt/Government Entities, Exempt 

Organizations Determinations Office, P.O. Box 2508, 

Cincinnati, OH 45201. When the organization files its 

final Form 990-PF, Return of Private Foundation or 

Section 4947(a) Nonexempt Charitable Trust Treated 

as a Private Foundation, it should check the “Final 

Return” box in the header area on page 1 of the return. 

However, filing a final return alone will not terminate 

an organization’s private foundation status. Once 

an organization is subject to the special rules that 

apply to private foundations, it can only terminate 

its private foundation status by operating as a public 

charity, by transferring its assets to a section 509(a)(1) 

charity, or by paying a section 507(c) termination tax. 

27 50(c

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There are several ways a private foundation may 

terminate and avoid paying tax on its termination. 

An organization may voluntarily terminate its private 

foundation status and qualify as a public charity that 

meets the requirements of section 509(a)(1), (2), or 

(3). Before terminating its private foundation status, 

the organization must first notify the Internal Revenue 

Service, Tax Exempt/Government Entities, Exempt 

Organizations Determinations Office of its intention to 

qualify as a public charity, and it must meet the public 

charity requirements for a continuous 60-month period 

beginning with the first day of that tax year. The organization may request and receive an advance ruling of 

public charity status for this period. Immediately after 

the end of the 60-month period, it must establish that it 

has met the requirements of section 509(a)(1), (2), or (3). 

A private foundation also may voluntarily terminate 

by distributing all of its net assets to one or more 

public charities described in section 509(a)(1) of the 

Code. However, the recipient organization must have 

been in existence and have been a public charity for 

at least 60 continuous months. 

Generally, if a private foundation repeatedly violates 

the private foundation excise tax provisions, it may 

be terminated involuntarily and will be liable for tax 

under section 507(c) of the Code. 

Finally, a private foundation that transfers substantial 

assets to another private foundation under procedures 

set out in section 507(b)(2) has not terminated its private 

foundation status. In this case, the recipient foundation 

takes on any liabilities of the transferor foundation 

under the foundation excise tax provisions. 

Access the Life Cycle of a Private Foundation at 

www.irs.gov/eo for additional information about the 

termination process. 

28 5
What disclosures are required? What disclosures are required?

There are a number of disclosure requirements for 

private foundations. Detailed information on federal tax 

law disclosure requirements for 501(c)(3) tax-exempt 

organizations can be found in Publication 557, Tax 

Exempt Status for Your Organization on the IRS Web 

site at www.irs.gov/eo. 

Public Inspection of Annual Returns
 

and Exemption Applications
 

A private foundation must make the following documents available for public inspection and copying 

upon request and without charge, (except a reasonable 

charge for copying). The IRS also makes these documents available for public inspection and copying. 

Exemption Application – A private foundation must 

disclose its approved exemption application, Form 

1023, Application for Recognition of Exemption Under 

Section 501(c)(3) of the Internal Revenue Code, along 

with each of the following documents: 

■ all documents submitted with Form 1023; 

■ all documents the IRS requires the organization
 

to submit in support of its application; and
 

■ the determination letter issued by the IRS. 

Form 990-PF – A private foundation must disclose its 

annual information return, Form 990-PF, with schedules, 

attachments, and supporting documents filed with the 

IRS. Returns need to be available for disclosure for only 

three years after the due date or filing date of the return. 

Form 990-T– For returns filed after August 17, 2006, a 

private foundation must make its 990-T available for 

public inspection. Go to www.irs.gov/eo for information 

regarding how the returns are to be made public. 

NOTE: Form 990-T must be made available by the 

organization, but not by the IRS. 

29 50(c

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A private foundation may place reasonable restrictions 

on the time, place, and manner of in-person inspection and copying and may charge a reasonable fee for 

providing copies. A tax-exempt organization does not 

have to comply with individual requests for copies if 

it makes the documents widely available. This can be 

done by posting the documents on a readily accessible 

Web site. For details on disclosure rules and procedures for 501(c)(3) organizations, go to the Life Cycle of 

a Private Foundation and the instructions for Form 990 

and Form 990-EZ, and instructions for Form1023 

at www.irs.gov/eo. 

Sale of Free Government Information 

If a private foundation offers to sell goods or services 

that are available free from the federal government, 

the organization must disclose that fact in a conspicuous and easily recognized format. A private foundation 

that intentionally disregards this requirement is subject 

to a penalty. 

Charitable Contributions – 

Substantiation and Disclosure 

While many private foundations do not engage in 

fundraising activities, some do solicit contributions, 

and a foundation may need to be familiar with the 

tax rules requiring substantiation and disclosure rules 

imposed on foundations that receive certain quid pro 

quo contributions. 

Recordkeeping Rules 

A donor cannot claim a tax deduction for any cash, 

check or other monetary contribution made on or after 

January 1, 2007, unless the donor maintains a record 

of the contribution in the form of either a bank record 

(such as a cancelled check) or a written communication 

from the private foundation (such as a receipt or a 

30 5
letter) showing the name of the private foundation, 

the date of the contribution, and the amount of 

the contribution. 

Substantiation Rules 

A donor cannot claim a tax deduction for any single 

contribution of $250 or more unless the donor 

obtains a contemporaneous acknowledgment of the 

contribution from the recipient public charity. A public 

charity may assist the donor by providing a timely 

written statement including the name of the public 

charity, date, amount of the contribution, and description of any non-cash contributions. 

In addition, the acknowledgment should indicate 

whether any goods or services were provided in 

return for the contribution. If any goods or services 

were provided in return for a contribution, the 

organization should provide a good faith estimate 

of the value of goods or services provided in return 

for the contribution. 

The private foundation may either provide separate 

acknowledgments for each single contribution of 

$250 or more or one acknowledgment to substantiate 

several single contributions of $250 or more. Separate 

contributions are not aggregated for purposes of 

measuring the $250 threshold. 

Disclosure Rules That Apply to 

Quid Pro Quo Contributions 

Contributions are deductible only to the extent that 

they are gifts and no consideration is received in 

return. Depending on the circumstances, ticket purchases and similar payments made in conjunction 

with fundraising events may not qualify as charitable 

contributions in full. A contribution made by a donor 

in exchange for goods or services is known as a 

31 50(c

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PENALTIES

Penalties apply to organizations that do not comply with 

disclosure requirements and to persons responsible for 

the failure to comply.

quid pro quo contribution. A donor may only take a 

charitable contribution deduction to the extent that 

the contribution exceeds the fair market value of the 

goods and services the donor receives in return for 

the contribution. 

If a private foundation conducts fundraising events 

such as benefit dinners, shows, and membership 

drives where something of value is given to those 

in attendance, it must provide a written statement 

informing donors of the fair market value of the 

specific items or services it provided in exchange for 

contributions. Token items and services of intangible 

religious value need not be taken into account. A private foundation should provide the written disclosure 

statement in advance of any event, determine the fair 

market value of any benefit received, and state this 

information in fundraising materials such as solicitations, tickets, and receipts. The disclosure statement 

should be made, at the latest, at the time payment is 

received. Subject to certain exceptions, the disclosure 

responsibility applies to any fundraising circumstance 

where each complete payment, including the contribution portion, exceeds $75. 

Read Publication 1771, Charitable Contributions— 

Substantiation and Disclosure Requirements, and 

Publication 526, Charitable Contributions, for 

details on the federal tax law for organizations such 

as private foundations, that receive tax-deductible 

charitable contributions and for taxpayers who 

make contributions. 

PENALTIES 

Penalties apply to organizations that do not comply with 

disclosure requirements and to persons responsible for 

the failure to comply. 

32 5
How to get IRS assistance 

and information 

How to get IRS assistance 

and information

The IRS offers help, through assistors and with 

reading material which is accessible either online, 

via mail by telephone, and at IRS walk-in offices 

in many areas across the country. IRS forms and 

publications can be downloaded from the Internet 

and ordered by telephone. 

Specialized Assistance for 

Tax-exempt Organizations 

Get help with questions about applying for tax 

exempt status, annual filing requirements, and 

information about exempt organizations through 

IRS, Tax Exempt/Government Entities, Exempt 

Organizations (EO). 

EO Web site www.irs.gov/eo 

Highlights: 

■ The Life Cycle of a Private Foundation – details the 

compliance obligations of private foundations. 

■ Subscribe to the EO Update, a periodic newsletter 

with, information for tax-exempt organizations and 

tax practitioners who represent them. 

Web based training www.stayexempt.org 

Training modules: 

■ Tax Exempt Status 

■ Unrelated Business income 

■ Employment Issues 

■ Form 990 

■ Required Disclosures 

33 50(c

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EO Customer Service (877) 829-5500 

EO Determinations Office mailing address 

Internal Revenue Service 

TE/GE, EO Determinations Office 

P.O. Box 2508 

Cincinnati, OH 45201 

Tax Publications For Exempt 

Organizations 

Get publications via the Internet or by calling the 

IRS at (800) 829-3676. 

Pub 15, Circular E, Employer’s Tax Guide 

Pub 15-A, Employer’s Supplemental Tax Guide 

Pub 463, Travel, Entertainment, Gift, and 

Car Expenses 

Pub 517, Social Security and Other Information for 

Members of the Clergy and Religious Workers 

Pub 538, Accounting Periods and Methods 

Pub 557, Tax-Exempt Status for Your Organization 

Pub 583, Starting a Business and Keeping Records 

Pub 598, Tax on Unrelated Business Income of 

Exempt Organizations 

Pub 1771, Charitable Contributions – Substantiation 

and Disclosure Requirements 

Pub 1828, Tax Guide for Churches and Religious 

Organizations 

Pub 3833, Disaster Relief, Providing Assistance 

Through Charitable Organizations 

34 
Pub 4220, Applying for 501(c)(3) Tax-Exempt Status 

Pub 4221-PC, Compliance Guide for 501(c)(3) 

Public Charities 

Pub.4202, A Charity’s Guide to Vehicle Donations 

Pub.4203, A Donor’s Guide to Vehicle Donations 

Forms for Exempt Organizations 

Get forms via the Internet or by calling the IRS at 

(800) 829-3676. 

Form 941, Employer’s Quarterly Federal Tax Return 

Form 990, Return of Organization Exempt From 

Income Tax 

Form 990-EZ, Short Form Return of Organization 

Exempt From Income Tax 

Form 990-PF, Return of Private Foundation or 

Section 4947(a)(1) Nonexempt Charitable Trust 

Treated as a Private Foundation 

Schedule A, of Form 990 or 990-EZ, Supplementary 

Information – Organization Exempt Under Section 

501(c)(3) 

Schedule B, of Form 990, 990-EZ, or 990-PF, 

Schedule of Contributors 

Form 990-N, Electronic Notice (e-Postcard) For TaxExempt Organizations not Required To File Form 

990 or 990-EZ 

Form 990-T, Exempt Organization Business Income 

Tax Return 

Form 990-W, Estimated Tax on Unrelated Business 

Taxable Income for Exempt Organizations 

35 
Form 1023, Application for Recognition of 

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

Revenue Code 

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

and Trusts 

Form 4720, Return of Certain Excise Taxes Under 

Chapters 41 and 42 of the Internal Revenue Code 

Form 5578, Annual Certification of Racial NonDiscrimination for a Private School Exempt from 

Federal Income Tax 

Form 5768, Election/Revocation of Election by an 

Eligible Section 501(c)(3) Organization To Make 

Expenditures to Influence Legislation 

Form 8282, Donee Information Return 

Form 8283, Noncash Charitable Contributions 

Form 8734, Support Schedule for Advance 

Ruling Period 

Form 8868, Extension of Time To File an Exempt 

Organization Return 

General IRS Assistance 

Get materials on the latest tax laws, assistance with 

forms and publications, and filing information. 

IRS Web site www.irs.gov 

federal tax questions (800) 829-1040 

employment tax questions (800) 829-4933 

order IRS forms (800) 829-3676 

and publications 

36 

Department of the Treasury 

Internal Revenue Service 

w w w . i r s . g o v 

Publication 4221-PF(06-07)
 

Catalog Number 49830S