2006 Instructions For Schedule A (Form 990 Or 990-Ez) (Page 10 of 15) in pdf

enrolled in meaningful numbers, that its

racially nondiscriminatory policy as to

segment or segments of the United

promotional activities and recruiting

students, to the extent that the school or

States need only maintain a record

efforts in each geographic area were

its principal official were aware of such

sufficient to indicate when and in what

reasonably designed to inform students of

statements.

publications their advertisements were

all racial segments in the general

placed.

4.04 Facilities and programs. A

communities within the area of the

4. Copies of all materials used by or

school must be able to show that all of its

availability of the school. The question

on behalf of the school to solicit

programs and facilities are operated in a

whether a school satisfies the preceding

contributions.

racially nondiscriminatory manner.

sentence will be determined on the basis

4.05 Scholarship and loan

of the facts and circumstances of each

7.02 Limitation.

programs. As a general rule, all

case.

1. For purposes of section 7.01, the

scholarship or other comparable benefits

racial composition of the student body,

procurable for use at any given school

faculty, and administrative staff may be

students from local communities and

must be offered on a racially

an estimate based on the best information

follows a racially nondiscriminatory policy

nondiscriminatory basis. Their availability

readily available to the school, without

as to students, the publicity requirement

on this basis must be known throughout

requiring student applicants, students,

may be satisfied by complying with

the general community being served by

faculty, or administrative staff to submit

section 4.02, supra. Such a school may

the school and should be referred to in

information to the school that the school

demonstrate that it follows a racially

the publicity required by this section in

otherwise does not require. For each

nondiscriminatory policy within the

order for that school to be considered

academic year, however, a record of the

meaning of the preceding sentence by

racially nondiscriminatory as to students. .

method by which racial composition is

showing that it currently enrolls students

. . [S]cholarships and loans that are made

determined must be maintained. . . .

of racial minority groups in meaningful

pursuant to financial assistance programs

2. The Service does not require that a

numbers. The question whether a school

favoring members of one or more racial

school release personally identifiable

satisfies the preceding sentence will be

minority groups that are designed to

records or personal information contained

determined on the basis of the facts and

promote a school’s racially

therein except in accordance with the

circumstances of each case. One of the

nondiscriminatory policy will not adversely

requirements of the ‘‘Family Educational

facts and circumstances that the Service

affect the school’s exempt status.

Rights and Privacy Act of 1974,’’ 20

will consider is whether the school’s

Financial assistance programs favoring

U.S.C. section 1232g (1974). Similarly,

promotional activities and recruiting

members of one or more racial groups

the Service does not require a school to

efforts in each area were reasonably

that do not significantly derogate from the

keep records the maintenance of which is

designed to inform students of all racial

school’s racially nondiscriminatory policy

prohibited under state or federal law.

segments in the general communities

similarly will not adversely affect the

within the area of the availability of the

school’s exempt status.

7.03 Exceptions. The records

school. The Service recognizes that the

4.06 Certification. An individual

described in section 7.01 need not be

failure by a school drawing its students

authorized to take official action on behalf

independently maintained for Internal

from local communities to enroll racial

of a school that claims to be racially

Revenue Service use if:

minority group students may not

nondiscriminatory as to students is

necessarily indicate the absence of a

1. Substantially the same information

required to certify annually, under

racially nondiscriminatory policy as to

that each of these records would provide

penalties of perjury, that to the best of his

students when there are relatively few or

has been included in a report or reports

or her knowledge and belief the school

no such students in these communities.

filed in accordance with law with an

has satisfied the applicable requirements

Actual enrollment is, however, a

agency or agencies of Federal, state, or

of sections 4.01 through 4.05 of the Rev.

meaningful indication of a racially

local government, and this information is

Proc. This certification is line 35 in Part V.

nondiscriminatory policy in a community

current within one year, and

4.07 Faculty and staff. The existence

in which a public school or schools

2. The school maintains copies of

of a racially discriminatory policy with

became subject to a desegregation order

these reports from which this information

respect to employment of faculty and

of a Federal court or otherwise expressly

is readily obtainable. Records described

administrative staff is indicative of a

became obligated to implement a

in section 7.01 providing information not

racially discriminatory policy as to

desegregation plan under the terms of

included in reports filed with an agency or

students. Conversely, the absence of

any written contract or other commitment

agencies must be maintained by the

racial discrimination in employment of

to which any Federal agency was a party.

school for Service use.

faculty and administrative staff is

The Service encourages schools to

indicative of a racially nondiscriminatory

7.04 Failure to maintain records.

satisfy the publicity requirement by the

policy as to students.

Failure to maintain or to produce upon the

methods described in subsection 1 of this

proper request the required records and

7.01 Specific records. Except as

section, regardless of whether a school

information will create a presumption that

provided in section 7.03, each exempt

considers itself within subsection 2,

the organization has failed to comply with

private school must maintain for a

because it believes these methods to be

these guidelines.

minimum period of three years, beginning

the most effective to make known a

with the year after the year of compilation

school’s racially nondiscriminatory policy.

Part VI-A. Lobbying

or acquisition, the following records for

In this regard it is each school’s

the use of the Service on proper request:

responsibility to determine whether

Expenditures by Electing

paragraph (a), (b), or (c) of subsection 2

1. Records indicating the racial

Public Charities

applies to it. On audit, a school must be

composition of the student body, faculty,

prepared to demonstrate that the failure

and administrative staff for each

Complete Part VI-A only for an eligible

to publish its racially nondiscriminatory

academic year.

organization that elected to be subject to

policy in accordance with subsection 1 of

2. Records sufficient to document that

the lobbying expenditure limitations of

this section was justified by the

scholarship and other financial assistance

section 501(h) by filing Form 5768 and for

application to it of paragraph (a), (b), or

is awarded on a racially nondiscriminatory

which the election was valid and in effect

basis.

for its tax year beginning in the year 2006.

must be prepared to demonstrate that it

3. Copies of all brochures,

has publicly disavowed or repudiated any

catalogues, and advertising dealing with

A public charity that makes a valid

statements purported to have been made

student admissions, programs, and

section 501(h) election may spend up to a

on its behalf (after November 6, 1975)

scholarships. Schools advertising

certain percentage of its exempt purpose

that are contrary to its publicity of a

nationally or in a large geographic

expenditures to influence legislation

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Instructions for Schedule A (Form 990 or 990-EZ)

2006 Instructions For Schedule A (Form 990 Or 990-Ez) Page 10

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