PREPARATION OF TAX FORM 990

Transcription

1 PREPARATION OF TAX FORM 990 The Temple with Combined Units return and Shrine Clubs Group return qualify under IRS Code Section 501(c)(10), Shriners International group exemption number Shrine temple and Shrine club holding corporations qualify independently under IRS Code Section 501(c)(2) and are not included under group exemption number Since the Shrine book of accounts is maintained on a calendar year basis, the 990 forms are to be filed by May 15. If additional time is required to file 501(c)(10) returns, an "Application for Extension of Time To File", Form 8868 must be filed before May 15. In the case of the Group return, a Form 8868 must be filed with a complete list of all EINs for every Shrine club. IRS Penalties for Late Filing under Section 6652(c)(1)(A), a penalty of $20 a day, not to exceed the smaller of $10,000 or 5% of the gross receipts of the organization for the year, may be charged when a return is filed late, unless the organization can show that the late filing was due to reasonable cause. Organizations with annual gross receipts exceeding $1 million are subject to a penalty of $100 for each day the failure continues (with a maximum penalty with respect to any one return of $50,000). The penalty begins on the due date for filing the Form 990. The use of a paid preparer does not relieve the organization of its responsibility to file a complete and accurate return. The penalty may also be charged if the organization files an incomplete return. To avoid having to supply missing information later, be sure to complete all applicable line items; answer Yes, or No to each question on the return; make an entry (including a zero when appropriate) on all total lines; and leave the question blank if a section does not apply. This penalty may also be imposed if the organization s return contains incorrect information. The following pages will assist in the preparation of the two annual informational Form 990 returns. This section addresses the completion of Form 990 and applicable schedules for the Temple and Combined Units return. Each line on the informational return 990 has been cross referenced to Shriners International chart of accounts where applicable. **To save time, complete the form and schedules in the order presented below; as certain later sections of the form must be completed first in order to complete earlier sections. TEMPLE WITH COMBINED UNITS Section A M (Page 1) Section A Left blank. Section B Check the appropriate box, if applicable. Section C The name should be Shriners International, Shriners, with temple address. Section D Employer identification number assigned to entity. Section E Telephone number. Section F Name and address of Principal Officer (Potentate). If he prefers to be contacted at the organization s address listed in item C, state same as C above. Section G Gross receipts: Record amount after completing Part VIII, Statement of Revenue by adding lines 6b (both columns), 7b (both columns), 8b, 9b, 10b, and 12, Column A. Updated MAY

2 Section H(a) Is this a group return for affiliates? Check No. H(b) Are all affiliates included? Should be left blank. H(c) The Group Exemption number is (Some software packages may give an error message when inputting the group exemption number; however, the 0229 must be on the return.) Section I Check 501 (c) box and enter 10 between brackets. Section J Optional. Section K Type of Organization. Other should be checked with Unincorporated Association written on the line. Section L Year of Formation. Section M State of legal domicile. PART VII Compensation of Officers, Director, etc. (Pages 7 & 8) List all officers even if they did not receive compensation. Column B, average hours per week must contain a value even if there were no hours worked. In this instance you would enter 0 (zero). Since column B is intended to uncover any unreasonable compensation paid to officers, volunteers need only provide an estimate. Enter 0 (zero) in columns D, E and F if none were paid. Total lines 1b-1d. Answer questions 2-5 and complete Section B, Independent Contractors, if applicable. Note: Professional fundraisers are considered independent contractors; however, they are only reported here if they received more than $100,000 in compensation. If you answered Yes to questions 2-5, complete Schedule J. See sample form on pages of this section. PART VIII Statement of Revenue (Page 9) Column A, Total Revenues must be completed for every reportable line item. Columns B, C, and D are to include amounts reportable for lines 1-12 (as appropriate) to show whether revenue earned is (B) related or exempt function income; (C) unrelated business income (UBI) [See pages in this section regarding Shrine UBI]; or (D) revenue is excluded from the definition of unrelated business income by Internal Revenue Code section 512, 513 or 514. For amounts entered in column (A) for lines 2a through 2e or lines 11a through 11c select a six digit business code from the list of unrelated business activity codes on pages of this section to identify the activity that generated the unrelated business activity. Enter the applicable code in the column marked business code. If none of the listed codes accurately describe the activity, enter Line No. 1a 1b Federated campaigns - Include total contributions received indirectly from the public such as solicitation campaigns conducted by federated agencies (United Way and Combined Federal Campaign). Membership dues - Include total contributions, gifts, third party fundraising donations, and bequests that are received directly from the public as well as donations to hospital patient transportation fund (Account 4300). It does not include accounts 4000 and 4010; which are disclosed on line 2. Also include proceeds from solicitation campaigns whereby contributors are entered in a drawing for the awarding of prizes; unless the entry fee of a Updated MAY

3 specified minimum amount is required per raffle or sweepstakes entry and the prizes awarded have more than a nominal value in which case the receipts and expenses would be reported on lines 9a and 9b Gaming Activities. Note: Shrine paper crusades are considered Fundraising Events, except any individual donors contributing more than $1,000 annually are to be included on this line and listed on Schedule B. Complete Schedule B, Schedule of Contributors. See the form on pages of this section. 1c 1d 1e 1f 1g Fundraising events Include the total amount of contributions received from fundraising events, which includes, but is not limited to, gaming events, dinners, auctions, and other events conducted for the sole or primary purpose of raising funds for the organization s exempt activities. Contributions are reported separately from fundraising revenue. For example, if a dinner is $400 a person and the dinner has a retail value of $160, then the $240 is recorded as a contribution on line 1c and 8a (memo field). The $160 is recorded on line 8a under gross fundraising. Related organizations - Include amounts contributed by shrine clubs to the temple's general or designated funds (Account 4090) and Shrine Hospital Patient Transportation Fund (SHPTF) (Account 4300). Government Grants Typically will not apply. Complete if applicable. Enter the amount of non-cash contributions included on lines 1a through 1f. If this amount exceeds $25,000 you must answer Yes to Part IV, line 29 and complete Schedule M. Sample form on pages 83 & 84 of this section. 2 List the five largest sources of program revenue. Enter gross revenue (without deducting any unrelated expenses) for each major program service. Note: Membership dues and assessments (Accounts 4000 & 4010), in addition to, charitable fundraising (Accounts ) are to be reported here in column (B) with business code Other sources of program revenue include: Advertising income (Account 4900) from Shrine magazine should be entered under column (C) with assigned business code and circulation income (Account 4920) should be shown as exempt function income under column (B). Temple restaurant/club operations (Account 4850) exclusively for its members are exempt function income under column (B). Revenues from restaurant/club operations rented to outsiders are subject to UBI tax under column (C) with assigned business code of Investment income (including dividends, interest, etc) should be entered under column (D). 4 & 5 Income from Tax Exempt Bonds & Royalties Typically will not apply. 6 Rental income/(loss) from investment property (real and personal). Generally, rental income from real property is not subject to UBI tax; therefore enter net rental income/(loss) amount under column (D), line 6d. Do not include on line 6a rental income related to the organization s exempt function. This would be reported as temple rental on line 2, column (B). Rental income from personal property is generally subject to UBI tax unless it is an incidental (10 percent or less) part of a lease of real property. Generally, personal property rentals would be a rare occurrence. If applicable, however, enter the net rental income (loss) from personal property under column (C), line 6d. Updated MAY

4 7d Net gain/(loss) from sales of assets other than inventory should be entered under column (D). Record the gross amount of the sale of investments or other assets on line 7a and the corresponding cost or expense on line 7b. The net gain/(loss) from these transactions is reported on line 7c; with the overall net gain/(loss) reported on 7d. 8a Gross income from (fraternal) fundraising events (Accounts ). Fundraising events include: dinners/dances, circus, sporting events, fish fry, auctions, etc. (Note: Charitable fundraising revenue was already reported on line 2 under program service revenue.) 8b Total direct fraternal fundraising expenses (Accounts ). 8c The net income/(loss) should be excluded from UBI revenue and reported under column (D). Note: If lines 1c and 8a in total are greater than $15,000, then complete Schedule G, Supplemental Information Regarding Fundraising or Gaming Activities, Part II. (See Part IV, line 18). Sample form and instructions are on pages of this section. 9 Net income/(loss) from gaming activities. Gaming income activities include: bingo, pull tabs, raffles, charitable gaming tickets, scratch-offs, pickle cards, etc. Direct gaming expenses include: cash and non-cash prizes, compensation to bingo callers and workers, rental of gaming equipment and cost of bingo supplies. Many games of chance are taxable. Income from Bingo games is not subject to tax on unrelated business income if the games meet the legal definition of bingo. For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. For example, instant bingo, in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. The temple will need to determine whether gaming at the temple is taxable for unrelated business income or whether it is excluded from tax. Any taxable gaming is to be reported under column (C) line 9c and non taxable gaming is to be reported under column (D) line 9c. Note: If line 9a is greater than $15,000, then complete Schedule G, Part III. (See Part IV, line 19) Sample form on pages of this section. Updated APR

5 10 Net income/(loss) from sale of inventory. The sale of inventory items reportable (Accounts ) are sales of those items the organization makes to sell to others or buys for resale. Any sale of goods relating to a fundraising event must be reported on line 8a. The net income/(loss) is excluded from tax and therefore is to be reported under column (D). 11 Miscellaneous revenue Report all other types of revenue not reportable on lines 1 through 10. List the three largest sources on lines 11a through 11c and all other revenue on line 11d. A business code must be entered for each of the three largest sources. Please refer to the Codes for Unrelated business Activity on pages of this section. 12 Total Revenue The amounts reported on line 12 in columns (B), (C), and (D), plus the amount reported on line 1h and 11e, should equal line 12, column (A). Page 1, Section G Gross receipts: Record amount after completing Part VIII, Statement of Revenue by adding lines 6b (both columns), 7b (both columns), 8b, 9b, 10b, and 12, Column A. PART IX Statement of Functional Expenses (Page 10) It is recommended that the following lines, at a minimum, be completed in this section: Lines 5-10 pertaining to Salary Administration (as applicable). Line 11e, pertaining to Professional Fundraising (professional fundraising expenses, other than fees, should be reported on line 24). If you report more than $15,000 on this line then you would answer Yes to question 17 in Part IV. If you are unable to break out expenses from fees, then the full amount should be included on line 11e. Line 21, Payments to Affiliates, pertains to expense payments made to Shriners International which include the $30 per capita tax, certificate fees, computer supplies, etc. Report on lines 24(a-d), column A the total of the four largest dollar amounts itemized by Shriners International group account classifications and all remaining miscellaneous expenses on line 24e. If the amount on line 24e exceeds 10% of the amount on line 25, column A, you must provide the detail of these expenses on Schedule O. Note: All charitable fundraising expense [(direct acct # ) and indirect expenses (acct #7480)] should be reported as one line item. Fraternal fundraising indirect expense (acct #7460) should be reported as a separate line item. You are not required to allocate expenses among columns B-D as these are only required of 501(c)(3) and 501(c)(4) organizations. Any expenses grouped under a heading of miscellaneous may not exceed 5% of the total expenses reported on line 25. Note: Lines 1 and 2 are not applicable. As payments to Shriners Hospitals for Children are considered donations and not grants; therefore, Schedule I is not required. Updated MAY

6 PART X (Page 11) A balance sheet with attached schedules for many end-of-year account balances is required. The Shriners International chart of accounts numbers are cross referenced to the tax return line. Line No. 1 Total of non-interest bearing cash accounts Total of interest bearing savings and temporary cash investments Not applicable. 4 Accounts receivable (net) & 1290 (Allowance for Doubtful receivables) 5 If you have a reportable amount, you should have answered Yes to question 26, Part IV, and completed Schedule L, Part II. Sample form on pages 81 & 82 of this section. 6 Not applicable. 7 Notes & Loans (net) & 1290 (Allowance for Doubtful receivables) 8 Inventories Prepaid expenses and deferred charges a Land, Building, Equipment and Paraphernalia 1500, 1510, 1520, 1530, 1540, 1550,1560 & b Less: Accumulated depreciation (complete Schedule D, Part VI, (sample form on pages of this section) 1519, 1529, 1539, 1549, 1559, 1569 & 1650 (Note: Investment property is included in lines 10a and 10b) Investments publicly traded securities Investments other securities (complete Schedule D, Part VII) Investments program related Not applicable. 14 Not applicable. 15 Other assets (complete Schedule D, Part IX) 17 Accounts payable and accrued expenses 2120, 2130, 2200, & Not applicable. 19 Deferred revenues Not applicable. 21 Escrow account liability (account over which you have signature authority and the funds are held for the benefit of another individual or organization). Complete Schedule D, Part IV. 22 Loans and other payables to current and former officers, directors, trustees, and key employees. Complete Schedule L, Part II (if applicable), sample form pages 81 & 82 of this section. 23 Mortgages and other secured notes payable 2000, 2010 & Unsecured notes and loans payable Other liabilities (complete Schedule D, Part X) Items properly reported on this line include Federal Income Taxes payable (2210) and secured and unsecured payables (2100 & 2110) to Updated MAY

7 Line No. related organizations. Organizations that follow SFAS 117, Check the box indicating that we follow SFAS 117 and complete the applicable lines. 27 Without Donor Restrictions With Donor Restrictions Not applicable Not applicable. 33 Total net assets or fund balances. 34 Total liabilities and net assets/fund balances. PART XII Financial Statements and Reporting (Page 12) Answer questions 1 through 2b as they apply to the temple. Question 2c should be Yes. Question 2d should have the Consolidated Basis box checked. Question 3a should be No with question 3b left blank. PART III Statement of Program Service Accomplishments (Page 2) Line No. 1 Enter fraternity with a philanthropic mission for the organization s mission. 2 Check No. 3 Check No. 4 The expenses reported are obtained from Part IX, line 25, Column B. Because we do not report anything in Column B, there is nothing to report for expenses; however, if you do report anything in Column B or Column C, refer to the paragraph below. Only the three largest program services are measured by total expenses incurred need to be described. Example of program services include Shriners Hospitals for Children, monthly temple publication, dues, operating of a restaurant and/or lounge, patient transportation fund to name a few. Complete lines 4a, 4b and 4c for each of these program services. (See examples on page 49 of this section.) Line 4d, other program services, can be described on Schedule O. If anything is reported on Schedule O, check the box at the top of the page indicating such. The revenues reported are obtained from Part VIII, line 2, Column A, lines a through f. Note: Line 9c, Column C, is also included if income from gaming activities does not meet the IRS definition of bingo. PART IV Checklist of Required Schedules (Pages 3 & 4) This section must be read carefully and the questions answered as they pertain to your specific temple. Following are answers to the questions that may garner the same response from the majority of the temples. Question No. 1 Check No Updated JULY

8 Question No. 2 Check Yes if you are filing a Schedule B. If you are not filing a Schedule B, check No. 3 Check No. 4 Leave blank. 5 Check No. 6 Check No (Donor advised funds require that the donor maintain advisory privileges) 7 If you answered Yes to this question, complete Schedule D, Part II. 8 If you answered Yes to this question, complete Schedule D, Part III. 9 Check Yes if you maintain any escrow accounts and complete Schedule D, Part IV. 10 This question relates to the temple s without donor restrictions (quasi-endowment) and with donor restrictions (temporary and permanent endowment). Answer Yes to this question and complete Schedule D, Part V (see sample form on pages of this section). 11 a-f If you answered Yes to any of these questions, complete Schedule D, Parts VI, VII, VIII, IX or X, as applicable. 12 a-b If you answered Yes to these questions, complete Schedule D, Parts XI, XII, & XIII, as applicable Check No These questions all relate to fundraising. Please be sure to complete Schedule G if applicable (see sample form on pages of this section) Check No. 23 Complete as applicable. 24a Check No. 25 a-b Leave blank. Updated JULY

9 Question No If you answered Yes to any of these questions, complete Schedule L. Sample Form on pages 81 & 82 of this section If you answered Yes to either of these questions, complete Schedule M. Sample Form on pages 83 & 84 of this section. 31 If you answered Yes to this question, complete Schedule N, Part I. Sample Form on pages Should be No unless there was a merger or dissolution of the temple. If you answered Yes, complete Schedule N, Part II. Sample Form on pages Check No. 34 Check Yes and complete Schedule R (sample form on pages 73-77). 35 Check No. 36 Leave blank. 37 Check No. 38 Check Yes. All Form 990 filers are required to complete Schedule O. PART V Statements Regarding Other IRS Filings and Tax Compliance (Page 5) This section must be read carefully and the questions answered as they pertain to your specific temple. Following are answers to the questions that may garner the same response from the majority of the temples. Question No. 1-2 Complete as applicable. 3a 3b If reporting entities recorded unrelated business gross income (UBI) of $1,000 or more, check Yes ; otherwise check No. If unrelated business gross income of $1,000 or more is recorded, have you filed tax Form 990-T? A copy of tax Form 990-T is to be forwarded to Shriners International headquarters (See pages of this section for reporting unrelated business income.) 4-5 Complete as applicable. 6a Are your annual gross receipts greater than $100,000 and did you solicit any contributions or gifts that were not tax deductible (Fraternal fundraising)? Yes or No. Updated MAY

10 Question No. 6b 7a & 7b 7c 7h If Yes, did you comply with Shrine Fundraising Policies and Procedures and include an expressed Statement of Purpose and Disclosure Statement on all solicitation materials, tickets and documents indicating that payments are not deductible as charitable contributions? Did you comply with quid pro quo contributions disclosure rule? Check Yes. Complete as applicable (7g & 7h can be left blank if not applicable). 8-13c Not applicable to 501(c)(10) organizations. Leave blank. 14a Check No. PART VI Governance, Management, and Disclosure (Page 6) The Governance, Management, and Disclosure section must be read carefully and the questions answered as they pertain to your specific temple. Following are answers to some of the questions that may garner the same response from the majority of the temples. Check the box that indicates Schedule O was completed and contains a response to the questions in this section. Section A. Governing Body and Management Question No. 1-5 Complete as applicable. 6 Check Yes, as the organization has members. 7-9 Complete as applicable. Section B. Policies 10a & 10b 11a Check Yes. Check Yes only if a copy of the organization s final Form 990 (including required schedules), as ultimately filed with the IRS, was provided to each voting member of the governing body of the organization, whether in paper or electronic form, prior to its filing with the IRS. Also describe in Schedule O the process, if any, by which any of the organization s officers, directors, trustees, board committee members, or management reviewed the prepared Form 990, whether before or after it was filed with the IRS, including specifics regarding who conducted the review, when they conducted it, and the extent of any such review. If no review was or will be conducted, state no review was or will be conducted. Note: All temples must describe on Schedule O the process, if any, that they use to review the Form 990 (See sample process included on Schedule O, page 72, in this section). Updated MAY

11 Question No. 12a Our General Counsel has advised that a proper answer is Yes. Our conflict of interest policy is part of the Shrine Code of Ethics. Each Noble is admonished by our General Counsel to read, and comply with Section Shrine Code of Ethics of the bylaws of Shriners International. 12b Complete as applicable. 12c Check Yes and include the following statement on Schedule O: Compliance with our Code of Ethics is required of shrine temples under our Shriners International bylaws section Please note if your temple bylaws are different in this respect, your explanation will be different on Schedule O. 13 Check Yes. Per General Order No Check Yes. Per Temple Financial Manual Section 2, page b Complete as applicable. Section C. Disclosure 17 Complete as applicable. 18 Our 990 s are available for public inspection upon request. This should be a written request. 19 Include the following statement on Schedule O: We do not make our governing documents, conflict of interest policy, or financial statements available to the public. Our 990 s are available for public inspection upon written request. 20 Enter the name, address, and phone number of the person who possesses the books and records of the temple. PART XI Reconciliation of Net Assets (Page 12) Complete lines 1-4 as instructed. Record on lines 5-9 any changes to net assets or fund balances during the year. Amounts to report here include prior period adjustments and unrealized gains/losses. PART I Summary (Page 1) This section should be completed last as it requires recording information from other sections and schedules in the return. Line 1 should read Fraternity with a Philanthropic Mission. Be sure to answer all questions and enter the financial information in each column as requested. PART II Signature Block (Page 1) To make the return complete, the return must be signed by the Recorder. After the Temple with Combined Units 990 and 990-T s (if applicable) have been prepared, compliance with Internal Revenue Code section of the General Order No. 1 requires that a copy of each signed tax return Form 990 (including all applicable schedules), and tax Form 8868, Application for Extension of Time to File, (if applicable) be sent to the Executive Vice President, Shriners International at the same time the returns are filed with the Internal Revenue Service. Updated MAY

12 Instructions for Preparing Schedule B (Form 990) Schedule of Contributors The names and addresses of contributors are not open to public inspection. All other information, including the amount of contributions, the description of non-cash contributions, and any other information provided will be open to public inspection unless it clearly identifies the contributor. Based upon Shriners International tax reporting requirements, we recommend the following disclosures: Name of Organization shall be Shriners International, Shriners followed by its assigned employer identification number. Check Section 501 and enter 10 next to (c). General Rule: Check this box if the organization received $5,000 or more (in money, securities or property) in aggregate from any one contributor for either fraternal or charitable purposes. In determining the aggregate amount, separate and independent gifts of less than $1,000 may be disregarded. Complete parts I and II. For any non-cash contributions greater than $25,000, see Part IV, Questions 29 & 30. Special Rules: Check box #2 if the organization received $1,001 or more (in money, securities or property) in aggregate from any one contributor during the year for the temple s Shrine Hospital Patient Transportation Fund [Account 4300] and/or temple s annual charitable fundraising events [Accounts ]. To determine the more than $1,000 amount, total all of a contributor s gifts for the year (regardless of amount). Complete parts I, II, and III NOTE: Receipts from approved shrine charitable activity events generally are included as revenues for fundraising events that are reported on Form 990 under Part VIII on line 1c. There is one exception for Shrine Temples: Should your temple receive an individual s donation of more than $1,000 toward an annual charitable event, each donor s name and address shall be listed under Part III. Part I: Defines contributors as individuals, fiduciaries, partnerships, corporations, associations, trusts and exempt organizations including Shrine Clubs within your temple s jurisdiction. List name, address, zip code and the aggregate contributions to the temple from outsiders or Shrine Clubs in the amount of $5,000 or more [Account 4090], plus charitable gifts to the temple s Shrine Hospital Patient Transportation Fund and/or the annual charitable fundraising events in excess of $1,000 [Account 4300]. Part II: Represents non-cash contributions. Generally the temple does not receive gifts in kind that would be considered a donation; therefore, generally this part is not applicable. Part III: Since the temple is a 501 (c)(10) organization, the first line of disclosure at the top is the total gifts that were from contributors who gave $1,000 or less during the year for the temple s Shrine Hospital Patient Transportation Fund. For donations greater than $1,000 during the year to the temple s Shrine Hospital Patient Transportation Fund and/or the temple s annual charitable fundraising events, you must include each donor s number from Part I and: Disclose the purpose of gift as money for Shrine Hospital Patient Transportation Fund; Use of gift is pay for patient related travel expenses to Shriners Hospitals for Children; How gift is held is in a temporarily restricted cash account. Updated MAY

13 Instructions for Preparing Schedule D (Form 990) Supplemental Financial Statements Part I: Organizations Maintaining Donor Advised Funds is not applicable. (Donor advised funds do not include funds that make distributions to a single identified organization (SHC). In addition, donor advised funds require that the donor have advisory privileges regarding distribution and investments.) Part II: Conservation Easements is probably not applicable for the majority of temples. Part III: Organizations Maintaining Collections of Art, Historical Treasures, etc. is probably not applicable for the majority of temples. Part IV: Trust, Escrow and custodial Arrangements may not be applicable. (Escrow: Account over which you have signature authority and the funds are held for the benefit of another individual or organization. Example: tours and cruise deposits) Part V: Endowment Funds. Complete this section because you answered Yes to line 10, Part IV. Board designated or quasi-endowments (without donor restrictions) are funds functioning as an endowment that are established by the organization itself, either from donor or institutional funds, and that must retain the purpose and intent as specified by the donor or source of the original funds. Temporarily restricted endowments (with donor restrictions) are endowment funds that are maintained to provide a source of income of either a specified period of time or until a specific event occurs. Permanent endowments (with donor restrictions) are endowment funds that are maintained to provide a permanent source of income, with the stipulation that principal must be invested and kept intact in perpetuity, while only the income generated can be used by the organization. Line No. 1a Beginning balance for all restricted funds. (adjust the beginning balance to reflect any prior period adjustments) 1b Contributions (include all revenue other than investment income line 3 and investment earnings or losses line 7d) 1c Investment income and Investment earnings or losses 1d Grants and scholarships are not applicable. 1e Other expenditures (include all expenses other than administrative) 1f Administrative expenses 1g End of year balance 2a-2c Provide breakdown of estimated percentages by restricted fund 3a Should be No 3b Should be not applicable and left blank. 4 Describe use of funds in Part XIII (see examples on the next page). Part VI: Land, Buildings, and Equipment. Complete this table if you answered Yes to question 11a, Part IV. Utilize information reported on line 10a & b, Part X. Part VII: Investments-Other Securities. Complete this section if you answered Yes to question 11b, Part IV. Utilize information reported on line 12, Part X. (Ex: 100% ownership in Holding Co.) Part VIII: Investments-Program Related is not applicable. Updated JULY

14 Instructions for Preparing Schedule D (Form 990) Supplemental Financial Statements (continued) Part IX: Other Assets. Complete this section if you answered Yes to question 11d, Part IV. Utilize information reported on line 15, Part X. Part X: Other Liabilities. Complete this section if you answered Yes to question 11e, Part IV. Utilize information reported on line 25, Part X. Note: Your temple is required to provide the text of the footnote that reports your liability for uncertain tax positions under Interpretation 48 on Schedule D, under Part XIII, Supplemental Information. A standard footnote would be: Shriners International has obtained exemption from income taxes under Section 501(c)(10) of the Internal Revenue Code. This exemption includes all subordinate Shrine temples. However, certain other revenues such as advertising may be subject to taxation. Part XI: Reconciliation of Revenue per Audited Financial Statements. Complete this section if you answered Yes to question 12a, Part IV. Part XII: Reconciliation of Expenses per Audited Financial Statements. Complete this section if you answered Yes to question 12a, Part IV. Note: If your temple did not receive audited financial statements for the reporting year, you are not required to complete these sections. Part XI Combined units total revenues can be reported on line 4b (other) with an explanation provided in Part XIII. Part XII Combined units total expenses can be reported on line 4b (other) with an explanation provided on Part XIII. Part XIII: Record supplemental information as indicated in above sections. Here are sample comments for Part V, line 4, Use of endowment funds : Without Donor Restrictions: The Board designated or quasi-endowment is used at management s discretion to run the daily operations of the temple. With Donor Restrictions: The restricted endowment is utilized to provide free hospital transportation to and from Shriners Hospitals for Children for the patients and their families designated the Shrine Hospital Patient Transportation Fund. OR The restricted endowment is utilized for building improvements designated as the Building Fund. OR The endowment is utilized to pay dues for the benefit of life members. OR The endowment is utilized to provide survivor benefits designated the Life Membership Fund. OR The endowment is utilized to maintain a permanent source of income; as stipulated by the donor. OR There were no donor restricted endowment funds as of yearend. Updated JULY

15 Instructions for Preparing Schedule G (Form 990) Supplemental Information Regarding Fundraising or Gaming Activities Part I: Fundraising Activities. Complete this section if you answered Yes to question 17, Part IV and you reported more than $15,000 in professional fundraising expenses (i.e. typically telemarketing agreement for the Circus) on line 11e, Part IX. Line 1, check all boxes that apply. Line 2a, should be Yes, then complete the table as required. Line 3, list all applicable states. Line 2b, column iii, For this purpose, custody or control means possession of the funds or the authority to deposit, direct the use of, or use the funds. Describe the custody or control arrangement on Schedule O. All professional fundraising expenses should be reported by line item on Schedule O. In addition, describe on Schedule O how the agreement distinguishes payments for professional fundraising services from expense payments or reimbursements. Part II: Fundraising Events (fraternal). Complete this section if you answered Yes to question 18, Part IV and you reported more than $15,000 in aggregate revenue on lines 1c and 8a, Part VIII. Part III: Gaming. Complete this section if you answered Yes to question 19, Part IV and you reported more than $15,000 in revenue on line 9a, Part VIII. Complete the table for each type of gaming conducted. Please note that gross revenue should not be reduced by cash or non-cash prizes, cost of goods sold, compensation, fees, or other expenses. Answer questions 9-17 as applicable. Gaming income activities include: bingo, pull tabs, raffles, charitable gaming tickets, scratch-offs, pickle cards, etc. Direct gaming expenses include: cash and non-cash prizes, compensation to bingo callers and workers, rental of gaming equipment and cost of bingo supplies. Many games of chance are taxable. Income from Bingo games is not subject to tax on unrelated business income if the games meet the legal definition of bingo. For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. (Amount from column D, Part VIII) A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. For example, instant bingo, in which a player buys a pre packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. (Amount from column C, Part VIII) Updated OCT

16 Instructions for Preparing Schedule R (Form 990) Related Organizations and Unrelated Partnerships Part I: Not applicable; as this section pertains to disregarded entities. Part II: For the majority of the temples this will not be applicable; as we are not required to list subordinate organizations that are part of a group exemption. However, if you have a holding corporation, then you are required to disclose that information in Part II. Part III: Not applicable; as this section pertains to related organizations as partnerships. Part IV: For the majority of the temples this will not be applicable. However, if you have a taxable corporation filing a Form 1120, then you will need to complete this section. For example, Golf Course or Camp Ground. Part V: Must be completed whether you reported any related organizations in Parts II through IV. To complete Part V, check Yes in the appropriate box for Line 1 if the filing organization engaged in any of the transactions listed. For all Yes responses to questions b through s with aggregate transactions greater than $50,000, enter the detail on the lines provided in the table. Line 1l should be answered Yes as this relates to the $30 per capita tax, $2.50 initiation fee, circus inserts, and PR materials paid to Shriners International. Receipt of interest, annuities, royalties, or rent from a controlled entity must be reported regardless of the dollar amount. This includes transactions between Shriners International and the temple. Updated MAY