Schedule C. Hospitals and Medical Research Organizations

An organization qualifies as a hospital for purposes of classification under sections 509(a)(1) and 170(b)(1)(iii) if it is a:

• Hospital,

• Medical research organization operated in conjunction with a hospital, or

• Cooperative hospital service organization.

Hospital. An organization is a “hospital” if its principal purpose or function is providing medical or hospital care or medical education or research. Medical care includes treatment of any physical or mental disability or condition, on an inpatient or outpatient basis. Thus, if an organization is a rehabilitation institution, outpatient clinic, or community mental health or drug treatment center, it is a hospital if its principal function is providing treatment services, as described above.

A hospital doesn't include convalescent homes, homes for children or the aged, or institutions whose principal purposes or function is to train handicapped individuals to pursue a vocation.

Medical research organization. An organization is a “medical research organization” if its principal purpose or function is the direct, continuous, and active conduct of medical research in conjunction with a hospital. The hospital with which the organization is affiliated must be described in section 501(c)(3), a federal hospital, or an instrumentality of a governmental unit, such as a municipal hospital.

“Medical research” means investigations, experiments, and studies to discover, develop, or verify knowledge relating to the causes, diagnosis, treatment, prevention, or control of human physical or mental diseases and impairments. For more information, see Regulations section 1.170A-9(c)(2).

Cooperative hospital service organization. A cooperative hospital service organization performs one or more of the specific services listed below for one or more exempt hospitals on a cooperative basis. The services listed below are exclusive. A cooperative service organization that provides services other than those listed below, or that provides services to an organization other than an exempt hospital, doesn’t qualify for exemption under section 501(c)(3). The list of services includes:

1. Data processing;
2. Purchasing (including the purchasing of insurance on a group basis);

Check “Yes,” if you make your racially nondiscriminatory policy known to all segments of the general community you serve by:

• Publishing a notice of your policy in a newspaper of general circulation that serves all racial segments of the community;

• publicizing your policy over broadcast media in a way that is reasonably expected to be effective; or

• display a notice of your policy at all times on your primary, publicly accessible Internet home page in a manner reasonably expected to be noticed by visitors to the home page.

See Rev. Proc. 75-50, as modified by Rev. Proc. 2019-22, for guidance on the format and content of the required notice and whether any exceptions may apply to you.

A notice published in the legal

TIP notices section or classified

advertisements of your local newspaper generally is not acceptable.

Line 9a. If you answered “No,” to line 9, check the box on line 9a if you agree that you will publicize your nondiscriminatory policy in a way that meets the requirements of Revenue Procedure 75– 50, as modified by Revenue Procedure 2019-22.

Line 11. Enter the racial composition of your student body, faculty, and administrative staff in the spaces provided. Enter actual numbers, rather than percentages, for the current year and projected numbers for the next academic year. If the number is zero, then enter “0.”

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If you complete line 12 indicating

TIP you do or will provide loans or

scholarships, be sure your response to Part IV, line 15 is consistent with your response here.

Line 13. Identify each of your incorporators, founders, board members, donors of land, and donors of buildings by name (whether individuals or organizations).

Line 14. Answer “Yes,” if any individuals or organizations on your list have an objective to keep public or private school education segregated by race and explain how these individuals or organizations promote segregation in public or private schools.

Line 15. Answer “Yes,” if on a continuing basis, you will maintain for a minimum period of 3 years the following records.

• Your racial composition (similar to the information requested on Schedule B, line 11).

• Evidence that your scholarships and loans are awarded on a racially nondiscriminatory basis (similar to the information requested on Schedule B, line 12).

• Copies of all materials used by you or on your behalf to solicit contributions.

• Copies of brochures, application forms, advertisements, and catalogues dealing with student admissions, programs, and financial aid.

Answer “No,” if you don’t maintain records and explain how you meet the recordkeeping requirements under Rev. Proc. 75-50.

Failure to maintain these records