2023 Form 990-PF Filing Instructions

Revenue ( Lines 1-12 ):

You need to report your foundation’s revenue generated from various sources.

• Lines 1-11:
  • Enter the value of contributions, gifts, interest on savings, dividends, interest from securities, gross rents, net rental income, capital gain net income, net short-term capital gain, income modifications, gross sales less returns, and allowances, and other incomes in the respective lines.

  Note: If your foundation is not required to attach Schedule B, you need to check the box on Line 2.

• Line 12:
  • Enter the Total Revenue by adding Lines 1 through 11.

Assets (Lines 1 -16):

The balance sheet requires details regarding your foundation’s assets.

• Lines 1 - 15:
  • Enter details about cash—non-interest-bearing, Savings, and temporary cash investments, Grants receivable, Prepaid expenses and deferred charges, Investments—mortgage loans, and other assets.
  • The value for each asset at the beginning and the end of the year needs to be reported.
• Line 16:
  • Enter the value of Total Assets.

• Lines 1- 6:
  • Report the changes in your organization’s net assets by calculating the difference between the value of net assets or fund balances at the beginning and the end of the year.

• Line 1:
  • Enter the following details:
    • The kind(s) of property sold
    • Describe whether the property was Purchased or Donated
    • Date acquired
    • Date sold
    • Gross sales price
    • Depreciation allowed
    • Cost or other basis plus the expense of sale
    • Gain or loss ( e + f - g)

• Line 2:
  • Enter the capital gain net income (or) net capital loss.
• Line 3:
  • Enter the net short-term capital gain (or) loss as defined in sections 1222(5) and (6).

• Line 1:
  • The exempt operating foundations described in section 4940(d)(2) are required to check the box and enter “N/A”.
  • All other domestic foundations, enter 1.39% (0.0139) of line 27b (Net investment income).
• Lines 2 - 4: (Section 4947(a)(1) trusts and taxable foundations only)
  • Enter the tax under section 511 and Subtitle A (income) tax.
• Lines 5-11:
  • Enter the tax based on the investment income, any penalty for underpayment of estimated tax, and tax due and overpayment.

• Lines 1 - 16:
  • Answer all the questions regarding your foundation’s political activities and expenditures, unrelated business income, substantial contributors, and a few other information.
• Lines 2 - 4: (Section 4947(a)(1) trusts and taxable foundations only)
  • Enter the tax under section 511 and Subtitle A (income) tax.
• Lines 5-11:
  • Enter the tax based on the investment income, any penalty for underpayment of estimated tax, and tax due and overpayment.

• Lines 1 - 8:
  • This part also consists of a series of “Yes” or “No” questions regarding your foundation’s activities.
  • Any foundation that answers “Yes” to any of the questions in this part should file Form 4720 unless an exception applies.

The details include

• Line 1:
  • Enter the following details:
    • Name and address
    • Title and average hours per week devoted to position
    • The compensation (if not paid, enter 0)
    • The contributions to employee benefit plans and deferred compensation
    • The expense account and other allowances
• Line 2:
  • Enter the compensation amounts of the five highest-paid employees (other than those included in line 1—see instructions). If none, enter “NONE.”
• Line 3:
  • Provide details about five of the highest-paid independent contractors for professional services.

• Lines 1 and 2:
  • Enter two of your foundation’s major program-related investments made during the tax year.
• Line 2:
  • If your foundation makes any other program-related investments, enter them here.

• Lines 1:
  • List out the Fair Market Value (FMV) of assets not used (or held for use) directly in carrying out charitable purposes, Average monthly FMV of securities, Average monthly cash balances, and FMV of all other assets.
• Line 2:
  • Enter the application indebtedness of the assets mentioned on
    Line 1.
• Lines 3 and 4:
  • Determine and enter the Cash deemed held for charitable activities.
• Lines 5 and 6:
  • Using the above information, the net value of noncharitable-use assets and minimum investment return can be derived and reported.

• Lines 1 - 7:
  • Report the monetary amount for the tax year that your foundation must distribute by the end of 2023 as qualifying distributions to avoid the 30% tax on the undistributed portion.

• Line 1a:
  • Enter expenses, contributions, gifts, etc.
• Line 1b:
  • Enter the Program-related investments
• Line 2:
  • Enter the amounts paid to acquire assets used or held for carrying out charitable activities:
• Line 3:
  • Enter the amounts set aside for specific charitable projects that satisfy the Suitability test and Cash distribution test
• Line 4:
  • Using the information above, Qualifying distributions can be derived and reported here.

• Lines 1 - 10:
  • Reduce any undistributed income from prior years
  • The organization may use any part of or all remaining qualifying distributions for 2023 to satisfy elections.
  • If no elections are involved, apply the remaining qualifying distributions to the 2023 distributable amount on Line 4d.
  • If the remaining qualifying distributions are greater than the 2023 distributable amount, the excess is treated as a distribution out of corpus on Line 4e.
  • Enter the amount of excess distributions carryover, for the five prior tax years.

• Line 1a:
  • Enter your private foundation’s ruling or determination date (if received) and under what section the foundation is described.
• Line 1b:
  • Check if your foundation is a private operating foundation described in section 4942(j)(3) or 4942(j)(5).
• Line 2:
  • Enter the lesser of the adjusted net income or the minimum investment return for each year listed and provide details about the qualifying distributions.
• Line 3:
  • Enter details about the alternative test relied upon.
    • “Assets” alternative test
    • “Endowment” alternative test
    • “Support” alternative test

• Line 1:
  • Provide information regarding foundation managers.
• Line 2:
  • Provide information regarding contributions, grants, gifts, loans, scholarships, etc., programs.
• Line 3:
  • Enter details about the grants and contributions paid during the year or approved for future payment.

• Lines 1 - 13:
  • Enter details about program service revenue, Membership dues and assessments, Dividends and interest from securities and etc.,

• Line 1:
  • Enter “Yes” if your foundation engaged in any transfers or transactions with any other organization described in section 501(c) (other than section 501(c)(3) organizations) or section 527 political organizations
• Line 1a:
  • Enter “Yes” if your foundation engaged in transfers with a noncharitable exempt organization of:
    • Cash
    • Other Assets
• Line 1b:
  • Enter “Yes” if your foundation engaged in transactions with a noncharitable exempt organization of:
    • Sales of assets to a noncharitable exempt organization
    • Purchases of assets from a noncharitable exempt organization
    • Rental of facilities, equipment, or other assets
    • Loans or loan guarantees
    • Performance of services or membership or fundraising solicitations
• Line 1c:
  • Enter “Yes” if your foundation is engaged in the sharing of facilities, equipment, mailing lists, other assets, or paid employees.
• Line 1d:
  • If you have answered “Yes” to any of the questions above, elaborate on those details in the table.
• Line 2:
  • Enter “Yes” if your foundation is affiliated with any tax-exempt organizations described in section 501(c) (other than section 501(c)(3)) or Section 527) and elaborate on the details in the table.

• The president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officers (such as a tax officer) can sign and approve the return in this section.
• A receiver, trustee, or assignee must sign any return that they are required to file for a corporation.
• If the return is filed for a trust, the authorized trustee or trustees must sign.

Sign and date the form and fill in the signer's title.