•
Line 3c. Conservation easements.
charities may elect the expenditure test of
Negotiating with creditors on behalf of
Answer “Yes” if the organization received
section 501(h). The expenditure test
consumers to lower interest rates, waive
or held one or more conservation
generally permits higher limits for
fees, adjust balances, or restore
easements during the year. In general, an
lobbying expenditures than allowed under
acceptable credit ratings;
•
easement is an interest in the land of
the substantial part test. Electing public
Offering, selling, or managing debt and/
charities are subject to the lobbying
another. A conservation easement is an
or loan consolidation services and
expenditure definitions of section 4911,
interest in the land of another for
programs or down payment assistance
which are generally more liberal than the
purposes that include environmental
services;
•
definitions under the substantial part test.
protection; the preservation of open
Acting as an escrow agent for debtors;
Section 4911 applies only to public
space; or the preservation of property for
or
•
historic, educational, or recreational
charities that made a valid section 501(h)
Participating in creditor Fair Share
purposes. For more information see
election by filing Form 5768, Election/
arrangements.
Notice 2004-41, 2004-28 I.R.B. 31.
Revocation of Election by an Eligible
Line 4a. Answer “Yes” if the organization
Section 501(c)(3) Organization To Make
is a sponsoring organization that
Attached schedule. If “Yes,” the
Expenditures To Influence Legislation.
maintains one or more donor advised
organization must attach a schedule that
funds.
Electing public charities. If the
includes the following information.
organization is an electing public charity,
A sponsoring organization is any
1. The number of easements held at
it must complete Part VI-A of this form.
organization which:
the beginning of the year, the acreage of
•
Is described in section 170(c), except
these easements and the number of
Nonelecting public charities. If the
for governmental organizations described
states where the easements are located.
organization checked “Yes” but is not an
in section 170(c)(1) or (2)(A);
electing public charity, it must complete
2. The number of easements and the
•
Is not a private foundation as defined in
Part VI-B and attach a statement giving a
acreage of these easements that the
section 509(a); and
detailed description of the organization’s
organization received or acquired during
•
Maintains one or more donor advised
lobbying activities.
the year.
funds.
3. The number of easements
All charities, both electing and
Generally, a donor advised fund is a
modified, sold, transferred, released, or
!
nonelecting, are absolutely
fund or account:
terminated during the year and the
prohibited from intervening in a
CAUTION
acreage of these easements. For each
1. That is separately identified by
political campaign for or against any
easement, explain the reason for the
reference to contributions of a donor or
candidate for an elective public office. If a
modification, sale, transfer, release or
donors;
charity does intervene in a political
termination. Also, identify the recipient (if
2. That is owned and controlled by a
campaign, it will lose both its tax-exempt
any), and show if the recipient was a
sponsoring organization; and
status and its eligibility to receive
qualified organization (as defined in
3. For which the donor or donor
tax-deductible charitable contributions.
section 170(h)(3) and the related
advisor has or reasonably expects to
Both the organization and its managers
regulations at the time of transfer).
have advisory privileges in the distribution
are subject to the tax on political
or investment of amounts held in the
4. Show the number of easements
expenditures under section 4955.
donor advised funds or accounts because
held for each of the following categories:
Line 2. See Part IV, Definitions, for the
of the donor’s status as a donor.
a. Easements on buildings or
meaning of the term family member.
structures;
A donor advisor is any person appointed
Lines 2a through 2e. These lines apply
b. Easements that encumber a golf
or designated by a donor to advise a
to both sides of a listed transaction.
course or portions of a golf course;
sponsoring organization on the
Reporting is required, for example,
distribution or investment of amounts held
c. Easements within or adjacent to
whether the exempt organization is a
in the donor’s fund or account.
residential developments and housing
payer or payee, buyer or seller, lender or
subdivisions, including easements related
Exception. A donor advised fund
borrower.
to the development of property; and
does not include any fund or account:
d. Conservation easements that were
Line 2d. Compensation or repayment.
1. That makes distributions only to a
acquired in a transaction described under
If the only compensation or repayment
single identified organization or
Purchase of Real Property from
relates to amounts the organization
governmental entity, or
Charitable Organizations in Notice
reported in Part V-A of Form 990, or Part
2. In which a person described in 3
2004-41 and if the organization acquired
IV of Form 990-EZ, check “Yes” and write
above gives advice about which
any such easements during the year.
“See Part V-A, Form 990,” or “See Part IV
individuals receive grants for travel, study,
5. The number of easements and the
of Form 990-EZ,” on the dotted line to the
or other similar purposes, if:
acreage of these easements that were
left of the entry space.
a. The person’s advisory privileges
monitored by physical inspection or other
are performed exclusively by such person
Line 3a. Scholarships, etc. The term
means during the tax year.
in his or her capacity as a committee
qualify in line 3a means that organizations
6. Total staff hours and a list of
member in which all of the committee
or individuals will use the funds the
expenses devoted to (legal fees, portion
members are appointed by the
organization provides for charitable
of staff salaries, etc.) incurred for
sponsoring organization;
purposes described in sections 170(c)(1)
monitoring and enforcing new or existing
b. No combination of donors or donor
and 170(c)(2).
easements during the tax year.
advisors (and related persons as defined
The term qualify also means that
7. Identify all easements on buildings
below) directly or indirectly control the
individual recipients belong to a charitable
or structures acquired after August 17,
committee;
class and the payments are to aid them.
2006, and show if each easement meets
c. All grants from the fund or account
Examples include:
the requirements of section 170(h)(4)(B).
are awarded on an objective and
•
Helping the aged poor;
nondiscriminatory basis following a
•
Training teachers and social workers
Line 3d. Answer “Yes” if the organization
procedure approved in advance by the
from underdeveloped countries; and
provides any of the following types of
board of directors of the sponsoring
•
Awarding scholarships to individuals.
credit counseling and/or debt
organization. The procedure must be
management activities:
designed to ensure that all grants meet
•
Educating and/or counseling
Line 3b. Section 403(b) annuity plan.
the requirements of sections 4945(g)(1),
consumers, in person, in writing, or using
Indicate whether the organization has a
(2), or (3); or
electronic means;
section 403(b) annuity plan available for
3. That is excepted under section
•
its employees.
Helping consumers consolidate debts;
4966(d)(2)(C). For example, see Notice
-3-
Instructions for Schedule A (Form 990 or 990-EZ)