2013 Annual Private Foundation National Conference – Day One

  I'm in beautiful Seattle for the Fourth Annual Private Foundation National Conference. Day One highlights below: Primer on private foundations - Jody Blazek Motivation for starting a private foundation must be charitable Special rules and excise taxes apply to private foundations (n/a to public charities) Self-dealing penalties cannot be abated The statute of limitations on […]

Private Benefit Rules – Part II: Private Inurement Doctrine

The private inurement doctrine is another private benefit rule applicable to public charities. The doctrine comes directly from the language of section 501 of the Internal Revenue Code that only organizations “no part of the net earnings of which inures to the benefit of any private shareholder or individual” may be exempt under section 501(c)(3). A […]

10 Keys to Starting a Nonprofit – Private Foundation

A thoughtful commitment to charitable giving and sufficient funding are baselines for starting a nonprofit private foundation.  But there’s more needed.  Check out the following steps you should take as you move forward: Identify your reasons for starting a new organization.  Are they primarily altruistic or personal? What is it about starting and operating a private […]

Private Letter Rulings and the L3C

2009 is an interesting year for the low-profit limited liability (L3C) concept because it presents the first test of an L3C’s ability to operate under current federal law and IRS regulations. One concern raised is the process by which private foundations will make program-related investments (PRIs) to this new legal entity. A PRI is an […]

“What’s Happening with Charity Reform” – A Presentation by Jane Gallagher of the Council on Foundations

At a January 26, 2006 meeting hosted by the Northern California Planned Giving Council, Janne Gallagher, Vice President and General Counsel of the Council on Foundations, spoke about current legislation affecting the nonprofit sector.  Here are some of the highlights: S 2020:  Senate Tax Reconciliation Bill Proposals to Increase Giving Nonitemizer Charitable Deduction For gifts […]

Value Reduction Rules for a Contribution of Property Under IRC Sec. 170(e)(1)

General rule – the amount of the deduction is determined by the FMV of the property at the time of the contribution.  Reg. Sec. 1.170A-1(c)(1). This amount is reduced by the amount of gain which would not have been long-term capital gain if such property had been sold by the taxpayer at its FMV.  IRC […]

501(c)(3) Organization: Public Charity or Private Foundation

Organizations described in Internal Revenue Code Section* 501(c)(3) fall into two categories:  private foundations and public charities.  Under Section 509, all organizations, domestic or foreign, described in Section 501(c)(3) are private foundations except the types of organizations described in Sections 509(a)(1), (2), (3) or (4).  “Public charities” is the generic term given to the excepted […]

Nonprofit Corporation Legal Audit

All too often, whether a nonprofit corporation is legally compliant in its operations receives attention only after a conflict or issue arises. Instead, a nonprofit corporation can better prevent such conflicts and protect itself through regular legal audits of its corporate governance, federal and state tax exemption, other federal tax law matters, employment and volunteer […]

Best of the Nonprofit Law Blog 2015

An eventful year for the world, the sector, and for us at NEO Law Group. Some of my firsts: participating at Burning Man (one of our favorite clients), rapping at Independent Sector’s Annual Conference, and attending SOCAP. Here is the best stuff from the NEO Law Group over the past year: Blog Posts General Why Are Charities Tax-Exempt? – […]

Highlights from CalNonprofits Annual Policy Convention 2015

Our team had the pleasure of attending the CalNonprofits Annual Policy Convention in Oakland yesterday. It was a nonprofit conference full of practical substance with a strong emphasis on attendees actively engaging their stakeholders and getting them to vote. Keynote The morning keynote address by Dr. Raphael Sonenshein was outstanding. He noted that anger and fear motivated people […]