Instructions on how to answer the questions on the Form 1023 Schedule B
Schedule B of the form 1023 is only for schools.
The term “school” includes primary, secondary, preparatory, high schools, colleges, and universities. An organization won’t be described as a school under sections 509(a)(1) and 170(b)(1)(A)(ii) if it engages in both educational and non-educational activities, unless the latter are merely incidental to the educational activities. Non-traditional schools such as an outdoor survival school or a yoga school may qualify.
However, an organization may further an educational purpose without satisfying all the conditions listed above that describe a school. Such organizations may qualify as public charities based upon their sources of support as organizations described in sections 509(a)(1) and 170(B)(1)(A)(vi) or section 509(a)(2).
An organization qualifies as a school (for purposes of classification under sections 509(a)(1) and 170(b)(1)(A)(ii)) if all the following applies. It:
- Presents formal instruction as its primary function,
- Has a regularly scheduled curriculum,
- Has a regular faculty of qualified teachers,
- Has a regularly enrolled student body, and
- Has a place where educational activities are regularly carried
Form 1023 Schedule B Line 1.
Answer “Yes,” if you have a regularly scheduled curriculum, a regular faculty of qualified teachers, a regularly enrolled student body, and facilities where your educational activities are regularly carried on.
If you answer “Yes,”you should maintain in your records evidence that you meet these factors, such as:
- A list of required courses of study, dates and times courses are offered, and other information about how to complete required courses;
- Certification by the appropriate state authority or successful completion of required training for qualified teachers;
- Records of regular attendance by students at your facility; and
- A lease agreement or deed for your
If you answer “No,” you may not meet the requirements of a school and you may need to go back to Part VII, line 1, to reconsider your foundation classification if you requested classification as a school under sections 509(a)(1) and 170(b)(1)(A) (ii).
Form 1023 Schedule B Line 2.
Answer “Yes,” if your primary function of the school is the presentation of formal instruction. If you answer “No,” you may not meet the requirements for classification as a school and may want to go back to Part VII, line 1, to reconsider your foundation classification if you requested classification as a school under sections 509(a)(1) and 170(b)(1)(A)(ii).
Form 1023 Schedule B Line 3.
Answer “Yes,” if you’re a public school and explain how you’re operated by the state or a subdivision of a state, including if you have a signed contract or agreement with a state or local government under which you operate and receive funding. If you answer “Yes,” don’t complete the remainder of Schedule B.
Form 1023 Schedule B Line 4.
Answer “Yes,” if you were formed or substantially expanded when public schools in your district or county were desegregated by court order. If you’re unsure whether to answer “Yes,”contact an appropriate school official.
Form 1023 Schedule B Line 5.
Answer “Yes,” if a state or federal administrative agency or judicial body ever determined your organization to be racially discriminatory. Identify the parties involved and the forum in which the case was presented. Explain the reason for the action, the decision reached, and provide legal citations (if any) for the decision. Also, explain in detail any changes made in response to the action against your organization or the decision reached.
Establishment of Racially Nondiscriminatory Policy
A section 501c3 organization that is a private school must publish a notice of its racially nondiscriminatory policy. Please see the link mentioned as I’ve explained in detail what you have to do.
A private school must also be certified annually that it meets the requirements of Rev. Proc. 75-50, as modified by Rev. Proc. 2019-22, by filing Schedule A (Form 990, or Form 990-EZ). Schools that don’t file Form 990 or 990-EZ must make the certification by filing Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax.
Form 1023 Schedule B Line 7.
Answer “Yes,” if your organizing document or bylaws contain a nondiscriminatory statement as to students similar to the one shown above or if you adopted such a policy by resolution of your governing body. State where your policy is located in your organizing document, bylaws, or if it is in an adopted resolution. If you answered “No,” you must adopt a nondiscriminatory policy before submitting this application.
Form 1023 Schedule B Line 8.
Answer “Yes,” if your brochures, application forms, advertisements, and catalogues dealing with student admissions, programs, and scholarships contain a statement similar to the following:
The M school admits students of any race, color, and national or ethnic origin.
Form 1023 Schedule B Line 8a.
If you answered “No” to Line 8, check the box on line 8a if you agree that all future printed materials, including website content, will contain a statement of nondiscriminatory policy as to students similar to the one provided above.
Form 1023 Schedule B Line 9.
You must make your nondiscriminatory policy known to all segments of the general community served by the school. One way to meet this requirement is to publish your nondiscriminatory policy annually in a newspaper or over broadcast media. Rev. Proc. 2019-22 now allows this publication requirement to be satisfied by continuously displaying your nondiscrimination statement on your Internet site, as described below.
Check “Yes,” if you make your racially nondiscriminatory policy known to all segments of the general community you serve by:
- Publishing a notice of your policy in a newspaper of general circulation that serves all racial segments of the community;
- publicizing your policy over broadcast media in a way that is reasonably expected to be effective; or
- display a notice of your policy at all times on your primary, publicly accessible website in a manner reasonably expected to be noticed by visitors.
Form 1023 Schedule B Line 9a.
If you answered “No,” to line 9, check the box on line 9a if you agree that you will publicize your nondiscriminatory policy in a way that meets the requirements of Revenue Procedure 75– 50, as modified by Revenue Procedure 2019-22.
Form 1023 Schedule B Line 11.
Enter the racial composition of your student body, faculty, and administrative staff in the spaces provided. Enter actual numbers, rather than percentages, for the current year and projected numbers for the next academic year. If the number is zero, then enter “0.”
If you’re not operational, submit an estimate based on the best information available (such as the racial composition of the community you serve).
Form 1023 Schedule B Line 12.
Enter the racial composition of students to whom you award loans and scholarships in the spaces provided. Enter actual numbers, rather than percentages, for the current year and projected numbers for the next academic year. If the number is zero, then enter “0.” If you won’t provide any loans or scholarships, check the box provided.
- Copies of brochures, application forms, advertisements, and catalogues dealing with student admissions, programs, and financial aid.
Form 1023 Schedule B Line 13.
Identify each of your incorporator/s, founders, board members, donors of land, and donors of buildings by name (whether individuals or organizations).
Form 1023 Schedule B Line 14.
Answer “Yes,” if any individuals or organizations on your list have an objective to keep public or private school education segregated by race and explain how these individuals or organizations promote segregation in public or private schools.
Form 1023 Schedule B Line 15.
Answer “Yes,” if on a continuing basis, you will maintain for a minimum period of 3 years the following records.
- Your racial composition (similar to the information requested on Schedule B, line 11).
- Evidence that your scholarships and loans are awarded on a racially nondiscriminatory basis (similar to the information requested on Schedule B, line 12).
- Nonprofit Articles of Incorporation,
- Nonprofit Bylaws,
- Nonprofit Conflict of Interest Policy,
- Conflict of Interest Policy Acknowledgment,
- Form 1023 Attachment with all the answers,
- Form 1023 Expedite Letter template,
- and Donor Contribution Form
in Microsoft Word Document format, please consider making a donation and you’ll get to download them immediately. Not only they're worth well over $1000 in value, they will save you weeks of copy pasting and formatting as they are ready to go templates which only need changing names and addresses.
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