It is no longer true that you can only find out if the president's spouse is an employee if he or she in among the five highest paid non-officers. Refer to Schedule A, Part II line 2D.
The question is:
During the year, has the organization, either directly or indirectly, engaged in any of the following acts with any substantial contributors, trustees, directors, officers, creators, key employees, or MEMBER OF THEIR FAMILIES (emphasis mine), or with any taxable organization with which any such person is affiliated as an officer, director, trustee, majority owner, or principal beneficiary? (If the answer to any question is "Yes," attach a detailed statement explaining the transactions.)
a. Sale, exchange or leasing of property?
b. Lending of money or other extension of credit?
c. Furnishing of goods, services, or facilities?
d. Payment of compensation (or payment or reimbursement of expenses if more than $1,000)?
e. Transfer of any part of its income or assets?
It's really a very thorough, well-written question. There's no way to dodge it with shell corporations or consulting or any of that nonsense.
I'd like to talk more about this but it would get dull for others. For example, in many instances, trustees are also directors, presidents, etc., of local banks, and it's as sure as the sun shines that the college will be doing business with those banks, particularly if the school is in a small town where there are only small, local banks. I presume the "detailed statement" would explain this situation?
The question you quote likely doesn't cover faculty, though, who I don't believe would be defined as officers, directors, or key employees. Also, an individual faculty spouse who got a couple of meals would for sure fall under the $1,000 figure in d. A president's spouse, however, probably wouldn't fall under the $1,000.
