IRS Instruction 990 (Schedule F)

IRS Instruction 990 (Schedule F) – Tax-exempt organizations with international operations must accurately report foreign activities on Schedule F (Form 990). This schedule provides transparency into grants, program services, investments, and other activities conducted outside the United States. Proper completion helps maintain compliance, supports public accountability, and avoids potential IRS scrutiny or penalties.

The official Instructions for Schedule F (Form 990) (Rev. December 2024) apply to tax year 2024 and are now in continuous-use format (updated only as needed). The form and instructions are available directly from the IRS at IRS.gov.

Who Must File Schedule F (Form 990)?

An organization filing Form 990 must attach Schedule F if it answers “Yes” on Part IV (Checklist of Required Schedules) to any of these lines:

Line 14b — Aggregate revenues or expenses exceed $10,000 from grantmaking, fundraising, business, investment, or program services outside the U.S., or aggregate book value of investments in foreign entities is $100,000 or more.
Line 15 — Grants or other assistance to foreign organizations, governments, or entities exceed $5,000 in aggregate (including grants to domestic entities for designated foreign beneficiaries).
Line 16 — Grants or other assistance to foreign individuals (or via domestic entities for foreign individuals) exceed $5,000 in aggregate.

Even organizations that voluntarily file a complete Form 990 (when not otherwise required) must include Schedule F if these thresholds are met.

Note: Form 990-EZ filers have separate (simpler) foreign activity reporting on that form; Schedule F applies only to full Form 990 filers.

Purpose of Schedule F

Schedule F discloses the organization’s activities conducted outside the United States during the tax year. Reportable activities include:

Grants and other assistance
Program-related investments
Fundraising
Unrelated trade or business
Program services
Investments
Maintaining offices, employees, or agents for any of the above

Activities are reported by geographic region (not individual countries). The IRS defines 10 standard regions (full list in the instructions), such as:

Central America and the Caribbean
East Asia and the Pacific
Europe (including Iceland and Greenland)
Middle East and North Africa
North America (Canada and Mexico)
Russia and Neighboring States
South America
South Asia
Sub-Saharan Africa
Antarctica

Key definitions:

United States — Includes the 50 states, District of Columbia, Puerto Rico, Northern Mariana Islands, Guam, American Samoa, and U.S. Virgin Islands.
Grants and other assistance — Cash, noncash, scholarships, fellowships, research grants, etc. (Excludes employee compensation, independent contractor payments, and certain VEBA benefits.)
Program services — Core exempt-purpose activities (e.g., operating a school, hospital, or providing disaster relief abroad).

Activities conducted directly or indirectly through a disregarded entity or partnership treated as a joint venture must be reported.

Step-by-Step Guide: How to Complete Schedule F (Form 990)

Part I – General Information on Activities Outside the United States

Complete this part if “Yes” on Form 990, Part IV, line 14b.

Line 1 — For grantmakers: Do you maintain records substantiating amounts, grantee eligibility, and selection criteria? (Yes/No)
Line 2 — Describe in Part V your procedures for monitoring use of grants/assistance outside the U.S. (e.g., reports, site visits, audits).
Line 3 — Complete the table (duplicate pages as needed) for each region and each type of activity separately.

Columns:

(a) Region
(b) Number of offices in the region
(c) Number of employees, agents, and independent contractors in the region (exclude volunteers; count where they work)
(d) Type of activity (grantmaking, fundraising, program services, investments, etc.)
(e) If program services, describe the specific service(s)
(f) Total expenditures and investments in the region (book value at year-end for investments; use financial-statement accounting method)

Special rules for investments:

Aggregate all investments per region on one line (only columns a, d, and f required).
Region = legal domicile of the foreign entity.
Do not report investments indirectly held through a domestic pass-through entity or foreign entities traded on U.S. exchanges.

Expenditures:

Use the same accounting method as your financial statements.
For tax year 2024, indirect costs (e.g., study-abroad program overhead) need not be allocated if not separately tracked.
Funds held in non-interest-bearing foreign accounts for future program services are not investments until spent.

Important: Services provided from the U.S. (e.g., telemedicine) with mixed U.S./foreign recipients are not reported here.

Part II – Grants and Other Assistance to Organizations or Entities Outside the United States

Complete if “Yes” on Form 990, Part IV, line 15 (aggregate > $5,000).

Report each recipient that received more than $5,000 total (one line per recipient; duplicate pages as needed).

Columns (c) through (i) only:

(c) Region (principal foreign office or where funds used)
(d) Purpose of grant (be specific)
(e) Cash grant amount (present value if accrual-basis and future payment)
(f) Manner of cash disbursement (wire, check, etc.)
(g) FMV of noncash assistance
(h) Description of noncash
(i) Valuation method (FMV, appraisal, etc.)

Line 2 — Number of recipients that are recognized charities (U.S. 501(c)(3) equivalent or foreign-country recognized). Line 3 — Number of other recipients.

Report grants regardless of fund source or whether the organization selected the grantee.

Part III – Grants and Other Assistance to Individuals Outside the United States

Complete if “Yes” on Form 990, Part IV, line 16 (aggregate > $5,000).

Report by type of assistance and by region (one line per type/region combination).

Columns:

(a) Type/purpose (e.g., scholarships, medical aid, disaster relief)
(b) Region
(c) Number of recipients (estimate if necessary; explain in Part V)
(d)–(h) Same cash/noncash details as Part II

Direct grants to individuals only. If routed through a foreign organization for specific individuals, use Part II instead.

Part IV – Foreign Forms

All filers must answer lines 1–6 (Yes/No).

These questions flag potential filing requirements for:

Form 926 (transfer of property to foreign corporation)
Form 3520/3520-A (foreign trusts)
Form 5471 (foreign corporations)
Form 8621 (PFIC)
Form 8865 (foreign partnerships)
Form 5713 (boycotting countries)

Do not attach Forms 3520, 3520-A, or 5713 to Form 990.

Part V – Supplemental Information

Use this section to:

Describe monitoring procedures (Part I, line 2)
Explain accounting method for expenditures/grants (Part I line 3f, Part II, Part III)
Provide recipient-count estimates (Part III, column c)
Add any other necessary explanations

Identify the specific part and line for each narrative.

Key Reporting Tips and Common Pitfalls (2024–2025)

Accounting method — Always use the method on your financial statements (cash or accrual). Describe it in Part V.
No double-counting — Offices/employees are reported once in Part I (no duplication across activities).
Investments — Only foreign-domiciled entities; passive or related-organization investments follow the same rules.
No indirect allocation required (if not tracked) — Saves significant time for universities and similar organizations.
U.S.-based services — Telemedicine, internet programs, etc., with foreign recipients are generally not reportable on Schedule F.
Rounding — Amounts may be rounded to the nearest $1,000.

Common mistakes to avoid:

Reporting U.S.-performed services with foreign recipients
Failing to monitor and document grant oversight (required narrative in Part V)
Incorrectly classifying program-related investments vs. regular investments
Missing foreign-form triggers in Part IV

Frequently Asked Questions (FAQs) About Schedule F

Q: Do I report board travel or conference attendance abroad?
A: Yes, in Part I if it meets the activity thresholds.

Q: Are payments to foreign governments reportable?
A: Yes, in Part II (treat as organizations/entities).

Q: What about U.S. citizens living abroad?
A: Report grants to them in Part III (individuals outside the U.S.).

Q: How are program-related investments reported?
A: In Part I (investments column) and potentially as grants if structured that way.

Q: Do I need to list every country?
A: No — use the IRS-defined regions only.

Final Tips for Compliance

Review the full Instructions for Schedule F (Form 990) and the form itself (both revised December 2024).
Maintain robust records of grants, selection criteria, and monitoring.
Coordinate with your tax preparer or accountant early — foreign activities often require additional international tax forms (926, 5471, etc.).
Check IRS.gov/Form990 for any last-minute updates or future developments.

Accurate Schedule F reporting demonstrates good governance and protects your organization’s tax-exempt status. For the official PDF instructions and form, visit:

Instructions: https://www.irs.gov/pub/irs-pdf/i990sf.pdf
Form: https://www.irs.gov/pub/irs-pdf/f990sf.pdf

Always consult a qualified tax professional for your specific situation, as this guide summarizes the official IRS instructions but is not a substitute for personalized advice.

Last updated for tax year 2024 (instructions dated December 2024). Organizations filing in 2025–2026 should confirm the latest version on IRS.gov.