By NEO Law Group
The IRS recently published three Technical Guides on supporting organizations, one for each of the types describing the relationship between the supporting organization and its supported organization(s). A supporting organization (“SO”) is described in Section 509(a)(3) of the Internal Revenue Code as a category of 501(c)(3) organizations that does...
Final regulations for Type I and Type III supporting organizations became effective on October 16, 2023. The document published in the Federal Register with the regulations provides a helpful summary and background of the laws regarding Type I and Type III supporting organizations. In this post, we’ll focus on...
The 2016 Northwest Planned Giving Roundtable Annual Conference in Portland, Oregon on September 16 features several notable speakers including NEO Of Counsel Brigit Kavanagh, who will be co-presenting a session on Why Donor Advised Funds and Supporting Organizations are a Gift Planner’s Friend with Wendy Chou, senior philanthropic advisor with...
I attended the 2009 WCTEO in Los Angeles last Thursday and Friday. It’s always a great conference for professionals in the nonprofit and tax-exempt sector: impressive and knowledgeable speakers, interesting topics, and a chance to meet with peers and people you greatly admire. My only and very...
The issuance of determination letters to organizations seeking "functionally integrated Type III supporting organization" status has been lifted as of September 24, 2007. A Type III supporting organization may receive a determination letter from the IRS if it agrees to meet the criteria set forth in the Advance Notice...
Council on Foundations Vice President and General Counsel Janne Gallagher provided an update on supporting organizations after the Pension Protection Act of 2006 (the "PPA"). As a result of the PPA, private foundations and sponsoring organizations of donor-advised funds must determine: (1) whether a charity to which they are...
Health and Human Services Secretary Mike Leavitt and his relatives claimed millions of dollars in tax deductions through a type of charitable foundation they created that until recently paid out very little in actual charity, tax records show. Instead, much of the foundation’s money has been invested or lent...
The nonpartisan Urban Institute prepared a research report on "The Scope and Activities of 501(c)(3) Supporting Organizations" dated May 31, 2005. The following are excerpts from the report: SUMMARY OF FINDINGS Supporting organizations provide a broad array of services, including grants and other financial benefits, to the organizations they...
IRS: "Some promotors have encouraged individuals to establish and operate supporting organizations described in section 509(a)(3) for their own benefit. there are a variety of methods of abuse, but a common theme is a "charitable" donation of an amount to the supporting organization, and a return...
"Supporting organizations are public charities that carry out their exempt purpose by supporting one or more other exempt organizations, usually public charities. The category can cover many types of entities including university endowment funds and organizations that provide essential services for hospital systems. The classification is important because it...
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