All 501(c)(3) organizations (charities) are required to file a Schedule A. If your organization has not met - or has only marginally met - the public charity qualifications in the past, we suggest you complete a "test" Schedule A before proceeding with the rest of the Form 990. Note that if you do not meet the tests required to be classified as a public charity, the form instructs you to complete a Form 990-PF (private foundation) instead.
Part I
Part I identifies your organization's reason for public charity status. Typically, this is found on your original filing for determination of exempt status and remains the same each year. However, now the IRS instructs that if you do not feel that the reason that you have checked in the past appropriately describes your reason for public status, you should check the more appropriate box. You are not required to request a change first; however, you may request a determination letter.
Part II, III
If you check box 5, 7, or 8 on Part I, you are required to complete Part II (support is predominantly from government or general public contributions). If you check box 9, you must complete Part III (support is predominantly from contributions, membership fees, and service revenue).
Other considerations
A major difference from the previous support test schedules is that the amounts entered on the new form are based on your accounting method. Whereas, in the past, they were required to be based on the cash basis of accounting. This means that if you use the accrual basis method, you will have to convert the prior years' schedules from cash to accrual. Also, no longer will new organizations be required to file the Form 8734 (Support Schedule for Advance Ruling Period) after their first five years in existence.