990-US: Adjusted net income on Form 990-PF (FAQ)

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Question

Why does information appear or not appear in Part I, column c?

Answer

  • Information appears in column c for the calculation of Adjusted Net Income based on the type of private foundation indicated on Screen 990PF. The application defaults to calculating the return as a private operating foundation if no entry is made in the Type of private foundation field in Screen 990PF. Enter 1 in this field to indicate that this is a non-operating private foundation with no charitable activity income or 2 for a non-operating private foundation with charitable activity income.
  • If the organization is classified as a private operating foundation under section 4942(j)(3) or (5), the application completes all applicable lines of column c.
  • If the organization is a non-operating private foundation with no charitable activity income (code 1), the adjusted net income calculation is not required and column c remains blank.
  • If the organization is a non-operating private foundation with charitable activity income (code 2), a modified adjusted net income calculation is required. The application completes only revenue lines 10 and 11 and the related expenses. The balance of column c is not completed.

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