Form Schedule E Form 99 Schedule E Form 99 Schools

Caution: DRAFT TAX PRODUCT
This is an advance proof copy of an IRS tax form,
instructions, or publication. It may be subject to
change and OMB approval before it is officially
released.
If you have any comments on this draft, you can
submit them to us on our IRS.gov page titled
Comment on Forms and Publications, where you
may make comments anonymously if you wish.
You can also email us at taxforms@irs.gov. Please
include the form or publication number in the
subject. We cannot respond to all comments due to
the high volume we receive, but we will carefully
consider each suggestion. Please note that we may
not be able to consider some comments until the
subsequent revision of the product.

Schools

SCHEDULE E
(Form 990 or 990-EZ)

▶

Department of the Treasury
Internal Revenue Service
Name of the organization

OMB No. 1545-0047

2011

Complete if the organization answered “Yes” to Form 990, Part IV, line 13, or
Form 990-EZ, Part VI, line 48.
▶ Attach to Form 990 or Form 990-EZ.

Open to Public
Inspection

Employer identification number

f
o
s
a
1
t
1
f
0
a
2
r
/
D /09
8
0

Part I

YES NO

1

Does the organization have a racially nondiscriminatory policy toward students by statement in its charter,
bylaws, other governing instrument, or in a resolution of its governing body? . . . . . . . . . .

1

2

Does the organization include a statement of its racially nondiscriminatory policy toward students in all its
brochures, catalogues, and other written communications with the public dealing with student admissions,
programs, and scholarships? . . . . . . . . . . . . . . . . . . . . . . . . . .

2

3

Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media
during the period of solicitation for students, or during the registration period if it has no solicitation program,
in a way that makes the policy known to all parts of the general community it serves? If “Yes,” please
describe. If “No,” please explain. If you need more space, use Part II . . . . . . . . . . . . .

3

4

Does the organization maintain the following?
a Records indicating the racial composition of the student body, faculty, and administrative staff? . . . .
b Records documenting that scholarships and other financial assistance are awarded on a racially
nondiscriminatory basis? . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing
with student admissions, programs, and scholarships? . . . . . . . . . . . . . . . . . .
d Copies of all material used by the organization or on its behalf to solicit contributions? . . .
If you answered “No” to any of the above, please explain. If you need more space, use Part II.

5
a

Does the organization discriminate by race in any way with respect to:
Students’ rights or privileges? . . . . . . . . . . . . . .

b Admissions policies? .
c

4a
4b

.

.

.

.

4c
4d

.

.

.

.

.

.

.

.

.

.

.

.

5a

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5b

Employment of faculty or administrative staff? .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5c

.

.

.

.

.

.

.

d Scholarships or other financial assistance? .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5d

e

Educational policies? .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5e

f

Use of facilities?

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5f

g Athletic programs? .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5g

Other extracurricular activities?
. . . . . . . . . . . . . . . . . . . . .
If you answered “Yes” to any of the above, please explain. If you need more space, use Part II.

.

.

.

.

5h

h

6a Does the organization receive any financial aid or assistance from a governmental agency? . . . . . .
b Has the organization’s right to such aid ever been revoked or suspended? . . . . . . . . . . .
If you answered “Yes” to either line 6a or line 6b, explain on Part II.
Does the organization certify that it has complied with the applicable requirements of sections 4.01 through
7
4.05 of Rev. Proc. 75-50, 1975-2 C.B. 587, covering racial nondiscrimination? If “No,” explain on Part II . .
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or Form 990-EZ.

Cat. No. 50085D

6a
6b

7

Schedule E (Form 990 or 990-EZ) (2011)

Page 2
Supplemental Information. Complete this part to provide the explanations required by Part I, lines 3, 4d, 5h,
6b, and 7, as applicable. Also complete this part to provide any other additional information (see instructions).

Schedule E (Form 990 or 990-EZ) (2011)

Part II

f
o
s
a
1
t
1
f
0
a
2
r
/
D /09
8
0

Schedule E (Form 990 or 990-EZ) (2011)

Page 3

Schedule E (Form 990 or 990-EZ) (2011)

General Instructions
Purpose of Schedule

f
o
s
a
1
t
1
f
0
a
2
r
/
D /09
8
0

Schedule E (Form 990 or 990-EZ) is used by an organization
that files Form 990 or Form 990-EZ to report information on
private schools.

Who Must File

An organization that answered “Yes” to Form 990, Part IV, line
13 or Form 990-EZ, Part VI, line 48 must complete and attach
Schedule E to Form 990 or Form 990-EZ, as applicable. This
means the organization checked the box on Schedule A (Form
990 or 990-EZ), Public Charity Status and Public Support, Part I,
line 2, because it is a school.
If an organization is not required to file Form 990 or Form
990-EZ but chooses to do so, it must file a complete return and
provide all of the information requested, including the required
schedules.
For Form 990 and Form 990-EZ filers, use Part II if additional
space is needed for explanations.

Specific Instructions
Part I

reasonably likely to be read by all racial segments of the
communities that it serves. The notice must appear in a section
of the newspaper likely to be read by prospective students and
their families and it must occupy at least three column inches. It
must be captioned in at least 12 point boldface type as a notice
of nondiscriminatory policy as to students, and its text must be
printed in at least 8 point type. The following notice will be
acceptable:

Relevant parts of Rev. Proc. 75-50, 1975-2 C.B. 587, are given
below. The revenue procedure gives guidelines and
recordkeeping requirements for determining whether private
schools that are recognized as exempt from tax have racially
nondiscriminatory policies toward their students.

4.01 Organizational requirements. A school must include a
statement in its charter, bylaws, or other governing instrument,
or in a resolution of its governing body, that it has a racially
nondiscriminatory policy as to students and therefore does not
discriminate against applicants and students on the basis of
race, color, and national or ethnic origin.
4.02 Statement of policy. Every school must include a
statement of its racially nondiscriminatory policy as to students
in all its brochures and catalogues dealing with student
admissions, programs, and scholarships. A statement
substantially similar to the Notice described in paragraph (a) of
subsection 1 of section 4.03, below, will be acceptable for this
purpose. Further, every school must include a reference to its
racially nondiscriminatory policy in other written advertising that
it uses as a means of informing prospective students of its
programs. The following references will be acceptable:
The (name) school admits students of any race, color, and
national or ethnic origin.
4.03 Publicity. The school must make its racially
nondiscriminatory policy known to all segments of the general
community served by the school.
1. The school must use one of the following two methods to
satisfy this requirement:
a. The school may publish a notice of its racially
nondiscriminatory policy in a newspaper of general circulation
that serves all racial segments of the community. This
publication must be repeated at least once annually during the
period of the school’s solicitation for students or, in the absence
of a solicitation program, during the school’s registration period.
Where more than one community is served by a school, the
school may publish its notice in those newspapers that are

Notice of Nondiscriminatory Policy as to Students
The (name) school admits students of any race, color, national
and ethnic origin to all the rights, privileges, programs, and
activities generally accorded or made available to students at
the school. It does not discriminate on the basis of race, color,
national and ethnic origin in administration of its educational
policies, admissions policies, scholarship and loan programs,
and athletic and other school-administered programs.

b. The school may use the broadcast media to publicize its
racially nondiscriminatory policy if this use makes such
nondiscriminatory policy known to all segments of the general
community the school serves. If this method is chosen, the
school must provide documentation that the means by which
this policy was communicated to all segments of the general
community was reasonably expected to be effective. In this
case, appropriate documentation would include copies of the
tapes or script used and records showing that there was an
adequate number of announcements, that they were made
during hours when the announcements were likely to be
communicated to all segments of the general community, that
they were of sufficient duration to convey the message clearly,
and that they were broadcast on radio or television stations
likely to be listened to by substantial numbers of members of all
racial segments of the general community. Announcements
must be made during the period of the school’s solicitation for
students or, in the absence of a solicitation program, during the
school’s registration period.
Communication of a racially nondiscriminatory policy as to
students by a school to leaders of racial groups as the sole
means of publicity generally will not be considered effective to
make the policy known to all segments of the community.
2. The requirements of subsection 1 of section 4.03 will not
apply when one of the following paragraphs applies:
a. If for the preceding 3 years the enrollment of a parochial or
other church-related school consists of students at least 75% of
whom are members of the sponsoring religious denomination or
unit, the school may make known its racially nondiscriminatory
policy in whatever newspapers or circulars the religious
denomination or unit utilizes in the communities from which the
students are drawn. These newspapers and circulars may be
those distributed by a particular religious denomination or unit
or by an association that represents a number of religious
organizations of the same denomination. If, however, the school
advertises in newspapers of general circulation in the
community or communities from which its students are drawn
and paragraphs (b) and (c) of this subsection are not applicable
to it, then it must comply with paragraph (a) of subsection 1 of
section 4.03.
b. If a school customarily draws a substantial percentage of
its students nationwide or worldwide or from a large geographic
section or sections of the United States and follows a racially
nondiscriminatory policy as to students, the publicity
requirement may be satisfied by complying with section 4.02,
earlier. Such a school may demonstrate that it follows a racially
nondiscriminatory policy within the meaning of the preceding
sentence either by showing that it currently enrolls students of

Page 4

Schedule E (Form 990 or 990-EZ) (2011)

racial minority groups in meaningful numbers or, when minority
students are not enrolled in meaningful numbers, that its
promotional activities and recruiting efforts in each geographic
area were reasonably designed to inform students of all racial
segments in the general communities within the area of the
availability of the school. The question whether a school
satisfies the preceding sentence will be determined on the basis
of the facts and circumstances of each case.

that school to be considered racially nondiscriminatory as to
students. Scholarships and loans that are made pursuant to
financial assistance programs favoring members of one or more
racial minority groups that are designed to promote a school’s
racially nondiscriminatory policy will not adversely affect the
school’s exempt status.

f
o
s
a
1
t
1
f
0
a
2
r
/
D /09
8
0

c. If a school customarily draws its students from local
communities and follows a racially nondiscriminatory policy as
to students, the publicity requirement may be satisfied by
complying with section 4.02, earlier. Such a school may
demonstrate that it follows a racially nondiscriminatory policy
within the meaning of the preceding sentence by showing that it
currently enrolls students of racial minority groups in meaningful
numbers. The question whether a school satisfies the preceding
sentence will be determined on the basis of the facts and
circumstances of each case. One of the facts and
circumstances that the IRS will consider is whether the school’s
promotional activities and recruiting efforts in each area were
reasonably designed to inform students of all racial segments in
the general communities within the area of the availability of the
school. The IRS recognizes that the failure by a school drawing
its students from local communities to enroll racial minority
group students may not necessarily indicate the absence of a
racially nondiscriminatory policy as to students when there are
relatively few or no such students in these communities. Actual
enrollment is, however, a meaningful indication of a racially
nondiscriminatory policy in a community in which a public
school or schools became subject to a desegregation order of a
federal court or otherwise expressly became obligated to
implement a desegregation plan under the terms of any written
contract or other commitment to which any federal agency was
a party.

The IRS encourages schools to satisfy the publicity
requirement by the methods described in subsection 1 of this
section 4.03, regardless of whether a school considers itself
within subsection 2, because it believes these methods to be
the most effective to make known a school’s racially
nondiscriminatory policy. It is each school’s responsibility to
determine whether paragraph (a), (b), or (c) of subsection 2
applies to it. On audit, a school must be prepared to
demonstrate that the failure to publish its racially
nondiscriminatory policy in accordance with subsection 1 of this
section 4.03 was justified by the application to it of paragraph
(a), (b), or (c) of subsection 2. Further, a school must be
prepared to demonstrate that it has publicly disavowed or
repudiated any statements purported to have been made on its
behalf (after November 6, 1975) that are contrary to its publicity
of a racially nondiscriminatory policy as to students, to the
extent that the school or its principal official were aware of such
statements.
4.04 Facilities and programs. A school must be able to show
that all of its programs and facilities are operated in a racially
nondiscriminatory manner.
4.05 Scholarship and loan programs. As a general rule, all
scholarship or other comparable benefits available for use at
any school must be offered on a racially nondiscriminatory
basis. Their availability on this basis must be known throughout
the general community being served by the school and should
be referred to in the publicity required by this section in order for

Financial assistance programs favoring members of one or
more racial groups that do not significantly derogate from the
school’s racially nondiscriminatory policy similarly will not
adversely affect the school’s exempt status.
4.06 Certification. An individual authorized to take official
action on behalf of a school that claims to be racially
nondiscriminatory as to students is required to certify annually,
under penalties of perjury, that to the best of his or her
knowledge and belief the school has satisfied the applicable
requirements of sections 4.01 through 4.05 of Rev. Proc. 75-50.
This certification is line 7 of Schedule E.
4.07 Faculty and staff. The existence of a racially
discriminatory policy for employment of faculty and
administrative staff is indicative of a racially discriminatory
policy as to students. On the other hand, the absence of racial
discrimination in employment of faculty and administrative staff
is indicative of a racially nondiscriminatory policy as to students.
7.01 Specific records. Except as provided in section 7.03, each
exempt private school must maintain for a minimum period of
three years, beginning with the year after the year of compilation
or acquisition, the following records for the use of the IRS on
proper request:
1. Records indicating the racial composition of the student
body, faculty, and administrative staff for each academic year.
2. Records sufficient to document that scholarship and other
financial assistance is awarded on a racially nondiscriminatory
basis.
3. Copies of all brochures, catalogues, and advertising
dealing with student admissions, programs, and scholarships.
Schools advertising nationally or in a large geographic segment
or segments of the United States need only maintain a record
sufficient to indicate when and in what publications their
advertisements were placed.
4. Copies of all materials used by or on behalf of the school to
solicit contributions.
7.02 Limitation.
1. For purposes of section 7.01, the racial composition of the
student body, faculty, and administrative staff may be an
estimate based on the best information readily available to the
school, without requiring student applicants, students, faculty,
or administrative staff to submit information to the school that
the school otherwise does not require. For each academic year,
however, a record of the method by which racial composition is
determined must be maintained.
2. The IRS does not require that a school release personally
identifiable records or personal information contained therein
except in accordance with the requirements of the “Family
Educational Rights and Privacy Act of 1974,” 20 U.S.C. section
1232(g) (1974). Similarly, the IRS does not require a school to
keep records the maintenance of which is prohibited under state
or federal law.

Page 5

Schedule E (Form 990 or 990-EZ) (2011)

7.03 Exceptions. The records described in section 7.01 need
not be independently maintained for IRS use if:
1. Substantially the same information that each of these
records would provide has been included in a report or reports
filed in accordance with law with an agency or agencies of
federal, state, or local government, and this information is
current within one year, and

Part II. Supplemental Information
Use Part II to provide the narrative explanations required, if
applicable, to supplement responses to Part I, lines 3, 4d, 5h,
6b, and 7. Part II may also be used to supplement other
responses to questions on Schedule E (Form 990 and 990-EZ).
In Part II, identify the specific line number that each response
supports, in the order in which those lines appear on Schedule
E (Form 990 or 990-EZ). Part II can be duplicated if more space
is needed.

f
o
s
a
1
t
1
f
0
a
2
r
/
D /09
8
0

2. The school maintains copies of these reports from which
this information is readily obtainable. Records described in
section 7.01 providing information not included in reports filed
with an agency or agencies must be maintained by the school
for IRS use.

7.04 Failure to maintain records. Failure to maintain or to
produce upon the proper request the required records and
information will create a presumption that the organization has
failed to comply with these guidelines.