Part II. Community Building Activities

Enter in this part the costs of the organization's activities that it engaged in during the tax year to protect or improve the community's health or safety, and that aren't entered in Part I of this schedule. Some community building activities may also meet the definition of a community health improvement service, as defined in Worksheet 4. Don't enter in Part II community building costs that are entered in Part I, line 7e. An organization that enters information in this Part II must describe in Part VI how its community building activities promote the health of the communities it serves.

If the filing organization makes a grant to an organization to be used to accomplish one of the community building activities listed in this part, then the organization should include the amount of the grant on the appropriate line in Part II. If the organization makes a grant to a joint venture in which it has an ownership interest to be used to accomplish one of the community building activities listed in this part, enter the grant on the appropriate line in Part II, but don't include in Part II the organization's proportionate share of the amount spent by the joint venture on such activities to avoid double counting.

Line 1. “Physical improvements and housing” include, but aren't limited to, the provision or rehabilitation of housing for vulnerable populations, such as removing building materials that harm the health of the residents, neighborhood improvement or revitalization projects, provision of housing for vulnerable patients upon discharge from an inpatient facility, housing for low-income seniors, and the development or maintenance of parks and playgrounds to promote physical activity.

Line 2. “Economic development” can include, but isn't limited to, assisting small business development in neighborhoods with

vulnerable populations and creating new employment opportunities in areas with high rates of joblessness.

Line 3. “Community support” can include, but isn't limited to, child care and mentoring programs for vulnerable populations or neighborhoods, neighborhood support groups, violence prevention programs, and disaster readiness and public health emergency activities, such as community disease surveillance or readiness training beyond what is required by accrediting bodies or government entities.

Line 4. “Environmental improvements” include, but aren't limited to, activities to address environmental hazards that affect community health, such as alleviation of water or air pollution, safe removal or treatment of garbage or other waste products, and other activities to protect the community from environmental hazards. The organization cannot include on this line or in this part expenditures made to comply with environmental laws and regulations that apply to activities of itself, its disregarded entity or entities, a joint venture in which it has an ownership interest, or a member of a group exemption included in a group return of which the organization is also a member. Similarly, the organization cannot include on this line or in this part expenditures made to reduce the environmental hazards caused by, or the environmental impact of, its own activities, or those of its disregarded entities, joint ventures, or group exemption members, unless the expenditures are for an environmental improvement activity that:

1. Is provided for the primary purpose of improving community health,

2. Addresses an environmental issue known to affect community health, and

3. Is subsidized by the organization at a net loss.

An expenditure may not be entered on this line if the organization engages in the activity primarily for marketing purposes.

Line 5. “Leadership development and training for community members” includes, but isn't limited to, training in conflict resolution; civic, cultural, or language skills; and medical interpreter skills for community residents.

Line 6. “Coalition building” includes, but isn't limited to, participation in community coalitions and other collaborative efforts with the community to address health and safety issues.

Line 7. “Community health improvement advocacy” includes, but isn't limited to, efforts to support policies and programs to safeguard or improve public health, access to health care services, housing, the environment, and transportation.

Line 8. “Workforce development” includes, but isn't limited to, recruitment of physicians and other health professionals to medical shortage areas or other areas designated as underserved, and collaboration with educational institutions to train and recruit health professionals needed in the community (other than the health professions education activities entered in Part I, line 7f).

Line 9. “Other” refers to community building activities that protect or improve the community's health or safety that aren't described in the categories listed on lines 1 through 8 above. Examples might include, but aren’t limited to, spending on food security, nutrition, and other social determinants of health.

Refer to the instructions to Part I, line 7, columns (a) through (f), for descriptions of the types of information that should be entered in each column of Part II.

If the organization is filing a group return or has a disregarded entity or an ownership interest in one or more joint ventures, the organization may find it helpful to complete Part II separately for itself and for each disregarded entity, joint venture in which the organization had an ownership interest

4 2025 Instructions for Schedule H (Form 990)

during the tax year, and group affiliate. The organization should combine the amounts from all such tables, according to the combined instructions under Purpose of Schedule, earlier, and include the combined information in Part II.