By NEO Law Group
A “charitable” purpose is one of the seven exempt purposes specified in Section 501(c)(3) of the Internal Revenue Code (the “Code”). According to the Treasury Regulations, the term charitable is to be interpreted in its generally accepted legal sense and includes, but is not limited to: Relief of the...
A 501(c)(3) organization may be organized and operated exclusively in furtherance of an educational purpose, but it is unclear to many startups what qualifies as educational. The first place to look is Treasury Regulation Section 1.501(c)(3)-1(d)(3), which provides that educational relates to: (a) The instruction or training of the individual...
Attorneys who are compensated for preparing all or substantially all of the IRS exemption applications (Forms 1023 or 1024) must have a Preparer Tax Identification Number (PTIN) for 2012. Pro bono attorneys who help startup nonprofits are not required to have a PTIN if they prepare such Forms without...
The IRS has released a new form, Form 8940, for 501(c)(3) organizations seeking IRS approvals or determinations regarding the following 9 activities and events: Advance approval of certain set-asides described in IRC section 4942(g)(2) Advance approval of voter registration activities described in IRC section 4945(f) Advance approval of scholarship procedures...
On June 8, 2011, the IRS identified 275,000 nonprofits that had their federal tax-exempt status revoked as a result of failing to satisfy their filing requirement for three consecutive years (read more about that here). Among the huge list of formerly tax-exempt nonprofits are 2,316 nonprofits from the following...
Among the over 275,000 nonprofits that were listed on the IRS automatic revocation list released last week were 1,833 nonprofits with San Francisco addresses. If you recognize any of these organizations as still active, let them know they should immediately take steps to apply for reinstatement. Download San Francisco...
Yesterday, the IRS identified 275,000 nonprofits that had their federal tax-exempt status revoked as a result of failing to satisfy their filing requirement for three consecutive years. This is a result of section 6033(j) of which was added to the Internal Revenue Code (“IRC”) as part of the Pension Protection...
The IRS posted new information on Disaster Relief: Meaning of "Charitable Class" on January 31, 2011. It provides further information about the requirement that a 501(c)(3) organization's operations benefit a charitable class: What is meant by charitable class? A charitable class is a group of individuals that may properly...
The 2010 Form 990, Form 990-EZ, and Schedules are now available on the IRS website here. A chart summarizing the significant changes on the 2010 Form 990 is available here.
The IRS Exempt Organizations Division 2011 for its Fiscal Year 2011 was released last month. The new year is a good time to review the Division’s priorities and how they might impact your organizations. The Division will support five overarching IRS focus areas: Impact of Recent Legislation. The Affordable...