Private Benefit in Tandem Structures

Published on: June 12, 2018 by Gene Takagi

Thanks to our friends at Perlman+Perlman for providing us with permission to re-publish this important post on private benefit issues raised by nonprofit/for-profit tandem structures by one of its partners, Allen Bromberger, whose bio we include at the end of the post. One of the basic principles of tax-exempt law is that charitable and educational […]

Pearson Charitable Foundation to Dissolve

Published on: December 11, 2014December 12, 2014 by Erin Bradrick

A few weeks ago, the Board of Directors of Pearson Charitable Foundation, the Section 501(c)(3) organization affiliated with the educational publishing company Pearson PLC, announced that it will be closing the Foundation at the end of the year after a decade of operations. According to the Foundation’s website, the decision to close the Foundation comes […]

Nonprofit Laws for Human Resources Managers to Be Aware Of

Published on: October 2, 2014October 8, 2014 by Erin Bradrick

It may not be the responsibility of an HR manager in the nonprofit sector to be aware of all of the laws that apply to nonprofits. However, there are some laws that have impact specifically on matters within the purview of the HR department that are worth being aware of. Here, we will briefly discuss […]

Private Benefit Doctrine – A Few Examples

Published on: August 8, 2013February 25, 2014 by Erin Bradrick

The private benefit doctrine is the broadest of the private benefit rules that apply to 501(c)(3) organizations. It generally provides that a 501(c)(3) organization may not confer any benefit, monetary or otherwise, on any individual or entity that is not incidental, quantitatively and qualitatively, to furthering the organization’s exempt purposes. The concern behind the doctrine […]

There is no “I” in Team: Common Private Benefit Problems for Booster Clubs

Published on: August 29, 2012February 28, 2014 by Emily Chan 15 Comments

Booster clubs are commonly used by parents and students to help offset the costs of school or extracurricular activities such as participation in an athletic team, marching band, or academic decathlon team. Booster clubs are often parent controlled and formed; may conduct fundraising through a variety of efforts such as car washes, general solicitations, and corporate sponsorships; and may involve […]

Nonprofit Law Blog