Part V. Other Information — 2025 Inst 990-EZ (PDF)

Required Statements

Schedule A (Form 990). Section 501(c)(3) organizations must complete and attach Schedule A (Form 990).
Statement regarding personal benefit contract. If, in connection with a transfer to or for the use of the organization, the organization directly or indirectly pays premiums on any personal benefit contract, or there is an understanding or expectation that any person will directly or indirectly pay such premiums, the organization must do the following.
- Attach a statement describing the organization's involvement with the personal benefit contract(s).
- Report on Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, the premiums that the organization paid, and the premiums paid by others but treated as paid by the organization.
- Report and pay an excise tax, equal to premiums paid, on Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.

A “personal benefit contract” is generally any life insurance, annuity, or endowment contract that benefits, directly or indirectly, the transferor, a member of the transferor's family, or any other person designated by the transferor (other than an organization described in section 170(c)). See section 170(f) (10); Notice 2000-24, 2000-1 C.B. 952; and Ann. 2000-82, 2000-2 C.B. 385.

Line 33. Change in Activities Describe in Schedule O (Form 990) any significant activities that the organization conducted prior to the end of the tax year that it hasn’t previously reported to the IRS on Form 990-EZ or 990. Also, describe significant activities that were discontinued. If the organization has never filed a Form 990 or 990-EZ, answer “No.”

Tip: An organization must report new, significant program services or significant changes in how it conducts program services in Part III of Form 990-EZ and in Schedule O (Form 990), rather than in a letter to the IRS Exempt Organization Determinations Office (“EO Determinations”). EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report such new services or significant changes.

Line 34. Changes in Organizing or Governing Documents The organization must report significant changes to its organizing or enabling document by which it was created (articles of incorporation, association, or organization; trust instrument; constitution; or similar document), and to its rules governing its affairs (bylaws, regulations, operating agreement, or similar document). Report changes made since the prior Form 990-EZ was filed, or that weren’t reported on any prior Form 990, and that were made before the end of the tax year.

Examples of significant changes to the organizing or governing documents include changes to:

The organization's name;
The organization's exempt purposes or mission;
The number, composition, qualifications, authority, or duties of the governing body's voting members;
The number, composition, qualifications, authority, or duties of the organization's officers or key employees;
The role of the organization's members in governance;
The distribution of assets upon dissolution;
The provisions to amend the organizing or enabling document or bylaws;
The quorum, voting rights, or voting approval requirements of the governing body members or the organization's stockholders or membership;
The policies or procedures contained within the organizing documents or bylaws regarding compensation of officers, directors, trustees, or key employees; conflicts of interest; whistleblowers; or document retention or destruction; and
The composition or procedures of an audit committee contained within the organizing document or bylaws.

Examples of insignificant changes made to organizing or governing documents that aren’t required to be reported here include changes to the organization's registered agent with the state and to the required or permitted number or frequency of governing body or member meetings.

Describe significant changes on Schedule O (Form 990), but don’t attach a copy of the amendments or amended document to Form 990-EZ (or recite the entire amended document verbatim), unless such amended documents reflect a change in the organization's name. See the instructions for Item B. Checkboxes, earlier, regarding attachments required in the event of a change in the organization's name; these attachments must be conformed copies of the original documents.

A conformed copy is one that agrees with the original document and all amendments to it. If the copies aren’t signed, they must be accompanied by a written declaration signed by an officer authorized to sign for the organization, certifying that they are complete and accurate copies of the original documents. Photocopies of articles of incorporation showing the certification of an appropriate state official need not be accompanied by such a declaration. See Revenue Procedure 68-14, 1968-1 C.B. 768, for details.

In some cases, if the exempt organization changes its legal structure, such as from a trust to a corporation, the new legal entity must file a new exemption application to establish that it qualifies for exemption. However, the IRS no longer requires a new exemption application from a domestic 501(c) organization that undergoes certain changes of its form or place of organization described in Revenue Procedure 2018-15, 2018-9 I.R.B. 379, available at IRS.gov/irb/2018-09_IRB .

Lines 35a and 35b. Unrelated Business Income Political organizations described in section 527 aren’t required to answer these questions.

Check “Yes” on line 35a if the organization's total gross income from all of its unrelated trades and businesses is $1,000 or more during the tax year. See Pub. 598 for a description of unrelated business income, and see the Instructions for Form 990-T for the filing requirements of Form 990-T.

If the organization answered “Yes” to line 35a but answered “No” to line 35b because it didn’t file a Form 990-T for the tax year, then explain in Schedule O (Form 990) why the organization didn’t file a Form 990-T.

If the organization had income from business activities, such as those reported on lines 2, 6a, and 7a (among others), but not reported on Form 990-T, explain in Schedule O (Form 990) the reasons for not reporting the income on Form 990-T.

Neither Form 990-T nor Form 990-EZ is a substitute for the other. Items of income and expense reported on Form 990-T must also be reported on Form 990-EZ (and vice versa) when the organization is required to file both forms.

Caution: All tax-exempt organizations must pay estimated taxes on their unrelated business income if they expect their tax liability to be $500 or more.

20 2025 Instructions for Form 990-EZ

Line 35c. Section 6033(e) Tax for Lobbying Expenditures If the organization checks “No” to line 35c, it is certifying that it wasn’t subject to the notice and reporting requirements of section 6033(e) and that the organization had no lobbying and political expenditures potentially subject to the proxy tax.

Section 6033(e) notice and reporting requirements and proxy tax. Section 6033(e) requires certain section 501(c)(4), 501(c)(5), and 501(c)(6) organizations to tell their members the portion of their membership dues that were allocable to the political or lobbying activities of the organization. If an organization doesn’t give its members this information, then the organization is subject to a proxy tax. The tax is reported on Form 990-T.

If the organization checks “Yes” on line 35c to declare that it had reportable section 6033(e) lobbying and political expenses in the tax year (and potential liability for the proxy tax):

Complete Schedule C (Form 990), Part III (see instructions), and
Attach this schedule to Form 990-EZ.

Only the following tax-exempt organizations are subject to the section 6033(e) notice and reporting requirements, and a potential proxy tax.

Section 501(c)(4) social welfare organizations.
Section 501(c)(5) agricultural and horticultural organizations.
Section 501(c)(6) organizations.

If the organization isn’t tax exempt under sections 501(c) (4), 501(c)(5), or 501(c)(6), check “No” on line 35c. If the organization meets Exception 1 or 2 next, it is excluded from the notice, reporting, and proxy tax requirements of section 6033(e), and it should check “No” on line 35c. See also Revenue Procedure 98-19, 1998-1 C.B. 547.

Exception 1. Section 6033(e)(3) exception for nondeducti- ble dues.

All organizations exempt from tax under section 501(a), other than section 501(c)(4), 501(c)(5), and 501(c)(6) organizations.
Local associations of employees' and veterans' organizations described in section 501(c)(4), but not section 501(c)(4) social welfare organizations.
Labor unions and other labor organizations described in section 501(c)(5), but not section 501(c)(5) agricultural and horticultural organizations.
Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations that receive more than 90% of their dues from:

a. Section 501(c)(3) organizations;

b. State or local governments;

c. Entities whose income is exempt from tax under section

115; or

d. Organizations described in (1) through (3), previously.

Section 501(c)(4) and 501(c)(5) organizations that receive more than 90% of their annual dues from persons, families, or entities that each paid annual dues of $143 or less in 2025 (adjusted annually for inflation). See Revenue Procedure 2024-40, 2024-45 I.R.B. 1100, sec. 2.47.
Any organization that receives a private letter ruling from the IRS stating that the organization satisfies the section 6033(e)(3) exception.
Any organization that keeps records to substantiate that 90% or more of its members can’t deduct their dues (or

similar amounts) as business expenses whether or not any part of their dues are used for lobbying purposes.

Any organization that isn’t a membership organization.

Caution: Special rules treat affiliated social welfare organizations, agricultural and horticultural organizations, and business leagues as parts of a single organization for purposes of meeting the nondeductible dues exception. See Revenue Procedure 98-19.

Exception 2. Section 6033(e)(1) $2,000 in-house lobbying exception. An organization satisfies the $2,000 in-house lobbying exception if it:

Didn’t receive a waiver for proxy tax owed for the prior year;
Didn’t make any political expenditures or foreign lobbying expenditures during the current tax year; and
Incurred lobbying expenses during the current tax year consisting only of in-house direct lobbying expenses totaling $2,000 or less, but excluding any allocable overhead expenses.

Definitions

Grassroots lobbying. Refers to attempts to influence any segment of the general public regarding legislative matters or referendums.

Direct lobbying includes attempting to influence:

Legislation through communication with legislators and other government officials, and
The official actions or positions of covered executive branch officials through direct communication.

Direct lobbying doesn’t include attempting to influence:

The general public regarding legislative matters (grassroots lobbying).

Other lobbying includes:

Grassroots lobbying,
Foreign lobbying,
Third-party lobbying, and
Dues paid to another organization that were used to lobby.

In-house expenditures include:

Salaries, and
Other expenses of the organization's officials and staff (including amounts paid or incurred for the planning of legislative activities).

In-house expenditures don’t include:

Any payments to other taxpayers engaged in lobbying or political activities as a trade or business, and
Any dues paid to another organization that are allocable to lobbying or political activities.

Line 36. Liquidation, Dissolution, Termination, or Significant Disposition of Net Assets If there was a liquidation, dissolution, termination, or significant disposition of net assets, enter “Yes” and complete and attach the applicable parts of Schedule N (Form 990).

For a complete liquidation, dissolution, termination, or cessation of operations, also check the “Final return/terminated” box in the heading of the return.

A “significant disposition of net assets” is a sale, exchange, disposition, or other transfer of more than 25% of the FMV of the organization's net assets during the year, regardless of whether the organization received full or adequate consideration. A significant disposition of net assets may result from either an expansion or contraction of operations. A significant disposition of net assets involves:

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One or more dispositions during the organization's tax year amounting to more than 25% of the FMV of the organization's assets as of the beginning of its tax year; or
One of a series of related dispositions or events commenced in a prior year that, when combined, comprise more than 25% of the FMV of the organization's assets as of the beginning of the tax year when the first disposition of net assets occurred. Whether a series of related dispositions is a significant disposition of net assets depends on the facts and circumstances in each case.

Examples of the types of transactions that are significant dispositions of net assets required to be reported on Schedule N (Form 990), Part II, include:

Taxable or tax-free sales or exchanges of exempt assets for cash or other consideration (such as a social club described in section 501(c)(7) selling land, or an exempt organization selling assets it had used to further its exempt purposes);
Sales, contributions, or other transfers of assets to establish or maintain a partnership, joint venture, or corporation (for-profit or nonprofit), regardless of whether such sales or transfers are governed by section 721 or section 351, whether or not the transferor receives an ownership interest in exchange for the transfer;
Sales of assets by a partnership or joint venture in which the exempt partner has an ownership interest;
Transfers of assets under a reorganization in which the organization is a surviving entity; and
A contraction of net assets resulting from a grant or charitable contribution of assets to another organization described in section 501(c)(3).

Tip: An organization filing Form 990-EZ need not complete Schedule N (Form 990), Part II, for a transaction that isn’t a significant disposition of net assets.

The following aren’t considered significant dispositions of net assets for purposes of Schedule N (Form 990), Part II.

The change in composition of publicly traded securities held in an exempt organization’s passive investment portfolio.
Asset sales made in the ordinary course of the organization’s exempt activities to accomplish the organization’s exempt purposes, such as gross sales of inventory.
Grants or other assistance made in the ordinary course of the organization’s exempt activities to accomplish the organization’s exempt purposes, such as the regular charitable distributions of a United Way or other federated fundraising organization.
A decrease in the value of net assets due to market fluctuation in the value of assets held by the organization.
Transfers to a disregarded entity of which the organization is the sole member.

Line 37. Expenditures for Political Purposes Political organizations described in section 527 aren’t required to answer this question.

A political expenditure is one intended to influence the selection, nomination, election, or appointment of anyone to a federal, state, or local public office, or office in a political organization, or the election of Presidential or Vice Presidential electors. It doesn’t matter whether the attempt succeeds.

An expenditure includes a payment, distribution, loan, advance, deposit, or gift of money, or anything of value. It also includes a contract, promise, or agreement to make an expenditure, whether or not legally enforceable.

All section 501(c) organizations. An exempt organization that isn’t a political organization must file Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, if it is

treated as having political organization taxable income under section 527(f)(1).

If a section 501(c) organization establishes and maintains a section 527(f)(3) separate segregated fund, it is the fund's responsibility to file its own Form 1120-POL if the fund meets the Form 1120-POL filing requirements. Do not include the segregated fund's receipts, expenditures, and balance sheet items on the Form 990-EZ of the section 501(c) organization that establishes and maintains the fund. When answering question 37 on its Form 990-EZ, the section 501(c) organization should disregard the political expenses and Form 1120-POL filing requirement of the segregated fund. However, when a section 501(c) organization transfers its own funds to a separate segregated section 527(f)(3) fund for use as political expenses, the section 501(c) organization must report the transferred funds as its own political expenses on its Form 990-EZ.

Section 501(c)(3) organizations. A section 501(c)(3) organization will lose its tax-exempt status if it engages in political activity.

A section 501(c)(3) organization must pay a section 4955 excise tax for any amount paid or incurred on behalf of, or in opposition to, any candidate for public office. The organization must pay an additional excise tax if it fails to correct the expenditure timely.

A manager of a section 501(c)(3) organization who knowingly agrees to a political expenditure must pay a section 4955 excise tax, unless the agreement isn’t willful and there is reasonable cause. A manager who doesn’t agree to a correction of the political expenditure may have to pay an additional excise tax.

When an organization promotes a candidate for public office (or is used or controlled by a candidate or prospective candidate), amounts paid or incurred for the following purposes are political expenditures.

Remuneration to such individual (a candidate or prospective candidate) for speeches or other services.
Travel expenses of such individual.
Expenses of conducting polls, surveys, or other studies, or preparing papers or other material for use by such individual.
Expenses of advertising, publicity, and fundraising for such individual.
Any other expense that has the primary effect of promoting public recognition or otherwise primarily accruing to the benefit of such individual.

An organization is effectively controlled by a candidate or prospective candidate only if such individual has a continuing, substantial involvement in the day-to-day operations or management of the organization.

A determination of whether the primary purpose of an organization is promoting the candidacy or prospective candidacy of an individual for public office is made on the basis of all the facts and circumstances. See section 4955 and Regulations section 53.4955.

Use Form 4720 to figure and report these excise taxes.

Line 38. Loans to or From Officers, Directors, Trustees, and Key Employees Enter the end-of-year unpaid balance of secured and unsecured loans made to or received from officers, directors, trustees, and key employees (as defined in Part IV, earlier). For example, if the organization borrowed $1,000 from one officer and loaned $500 to another, none of which has been repaid, report $1,500 on line 38b.

For loans outstanding at the end of the year, complete and attach Schedule L (Form 990), Part II. See the Instructions for Schedule L (Form 990).

22 2025 Instructions for Form 990-EZ

Report any interest expense paid to an officer, director, trustee, or key employee on line 16 (except for mortgage interest reportable on line 14) and any interest income paid by an officer, director, trustee, or key employee on line 8.

Line 39. Section 501(c)(7) Organizations

Gross receipts test. See Appendix C: Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and Section 501(c)(15) Organizations , later, for a discussion of the gross receipts test for purposes of determining exemption under section 501(c)(7). This definition of gross receipts differs from the definition for purposes of header Item L. Determining Gross Receipts , earlier, and determining whether the organization must file Form 990 or 990-EZ.

Line 39a. Include capital contributions, initiation fees, and unusual amounts of income not included in figuring gross receipts for the purpose of determining the exempt status of section 501(c)(7) organizations, as discussed in Appendix C: Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and Section 501(c)(15) Organizations , later.

Line 39b. Gross receipts for public use of club facilities are gross receipts (as defined above for 501(c)(7) exemption purposes) derived from the use of the organization's facilities by persons other than members, spouses of members, dependents of members, or guests of members.

Investment income and Form 990-T. If a section 501(c)(7) organization qualifies as tax exempt under the gross receipts test described in Appendix C, then include the amount entered on line 39b of Form 990-EZ on the club's Form 990-T if the club is required to file Form 990-T. Investment income earned by a section 501(c)(7) organization isn’t tax-exempt income unless it is set aside for one or more of the following purposes: religious, charitable, scientific, literary, educational, or the prevention of cruelty to children or animals.

If the combined amount of an organization's gross investment income and other unrelated business income is $1,000 or more, it must report the investment income and other unrelated business income on Form 990-T.

Nondiscrimination policy. A section 501(c)(7) organization isn’t exempt from income tax if any written policy statement, including the governing instrument and bylaws, allows discrimination on the basis of race, color, or religion.

However, section 501(i) allows social clubs to retain their exemption under section 501(c)(7) even though their membership is limited (in writing) to members of a particular religion if the social club:

Is an auxiliary of a fraternal beneficiary society exempt under section 501(c)(8); and
Limits its membership to the members of a particular religion; or the membership limitation is:

a. A good-faith attempt to further the teachings or

principles of that religion, and

b. Not intended to exclude individuals of a particular race

or color.

Line 40a. Section 501(c)(3) Organizations: Disclosure of Excise Taxes Imposed Under Section 4911, 4912, or 4955 Section 501(c)(3) organizations must disclose any excise tax imposed during the year under section 4911 (excess lobbying expenditures); 4912 (disqualifying lobbying expenditures); or, unless abated, 4955 (political expenditures). See sections 4962 and 6033(b).

Line 40b. Section 501(c)(3), 501(c)(4), and 501(c)(29) Organizations: Disclosure of Section 4958 Excess Benefit Transactions and Excise Taxes Answer “Yes” if the organization became aware, prior to filing this return, that it engaged in an excess benefit transaction with a disqualified person in the current tax year or in a prior year, and if the transaction hasn’t been reported on any of the organization's prior Forms 990 or 990-EZ.

Sections 6033(b) and 6033(f) require section 501(c)(3) and 501(c)(4) organizations to report the amount of taxes imposed under section 4958 (excess benefit transactions) involving the organization, unless abated, as well as any other information the Secretary may require concerning those transactions.

If the organization answers “Yes,” then complete and attach Schedule L (Form 990), Part I.

Tip: An excess benefit transaction can have serious implications for the disqualified person that entered into the transaction with the organization, any organization managers that knowingly approved of the transaction, and the organization itself. A section 501(c)(3), 501(c)(4), or 501(c)(29) organization that becomes aware that it may have engaged in an excess benefit transaction should obtain competent advice regarding section 4958, pursue correction of any excess benefit, and take other appropriate steps to protect its interests with regard to such transaction and the potential impact it could have on the organization's continued exempt status. See Appendix E: Section 4958 Excess Benefit Transactions, later, for a discussion of section 4958, and Schedule L (Form 990), Part I, about reporting excess benefit transactions.

Line 40c. Taxes Imposed on Organization Managers or Disqualified Persons Enter the amount of taxes imposed on organization managers and/or disqualified persons under sections 4912, 4955, and 4958, unless abated.

Line 40d. Taxes Reimbursed by the Organization Enter the amount of tax on line 40c that was reimbursed by the organization. Any reimbursement of the excise tax liability of a disqualified person or organization manager will be treated as an excess benefit unless:

The organization treats the reimbursement as compensation during the year the reimbursement is made; and
The total compensation to that person, including the reimbursement, is reasonable.

Line 40e. Tax on Prohibited Tax Shelter Transactions Answer “Yes” if the organization was a party to a prohibited tax shelter transaction as described in section 4965(e) at any time during the organization's tax year. An organization that files Form 990-EZ (other than a section 527 political organization) and that is a party to a prohibited tax shelter transaction must file Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction, and may also have to file Form 4720 and pay excise tax imposed by section 4965. For more information, see the instructions for Forms 8886-T and 4720.

Line 41. List of States List each state where the organization is filing a copy of this return in full or partial satisfaction of state filing requirements.

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Line 42a. Location of Books and Records Provide the name of the person who possesses the organization's books and records. The organization isn’t required to provide the address or telephone number for the personal residence of an individual. The organization's address and phone number can be used instead, or the business address and telephone number of such individual.

Line 42b. Foreign Financial Accounts Answer “Yes” if either item 1 or 2 below applies.

At any time during the calendar year ending with or within the organization's tax year, the organization had an interest in, or signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account); and

a. The combined value of the accounts was more than

$10,000 at any time during the calendar year; and

b. The accounts weren’t with a U.S. military banking facility

operated by a U.S. financial institution.

The organization owns more than 50% of the stock in any corporation that would answer “Yes” to item 1 above.

If “Yes,” enter the name of the foreign country or countries. Continue on Schedule O (Form 990) if more space is needed.

If “Yes,” file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), electronically with the Department of the Treasury using FinCEN's BSA E-Filing System. Because FinCEN Form 114 isn’t a tax form, don’t file it with Form 990-EZ. See FINCEN.gov for more information.

Line 43. Section 4947(a)(1) Nonexempt Charitable Trusts A section 4947(a)(1) nonexempt charitable trust that has no taxable income under subtitle A can use Form 990-EZ to meet its section 6012 filing requirement by checking the box on line 43 (in which case Form 1041 isn’t required). In such case, enter on line 43 the total of exempt-interest dividends received or accrued (if reporting under the accrual method of accounting) during the tax year. Such tax-exempt interest includes exempt-interest dividends received from a mutual fund or other regulated investment company as well as tax-exempt interest received directly.

Section 4947(a)(1) nonexempt charitable trusts must complete all sections of the Form 990-EZ and schedules that 501(c)(3) organizations must complete. All references to a section 501(c)(3) organization in the Form 990-EZ, schedules, and instructions include a section 4947(a)(1) trust (for instance, such a trust must complete Schedule A (Form 990)), unless expressly excepted.

Trust fund recovery penalty. If certain excise, income, social security, and Medicare taxes that must be collected or withheld aren’t collected or withheld, or these taxes aren’t paid to the IRS, a trust fund recovery penalty may apply. The trust fund recovery penalty may be imposed on all persons (including volunteers) who the IRS determines were responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so.

This penalty doesn’t apply to volunteer unpaid members of any board of trustees or directors of a tax-exempt organization if these members are solely serving in an honorary capacity, don’t participate in the day-to-day or financial activities of the organization, and don’t have actual knowledge of the failure to collect, account for, and pay over these taxes. However, the preceding sentence doesn’t apply if it results in no person being liable for the penalty.

The penalty is equal to the unpaid trust fund tax. See Pub. 15 (Circular E) for more details, including the definition of responsible persons.

Line 44a. Donor Advised Funds

Caution: A sponsoring organization of a donor advised fund must file Form 990 rather than Form 990-EZ, regardless of the amount of its gross receipts or net assets.

A sponsoring organization is any of the following types of organizations if it maintains one or more donor advised funds.

A section 501(c)(3) public charity described in section 509(a)(1), (2), or (3).
A veterans' organization, organized in the United States or any of its territories, no part of the net earnings of which inures to the benefit of any private shareholder or individual, that meets the requirements to receive deductible contributions under section 170(c)(3).
A domestic fraternal organization described in section 501(c)(8) or (10) that uses charitable contributions exclusively for charitable purposes.
A cemetery company described in section 501(c)(13).

A “donor advised fund” is a fund or account:

That is separately identified by reference to contributions of a donor or donors,
That is owned and controlled by a sponsoring organization, and
Over which the donor or donor advisor has or reasonably expects to have advisory privileges in the distribution or investment of amounts held in the donor advised fund or account because of the donor's status as a donor.

A donor advised fund doesn’t include any fund or account:

That makes distributions only to a single identified organization or governmental entity; or
For which a donor or donor advisor gives advice about which individuals receive grants for travel, study, or other similar purposes if:

a. The donor’s or donor advisor's advisory privileges are

performed exclusively by such person in the donor’s or donor advisor's capacity as a committee member in which all of the committee members are appointed by the sponsoring organization;

b. No combination of donors or donor advisors directly or

indirectly controls the committee; and

c. All grants from the fund or account are awarded on an

objective and nondiscriminatory basis following a procedure approved in advance by the board of directors of the sponsoring organization. The procedure must be designed to ensure that all grants meet the requirements of section 4945(g)(1), (2), or (3); or

That the Secretary exempts from being treated as a donor advised fund because either such fund or account is advised by a committee not directly or indirectly controlled by the donor or donor advisor or such fund benefits a single identified charitable purpose. See Notice 2006-109, 2006-51 I.R.B. 1121, and any future related guidance.

A “donor advisor” is any person appointed or designated by a donor to advise a sponsoring organization on the distribution or investment of amounts held in the donor's donor advised fund or similar account.

24 2025 Instructions for Form 990-EZ

Line 44b. Hospital Facilities If the organization operated one or more hospital facilities during the tax year, it must complete and file Form 990 and Schedule H (Form 990) and not Form 990-EZ.

A “hospital facility” is a facility that is required to be licensed, registered, or similarly recognized by a state as a hospital. This includes a hospital that is operated through a disregarded entity or joint venture treated as a partnership for federal tax purposes. It doesn’t include hospitals that are located outside the United States. It also doesn’t include hospitals that are operated by entities organized as separate legal entities from the organization that are treated as corporations for federal tax purposes.

Tip: The definition of “hospital” for Schedule A (Form 990), Part I, is different from the definition of “hospital facility” for Schedule H (Form 990). See the Glossary in the Form 990 instructions for the respective definitions.

Lines 44c and 44d. Payments for Indoor Tanning Services The organization should check “Yes” for line 44c if it received any payments during the year for indoor tanning services. “Indoor tanning services” are services employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.

If an organization received a payment for services for indoor tanning services during the year, it must collect from the recipient of the services a tax equal to 10% of the amount paid for such service, whether paid by insurance or otherwise, and remit such tax quarterly to the IRS by filing Form 720, Quarterly Federal Excise Tax Return. If the organization filed Form 720 during the year, it should check “Yes” to line 44d. If it answers “No” to line 44d, it should explain in Schedule O (Form 990) why it didn’t file Form 720.

Line 45a. Section 512(b)(13) Controlled Entity Answer “Yes” if the organization had a controlled entity within the meaning of section 512(b)(13) during the tax year. A “controlled entity within the meaning of section 512(b)(13)” may be a stock or nonstock corporation, association, partnership, LLC, or trust of which the controlling organization owns more than 50% of:

The stock of a corporation (measured by voting power or value),
The profits or capital interest in a partnership, or
The beneficial interest in a trust or other entity.

For the definition of “control” in this context, see section 512(b)(13)(D) and Regulations section 1.512(b)-1(l)(4) (substituting “more than 50%” for “at least 80%” in the regulations, for purposes of this definition). For the definition of “control of a nonprofit organization,” see the instructions for Line 49. Transfers to Exempt Non-Charitable Related Organizations , later.

Line 45b. Transactions With a Section 512(b) (13) Controlled Entity A controlling organization of a controlled entity under section 512(b)(13) must file Form 990 and Schedule R (Form 990), Related Organizations and Unrelated Partnerships, rather than Form 990-EZ, if the controlling organization either:

Received or accrued from the controlled entity any interest, annuities, royalties, or rent, regardless of amount, during the tax year; or

Brother/Sister. An organization controlled by the same person or persons that control the filing organization. However, if the filing organization is a trust that has a bank or financial

Engaged in another type of transaction (see the Instructions for Schedule R (Form 990) for a description of transactions) with the controlled entity, if the amounts involved during the tax year for such type of transaction exceeded $50,000.

Caution: The organization should check “Yes” to line 45b only if transactions with the controlled entity are described in (1) or (2) above. That organization should file Form 990 and Schedule R (Form 990). If transactions with the controlled entity are not described in (1) or (2), the organization isn’t precluded from filing Form 990-EZ because of those transactions and should check “No” to line 45b.

Line 46. Political Campaign Activities Answer “Yes” and complete the applicable parts on Schedule C (Form 990), Part I, if the organization participated or intervened in (including the publishing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office, directly or indirectly. See the Instructions for Schedule C (Form 990) for a discussion of political activity.