Articles
What Do We Mean When We Say "Nonprofit"?
Terminology obscures distinctions that are critical to understanding the rules that apply to organizations
IRS Has Generally Expansive View of 'Charitable'
Despite a lack of definition in Section 501(c)(3) of the Tax Code or the Regulations, the IRS and the courts have used the term “in its generally accepted legal sense”
Charities May Not Confer Private Benefits
An organization will not qualify for charitable exemption if it provides private benefit which is not quantitatively and qualitatively incidental to the public benefit of its activities.
What Constitutes ‘Church’ Eligible for Exemption?
Neither the Tax Code nor the Regulations provides a definition; The IRS uses a 14-point set of guidelines, plus the other limitations of Section 501(c)(3)
IRS Says Charities Must Control Joint Ventures
Nonprofits will lose tax exempt status if they do not have control over whole hospital joint ventures with for-profit organizations
Charities Must Avoid Excess Benefit Transactions
Intermediate Sanctions statute imposes tax on "disqualified persons" who receive more from a transaction with a nonprofit than they give in return.
IRS Proposes New Regulations To Clarify Basis For Revocation of Exemption For Excess Benefits
Service will make judgment call based on “all relevant facts and circumstances” By Eric Vieland Montgomery McCracken
IRS Issues Tips to Agents on Collecting “Automatic” Excess Benefits Taxes from Nonprofits
Benefits not reported as compensation when paid will be treated as excess even though total compensation is reasonable
Nonprofits Often Worry About UBIT
Income generating activity is "unrelated" if it does not "contribute substantially" to the exempt purpose
Group Exemption Can Ease Burden on Affiliates
A “central organization” can add or subtract subordinates annually from the group of organizations it certifies to the IRS as qualified for exempt status
IRS Muses on Internet Issues for Nonprofits
Continuing education text says most current rules will be extended but offers little specific guidance on emerging issues
Title Holding Companies Have Limited Uses
Entities must be formed for the exclusive purpose of acquiring property, collecting income, and remitting it to exempt organizations.
New Form 1023 Adds Many Questions Focusing on Currently Hot Issues
IRS says answers will reduce need for follow-up and speed decisions on applications for exemption
Should Your Organization Elect Under 501(h)?
The "pros" outweigh the "cons" in most cases where a charity engages in significant advocacy.
How to Figure Lobbying Limits Under 501(h)
Public charities may spend up to $1 million on lobbying activity if it does not exceed the percentage limits established by the law
Charities May Not Participate in Elections
Although the Tax Code permits insubstantial lobbying activity, it provides an absolute prohibition on participation in election campaigns
IRS Gives Guidance on Advertisements That Constitute Section 527 Political Activity
Certain nonprofits must either report or pay tax if they go beyond issue advocacy to electioneering
Here's the Background on §527 Political Funds
Congress considers legislation to curb the secrecy that results when nonprofit funds avoid federal election campaign laws
Outflanking Foundations’ Public Charity Defense
Private foundations may make grants to groups which are not public charities if they exercise "expenditure responsibility" in approving, monitoring grants