Section 3. Request for Reclassification as an

Exempt Operating Foundation, as Described in Section 4940(d)(2) Section 4940(d) provides that the term “exempt operating foundation,” with respect to any tax year, applies to any private foundation if:

• Such foundation is an operating foundation, as defined in section 4942(j)(3);

• Such foundation has been publicly supported under sections 509(a)(1) and 170(b)(1)(A)(vi) or section

509(a)(2) for at least 10 years, or such foundation was an operating foundation, as defined in section 4942(j) (3), as of January 1, 1983;

• At all times during the tax year, the governing body of such foundation (i) consists of individuals at least 75% of whom are not disqualified individuals, as defined in section 4940(d)(3)(B), and (ii) is broadly representative of the general public; and

• At no time during the year does such foundation have an officer who is a disqualified individual.

Submit documentation showing that you meet the requirements for classification as an operating foundation, as defined in section 4942(j)(3). Refer to the instructions above regarding a request for reclassification as a private operating foundation, as described in section 4942(j)(3).

Line 1. In general, a private operating foundation is a private foundation that devotes most of its resources to the active conduct of its exempt activities.

To qualify as a private operating foundation, an organization must meet an income test and one of three alternative tests. The alternative tests include an assets test, an endowment test, or a support test. The tests are applied each year so it is possible a private foundation could meet the requirements in one year and not in the next.

Line 2. Submit documentation indicating whether or not you have been publicly supported under sections 509(a) (1) and 170(b)(1)(A)(vi) or section 509(a)(2) for at least 10 years, or documentation that you were an operating foundation, as defined in section 4942(j)(3), as of January 1, 1983.

Line 3. Answer “Yes” if, at all times during the tax year, your governing body (i) consisted of individuals at least 75% of whom are not disqualified individuals, as defined in section 4940(d)(3)(B); and (ii) had been broadly representative of the general public. If “No,” explain.

Line 4. Answer “Yes” if, at any time during the year, you had an officer who is a disqualified individual and explain.

Section 507(b)(1)(B) allows a private foundation to terminate its private foundation status and be reclassified as a public charity. An organization may terminate its private foundation status under section 507(b)(1)(B) if it meets the requirements of section 509(a)(1), (2), or (3) for a continuous 60-month period beginning with the first day of any tax year and notifies the IRS before beginning the 60-month period that it is terminating its private foundation status. See Schedule J, later, for reporting at the end of the 60-month period.

If a private foundation obtains an advance ruling that it can be expected to satisfy the requirements of section 507(b)(1)(B)(i) during the 60-month period, then contributors may rely on such ruling as set forth in Regulations section 1.507-2(d)(3), and there will be no penalty under section 6651 for failure to pay section 4940

16 Instructions for Form 8940 (Rev. 12-2025)

tax during the 60-month period if the organization fails to terminate its private foundation status. The organization cannot otherwise rely on the advance ruling during the 60-month period or thereafter. Information regarding the user fee for the advance ruling can be found in Rev. Proc. 2026-5, 2026-1 I.R.B. 258 (updated annually).

By making this request, you attest to the following.

• The name and address of the private foundation is correct as listed in Part I of this form.

• The submission of this form serves as a statement of your intention to terminate your private foundation status and you are requesting an advance ruling.

• The date your regular tax year begins is correctly listed in Part I of this form.

• The date the 60-month termination period begins will be the first day of the tax period following the date of your request.

At the end of this form, upload a completed Form 872-B. As a condition to receiving the advance ruling, you must use this form to consent to extend the period of limitations to assess section 4940 tax, for any tax year within the advance ruling period, to 4 years after filing the Form 990 or 990-PF annual information return for the last tax year within the 60-month period.

Line 1. Select the foundation classification you are requesting and complete any required information.

Line 2. Describe your past, current, and proposed activities, and how you intend to become a public charity (in other words, how you will attract the necessary public support and anticipated sources of support or how you will operate to meet the requirements of your intended classification).

Line 3. Enter the date that corresponds to the first day of the tax year following your request.

Section 507(b)(1)(B) allows a private foundation to terminate its private foundation status and become a public charity. An organization may terminate its private foundation status under section 507(b)(1)(B) if it meets the requirements of section 509(a)(1), (2), or (3) for a continuous 60-month period beginning with the first day of any tax year and notifies the IRS before beginning the 60-month period that it is terminating its private foundation status.

By making this request, you attest to the following.

• The name and address of the private foundation is correct as listed in Part I of this form.

• The submission of this form serves as a statement of your intention to terminate your private foundation status.

• The date your regular tax year begins is correctly listed in Part I of this form.

• The date the 60-month termination period begins will be the first day of the tax period following the date of your request.

Form 872-B is optional for organizations not requesting an advance ruling; but, if the organization chooses not to

submit the form, it must pay the taxes on its investment income during the period. The organization must also establish immediately after the end of the 60-month period that it has met the requirements of section 509(a)(1), (2), or (3).

Line 1. Select the foundation classification you are requesting.

Line 2. Enter the date that corresponds to the first day of the tax year following your request.

Regulations sections 1.507-2(b)(4) and (c) require an organization, which is terminating its private foundation status, to notify the IRS that it has met the requirements of a public charity within 90 days after the end of the 60-month period. See Schedules H and I for advance ruling and advance notice, respectively, of termination of private foundation status.

Required attachment. If you are terminating your private foundation status as a public charity described under sections 509(a)(1) and 170(b)(1)(A)(iv), sections 509(a) (1) and 170(b)(1)(A)(vi), or section 509(a)(2), at the end of this form, upload a completed Schedule A (Form 990), Part II or III (as applicable), and your previously filed Form 8940 providing notice or requesting an advance ruling.

Line 1. Select the foundation classification you are seeking reclassification as and complete any required information.

Line 2. Provide a complete description of your current operations pertinent to the public charity status, as well as any changes during the 60-month period.

Canadian organizations that have received a Notification of Registration from the Canada Revenue Agency (formerly Canada Customs and Revenue Agency), and whose registrations haven’t been revoked (“Canadian registered charities”), are automatically recognized in the United States as organizations described in section 501(c)(3) and aren’t required to file Form 1023. Canadian registered charities are also presumed to be private foundations. If you’re a Canadian registered charity and want to be listed as an organization described in section 501(c)(3) on IRS.gov or request classification as a public charity rather than a private foundation, complete this schedule.

Line 1. Answer “Yes” if you have received a Notification of Registration from the Canada Revenue Agency. At the end of this form, upload a copy. If “No,” stop here.

Line 1a. Answer “Yes” if your registration has been revoked and explain.

Line 2. Answer “Yes” if you have completed Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b). At the end of this form, upload a copy.

Instructions for Form 8940 (Rev. 12-2025) 17

Line 3. Answer “Yes” if you are requesting recognition of section 501(c)(3) exemption and listing in Pub. 78 data as an organization eligible to receive tax deductible contributions.

Line 4. Enter the date you formed.

Line 5. Select your type of organization.

A corporation is generally an entity organized under a Canadian federal, provincial, or territorial statute.

A limited liability company that files its own exemption application is treated as a corporation rather than as a partnership.

An unincorporated association is generally organized under a constitution that is established by two or more individuals.

A trust may be formed by a trust agreement or declaration of trust. A trust may also be formed through a will. Generally, a trust must be funded with property, such as money, real estate, or personal property.

Line 6. Select the foundation classification you are seeking and complete any required information.

Line 6a. Answer “Yes” if you are requesting recognition of status as a private operating foundation.

To be a private operating foundation, you must engage directly in the active conduct of charitable, religious, educational, and similar activities, as opposed to indirectly carrying out these activities by providing grants to individuals or other organizations.

Line 6b. Describe how you meet the requirements for private operating foundation status, including how you meet the income test and either the assets test, the endowment test, or the support test. If you’ve been in existence for less than 1 year, describe how you are likely to satisfy the requirements for private operating foundation status.

There is no single definition of the word “church” for federal tax purposes. When determining whether a section 501(c)(3) religious organization is described as a church (described in sections 509(a)(1) and 170(b)(1)(A) (i)), we will consider characteristics generally attributed to churches and the facts and circumstances of each organization applying for public charity classification as a “church.”

The characteristics generally attributed to churches are:

• A distinct legal existence,

• A recognized creed and form of worship,

• A definite and distinct ecclesiastical government,

• A formal code of doctrine and discipline,

• A distinct religious history,

• A membership not associated with any other church or denomination,

• Ordained ministers ministering to the congregation,

• Ordained ministers selected after completing prescribed courses of study,

• A literature of its own,

• Established places of worship,

• Regular congregations,

• Regular religious services,

• Sunday schools for the religious instruction of the young, and

• Schools for the preparation of ministers.

Although you don’t need to meet each of the above criteria to be classified as a church, you’re generally required to have a congregation or other religious membership group. For purposes of foundation classification under sections 509(a)(1) and 170(b)(1)(A) (i), the term “church” includes, without limitation, mosques, temples, and synagogues, and certain other forms of religious organizations. For more information, see Pub. 1828, Tax Guide for Churches & Religious Organizations.

The practices and rituals associated with your religious beliefs or creed must not be illegal or contrary to public policy.

Line 1. Describe your written creed, statement of faith, or summary of beliefs.

Line 2. Your literature includes any writings about your beliefs, rules, or history.

Line 3. A “code of doctrine and discipline” refers to a body of laws or rules that govern behavior.

Line 4. A “religious hierarchy or ecclesiastical government” refers to people or institutions that exercise significant influence or authority over your “church.”

Line 5. Answer “Yes” if you’re part of a group of churches with similar beliefs and structures, such as a convention, association, or union of churches.

Line 6. A “form of worship” refers to religious practices that express your devotion to your creed, faith, or beliefs.

Line 7. Indicate the regular days and times of your religious services. Describe the order of events during your regular worship service and explain how the activities conducted as part of your services further your religious purposes.

Line 7a. Enter the average number of members and nonmembers who attend your regularly scheduled religious services.

Line 8. An “established place of worship” is a place where you hold regularly scheduled religious services. It may be a place that you own or rent, or that is provided free for your use.

Line 9. An “established congregation” or “other religious membership group” includes individuals who regularly attend and take part in the religious services of your organization at an established location. An established congregation generally doesn’t include members of only one family. If you answer “No,” because you don’t have an established congregation or other religious membership, you may be a religious organization that doesn’t qualify as a church.

18 Instructions for Form 8940 (Rev. 12-2025)

Line 9a. Enter the total number of your current members. If you have no members, enter “0.”

Line 9b. Answer “Yes” if you have a prescribed way to become a member. Answer “Yes” even if you just keep records of who is currently a member. Describe any actions required for individuals to become members.

Line 9c. Describe any rights and benefits of members. You should include details of any levels of membership and the rights and/or benefits associated with each level.

Line 9d. If your members may be associated with another denomination or church, describe the circumstances in which your members would be members of your church and another church.

Line 9e. Family includes an individual’s spouse, ancestors, children, grandchildren, great-grandchildren, siblings (whether by whole or half-blood), and the spouses of children, grandchildren, great-grandchildren, and siblings.

Line 10. Answer “Yes” if you conduct baptisms, weddings, funerals, or other religious rites.

Line 11. A school for the religious instruction of the young refers to any regularly scheduled religious, educational activities for youth.

Line 12. A “prescribed course of study” refers to formal or informal training. It doesn’t include self-ordination or paying a fee for an ordination certificate without completing a course of study. Describe the course of study completed by your religious leaders.

Line 15. Provide any additional information you would like us to consider that would help us classify you as a church.

An organization qualifies as a school (for purposes of classification under sections 509(a)(1) and 170(b)(1)(A) (ii)) if all the following apply. It:

• Presents formal instruction as its primary function,

• Has a regularly scheduled curriculum,

• Has a regular faculty of qualified teachers,

• Has a regularly enrolled student body, and

• Has a place where educational activities are regularly carried on.

The term “school” includes primary, secondary, preparatory, high schools, colleges, and universities. An organization won’t be described as a school under sections 509(a)(1) and 170(b)(1)(A)(ii) if it engages in both educational and noneducational activities unless the latter are merely incidental to the educational activities. Nontraditional schools such as an outdoor survival school or a yoga school may qualify. However, an organization may further an educational purpose without satisfying all the conditions listed above that describe a school. Such organizations may qualify as public charities based upon their sources of support as organizations described in sections 509(a)(1) and 170(B)(1)(A)(vi) or section 509(a) (2).

Line 1. Answer “Yes” if you normally have a regularly scheduled curriculum, a regular faculty of qualified

teachers, a regularly enrolled student body, and facilities where your educational activities are regularly carried on.

Tip: If you answer “Yes,” you should maintain in your records evidence that you meet these factors, such as:

• A list of required courses of study, dates and times courses are offered, and other information about how to complete required courses;

• Certification by the appropriate state authority or successful completion of required training for qualified teachers;

• Records of regular attendance by students at your facility; and

• A lease agreement or deed for your facility.

If you answer “No,” you may not meet the requirements of a school and you may need to reconsider your foundation classification request.

Line 2. Answer “Yes” if the primary function of your school is the presentation of formal instruction. If you answer “No,” you may not meet the requirements for classification as a school and may want to reconsider your foundation classification request.

Line 2a. Select the best description(s) of your school.

Line 3. Answer “Yes” if you’re a public school and explain how you’re operated by the state or a subdivision of a state, including if you have a signed contract or agreement with a state or local government under which you operate and receive funding. If you answer “Yes,” stop here.

Line 4. Answer “Yes” if you were formed or substantially expanded when public schools in your district or county were desegregated by court order.

Caution: If you’re unsure whether to answer “Yes,” contact an appropriate school official.

Line 5. Answer “Yes” if a state or federal administrative agency or judicial body ever determined your organization to be racially discriminatory. Identify the parties involved and the forum in which the case was presented. Explain the reason for the action, the decision reached, and provide legal citations (if any) for the decision. Also, explain in detail any changes made in response to the action against your organization or the decision reached.

Line 6. Answer “Yes” if your right to receive financial aid or assistance from a governmental agency has ever been revoked or suspended and explain.

Establishment of racially nondiscriminatory policy. Every private school is subject to the provisions of Rev. Proc. 75-50, 1975-2 C.B. 587, modified by Rev. Proc. 2019-22, 2019-22 I.R.B. 1260. See Pub. 557 under Private Schools, which sets forth the requirements of Rev. Proc. 75-50.

Publication of racially nondiscriminatory policy. An organization described in section 501(c)(3) that is a private school must publish a notice of its racially nondiscriminatory policy as to students as follows: “The M school admits students of any race, color, national origin, and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the school. It doesn’t discriminate on the basis of race, color, national origin, and ethnic origin in administration of its educational policies, admission

Instructions for Form 8940 (Rev. 12-2025) 19

policies, scholarship and loan programs, and athletic and other school-administered programs.”

Annual certification. A private school must certify annually that it meets the requirements of Rev. Proc. 75-50, as modified by Rev. Proc. 2019-22, by filing Schedule A (Form 990).

Schools that don’t file Form 990 or 990-EZ must make the certification by filing Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax.

Line 7. Answer “Yes” if your organizing document or bylaws contain a nondiscriminatory statement as to students similar to the one shown above or if you adopted such a policy by resolution of your governing body. State where your policy is located in your organizing document, bylaws, or if it is in an adopted resolution. If you answered “No,” you must adopt a nondiscriminatory policy before submitting this request.

Line 8. Answer “Yes” if your brochures, application forms, advertisements, and catalogues dealing with student admissions, programs, and scholarships contain a similar statement to the following: “The M school admits students of any race, color, and national or ethnic origin.”

Line 8a. If you answered “No” to line 8, check the box on line 8a if you agree that all future printed materials, including website content, will contain a statement of nondiscriminatory policy as to students similar to the one provided above.

Line 9. You must make your nondiscriminatory policy known to all segments of the general community served by the school. One way to meet this requirement is to publish your nondiscriminatory policy annually in a newspaper or over broadcast media. Rev. Proc. 2019-22 now allows this publication requirement to be satisfied by continuously displaying your nondiscrimination statement on your Internet site, as described below.

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

requirements of Rev. Proc. 75-50, as modified by Rev. Proc. 2019-22.

Line 10. Answer “Yes” if you (or any department or division of your organization) discriminate in any way on the basis of race with respect to admissions, use of facilities or exercise of student privileges, faculty or administrative staff, or scholarship or loan programs and explain fully.

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.”

If you’re not operational, submit an estimate based on the best information available (such as the racial composition of the community you serve).

Caution: Don’t identify students, faculty, and staff by name.

Line 12. Enter the racial composition of students to whom you award loans and scholarships 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.” If you won’t provide any loans or scholarships, check the box provided.

Caution: Don’t identify students by name.

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 line 11).

• Evidence that your scholarships and loans are awarded on a racially nondiscriminatory basis (similar to the information requested on 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.

Caution: Failure to maintain these records or produce them upon the proper request will create a presumption that you haven’t complied with the requirements of Rev. Proc. 75-50.

• 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

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

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.

Tip: A notice published in the legal notices section or classified advertisements of your local newspaper is not generally 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

20 Instructions for Form 8940 (Rev. 12-2025)

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.

10. Communications,

11. Record center, and

12. Personnel services (including selection testing, training, and education of personnel).

Line 1. Answer “Yes” if you’re a medical research organization, as described above.

Line 1a. As a medical research organization, you must be associated with a hospital described in section 501(c) (3), a federal hospital, or an instrumentality of a government. Provide the name of the hospital(s) you’re associated with and describe the relationship(s).

Line 1b. List your assets and their fair market value and the portion of your assets directly devoted to medical research and stop here.

Line 2. Answer “Yes” if you’re a cooperative hospital service organization and describe the services you provide to your member hospitals and the exempt status of your membership and stop here.

Line 3. Answer “Yes” if all the doctors in your community are eligible for staff privileges at your facility. You must answer “Yes” even if staff privileges at your facilities are limited by capacity, provided that all qualified medical professionals in your community may seek and would be considered for eligibility.

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 (except for certain skilled nursing facilities under 42 U.S.C. 1395x(j)), 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(d)(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:

Answer “No” if not all the doctors in your community are eligible for staff privileges at your facility.

If you answer “No,” describe in detail how you limit eligibility for staff privileges at your facility. Include details of your eligibility criteria and selection procedures for your courtesy staff of doctors.

Line 4. Answer “Yes” if you admit all patients in your community who can pay for themselves or through some form of third-party reimbursement (for example, private health insurance, Medicare, or Medicaid).

Answer “No” if you limit admission for these individuals in any way and describe your admission policy in detail, including how and why you restrict patient admission.

Line 5. Answer “Yes” if you offer emergency medical or hospital care at your facility on a 24-hour basis, 7 days a week.

Line 5a. Answer “Yes” if the reason you don’t maintain a full-time emergency room is either because you’re a specialty hospital where emergency care would be inappropriate for the services you provide or another emergency medical care facility that provides such services is located so near to you as to make such services as you might provide duplicative.

Line 6. Answer “Yes” if you provide free or low-cost medical or hospital care services. If you answer “Yes,” describe your policy and to whom you provide these services. Include details on how these services promote benefits to the community.

Example. You may want to indicate how you determine who is eligible for the services, how you inform the general public about your policy, any requirements you require of patients to receive reduced cost or free care, and any agreements you might have with municipalities or

Line 4. Answer “Yes” if you admit all patients in your community who can pay for themselves or through some form of third-party reimbursement (for example, private health insurance, Medicare, or Medicaid).

1. Data processing,

2. Purchasing (including the purchasing of insurance on a group basis),

3. Warehousing,

4. Billing and collection (including the purchasing of patron accounts receivable on a recourse basis),

5. Food,

6. Clinical,

7. Industrial engineering,

8. Laboratory,

9. Printing,

Instructions for Form 8940 (Rev. 12-2025) 21

governmental agencies to subsidize the cost of admitting or treating patients through this policy.

Line 7. Answer “Yes” if you have a formal program of medical training and research. If you answer “Yes,” describe your program, including the programs you offer, the scope of such programs, and affiliation with other hospitals or medical care providers with which you carry on the medical training or research programs.

Line 8. Answer “Yes” if you have a formal program of community educational programs and describe your programs, including the types of programs offered, the scope of the programs, and affiliation with other hospitals or medical care providers with whom you offer community educational programs.

Line 9. Answer “Yes” if you have a board of directors that is representative of the community you serve or if an organization described under section 501(c)(3) with a community board exercises rights or powers over you.

Answer “Yes” if you’re subject to a state corporate practice of medicine law that requires your governing board to be composed solely of physicians licensed to practice medicine in the state.

Line 9a. List each board member by name and describe that person’s relationship to you. Also, for each board member, describe if and how that individual represents the community. Generally, hospital employees and staff physicians aren’t individuals considered to be community representatives. If you operate under a parent organization whose board of directors isn’t comprised of a majority of individuals who are representative of the community you serve, provide the requested information for your parent organization’s board of directors as well.

Line 10. Section 501(r). Answer “Yes” if you operate a facility that is required by a state to be licensed, registered, or similarly recognized as a hospital. Organizations that respond “Yes” to this question are required to meet additional requirements described in section 501(r) to be considered a hospital exempt from taxation by section 501(c).

Line 10a. A community health needs assessment (CHNA) is an assessment of the significant health needs of the community. To meet the requirements of section 501(r)(3), a CHNA must take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health, and must be made widely available to the public. Each hospital facility must conduct a CHNA at least once every 3 years and adopt an implementation strategy to meet the community health needs identified through such CHNA.

Answer “Yes” if the hospital facility conducted a complying CHNA in the current tax year or in either of the 2 immediately preceding tax years or if the hospital facility intends to conduct a CHNA before the end of its first 3-year period.

Line 10b. A financial assistance policy (FAP), sometimes referred to as a “charity care policy,” is a policy describing how an organization will provide financial assistance at its hospital(s) and other facilities, if any. Financial assistance includes free or discounted health services provided to

persons who meet the organization’s criteria for financial assistance and are unable to pay for all or a portion of the services. Financial assistance doesn’t include:

• Bad debt or uncollectible charges that the organization recorded as revenue but wrote off due to a patient’s failure to pay or the cost of providing such care to such patients,

• The difference between the cost of care provided under Medicaid or other means-tested government programs or under Medicare and the revenue derived therefrom,

• Self-pay or prompt pay discounts, or

• Contractual adjustments with any third-party payors.

Answer “Yes” if the hospital facility has adopted a written financial assistance policy and a written policy relating to emergency medical care, as required by section 501(r)(4).

Line 10c. Under section 501(r)(5), the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care are the amounts generally billed to individuals who have insurance covering such care.

Answer “Yes” if the hospital facility:

1. Limits or will limit any charges to FAP-eligible individuals to whom the hospital facility provided emergency or other medically necessary services to not more than the amounts generally billed to individuals who had insurance covering such care; and

2. Prohibits, or upon beginning operations will prohibit, the use of gross charges, as described in section 501(r)(5).

The hospital facility may check “Yes” if it charged more than the amounts generally billed to individuals who had insurance covering such care to an individual if:

• The charge in excess of the amounts generally billed wasn’t made or requested as a pre-condition of providing medically necessary care to the FAP-eligible individual;

• As of the time of the charge, the FAP-eligible individual hadn’t submitted a complete FAP application and hadn’t otherwise been determined by the hospital facility to be FAP eligible for care; and

• If the individual subsequently submits a complete FAP application and is determined to be FAP eligible for care, the hospital facility refunds any amount that exceeds the amount he or she is determined to be personally responsible for paying as a FAP-eligible individual, unless such excess amount is less than $5.

Line 10d. Answer “Yes” if the hospital facility has, or will have at the beginning of operation, either a separate written billing and collections policy, or include in a written FAP:

• A description of any actions that the hospital facility (or other authorized party) may take related to obtaining payment of a bill for medical care, including, but not limited to, any extraordinary collection actions (ECAs);

• The process and time frames the hospital facility (or other authorized party) uses in taking those actions (including, but not limited to, the reasonable efforts it

22 Instructions for Form 8940 (Rev. 12-2025)

will make to determine whether an individual is FAP eligible before engaging in ECAs); and

• The office, department, committee, or other body with the final authority or responsibility for determining that the hospital facility has made reasonable efforts to determine whether an individual is FAP eligible and may therefore engage in ECAs against the individual.

Line 1. Answer “Yes” if you normally receive a substantial part of your support (excluding income you receive from an activity substantially related to the charitable, educational, or other section 501(c)(3) purpose that’s the basis for your exemption under section 501(a)) from the United States or any state or its political subdivision or from direct or indirect contributions from the general public. If “No,” explain your sources of support.

Line 2. Answer “Yes” if your bylaws or other organizational documents indicate that you are organized and operated exclusively to receive, hold, invest, and administer property and to make expenditures to or for the benefit of a college or university described in sections 509(a)(1) and 170(b)(1)(A)(ii).

Line 3. Answer “Yes” if the college or university is an agency or instrumentality of a state or political subdivision thereof, or is owned or operated by a state or political subdivision thereof, or by an agency or instrumentality of one or more states or political subdivisions. List the name and EIN of the college or university.

Line 1. Explain in detail how you are operated in conjunction with a land grant college or university or a non-land grant college of agriculture (as defined in section 1404 of the Agricultural Research, Extension, and Teaching Policy Act of 1977).

Line 2. Explain in detail your agricultural research program and how contributions to such program will be spent.

Line 1. Answer “Yes” if you are described in section 501(c).

Line 1a. Answer “Yes” if you are recognized as exempt by the IRS.

A central organization described in section 501(c) must be recognized as exempt by the IRS by filing an application for exemption or, in the case of a central organization that has had its exemption automatically

revoked, by filing an application for reinstatement of exemption.

Line 1b. Answer “Yes” if you are not yet recognized as exempt, but have submitted an application for recognition of exempt status, or, if you have had your exemption automatically revoked, answer “Yes” if you have applied for reinstatement of exempt status.

Line 1c. An organization is a political subdivision if it is a municipal corporation, or a division of state or local government that has been delegated the right to exercise part of the government’s sovereign power, such as the power to tax, the power of eminent domain, or the police power.

Line 6. Section 4.01(2) of Rev. Proc. 2026-8 requires a central organization to have at least five subordinate organizations to obtain a group exemption letter.

All subordinate organizations must have a valid EIN. Each subordinate organization (or the central organization on a subordinate organization’s behalf) must obtain its own EIN before it can be included in a group application.

If your subordinate organizations are described in section 501(c)(3) and classified as public charities, section 6.04(1)(i) of Rev. Proc. 2026-8 requires you to provide the paragraph(s) of sections 509(a) and 170(b)(1) (A) (if applicable) under which your subordinate organizations are classified.

Line 6a. Section 4.06 of Rev. Proc. 2026-8 requires each subordinate organization to provide written authorization to the central organization to include the subordinate organization in the group application. The authorization must also acknowledge that the central organization may remove the subordinate organization from the group

An organization is an integral part of a political subdivision even if it does not have sovereign powers, based on facts and circumstances, including the state’s degree of control over the organization and the state’s financial commitment to the organization

An organization is an instrumentality if it is created by or pursuant to state statute and operated for public purposes. Generally, an instrumentality performs government functions but does not have sovereign powers.

Line 2. Section 4.01(3) of Rev. Proc. 2026-8 prohibits a central organization from maintaining more than one group exemption letter.

Line 3. Section 4.03(2)(a) of Rev. Proc. 2026-8 requires the organizations to be included in your group exemption letter as subordinate organizations (hereinafter subordinate organizations) to be described in the same paragraph of section 501(c), but they are not required to be described in the same paragraph of section 501(c) as the central organizations.

Line 4. Section 6.04(1)(d) of Rev. Proc. 2026-8 requires you to provide the paragraph of section 501(c) under which your subordinate organizations are described.

Line 5. Section 6.04(1)(k) of Rev. Proc. 2026-8 explains that you must describe your subordinate organizations’ purposes and activities, including the sources of their receipts and nature of their expenditures.

Instructions for Form 8940 (Rev. 12-2025) 23

exemption letter with or without cause in accordance with the terms of Rev. Proc. 2026-8. The authorization must be signed by a duly authorized officer of the subordinate organization.

Line 7. A subordinate organization’s affiliation with the central organization is demonstrated by facts and circumstances showing that is a chapter, local, post, or unit of the central organization. Examples of affiliation include:

• Inclusion of the subordinate organization’s information on a group return described in section 1.6033-2(d) that includes the four-digit group exemption number;

• The current inclusion of the subordinate organization in a directory of subordinate organizations updated annually by the central organization; or

• In the case of a subordinate organization that is a church or a convention or association of churches, the sharing of common religious bonds or convictions with the central organization.

A subordinate organization is subject to the central organization’s general supervision if the central organization:

• Annually obtains, reviews, and retains information on the subordinate organization’s finances, activities, and compliance with annual filing requirements; and

• Annually transmits (including electronically) written information to (or otherwise educates) the subordinate organization about the requirements to maintain tax-exempt status under the appropriate paragraph of section 501(c), including annual filing requirements, if applicable.

A subordinate organization is subject to the central organization’s control if:

• The central organization appoints the subordinate organization’s directors or trustees who possess a majority of the voting power with respect to the subordinate organization’s governance,

• The central organization appoints a majority of the subordinate organization’s officers,

• The subordinate organization’s directors or trustees possessing a majority of the voting power with respect to the subordinate organization’s governance are directors or trustees of the central organization,

• A majority of the subordinate organization’s officers are officers of the central organization, or

• The central organization and the subordinate organization enter into a written agreement that evidences the central organization’s control over the subordinate organization’s activities and operations.

Line 8. Section 4.03(2)(b) of Rev. Proc. 2026-8 requires subordinate organizations that share the same purpose to have a uniform purpose statement in their governing instruments. A governing instrument is a legal document that establishes the existence of an organization and defines its powers. Examples include a charter, trust indenture, articles association, or similar documents.

If one or more subordinate organizations covered by a group exemption letter have a purpose that is different from the purpose of other subordinate organizations covered by the letter, the subordinate organizations that share a purpose must include the same uniform purpose

statement in their governing instruments. The statement must generally describe the purpose of the subordinate organizations.

Line 9. Answer “Yes” if your subordinate organizations are described in section 501(c)(3).

Line 9a. Section 4.04(2) of Rev. Proc. 2026-8 provides that an organization described in section 501(c)(3) that is classified as a private foundation under section 509(a) may not be included in a group exemption letter.

Every organization described in section 501(c)(3) is classified as a private foundation unless it qualifies for one of the public charity exceptions under section 509(a)(1), (2), (3), or (4). For some organizations, the primary distinction between a public charity and a private foundation is its sources of financial support.

Line 9b. Section 4.04(3) of Rev. Proc. 2026-8 provides that organizations described in section 501(c)(3) and classified as Type III supporting organizations are not eligible to be included in a group exemption letter as subordinate organizations. An organization is classified as a Type III supporting organization if, pursuant to section 509(a)(3)(B)(iii), it is operated in connection with one or more organizations described in section 509(a)(1) or (2).

Line 9c. See Rev. Proc. 75-50, Rev. Proc. 2019-22, and Rev. Rul. 71-447 for additional information.

If you answer, “Yes,” at the end of this form, upload the information required by Rev. Proc. 75-50, 1975-2 C.B. 587, as modified by Rev. Proc. 2019-22, 2019-22 I.R.B. 1260, and any other information necessary to establish that the subordinate organizations comply with the requirements of Rev. Rul. 71-447, 1971-2 C.B. 230.

Line 9d. See section 501(r) and Rev. Rul. 69-545 for additional information.

If you answer “Yes,” at the end of this form, upload the information necessary to establish that each subordinate organization meets the requirements of section 501(r) and Rev. Rul. 69-545, 1969-2 C.B. 117.

Line 10. Section 4.04(4) of Rev. Proc. 2026-8 provides that a subordinate organization that is organized as a qualified nonprofit health insurance issuer described in section 501(c)(29) may not be included in a group exemption letter.

Line 11. Section 4.04(1) of Rev. Proc. 2026-8 provides that a subordinate organization that is organized in a foreign country may not be initially included in a group exemption letter.

Foreign countries are countries other than the United States or its territories.

Line 12. Section 4.04(5) of Rev. Proc. 2026-8 provides that a subordinate organization that has had its exemption automatically revoked and that has not had its exemption reinstated after filing an application for reinstatement (as such term is defined in section 3.03 of Rev. Proc. 2026-8) may not be included in a group exemption letter.

Line 13. Answer “Yes” if your subordinate organizations are described in section 501(c)(4).

Line 13a. A subordinate organization described in section 501(c)(4) must submit Form 8976, Notice of Intent

24 Instructions for Form 8940 (Rev. 12-2025)

to Operate Under Section 501(c)(4), no later than 60 days after the date on which the organization was formed as a legal entity, in the manner described in Rev. Proc. 2016-41, 2016-30 I.R.B. 165 (unless an exception applies). A subordinate organization may authorize an individual representing a central organization to submit Form 8976 on behalf of the subordinate organization and to receive any communications relating to the submission.

Line 14. Answer “Yes” if you will file a group return on behalf of two or more of your subordinate organizations.

Line 14a. Section 4.03(2)(c) of Rev. Proc. 2026-8 provides that subordinate organizations included on a group return, filed by a central organization on behalf of those subordinate organizations, must be on the same annual accounting period as the central organization. Check this box to attest that each subordinate organization will be on the same accounting period as you.

Line 15. Answer “Yes,” if all your subordinate organizations were organized within 27 months from the date you’re submitting this application.

Section 10.01 of Rev. Proc. 2026-8 provides that if all the subordinate organizations included in a group application were formed within 27 months of the submission date of the group application, the effective date of exemption for each subordinate organization will be in the subordinate organization’s date of formation.

Line 15a. Section 10.01 of Rev. Proc. 2026-8 provides that if any subordinate organization included in a group application was formed more than 27 months before the filing of the group application, the effective date of exemption for all subordinate organizations listed in the group application, other than those subordinate organizations that were recognized as tax—exempt or included in another group exemption letter immediately prior to being included in the group application, will be the submission date of the group application.

Line 16. Section 7.01 of Rev. Proc. 2026-8 requires central organizations to submit the supplemental group ruling information described in section 7.02 of Rev. Proc. 2026-8 annually at least 30 days, but no more than 90 days, before the close of the central organization’s annual accounting period. A central organization may provide

additional updates at any time. Under section 8.01(1)(d) of Rev. Proc. 2026-8, the IRS may terminate a group exemption letter if the central organization does not submit timely and complete supplemental group ruling information.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. If you want your organization to be recognized as tax exempt by the IRS, you are required to give us the information. We need it to determine whether the organization meets the legal requirements for your requested miscellaneous determination.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. However, certain returns and return information of tax-exempt organizations and trusts are subject to public disclosure and inspection, as provided by section 6104.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for tax-exempt organizations filing this form is approved under OMB control number 1545-0047 and is included in the estimates shown in the instructions for their information return.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments . Or you can write to:

Internal Revenue Service Tax Forms and Publications 1111 Constitution Ave. NW, IR-6526 Washington, DC 20224

Do not send Form 8940 to this address.

Instructions for Form 8940 (Rev. 12-2025) 25