Form 990-PF Instructions for 2023: A Step-By-Step Guide

• Lines 1 to 8:

  Answer "Yes" or "No" to the questions regarding your foundation’s activities. If you answer "Yes" to any question, you must file Form 4720 to report and calculate any taxes imposed under sections 4941, 4942, 4943, 4944, and 4945 unless an exception applies.

• Line 1:

  • Provide the following details for each officer, director, trustee, and foundation manager:

  a. Name and Address

  b. Title and Average Hours Per Week

  c. Compensation

  d. Contributions to Employee Benefit Plans and Deferred Compensation

  e. Expense Accounts and Other Allowances

• Line 2:

  • Add compensation details for the five highest-paid employees, excluding those reported in Line 1. If there are no additional employees to report, enter "NONE".
  • At the bottom of the table, you need to enter the total number of employees who are paid more
    than $50,000.

• Line 3:

  • Enter the following details for the five highest-paid independent contractors who provided professional services, excluding those reported above. If none, enter "NONE".

  a. Name and address of each independent contractor paid more than $50,000.

  b. Type of Service

  c. Compensation

• Enter the total number of other contractors receiving over $50,000 at the bottom.

• Lines 1a to 1e:

  Provide details about the Fair Market Value (FMV) for different assets of your foundation.

• Lines 2 to 4:

  Enter the Acquisition indebtedness applicable to assets not used (or held for use) and the cash deemed held for charitable activities.

• Lines 5 and 6:

  Using this information, derive the Net value of noncharitable-use assets and Minimum investment return.

• Lines 1-7:

  Using the minimum investment return, investment income of the tax year, and recoveries, calculate the distributable amount that must be distributed by year-end to avoid the 30% tax on undistributed income.

• Lines 1a and 1b:

  Enter the value for expenses, contributions, gifts, and program-related investments

• Line 2:

  Enter the amounts paid to acquire assets used (or held for use) directly in carrying out charitable activities.

• Line 3:

  Enter the amounts set aside for specific charitable projects that meet the Suitability test and Cash distribution test.

• Line 4:

  Calculate and enter the qualifying distributions based on the information reported above.

(a) Corpus

(b) Years Prior to 2022

(c) For 2022

(d) For 2023

• Lines 1 and 2:

  Distributable amount for 2023 and cumulative undistributed income from prior years.

• Lines 3a to 3f:

  Excess distributions carryover to 2023 from 5 prior years, and the total amount of excess distributions carried over.

• Lines 4 and 4a to 4b:

  Enter the qualifying distributions for 2023 from Part X, and the amount spent on each category mentioned. Then, enter the remaining amount distributed apart from the corpus.

• Line 5:

  The amount of excess distributions carryover from prior years that has been applied to the 2023 distributions.

• Lines 6a to 6f:

  Enter the net amount of corpus remaining after adding excess distributions carryover, distributions treated as coming from corpus, and remaining corpus distributions, and subtracting any amounts applied to excess distributions carryover.

• Lines 7:

  Enter the amount treated as distributions out of corpus as per 170(b)(1)(F) or 4942(g)(3).

• Lines 8 to 10:

  Add the details of the excess distributions carried over from 2018.

  Calculate the distribution carryover to 2024 and fill out the details to help you analyze the excess from 2019 to 2023 tax years.

• Lines 1a and 1b:

  Enter your private foundation’s ruling or determination date and mention the section under which the foundation is described (section 4942(j)(3) or 4942(j)(5)).

• Lines 2a to 2e:

  Provide details about the distribution requirements.

• Lines 3a to 3c:

  Complete the alternative test for private operating foundation status which includes the test for assets, endowment and support. This section can be completed by entering the required information for the current and past three tax years and summing up the entries.

• Lines 1a to 1b:

  Provide information about the foundation, managers, contributions, grants, and similar programs.

• Lines 2a to 2d:

  Enter the information regarding any contributions, grants, gifts, loans, scholarships, and other related programs of the tax year.

• Lines 3a to 3b:

  Here you have to provide details about the grants and contributions paid during the year or approved to be paid and the corresponding total.

• Lines 1 to 13:

  Provide details about program service revenue, membership dues and assessments, interest on savings and temporary cash investments, dividends, and various other incomes.

• Line 1:

  Mention if your foundation (directly or indirectly) is involved in any transfers from the reporting foundation to a noncharitable exempt organization of cash, other assets, other transactions, sharing of facilities, equipment, mailing lists, other assets, or paid employees.

• Line 2:

  Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) (other than section 501(c)(3)) or in section 52.

  If “Yes”, the organization has to fill in the information

• (a) Name of organization

  (b) Type of organization

  (c) Description of relationship