Instructions for S Instructions for Schedule D (Form 990), Supplemental Fin

2019

Instructions for Schedule D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Schedule D
(Form 990) and its instructions, such as
legislation enacted after they were
published, go to IRS.gov/Form990.

Reminders
FASB changes. Part V of the
Instructions to Form 990 have been
revised to reflect the financial statement
reporting changes required under the
Accounting Standards Update (ASU)
2016-14 (ASU 2016-14), Presentation
of Financial Statements of Not-for-Profit
Entities, issued by the Financial
Accounting Standards Board (FASB).
ASU 2016-14 changes the way
not-for-profit organizations (NFPs)
classify net assets.

General Instructions

Note. Terms in bold are defined in the
Glossary of the Instructions for Form
990, Return of Organization Exempt
From Income Tax.

Purpose of Schedule

Schedule D (Form 990) is used by an
organization that files Form 990 to
provide the required reporting for donor
advised funds, conservation
easements, certain art and museum
collections, escrow or custodial
accounts or arrangements,
endowment funds, and supplemental
financial information.

Who Must File

An organization that answered “Yes” to
any of lines 6 through 12a on Form 990,
Part IV, Checklist of Required
Schedules, must complete the
appropriate part(s) of Schedule D (Form
990) and attach the schedule to Form
990. An organization that answered
“Yes” on Form 990, Part IV, line 12b,
can complete Parts XI and XII of
Schedule D (Form 990), but isn't
required to do so.

Aug 21, 2019

If an organization isn't required to file
Form 990 but chooses to do so, it must
file a complete return and provide all of
the information requested, including the
required schedules.

Specific Instructions
Part I. Organizations
Maintaining Donor
Advised Funds or Other
Similar Funds or Accounts

Complete Part I if the organization
answered “Yes” on Form 990, Part IV,
line 6.
Generally a donor advised fund is a
fund or account:
1. That is separately identified by
reference to contributions of a
donor or donors;
2. That is owned and controlled by a
sponsoring organization; and
3. For which the donor or donor
advisor has or reasonably expects
to have advisory privileges in the
distribution or investment of
amounts held in the donor advised
fund or account because of the
donor's status as a donor.

Note. Donor advised funds aren't
limited to funds or accounts that meet
the definition of “funds” under generally
accepted accounting principles.
Exceptions. A donor advised fund
doesn't include any fund or account:
1. That makes distributions only to a
single identified organization or
governmental entity, or
2. In which a donor or donor advisor
gives advice about which individuals
receive grants for travel, study, or other
similar purposes, if:
a. The donor or donor advisor's
advisory privileges are performed
exclusively by such person in his or her
capacity as a member of a committee in
which all of the committee members are
appointed by the sponsoring
organization;
b. No combination of donors or
donor advisors (and related persons as
Cat. No. 51527M

defined next) directly or indirectly
control the committee; and
c. All grants from the fund or
account are awarded on an objective
and nondiscriminatory basis following a
procedure approved in advance by the
board of directors of the sponsoring
organization. The procedure must be
designed to ensure that all grants meet
the requirements of section 4945(g)(1),
(2), or (3); or
3. That the Secretary exempts from
being treated as a donor advised fund
because either such fund or account is
advised by a committee not directly or
indirectly controlled by the donor or
donor advisor or because such fund
benefits a single identified charitable
purpose.
See Notice 2006-109, 2006-51 I.R.B.
1121, available at IRS.gov/irb/
2006-51_IRB/ar11.html modified by
Rev. Proc. 2009-32, 2009-28 I.R.B. 142,
modified by Notice 2014-4, 2014-2
I.R.B. 274.
A person related to a donor or donor
advisor includes: any family member (as
defined in section 4958(f)(4)) of the
donor or donor advisor and any 35%
controlled entity (as defined in section
4958(f)(3)) of the donor, donor advisor,
or their family members.
Column (a). Complete for all donor
advised funds held at any time during
the tax year by the organization as a
sponsoring organization.
Column (b). Complete for each similar
fund or account held by the organization
at any time during the tax year over
which a donor, or person appointed by
the donor, had advisory privileges for
distribution or investment of amounts
held in such fund or account, but which
isn't a donor advised fund. Examples
of other similar funds or accounts
include the funds or accounts listed in
Exceptions above, as well as funds
otherwise prescribed by statute as
excepted from the meaning of a donor
advised fund.
Line 1. Report in column (a) the total
number of donor advised funds and in
column (b) the total number of other

similar funds or accounts held by the
organization at the end of the year.
Line 2. Report in column (a) the
aggregate value of contributions
during the year to all donor advised
funds and in column (b) the aggregate
value of contributions during the year to
all other similar funds or accounts held
by the organization.

the acreage consists of less than whole
numbers. For example, two and
one-half acres can be expressed as 2.5
acres.

Line 3. Report in column (a) the
aggregate value of grants made during
the year from all donor advised funds
and in column (b) the aggregate value of
grants made during the year from all
other similar funds or accounts held by
the organization. Report both grants
outside the organization and transfers
within the organization.

Line 2c. Enter the number of
conservation easements on certified
historic structures held by the
organization at the end of the tax year.
A certified historic structure is any
building or structure listed in the
National Register of Historic Places as
well as any building certified as being of
historic significance to a registered
historic district. See section
170(h)(4)(B) for special rules that apply
to contributions of conservation
easements on certified historic
structures in registered historic districts.

Line 4. Report in column (a) the
aggregate value at the end of the year of
all donor advised funds and in column
(b) the aggregate value at the end of the
year of all other similar funds or
accounts held by the organization.

Line 2d. Enter the number of
conservation easements included in
the answer to line 2c that the
organization acquired after July 25,
2006, and not on a historic structure
listed in the National Register.

Part II. Conservation
Easements

Line 3. To be eligible for a federal
charitable income tax deduction for the
donation of a conservation easement to
a qualified organization, the easement
must be granted in perpetuity. For
purposes of maintaining its tax
exemption, the recipient tax-exempt
organization generally must protect the
conservation easements it holds in
perpetuity.
Enter the total number of
conservation easements held by the
organization that were modified,
transferred, released, extinguished, or
terminated, in whole or in part, during
the tax year. For example, if two
easements were modified and one
easement was terminated during the tax
year, enter the number 3.
For each easement modified,
transferred, released, extinguished, or
terminated, in whole or in part, explain
the changes in Part XIII. Tax exemption
may be undermined by the modification,
transfer, release, extinguishment, or
termination of an easement.
For purposes of this Schedule D
reporting requirement, an easement is
modified when its terms are amended or
altered in any manner. For example, if
the deed of easement is amended to
increase the amount of land subject to
the easement or to add, alter, or remove
restrictions regarding the use of the
property subject to the easement, the
easement is modified. An easement is
transferred if, for example, the
organization assigns, sells, releases,
quitclaims, or otherwise disposes of the
easement whether with or without

Complete Part II if the organization
answered “Yes” on Form 990, Part IV,
line 7.
In addition to reporting on
conservation easements, also report
in Part II other interests in real property
that under state law have attributes
similar to a conservation easement and
are established for the purpose of
conservation and preservation (for
example, certain restrictive covenants
and equitable servitudes). Don't report
utility easements.
Line 1. Check the box for the purpose
or purposes for which the organization
held the easement(s) during the tax
year. Check all that apply.
Line 2. Provide an answer for each
item.
Line 2a. Enter the total number of
conservation easements held by the
organization at the end of the tax year.
This shouldn't be an estimate or a
rounded number.
Line 2b. Enter the total acreage
restricted by conservation easements
held by the organization at the end of
the tax year. Compute the total acreage
by adding together all the acres of land
subject to all the easements held as of
the end of the tax year. Don't include
conservation easements on certified
historic structures. Acreage can be
expressed in decimal points for
properties subject to easements where

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consideration. An easement is released,
extinguished, or terminated when it is
condemned, extinguished by court
order, transferred to the land owner, or
in any way rendered void and
unenforceable, in each case whether in
whole or in part. An easement is also
released, extinguished, or terminated
when all or part of the property subject
to the easement is removed from the
protection of the easement in exchange
for the protection of some other property
or cash to be used to protect some
other property.
The categories described in the
preceding paragraph are provided for
convenience purposes only and aren't
to be considered legally binding or
mutually exclusive. For example, a
modification may also involve a transfer
and an extinguishment, depending on
the circumstances. Use of a synonym
for any of these terms doesn't avoid the
application of the reporting requirement.
For example, calling an action a “swap”
or a “boundary line adjustment” doesn't
mean the action isn't also a
modification, transfer, or
extinguishment.
Line 4. Enter the total number of states
where property is located and subject to
a conservation easement held by the
organization during the tax year.
Line 5. A qualified organization must
have a commitment to protect the
conservation purposes of the easement,
and have the resources to enforce the
restrictions. Report whether the
organization has a written policy or
policies about how the organization will
monitor, inspect, and handle violations,
and how it will enforce conservation
easements. If “Yes,” briefly summarize
such policy or policies in Part XIII. Also,
indicate whether such policy or policies
are reflected in the organization's
easement documents. Monitoring
means the organization investigates the
use or condition of the real property
restricted by the easement to determine
if the property owner is adhering to the
restrictions imposed by the terms of the
easement to ensure the conservation
purpose of the easement is being
achieved. Inspection means an onsite
visit to observe the property to carry out
a monitoring purpose. Enforcement of
an easement means action taken by the
organization after it discovers a violation
to compel a property owner to adhere to
the terms of the conservation easement.
Such activities can include
communications with the property
owner explaining his or her obligations

2019 Instructions for Schedule D (Form 990)

with respect to the easement,
arbitration, or litigation.
Line 6. Enter the total number of hours
devoted during the tax year to
monitoring, inspecting, handling
violations, and enforcing conservation
easements, as those terms are defined
in the instructions for line 5 above.
Include the hours devoted to this
purpose by any of the organization's
paid or unpaid staff and by any of the
organization's agents or independent
contractors.
Line 7. Enter the total amount of
expenses incurred by the organization
during the tax year to monitor, inspect,
handle violations, and enforce the
conservation easements it held during
the year as those terms are defined in
the instructions for line 5.
Line 8. Answer “Yes” if each of the
organization's façade easements
acquired after July 25, 2006, satisfies
the requirements of sections
170(h)(4)(B)(i) and 170(h)(4)(B)(ii).
Section 170(h)(4)(B)(i) requires each
façade easement donated after August
17, 2006, to include a restriction that
preserves the entire exterior of the
building, including the front, sides, rear,
and height of the building, and to
prohibit any change in the exterior of the
building that is inconsistent with the
historical character of such exterior.
Section 170(h)(4)(B)(ii) requires the
donor and donee to enter into a written
agreement certifying, among other
things, that the donee organization has
the resources to manage and enforce
the restriction and a commitment to do
so.
Line 9. Enter in Part XIII a description
of how the organization reports
conservation easements in its
revenue and expense statement and on
its balance sheet. Include in Part XIII, if
applicable, the text of the footnote to the
organization's financial statements
that describes the organization's
accounting for conservation easements
and the basis for its reporting position
(for example, Financial Accounting
Standards Board (FASB) Emerging
Issues Task Force (EITF) 02-7,
Example 1 (now codified in Accounting
Standards Codification (ASC)
350-30-55-29 to 55-32)).
The organization must report
any qualified conservation
CAUTION contributions and
contributions of conservation
easements in Form 990, Part VIII,
Statement of Revenue; Schedule A

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(Form 990 or 990-EZ), Public Charity
Status and Public Support; Schedule B
(Form 990, 990-EZ, or 990-PF),
Schedule of Contributors; and
Schedule M (Form 990), Noncash
Contributions, consistently with how it
reports revenue from such contributions
in its books, records, and financial
statements.

Part III. Organizations
Maintaining Collections of
Art, Historical Treasures,
or Other Similar Assets

Complete Part III if the organization
answered “Yes” on Form 990, Part IV,
line 8.
Organizations that receive
contributions of works of art, historical
treasures, and similar assets that don't
maintain collections as described in the
Financial Accounting Standards Board
Accounting Standards Codification 958
(FASB ASC 958) (including what was
formerly SFAS 116), aren't required to
complete Part III, but may be required to
complete Schedule M.
For lines 1 and 2, refer to FASB ASC
958 for meanings of the various terms.

Lines 1 and 2. Pursuant to FASB ASC
958, certain organizations can choose
one of two methods to report collections
of works of art, historical treasures,
or other similar assets held for public
exhibition, education, or research in
furtherance of public service. An
organization that doesn't recognize and
capitalize its collections for financial
statement purposes will report its
collections on the face of its statement
of activities, separately from revenues,
expenses, gains, losses, and assets. An
organization that recognizes and
capitalizes its collections for financial
statement purposes will report its
collections as assets and revenues
based upon its fair value measurement.
Line 1 pertains to collection items held
by the organization in furtherance of
public service, and line 2 pertains to
collection items held by the organization
for financial gain, as those terms are
described in FASB ASC 958.
Line 1a. If an organization has
elected not to capitalize its collections,
then provide in Part XIII the footnote(s)
to the organization's financial
statements that describe these
collection items.
Line 1b. If an organization has
elected to capitalize its collections,
provide on line 1b(i) the revenue relating
to its collection items that is reported on

2019 Instructions for Schedule D (Form 990)

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Form 990, Part VIII, line 1. Also, provide
on line 1b(ii) the value of the
organization's collection items reported
as total assets on Form 990, Part X,
line 16, column (B).
Line 2. If an organization has received
or held collections for financial gain,
provide on line 2a the revenue reported
as to these collection items from the
total revenue included on Form 990,
Part VIII, line 1. Also, provide on line 2b
the asset value assigned to these
collection items, which value should
also be reported as part of the
organization's total assets reported on
Form 990, Part X, line 16, column (B).
Line 3. Based upon the organization's
acquisition, accession, and other
records, check all boxes that best
describe how the organization utilizes its
collections, including the collection's
most significant use.
Line 4. In Part XIII, provide a
description of the organization's
collections and explain how these
collections further the organization's
exempt purposes.
Line 5. Answer “Yes” to line 5 if during
the year the organization solicited or
received donations of art, historical
treasures, or other similar assets to be
sold in order to raise funds rather than
to be maintained as part of the
organization's collection.

Part IV. Escrow and
Custodial Arrangements

Complete Part IV if the organization
answered “Yes” on Form 990, Part IV,
line 9, or reported an amount on Form
990, Part X, line 21.
Lines 1a through 1f. If the
organization acts as an agent, trustee,
custodian or other intermediary for
funds payable to other organizations or
individuals and hasn't reported those
amounts on Form 990, Part X, as an
asset or liability, check “Yes” and
provide an explanation of the
arrangement in Part XIII.
Organizations that maintain escrow
or custodial accounts not reported on
Form 990, Part X, must record
increases or decreases in such
accounts by completing lines 1c through
1f.
Example 1. A credit counseling
organization that collects amounts from
debtors to remit to creditors holds funds
in an escrow or custodial account. If
the organization acts as a go-between
and doesn't report these funds as its
assets or liabilities on Form 990, Part X,

it must report the fund balances on lines
1c through 1f.

decide at any time to expend such
funds.

Example 2. An organization
providing down-payment assistance
that collects amounts from donors to be
used toward the purchase of qualifying
housing holds funds in an escrow or
custodial account. If the organization
acts as a go-between and doesn't report
these funds as its assets or liabilities on
Form 990, Part X, it must report the fund
balances on lines 1c through 1f.

Line 1a. Enter the beginning-of-year
balances of the organization's
endowment funds for the current year
and prior year. The amounts entered
should agree with the organization's
total permanent endowment, term
endowment, and board or
quasi-endowment funds at the
beginning of the current year and prior
year.

Line 2. If the organization answered
“Yes” to line 2a, explain in Part XIII the
arrangements under which the amounts
reported on Form 990, Part X, line 21,
are held, including any obligations the
organization has to other persons under
such arrangements.
Explain in Part XIII any credit
counseling, debt management, credit
repair, or debt negotiation services the
organization provided.

Line 1b. Enter the amounts of
current year and prior year
contributions and transfers to the
organization's endowment funds.
These amounts include all donor gifts,
grants, and contributions received, as
well as additional funds established by
the organization's governing board to
function like an endowment, but that can
be expended at any time at the
discretion of the board.

Part V. Endowment Funds

Line 1c. Enter the current year and
prior year net amounts of investment
earnings, gains, and losses, including
both realized and unrealized amounts.
For earnings reported net of transaction
costs, enter the net amount on line 1c.
For earnings reported on a gross basis,
enter the transaction costs on line 1f.

Complete Part V if the organization
answered “Yes” on Form 990, Part IV,
Line 10. For Part V, the definitions of
endowment and types of endowments
are governed by FASB ASC 958.
Information reported in Part V should
pertain to the aggregate of the
donor-restricted assets held by the
organization, organizations formed and
maintained exclusively to further one or
more exempt purposes of the
organization, and organizations that
hold endowment funds for the benefit of
the organization.
Term endowment includes
endowment funds established by
donor-restricted gifts that are
maintained to provide a source of
income for either a specified period of
time or until a specific event occurs.
These funds should be reported as
“temporarily restricted endowment” for
purposes of completing line 2c.
Permanent endowments are
endowment funds that are established
by donor-restricted gifts and 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.
Board-designated endowments or
quasi-endowments result from an
internal designation and are generally
not donor-restricted and are classified
as net assets without donor restrictions.
The governing board has the right to

Line 1d. Enter the current year and
prior year amounts distributed for grants
or scholarships.
Because scholarships represent

TIP direct aid to individuals, they are

distinguished from general
programmatic aid referenced in line 1e.

Line 1e. Enter the current year and
prior year amounts distributed for
facilities and programs. Amounts on this
line should include withdrawn amounts,
and amounts disinvested from an
organization's quasi-endowments to
reduce or eliminate capital investment.
Line 1f. Enter the current year and
prior year administrative expenses
charged to the endowment funds.
These expenses can arise from either
internal or third party sources.
Line 1g. Enter the year-end
balances of the organization's
endowment funds for the current year
and prior year. To determine the
year-end balances, add lines 1a, 1b,
and investment earnings on line 1c, and
subtract line 1c investment losses and
the amounts on lines 1d through 1f.
Line 2. On lines 2a through 2c, enter
the estimated percentage of the
organization's total endowment funds at
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the current year end (as reported in
line 1g, column (a)) held in (a) board
designated or quasi-endowment funds,
(b) permanent endowment funds, or (c)
term endowment funds. The total of
these three percentages should equal
100%. If the organization follows FASB
ASC 958, amounts should be reported
on Lines 2a, 2b, and 2c consistent with
the organization’s footnote disclosure
under FASB ASC 958.
Line 3. Report information on
endowment funds not in possession of
the organization.
Line 3a(i). Enter “Yes” if any of the
organization's endowment funds are in
the possession of and administered by
unrelated organizations.
Line 3a(ii). Enter “Yes” if any of the
organization's endowment funds are in
the possession of and administered by
related organizations.
Line 3b. All related organizations
are required to be reported on
Schedule R (Form 990), Related
Organizations and Unrelated
Partnerships. Enter “Yes” on line 3b if
the organization answered “Yes” to
line 3a(ii) and the organization listed all
related organizations referred to on
line 3a(ii) in Schedule R.
Line 4. Describe in Part XIII the
intended uses of the organization's
endowment funds.

Part VI. Land, Buildings,
and Equipment

Complete Part VI if the organization
answered “Yes” on Form 990, Part IV,
line 11a, and reported an amount on
Form 990, Part X, line 10a. Reporting is
required if any amount other than zero is
reported on those lines.

Column (a). Enter the cost or other
basis of all land, buildings, leasehold
improvements, equipment, and other
fixed assets held for investment
purposes, such as rental properties.
Column (b). Enter the cost or other
basis of all other land, buildings,
leasehold improvements, equipment,
and other fixed assets held for other
than investment purposes, including any
land, buildings, and equipment owned
and used by the organization in
conducting its exempt activities. The
total amounts reported in columns (a)
and (b) must equal the amount reported
on Form 990, Part X, line 10a.
Column (c). Enter the accumulated
depreciation recorded for the assets
listed in columns (a) and (b). Don't enter

2019 Instructions for Schedule D (Form 990)

an amount in column (c) for line 1a,
Land. The total of column (c) must equal
the amount reported on Form 990, Part
X, line 10b.

Form 990, Part X, column (B), line 13,
that is 5% or more of the total assets
reported on Form 990, Part X, column
(B), line 16.

Column (d). Enter the sum of column
(a) and column (b) minus column (c).
The total of column (d) must equal the
amount reported on Form 990, Part X,
column (B), line 10c.

Program-related investments are
investments made primarily to
accomplish the organization's exempt
purposes rather than to produce
income. Examples of program-related
investments include student loans and
notes receivable from other exempt
organizations that obtained the funds to
pursue the filing organization's exempt
function.

Part VII.
Investments—Other
Securities

Complete Part VII if the organization
answered “Yes” on Form 990, Part IV,
line 11b, or reported an amount in Form
990, Part X, column (B), line 12, that is
5% or more of the total assets reported
on Form 990, Part X, column (B),
line 16.
Other securities to be reported in this
part include closely held stock. They
also include (1) publicly-traded stock for
which the organization holds 5% or
more of the outstanding shares of the
same class, and (2) publicly-traded
stock in a corporation that comprised
more than 5% of the organization's total
assets at the end of the tax year. List
each separate class of publicly-traded
stock held by the organization that
meets either of these 5% ownership
tests. Don't include program-related
investments.

Column (a). Describe the type of
investment. Each class of
publicly-traded stock for which the
organization holds 5% or more of the
outstanding shares must be listed by
name and class, including the number
of shares held. Also report all
publicly-traded stock in a corporation
that comprised more than 5% of the
organization's total assets at the end of
the tax year.
Column (b). Enter the book value of
each investment. The total of column (b)
must equal the amount reported on
Form 990, Part X, column (B), line 12.
Column (c). Indicate whether the
investment is listed at cost or
end-of-year market value. When
reporting securities at fair market
value, use commonly accepted
valuation methods.

Part VIII.
Investments—Program
Related

Complete Part VIII if the organization
answered “Yes” on Form 990, Part IV,
line 11c, and reported an amount on

Column (a). Briefly describe each
program-related investment on a
separate line, including whether the
investment is a loan or equity
investment. For investments in a
domestic organization, identify the
organization.
Column (b). Enter the book value of
each program-related investment. The
total of column (b) must equal the
amount reported on Form 990, Part X,
column (B), line 13.
Column (c). Indicate whether the
investment is listed at cost or
end-of-year market value.

Part IX. Other Assets

Complete Part IX if the organization
answered “Yes” on Form 990, Part IV,
line 11d, or reported an amount on Form
990, Part X, column (B), line 15, that is
5% or more of the total assets reported
on Form 990, Part X, column (B),
line 16.
Column (a). Enter a description of
assets reported on Form 990, Part X,
column (B), line 15. The organization
can use any reasonable basis to classify
these assets.
Column (b). Enter the book value of
each asset. The total of column (b) must
equal the amount reported on Form
990, Part X, column (B), line 15.

Part X. Other Liabilities

Complete Part X if the organization
answered “Yes” on Form 990, Part IV,
line 11e or line 11f, and either reported
an amount on Form 990, Part X, column
(B), line 25, or had financial
statements for the tax year that
include a footnote addressing the
organization's liability for uncertain tax
positions. Organizations are required to
separately report all liabilities for federal
income taxes and amounts owed to
related organizations on Part X of this
schedule.

2019 Instructions for Schedule D (Form 990)

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Line 1. Other liabilities. In column (a),
list each type of liability not reported on
lines 17 through 24 of Form 990, Part X.
The organization can use any
reasonable basis to classify these
liabilities.
In column (b), enter the book value of
each liability. The total of column (b)
must equal the amount reported on
Form 990, Part X, column (B), line 25.
Line 2. Liability for uncertain tax positions. Every organization required to
complete Part X must provide the text of
the note in, or footnote to, its financial
statements, if applicable, regarding the
organization's liability for uncertain tax
positions under FASB ASC 740,
International Financial Reporting
Standards (IFRS), other
country-specific accounting standards,
or a modified version of any of the
above (for example, modified FASB
ASC 740). This includes, for example,
the description of a liability for
unrelated business income tax, or tax
that may be assessed as a result of the
revocation of exempt status. Provide the
full text of this note or footnote in Part
XIII, even if the organization did not
report any liability for uncertain tax
positions in the note or footnote. Any
portion of the note or footnote that
addresses only the filing organization's
liability must be provided verbatim. The
filing organization can summarize that
portion, if any, of a note or footnote that
applies to the liability of multiple
organizations, including the organization
(for example, as a member of a group
with consolidated financial statements),
to describe the filing organization's
share of the liability.

Parts XI Through XII.
Reconciliation of Revenue
and Expenses From Form
990 to Audited Financial
Statements

Complete Parts XI and XII if the
organization answered “Yes” on Form
990, Part IV, line 12a. If the organization
answered “Yes” on Form 990, Part IV,
line 12b (but answered “No” on
line 12a), completing Parts XI and XII is
optional.
If the organization did not receive
audited financial statements for the
reporting year for which it is completing
this Form 990, it isn't required to
complete Parts XI or XII, even if it
prepared Form 990 in accordance with
Financial Accounting Standards Board
Accounting Standards Codification 958
(FASB ASC 958)

Use the reconciliation statements of
Parts XI and XII to reconcile the
differences between the revenue and
expenses reported on the organization's
audited financial statements prepared in
accordance with Financial Accounting
Standards Board Accounting Standards
Codification 958 (FASB ASC 958) and
the revenue and expenses reported on
the organization's Form 990.
On line 4a of Parts XI and XII, include
only those investment expenses netted
against investment income in the
revenue portion of the organization's
audited financial statements. Don't
include program-related investment
expenses or other expenses reported
as program service expenses in the
audited statement of activities.

Parts XI and XII don't have to be
completed for group returns.

Part XIII. Supplemental
Information

Complete Part XIII to provide narrative
information required in the following.
• Part II, lines 3, 5, and 9
(conservation easements).
• Part III, lines 1a and 4 (collections of
works of art, historical treasures,
and other similar assets).
• Part IV, lines 1b and 2b (escrow or
custodial arrangements, or credit
counseling, debt management, credit
repair, or debt negotiation services).
• Part V, line 4 (endowment funds).

-6-

• Part X, line 2 (note or footnote to
financial statements regarding liability
for uncertain tax positions).
• Part XI, lines 2d and 4b
(reconciliation of revenue).
• Part XII, lines 2d and 4b
(reconciliation of expenses).
Also use Part XIII to provide
additional narrative explanations and
descriptions, as needed. Identify the
specific part and line number that the
response supports in the order that it
appears on Schedule D (Form 990).
Part XIII can be duplicated if more
space is needed.

2019 Instructions for Schedule D (Form 990)