Table 16.—Nonprofit charitable organization and domestic private foundation information returns, and tax-exempt organization business income tax returns: selected financial data, 1994-2001

Statistics of Income Bulletin, Fall, 2004

Table 16

[1] Includes data reported by organizations described in Internal Revenue Code section 501(c)(3), excluding private foundations and most religious organizations. Organizations with receipts under $25,000 were not required to file.

[2] Balance sheet data are end-of-year amounts.

[3] Represents fees collected by organizations in support of their tax-exempt purposes, and income such as from tuition and fees at educational institutions; hospital patient charges; and admission and activity fees collected by museums and other nonprofit organizations or institutions.

[4] The amounts of contributions, gifts, and grants shown reflects the amount actually disbursed, on a cash basis, for charitable purposes.

[5] Represents income not considered related to a foundation's charitable purpose, e.g., interest, dividends, and capital gains. Foundations could be subject to an excise tax on such income.

[6] Includes returns filed by or for entities described in Internal Revenue Code sections 401(a) (qualified pension, profit-sharing, or stock bonus plans), 408(e) (Individual Retirement Accounts, or IRA's), 408A (Roth IRA's), and 501(c)(2) through (27) (charitable and most other types of tax-exempt organizations).

[7] The primary reason for the drop in gross unrelated business income (UBI) and total deductions between Income Years 1997 and 1998 is the exclusion from the 1998 statistics of one association, which reported relatively large amounts of gross UBI and deductions for 1997 and prior years. The tax-exempt status of this association was terminated, effective 1998. For additional information, see Riley, Margaret, "Unrelated Business Income Tax Returns, 1998," Statistics of Income Bulletin, Spring 2002, Volume 21, Number 4.

[8] Aggregate amounts of total deductions, unrelated business taxable income (less deficit), and deficit previously published in various issues of the SOI Bulletin have been adjusted in Table 16 for Years prior to 1999. The revisions were required to take into account certain adjustments made to reported amounts of the "net operating loss deduction." During processing of the SOI sample of Tax Year 1999 returns, it was discovered that many Form 990 T filers were deducting the entire amount of any previous years' net operating loss carryover from net income (even when net income was zero or negative), rather than deducting only the part of the carryover amount needed to offset any positive net income amount. Entering the entire amount of the net operating loss carryover, as opposed to entering only the appropriate deduction amount, did not affect a filer's unrelated business income tax liability, but it did inflate the amount of deficit reported.

[9] Excludes cost of sales and services, which was subtracted from gross receipts from sales and services in computing gross profit from sales and services. Gross profit from sales and services is a component of "gross unrelated business income" (on which the filing requirement is based).

[10] Total tax was unrelated business income tax less the foreign tax credit, general business credit, credit for prior-year minimum tax, and other allowable credits, plus the "proxy tax" on certain lobbying expenditures, tax from recomputing certain prior-year credits ("recapture taxes"), the "alternative minimum tax," and the environmental tax (applicable only to tax years prior to 1996). Beginning with Income Year 2001, total tax can include interest due, computed under the look-back method for certain depreciated property and completed long-term contracts, and "other" taxes, as described by the return filer, such as recapture taxes, which were reported separately prior to Income Year 2001.