!

CAUTION

We may request financial information for more than 5 years.

Answer “Yes,” if any of your officers, directors, or trustees:

• Is an officer, director, or trustee of another organization (other than a section 501(c)(3) organization) that you will purchase or sell goods, services, or assets from or to; or

• Possesses more than 35% ownership interest in any organization that you will purchase or sell goods, services, or assets from or to.

Arm’s length. An arm’s length standard exists where the parties have an adverse (or opposing) interest. For example, a seller wants to sell their goods at the highest possible price, while a buyer wants to buy at the lowest possible price. These are adverse interests.

In negotiating with a person, an adverse interest is assumed if that person is otherwise unrelated to you in the sense of not being in a position to exercise substantial influence over you or your affairs. If the person is in a position to

Line 5. Answer “Yes,” if any of your officers, directors, or trustees:

• Is an officer, director, or trustee in another organization (other than a section 501(c)(3) organization) that has a lease, contract, loan, or other agreement with you; or

• Possesses more than a 35% ownership interest in any organization that has a lease, contract, loan, or other agreement with you. For example, answer “Yes,” if one of your directors is an officer for a section 501(c)(4) organization with whom you have a lease for office space, or if one of your directors owns more than 35% of the voting stock of a corporation to which you made a loan.

Line 6. “Develop” means the planning, financing, construction, or provision of similar services involved in the acquisition of real property, such as land or a building. For example, you should provide information regarding the services of a consultant who arranges your acquisition of a facility through the issuance of tax-exempt bonds.

Line 7. “Manage” means to direct or administer. For example, you would provide information about an organization hired to administer a museum gift shop.

Line 8. A “joint venture” is a legal agreement in which the persons jointly undertake a transaction for mutual profit. Generally, each person contributes assets and shares risks. Like a partnership, joint ventures can involve any type of business transaction and the persons involved can be individuals, groups of individuals, companies, or corporations.