Nonprofit Law Jargon Buster – 501(c)(3) Organizations and the Commerciality...
The well-meaning have been advising exempt organizations to “operate like a business” for years. If the organization is a Section 501(c)(3) organization, operating too much like a business can cost it...
View ArticleNonprofit Jargon Buster – What is a Feeder Organization?
The idea behind Code Section 502’s prohibition on exemption for Feeder Organizations is that one cannot convert a for-profit business into a charity simply by contributing all of the profits to...
View ArticleIs it Time to Form a For-profit Subsidiary?
Tax-exempt Organizations engaging in social enterprise or other active business pursuits often worry that a growing stream of unrelated business income could threaten their tax-exempt status. This...
View ArticleNonprofit Law Jargon Buster – What is Unrelated Business Income?
Even if you end up having to pay some tax on it, having more income is always a good thing. The primary challenge for tax-exempt organizations is ensuring its unrelated business income is maintained...
View ArticleForming a 501(c)(3) Booster Club
Section 501(c)(3) of the Internal Revenue Code allows for tax exemption for organizations organized and operated to foster national or international amateur sports competition so long as no part of the...
View ArticleIRS 2012 Work Plan – What’s New for Nonprofits
Each year, the IRS publishes a report detailing what its focus will be regarding nonprofit organizations and compliance during the year to come. The following are some of the highlights from the 2012...
View ArticleSelf-Declared Exempt Organizations – A Guide to Ensure IRS Compliance
In its 2012 workplan, the IRS announced it will be paying closer attention to self-declared 501(c)(4), (c)(5) and (c)(6) organizations. These groups include social welfare organizations; labor,...
View ArticleIs it time for a Legal Audit?
A legal audit is an overview of an organization’s non-financial compliance, governance and risk management issues. Organizations typically consider a legal audit when new management takes over and...
View ArticleTax Cuts and Jobs Act – Tax Exempt Organization Provisions
he Tax Cuts and Jobs Act (HR 1 ) is on its way to the White House for President Trump’s expected signature before the weekend. The bill is set to bring about widespread changes to the US tax code for...
View ArticleUBIT Blocker Corporations: Safeguarding Tax-exempt Status
A "UBIT blocker" is a for-profit corporation that is wholly owned by a tax-exempt organization, but whose activities are not attributable to its tax-exempt parent. The post UBIT Blocker Corporations:...
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