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The Law of Tax-Exempt Organizations, 12th Edition

Bruce R. Hopkins

ISBN: 978-1-119-53801-1 March 2019 928 Pages


Tax-exempt law explained, for lawyers and nonlawyers alike

The Law of Tax-Exempt Organizations has, for decades, been the definitive single-volume source of legal information for nonprofit lawyers and managers alike. Author Bruce R. Hopkins is widely recognized as the leading authority on the subject; in this thoroughly revised Twelfth Edition, he provides all the updates you need to stay current on the latest changes to tax code, regulatory, and case law developments. Annual supplements available with the book will ensure that you don’t miss any important updates.

Making solid decisions about the future of any tax-exempt organization requires a firm and up-to-date understanding of the relevant tax and other law. This reference provides guidance on the latest developments in eligibility for tax exemption, the private inurement and private benefit doctrines, nonprofit governance, lobbying, political campaign activity, public charities, private foundations, donor-advised funds, unrelated business activities, reporting, disclosure requirements, and more.

  • Understand the tax code, regulations, and case law pertaining to all categories of tax-exempt organizations
  • Access the nonprofit law standard reference guide, written by the leading legal expert on tax-exempt organizations
  • Prepare yourself to make well-founded strategic decisions about the current and future actions of your organization
  • Review annual supplements that provide plain-English information on changes for each tax year

Written in a practical format that’s accessible to lawyers and non-lawyers alike, The Law of Tax-Exempt Organizations, Twelfth Edition, is a trustworthy resource for anyone involved in advising or managing charitable organizations, social welfare entities, associations, clubs, or any other type of tax-exempt entity.

About the Authors xxiii

Preface xxv

About the Online Resources xxxi

Book Citations xxxiii

Part One: Introduction to The Law of Tax-Exempt Organizations

1 Definition of and Rationales for Tax-Exempt Organizations 3

2 Overview of Nonprofit Sector and Tax-Exempt Organizations 21

Part Two: Fundamentals of The Law of Tax-Exempt Organizations

3 Tax Exemption: Source and Recognition 33

4 Organizational, Operational, and Related Tests and Doctrines 39

5 Nonprofit Governance 87

Part Three: Tax-Exempt Charitable Organizations

6 Concept of Charitable 109

7 Charitable Organizations 139

8 Educational Organizations 207

9 Scientific Organizations 229

10 Religious Organizations 237

11 Other Types of Charitable Organizations 271

12 Public Charities and Private Foundations 285

Part Four: Other Tax-Exempt Organizations

13 Social Welfare Organizations 325

14 Business Leagues and Similar Organizations 337

15 Social Clubs 363

16 Labor, Agricultural, and Horticultural Organizations 379

17 Political Organizations 389

18 Employee Benefit Funds 403

19 Other Categories of Tax-Exempt Organizations 417

Part Five: Principal Exempt Organization Laws

20 Private Inurement and Private Benefit Doctrines 473

21 Intermediate Sanctions 521

22 Legislative Activities by Tax-Exempt Organizations 549

23 Political Campaign Activities by Tax-Exempt Organizations 577

24 Unrelated Business: Basic Rules 601

25 Unrelated Business: Modifications, Exceptions, Special Rules, and Taxation 675

Part Six: Acquisition and Maintenance of Tax Exemption

26 Exemption Recognition and Notice Processes 707

27 Administrative and Litigation Procedures 741

28 Operational Requirements 771

Part Seven: Interorganizational Structures and Operational Forms

29 Tax-Exempt Organizations and Exempt Subsidiaries 815

30 Tax-Exempt Organizations and For-Profit Subsidiaries 827

31 Tax-Exempt Organizations and Joint Ventures 843

32 Tax-Exempt Organizations: Other Operations and Restructuring 857

Index 873

Appendix A - Sources of Tax-Exempt Organizations Law
Appendix B - Internal Revenue Code Sections
Appendix C - 76 Categories of Tax-Exempt Organizations
Table of Cases
Table of IRS Revenue Rulings
Table of IRS Revenue Procedures
Table of IRS Private Determinations Cited in Text
Table of Cases Discussed in Bruce R. Hopkins Nonprofit Counsel
Table of IRS Private Determinations Discussed in Bruce R. Hopkins Nonprofit Counsel