Part II - Balance Sheets
For column (b), show the book value at the end of the year. For column (c), show the fair market value at the end of the year. Attached schedules must show the end-of-year value for each asset listed in columns (b) and (c).
- Foundations whose books of account included total assets of $5,000 or more at any time during the year must complete all of columns (a), (b), and (c).
- Foundations with less than $5,000 of total assets per books at all times during the year must complete all of columns (a) and (b), and only line 16 of column (c).
Line 1 - Cash - Non-interest-bearing. Enter the amount of cash on deposit in checking accounts, deposits in transit, change funds, petty cash funds, or any other non-interest-bearing account. Do not include advances to employees or officers or refundable deposits paid to suppliers or others.
Line 2 - Savings and temporary cash investments. Enter the total of cash in savings or other interest-bearing accounts and temporary cash investments, such as money market funds, commercial paper, certificates of deposit, and U.S. Treasury bills or other governmental obligations that mature in less than 1 year.
Line 3 - Accounts receivable. On the dashed lines to the left of column (a), enter the year-end figures for total accounts receivable and allowance for doubtful accounts from the sale of goods and/or the performance of services. In columns (a), (b), and (c), enter net amounts (total accounts receivable reduced by the corresponding allowance for doubtful accounts). Claims against vendors or refundable deposits with suppliers or others may be reported here if not significant in amount. (Otherwise, report them on line 15, Other assets.) Any receivables due from officers, directors, trustees, foundation managers, or other disqualified persons must be reported on line 6. Report receivables (including loans and advances) due from other employees on line 15.
Line 4 - Pledges receivable. On the dashed lines to the left of column (a), enter the year-end figures for total pledges receivable and allowance for doubtful accounts (pledges estimated to be uncollectable). In columns (a), (b), and (c), enter net amounts (total pledges receivable reduced by the corresponding allowance for doubtful accounts).
Line 5 - Grants receivable. Enter the total grants receivable from governmental agencies, foundations, and other organizations as of the beginning and end of the year.
Line 6 - Receivables due from officers, directors, trustees, and other disqualified persons. Enter here (and on an attached schedule described below) all receivables due from officers, directors, trustees, foundation managers, and other disqualified persons and all secured and unsecured loans (including advances) to such persons. Disqualified person is defined in General Instruction C.
Attached schedules. (a) On the required schedule, report each loan separately, even if more than one loan was made to the same person, or the same terms apply to all loans made.
Salary advances and other advances for the personal use and benefit of the recipient and receivables subject to special terms or arising from transactions not functionally related to the foundation's charitable purposes must be reported as separate loans for each officer, director, etc.
(b) Receivables that are subject to the same terms and conditions (including credit limits and rate of interest) as receivables due from the general public from an activity functionally related to the foundation's charitable purposes may be reported as a single total for all the officers, directors, etc. Travel advances made for official business of the organization may also be reported as a single total.
For each outstanding loan or other receivable that must be reported separately, the attached schedule should show the following information (preferably in columnar form):
- Borrower's name and title.
- Original amount.
- Balance due.
- Date of note.
- Maturity date.
- Repayment terms.
- Interest rate.
- Security provided by the borrower.
- Purpose of the loan.
- Description and fair market value of the consideration furnished by the lender (e.g., cash - $1,000; or 100 shares of XYZ, Inc., common stock - $9,000).
The above detail is not required for receivables or travel advances that may be reported as a single total (see (b) above); however, report and identify those totals separately on the attachment.
Line 7 - Other notes and loans receivable. On the dashed lines to the left of column (a), enter the combined total year-end figures for notes receivable and loans receivable and the allowance for doubtful accounts.
Notes receivable. In columns (a), (b), and (c), enter the amount of all notes receivable not listed on line 6 and not acquired as investments. Attach a schedule similar to the one for line 6. The schedule should also identify the relationship of the borrower to any officer, director, trustee, foundation manager, or other disqualified person.
For a note receivable from any section 501(c)(3) organization, list only the name of the borrower and the balance due on the required schedule.
Loans receivable. In columns (a), (b), and (c), enter the gross amount of loans receivable, minus the allowance for doubtful accounts, from the normal activities of the filing organization (such as scholarship loans). An itemized list of these loans is not required but attach a schedule showing the total amount of each type of outstanding loan. Report loans to officers, directors, trustees, foundation managers, or other disqualified persons on line 6 and loans to other employees on line 15.
Line 8 - Inventories for sale or use. Enter the amount of materials, goods, and supplies purchased or manufactured by the organization and held for sale or use in some future period.
Line 9 - Prepaid expenses and deferred charges. Enter the amount of short-term and long-term prepayments of expenses attributable to one or more future accounting periods. Examples include prepayments of rent, insurance, and pension costs, and expenses incurred in connection with a solicitation campaign to be conducted in a future accounting period.
Lines 10a, b, and c - Investments - government obligations, corporate stocks and bonds. Enter the book value (which may be market value) of these investments.
Attach a schedule that lists each security held at the end of the year and shows whether the security is listed at cost (including the value recorded at the time of receipt in the case of donated securities) or end-of-year market value. Do not include amounts shown on line 2. Governmental obligations reported on line 10a are those that mature in 1 year or more. Debt securities of the U.S. Government may be reported as a single total rather than itemized. Obligations of state and municipal governments may also be reported as a lump-sum total. Do not combine U.S. Government obligations with state and municipal obligations on this schedule.
Line 11 - Investments - land, buildings, and equipment. On the dashed lines to the left of column (a), enter the year-end book value (cost or other basis) and accumulated depreciation of all land, buildings, and equipment held for investment purposes, such as rental properties. In columns (a) and (b), enter the book value of all land, buildings, and equipment held for investment less accumulated depreciation. In column (c), enter the fair market value of these assets. Attach a schedule listing these investment fixed assets held at the end of the year and showing, for each item or category listed, the cost or other basis, accumulated depreciation, and book value.
Line 12 - Investments - mortgage loans. Enter the amount of mortgage loans receivable held as investments but do not include program-related investments (see instructions for line 15).
Line 13 - Investments - other. Enter the amount of all other investment holdings not reported on lines 10 through 12. Attach a schedule listing and describing each of these investments held at the end of the year. Show the book value for each and indicate whether the investment is listed at cost or end-of-year market value. Do not include program-related investments (see instructions for line 15).
Line 14 - Land, buildings, and equipment. On the dashed lines to the left of column (a), enter the year-end book value (cost or other basis) and accumulated depreciation of all land, buildings, and equipment owned by the organization and not held for investment. In columns (a) and (b), enter the book value of all land, buildings, and equipment not held for investment less accumulated depreciation. In column (c), enter the fair market value of these assets. Include any property, plant, and equipment owned and used by the organization to conduct its charitable activities. Attach a schedule listing these fixed assets held at the end of the year and showing the cost or other basis, accumulated depreciation, and book value of each item or category listed.
Line 15 - Other assets. List and show the book value of each category of assets not reportable on lines 1 through 14. Attach a separate schedule if more space is needed.
One type of asset reportable on line 15 is program-related investments. These are investments made primarily to accomplish a charitable purpose of the filing organization rather than to produce income.
Line 16 - Total assets. All filers must complete line 16 of columns (a), (b), and (c). These entries represent the totals of lines 1 through 15 of each column. However, organizations that have assets of less than $5,000 per books at all times during the year need not complete lines 1 through 15 of column (c).
The column (c) amount is also entered on the entry space for I on page 1.
Line 17 - Accounts payable and accrued expenses. Enter the total of accounts payable to suppliers and others and accrued expenses, such as salaries payable, accrued payroll taxes, and interest payable.
Line 18 - Grants payable. Enter the unpaid portion of grants and awards that the organization has made a commitment to pay other organizations or individuals, whether or not the commitments have been communicated to the grantees.
Line 19 - Deferred revenue. Include revenue that the organization has received but not yet earned as of the balance sheet date under its method of accounting.
Line 20 - Loans from officers, directors, trustees, and other disqualified persons. Enter the unpaid balance of loans received from officers, directors, trustees, and other disqualified persons. For loans outstanding at the end of the year, attach a schedule that shows (for each loan) the name and title of the lender and the information listed in items 2 through 10 of the instructions for line 6 on page 15.
Line 21 - Mortgages and other notes payable. Enter the amount of mortgages and other notes payable at the beginning and end of the year. Attach a schedule showing, as of the end of the year, the total amount of all mortgages payable and, for each nonmortgage note payable, the name of the lender and the other information specified in items 2 through 10 of the instructions for line 6. The schedule should also identify the relationship of the lender to any officer, director, trustee, foundation manager, or other disqualified person.
Line 22 - Other liabilities. List and show the amount of each liability not reportable on lines 17 through 21. Attach a separate schedule if more space is needed.
Lines 24 Through 30 - Net Assets or Fund Balances
Organizations that follow SFAS 117. If the organization follows SFAS 117, check the box above line 24. Classify and report net assets in three groups - unrestricted, temporarily restricted, and permanently restricted - based on the existence or absence of donor-imposed restrictions and the nature of those restrictions. Show the sum of the three classes of net assets on line 30. On line 31, add the amounts on lines 23 and 30 to show total liabilities and net assets. This figure should be the same as the figure for Total assets on line 16.
Line 24 - Unrestricted. Enter the balances per books of the unrestricted class of net assets. Unrestricted net assets are neither permanently restricted nor temporarily restricted by donor-imposed stipulations. All funds without donor-imposed restrictions must be classified as unrestricted, regardless of the existence of any board designations or appropriations.
Line 25 - Temporarily restricted. Enter the balances per books of the temporarily restricted class of net assets. Donors' temporary restrictions may require that resources be used in a later period or after a specified date (time restrictions), or that resources be used for a specified purpose (purpose restrictions), or both.
Line 26 - Permanently restricted. Enter the total of the balances for the permanently restricted class of net assets. Permanently restricted net assets are (a) assets, such as land or works of art, donated with stipulations that they be used for a specified purpose, be preserved, and not be sold or (b) assets donated with stipulations that they be invested to provide a permanent source of income. The latter result from gifts and bequests that create permanent endowment funds.
Organizations that do not follow SFAS 117. If the organization does not follow SFAS 117, check the box above line 27 and report account balances on lines 27 through 29. Report net assets or fund balances on line 30. Also complete line 31 to report the sum of the total liabilities and net assets/fund balances.
Line 27 - Capital stock, trust principal, or current funds. For corporations, enter the balance per books for capital stock accounts. Show par or stated value (or for stock with no par or stated value, total amount received upon issuance) of all classes of stock issued and, as yet, uncancelled. For trusts, enter the amount in the trust principal or corpus account. For organizations continuing to use the fund method of accounting, enter the fund balances for the organization's current restricted and unrestricted funds.
Line 28 - Paid-in or capital surplus, or land, bldg., and equipment fund. Enter the balance per books for all paid-in capital in excess of par or stated value for all stock issued and uncancelled. If stockholders or others gave donations that the organization records as paid-in capital, include them here. Report any current-year donations you included on line 28 in Part I, line 1. The fund balance for the land, building, and equipment fund would be entered here.
Line 29 - Retained earnings, accumulated income, endowment, or other funds. For corporations, enter the balance in the retained earnings, or similar account, minus the cost of any corporate treasury stock. For trusts, enter the balance per books in the accumulated income or similar account. For organizations using fund accounting, enter the total of the fund balances for the permanent and term endowment funds as well as balances of any other funds not reported on lines 27 and 28.
Line 30 - Total net assets or fund balances. For organizations that follow SFAS 117, enter the total of lines 24 through 26. For all other organizations, enter the total of lines 27 through 29. Enter the beginning-of-year figure in column (a) on line 1, Part III. The end-of-year figure in column (b) must agree with the figure in Part III, line 6.
Line 31 - Total liabilities and net assets/fund balances. Enter the total of lines 23 and 30. This amount must equal the amount for total assets reported on line 16 for both the beginning and end of the year.
Part III - Analysis of Changes in Net Assets or Fund Balances
Generally, the excess of revenue over expenses accounts for the difference between the net assets at the beginning and end of the year.
On line 2, Part III, re-enter the figure from Part I, line 27(a), column (a).
On lines 3 and 5, list any changes in net assets that were not caused by the receipts or expenses shown in Part I, column (a). For example, if a foundation follows FASB Statement No. 12 and shows an asset in the ending balance sheet at a higher value than in the beginning balance sheet because of an increased market value (after a larger decrease in a prior year), include the increase in Part III, line 3.
If the organization uses a stepped-up basis to determine gains on sales of assets included in Part I, column (a), then include the amount of step-up in basis in Part III. If you entered a contribution, gift, or grant of property valued at fair market value on line 25 of Part I, column (a), the difference between fair market value and book value should be shown in the books of account and as a net asset adjustment in Part III.
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