Form 990-PF Instructions for 2025:
How to Fill Out Form 990-PF?

Form 990-PF Key Facts

Parts everyone completes

The heading and Parts I (columns A and D), II, III, VI-A, VI-B, VII, VIII-A, VIII-B, XV-A, XV-B and XVI, plus the
signature block.

Parts that depend on your foundation type

Two notes before you start:

• Foundations with less than $5,000 in assets all year complete only line 16 in Part II, column (c).
• A section 4947(a)(1) trust with no taxable income can file Form 990-PF instead of Form 1041 by checking the box on Part VI-A, line 15.

Header (page 1)

What it's forIt identifies the foundation and tells the IRS what kind of return this is.

What to enter

• Name: the legal name. Add "aka" and the other name if you operate under one.
• Address: your principal office.
• Item A: one EIN.
• Item B: a phone number the public can call during business hours.
• Item G: whether this is an initial, final, amended or address-change return, or an initial return of a former
  public charity.
• Item H: the foundation type.

Part I: Analysis of revenue and expenses

What it's forIt sorts one year of income and spending into four columns, and each column answers a different question.

What to enter

• Line 1: contributions received. If any one person gave $5,000 or more, attach Schedule B. Only gifts of $1,000 or more from a person count toward that total. If no one reached it, check the box on line 2.
• Lines 3 and 4: interest and dividends. Tax-exempt interest stays out of column (b). It goes in column (c) only if you complete that column.
• Line 7: capital gain net income from Part IV, line 2.
• Lines 13 to 23: expenses. Column (b) holds only the costs of producing investment income, so costs that serve both investing and charity must be split on a reasonable basis.
• Line 25: grants actually paid, in column (d).
• Line 27b: net investment income, the base for the Part V tax. If it is negative, enter -0-.

Part II: Balance sheets

What it's forIt shows what the foundation owns and owes at the start and end of the year, and what those assets are worth today.

What to enter

• Lines 1 to 16: assets
• Lines 17 to 23: liabilities
• Lines 24 and 25: net assets with and without donor restrictions, if you follow FASB ASC 958. Otherwise use lines 26 to 28.
• Lines 29 and 30: totals

Part III: Analysis of changes in net assets

What it's forIt proves that Part I and Part II agree by walking from last year's net assets to this year's.

What to enter

• Line 1: net assets at the beginning of the year, which must match last year's ending figure
• Line 2: excess of revenue over expenses, from Part I, line 27a
• Line 3: other increases, itemized
• Line 5: decreases not already counted, itemized
• Line 6: must equal Part II, line 29, column (b)

Part IV: Capital gains and losses

What it's forIt calculates the gain from selling investments that is taxed under section 4940. Foreign foundations skip it.

What to enter

• Each sale, with a description, how acquired (P for purchase, D for donation), dates acquired and sold, gross sales price, depreciation, and cost basis plus selling expenses
• Column (h): the gain or loss
• Columns (i) to (l): also complete these for assets you owned on December 31, 1969

Part V: Excise tax on investment income

What it's forIt figures the one federal tax most private foundations pay, the section 4940 excise tax on net investment income.

What to enter

• Line 1: a domestic foundation enters 1.39% (0.0139) of Part I, line 27b. An exempt foreign foundation enters 4% of Part I, line 12, column (b). An exempt operating foundation under section 4940(d)(2) that holds a ruling or determination letter checks the box on line 1a, enters the ruling date, and enters "N/A" on line 1.
• Lines 2 to 5: lines 2 and 4 are for section 4947(a)(1) trusts and taxable foundations only. Everyone else enters -0-. Line 5 is your tax.
• Line 6: credits and payments. These are estimated payments and last year's overpayment, tax withheld at source for exempt foreign foundations, tax paid with Form 8868, and backup withholding withheld by mistake.
• Lines 8 to 11: any underpayment penalty (check the box if Form 2220 is attached), then tax due or overpayment. An overpayment can be credited to 2026 estimated tax or refunded. For a refund, complete and attach Form 8050.

Part VI-A: Statements regarding activities

What it's forThese yes-or-no questions tell the IRS about lobbying, political spending, unrelated business income, state registrations and a few other items that decide what else you owe or attach.

Part VI-B: Activities that may require Form 4720

What it's forIt screens for the chapter 42 excise taxes. A "Yes" on any item means you file Form 4720, unless an exception applies. A "Yes" does not by itself mean a tax is owed.

Part VII: Officers, directors and highest-paid people

What it's forIt tells the public who runs the foundation and who is paid by it. The full title covers officers, directors, trustees, foundation managers, highly paid employees and contractors.

What to enter

• Line 1: every officer, director, trustee and foundation manager, paid or not. Give name and address, title, average hours per week, compensation (enter -0- if unpaid), contributions to benefit plans, and expense accounts or allowances.
• Line 2: the five highest-paid employees not already on line 1, only if paid more than $50,000. Enter "NONE" if there are none, and add the total number of other employees over $50,000.
• Line 3: the five highest-paid independent contractors for professional services, again only if paid more than $50,000. Give name, type of service and compensation, plus the total number of others above $50,000.

Part VIII-A: Direct charitable activities

What it's forIt describes the programs the foundation runs itself, as opposed to grants it makes to others.

What to enter. The four largest direct charitable activities, with numbers that show reach (people or organizations served, conferences held, research papers produced) and the expenses for each.

Part VIII-B: Program-related investments

What it's forA program-related investment is a loan or similar investment made mainly to advance a charitable purpose, with no significant purpose of earning income.

What to enter. The two largest on lines 1 and 2, with amounts. Line 3 covers all others. The total goes to Part XI, line 1b, where it counts as a qualifying distribution.

Part IX: Minimum investment return

What it's forIt sets your yearly payout target, which is 5% of your investment assets. Parts IX to XII are the math behind this rule, and they work like a scoreboard:

• Part IX sets the target.
• Part X reduces the target by the excise tax you paid.
• Part XI counts what you actually gave.
• Part XII compares the two and carries any shortfall or surplus forward.

Domestic foundations complete Part IX. Foreign foundations complete it only if claiming operating status.

Part X: Distributable amount

What it's forIt turns the target into the amount you must actually distribute. Private operating foundations and certain foreign foundations check the box at the top and skip it.

What to enter

• Line 1: minimum investment return from Part IX
• Lines 2a to 2c: your Part V tax (line 5) plus any income tax
• Line 3: line 1 less line 2c
• Lines 4 to 6: recoveries of earlier qualifying distributions, then any permitted deduction
• Line 7: your distributable amount, which carries to Part XII, line 1

Part XI: Qualifying distributions

What it's forIt totals what you paid out for charitable purposes, which are the dollars that count against the target.

What to enter

• Line 1a: expenses and grants from Part I, line 26, column (d)
• Line 1b: program-related investments from Part VIII-B
• Line 2: amounts paid to buy assets used directly in your charitable work
• Lines 3a and 3b: amounts set aside for a specific project under the suitability test (prior IRS approval required) or the cash distribution test (attach the schedule)
• Line 4: the total, which carries to Part XII, line 4

Part XII: Undistributed income

What it's forIt tracks, year by year, whether you met the payout target and where any surplus or shortfall goes. If undistributed income from a year is still unpaid after the end of the following year, a 30% excise tax applies under
section 4942.

The four columns are (a) Corpus, (b) Years prior to 2024, (c) 2024 and (d) 2025.

Part XIII: Private operating foundations

What it's forIt proves that an operating foundation spends enough on its own programs. Only foundations answering "Yes" on Part VI-A, line 9 complete it.

What to enter

• Line 1: your ruling date, and whether you are described in section 4942(j)(3) or 4942(j)(5)
• Line 2 (income test): for 2025 and the three prior years, take the lesser of adjusted net income or minimum investment return, find 85% of it, and compare it with qualifying distributions made directly for active charitable work
• Line 3 (alternative tests): complete the one you rely on, which is assets, endowment (two-thirds of minimum investment return) or support

Part XIV: Supplementary information

What it's forIt explains how your grant program works and lists the grants you paid or approved. Complete it only if the foundation had $5,000 or more in assets at any time during the year. Foreign foundations described in section 4948(b) skip it.

What to enter

• Line 1a: managers who contributed more than 2% of total contributions received (and more than $5,000)
• Line 1b: managers who own 10% or more of a business in which the foundation also holds a 10% or greater interest
• Line 2: if you give only to preselected charities and don't accept unsolicited requests, check the box and stop. Otherwise complete 2a to 2d: who to contact, how to apply, deadlines, and limits on awards.
• Line 3: every grant paid during the year (3a) and approved for future payment (3b), with recipient name and address, relationship to any manager or substantial contributor if it is an individual, foundation status, purpose and amount

Part XV-A: Income-producing activities

What it's forIt shows where your gross income came from and which part, if any, is unrelated business income. Every amount in Part I, column (a), and the net rental figure on line 5b must be analyzed here.

What to enter. For each type of income, put the amount in the column that fits.

Complete line 12, then line 13 using the worksheet in the IRS instructions.

Part XV-B: Relationship to exempt purposes

What it's forIt asks you to explain how each amount in Part XV-A, column (e) helped carry out your exempt purposes, other than by supplying funds.

What to enter. The line number and a short explanation for each item. If column (e) is empty, there is nothing to explain, and "N/A" is the right entry.

Part XVI: Transactions with noncharitable exempt organizations

What it's forIt asks whether the foundation did business with exempt organizations that are not 501(c)(3) charities, such as social welfare groups or political organizations under section 527.

What to enter

• Line 1a: transfers of cash or other assets to such an organization
• Line 1b: sales, purchases, rentals, reimbursements, loans, loan guarantees, services, or membership and fundraising solicitations
• Line 1c: sharing facilities, equipment, mailing lists, other assets or paid employees
• Line 1d: if any answer is "Yes", complete the schedule, showing fair market value in column (b)
• Line 2: whether the foundation is affiliated with any 501(c) organization other than a 501(c)(3), or any section 527 organization. If "Yes", give name, type and relationship.

Signature and paid preparer

An officer or trustee signs under penalties of perjury, adds the date and title, and answers whether the IRS may discuss the return with the paid preparer. A paid preparer then completes the preparer block, including name, PTIN, firm name, firm EIN, address and phone.