How do I need to calculate Part II Line 5?

Purpose: Part II, Line 5 is used to report the total amount of contributions from individuals, trusts, or corporations that exceed the 2% limitation. This limitation helps distinguish broad public support from support concentrated among a few large donors for organizations attempting to qualify under section 170(b)(1)(A)(vi).

The 2% Limitation: The limitation is 2% of the amount reported in Part II, line 11, column (f). Line 11, column (f) represents the organization's total support over the 5-year computation period relevant to Part II.

Donors Subject to the Limitation: The 2% limitation applies to contributions from each individual, trust, or corporation included on Part II, line 1.

To apply this limitation, contributions from a donor and any person or persons standing in a relationship described in sections 4946(a)(1)(C) through (a)(1)(G) (e.g., spouses and certain other family members, entities where ownership or control interests exceed a threshold) are treated as made by one person.

Donors NOT Subject to the Limitation: 
The 2% limitation doesn't apply to contributions from: Governmental units described in section 170(b)(1)(A)(v), Organizations qualifying as publicly supported organizations under section 170(b)(1)(A)(vi) and certain other organizations (churches, educational institutions, hospitals, organizations supporting state colleges/universities, and agricultural research organizations), but only if they also qualify as publicly supported organizations under section 170(b)(1)(A)(vi).

Calculation Steps:
For each individual, trust, or corporation whose total contributions over the 5-year period are subject to the 2% limitation, calculate the limitation amount (2% of the figure on Part II, line 11, column (f)).
Determine if the donor's total contributions (including related persons) exceed this 2% amount.
If they do exceed the limitation, calculate the excess amount (Total Contributions - 2% Limitation).
Sum up the excess amounts for all individuals, trusts, and corporations whose contributions exceeded the 2% limitation.

Reporting on Line 5: The total of these calculated excess amounts is entered on Part II, column (f), line 5. You must provide the amounts for each year in the 5-year period (columns (a) through (e)) and the total in column (f).

Recordkeeping: You must keep a list for your records (but don't file it with Form 990 or 990-EZ as it may be made available for public inspection) showing:

• The name of each donor (other than governmental units and publicly supported organizations) whose total gifts during the years reported exceed the 2% limitation.
• The amount contributed by each such donor in each year.
• The total contributions for the 5-year period from that donor.
• The calculated excess amount for that donor.

In summary, Part II, Line 5 is the cumulative total, across the 5-year period and from all applicable donors, of contributions that surpassed the threshold of 2% of the organization's total support.