In Schedule I, you’ll report grants and other assistance that you gave to domestic organizations, government entities, and individuals. If you gave grants to foreign organizations and/or individuals, you’ll report those on the Schedule F, in Parts II and III, respectively. On Schedule I, report grants and assistance that you give to the recipient directly, or through a disregarded entity or a joint venture treated as a partnership. Note that “domestic individuals” includes citizens of foreign countries who are living or residing in the US or a US possession.
Grants and assistance may include awards, prizes, contributions, noncash assistance, cash allocations, stipends, scholarships, fellowships, research grants, and similar payments or distributions. Do not include:
- Salaries and other staff compensation
- Payments to independent contractors, for which the primary purpose is the direct and immediate needs of your organization, such as legal, accounting, or fundraising services
- Payments of benefits to a 501(c)(9) voluntary employees’ beneficiary association (VEBA) for your employees
- Grants to affiliates that are not separate legal entities
- Payments to branch offices, accounts, or employees of your organization located in the US
- Grants or assistance to domestic organizations, governments, or individuals for the purpose of providing grants or assistance to a designated foreign organization, government, or individual. This would be reported on Schedule F.
In Part I, check off whether you keep the records described in line 1, and describe in Part IV how you monitor the use of grant funds. For the latter, the IRS is looking for how you ensure grants are used for their intended purpose and not redirected to other uses.
In Part II, list each domestic organization and government entity to which you gave at least $5,000 of grants and other assistance. Put the organization’s legal name and mailing address in column (a), their EIN in column (b), and the section of the Internal Revenue Code under which they are tax exempt in column (c). If it’s a government entity, put its name in column (c). Leave it blank if the organization is neither tax-exempt, nor a government entity. If you gave a cash grant, put the amount in column (d). For non-cash grants, put the fair market value in column (e), the method of valuation in column (f), and describe the type(s) of property given in column (g). In column (h), describe the purpose of the grant in specific terms, such as general support, payments for nursing services, or laboratory construction. On line 2, put the number of 501(c)(3) organizations and government entities you listed, and on line 3, put the number of other organizations, including those that are tax-exempt under sections other than 501(c)(3).
In Part III, list each domestic individuals to whom you gave at least $5,000 of grants and other assistance. If you gave a grant to an organization or government entity that was earmarked for a specific individual, such as paying someone’s hospital bill, report that in Part III instead of Part II. In column (a), describe the assistance given in specific terms, such as scholarships for attending a particular school, or food, clothing, and shelter for indigents. In column (b), put the number of individuals who received this type of assistance. If you don’t know the exact number, put an estimate, and describe in Part IV how you made the estimate. For cash grants, put the total for each type of assistance in column (c). For non-cash grants, put the fair market value in column (d), the method of determining the fair market value in column (e), and the type(s) of property given in column (f).
Schedule I can be found here, and more detailed instructions for filling it out are provided on pages 3 and 4 of the form.