2006 Instructions For Schedule A (Form 990 Or 990-Ez) (Page 3 of 15) in pdf

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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;

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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;

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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

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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

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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

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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

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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

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Helping the aged poor;

nondiscriminatory basis following a

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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

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Awarding scholarships to individuals.

credit counseling and/or debt

organization. The procedure must be

management activities:

designed to ensure that all grants meet

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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

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its employees.

Helping consumers consolidate debts;

4966(d)(2)(C). For example, see Notice

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

2006 Instructions For Schedule A (Form 990 Or 990-Ez) Page 3

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