Schedule F (Form 990) Instructions: A Comprehensive Plan
Schedule F, attached to Form 990, details transactions with organizations and entities outside the U.S. These instructions, updated August 21, 2024, ensure IRS compliance.
Nonprofits filing Form 990 may need Schedule F, reporting activities and adhering to IRS requirements. Refer to IRS.gov/Form990 for the latest updates and legislation.
Schedule F (Form 990) serves as a crucial reporting mechanism for tax-exempt organizations engaged in specific types of transactions. It’s designed to provide the Internal Revenue Service (IRS) with detailed information regarding activities that extend beyond the standard reporting requirements of Form 990 itself. Specifically, Schedule F focuses on two primary areas: other transactions with organizations and unrelated entities, and grants or other assistance provided to organizations or entities located outside of the United States.
Understanding the purpose and requirements of Schedule F is paramount for organizations aiming to maintain compliance with federal tax regulations. The instructions, most recently updated in December 2024 (Cat. No. 50082W), offer a comprehensive guide to navigating the form’s complexities. These instructions clarify which organizations are required to file, detailing the specific thresholds and conditions that trigger the filing obligation.

Furthermore, the instructions outline the necessary documentation and reporting procedures, ensuring transparency and accountability in the organization’s financial dealings. Staying current with the latest developments, available at IRS.gov/Form990, is essential, as tax laws and regulations are subject to change. Proper completion of Schedule F demonstrates a commitment to good governance and responsible financial management.
II. Who Must File Schedule F?
Generally, organizations filing Form 990 are required to submit Schedule F if they’ve engaged in certain transactions. Specifically, if an organization answered “Yes” on Form 990, Part IV, line 15, regarding any recipient receiving over $5,000 in grants or assistance outside the United States, Schedule F is mandatory. This threshold is a key determinant for filing requirements.
Beyond grants, organizations involved in other transactions with organizations or unrelated entities may also need to file. The instructions don’t provide a universal dollar threshold for these transactions, instead focusing on the nature and scope of the activity. It’s crucial to review the specific reporting requirements outlined in the Schedule F instructions to determine applicability.
Certain types of organizations, like those with significant international operations or complex financial arrangements, are more likely to encounter situations requiring Schedule F. Consulting the latest IRS guidance (available at IRS.gov/Form990) and seeking professional advice can help ensure accurate determination of filing obligations. Failure to file when required can result in penalties.
III. General Instructions for Schedule F
Schedule F (Form 990) requires meticulous completion, adhering to the latest revision – December 2024. Organizations must use black ink or type when completing the form. Ensure all entries are clear and legible to avoid processing delays. The instructions emphasize accuracy and completeness in reporting all required information.
When completing Schedule F, refer frequently to the Form 990 instructions for cross-references and clarifications. The two forms are interconnected, and understanding their relationship is vital. Pay close attention to definitions of key terms, as precise interpretation is crucial for correct reporting.
The IRS provides comprehensive guidance on its website (IRS.gov/Form990), including frequently asked questions and updated information regarding legislative changes. Organizations should regularly check for updates to ensure compliance with the most current regulations. Retain copies of Schedule F and supporting documentation for at least three years from the date of filing.
IV. Purpose of Schedule F
Schedule F (Form 990) serves a critical role in ensuring transparency and accountability within the nonprofit sector. Its primary purpose is to disclose details of transactions with organizations and entities located outside of the United States. This reporting requirement allows the IRS to monitor international activities and assess potential risks related to tax compliance and regulatory oversight.
Specifically, Schedule F focuses on grants and other assistance provided to foreign organizations. It requires detailed information about the recipients, the amounts granted, and the purpose of the funding. This data helps the IRS identify potential instances of improper funds transfer or activities that may not align with the organization’s exempt purpose.
By requiring this detailed reporting, the IRS aims to prevent the misuse of charitable assets and ensure that nonprofit organizations operate in accordance with applicable laws and regulations. Accurate completion of Schedule F is therefore essential for maintaining public trust and upholding the integrity of the nonprofit sector.

V. Relationship to Form 990
Schedule F (Form 990) is not a standalone document; it’s an integral part of the annual information return filed by tax-exempt organizations. It’s directly linked to Form 990, Part IV, line 15, which asks if the organization answered “Yes” to having recipients receiving over $5,000 in assistance outside the United States.
If an organization answers affirmatively to this question on Form 990, completing Schedule F becomes mandatory. The schedule provides the detailed information required to elaborate on those international transactions. Essentially, Schedule F expands upon the summary information provided in Form 990.
The data reported on Schedule F doesn’t duplicate information elsewhere on Form 990, but rather supplements it. It ensures a comprehensive overview of the organization’s financial activities, including those extending beyond national borders. Proper completion of both forms is crucial for full compliance with IRS regulations and maintaining tax-exempt status.

VI. Part I: Other Transactions with Organizations and Unrelated Entities
Part I of Schedule F (Form 990) focuses on detailing other transactions the organization may have engaged in with organizations and unrelated entities. This section requires a comprehensive listing of these interactions, going beyond simple grants or assistance.
Organizations must report transactions such as contracts, consulting agreements, or shared resource arrangements with other entities. This includes both domestic and international organizations, but excludes those already reported in Part II, which specifically addresses grants to foreign entities.
The reporting in Part I necessitates providing specific details about each transaction, including the name and address of the other party, the nature of the transaction, and the amount involved. Accurate and complete reporting in this section is vital for transparency and ensuring compliance with IRS scrutiny regarding potential conflicts of interest or improper financial dealings.
Organizations should carefully review all transactions to determine if they fall under the scope of reporting requirements in Part I.
VII. Reporting Requirements in Part I
Part I of Schedule F (Form 990) demands meticulous reporting of transactions with organizations and unrelated entities. Organizations must disclose the name and address of each involved party, ensuring clarity and traceability.
A detailed description of the transaction’s nature is crucial – specifying whether it’s a contract, consulting agreement, or resource sharing arrangement. The amount involved in each transaction must be accurately stated, providing a clear financial picture.
Reporting isn’t limited to financial amounts; organizations should also indicate the purpose of each transaction and its relevance to their exempt purpose. This contextual information aids the IRS in assessing the legitimacy and appropriateness of the dealings.
Remember, Part I excludes transactions already reported in Part II (grants to foreign entities). Thorough documentation supporting each reported transaction is essential for audit purposes and demonstrating compliance with IRS regulations.
Accuracy and completeness are paramount when fulfilling these reporting requirements.
VIII. Part II: Grants and Other Assistance to Organizations or Entities Outside the United States
Part II of Schedule F (Form 990) focuses specifically on grants and other assistance provided to organizations or entities located outside of the United States. Completion is required if Form 990, Part IV, line 15, indicates any recipient received over $5,000 in assistance.
This section demands detailed information about each foreign recipient, including their name, address, and country. Crucially, organizations must specify the nature of the assistance – whether it’s a grant, loan, or other form of support.
The amount of assistance provided to each recipient must be accurately reported. Additionally, a clear description of the grant’s purpose and its connection to the organization’s exempt activities is essential for IRS review.
Organizations should also indicate if the recipient is a publicly supported organization or a private foundation, impacting reporting nuances. Maintaining comprehensive records supporting these disclosures is vital for potential audits and demonstrating adherence to IRS guidelines.
Careful attention to detail is key when completing Part II.
IX. Completing Part II: Recipient Information
When completing Part II of Schedule F (Form 990), accurate recipient information is paramount. Begin by clearly stating the recipient organization’s full legal name and mailing address, ensuring consistency with official documentation.
The recipient’s country is a critical field; select the correct country from the provided options. Next, indicate whether the recipient is a U.S. organization, a foreign organization, or another entity type. This classification impacts subsequent reporting requirements.
Specify if the recipient is a publicly supported organization, a private foundation, or another type of entity. This distinction is crucial for determining the appropriate level of scrutiny during IRS review.
Provide the recipient’s tax identification number (TIN) if available. If a TIN isn’t available, explain the reason. Thoroughly documenting all recipient details ensures compliance and facilitates a smooth review process. Accuracy and completeness are essential for avoiding potential penalties.
Double-check all entries before submission.
X. Reporting Threshold for Part II
Part II of Schedule F (Form 990) requires reporting grants and assistance to organizations or entities outside the United States, but not all transactions necessitate inclusion. A key threshold dictates reporting obligations.
Specifically, you must complete Part II if your organization provided more than $5,000 to any single recipient outside the U.S. This $5,000 threshold applies to the total amount of grants and other assistance provided to that recipient during the tax year.
If the total assistance to a recipient is $5,000 or less, it generally doesn’t need to be reported in Part II. However, maintaining accurate records of all international grants, even those below the threshold, is advisable for audit purposes.

Remember, this threshold is per recipient. Multiple grants to the same recipient, cumulatively exceeding $5,000, trigger the reporting requirement. Careful tracking of these amounts is essential for accurate Schedule F completion and IRS compliance.
Consult the official Form 990 instructions for clarification.
XI. Specific Grant Reporting Details
When reporting grants in Schedule F (Form 990), Part II demands specific details beyond simply the recipient’s name and amount received. Accurate and complete information is crucial for IRS scrutiny.
You must report the recipient’s country, the nature of the grant (e.g., program support, operating grant), and the purpose for which the funds were provided. A clear description of the grant’s activities is essential.
Furthermore, indicate whether the recipient is an organization or an individual. If it’s an organization, specify its type (e.g;, charitable, educational). For individual recipients, provide their occupation or title.
The reporting also requires details about any control exerted over the grant. Indicate if the organization has significant influence over how the recipient uses the funds. Proper documentation supporting these details is vital during an audit.
Ensure consistency between the reported amounts and your organization’s internal records. Thoroughness and accuracy are paramount when completing Part II of Schedule F.
XII. Line-by-Line Instructions for Schedule F
Schedule F (Form 990) requires meticulous completion, line by line. Part I, concerning other transactions, demands detailed descriptions for each entry. Ensure each transaction is clearly identified and its relationship to the organization is explained.
Part II, focusing on grants to foreign entities exceeding $5,000, necessitates the recipient’s name, country, and grant purpose. Line-by-line, report the amount granted and the nature of the assistance provided.
Pay close attention to the instructions for each column. The “Control” column requires careful consideration – indicate if your organization exercises significant control over the grant’s use.

Review the instructions for specific lines regarding reporting requirements for different types of transactions. The 2024 instructions clarify reporting for accreditation/licensing activities, if linked to community health needs.

Refer to the official IRS instructions (Cat. No. 50082W, Rev. 12-2024) for comprehensive guidance. Accuracy and adherence to these line-by-line instructions are crucial for compliance.
XIII. Understanding the Terminology
Schedule F (Form 990) utilizes specific terminology requiring clear understanding. “Organizations and unrelated entities” encompasses a broad range of recipients, demanding careful categorization. “Grants and other assistance” includes financial support, property transfers, and in-kind contributions.
“Outside the United States” refers to any entity not organized under U.S. law and not physically located within the U.S. Determining “control” is critical; it signifies the ability to direct the recipient’s activities significantly.
The term “transaction” broadly covers any interaction involving the exchange of value. Understanding the nuances of “related organizations” versus “unrelated entities” is vital for accurate reporting.
The IRS instructions define these terms precisely. Pay attention to distinctions between direct and indirect grants. Familiarize yourself with the definition of “community health need” when reporting accreditation-related activities.
Accurate interpretation of these terms ensures compliance with IRS regulations. Consulting the official Form 990 instructions and relevant IRS publications is highly recommended for clarification.
XIV. Paperwork Reduction Act Notice
The Internal Revenue Service (IRS) diligently strives to minimize the burden of tax compliance. This notice, required by the Paperwork Reduction Act of 1995, provides essential information regarding the estimated time required to complete Schedule F (Form 990).
The IRS estimates that the average time for organizations to complete Schedule F is approximately 18 hours per response; This estimate encompasses the time spent gathering necessary information, preparing the schedule, and reviewing its accuracy.
However, the actual time may vary significantly based on the organization’s size, complexity of transactions, and record-keeping practices. Organizations are encouraged to provide feedback to the IRS regarding this estimate.
Comments and suggestions for reducing the burden should be directed to the IRS, Taxpayer Information Liaison Department, and include the Schedule F’s reference number. The current catalog number is 50082W.
This information is crucial for the IRS to continually assess and improve the efficiency of its forms and instructions, ultimately benefiting all taxpayers and nonprofit organizations.
XV. Future Developments & IRS Resources
The tax landscape is constantly evolving, and Schedule F (Form 990) is subject to updates reflecting changes in legislation and IRS guidance. Staying informed about these developments is crucial for accurate filing and compliance.
For the most current information regarding Schedule F and its instructions, organizations should regularly visit the official IRS website at IRS.gov/Form990. This resource provides access to the latest forms, instructions, and related announcements.
The IRS frequently publishes updates addressing clarifications, new rulings, and modifications to existing regulations. These updates are often announced through news releases, notices, and other official communications.
Organizations can also subscribe to IRS email updates to receive timely notifications about changes affecting Form 990 and its schedules. Additionally, the IRS offers various online resources, including FAQs and webinars, to assist with understanding and completing the form.

Proactive monitoring of IRS resources ensures organizations remain compliant with the ever-changing tax regulations and avoid potential penalties.

XVI. Schedule F and Accreditation/Licensing Activities
Determining whether to report activities required for accreditation or licensing on Schedule F (Form 990) can be complex. The 2023 Form 990 instructions provide clarification on this matter, offering guidance to nonprofits navigating these requirements.
Generally, activities solely undertaken to meet accreditation or licensing standards don’t require reporting on Schedule F. However, an exception exists if these activities simultaneously address a demonstrated community health need, enhance public health, or alleviate a burden on the community.
In such cases, even if driven by accreditation, the activity’s broader public benefit necessitates reporting on Schedule F, particularly regarding transactions with related organizations or entities outside the United States.

Nonprofits should carefully assess the primary purpose of these activities. If the accreditation/licensing aspect is dominant, reporting may not be necessary. Conversely, if a significant public benefit is realized alongside compliance, reporting is likely required.
Consulting the latest Form 990 instructions and seeking professional tax advice can help ensure accurate and compliant reporting of accreditation/licensing-related activities.
XVII. Relevant Forms and Schedules (Schedule B, Schedule C, Schedule J)
Schedule F (Form 990) doesn’t exist in isolation; it interacts with other key IRS forms and schedules. Understanding these connections is crucial for comprehensive and accurate reporting by nonprofit organizations.
Schedule B (Form 990), concerning contributors, may be relevant if grants reported on Schedule F involve contributions from individuals or entities requiring disclosure. The 2021 version of Schedule B is often referenced.
Schedule C (Form 990) relates to political campaign activities. If grants or transactions reported on Schedule F indirectly support or oppose political candidates, Schedule C reporting may be triggered.
Schedule J (Form 990) focuses on compensation of officers, directors, and key employees. If grants reported on Schedule F fund compensation-related expenses for individuals outside the organization, Schedule J may be necessary.
Accessing the latest versions of these forms – such as the 2024 Form 990 (Schedule J) available as a PDF – is vital. Ensure cross-referencing and consistent data reporting across all applicable schedules for full compliance.
















































































