IRS Instruction 990 (Schedule I) – Tax-exempt organizations filing Form 990 must report certain domestic grants and assistance on Schedule I (Form 990). The official IRS Instructions for Schedule I (Form 990), revised December 2024 (continuous-use for tax year 2024 and later), provide detailed guidance on reporting grants, cash and noncash assistance to domestic organizations, governments, and individuals in the United States.
Download the latest official instructions here: IRS Instructions for Schedule I (Form 990) PDF.
What Is Schedule I (Form 990) and Why Does It Matter?
Schedule I requires organizations filing Form 990 to disclose grants and other assistance provided during the tax year to:
- Domestic organizations
- Domestic governments
- Domestic individuals
This includes awards, prizes, contributions, scholarships, fellowships, research grants, stipends, cash allocations, and noncash assistance (such as medical supplies, equipment, or educational materials). Activities through disregarded entities or joint ventures treated as partnerships must also be reported.
Key exclusions (do not report on Schedule I):
- Salaries or compensation to employees
- Payments to independent contractors primarily serving the organization’s direct needs (e.g., legal, accounting, or fundraising services)
- Benefits paid by a 501(c)(9) VEBA under section 505 terms
- Grants to non-separate affiliates or payments to the organization’s own U.S. branch offices/employees
Foreign grants/assistance go on Schedule F, not Schedule I.
Proper completion of Schedule I promotes transparency, helps maintain tax-exempt status, and allows the public, donors, and regulators to review grantmaking activities.
Who Must Complete Schedule I?
Complete Schedule I if your organization answers “Yes” on Form 990, Part IV (Checklist of Required Schedules):
- Line 21 → Grants/assistance to domestic organizations or governments (triggers Part I + Part II)
- Line 22 → Grants/assistance to domestic individuals (triggers Part I + Part III)
A “Yes” on line 21 or 22 typically occurs when total grants/assistance exceed $5,000 on Form 990, Part IX, line 1 or 2 (column A).
Threshold rule:
- Part II: Report individual recipients (organizations/governments) receiving more than $5,000 aggregate
- Part III: Aggregate by type of assistance to individuals (if >$5,000 total to individuals)
Key Definitions
- Domestic organization — Corporation, partnership, or trust formed under U.S./state/territory law (with U.S. court supervision and control for trusts)
- Domestic government — State, territory, political subdivision, U.S. government, or D.C. (report grants to U.S. agencies regardless of location)
- Domestic individual — Person residing in the U.S. or territory (includes foreign citizens living here)
- Cash grants — Cash, checks, electronic transfers, etc.
- Noncash assistance — Property valued at fair market value (FMV); use market quotes for securities, appraisals/estimates otherwise
How to Complete Schedule I: Part-by-Part Guide?
Part I – General Information on Grants and Assistance (Required if Part II or III applies)
- Line 1: Yes/No – Does the organization maintain records substantiating amounts, eligibility, and selection criteria?
- Line 2: Describe monitoring procedures (e.g., required reports, site visits) to ensure proper use and prevent diversion. Use Part IV for narrative.
Part II – Grants to Domestic Organizations and Governments (Complete if “Yes” on Form 990 Part IV line 21)
List each recipient receiving >$5,000 aggregate:
- (a) Name and address
- (b) EIN
- (c) IRC section (e.g., 501(c)(3)) or “government”
- (d) Cash grant amount
- (e) Noncash amount
- (f) Valuation method (book, FMV, appraisal, other)
- (g) Description of noncash assistance
- (h) Specific purpose (be detailed, e.g., “Food, shelter, and clothing for wildfire victims” – avoid vague terms like “general support”)
Then:
- Line 2: Total number of 501(c)(3) and government recipients
- Line 3: Total number of other recipients
Parts II can be duplicated if more space is needed.
Part III – Grants to Domestic Individuals (Complete if “Yes” on Form 990 Part IV line 22)
Aggregate by type of assistance:
- (a) Type/purpose (specific)
- (b) Number of recipients (estimate if unknown; explain in Part IV)
- (c) Cash amount
- (d)–(e) Noncash FMV and valuation method
- (f) Description of noncash
Duplicate Part III as needed.
Part IV – Supplemental Information Use for monitoring details (Part I line 2), recipient count explanations, or any additional info. Identify which part/line it refers to.
Here is an example of Schedule I (Form 990) Part I and Part II:
Cash vs. Noncash Reporting and Valuation Tips
- Report cash in cash columns
- Report noncash at fair market value on the date of distribution
- For marketable securities: Use average high/low quoted prices or bona fide bid/ask
- Describe valuation method clearly
Accrual-basis organizations following FASB ASC 958 report present value of promised grants.
Best Practices and Common Pitfalls
- Be specific on purposes → Vague descriptions can trigger IRS scrutiny
- Maintain strong records and monitoring → Document eligibility, selection, and use of funds
- Aggregate correctly per recipient (Part II) or by type (Part III)
- Do not report foreign assistance or internal payments here
- Estimate recipient numbers in Part III if exact count unavailable (explain in Part IV)
- Number duplicate pages
Latest Updates (2025)
The December 2024 revision converted Schedule I to continuous-use status (applies to tax year 2024 and later until superseded). Check IRS.gov/Form990 for any post-publication developments.
Final Tips for Compliance
Schedule I plays a critical role in Form 990 transparency. Nonprofits making significant domestic grants should consult a tax professional, CPA, or attorney familiar with exempt organizations. Always refer to the official IRS instructions and Form 990 instructions for your specific situation.
For the official form: Schedule I (Form 990) PDF
Accurate reporting protects your organization’s tax-exempt status and builds donor trust through clear disclosure of grantmaking activities.
This guide is for informational purposes based on current IRS instructions (Rev. Dec. 2024). Tax rules can change; verify with IRS.gov or a qualified advisor.