Instructions for Form 990

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2025

Instructions for Form 990

Return of Organization

Exempt From Income Tax

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code

(except private foundations)

Section references are to the Internal Revenue Code unless

otherwise noted.

Contents

Page

Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Phone Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Email Subscription . . . . . . . . . . . . . . . . . . . . . . . . . . 2

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

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

B. Organizations Not Required To File Form

990 or 990-EZ . . . . . . . . . . . . . . . . . . . . . . . . 3

C. Sequencing List To Complete the Form

and Schedules . . . . . . . . . . . . . . . . . . . . . . . . 4

D. Accounting Periods and Methods . . . . . . . . . . . 5

E. When, Where, and How To File . . . . . . . . . . . . 6

F. Extension of Time To File . . . . . . . . . . . . . . . . . 6

G. Amended Return/Final Return . . . . . . . . . . . . . 6

H. Failure-To-File Penalties . . . . . . . . . . . . . . . . . 6

I. Group Return . . . . . . . . . . . . . . . . . . . . . . . . . . 7

J. Requirements for a Properly Completed

Form 990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 8

Heading. Items A–M . . . . . . . . . . . . . . . . . . . . . . 8

Part I. Summary . . . . . . . . . . . . . . . . . . . . . . . . 10

Part II. Signature Block . . . . . . . . . . . . . . . . . . . 10

Part III. Statement of Program Service

Accomplishments . . . . . . . . . . . . . . . . . . . . . 11

Part IV. Checklist of Required Schedules . . . . . . 11

Part V. Statements Regarding Other IRS

Filings and Tax Compliance . . . . . . . . . . . . . . 15

Part VI. Governance, Management, and

Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Part VII. Compensation of Officers, Directors,

Trustees, Key Employees, Highest

Compensated Employees, and

Independent Contractors . . . . . . . . . . . . . . . . 25

Part VIII. Statement of Revenue . . . . . . . . . . . . . 37

Part IX. Statement of Functional Expenses . . . . . 42

Part X. Balance Sheet . . . . . . . . . . . . . . . . . . . . 47

Part XI. Reconciliation of Net Assets . . . . . . . . . . 50

Part XII. Financial Statements and Reporting . . . 50

Business Activity Codes . . . . . . . . . . . . . . . . . . . . . 52

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Appendix of Special Instructions to Form 990

Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Dec 9, 2025

Contents

Page

Appendix A. Exempt Organizations Reference

Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Appendix B. How To Determine Whether an

Organization’s Gross Receipts Are Normally

$50,000 (or $5,000) or Less . . . . . . . . . . . . . . . . 77

Appendix C. Special Gross Receipts Tests for

Determining Exempt Status of Section 501(c)

(7) and 501(c)(15) Organizations . . . . . . . . . . . . 77

Appendix D. Public Inspection of Returns . . . . . . . . . 78

Appendix E. Group Returns—Reporting

Information on Behalf of the Group . . . . . . . . . . . 81

Appendix F. Disregarded Entities and Joint

Ventures—Inclusion of Activities and Items . . . . . 83

Appendix G. Section 4958 Excess Benefit

Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Appendix H. Forms and Publications To File or

Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Appendix I. Use of Form 990 or 990-EZ To Satisfy

State Reporting Requirements . . . . . . . . . . . . . . 92

Appendix J. Contributions . . . . . . . . . . . . . . . . . . . . 92

Appendix K. Reporting Information for Section

501(c)(21) Black Lung Trusts . . . . . . . . . . . . . . . 95

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Future Developments

For the latest information about developments related to Form

990 and its instructions, such as legislation enacted after they

were published, go to IRS.gov/Form990.

Purpose of Form

Forms 990 and 990-EZ are used by tax-exempt organizations,

nonexempt charitable trusts, and section 527 political

organizations to provide the IRS with the information required by

section 6033.

An organization’s completed Form 990 or 990-EZ, and a

section 501(c)(3) organization’s Form 990-T, Exempt

Organization Business Income Tax Return, are generally

available for public inspection as required by section 6104.

Schedule B (Form 990), Schedule of Contributors, is available

for public inspection for section 527 organizations filing Form

990 or 990-EZ. For other organizations that file Form 990 or

990-EZ, parts of Schedule B (Form 990) can be open to public

inspection. See Appendix D. Public Inspection of Returns, and

the Instructions for Schedule B (Form 990) for more details.

Some members of the public rely on Form 990 or 990-EZ as

their primary or sole source of information about a particular

Instructions for Form 990 (2025) Catalog Number 11283J

Department of the Treasury Internal Revenue Service www.irs.gov

organization. How the public perceives an organization in such

cases can be determined by information presented on its return.

Photographs of Missing Children

The Internal Revenue Service 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 Form 990,

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

Monday through Friday.

Email Subscription

The IRS has established a subscription-based email service for

tax professionals and representatives of tax-exempt

organizations. Subscribers will receive periodic updates from the

IRS regarding exempt organization tax law and regulations,

available services, and other information. To subscribe, go to

IRS.gov/Charities-&-Non-Profits/Subscribe-to-ExemptOrganization-Update.

General Instructions

Overview of Form 990

Note: Terms in bold are defined in the Glossary of the

Instructions for Form 990.

Form 990 is an annual information return required to be filed with

the IRS by most organizations exempt from income tax under

section 501(a), and certain political organizations and

nonexempt charitable trusts. Parts I through XII of the form

must be completed by all filing organizations and require

reporting on the organization’s exempt and other activities,

finances, governance, compliance with certain federal tax filings

and requirements, and compensation paid to certain persons.

Additional schedules are required to be completed depending

upon the activities and type of the organization. By completing

Part IV, the organization determines which schedules are

required. The entire completed Form 990 filed with the IRS,

except for certain contributor information on Schedule B (Form

990), is required to be made available to the public by the IRS

and the filing organization (see Appendix D), and can be

required to be filed with state governments to satisfy state

reporting requirements. See Appendix I. Use of Form 990 or

990-EZ To Satisfy State Reporting Requirements.

Reminder: Don’t include social security numbers (SSNs)

on publicly disclosed forms. Because the filing organization

and the IRS are required to publicly disclose the organization’s

annual information returns, SSNs shouldn’t be included on this

form. By law, with limited exceptions, neither the organization nor

the IRS may remove that information before making the form

publicly available. Documents subject to disclosure include

statements and attachments filed with the form. For more

information, see Appendix D.

Helpful hints. The following hints can help you more efficiently

review these instructions and complete the form.

• See General Instructions, Section C, later, which provides

guidance on the recommended order for completing the form

and applicable statements.

• Throughout these instructions, “the organization” and the

“filing organization” both refer to the organization filing Form 990.

• Unless otherwise specified, information should be provided

for the organization’s tax year. For instance, an organization

should answer “Yes” to a question asking whether it conducted a

certain type of activity only if it conducted that activity during the

tax year.

• The examples appearing throughout the Instructions for Form

990 are illustrative only. They are for the purpose of completing

this form and aren’t all-inclusive.

• Instructions for the Form 990 schedules are published

separately from these instructions.

Caution: Organizations that have $1,000 or more for the tax

year of total gross income from all unrelated trades or

businesses must file Form 990-T to report and pay tax on the

resulting unrelated business taxable income (UBTI), in addition

to any required Form 990, 990-EZ, or 990-N.

A. Who Must File

Most organizations exempt from income tax under section

501(a) must file an annual information return (Form 990 or

990-EZ) or submit an annual electronic notice (Form 990-N),

depending upon the organization’s gross receipts and total

assets.

Tip: An organization may not file a “consolidated” Form 990 to

aggregate information from another organization that has a

different employer identification number (EIN), unless it is

filing a group return and reporting information from a

subordinate organization or organizations, reporting

information from a joint venture or disregarded entity (see

Appendix E. Group Returns—Reporting Information on Behalf of

the Group, and Appendix F. Disregarded Entities and Joint

Ventures—Inclusion of Activities and Items, later), or as

otherwise provided for in the Code, regulations, or official IRS

guidance. A parent-exempt organization of a section 501(c)(2)

title-holding company may file a consolidated Form 990-T with

the section 501(c)(2) organization, but not a consolidated Form

990.

Form 990 must be filed by an organization exempt from

income tax under section 501(a) (including an organization that

hasn’t applied for recognition of exemption) if it has either (1)

gross receipts greater than or equal to $200,000, or (2) total

assets greater than or equal to $500,000 at the end of the tax

year (with exceptions described below for organizations eligible

to submit Form 990-N and for certain organizations described

under Section B. Organizations Not Required To File Form 990

or 990-EZ, later). This includes:

• Organizations described in section 501(c)(3) (other than

private foundations), and

• Organizations described in other 501(c) subsections.

Gross receipts are the total amounts the organization

received from all sources during its tax year, without subtracting

any costs or expenses. See Appendix B. How To Determine

Whether an Organization’s Gross Receipts Are Normally

$50,000 (or $5,000) or Less, later, for a discussion of gross

receipts.

For purposes of Form 990 reporting, the term “section 501(c)

(3)” includes organizations exempt under sections 501(e) and (f)

(cooperative service organizations), 501(j) (amateur sports

organizations), 501(k) (childcare organizations), and 501(n)

(charitable risk pools). In addition, any organization described in

one of these sections is also subject to section 4958 if it obtains

a determination letter from the IRS stating that it is described in

section 501(c)(3).

Form 990-N. If an organization normally has gross receipts of

$50,000 or less, it must submit Form 990-N, if it chooses not to

file Form 990 or 990-EZ (with exceptions described below for

certain section 509(a)(3) supporting organizations and for

certain organizations described under Section B, later). See

Appendix B for a discussion of gross receipts.

2025 Instructions for Form 990

Form 990-EZ. If an organization has gross receipts less than

$200,000 and total assets at the end of the tax year less than

$500,000, it can choose to file Form 990-EZ, Short Form Return

of Organization Exempt From Income Tax, instead of Form 990.

See the Instructions for Form 990-EZ for more information. See

the special rules below regarding section 501(c)(21) black

lung trusts, controlling organizations under section 512(b)

(13), and sponsoring organizations of donor advised funds.

If an organization eligible to submit the Form 990-N or file the

Form 990-EZ chooses to file the Form 990, it must file a

complete return.

Foreign and U.S. territory organizations. Foreign

organizations and U.S. territory organizations as well as

domestic organizations must file Form 990 or 990-EZ unless

specifically excepted under General Instructions, Section B,

later. Report amounts in U.S. dollars and state what conversion

rate the organization uses. Combine amounts from inside and

outside the United States and report the total for each item. All

information must be written in English.

Section 501(c)(21) black lung trusts. The trustee of a trust

exempt from tax under section 501(a) and described in section

501(c)(21) must file Form 990 and not Form 990-EZ, unless the

trust normally has gross receipts in each tax year of not more

than $50,000 and can file Form 990-N.

Sponsoring organizations of donor advised funds. If

required to file an annual information return for the year,

sponsoring organizations of donor advised funds must file

Form 990 and not Form 990-EZ.

Controlling organizations described in section 512(b)(13).

A controlling organization of one or more controlled entities,

as described in section 512(b)(13), must file Form 990 and not

Form 990-EZ if it is required to file an annual information return

for the year and if there was any transfer of funds between the

controlling organization and any controlled entity during the year.

Section 509(a)(3) supporting organizations. A section

509(a)(3) supporting organization must file Form 990 or

990-EZ, even if its gross receipts are normally $50,000 or less,

and even if it is described in Rev. Proc. 96-10, 1996-1 C.B. 577,

or is an affiliate of a governmental unit described in Rev. Proc.

95-48,1995-2 C.B. 418, unless it qualifies as:

1. An integrated auxiliary of a church described in

Regulations section 1.6033-2(h);

2. The exclusively religious activities of a religious order; or

3. An organization, the gross receipts of which are normally

not more than $5,000, that supports a section 501(c)(3) religious

organization.

If the organization is described in (3) but not in (1) or (2), then it

must submit Form 990-N unless it voluntarily files Form 990 or

990-EZ.

Section 501(c)(7) and 501(c)(15) organizations. Section

501(c)(7) and 501(c)(15) organizations apply the same gross

receipts test as other organizations to determine whether they

must file Form 990, but use a different definition of gross receipts

to determine whether they qualify as tax exempt for the tax year.

See Appendix C. Special Gross Receipts Tests for Determining

Exempt Status of Section 501(c)(7) and 501(c)(15)

Organizations, later, for more information.

Section 527 political organizations. A tax-exempt political

organization must file Form 990 or 990-EZ if it had $25,000 or

more in gross receipts during its tax year, even if its gross

receipts are normally $50,000 or less, unless it meets one of the

exceptions for certain political organizations under General

Instructions, Section B, later. A qualified state or local political

organization must file Form 990 or 990-EZ only if it has gross

2025 Instructions for Form 990

receipts of $100,000 or more. Political organizations aren’t

required to submit Form 990-N.

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

nonexempt charitable trust described under section 4947(a)

(1) (if it isn’t treated as a private foundation) is required to file

Form 990 or 990-EZ, unless excepted under General

Instructions, Section B, later. Such a trust is treated like an

exempt section 501(c)(3) organization for purposes of

completing the form. Section 4947(a)(1) trusts must complete all

sections of the Form 990 and schedules that section 501(c)(3)

organizations must complete. All references to a section 501(c)

(3) organization in the Form 990, schedules, and instructions

include a section 4947(a)(1) trust (for instance, such a trust must

complete Schedule A (Form 990), Public Charity Status and

Public Support, unless otherwise specified). If such a trust

doesn’t have any taxable income under subtitle A of the Code, it

can file Form 990 or 990-EZ to meet its section 6012 filing

requirement and doesn’t have to file Form 1041, U.S. Income Tax

Return for Estates and Trusts.

Returns when exempt status not yet established. An

organization is required to file Form 990 under these instructions

if the organization claims exempt status under section 501(a) but

hasn’t established such exempt status by filing Form 1023,

Application for Recognition of Exemption Under Section 501(c)

(3) of the Internal Revenue Code; Form 1023-EZ, Streamlined

Application for Recognition of Exemption Under Section 501(c)

(3) of the Internal Revenue Code; Form 1024, Application for

Recognition of Exemption Under Section 501(a); or Form

1024-A, Application for Recognition of Exemption Under Section

501(c)(4) of the Internal Revenue Code, and receiving an IRS

determination letter recognizing tax-exempt status. In such a

case, the organization must check the “Application pending”

checkbox in item B of Form 990, page 1 (whether or not a Form

1023, 1023-EZ, 1024, or 1024-A has been filed) to indicate that

Form 990 is being filed in the belief that the organization is

exempt under section 501(a), but that the IRS hasn’t yet

recognized such exemption.

To be recognized as exempt retroactive to the date of its

organization or formation, an organization claiming tax-exempt

status under section 501(c) (other than 501(c)(29)) must

generally file an application for recognition of exemption (Form

1023, 1023-EZ, 1024, or 1024-A) within 27 months of the end of

the month in which it was legally organized or formed.

Caution: An organization that has filed a letter application for

recognition of exemption as a qualified nonprofit health

insurance issuer under section 501(c)(29), or plans to do so, but

hasn’t yet received an IRS determination letter recognizing

exempt status, must check the “Application pending” checkbox

on the Form 990, item B, page 1.

B. Organizations Not Required To File

Form 990 or 990-EZ

An organization doesn’t have to file Form 990 or 990-EZ even if it

has at least $200,000 of gross receipts for the tax year or

$500,000 of total assets at the end of the tax year if it is

described below (except for section 509(a)(3) supporting

organizations, which are described earlier). See General

Instructions, Section A. Who Must File, earlier, to determine if the

organization can file Form 990-EZ instead of Form 990. An

organization described in paragraph 10, 11, or 13 of this

Section B is required to submit Form 990-N unless it voluntarily

files Form 990 or 990-EZ, as applicable.

Certain religious organizations.

1. A church, an interchurch organization of local units of a

church, a convention or association of churches, or an integrated

auxiliary of a church as described in Regulations section

1.6033-2(h) (such as a men’s or women’s organization, religious

school, mission society, or youth group).

2. A church-affiliated organization that is exclusively

engaged in managing funds or maintaining retirement programs

and is described in Rev. Proc. 96-10. But see the filing

requirements for section 509(a)(3) supporting organizations

under General Instructions, Section A, earlier.

3. A school below college level affiliated with a church or

operated by a religious order described in Regulations section

1.6033-2(g)(1)(vii).

4. A mission society sponsored by, or affiliated with, one or

more churches or church denominations, if more than half of the

society’s activities are conducted in, or directed at, persons in

foreign countries.

5. An exclusively religious activity of any religious order

described in Rev. Proc. 91-20, 1991-1 C.B. 524.

Certain governmental organizations.

6. A state institution whose income is excluded from gross

income under section 115.

7. A governmental unit or affiliate of a governmental unit

described in Rev. Proc. 95-48. But see the filing requirements for

section 509(a)(3) supporting organizations under General

Instructions, Section A, earlier.

8. An organization described in section 501(c)(1). A section

501(c)(1) organization is a corporation organized under an Act of

Congress that is an instrumentality of the United States, and

exempt from federal income taxes.

Certain political organizations.

9. A political organization that is:

• A state or local committee of a political party,

• A political committee of a state or local candidate,

• A caucus or association of state or local officials, or

• Required to report under the Federal Election Campaign Act

of 1971 as a political committee (as defined in section 301(4) of

such Act).

Certain organizations with limited gross receipts.

10. An organization whose gross receipts are normally

$50,000 or less. Such organizations are generally required to

submit Form 990-N if they choose not to file Form 990 or

990-EZ. To determine what an organization’s gross receipts

“normally” are, see Appendix B.

11. Foreign organizations and organizations located in U.S.

territories, whose gross receipts from sources within the

United States are normally $50,000 or less and which didn’t

engage in significant activity in the United States (other than

investment activity). Such organizations, if they claim U.S. tax

exemption or are recognized by the IRS as tax exempt, are

generally required to submit Form 990-N if they choose not to file

Form 990 or 990-EZ.

If a foreign organization or U.S. territory organization is required

to file Form 990 or 990-EZ, then its worldwide gross receipts, as

well as assets, are taken into account in determining whether it

qualifies to file Form 990-EZ.

Certain organizations that file different kinds of annual

information returns.

12. A private foundation (including a private operating

foundation) exempt under section 501(c)(3) and described in

section 509(a). Use Form 990-PF, Return of Private Foundation

or Section 4947(a)(1) Trust Treated as Private Foundation. Also

use Form 990-PF for a taxable private foundation, a section

4947(a)(1) nonexempt charitable trust treated as a private

foundation, and a private foundation terminating its status by

becoming a public charity under section 507(b)(1)(B) (for tax

years within its 60-month termination period). If the organization

successfully terminates, then it files Form 990 or 990-EZ in its

final year of termination.

13. A religious or apostolic organization described in section

501(d). Use Form 1065, U.S. Return of Partnership Income.

14. A stock bonus, pension, or profit-sharing trust that

qualifies under section 401. Use Form 5500, Annual Return/

Report of Employee Benefit Plan.

Tip: Subordinate organizations in a group exemption which

are included in a group return filed by the central organization

for the tax year shouldn’t file a separate Form 990, 990-EZ, or

990-N for the tax year.

C. Sequencing List To Complete the

Form and Schedules

You may find the following list helpful. It limits jumping from one

part of the form to another to make a calculation or determination

needed to complete an earlier part. Certain later parts of the

form must first be completed in order to complete earlier parts. In

general, first complete the core form, and then complete

alphabetically Schedules A–N and Schedule R, except as

provided below. Schedule O (Form 990), Supplemental

Information to Form 990 or 990-EZ, should be completed as the

core form and schedules are completed. Note that all

organizations filing Form 990 must file Schedule O.

Tip: A public charity described in section 170(b)(1)(A)(iv),

170(b)(1)(A)(vi), or 509(a)(2) that isn’t within its initial 5 years of

existence should first complete Part II or III of Schedule A (Form

990) to ensure that it continues to qualify as a public charity for

the tax year. If it fails to qualify as a public charity, then it must file

Form 990-PF rather than Form 990 or 990-EZ, and check the

box for “Initial return of a former public charity” on page 1 of Form

990-PF.

1. Complete items A through F and H(a) through M in the

heading of Form 990, on page 1.

2. See the instructions for definitions of related

organization and control and determine the organization’s

related organizations required to be listed on Schedule R (Form

990), Related Organizations and Unrelated Partnerships.

3. Determine the organization’s officers, directors, trustees,

key employees, and five highest compensated employees

required to be listed on Form 990, Part VII, Section A.

4. Complete Parts VIII, IX, and X of Form 990.

5. Complete item G in the heading section of Form 990, on

page 1.

6. Complete Parts III, V, VII, XI, and XII of Form 990.

7. See the Instructions for Schedule L (Form 990),

Transactions With Interested Persons, and complete Schedule L

(Form 990) (if required).

8. Complete Part VI of Form 990. Transactions reported on

Schedule L (Form 990) are relevant to determining

independence of members of the governing body under Form

990, Part VI, line 1b.

9. Complete Part I of Form 990 based on information derived

from other parts of the form.

10. Complete Part IV of Form 990 to determine which

schedules must be completed by the organization.

11. Complete Schedule O (Form 990) and any other

applicable schedules (for “Yes” boxes that were checked in Part

IV). Use Schedule O (Form 990) to provide required

supplemental information and other narrative explanations for

questions on the core Form 990. For questions on Form 990

schedules, use the narrative part of each schedule to provide

supplemental narrative.

2025 Instructions for Form 990

12. Complete Part II, Signature Block, of Form 990.

D. Accounting Periods and Methods

These are the accounting periods covered under the law.

Accounting Periods

Calendar year. Use the 2025 Form 990 to report on the 2025

calendar-year accounting period. A calendar-year accounting

period begins on January 1 and ends on December 31.

Fiscal year. If the organization has established a fiscal-year

accounting period, use the 2025 Form 990 to report on the

organization’s fiscal year that began in 2025 and ended 12

months later. A fiscal-year accounting period should normally

coincide with the natural operating cycle of the organization. Be

certain to indicate in item A of Form 990, page 1, the date the

organization’s fiscal year began in 2025 and the date the fiscal

year ended in 2026.

Short period. A short accounting period is a period of less than

12 months, which exists when an organization first commences

operations, changes its accounting period, or terminates. If the

organization’s short year began in 2025, and ended before

December 31, 2025 (not on or after December 31, 2025), it may

use either 2024 Form 990 or 2025 Form 990 to file for the short

year. If using the 2024 return, provide the information for

designated years listed on the return, other than the tax year

being reported, as if the years shown in the form text and

headings were updated. For example, if filing for a short period

beginning in 2025 on the 2024 Form 990, provide the information

in Schedule A, Part II, for the tax years 2021–2025, rather than

for tax years 2020–2024. Check the “Initial return” box or the

“Final return/terminated” box in item B of the heading if either of

those situations applies.

Accounting period change. If the organization changes its

accounting period, it must file a Form 990 for the short period

resulting from the change. If you are filing a short period return

because you changed your accounting period, use the change of

accounting period field provided by the software provider to file.

Also, include the reason for the change, either “Form 1128 was

approved” or “Revenue Procedure 85-58 rules apply.”

If the organization has previously changed its annual

accounting period at any time 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-series filing requirement or income tax return filing

requirement at any time during that 10-year period, it must also

file a 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.

If an organization that submits Form 990-N changes its

accounting period, it must report this change on Form 990, Form

990-EZ, or Form 1128, or by sending a letter to Internal Revenue

Service, 1973 Rulon White Blvd., Ogden, UT 84201.

Accounting Methods

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

practice a taxpayer follows to determine the tax 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

2025 Instructions for Form 990

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, as modified by Rev. Proc. 2021-34,

2021-35 I.R.B. 337, section 9 of Rev. Proc. 2025-1, 2025-1 I.R.B.

1, and any successors, for general procedures for obtaining

consent to change an accounting method.

Caution: 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 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, as modified by Rev. Proc.

2021-34 and any successor, for general procedures for obtaining

consent to change an accounting method.

Caution: Depending on 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. 2025-23, 2025-24 I.R.B.

1476; and Rev. Proc. 2024-30, 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.

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. 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.

Adjustments required when changing an accounting method. A taxpayer, including a tax-exempt entity, that changes its

accounting method must generally calculate and report an

adjustment to ensure that no portion of the item being changed

is permanently omitted or duplicated (see section 481(a)).

However, depending on the specific method change, the IRS

may provide that an adjustment is not required or permitted. An

organization must report any adjustment required by section

481(a) in Parts VIII through XI and on Schedule D (Form 990),

Parts XI and XII, as applicable, and provide an explanation for

the change on Schedule O (Form 990).

Caution: Generally, a taxpayer, including a tax-exempt entity,

will recognize a positive section 481(a) adjustment (such as an

increase to income) ratably over 4 tax years and will recognize a

negative section 481(a) adjustment in full in the year of change.

See Rev. Proc. 2015-13, as modified by Rev. Proc. 2021-34 and

any successor, for general procedures for obtaining consent to

change an accounting method.

However, as discussed above, if a tax-exempt entity has not

yet adopted an accounting method for an item, a change in how

the entity reports the item for purposes of the Form 990 is not a

change in accounting method. In this case, an adjustment under

section 481(a) is not required or permitted.

State reporting. Many states that accept Form 990 in place of

their own forms require that all amounts be reported based on

the accrual method of accounting. If the organization prepares

Form 990 for state reporting purposes, it can file an identical

return with the IRS even though the return doesn’t agree with the

books of account, unless the way one or more items are reported

on the state return conflicts with the instructions for preparing

Form 990 for filing with the IRS.

Example 1. The organization maintains its books on the

cash receipts and disbursements method of accounting but

prepares a Form 990 return for the state based on the accrual

method. It could use that return for reporting to the IRS.

Example 2. A state reporting requirement requires the

organization to report certain revenue, expense, or balance

sheet items differently from the way it normally accounts for them

on its books. A Form 990 prepared for that state is acceptable for

IRS reporting purposes if the state reporting requirement doesn’t

conflict with the Instructions for Form 990.

An organization should keep a reconciliation of any

differences between its books of account and the Form 990 that

is filed. Organizations with audited financial statements are

required to provide such reconciliations on Schedule D (Form

990), Parts XI through XII.

See Pub. 538, Accounting Periods and Methods, and the

instructions for Forms 1128 and 3115, about reporting changes

to accounting periods and methods.

E. When, Where, and How To File

File Form 990 by the 15th day of the 5th month after the

organization’s accounting period ends (May 15th for a

calendar-year filer). If the due date falls on a Saturday, Sunday,

or legal holiday, file on the next business day. A business day is

any day that isn’t a Saturday, Sunday, or legal holiday.

If the organization is liquidated, dissolved, or terminated, file

the return by the 15th day of the 5th month after liquidation,

dissolution, or termination.

If the return isn’t filed by the due date (including any extension

granted), provide a reasonable-cause explanation giving the

reasons for not filing on time.

Required electronic filing. If you are filing a 2025 Form 990,

you are required to e-file.

Electronic filing is only available for the current tax year and

the 2 prior tax periods. If a return is being amended or filed

outside that current tax year or the 2 prior tax periods, it should

be paper-filed. Enter “The IRS no longer accepts e-file of the

20XX return year” at the top of page 1 of the return.

For additional information on the e-file requirement, including

information about when e-file ceases to be available for a given

tax year, go to IRS.gov/EOefile.

F. Extension of Time To File

Use Form 8868, Application for Extension of Time To File an

Exempt Organization Return or Excise Taxes Related to

Employee Benefit Plans, to request an automatic extension of

time to file.

G. Amended Return/Final Return

To amend the organization’s return for any year, file a new return

including any required schedules. Use the version of Form 990

applicable to the year being amended. The amended return

must provide all the information called for by the form and

instructions, not just the new or corrected information. Check the

“Amended return” box in item B in the heading area of the form.

Also, enter on Schedule O (Form 990) which parts and

schedules of the Form 990 were amended and describe the

amendments.

The organization can file an amended return at any time to

change or add to the information reported on a previously filed

return for the same period. It must make the amended return

available for inspection for 3 years from the date of filing or 3

years from the date the original return was due, whichever is

later.

If the organization needs a complete copy of its previously

filed return, it can file Form 4506-A, Request for a Copy of

Exempt or Political Organization IRS Form.

If the return is a final return, the organization must check the

“Final return/terminated” box in item B in the heading area of the

form, and complete Schedule N (Form 990), Liquidation,

Termination, Dissolution, or Significant Disposition of Assets.

Amended returns and state filing considerations. State law

may require that the organization send a copy of an amended

Form 990 return (or information provided to the IRS

supplementing the return) to the state with which it filed a copy of

Form 990 to meet that state’s reporting requirement. A state may

require an organization to file an amended Form 990 to satisfy

state reporting requirements, even if the original return was

accepted by the IRS.

H. Failure-To-File Penalties

Against the organization. Under section 6652(c)(1)(A), a

penalty of $25 a day, not to exceed the lesser of $13,000 or 5%

of the gross receipts of the organization for the year, can be

charged when a return is filed late, unless the organization

shows that the late filing was due to reasonable cause.

Organizations with annual gross receipts exceeding

$1,309,500 are subject to a penalty of $130 for each day failure

continues (with a maximum penalty for any one return of

$65,000). The penalty applies on each day after the due date

that the return isn’t filed.

Tax-exempt organizations that are required to e-file but don’t

are deemed to have failed to file the return. This is true even if a

paper return is submitted.

The penalty can also be charged if the organization files an

incomplete return, such as by failing to complete a required line

item or a required part of a schedule. To avoid penalties and

having to supply missing information later:

• Complete all applicable line items;

2025 Instructions for Form 990

• Unless instructed to skip a line, answer each question on the

return;

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

requiring an amount or other information to be reported; and

• Provide required explanations as instructed.

Also, this penalty can be imposed if the organization’s return

contains incorrect information. For example, an organization that

reports contributions net of related fundraising expenses can be

subject to this penalty.

Use of a paid preparer doesn’t relieve the organization of its

responsibility to file a complete and accurate return.

Against responsible person(s). If the organization doesn’t file

a complete return or doesn’t furnish correct information, the IRS

will send the organization a letter that includes a fixed time to

fulfill these requirements. After that period expires, the person

failing to comply will be charged a penalty of $10 a day. The

maximum penalty on all persons for failures for any one return

shall not exceed $6,500.

There are also penalties (fines and imprisonment) for willfully

not filing returns and for filing fraudulent returns and statements

with the IRS (see sections 7203, 7206, and 7207). States can

impose additional penalties for failure to meet their separate

filing requirements.

Automatic revocation for nonfiling for 3 consecutive years.

The law requires most tax-exempt organizations 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 exceptions to

this requirement, go to Annual Exempt Organization Return:

Who Must File. If an organization fails to file an annual return or

submit a notice as required for 3 consecutive years, its

tax-exempt status is automatically revoked on and after the due

date for filing its third annual return or notice. Organizations that

lose their tax-exempt status may need to file income tax returns

and pay income tax, but may apply for reinstatement of

exemption. For details, go to IRS.gov/EO.

I. Group Return

A central, parent, or similar organization can file a group return

on Form 990 for two or more subordinate or local organizations

that are:

• Affiliated with the central organization at the time its tax year

ends,

• Subject to the central organization’s general supervision or

control,

• Exempt from tax under a group exemption letter that is still in

effect, and

• Using the same tax year as the central organization.

The central organization can’t use a Form 990-EZ for the

group return.

A subordinate organization may choose to file a separate

annual information return instead of being included in the group

return.

If the central organization is required to file a return for itself,

it must file a separate return and can’t be included in the group

return. See Regulations section 1.6033-2(d)(1). See General

Instructions, Section B, earlier, for a list of organizations not

required to file.

Every year, each subordinate organization must authorize the

central organization in writing to include it in the group return and

must declare, under penalties of perjury, that the authorization

and the information it submits to be included in the group return

are true and complete.

The central organization should send the annual information

update required to maintain a group exemption ruling (a separate

requirement from the annual return) to:

2025 Instructions for Form 990

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0027

For special instructions regarding answering certain Form 990

questions about parts or schedules in the context of a group

return, see Appendix E.

J. Requirements for a Properly

Completed Form 990

All organizations filing Form 990 must complete Parts I through

XII, Schedule O (Form 990), and any schedules for which a “Yes”

response is indicated in Part IV. If an organization isn’t required

to file Form 990 but chooses to do so, it must file a complete

return and provide all of the information requested, including the

required schedules.

Public inspection. In general, an organization filing Form 990

must make its information return (including all schedules and

attachments) available for public inspection. However, note the

special rules for Schedule B (Form 990), a required schedule for

certain organizations that file Form 990.

Specifically, section 6104 requires a tax-exempt organization

to make its information returns available for public inspection and

to either (a) provide copies of its information returns upon

request (in person or via mail), or (b) make the documents

“widely available” via the Internet. Note, an organization is still

required to make information returns available for public

inspection even when its information returns are “widely

available” via the Internet. See Regulations sections

301.6104(d)-1 through -3.

For more information on public inspection requirements and

information on what constitutes “widely available,” see Appendix

D, and Pub. 557, Tax-Exempt Status for Your Organization.

Signature. A Form 990 isn’t complete without a proper

signature. For details, see the instructions under Part II later.

Recordkeeping. The organization’s records should be kept for

as long as they may be needed for the administration of any

provision of the Internal Revenue Code. Usually, records that

support an item of income, deduction, or credit must be kept for

a minimum of 3 years from the date the return is due or filed,

whichever is later. Keep records that verify the organization’s

basis in property for as long as they are needed to figure the

basis of the original or replacement property. Applicable law and

an organization’s policies can require that the organization retain

records longer than 3 years. Form 990, Part VI, line 14, asks

whether the organization has a document retention and

destruction policy.

The organization should also keep copies of any returns it has

filed. They help in preparing future returns and in making

computations when filing an amended return.

Rounding off to whole dollars. The organization must round

off cents to whole dollars on the returns and schedules, unless

otherwise noted for particular questions. To round, drop amounts

under 50 cents and increase amounts from 50 to 99 cents to the

next dollar. For example, $1.49 becomes $1 and $2.50 becomes

$3. If the organization has 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.

Completing all lines. Make an entry (including -0- when

appropriate) on all lines requiring an amount or other information

to be reported. Don’t leave any applicable lines blank, unless

expressly instructed to skip that line. If answering a line is

predicated on a “Yes” answer to the preceding line, and if the

organization’s answer to the preceding line was “No,” then leave

the “If Yes” line blank.

All filers must file Schedule O (Form 990). Certain questions

require all filers to provide an explanation on Schedule O (Form

990). In general, answers can be explained or supplemented on

Schedule O (Form 990) if the allotted space on the form or other

schedule is insufficient, or if a “Yes” or “No” answer is required

but the organization wishes to explain its answer.

Missing or incomplete parts of the form and/or required

schedules may result in the IRS contacting you to obtain the

missing information. Failure to supply the information may result

in a penalty being assessed to your account. For tips on filing

complete returns, go to IRS.gov/Charities.

Reporting proper amounts. Some lines request information

reported on other forms filed by the organization (such as Forms

W-2, 1099, and 990-T). If the organization is aware that the

amount actually reported on the other form is incorrect, it must

report on Form 990 the information that should have been

reported on the other form (in addition to filing an amended form

with the proper amount).

In general, don’t report negative numbers, but use -0- instead

of a negative number, unless the instructions provide otherwise.

Report revenue and expenses separately and don’t net related

items, unless otherwise provided.

Inclusion of activities and items of disregarded entities

and joint ventures. An organization must report on its Form

990 all of the revenues, expenses, assets, liabilities, and net

assets or funds of a disregarded entity of which it is the sole

member, and must report on its Form 990 its share of all such

items of a joint venture or other investment or arrangement

treated as a partnership for federal income tax purposes. This

includes passive investments. In addition, the organization must

generally report activities of a disregarded entity or a joint

venture on the appropriate parts or schedules of Form 990. For

special instructions about the treatment of disregarded entities

and joint ventures for various parts of the form, see Appendix F.

Reporting information from third parties. Some lines

request information that the organization may need to obtain

from third parties, such as compensation paid by related

organizations; family and business relationships between

officers, directors, trustees, key employees, and certain

businesses they own or control; the organization’s share of the

income and assets of a partnership or joint venture in which it

has an ownership interest; and certain transactions between the

organization and interested persons. The organization should

make reasonable efforts to obtain this information. If it is unable

to obtain certain information by the due date for filing the return,

it should file Form(s) 8868 to request a filing extension. See

General Instructions, Section F, earlier. If the organization is

unable to obtain this information by the extended, due date after

making reasonable efforts, and isn’t certain of the answer to a

particular question, it may make a reasonable estimate, where

applicable, and explain on Schedule O.

Assembling Form 990, Schedules, and

Attachments

Before filing Form 990, assemble the package of forms,

schedules, and attachments in the following order.

1. Core form with Parts I through XII completed, filed in

numerical order.

2. Schedules, completed as applicable, filed in alphabetical

order (see Form 990, Part IV, for required schedules).

3. Attachments, completed as applicable. These include (a)

name change amendment to organizing document required by

item B on page 1; (b) list of subordinate organizations

included in a group return required by item H on page 1; (c)

articles of merger or dissolution, resolutions, and plans of

liquidation or merger required by Schedule N (Form 990); and

(d) for hospital organizations only, a copy of the most recent

audited financial statements.

Don’t attach materials not authorized in the instructions or not

otherwise authorized by the IRS.

Caution: To facilitate the processing of your return, don’t

password protect or encrypt PDF attachments. Password

protecting or encrypting a PDF file that is attached to an e-filed

return prevents the IRS from opening the attachment.

Specific Instructions

Heading. Items A–M

Complete items A through M.

Item A. Accounting period. File the 2025 return for calendar

year 2025 and fiscal years that began in 2025 and ended in

2026. For a fiscal-year return, fill in the tax year space at the top

of page 1. See General Instructions, Section D, earlier, for

additional information about accounting periods.

Item B. Checkboxes. The following checkboxes are under item

Address change. Check this box if the organization changed

its address and hasn’t reported the change on its most recently

filed Form 990; 990-EZ; 990-N; or 8822-B, Change of Address or

Responsible Party—Business, or in correspondence to the IRS.

If a change in address occurs after the return is filed, use

Form 8822-B to notify the IRS of the new address.

Name change. Check this box if the organization changed its

legal name (not its “doing business as” name) and if the

organization hasn’t reported the change on its most recently filed

Form 990 or 990-EZ or in correspondence to the IRS. If the

organization changed its name, attach the following documents.

IF the organization is. . .

THEN attach. . .

a corporation

a copy of the amendment to the

articles of incorporation and proof of

filing with the appropriate state

authority.

a trust

a copy of the amendment to the trust

instrument, or a resolution to amend

the trust instrument, showing the

effective date of the change of name

and signed by at least one trustee.

an unincorporated association

a copy of the amendment to the

articles of association, constitution, or

other organizations answer “No.”

Line 2. Answer “Yes” if any of the following are satisfied.

• A section 501(c)(3) organization met the 331/3% support test

of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi);

checks the box on Schedule A (Form 990), Part II, line 13, 16a,

or 16b; and received from any one contributor, during the year,

contributions of the greater of $5,000 (in money or property) or

2% of the amount on Form 990, Part VIII, line 1h. An organization

filing Schedule B (Form 990) can limit the contributors it reports

on Schedule B (Form 990) using this greater-than-$5,000/2%

threshold only if it checks the box on Schedule A (Form 990),

Part II, line 13, 16a, or 16b.

• A section 501(c)(3) organization didn’t meet the 331/3%

support test of the regulations under sections 509(a)(1) and

170(b)(1)(A)(vi), and received during the year contributions of

$5,000 or more from any one contributor.

• A section 501(c)(7), 501(c)(8), or 501(c)(10) organization

received, during the year, (a) contributions of any amount for

use exclusively for religious, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty to children

or animals; or (b) contributions of $5,000 or more not exclusively

for such purposes from any one contributor.

• Any other organization that received, during the year,

contributions of $5,000 or more from any one contributor.

Caution: Don’t attach substitutes for Schedule B (Form 990).

Line 3. All organizations must answer this question, even if they

aren’t subject to a prohibition against political campaign

activities. Answer “Yes” whether the activity was conducted

directly or indirectly through a disregarded entity or a joint

venture or other arrangement treated as a partnership for

federal income tax purposes and in which the organization is an

owner.

Line 4. Complete only if the organization is a section 501(c)(3)

organization. Other organizations leave this line blank. Answer

“Yes” if the organization engaged in lobbying activities or had a

section 501(h) election in effect during the tax year. All section

501(c)(3) organizations that had a section 501(h) election in

effect during the tax year must complete Schedule C (Form 990),

Part II-A, whether or not they engaged in lobbying activities

during the tax year.

Line 5. Answer “Yes” only if the organization is a section 501(c)

(4), 501(c)(5), or 501(c)(6) organization that receives

membership dues, assessments, or similar amounts as defined

in Rev. Proc. 98-19, 1998-1 C.B. 547. Other organizations

answer “No.”

Line 6. Answer “Yes” if the organization maintained at any time

during the organization’s tax year a donor advised fund or

another similar fund or account (that is, any account over which

the donor or a person appointed by the donor had advisory

privileges over the use or investment of any portion of the

account, but which isn’t a donor advised fund). Examples of

other similar funds or accounts include, but aren’t limited to, the

types of funds or accounts described as exceptions to the

Glossary definition of a donor advised fund.

Line 7. Answer “Yes” if the organization received or held any

conservation easement at any time during the year, regardless

of how the organization acquired the easement or whether a

charitable deduction was claimed by a donor of the easement.

Line 8. Answer “Yes” if, at any time during the year, the

organization maintained collections of works of art, historical

treasures, and other similar assets as described in ASC

958-360-45, whether or not the organization reported revenue

and assets related to such collections in its financial statements.

Tip: Organizations that answer “Yes” on line 8 will often answer

“Yes” on Part IV, line 30, which addresses current-year noncash

contributions of such items.

Line 9. Answer “Yes” if, at any time during the organization’s tax

year, the organization (1) had an escrow or custodial account;

(2) provided credit counseling services and/or debt

management plan services, such as credit repair or debt

negotiations; or (3) acted as an agent, trustee, custodian, or

other intermediary for contributions or other assets not included

in Part X.

Line 10. Answer “Yes” if the organization, a related

organization, or an organization formed and maintained

exclusively to further one or more exempt purposes of the

organization (such as a foundation formed and maintained

exclusively to hold endowment funds to provide scholarships

and other funds for a college or university described within

section 501(c)(3)) held assets in donor-restricted endowment

funds, board designated (quasi), or endowment funds at any

time during the year, whether or not the organization follows ASC

958, or reports endowment funds on Part X, line 31. See the

instructions for Schedule D (Form 990), Part V, for the definitions

of these types of endowment funds.

Line 11. Answer “Yes” if the organization reported an amount for

land, buildings, equipment, or leasehold improvements on Part

X, line 10; reported an amount for other liabilities on Part X,

line 25; or if its financial statements for the tax year included a

footnote that addresses its liability for uncertain tax positions

under FIN 48 (FASB ASC 740) (including a statement that the

organization had no liability for uncertain tax positions). Also,

answer “Yes” if the organization reported in Part X an amount for

investments-other securities, investments-program related, or

other assets, on any of line 12,13, or 15, that is 5% or more of

the total assets reported on Part X, line 16.

Line 12a. Answer “Yes” if the organization received separate,

independent audited financial statements for the year for

which it is completing this return, or if the organization is

reporting for a short year that is included in, but not identical to,

the period for which the audited financial statements were

obtained. All other organizations answer “No.” Answer “No” if the

organization was included in consolidated audited financial

statements, unless the organization also received separate

audited financial statements.

An accountant’s compilation or review of financial

statements isn’t considered to be an audit and doesn’t produce

audited financial statements. If the organization answers “No,”

but has prepared, for the year for which it is completing this

return, a financial statement that wasn’t audited, the organization

can (but isn’t required to) provide the reconciliations contained in

Schedule D (Form 990), Parts XI–XII.

Line 12b. Answer “Yes” if the organization was included in

consolidated, independent audited financial statements for

the year for which it is completing this return. All other

organizations answer “No.” Answer “Yes” if the organization is

reporting for a short year that is included in, but not identical to,

2025 Instructions for Form 990

the period for which the audited financial statements were

obtained.

Line 13. Answer “Yes” if the organization checked the box on

Schedule A (Form 990), Part I, line 2, indicating that it is a

school.

Lines 14a–14b. Answer “Yes” on line 14a if the organization

maintained an office, or had employees or agents, or

independent contractors outside the United States. Answer

“Yes” on line 14b if the organization had aggregate revenue or

expenses of more than $10,000 from or attributable to

grantmaking, fundraising activities, business, investment, and

program service activities outside the United States, or if the

book value of the organization’s aggregate investments in foreign

partnerships, foreign corporations, and other foreign entities was

$100,000 or more at any time during the tax year.

In the case of indirect investments made through investment

entities, the extent to which revenue or expenses are taken into

account in determining whether the $10,000 threshold is

exceeded will depend upon whether the investment entity is

treated as a partnership or corporation for U.S. tax purposes. For

example, an organization with an interest in a foreign partnership

would need to take into account its share of the partnership’s

revenue and expenses in determining whether the $10,000

threshold is exceeded. An organization with an investment in a

foreign corporation would need to take into account dividends it

receives from the corporation, but wouldn’t need to take into

account or report any portion of the revenues, expenses, or

expenditures of a foreign corporation in which it holds an

investment, provided that the corporation is treated as a

separate corporation for U.S. tax purposes.

Line 15. Answer “Yes” if the organization reported in column

(A) of Part IX, line 3, more than $5,000 of grants and other

assistance to any foreign organization or entity (including a

foreign government), or to a domestic organization or

domestic individual for the purpose of providing grants or other

assistance to a designated foreign organization or

organizations.

Line 16. Answer “Yes” if the organization reported on Part IX,

line 3, column (A), more than $5,000 of aggregate grants and

other assistance to foreign individuals, or to domestic

organizations or domestic individuals for the purpose of

providing grants or other assistance to a designated foreign

individual or individuals.

Lines 17–18. Answer “Yes” on line 17 if the total amount

reported for professional fundraising services in Part IX

(line 11e, plus the portion of the line 6 amount attributable to

professional fundraising services) exceeds $15,000.

Answer “Yes” on line 18 if the sum of the amounts reported on

lines 1c and 8a of Form 990, Part VIII, exceeds $15,000. An

organization that answers “No” should consider whether to

complete Schedule G (Form 990) in order to report its

fundraising activities or gaming activities for state or other

reporting purposes.

Line 20a. Answer “Yes” if the organization, directly or indirectly

through a disregarded entity or joint venture treated as a

partnership for federal income tax purposes, operated one or

more hospital facilities at any time during the tax year. Except

in the case of a group return, don’t include hospital facilities

operated by another organization that is treated as a separate

taxable or tax-exempt corporation for federal income tax

purposes. For group returns, answer “Yes” if any subordinate

included in the group return operated such a hospital facility.

Line 20b. If the organization operated one or more hospital

facilities at any time during the tax year, then it must attach a

copy of its most recent audited financial statements. If the

organization was included in consolidated audited financial

2025 Instructions for Form 990

statements but not separate audited financial statements for the

tax year, then it must attach a copy of the consolidated financial

statements, including details of consolidation (whether or not

audited).

Line 21. Answer “Yes” if the organization reported in column (A)

of Part IX, line 1, more than $5,000 of grants and other

assistance to any domestic organization, or to any domestic

government. For instance, answer “No” if the organization made

a $4,000 grant to each of two domestic organizations and no

other grants. Don’t report grants or other assistance provided to

domestic organizations or domestic governments for the

purpose of providing grants or other assistance to designated

foreign organizations or foreign individuals.

Section 501(c)(21) trusts. Use Schedule I (Form 990),

Grants and Other Assistance to Organizations, Governments,

and Individuals in the United States, to report amounts over

$5,000 paid by the trust (1) to the Federal Black Lung Disability

Trust Fund pursuant to section 3(b)(3) of Public Law 95-227, or

(2) for insurance exclusively covering liabilities under sections

501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV). For details, see

Regulations section 1.501(c)(21)-1(d).

Line 22. Answer “Yes” if the organization reported in column (A)

of Part IX, line 2, more than $5,000 of aggregate grants and

other assistance to or for domestic individuals. Don’t report

grants or other assistance provided to or for domestic individuals

for the purpose of providing grants or other assistance to

designated foreign organizations or foreign individuals.

Section 501(c)(21) trusts. Use Schedule I (Form 990) to

report amounts over $5,000 paid by the black lung trust to or for

the benefit of miners or their beneficiaries other than amounts

included on line 21. Such payments could include direct

payment of medical bills, etc., authorized by the Act and

accident and health benefits for retired miners and their spouses

and dependents.

Line 23. Answer “Yes” if the organization:

• Listed in Part VII a former officer, director, trustee, key

employee, or highest compensated employee; or

• Reported for any person listed in Part VII more than $150,000

of reportable compensation and other compensation.

Also answer “Yes” if, under the circumstances described in

the instructions for Part VII, Section A, line 5, the filing

organization had knowledge that any person listed in Part VII,

Section A, received or accrued compensation from an

unrelated organization for services rendered to the filing

organization.

Line 24. Lines 24a–24d involve questions regarding

tax-exempt bonds. All organizations must answer “Yes” or “No”

on line 24a. Those organizations that answer “Yes” on line 24a

must also answer lines 24b through 24d and complete

Schedule K (Form 990), Supplemental Information on

Tax-Exempt Bonds. Those that answer “No” to line 24a can skip

to line 25a.

Line 24a. Answer “Yes” and complete Schedule K (Form 990)

for each tax-exempt bond issued by or for the benefit of the

organization after December 31, 2002 (including refunding

bonds), with an outstanding principal amount of more than

$100,000 as of the last day of the organization’s tax year. For this

purpose, bonds that have been legally defeased, and as a result

are no longer treated as a liability of the organization, aren’t

considered outstanding.

Line 24b. For purposes of line 24b, the organization need not

include the following as investments of proceeds.

• Any investment of proceeds relating to a reasonably required

reserve or replacement fund as described in section 148(d).

• Any investment of proceeds properly characterized as

replacement proceeds as defined in Regulations section

1.148-1(c).

• Any investment of net proceeds relating to a refunding

escrow as defined in Regulations section 1.148-1(b).

Temporary period exceptions are described in section 148(c)

and Regulations section 1.148-2(e). For example, there is a

3-year temporary period applicable to proceeds spent on

expenditures for capital projects and a 13-month temporary

period applicable to proceeds spent on working capital

expenditures.

Line 24c. For purposes of line 24c, the organization is treated

as maintaining an escrow account if such account is maintained

by a trustee for tax-exempt bonds issued for the benefit of the

organization.

Line 24d. Answer “Yes” if the organization has received a

letter ruling that its obligations were issued on behalf of a state or

local governmental unit; meets the conditions for issuing

tax-exempt bonds as set forth in Rev. Rul. 63-20, 1963-1 C.B.

24 (see Rev. Proc. 82-26, 1982-1 C.B. 476); or is a constituted

authority organized by a state or local governmental unit to issue

tax-exempt bonds in order to further public purposes (see Rev.

Rul. 57-187, 1957-1 C.B. 65). Also answer “Yes” if the

organization has outstanding qualified scholarship funding

bonds under section 150(d) or bonds of a qualified volunteer fire

department under section 150(e).

Lines 25a–25b. Complete lines 25a and 25b only if the

organization is a section 501(c)(3), 501(c)(4), or 501(c)(29)

organization. If the organization isn’t described in section 501(c)

(3), 501(c)(4), or 501(c)(29), skip lines 25a and 25b and leave

them blank. On line 25b, answer “Yes” if the organization

became aware, prior to filing this return, that it engaged in an

excess benefit transaction with a disqualified person in a

prior year, and if the transaction hasn’t been reported on any of

the organization’s prior Forms 990 or 990-EZ.

Tip: An excess benefit transaction can have serious

implications for the disqualified person that entered into the

transaction with the organization, any organization managers

that knowingly approved of the transaction, and the organization

itself. A section 501(c)(3), 501(c)(4), or 501(c)(29) organization

that becomes aware that it may have engaged in an excess

benefit transaction should obtain competent advice regarding

section 4958, pursue correction of any excess benefit, and take

other appropriate steps to protect its interests with regard to

such transaction and the potential impact it could have on the

organization’s continued exempt status. See Appendix G, later,

for a discussion of section 4958; Schedule L (Form 990), Part I;

and Form 4720, Schedule I, regarding reporting of excess

benefit transactions.

Lines 26–28. Lines 26 through 28 ask questions about loans

and other receivables and payables between the organization

and certain interested persons, and certain direct and indirect

business transactions between the organization and governance

and management officials of the organization or their associated

businesses or family members. All organizations must answer

these questions. The organization should review carefully the

instructions for Schedule L (Form 990), Parts II–IV, before

answering these questions and completing Schedule L (Form

990).

Line 29. The organization is required to answer “Yes” on line 29

if it received during the year more than $25,000 in fair market

value (FMV) of donations, gifts, grants, or other contributions

of property other than cash, regardless of the manner received

(such as for use in a charity auction). Don’t include

contributions of services or use of facilities.

Line 30. The organization is required to answer “Yes” on line 30

if during the year it received as a donation, gift, grant, or other

contribution:

• Any work of art, historical treasure, historical artifact,

scientific specimen, archaeological artifact, or similar asset,

including a fractional interest, regardless of amount or whether

the organization maintains collections of such items; or

• Any qualified conservation contributions regardless of

whether the contributor claimed a charitable contribution

deduction for such contribution.

See the instructions for Schedule M (Form 990), Noncash

Contributions, for definitions of these terms.

Lines 31–32. The organization must answer “Yes” if it

liquidated, terminated, dissolved, ceased operations, or

engaged in a significant disposition of net assets during the

year. See the instructions for Schedule N (Form 990) for

definitions and explanations of these terms and transactions or

events, and a description of articles of dissolution and other

information that must be filed with Form 990.

Note that a significant disposition of net assets may result

from either an expansion or contraction of operations.

Organizations that answer “Yes” on either of these questions

must also check the box on Part I, line 2, and complete

Schedule N (Form 990), Part I or II.

Lines 33–34. The organization is required to report on

Schedule R (Form 990) certain information regarding ownership

or control of, and transactions with, its disregarded entities and

tax-exempt and taxable related organizations. An organization

that answers “Yes” on line 33 or 34 must enter its disregarded

entities and related organizations on Schedule R (Form 990) and

provide specified information regarding such organizations.

Report disregarded entities in Schedule R (Form 990), Part I;

related tax-exempt organizations in Part II; related organizations

taxable as partnerships in Part III; and any related organizations

taxable as C or S corporations or trusts in Part IV.

Lines 35a–35b. If an organization was a controlled entity of

the filing organization under section 512(b)(13) during the tax

year, the filing organization must answer “Yes” on line 35a. It

must answer “Yes” on line 35b and complete Schedule R (Form

990), Part V, line 2, if it either (1) received or accrued from its

controlled entity any interest, annuities, royalties, or rent,

regardless of amount, during the tax year; or (2) engaged in

another type of transaction (see Schedule R (Form 990) for a list

of transactions) with the controlled entity, if the amounts involved

during the tax year for that type of transaction exceeded

$50,000. See the Glossary and the Instructions for Schedule R

(Form 990).

Controlled entities are a subset of related organizations.

Answer “No” to line 35a if the organization had no related

organizations during the tax year. If the answer to line 35a is

“No,” leave line 35b blank.

Line 36. Complete line 36 only if the organization is a section

501(c)(3) organization and engaged in a transaction over

$50,000 during the tax year with a related organization that

was tax exempt under a section other than section 501(c)(3). All

other organizations leave this line blank and go to line 37. See

the Instructions for Schedule R (Form 990) for more information

on what needs to be reported on Schedule R (Form 990), Part V,

line 2.

Line 37. Answer “Yes” if, at any time during the year, the

organization conducted more than 5% of its activities, measured

by total gross revenue for the tax year or total assets of the

organization at the end of its tax year, whichever is greater,

through an unrelated organization that is treated as a

partnership for federal income tax purposes, and in which the

organization was a partner or member at any time during the tax

year. The 5% test is applied on a partnership-by-partnership

basis, although direct ownership by the organization and indirect

ownership through disregarded entities or tiered entities treated

as partnerships are aggregated for this purpose. The

2025 Instructions for Form 990

organization need not report on Schedule R (Form 990), Part VI,

either (1) the conduct of activities through an organization

treated as a taxable or tax-exempt corporation for federal income

tax purposes, or (2) unrelated partnerships that meet both of the

following conditions.

• 95% or more of the filing organization’s gross revenue from

the partnership for the partnership’s tax year ending with or

within the organization’s tax year is described in sections 512(b)

(1), 512(b)(2), 512(b)(3), and 512(b)(5), such as interest,

dividends, royalties, rents, and capital gains (including unrelated

debt-financed income).

• The primary purpose of the filing organization’s investment in

the partnership is the production of income or appreciation of

property and not the conduct of a section 501(c)(3) charitable

activity such as program-related investing.

Line 38. Answer “Yes” if the organization completed

Schedule O (Form 990).

Tip: Schedule O (Form 990) must be completed and filed by all

organizations that file Form 990. All filers must provide narrative

responses to certain questions (for example, Part VI, lines 11b

and 19) on Schedule O (Form 990). Certain filers must provide

narrative responses to other questions (for example, Part III,

line 4d; Part V, line 3b; Part VI, lines 2–7b, 9, 12c, and 15a–b, for

“Yes” responses; Part VI, lines 8a–b and 10b, for “No” responses;

and Part XII, line 3b, for a “No” response). All filers can

supplement their answers to other Form 990 questions on

Schedule O (Form 990).

Part V. Statements Regarding Other

IRS Filings and Tax Compliance

Check the box in the heading of Part V if Schedule O (Form 990)

contains any information pertaining to this part.

See the Glossary for definitions of terms used in the

questions in this section.

Some questions in this part pertain to other IRS forms. Forms

are available by downloading from the IRS website at IRS.gov/

OrderForms. Also see Appendix H. Forms and Publications To

File or Use.

Line 1a. The organization must use Form 1096, Annual

Summary and Transmittal of U.S. Information Returns, to

transmit to the IRS paper Forms 1099, 1098, 5498, and W-2G,

which are information returns reporting certain amounts paid or

received by the organization. Report all such returns filed for the

calendar year ending with or within the organization’s tax year. If

the organization transmits any of these forms electronically, add

this number to the total reported. Examples of payments

requiring Form 1099 reporting include certain payments to

independent contractors for services rendered. Report on this

line Forms 1099, 1098, 5498, and W-2G filed by reporting

agents of the filing organization, including common paymasters

and payroll agents, for the calendar year ending with or within

the organization’s tax year. Enter -0- if the organization didn’t file

any such forms for the calendar year ending with or within its tax

year, or if the organization is filing for a short year and no

calendar year ended within its tax year.

Line 1b. Form W-2G pertains to certain gambling winnings.

Line 1c. For more information on backup withholding for

missing or incorrect names or taxpayer identification numbers,

see Pub. 1281, Backup Withholding for Missing and Incorrect

Name/TIN(s). If backup withholding rules didn’t apply to the

organization because it didn’t make a reportable payment to a

vendor or provide reportable gaming (gambling) winnings to a

prize winner, then leave line 1c blank.

Line 2a. Include on this line the number of the organization’s

employees (not the number of Forms W-2) reported on a Form

2025 Instructions for Form 990

W-3, Transmittal of Wage and Tax Statements, by both the filing

organization and reporting agents of the filing organization,

including common paymasters and payroll agents, for the

calendar year ending with or within the filing organization’s tax

year. Enter -0- if the organization didn’t have any employees

during the calendar year ending with or within its tax year, or if

the organization is filing for a short year and no calendar year

ended within its tax year.

Line 2b. If the organization reported at least one employee on

line 2a, answer whether the organization or reporting agents of

the organization filed all required federal employment tax returns

(which include Form 940, Employer’s Annual Federal

Unemployment (FUTA) Tax Return; and Form 941, Employer’s

QUARTERLY Federal Tax Return) relating to such employees.

For more information, see the discussion of employment taxes in

Pub. 557. The organization may leave line 2b blank if it didn’t

report any employees on line 2a.

Line 3a. Check “Yes” on line 3a if the organization’s total gross

income from all of its unrelated trades or businesses is

$1,000 or more for the tax year. See Pub. 598, Tax on Unrelated

Business Income of Exempt Organizations, for a description of

unrelated business income and the Form 990-T filing

requirements for organizations having such income.

Caution: Neither Form 990-T nor Form 990 is a substitute for

the other. Report on Form 990 items of income and expense that

are also required to be reported on Form 990-T when the

organization is required to file both forms.

Line 3b. Answer “Yes” if the organization checked “Yes” on

line 3a and filed Form 990-T by the time this Form 990 is filed.

Check “No” if the organization answered “Yes” on line 3a but

hasn’t filed Form 990-T by the time this Form 990 is filed, even if

the organization has applied for an extension to file Form 990-T.

If “No” on line 3b, provide an explanation on Schedule O (Form

990).

Caution: All tax-exempt organizations must pay estimated taxes

for their unrelated business income if they expect their tax

liability to be $500 or more.

Line 4a. Answer “Yes” if either (1) or (2) below applies.

1. At any time during the calendar year ending with or within

the organization’s tax year, the organization 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 organization owns more than 50% of the stock in any

corporation that would answer “Yes” to item 1 above.

If “Yes,” e-file FinCEN Form 114, Report of Foreign Bank and

Financial Accounts (FBAR), with the Department of the Treasury

using FinCEN’s BSA E-Filing System. Because FinCEN Form

114 isn’t a tax form, don’t file it with Form 990.

Go to FinCEN.gov for more information.

Line 4b. Enter the name of each foreign country in which a

foreign account described on line 4a is located. Use Schedule O

(Form 990) if more space is needed.

Line 5. Answer “Yes” on line 5a if the organization was party to a

prohibited tax shelter transaction as described in section

4965(e) at any time during the organization’s tax year. A

prohibited tax shelter transaction is any listed transaction, within

the meaning of section 6707A(c)(2), and any prohibited

reportable transaction. A prohibited reportable transaction is a

confidential transaction within the meaning of Regulations

section 1.6011-4(b)(3), and a transaction with contractual

protection within the meaning of Regulations section 1.6011-4(b)

(4). For more information on prohibited tax shelter transactions,

go to IRS.gov.

An organization that files Form 990 (other than a section 527

political organization) and that is a party to a prohibited tax

shelter transaction must file Form 8886-T, Disclosure by

Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction,

and may also have to file Form 4720, Return of Certain Excise

Taxes Under Chapters 41 and 42 of the Internal Revenue Code,

and pay an excise tax imposed by section 4965. For more

information, see the instructions for Forms 8886-T and 4720.

Line 6. Answer “Yes” on line 6a only if the organization has

annual gross receipts that are normally greater than $100,000

and if it solicited contributions not deductible under section 170

during the tax year.

Any fundraising solicitation (including solicitation of member

dues) by or on behalf of any section 501(c) or 527 organization

that isn’t eligible to receive contributions deductible as

charitable contributions for federal income tax purposes must

include an explicit statement that contributions or gifts to it aren’t

deductible as charitable contributions. The statement must be in

an easily recognizable format whether the solicitation is made in

written or printed form, by television or radio, or by telephone.

Failure to disclose that contributions aren’t deductible could

result in a penalty of $1,000 for each day on which a failure

occurs. The maximum penalty for failures by any organization,

during any calendar year, shall not exceed $10,000. See section

6710 for details. In cases where the failure to make the

disclosure is due to intentional disregard of the law, more severe

penalties apply. No penalty will be imposed if the failure is due to

reasonable cause.

All organizations that qualify under section 170(c) to receive

contributions that are deductible as charitable contributions for

federal income tax purposes (such as domestic section 501(c)

(3) organizations other than organizations that test for public

safety) should answer “No” on line 6a.

Line 7. Line 7 is directed only to organizations that can receive

deductible charitable contributions under section 170(c). See

Pub. 526, Charitable Contributions, for a description of such

organizations. All other organizations should leave lines 7a

through 7h blank and go to line 8.

Lines 7a and 7b. If a donor makes a payment in excess of

$75 partly as a contribution and partly in consideration for goods

or services provided by the organization, the organization must

generally notify the donor of the value of goods and services

provided.

Example. A donor gives a charity $100 in consideration for a

concert ticket valued at $40 (a quid pro quo contribution). In

this example, $60 would be deductible. Because the donor’s

payment exceeds $75, the organization must furnish a

disclosure statement even though the taxpayer’s deductible

amount doesn’t exceed $75. Separate payments of $75 or less

made at different times of the year for separate fundraising

events won’t be aggregated for purposes of the $75 threshold.

See section 6113 and Notice 88-120, 1988-2 C.B. 454.

Lines 7c and 7d. If the organization is required to file Form

8282, Donee Information Return, to report information to the IRS

and to donors about dispositions of certain donated property

made within 3 years after the donor contributed the property, it

must answer “Yes” and indicate the number of Forms 8282 filed.

Lines 7e and 7f. If, in connection with a transfer to or for the

use of the organization, the organization 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 such premiums, the organization must report on

Form 8870, Information Return for Transfers Associated With

Certain Personal Benefit Contracts, the premiums it paid, and

the premiums paid by others but treated as paid by the

organization. The organization must report and pay an excise

tax, equal to premiums paid, on Form 4720. A personal benefit

contract is generally any life insurance, annuity, or endowment

contract that benefits, directly or indirectly, the transferor, a

member of the transferor’s family, or any other person

designated by the transferor (other than an organization

described in section 170(c)).

Line 7g. Form 8899, Notice of Income From Donated

Intellectual Property, must be filed by certain organizations that

received a charitable gift of qualified intellectual property that

produces net income. The organization should check “Yes” if it

provided all required Forms 8899 for the year for net income

produced by donated qualified intellectual property. “Qualified

intellectual property” is any patent, copyright (other than certain

self-created copyrights), trademark, trade name, trade secret,

know-how, software (other than certain “canned” or

“off-the-shelf” software or self-created software), or similar

property, or applications or registrations of such property. If the

organization didn’t receive a contribution of qualified intellectual

property, leave line 7g blank.

Line 7h. A donor of (1) a motor vehicle for use on public

roads, (2) a boat, or (3) an airplane can’t claim a charitable

contribution deduction in excess of $500 unless the donee

organization provides the donor with a Form 1098-C,

Contributions of Motor Vehicles, Boats, and Airplanes, for the

donation (or a written acknowledgment with the same

information). See the Instructions for Form 1098-C for more

information. If the organization didn’t receive a contribution of a

car, boat, airplane, or other vehicle, leave line 7h blank.

Line 8. A sponsoring organization of a donor advised fund

must answer “Yes” if any one of its donor advised funds had

excess business holdings at any time during the organization’s

tax year. All other organizations should leave this line blank and

go to line 9. If “Yes,” see the instructions for Schedule C of Form

4720 to determine whether the organization is subject to the

excess business holdings tax under section 4943 and is required

to file Form 4720.

For purposes of the excise tax on excess business holdings

under section 4943, a donor advised fund is treated as a private

foundation.

Line 9. Line 9 is required to be completed by sponsoring

organizations maintaining a donor advised fund. All other

organizations can leave this line blank and go to line 10.

Line 9a. Answer “Yes” if the organization made any taxable

distributions under section 4966 during the organization’s tax

year. If “Yes,” complete and file Form 4720, Schedule K, to

calculate and pay the tax.

Under section 4966, a taxable distribution includes a

distribution from a donor advised fund to an individual. A

taxable distribution also includes a distribution from a donor

advised fund to an estate, partnership, association, company, or

corporation unless:

• The distribution is for a purpose described in section 170(c)(2)

(B) (for example, a charitable purpose), and

• The organization exercises expenditure responsibility for the

distribution.

The above doesn’t apply to distributions to any organization

described in section 170(b)(1)(A) (other than a disqualified

supporting organization, defined in section 4966(d)(4)), to the

sponsoring organization of such donor advised fund, or to any

other donor advised fund.

Line 9b. Answer “Yes” if the organization made a distribution

from a donor advised fund to a donor, donor advisor, or

related person during the organization’s tax year. For purposes

2025 Instructions for Form 990

of this question, a related person is any family member of the

donor or donor advisor and any 35% controlled entity (as

defined in section 4958(f)) of the donor or donor advisor. If “Yes,”

complete and file Form 4720 and Schedule L (Form 990).

Caution: If an organization makes a distribution from a donor

advised fund resulting from the advice of a donor, donor advisor,

family member, or 35% controlled entity of any of these persons,

which distribution directly or indirectly provides a more than

incidental benefit to one of such persons, section 4967 imposes

a tax on (1) the person upon whose advice the distribution was

made, (2) the beneficiary of the distribution, and (3) the fund

manager for knowingly agreeing to make the distribution. The

persons liable for the section 4967 tax must file Form 4720 to

pay the tax. No section 4967 tax will be imposed on a distribution

if a tax has been imposed for the distribution under section 4958.

If an organization makes a distribution from a donor advised

fund to a donor, donor advisor, family member, or 35% controlled

entity of these persons, then the transaction might be a section

4958 transaction. Such transactions include any grant, loan,

compensation, or other similar payment to these persons, as

well as any other payment resulting in excess benefit.

Line 10. Answer lines 10a and 10b only if the organization is

exempt under section 501(c)(7).

A section 501(c)(7) organization isn’t exempt from income tax

if any written policy statement, including the governing

instrument and bylaws, allows discrimination on the basis of

race, color, or religion.

However, section 501(i) allows social clubs to retain their

exemption under section 501(c)(7) even though their

membership is limited (in writing) to members of a particular

religion if the social club:

1. Is an auxiliary of a fraternal beneficiary society exempt

under section 501(c)(8); and

2. Limits its membership to the members of a particular

religion, or the membership limitation is:

a. A good-faith attempt to further the teachings or principles

of that religion, and

b. Not intended to exclude individuals of a particular race or

color.

Line 10a. Enter the amount of initiation fees, capital

contributions, and unusual amounts of income included on Part

VIII. Statement of Revenue, line 12, “Total revenue,” but not

included in the definition of gross receipts for section 501(c)(7)

exemption purposes as discussed in Appendix C. However, if the

organization is a college fraternity or sorority that charges

membership initiation fees but not annual dues, don’t include

such initiation fees.

Line 10b. Enter the amount of gross receipts included on

Part VIII. Statement of Revenue, line 12, “Total revenue,” derived

from the general public for use of the organization’s facilities, that

is, from persons other than members or their spouses,

dependents, or guests.

Tip: Include the amount entered on line 10b of Form 990 on the

club’s Form 990-T if required to be filed. Investment income

earned by a section 501(c)(7) organization isn’t tax-exempt

income unless set aside for the following purposes: religious,

charitable, scientific, literary, educational, or prevention of cruelty

to children or animals.

If the combined amount of an organization’s gross investment

income, and other gross income from unrelated trades or

businesses, is $1,000 or more for the tax year, the organization

must report the investment income, and other unrelated

business income, on Form 990-T.

2025 Instructions for Form 990

Line 11. Answer lines 11a and 11b only if the organization is

exempt under section 501(c)(12).

One of the requirements that an organization must meet to

qualify under section 501(c)(12) is that at least 85% of its gross

income consists of amounts collected from members for the sole

purpose of meeting losses and expenses. For purposes of

section 501(c)(12), the term “gross income” means gross

receipts without reduction for any cost of goods sold.

Member income for purposes of this 85% Member Income

Test is income derived directly from the members to pay for

services that form the basis for tax exemption under section

501(c)(12), and includes payments for purchases of water,

electricity, and telephone service. Member income doesn’t

include interest income, gains from asset or security sales, or

dividends from another cooperative (unless that cooperative is

also a member).

Members are those individuals or entities that have the right

to elect the governing board of the organization, are involved in

the operations of the organization, and receive a share of its

excess operating revenues.

When calculating the member income percentage to

determine whether an organization meets the 85% Member

Income Test, the organization may exclude specific sources of

income from both the numerator and the denominator of the

fraction. For example, if an organization is a corporation and it

receives an amount that qualifies as a contribution to capital

under section 118, then that amount isn’t included in either the

numerator or the denominator because it isn’t considered to be

income for tax purposes. However, the payment must meet the

following conditions (see Rev. Rul. 93-16, 1993-1 C.B. 26) to

qualify as a contribution to capital.

• It must become a permanent part of the organization’s

working capital.

• It must not be compensation for specific quantifiable services.

• It must be bargained for.

• It must benefit the organization commensurately with its value.

• It must ordinarily be used in or contribute to the production of

additional income.

Gross income for mutual or cooperative electric companies is

figured by excluding any income received or accrued from the

following.

1. Qualified pole rentals.

2. Any provision or sale of electric energy transmission

services or ancillary services if the services are provided on a

nondiscriminatory, open-access basis under an open-access

transmission tariff; approved or accepted by the Federal Energy

Regulatory Commission (FERC) or under an independent

transmission provider agreement approved or accepted by

FERC (other than income received or accrued directly or

indirectly from a member).

3. The provision or sale of electric energy distribution

services or ancillary services, if the services are provided on a

nondiscriminatory, open-access basis to distribute electric

energy not owned by the mutual or electric cooperative

company:

a. To end-users who are served by distribution facilities not

owned by the company or any of its members (other than income

received or accrued directly or indirectly from a member), or

b. Generated by a generation facility not owned or leased by

the company or any of its members and which is directly

connected to distribution facilities owned by such company or

any of its members (other than income received or accrued

directly or indirectly from a member).

4. From any nuclear decommissioning transaction.

5. From any asset exchange or conversion transaction.

For a mutual or cooperative telephone company, gross

income doesn’t include amounts received or accrued either from

another telephone company for completing long distance calls to

or from or between the telephone company’s members, from

qualified pole rentals, from the sale of display listings in a

directory furnished to the telephone company’s members, or

from prepayment of a loan under section 306A, or section 306B,

of the Rural Electrification Act of 1936 (as in effect on January 1,

1987).

Tip: If the calculated member income percentage for a section

501(c)(12) organization is less than 85% for the tax year, then

the organization fails to qualify for tax-exempt status for that year,

and it must file Form 1120, U.S. Corporation Income Tax Return,

in lieu of Form 990 or 990-EZ for the year. However, failing the

85% Member Income Test in one year doesn’t cause permanent

loss of tax-exempt status under section 501(c)(12). So long as

the organization’s member income percentage is equal to or

greater than 85% in any subsequent tax year, the organization

may file Form 990 or 990-EZ for that year, even if Form 1120 was

filed in a prior year.

Line 12. All organizations that aren’t section 4947(a)(1) trusts

are to leave line 12 blank.

If a section 4947(a)(1) nonexempt charitable trust has no

taxable income under subtitle A, its filing of Form 990 can be

used to meet its income tax return filing requirement under

section 6012. Such a trust must, if it answers “Yes” on line 12a,

report its tax-exempt interest received or accrued (if reporting

under the accrual method) during the tax year on line 12b.

Section 4947(a)(1) trusts must complete all sections of the

Form 990 and schedules that section 501(c)(3) organizations

must complete. All references to a section 501(c)(3) organization

on the Form 990, schedules, and instructions shall include a

section 4947(a)(1) trust (for instance, such a trust must complete

Schedule A (Form 990), unless expressly excepted).

Line 13. Answer lines 13a, 13b, and 13c only if the organization

has received a loan or grant under the Department of Health and

Human Services CO-OP program.

Line 13a. If the organization is licensed to issue qualified

health plans in more than one state, check “Yes.” If the

organization is licensed to issue qualified health plans in only

one state, check “No.” In either case, report on Schedule O

(Form 990) each state in which the organization is licensed to

issue qualified health plans, the dollar amount of reserves each

state requires the organization to maintain, and the dollar

amount of reserves the organization maintains and reports to

each state.

Line 13b. Report the highest dollar amount of reserves the

organization is required to maintain by any of the states in which

the organization is licensed to issue qualified health plans.

Line 13c. Report the highest dollar amount of reserves the

organization maintains on hand and reports to a state in which

the organization is licensed to issue qualified health plans.

Line 14a. Answer “Yes” on line 14a if the organization

received any payments during the year for indoor tanning

services. “Indoor tanning services” are services employing any

electronic product designed to incorporate one or more

ultraviolet lamps and intended for the irradiation of an individual

by ultraviolet radiation, with wavelengths in air between 200 and

400 nanometers, to induce skin tanning.

Line 14b. If an organization received a payment for services

for indoor tanning services during the year, it must collect from

the recipient of the services a tax equal to 10% of the amount

paid for such service, whether paid by insurance or otherwise,

and remit such tax quarterly to the IRS by filing Form 720,

Quarterly Federal Excise Tax Return. If the organization filed

Form 720 during the year, it should check “Yes” on line 14b. If it

answers “No” on line 14b, it should explain on Schedule O (Form

990) why it didn’t file Form 720.

Line 15. 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.

Line 16. Line 16 applies to private colleges and universities

subject to the excise tax on net investment income under section

4968. All other organizations, including state colleges and

universities described in the first sentence of section 511(a)(2)

(B), aren’t subject to this tax, and therefore check the “No” box

on line 16, and go to Part VI. A private college or university will

be subject to the excise tax on net investment income under

section 4968 only if the following four threshold tests are met.

1. The organization must be an eligible educational

institution as defined in section 25A(f)(2). Section 25A(f)(2)

defines “eligible educational institution” as an institution that is

described in section 481 of the Higher Education Act of 1965 (20

U.S.C. 1088), as in effect on August 5, 1997, and is eligible to

participate in a program under title IV of such Act (20 USCS

sections 1070 et seq.).

2. The organization must have had at least 500

tuition-paying students, based upon a daily average student

count, during the preceding tax year.

3. More than 50% of those students must have been located

in the United States.

4. The aggregate FMV, at the end of the preceding tax year,

of the assets not used directly in carrying out the organization’s

exempt purpose, held by the organization and related

organizations, must be at least $500,000 per student.

Use the worksheet below to determine whether the

organization meets the last three threshold tests above. Save

this worksheet with the organization’s records.

Threshold Tests for Section 4968

1. Enter the daily average number of FTE tuition-paying students in all locations. If fewer than 500, check “No” on line 16. If 500 or more, go to line 2.

2. Enter the daily average number of FTE tuition-paying students in the United States.

3. Divide line 2 by line 1. If 50% or less, check “No” on line 16. If greater than 50%, go to line 4.

4. Enter the FMV of assets held by the organization but not used directly in carrying out the

organization’s exempt purpose.

5. Enter the FMV of assets held by one or more related organizations.

6. Total. Add lines 4 and 5.

7. Divide line 6 by the daily average number of FTE students. If less than $500,000, check “No” on line 16. If $500,000 or more, check “Yes” on

line 16.

2025 Instructions for Form 990

Worksheet line 1. To calculate the number of tuition-paying

students during the preceding tax year (including for purposes of

determining the number of students at a particular location),

enter the daily average number of full-time equivalent (FTE)

tuition-paying students attending the institution, taking part-time

tuition-paying students into account on a full-time student

equivalent basis.

If worksheet line 1 is fewer than 500, the organization is not

subject to the section 4968 excise tax on net investment income.

The organization should answer “No” on line 16. If worksheet

line 1 is 500 or more, continue to line 2.

Worksheet line 2. Enter the number of FTE tuition-paying

students included on line 1 who were located in the United

States during the preceding tax year and enter it on line 2.

Worksheet line 3. Divide line 2 by line 1. If 50% or less, the

organization is not subject to the section 4968 excise tax and the

organization should answer “No” on line 16. If greater than 50%,

continue to line 4.

Worksheet line 4. Calculate the FMV of the organization’s

assets not used directly in carrying out the organization’s exempt

purpose as of the end of the preceding tax year. To determine

which assets are used directly in carrying out the organization’s

exempt purpose, under these instructions, follow the principles of

section 4942(e)(1)(A) and Regulations section 53.4942(a)-2(c)

(3). To determine the FMV of the assets, use any reasonable

method as long as such method is consistently used. Under

these instructions, the principles of Regulations section

53.4942(a)-2(c)(4) will be considered to provide a reasonable

method.

Caution: 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 directly by the organization for charitable purposes. For

example, an office building used to provide offices for employees

engaged in managing endowment funds for the organization isn’t

considered an asset used for charitable purposes.

Worksheet line 5. Calculate the FMV of the assets of related

organizations (as defined below) using the FMV of assets as of

the end of the preceding tax year that ends with or within the

preceding tax year of the organization.

Section 4968 defines “related organization” to include only:

• Organizations that control or are controlled by the educational

institution,

• Organizations that are controlled by one or more of the same

persons who control the educational institution,

• Supported organizations (as defined in section 509(f)(3)), and

• Supporting organizations described in section 509(a)(3) that

support the educational institution during the tax year.

When calculating the FMV of such assets of a related

organization, exclude (1) assets of any related organization to

the extent that such assets are taken into account with respect to

another educational institution; and (2) unless the related

organization is controlled by the educational institution, or unless

the related organization is a supporting organization of the

educational institution, omit assets that are not intended, or are

not available, for the use or benefit of the educational institution.

Worksheet line 6. Add lines 4 and 5.

Worksheet line 7. Divide line 6 by the daily average number

of FTE students.

If line 7 is less than $500,000, the organization is not subject

to the section 4968 excise tax on net investment income and the

organization should answer “No” on line 16. If line 7 is $500,000

or more, the organization is subject to the section 4968 excise

2025 Instructions for Form 990

tax on net investment income and the organization should

answer “Yes” on line 16.

Line 17. Did the trust, or any disqualified or other person,

engage in any activities that would result in the imposition of an

excise tax under section 4951, 4952, or 4953? See the

Instructions for Form 6069. If “Yes,” complete Form 6069.

Part VI. Governance, Management,

and Disclosure

Check the box in the heading of Part VI if Schedule O (Form 990)

contains any information pertaining to this part. All organizations

must complete Part VI. Use Schedule O (Form 990) to provide

required supplemental information as described in this part, and

to provide any additional information that the organization

considers relevant to this part.

Part VI requests information regarding an organization’s

governing body and management, governance policies, and

disclosure practices. Although federal tax law generally doesn’t

mandate particular management structures, operational policies,

or administrative practices, every organization is required to

answer each question in Part VI. For example, all organizations

must answer lines 11a and 11b, which ask about the

organization’s process, if any, it uses to review Form 990, even

though the governing body isn’t required by federal tax law to

review Form 990.

Even though the information on policies and procedures

requested in Section B generally isn’t required under the Code,

the IRS considers such policies and procedures to generally

improve tax compliance. The absence of appropriate policies

and procedures can lead to opportunities for excess benefit

transactions, inurement, operation for nonexempt purposes, or

other activities inconsistent with exempt status. Whether a

particular policy, procedure, or practice should be adopted by an

organization depends on the organization’s size, type, and

culture. Accordingly, it is important that each organization

consider the governance policies and practices that are most

appropriate for that organization in assuring sound operations

and compliance with tax law. For more governance information

relating to charities, go to IRS.gov/Charities and click on

Lifecycle of an exempt organization.

Section A. Governing Body and Management

Line 1a. The governing body is the group of one or more

persons authorized under state law to make governance

decisions on behalf of the organization and its shareholders or

members, if applicable. The governing body is, generally

speaking, the board of directors (sometimes referred to as

“board of trustees”) of a corporation or association, or the

trustee or trustees of a trust (sometimes referred to as the “board

of trustees”).

Enter the number, as of the end of the organization’s tax year,

of members of the governing body of the organization with

power to vote on all matters that come before the governing body

(other than when a conflict of interest disqualifies the member

from voting). If members of the governing body don’t all have the

same voting rights, explain material differences on Schedule O

(Form 990).

If the organization’s governing body or governing documents

delegated authority to act on its behalf to an executive

committee or similar committee with broad authority to act on

behalf of the governing body, and the committee held such

authority at any time during the organization’s tax year, describe

on Schedule O (Form 990) the composition of the committee,

whether any of the committee’s members aren’t on the governing

body, and the scope of the committee’s authority. The

organization need not describe on Schedule O (Form 990)

delegations of authority that are limited in scope to particular

areas or matters, such as delegations to an audit committee,

investment committee, or compensation committee of the

governing body.

Example. A voluntary employees’ beneficiary association

(VEBA) is a trust under state law. Bank B is the sole trustee of

the trust. In completing line 1a, the VEBA will report one voting

member of the governing body.

Line 1b. Enter the number of independent voting members

of the governing body as of the end of the organization’s tax

year. A member of the governing body is considered

“independent” only if all four of the following circumstances

applied at all times during the organization’s tax year.

1. The member wasn’t compensated as an officer or other

employee of the organization or of a related organization (see

the Instructions for Schedule R (Form 990)) except as provided

in the religious exception discussed below. Nor was the member

compensated by an unrelated organization or individual for

services provided to the filing organization or to a related

organization, if such compensation is required to be reported in

Part VII, Section A.

2. The member didn’t receive total compensation

exceeding $10,000 during the organization’s tax year (including

a short year, regardless of whether such compensation is

reported in Part VII) from the organization and related

organizations as an independent contractor, other than

reasonable compensation for services provided in the

capacity as a member of the governing body. For example, a

person who receives reasonable expense reimbursements and

reasonable compensation as a director of the organization

doesn’t cease to be independent merely because she or he also

receives payments of $7,500 from the organization for other

arrangements.

3. Neither the member nor any family member of the

member was involved in a transaction with the organization

(whether directly or indirectly through affiliation with another

organization) that is required to be reported on Schedule L (Form

990) for the organization’s tax year.

4. Neither the member nor any family member of the

member was involved in a transaction with a taxable or

tax-exempt related organization (whether directly or indirectly

through affiliation with another organization) of a type and

amount that would be reportable on Schedule L (Form 990) if

required to be filed by the related organization.

Note: The independence standard for purposes of Part VI isn’t

the same as the “absence of conflict of interest” standard for

purposes of the rebuttable presumption under Regulations

section 53.4958-6, which focuses on conflicts with respect to a

particular transaction.

A member of the governing body isn’t considered to lack

independence merely because of the following circumstances.

1. The member is a donor to the organization, regardless of

the amount of the contribution.

2. Religious exception: The member has taken a bona fide

vow of poverty and either (a) receives compensation as an

agent of a religious order or a section 501(d) religious or

apostolic organization, but only under circumstances in which

the member doesn’t receive taxable income (see Rev. Rul.

77-290, 1977-2 C.B. 26; and Rev. Rul. 80-332, 1980-2 C.B. 34);

or (b) belongs to a religious order that receives sponsorship or

payments from the organization or a related organization that

don’t constitute taxable income to the member.

3. The member receives financial benefits from the

organization solely in the capacity of being a member of the

charitable or other class served by the organization in the

exercise of its exempt function, such as being a member of a

section 501(c)(6) organization, so long as the financial benefits

comply with the organization’s terms of membership.

Example 1. B is a voting member of the organization’s board

of directors. B is also a partner with a profits and capital interest

greater than 35% in a law firm, C, that charged $120,000 to the

organization for legal services in a court case. The transaction

between C and the organization must be reported on Schedule L

(Form 990) because it is a transaction between the organization

and an entity of which B is a more-than-35% owner, and

because the payment to C from the organization exceeded

$100,000 (see the instructions for Schedule L (Form 990), Part

IV, regarding both factors). Accordingly, B isn’t an independent

member of the governing body because the $120,000 payment

must be reported on Schedule L (Form 990) as an indirect

business transaction with B. If B were an associate attorney (an

employee) rather than a partner with a greater-than-35%

interest, and not an officer, director, trustee, or owner of the law

firm, the transaction wouldn’t affect B’s status as an independent

member of the organization’s governing body.

Example 2. D is a voting member of both the organization’s

governing body and the governing body of C, a related

organization. D’s child, E, received $40,000 in taxable

compensation as a part-time employee of C. D isn’t an

independent member of the governing body, because E received

compensation from C, a related organization to D, and the

compensation was of a type (compensation to a family member

of a member of C’s governing body) and amount (over $10,000)

that would be reportable on Schedule L (Form 990) if the related

organization, C, were required to file Schedule L (Form 990).

Example 3. C was Board Chair of X school during the tax

year. X’s bylaws designate the following as officer positions:

Board Chair, Secretary, and Treasurer. C set the agenda for

board of directors meetings, officiated board meetings,

coordinated development of board policy and procedure, was an

ex-officio member of all committees of the board, conducted

weekly staff meetings, and performed teacher and staff

evaluations. X compensated C during the tax year for C’s

services. This compensation was attributable to C’s board and

committee activities, and to C’s non-director activities involving

staff meetings and evaluations. Because X compensated C for

services as an officer/employee, C isn’t an independent member

of the governing body. See Rev. Rul. 68-597 and Rev. Rul.

57-246 for a description of the distinction between director

services and officer services.

Example 4. The facts are the same as in Example 3, except

that the Board Chair position wasn’t designated as an officer

position under X’s bylaws, board resolutions, or state law.

Nevertheless, because X compensated C for non-director

activities involving staff meetings and evaluations during the tax

year, C is deemed to have received compensation as an

employee—not as a governing body member—for those

activities. Therefore, C isn’t an independent member of the

governing body.

Example 5. The facts are the same as in Example 3, except

that (1) C conducted only director and committee activities

during the tax year; (2) C didn’t conduct staff meetings and

evaluations; and (3) X compensated C a reasonable amount for

C’s Board Chair services during the tax year, but didn’t provide

any other compensation to C in any other capacity. C’s

independence as a Board member isn’t compromised by

receiving compensation from X as a Board member (and not as

an officer or employee).

Also see Examples 2 and 3 in the instructions for Part VII,

Section A, line 5, later.

Reasonable effort. The organization need not engage in

more than a reasonable effort to obtain the necessary

2025 Instructions for Form 990

information to determine the number of independent voting

members of its governing body and can rely on information

provided by such members. For instance, the organization can

rely on information it obtains in response to a questionnaire sent

annually to each member of the governing body that includes the

member’s name and title, blank lines for the member’s signature

and signature date, and the pertinent instructions and definitions

for line 1b to determine whether the member is or isn’t

independent.

Line 2. Answer “Yes” if any of the organization’s current

officers, directors, trustees, or key employees, as reported in

Part VII, Section A, had a family relationship or business

relationship with another of the organization’s current officers,

directors, trustees, or key employees, as reported in Part VII,

Section A, at any time during the organization’s tax year. For

each family and business relationship, identify the persons and

describe their relationship on Schedule O (Form 990). It is

sufficient to enter “family relationship” or “business relationship”

without greater detail.

Business relationship. Business relationships between two

persons include any of the following.

1. One person is employed by the other in a sole

proprietorship or by an organization with which the other is

associated as a trustee, director, officer, or greater-than-35%

owner, even if that organization is tax exempt. However, don’t

report a person’s employment by the filing organization as a

business relationship.

2. One person is transacting business with the other (other

than in the ordinary course of either party’s business on the

same terms as are generally offered to the public), directly or

indirectly, in one or more contracts of sale, lease, license, loan,

performance of services, or other transaction involving transfers

of cash or property valued in excess of $10,000 in the aggregate

during the organization’s tax year. Indirect transactions are

transactions with an organization with which the one person is

associated as a trustee, director, officer, or greater-than-35%

owner. Such transactions don’t include charitable contributions

to tax-exempt organizations.

3. The two persons are each a director, trustee, officer, or

greater-than-10% owner in the same business or investment

entity (but not in the same tax-exempt organization).

Ownership is measured by stock ownership (either voting

power or value, whichever is greater) of a corporation, profits or

capital interest in a partnership or an LLC (whichever is greater),

membership interest in a nonprofit organization, or beneficial

interest in a trust. Ownership includes indirect ownership (for

example, ownership in an entity that has ownership in the entity

in question); there may be ownership through multiple tiers of

entities.

Privileged relationship exception. For purposes of line 2, a

business relationship doesn’t include a relationship between an

attorney and client, a medical professional (including

psychologist) and patient, or a priest/clergy and penitent/

communicant.

Example 1. B is an officer of the organization, and C is a

member of the organization’s governing body. B is C’s sister’s

spouse. The organization must report that B and C have a family

relationship.

Example 2. D and E are officers of the organization. D is

also a partner in an accounting firm with 300 partners (with a

1/300 interest in the firm’s profits and capital) but isn’t an officer,

director, or trustee of the accounting firm. D’s accounting firm

provides services to E in the ordinary course of the accounting

firm’s business, on terms generally offered to the public, and

receives $100,000 in fees during the year. The relationship

between D and E isn’t a reportable business relationship, either

because (1) it is in the ordinary course of business on terms

2025 Instructions for Form 990

generally offered to the public, or (2) D doesn’t hold a

greater-than-35% interest in the accounting firm’s profits or

capital.

Example 3. F and G are trustees of the organization. F is the

owner and CEO of an automobile dealership. G purchased a

$45,000 car from the dealership during the organization’s tax

year in the ordinary course of the dealership’s business, on

terms generally offered to the public. The relationship between F

and G isn’t a reportable business relationship because the

transaction was in the ordinary course of business on terms

generally offered to the public.

Example 4. H and J are members of the organization’s

board of directors. Both are CEOs of publicly traded corporations

and serve on each other’s board. The relationship between H

and J is a reportable business relationship because each is a

director or officer in the same business entity.

Example 5. K is an officer of the organization, and L is on its

board of directors. L is a greater-than-35% partner of a law firm

that charged $60,000 during the organization’s tax year for legal

services provided to K that were worth $600,000 at the law firm’s

ordinary rates. Thus, the ordinary course of business exception

doesn’t apply. However, the relationship between K and L isn’t a

reportable business relationship because of the privileged

relationship of attorney and client.

Reasonable effort. The organization isn’t required to provide

information about a family or business relationship between two

officers, directors, trustees, or key employees if it is unable

to secure the information after making a reasonable effort to

obtain it. An example of a reasonable effort would be for the

organization to distribute a questionnaire annually to each such

person that includes the name and title of each person reporting

information, blank lines for those persons’ signatures and

signature dates, and the pertinent instructions and definitions for

line 2.

Line 3. Answer “Yes” if, at any time during the organization’s tax

year, the organization used a management company or other

person (other than persons acting in their capacities as officers,

directors, trustees, or key employees) to perform any

management duties customarily performed by or under the direct

supervision of officers, directors, trustees, or key

employees. Such management duties include, but aren’t limited

to, hiring, firing, and supervising personnel; planning or

executing budgets or financial operations; or supervising exempt

operations or unrelated trades or businesses of the organization.

Management duties don’t include administrative services (such

as payroll processing) that don’t involve significant managerial

decision making. Management duties also don’t include

investment management unless the filing organization conducts

investment management services for others.

If “Yes” on Schedule O (Form 990), list the name(s) of the

management company or companies or other person(s)

performing management duties; describe the services they

provided to the organization; list any of the organization’s current

or former officers, directors, trustees, key employees, and

highest compensated employees listed in Part VII, Section A,

who were compensated by the management company or

companies or other person(s) during the calendar year ending

with or within the organization’s tax year; and list the amounts of

reportable and other compensation they received from the

management company or companies or other person(s) for

services provided to the filing organization and related

organizations during that year.

Line 4. The organization must report significant changes to its

organizing or enabling document by which it was created

(articles of incorporation, association, or organization; trust

instrument; constitution; or similar document), and to its rules

governing its affairs commonly known as bylaws (or regulations,

operating agreement, or similar document). Report significant

changes that weren’t reported on any prior Form 990, and that

were made before the end of the tax year. Don’t report changes

to policies described or established outside of the organizing or

enabling document and bylaws (or similar documents), such as

adoption of, or change to, a policy adopted by resolution of the

governing body that doesn’t entail a change to the organizing

document or bylaws.

Examples of significant changes to the organizing or enabling

document or bylaws include changes to:

• The organization’s exempt purposes or mission;

• The organization’s name (also see the instructions under

Specific Instructions, Item B, earlier);

• The number, composition, qualifications, authority, or duties of

the governing body’s voting members;

• The number, composition, qualifications, authority, or duties of

the organization’s officers or key employees;

• The role of the stockholders or membership in governance;

• The distribution of assets upon dissolution;

• The provisions to amend the organizing or enabling document

or bylaws;

• The quorum, voting rights, or voting approval requirements of

the governing body members or the organization’s stockholders

or membership;

• The policies or procedures contained within the organizing

documents or bylaws regarding compensation of officers,

directors, trustees, or key employees, conflicts of interest,

whistleblowers, or document retention and destruction; and

• The composition or procedures contained within the

organizing document or bylaws of an audit committee.

Example. Organization X has a written conflicts of interest

policy that isn’t contained within the organizing document or

bylaws. The policy is changed by board resolution. The policy

change doesn’t need to be reported on line 4.

Examples of insignificant changes made to organizing or

enabling documents or bylaws that aren’t required to be reported

here include changes to the organization’s registered agent with

the state and to the required or permitted number or frequency of

governing body or member meetings.

Describe significant changes on Schedule O (Form 990), but

don’t attach a copy of the amendments or amended document to

Form 990 (or recite the entire amended document verbatim),

unless such amended documents reflect a change in the

organization’s name. See Specific Instructions, Item B, earlier,

regarding attachments required in the event of a change in the

organization’s name.

Tip: An organization must report significant changes to its

organizational documents on Form 990, Part VI, rather than in a

letter to EO Determinations. EO Determinations no longer issues

letters confirming the tax-exempt status of organizations that

report significant changes to their organizational documents,

though it will, on request, issue an affirmation letter confirming an

organization’s name change. The IRS will no longer require a

new exemption application from a domestic section 501(c)

organization that undergoes certain changes of form or place of

organization described in Rev. Proc. 2018-15, 2018-9 I.R.B. 379.

Line 5. Answer “Yes” if the organization became aware during

the organization’s tax year of a significant diversion of its assets,

whether or not the diversion occurred during the year. If “Yes,”

explain the nature of the diversion, dollar amounts and/or other

property involved, corrective actions taken to address the matter,

and pertinent circumstances on Schedule O (Form 990),

although the person or persons who diverted the assets

shouldn’t be identified by name.

A diversion of assets includes any unauthorized conversion or

use of the organization’s assets other than for the organization’s

authorized purposes, including but not limited to embezzlement

or theft. Report diversions by the organization’s officers,

directors, trustees, employees, volunteers, independent

contractors, grantees (diverting grant funds), or any other

person, even if not associated with the organization other than

by the diversion. A diversion of assets doesn’t include an

authorized transfer of assets for FMV consideration, such as to a

joint venture or for-profit subsidiary in exchange for an interest

in the joint venture or subsidiary. For this purpose, a diversion is

considered significant if the gross value of all diversions (not

taking into account restitution, insurance, or similar recoveries)

discovered during the organization’s tax year exceeds the lesser

of (1) 5% of the organization’s gross receipts for its tax year, (2)

5% of the organization’s total assets as of the end of its tax year,

or (3) $250,000.

Note: A diversion of assets can in some cases be inurement of

the organization’s net earnings. In the case of section 501(c)(3),

501(c)(4), and 501(c)(29) organizations, it can also be an

excess benefit transaction taxable under section 4958 and

reportable on Schedule L (Form 990).

Line 6. Answer “Yes” if the organization is organized as a stock

corporation, a joint-stock company, a partnership, a joint

venture, or an LLC. Also answer “Yes” if the organization is

organized as a non-stock, nonprofit, or not-for-profit corporation

or association with members. For purposes of Form 990, Part VI,

“member” means (without regard to what a person, including a

corporation or other legal entity, is called in the governing

documents) any person who, pursuant to a provision of the

organization’s governing documents or applicable state law, has

the right to participate in the organization’s governance or to

receive distributions of income or assets from the organization.

Members don’t include governing body members. For purposes

of Part VI, a membership organization includes members with

the following kinds of rights.

1. The members elect the members of the governing body

(but not if the persons on the governing body are the

organization’s only members) or their delegates.

2. The members approve significant decisions of the

governing body.

3. The members can receive a share of the organization’s

profits or excess dues or a share of the organization’s net assets

upon the organization’s dissolution.

Describe on Schedule O (Form 990) the classes of members or

stockholders with the rights described above.

Line 7a. Answer “Yes” on line 7a if at any time during the

organization’s tax year there were one or more persons (other

than the organization’s governing body itself, acting in such

capacity) that had the right to elect or appoint one or more

members of the organization’s governing body, whether

periodically, or as vacancies arise, or otherwise. If “Yes,” describe

on Schedule O (Form 990) the class or classes of such persons

and the nature of their rights.

Line 7b. Answer “Yes” on line 7b if at any time during the

organization’s tax year any governance decisions of the

organization were reserved to (or subject to approval by)

members, stockholders, or persons other than the governing

body, whether or not any such governance decisions were

made during the tax year, such as approval of the governing

body’s election or removal of members of the governing body, or

approval of the governing body’s decision to dissolve the

organization. If “Yes,” describe on Schedule O (Form 990) the

class or classes of such persons, the decisions that require their

approval, and the nature of their voting rights.

Line 8. Answer “Yes” on lines 8a and 8b if the organization

contemporaneously documented by any means permitted by

state law every meeting held and written action taken during the

2025 Instructions for Form 990

organization’s tax year by its governing body and committees

with authority to act on behalf of the governing body (which

ordinarily don’t include advisory boards). Documentation

permitted by state law can include approved minutes, email, or

similar writings that explain the action taken, when it was taken,

and who made the decision. For this purpose, contemporaneous

means by the later of (1) the next meeting of the governing body

or committee (such as approving the minutes of the prior

meeting), or (2) 60 days after the date of the meeting or written

action. If the answer to either line 8a or 8b is “No,” explain on

Schedule O (Form 990) the organization’s practices or policies, if

any, regarding documentation of meetings and written actions of

its governing body and committees with authority to act on its

behalf. If the organization had no committees, answer “No” on

line 8b.

Line 9. The IRS needs a current mailing address to contact the

organization’s officers, directors, trustees, or key employees.

The organization can use its official mailing address stated on

the first page of Form 990 as the mailing address for such

persons. Otherwise, enter on Schedule O (Form 990) the mailing

addresses for such persons who are to be contacted at a

different address. Such information will be available to the public.

Section B. Policies

Answer “Yes” to any question in this section that asks whether

the organization had a particular policy or practice only if the

organization’s governing body (or a committee of the governing

body, if the governing body delegated authority to that committee

to adopt the policy) adopted the policy by the end of its tax year,

and if the policy applied to the organization as a whole. If the

policy applied only on a division-wide or department-wide level,

answer “No.” The organization may explain the scope of such

policy on Schedule O (Form 990).

Line 10a. Answer “Yes” if the organization had during its tax

year any local chapters, local branches, local lodges, or other

similar local units or affiliates over which the organization had the

legal authority to exercise direct or indirect supervision and

control (whether or not in a group exemption) and local units

that aren’t separate legal entities under state law over which the

organization had such authority. An affiliate or unit is considered

“local” for this purpose if it is responsible for a smaller

geographical area than the filing organization is responsible for.

Thus, a regional organization would be considered local for a

national organization.

Example 1. X is a national organization dedicated to the

reform of K. X has affiliates in 15 states that conduct activities to

carry out the purposes of X at the state level. X has the authority

to approve the annual

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