Public Charities: Supporting Organizations

"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 is one means by which a […]

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 […]

Enterprise Risk Management for Nonprofits: An Introduction

Enterprise risk management (ERM) is a strategic approach to managing risk holistically across the organization and its ecosystem. Under ERM, risks are not merely identified and addressed on a program or business segment level, they are surfaced so they can be assessed, analyzed, and managed with consideration of the entire organization, including its mission, its […]

Highlights from the ABA Exempt Organizations Committee Meeting 1/28/21

Here are some of the highlights from the virtual ABA Exempt Organizations Committee meeting held on January 28, 2021 as part of the ABA 2021 Midyear Tax Meeting. News from the IRS, Treasury, and the Hill Review of COVID-19 Related Legislation: Coronavirus Preparedness and Response Supplemental Appropriations Act – March 6, 2020 Families First Coronavirus […]

UBIT Silos: Proposed Regulations

On April 24, 2020, the IRS and Treasury Department published proposed regulations under the law commonly referred to as the Tax Cuts and Jobs Act (TCJA) that provide guidance on how a tax-exempt organization subject to unrelated business income tax (UBIT) determines if it has more than one unrelated trade or business, and, if it […]

Court Strikes Down Rule Excepting Certain Nonprofits from Donor Disclosures

On July 30, 2019, in Bullock vs. Internal Revenue Service, a federal court held unlawful and set aside Rev. Proc. 2018-38 as adopted by the IRS without complying with applicable notice-and-comment procedures. Rev. Proc. 2018-38 provided that tax-exempt organizations described by section 501(c), other than section 501(c)(3) organizations, will no longer required to report the names […]

Donor-Advised Fund Regulations Step One: Request for Comments

On December 4, 2017, the Internal Revenue Service and U.S. Treasury Department released Notice 2017-73 (Request for Comments on Application of Excise Taxes With Respect to Donor Advised Funds in Certain Situations), seeking comments to help them develop donor-advised fund regulations in three specific areas. Written comments must be submitted by March 5, 2018 and may […]

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 […]

Starting a Related Nonprofit: 7 Initial Considerations

If your for-profit company is interested in starting a related nonprofit, here are 7 initial considerations to take into account before moving forward: 1. Are you properly intentioned? A nonprofit exempt under 501(c)(3) of the Internal Revenue Code must have a charitable, educational, or other 501(c)(3)-consistent purpose and must not be operated for the benefit of […]

‘Tis the Season to Be Compliant: Tips for Organizations on IRS Requirements for Deducting Charitable Contributions

The holiday season is a time of giving. Along with the presents exchanged at gatherings with friends and families, many gifts are made to nonprofits in the closing month of the year at holiday charity galas and auctions, through end-of-the year email and direct mail appeals, and through other fundraising events. For charities, the deductibility […]