I am assisting a local scholarship organization with their 2020 calendar year tax filing.
In the past they used form 990. However, since less than 33% of revenue comes from public support, I believe they should file 990-PF. (95% of annual revenue comes from investment income.)
I am have not real familiar with 990 PF, but it appears they are subject to NIT and the 5% distribution rule. Also they have until 12/31/21 to pay out additional scholarships to make up for the 2020 year distributions.
Can anyone here confirm or disagree with me?
Thank you for any comments you might have.