organization that files Form 990 to provide certain information on their outstanding liabilities associated with tax-exempt bond issues. Usually, a bond issue associated with an organization will be issued as qualified 501(c)(3) bonds, but all types of tax-exempt bond issues benefiting the organization are to be reported. A qualified 501(c)(3) bond issue consists of bonds the proceeds of which are used by a section 501(c)(3) organization in furtherance of its charitable purpose. Requirements generally applicable to qualified 501(c)(3) bonds under section 145 include the following: All property financed by the bond issue is to be owned by a section 501(c)(3) organization or a state or local governmental unit; and At least 95% of the net proceeds of the bond issue.
