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Foundation Exempt from Income Tax, 990-PF, and the Annual Report Of DOCOIERT ABSORB. ED 158 755 -1p 006 356 AUTHOR Machalow, Robert '0 TITLE Information, on Private Foundaticins; An Introduction to Interpreting Their Internal RevenUe Service I. Returns. PUB DATE -77 NOTE 18p. EDRS PRICE MF-$0.83 HC-$1.67 Plus Postage.. DESCRIPTORS *Financial Policy; *Grants; Indexes (Locaters) ; Information Utilization; *Private .Agencies; *Records. (Forms) ; Tables (Data); Taxes ABSTRACT Forms filed annually b' .private foun ations with the Internal Revenue Service (IRS),. namely the Return of Private Foundation Exempt from Income Tax, 990-PF, and the Annual Report of Private Foundation, 990-AR, contain valuable information,which may reveal the sccpe and purpose of,a foundation's past grants. This Ars only reliable way to ascertain the foundation's areas. of interest. This,information-is available directly through the IRS, the Foundation Directory,,the"Foundation Grants Index, and the FoUndation Center Source Book Profiles. Ipcluded in this paper is aA.ist pihpointing information of importance to grant seekers available on the 990-PF and AR forms, and exactly where on the forms this information can be found. Sample= forms' are included. (MBRy *** ****************************************************************** * Reprodacti9ns supplied by EDRS, are, the best that can be made - * .. *, -1 from - t'h'e original document. , * - * * * * * * * * * ** * * * * * * I. * * * * * * ** * * * * * * * * * * * * * * * * * * * * * * * ** * * * * * * * * * * * * * * * * * * * : U.S. DEPARTMENT OF HEALTH, EDUCATION 8, WELFARE t NATIONAL INSTITUTE OF EDUCATION THIS DOCUMENT-CHAS BEEN REPRO- ' DUCED EXACTLY AS RECEIVED FROM THE PERSON OR ORGANIZATION ORIGIN- ATING LT POINTS OF VIEW OR OPINIONS STATEC.D0 NbT NECESSARILY REPRE-. SENT OFFICIAL NATIONAL INSTITUTE OF EDUCATION POSITION OR POLICY INFORMATION ON PRIVATE 'FOUNDATIONS: AN INTRODUCTION TO INTERPRETING. THEIR INTERNAL , REVENUE SERVICE RETURNS I . 'PERMISSION T6 REPRODUCE THIS MATERIAL HAS BEEN GRANTED BY Robert Machaloi4 Robert Machalow TO THE EDUCATIONALRES6URCES INFORMATION CENTER (ERIC) AND USERS OF THE ERIC SYSTEM." a. 1 4A11 organisations which the Internal RevepueService haOdesignated "Private Foundations" are required to file I.R.S. forms 990-ALand 990-PF. annually. Copies of.these,forms are available for the public's inspection. ,-- at'the national and regional collections of The FoundationCenter and copies .. may. also be purchased directly from the Lftternal,Revenue/Service.'These forms contain a great deal of"information which is invaluablAto the grant: - seeker, and careful examination of these forms can reveal, the scope and purpose of a foundation's past grants. Unlike several governmental agencies, private foundations do not usually invite grant applications_ for specifically announced programs; the only reliable way to ascertain .which fields are of,interest.to a particular foundation is to examine the grants which it has awarded in the past. 'There are several sources of information on private foundTons '>which can be consulted as a prelimindry to an examination of the 990s. Since not many private foundations publish annual reports, a graiit-:seeker must rely on information, which organiSations.such as The FoUndation Center has , gathered and made atrailable for dissemination. Among the published sources that a grant-seeker might wish to consult are the following publications of 'The Foundation Center:. The Foundation Directory; gives' brief information on approximately the largksfthreethousand foundations. The criteria for inclusion in thedirectoryare assts of over one million dollars and/Or grants paid of over one hundred thousand dollars. Grant; applications infrmation, which is not available.in manyother sources, is giv6 for many of the.foundations included. o The Foundation Grants Index: records on a bimonthly. basis (in Foundation Nen)and cumulates annually, grant\s ofat 'least five thousand dollars by, cooperatingfoundations. Unfortunately,'only a small number'of foundations cooperate with-The Foundation Center, and thus only a small number are included in th,i.s work. (The 1977 cumulative issue included grants from only approximately 340 foundations)., Foundation Center Source Book Profiles: gives in-depth information on the largest private foundations, including an analysis of the grants'of each foundation: Grant application information is provided for most foundations included in this work. The criteria for incluSion iv the Foundation Center Source Book,Profiles is grants paid of at least -brio hundred thousand dollars. Each of these works has' a subject d x'which will aid.a grant-seeker in the identification. of koundations which d to be. further res6arched prior to the submission of a proposal.' The kollowing tables along with/the blank I'ternal Revenue SerVice forms will pinpoint the informatict of importance to grant-seekers available on the forms and exactly where on the-forms this inforTation can befound. IA INFORMATION ON PRIVATE FOUNDATIONS: THE 9904F AND 990-AR FORMS 990 -PF 990-AR 31 I. Foundation Name Page. Top Page 2: Top II. Address Page1: Top(1) Page Top(1) 9 III'. Fiscal Date, Page1: Top Page 2: Top I . Officers Page : Part VI No. 2 Page 2 Noc6 V. Assets, at Market Value Page 1:Top Page 3: Bbttom VI. Assetsat Ledger. Value r Page 3; Bottom VII.' Liabilities Page 2, Line la s, Page : Top VII Gifts Received by. Page 1, Line 1. Page oadne Foundation IX. Donors to Foundation Page 4: Part VI, No.. Page2,No.6A X. Expenditutes Page 1; Line 24 Page2,Line4 plus5 XI. Grants Amount Paid Page 1, Page4: Top by Foundation0 XII. Grants List Schedule(3) Page4: Top(4) 4 (1) Often the address given here is the address of the accountant who handles the foundation's tax returns. It is-advisable to,also check the addresses of the foUndation's Managers. On the 990-PF, this information is. given on Page 4 (Part'VI, No. 2)./ On the 990 -AR, this inf9rMation can'be located on 'gage 2 (No. % 4 , . , . (2) This figure caninclude amount expended for matching gifts, scholarships and loans. 2 (3) NOt always appended to the 990tP14. , - if (4) By_examiningthe grants list,one is able to deterMine whether to submit a prpposal to a particular foundation. VS 'INFORMATION ON PRIVATE"FOUNDATIONS: THE 990-PP AND 990 7AR FORMS 990-PF 990 -AR XIII. Grants Approved for Future Payment XIV: Operating Piograms Page 3: Question 9' Matching Gifts Paid Page 4: .TOR(6) Loans Paid Page 4: (6) 4 XVII. ScholAWlips Page 4:- ToPc6)'.. L. .1, (5)'. Not always included on Schedules.:, 1 (6) Matching gifts,. loans and scholarsAips are enuterat6d.on the grants list .. or on separat uPplementary schedules. r 1 )* 4 Return of Private Foundation Form990-PF Department of the Treasuiy Exempt from Income Tax 11Q77 Internal Revenue Service Under Section 501(c)(3) of the Internal Revenue Code. ijr For the calendar year 1977, or taxable year'beginhing _19,7 and ending , 19 Name of brganizaticin . Employer identification number , . (see instruction G) Please type, 3- . .. prpt or.. .. :% If th3 foundation is in a 60-month attach label. Address (number and street) - termination under section 507(b) See'in truction I I (1)(B) check here . , G City or tdwn,State.and ZIP code Fair market value of assets at end, of , year (see Instruction H) C 4 If changed,check here IN.in Foreign organizations, check here No.n .N, . ifexemptionapplicationis.,, The boas are in care oflb- pending, check here . .le n Lodated at OP- Telephone No.'DI-. (A) Receipts and (3) Computation of. (C) Computation of (0.) Disbursements Part I Analysis of Receipts and Expend'. expenditures per .Nat Investment Adjusted Net for Exempt tures (See instructions for Part I) Income Income - Purpose. .t.V 1 Gross contributions, gifts, grants, etc: (see instructions) . VIII /, 2 Contributionslrom split-interest trusts (see' instructions) . /. 3 Gross dues and assessments d'''' /, 6 or 4 Interest .... .. - . .,... 5 Dividends . .,.... ` . , 6 Gross-rents and royalties V . 7,1 7 Net gain or (less) from sale of assets not in -line 11 /V,, // / %03 ,,a) 8 Capital gain net income (seeinstructions). 6 cc - 9. Net short-term capital gain (see instrUdtions) r/// ///r/ / /A 10 Income modifications (see instructions) . V / / / A 11 Gross profit from any business activities: r / '" (Gross receipts $ less cost of sales $ see instructions). // x . / 12 Other income (attach.schedule) - 4 x j13 Totaladd lines 1 through 12 . A 14 Compensation of officers, 'etc. (see instruction- - . ) 15 Other salaries and wages 16. (a) Pension plan contributions (enter numb r of . plans , ) 0 (b) Other employee benefits 2.i 1, «.=17 Investment, legal and other professional services . t.18 Interest -. -.1 a19 Taxes (s e instructions) .-. ..... 20 Depreciation, amortization, and depletion (see instructions) 4 21.Rent 22 Other expenses (attach schedule) . .... t._ 23 Contributions, gifts, grants (see instructions) . X I 0, A A___.., 24 Totaladd lines 14 through 23 .° ... X 25Linvir3 less line 24: ;(a) Excesiof receipts over expenditures A ., / , (b) Net investment locome (if negative enter -0-) . /, .... ,///////,/, // (c) Adjusted net income (see instructions) (if negative enter -0-) / / ), ////0 Part II Exciseax On Investment Income 1. All organizations (see instructions)enter 4% of line 25(b), Part I 2 Credits,: (a) Foreign organizaticins7---tax withheld at source (attach Form(s) 142) . (b) Tax paid with application for extension of time to file (Form 2758) . 3 Tax floe line 1 less line 2. 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