Page 89 - Washington Nonprofit Handbook 2018 Edition

y Other Materials. If relevant, gather the following:

y Copies of leases, loan agreements or other contracts between
the organization and its officers, directors, highest compensated
employees, highest compensated independent contractors or
any entity in which any of the above individuals owns more than
a 35% interest;

y Independent appraisals or other data substantiating the value
of any assets the organization is renting or purchasing from
related parties; and

y Copies of any agreements pursuant to which another individual
or organization will raise funds for the organization or pursuant
to which the organization will raise funds for any other
organization.

y Information Required for Schedules. Form 1023 has a number of
schedules, including special schedules if the organization is a church,
school, hospital or supporting organization or provides low-income
housing or provides scholarships. If any of the Form 1023 schedules
applies to the activities of your organization, be sure to review the
applicable schedule and gather the required information.

d. Tips for Completing Form 1023

(i) General Considerations

If the Form 1023 does not permit enough space to answer the question
posed, say “Please See Attachment” or “Please See Exhibit Attached” and attach a
word document or spreadsheet. Inserting these in the appropriate spot within the
pages of the application itself (i.e., behind the page of the application that

references the attachment) will facilitate IRS review by making it easy for the IRS
agent to find your attachments. Be sure to label each attachment with the
organization’s name and employer identification number and the question number
to which the attachment relates.

In completing the application, it is important to be as transparent as possible
regarding the organization’s activities, finances, etc. If information relevant to a
question has been provided in a prior part of the application, cross-referencing is
acceptable. For example, if an organization intends to make grants to support

WASHINGTON NONPROFIT HANDBOOK -78- 2018