Thanks for the help Critter.

Wait - you're not a supporting organization at all. I remember speaking to the IRS about this. Even though you might feel like you support the school, that's not the intent of this definition (for the typical independent PTO). We checked box #12, "an organization that normally receives...."

Your best source of advice when completing IRS forms is always the IRS. Don't be intimidated to ask what you might be afraid is a "stupid" question. I've called them back 3-4 times to get clarification on the same issue. They're really pretty approachable and want to help. It's in their best interest that your form be completed accurately, too.

I'm going to go pull out my 990/990EZ stuff and see if I can give you better answer, but in the meantime..are you getting the 990 mixed up with the 990EZ? The passage you quoted starts off "Form 990".

The instructions for 990 EZ does not include Part IV of Schedule A. Last year we checked box 13, but this year you must indicate which type of supporting organization: Type 1, Type 2, or Type 3. How do I know which one? Can't find it anywhere in the instructions Can anyone help? Also, I just found our application for exempt status (form 1023) and there we indicated that we were a non-private foundation under 9i: "normally receiving no more than one-third of its support from gross investment income and more than one-third of its support from contributions. . ."

I am not enjoying this part of my duties as treasurer! :confused:

Edited to add: I found this tidbit on another website:

Form 990, Schedule A-Part IV-Reason for Non-Private Foundation Status has been revised to require supporting organizations that check the box for line 13 to indicate the type of supporting organization they are under Section 509(a)(3), Type I, II or III. This is the first time, outside of the exemption application process, that IRS has asked that an organization disclose its type of classification as supporting organization. If unsure, organizations will need to look to their organizing documents and current activities as well as consult with their tax advisors and/or counsel to determine which classification suits their organization and should be aware IRS is closely scrutinizing Type III supporting organizations, and current legislation can have a significant impact on support (new rules make it difficult for private foundations to make grants to Type III organizations.)

Type I supporting organizations are "operated, supervised, or controlled by" the supported organization.
Type II supporting organizations are "supervised or controlled in connection with" the supported organization.
Type III supporting organizations are "operated in connection with" the supported organization. Since Type III relationships are less formal than a Type I or Type II relationship, Type III organizations must meet a responsiveness test and an integral part test. Section 1.509(a)-4(i)(2) and (3) of the Income Tax Regulations. These tests are designed to ensure that the supporting organization is responsive to needs of a public charity and that the public charity oversees the operations of the supporting organization

So now how do I determine if I am Type I, Type II, or type III? Or am I doing this all wrong?

[ 10-21-2006, 01:33 PM: Message edited by: DSTres ]