Form 990-PF Filing Checklist for Tax Year 2013
Overview and Applicability
Form 990-PF is the annual information return for private foundations for the tax year 2013. This filing year contains no stimulus payment reconciliation, Affordable Care Act shared responsibility provisions, Tax Cuts and Jobs Act rules, or notable unemployment exclusions. No significant line redesigns occurred for 2013 relative to immediately prior versions.
The form reflects the standard excise tax calculation for private foundations under Sections 4940 through 4945, as well as the distributable amount calculation rules consistent with pre-2017 law. Foundations remain subject to the permanent two percent excise tax on net investment income, or one percent if Section 4940(e) requirements are met, along with Section 4942 mandatory distribution rules in effect since 1969.
Foundation Status and Documentation
Confirm the filer is a domestic private foundation under Section 501(c)(3), a Section 4947(a)(1) nonexempt charitable trust, or other eligible private foundation entity. Obtain the employer identification number and verify it has not been revoked or transferred.
Part VII-A, question 1a, asks whether the foundation engaged in any activity it previously reported to the IRS on Form 5768 or 4720. Questions 1b and 1c address lobbying expenditures and political expenditures, respectively. If the foundation made political expenditures, Section 4955 may require them to file Form 4720. Answer all Part VII-A questions accurately and attach the required statements for affirmative responses.
Revenue and Asset Documentation
Gather all statements documenting contributions, gifts, grants, dividends, interest, rents, capital gains, and other income received during calendar year 2013. Collect year-end bank and investment statements showing fair market values of all assets as of December 31, 2013.
Section 508(e) compliance must be verified through Part VII-A, question 6. Attach evidence that the foundation’s governing instrument or applicable state law prohibits acts described in Sections 4941 through 4945. This documentation demonstrates the foundation’s commitment to avoiding prohibited transactions with disqualified persons, excess business holdings, jeopardy investments, and taxable expenditures.
Net Investment Income Calculation
Complete Part I to calculate net investment income. Column (a) reports revenue and expenses per book using the foundation’s elected accounting method. Column (b) shows net investment income, which includes investment-related revenue reduced by expenses allocable to producing that income. Column © reports adjusted net income. Column (d) displays disbursements for charitable purposes, following the same accounting method specified in the header.
The foundation applies one consistent accounting method throughout Part I unless specific lines have different instructions. From Part I, column (b), compute net investment income as the sum of interest, dividends, and rents minus operating expenses directly connected to producing investment income. Ensure Part I, line 27b (net investment income), carries forward to Part VI for excise tax calculation.
Capital Gains and Losses
Complete Part IV for each asset sale during 2013. List the acquisition method (purchase or donation), acquisition date, sale date, gross sales price, basis, and resulting gain or loss. If the asset was held on December 31, 1969, complete columns (i) through (l) to separate pre-1970 appreciation from post-1969 appreciation.
Enter net capital gain on line 2 or enter zero if net loss. If a loss, do not carry it forward to Part I, line 7. Capital gain, net income, or net short-term capital gain flows to Part I, lines 7 and 8, respectively. These amounts combine with other investment income to determine net investment income on Part I, line 27b.
Section 4940(e) Reduced Tax Election
Complete Part V only if the foundation qualifies for the reduced one percent excise tax rate under Section 4940(e). To qualify, the foundation must not have been liable for Section 4942 tax on distributable amounts in any base period year covering 2008 through 2012.
Calculate the distribution ratio for each year by dividing qualifying distributions by the net value of noncharitable-use assets. The average distribution ratio shown on line 6 must equal or exceed the distribution ratio shown on line 7. If qualified and no Section 4942 tax was owed in the base period, check Part VI, line 1b, and use the one percent rate.
Excise Tax Computation
Enter Part I, line 27b (net investment income), into Part VI for excise tax calculation. If the foundation qualifies under Section 4940(e), enter one percent on line 1b. Otherwise, enter two percent on line 1c for domestic foundations or four percent on line 1c for exempt foreign organizations, entering Part I, line 12, column (b) instead of net investment income.
Add any tax under Section 511 on line 2 for unrelated business income. Subtract any income tax liability on line 4 from the sum of lines 1 through 3 to derive tax based on investment income on line 5.
Report payments and credits in the Tax Computation section below Part VI. This includes 2013 estimated tax payments, an overpayment from 2012 credited to 2013, tax paid with a Form 8868 extension, and backup withholding. Calculate the tax due or overpayment for the current year using these payments and credits.
Minimum Investment Return
All domestic private foundations must compute the minimum investment return in Part X. Enter the average fair market value of securities on line 1a, average monthly cash balances on line 1b, and fair market values of other noncharitable-use assets on line 1c.
Subtract acquisition indebtedness on line 2, then subtract deemed charitable cash calculated as 1.5 percent of line 3 on line 4 to derive the net value of noncharitable-use assets on line 5. The minimum investment return on line 6 is five percent of the amount on line 5. Part X, line 5, is carried over to Part V, line 4, for the calculation of the reduced-rate election.
Distributable Amount and Qualifying Distributions
From Part XI, subtract taxes on lines 2a and 2b from the minimum investment return on line 1 to derive the distributable amount before adjustments on line 3. Add recoveries of prior qualifying distributions on line 4, subtract any permitted deduction on line 6, and enter the adjusted distributable amount on line 7. This amount carries to Part XIII, line 1.
Report qualifying distributions in Part XII, including amounts paid to accomplish exempt purposes, program-related investments, and amounts set aside for specific charitable projects. Calculate total qualifying distributions on line 4. This revenue represents the foundation’s charitable activity for the year and must meet or exceed the distributable amount to avoid penalty taxes.
Undistributed Income Tracking
In Part XIII, track undistributed income by year and excess distribution carryovers from 2008 through 2012 on lines 3a through 3e. Apply qualifying distributions from Part XII, line 4, in the order specified by the instructions: first to 2012 undistributed income, then to prior years’ undistributed income, then to corpus, and finally to the 2013 distributable amount.
Calculate any undistributed income for 2013 that must be distributed in the following year—failure to distribute required amounts subjects the foundation to excise taxes under Section 4942(a). Proper tracking ensures compliance with mandatory distribution requirements and allows the foundation to utilize excess distribution carryovers effectively.
Activity and Compliance Statements
Respond to all questions in Part VII-A regarding foundation activities. Part VII-A, line 7, asks if the foundation had at least $5,000 in assets at any time during the year. If yes, complete Part II, column (c), showing fair market values for all assets at year-end.
Answer all questions in Part VII-B regarding disqualified persons, jeopardy investments, lobbying, grants to individuals, and personal benefit contracts. If any item in Part VII-B is checked yes and no exception applies, file Form 4720 (Excise Tax Return) with the 990-PF or separately by the return due date. Attach detailed statements explaining any affirmative answers.
Compensation and Activities Reporting
Complete Part VIII with information on officers, directors, trustees, and foundation managers. List name, address, title, average hours per week, compensation (including deferred compensation), contributions to employee benefit plans, and expense account allowances.
Report the five highest-compensated employees apart from those listed as officers who received compensation of $50,000 or more. List the five highest-compensated independent contractors for professional services who received compensation of $50,000 or more. Provide complete details for all compensation arrangements.
Supplementary Information Requirements
Part XV (Supplementary Information) has specific requirements, including information on substantial contributors and managers on line 2, grants and contributions paid on line 3, and other required disclosures. The Part XV requirements are triggered by the specific activities and relationships described in the Part XV instructions, not solely by the $5,000 asset threshold.
Complete Part IX-A to summarize the foundation’s largest direct charitable activities. Report program-related investments on Part IX-B. These sections demonstrate how the foundation accomplishes its exempt purposes and distinguish between direct charitable activities and investment activities.
Special Entity Rules
Nonexempt Charitable Trusts
Nonexempt charitable trusts treated as private foundations under Section 4947(a)(1) must complete all parts of Form 990-PF. These entities are subject to the same excise taxes, distributable amount rules, and prohibitions on disqualified persons as Section 501(c)(3) private foundations. However, they may exclude from the excise tax calculation the portion of net investment income attributable to amounts payable to non-charitable beneficiaries, as per Part VI instructions.
Foreign Exempt Organizations
Foreign organizations meeting the 85 percent test under Section 4948 may file Form 990-PF instead of Form 1040-NR. Such organizations are subject to a four percent excise tax on Part I, line 12, column (b) (total revenue), not on net investment income. Foreign organizations must clarify their basis for exemption and provide a ruling letter from their home country or an IRS determination if available. The 2013 instructions state that foreign organizations are exempt from completing Part X (minimum investment return).
Private Operating Foundation Status
Part VII-A, question 9, asks if the foundation claims private operating foundation status. If yes, complete Part XIV showing data for tax year 2013 and the three prior tax years (2010 through 2012). Part XIV requires tabulation showing the minimum investment return or adjusted net income, the calculation of the 85 percent or five percent threshold, and supporting tests.
The 2013 instructions clarified that only foundations meeting one of three specific numerical tests (assets test, endowment test, or support test) and having prior IRS rulings qualify for the distributable amount exception under Section 4942. The 2013 form made Part XIV a mandatory parallel calculation for any foundation claiming this status, tightening the presentation of private operating foundation requirements.
Signature and Assembly
The officer or trustee must sign and date the return under penalties of perjury in the signature line at the bottom of the form. Include the title of the signatory. If a paid preparer completed the form, the preparer must sign, enter the date, PTIN, and firm information.
Attach all required schedules in the order specified by the instructions. Include Schedule B for contributors if applicable, capital gains schedules, depreciation schedules, legal and accounting fee schedules, compensation schedules, and any statements required by Parts VII, VIII, IX, XV, XVI, and XVII.
Filing Deadline and Extensions
Form 990-PF for tax year 2013 is due by the 15th day of the 5th month following the end of the tax year. For calendar year 2013, the return is due by May 15, 2014. An automatic six-month extension can be obtained by filing Form 8868 before the original due date.
Consult the IRS Where to File page for Form 990-PF (2013) to determine the correct mailing address based on the foundation’s state and whether an extension is requested. Private delivery services designated by the IRS also meet the timely filing requirements when used in accordance with IRS guidelines.
Ten-Step Filing Process
Step 1.
Verify the foundation's status and gather the EIN documentation. Confirm the entity qualifies as a domestic private foundation, a Section 4947(a)(1) nonexempt charitable trust, or another eligible entity. Answer Part VII-A questions, including those regarding political and lobbying activities.
Step 2.
Compile revenue and asset documentation for calendar year 2013. Gather statements for contributions, investment income, rents, capital gains, and other income. Collect year-end statements showing fair market values. Verify Section 508(e) compliance.
Step 3.
Calculate net investment income and reconcile to Part I. Complete all columns using the foundation’s elected accounting method consistently. Compute net investment income on Part I, line 27b for excise tax calculation.
Step 4.
Complete Part IV for all capital gains and losses during 2013. List acquisition details, sale information, and the basis for each transaction. For assets held as of December 31, 1969, separate pre-1970 and post-1969 appreciation is recognized. Enter net capital gain or zero if net loss on line 2.
Step 5.
Determine Section 4940(e) reduced tax election eligibility. Complete Part V using the base period 2008 through 2012. Calculate distribution ratios for each year. Compare the average distribution ratio on line 6 to the ratio on line 7. If qualified with no Section 4942 tax liability in the base period, use the one percent rate.
Step 6.
Compute excise tax in Part VI. Enter net investment income from Part I, line 27b. Apply a one percent rate if Section 4940(e) qualified or a two percent rate if not qualified. Add Section 511 tax if applicable. Subtract income tax to derive tax based on investment income on line 5. Report payments and credits in the Tax Computation section below Part VI.
Step 7.
Complete Part X to calculate the minimum investment return for domestic foundations. Enter average monthly fair market values of securities, cash, and other noncharitable-use assets. Subtract acquisition indebtedness and deemed charitable cash (1.5 percent calculation). Calculate five percent of the net value for the minimum investment return on Line 6.
Step 8.
Calculate the distributable amount and undistributed income in Parts XI and XIII. Subtract taxes from the minimum investment return to derive the distributable amount. Report qualifying distributions in Part XII. Track undistributed income by year and excess distribution carryovers from 2008 through 2012. Apply qualifying distributions in proper order and calculate any undistributed income requiring future distribution.
Step 9.
Complete Parts VII-A and VII-B with all activity and compliance statements. Answer the asset threshold question on Part VII-A, line 7, and complete Part II, column (c), if the $5,000 threshold is met. Identify disqualified person transactions and other potential excise tax events in Part VII-B. Attach Form 4720 if required. Complete Part VIII compensation reporting, Part IX charitable activities, Part XV supplementary information with its specific requirements, and Parts XVI-XVII, if applicable.
Step 10.
Sign, date, and assemble for filing. Under penalty of perjury, have an officer or trustee sign the document. Include preparer information if applicable. Attach all required schedules for contributors, capital gains, depreciation, compensation, and statements for Parts VII through XVII. Verify fair market value consistency. File by the 15th day of the 5th month after year-end or request an automatic extension on Form 8868. For the correct mailing address, please consult the IRS "Where to File" page.
This checklist provides comprehensive guidance for accurately completing Form 990-PF for tax year 2013, ensuring compliance with all filing requirements and correctly calculating excise taxes, minimum distribution obligations, and undistributed income carryovers under applicable tax laws.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
