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The Law of Tax-Exempt Organizations + Website, 2017 Cumulative Supplement, 11th Edition

The Law of Tax-Exempt Organizations + Website, 2017 Cumulative Supplement, 11th Edition

Bruce R. Hopkins

ISBN: 978-1-119-34518-3

Mar 2017

272 pages

Description

The gold-standard guide to nonprofit law, updated for 2017

The Law of Tax-Exempt Organizations + Website is the definitive reference for leaders and lawyers of tax-exempt organizations. Written by the field's most respected authority, this book provides comprehensive coverage of all currently relevant regulations to help you make informed decisions about the future of your organization. This new 2017 cumulative supplement includes important updates and revisions with respect to tax regulations and court opinions, including expanded discussion on the private benefit doctrine and unrelated business activity, governance, donor-advised funds, and supporting organizations. Accessible language and extensive tabular information allow for easy navigation and quick reference, while the companion website features additional resources that provide additional depth on specific topics.

Tax laws are continuously evolving, and the statutes and regulations for tax-exempt organizations change more quickly than most. This book compiles all of the latest pertinent statutes, regulations, rulings, and court opinions into a single reference that no nonprofit should be without.

  • Get up to date on the latest changes to tax regulations for exempt organizations
  • Learn the new and expanded rules for supporting organizations
  • Review recent IRS rulings, Treasury Department regulations, and court opinions
  • Find answers to the emerging issues surrounding the commerciality doctrine governance, unrelated business, constitutional law issues, and much more

Failure to keep pace with changing tax law can easily result in costly penalties; in the non-profit world, each and every dollar is precious—by staying up to date on tax-exempt regulations, you not only avoid penalties, but you may discover new developments that actually benefit your bottom line. The Law of Tax-Exempt Organizations + Website provides the information you need, and the expert guidance to help you take advantage of every opportunity.

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Preface xi

1 Definition of and Rationales for Tax-Exempt Organizations 1

1.1 Definition of Nonprofit Organization 1

1.2 Definition of Tax-Exempt Organization 2

1.4 Political Philosophy Rationale 2

2 Overview of Nonprofit Sector and Tax-Exempt Organizations 3

2.1 Profile of Nonprofit Sector 3

2.2 Organization of IRS 4

3 Source, Advantages, and Disadvantages of Tax Exemption 7

3.2 Recognition of Tax Exemption 7

4 Organizational, Operational, and Related Tests and Doctrines 9

4.1 Forms of Tax-Exempt Organizations 9

4.2 Governing Instruments 9

4.9 State Action Doctrine 11

4.11 Commerciality Doctrine 11

5 Nonprofit Governance 13

5.7 IRS and Governance 13

6 Concept of Charitable 15

6.2 Public Policy Doctrine 15

6.3 Collateral Concepts 16

7 Charitable Organizations 17

7.4 Provision of Housing 17

7.6 Promotion of Health 17

7.7 Lessening Burdens of Government 18

7.14 Fundraising Organizations 19

7.16 Other Categories of Charity 19

8 Educational Organizations 21

8.1 Federal Tax Law Definition of Educational 21

8.2 Education Contrasted with Propaganda 21

8.3 Educational Institutions 21

9 Scientific Organizations 25

9.1 Federal Tax Law Definition of Science 25

10 Religious Organizations 27

10.1 Constitutional Law Framework 27

10.2 Federal Tax Law Definition of Religion 28

10.3 Churches and Similar Institutions 28

10.5 Conventions or Associations of Churches 28

11 Other Charitable Organizations 29

11.9 Endowment Funds 29

12 Public Charities and Private Foundations 31

12.3 Categories of Public Charities 31

12.4 Private Foundation Rules 32

13 Social Welfare Organizations 33

13.1 Concept of Social Welfare 33

13.2 Requirement of Community 33

14 Business Leagues and Like Organizations 35

14.1 Concept of Business League 35

14.2 Disqualifying Activities 35

15 Social Clubs 37

15.1 Social Clubs in General 37

17 Political Organizations 39

17.6 Taxation of Other Exempt Organizations 39

18 Employee Benefit Funds 41

18.3 Voluntary Employees’ Beneficiary Associations 41

19 Other Categories of Tax-Exempt Organizations 43

19.6 Cemetery Companies 43

19.19 Qualified Tuition Programs 43

19.20 Able Programs 44

19.22 Governmental and Quasi-Governmental Entities 44

20 Private Inurement and Private Benefit 45

20.1 Concept of Private Inurement 45

20.3 Definition of Insider 45

20.4 Compensation Issues 46

20.5 Other Forms of Private Inurement 46

20.12 Private Benefit Doctrine 47

21 Intermediate Sanctions 49

21.9 Rebuttable Presumption of Reasonableness 49

21.10 Excise Tax Regime 49

22 Legislative Activities by Tax-Exempt Organizations 51

22.3 Lobbying by Charitable Organizations 51

22.6 Legislative Activities of Business Leagues 51

23 Political Campaign Activities by Tax-Exempt Organizations 53

23.2 Prohibition on Charitable Organizations 53

23.5 Political Activities of Social Welfare Organizations 54

23.7 Political Activities of Business Leagues 54

24 Unrelated Business: Basic Rules 55

24.1 Introduction to Unrelated Business Rules 55

24.2 Definition of Trade or Business 55

24.3 Definition of Regularly Carried On 56

24.5 Contemporary Applications of Unrelated Business Rules 56

24.9 Unrelated Debt-Financed Income 57

24.10 Tax Structure 58

24.11 Deduction Rules 58

25 Unrelated Business: Modifications, Exceptions, and Special Rules 59

25.1 Modifications 59

25.2 Exceptions 59

25.3 Special Rules 60

26 Exemption Recognition and Notice Processes 61

26.1 Recognition Application Procedure 61

26.2 Requirements for Charitable Organizations 72

26.3A Notice Requirements for Social Welfare Organizations 73

26.6 Requirements for Certain Prepaid Tuition Plans 74

26.9 Rules for Other Organizations 74

26.10 Group Exemption Rules 75

26.14 Forfeiture of Tax Exemption 75

26.14A Modification of Tax Exemption 75

26.15 Constitutional Law Aspects of Process 76

27 Administrative and Litigation Procedures 77

27.1 Administrative Procedures Where Reognition Denied 77

27.2 Revocation or Modification of Tax-Exempt Status: Administrative Procedures 78

27.3 Retroactive Revocation of Tax-Exempt Status 78

27.6 Revocation of Tax-Exempt Status: Litigation Procedures 79

27.7 IRS Examination Procedures and Practices 80

27.10 IRS Disclosure to State Officials 84

28 Operational Requirements 85

28.1 Changes in Operations or Form 85

28.2 Annual Reporting Rules 86

28.3 Annual Information Return 86

28.4 Notification Requirement 86

28.11 Irs Document Disclosure Rules 87

28.12 Document Disclosure Obligations of Exempt Organizations 88

28.18 Tax-Exempt Organizations and Tax Shelters 88

28.19 International Grantmaking Requirements 89

29 Tax-Exempt Organizations and Exempt Subsidiaries 91

29.6 Revenue from Tax-Exempt Subsidiary 91

30 Tax-Exempt Organizations and For-Profit Subsidiaries 93

30.2 Potential of Attribution to Parent 93

30.7 Revenue from For-Profit Subsidiary 93

32 Tax-Exempt Organizations: Other Operations and Restructuring 95

32.7 Single-Member Limited Liability Companies 95

32.10 Conversion from Nonexempt to Exempt Status 95

32.11 Conversion from One Exempt Status to Another 96

APPENDIX A: Sources of Tax-Exempt Organizations Law 97

Table of Tax-Exempt Organizations Law Tax Reform Proposals 103

Cumulative Table of Cases 109

Cumulative Table of IRS Revenue Rulings 139

Cumulative Table of IRS Revenue Procedures 153

Cumulative Table of IRS Private Determinations Cited in Text 155

Cumulative Table of IRS Private Letter Rulings, Technical

Advice Memoranda, and Counsel Memoranda 173

Cumulative Table of Cases Discussed in Bruce R. Hopkins’ Nonprofit Counsel 205

Cumulative Table of IRS Private Determinations Discussed in Bruce R. Hopkins’ Nonprofit Counsel 217

Index 239

Table of Tax-Exempt Organizations Law
Table of Tax-Exempt Organizations Law
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Cumulative Table of Cases
Cumulative Table of Cases
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Cumulative Table of IRS Revenue Rulings
Cumulative Table of IRS Revenue Rulings
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Cumulative Table of IRS Revenue Procedures
Cumulative Table of IRS Revenue Procedures
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Cumulative Table of IRS Private Determinations Cited in Text
Cumulative Table of IRS Private Determinations Cited in Text
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Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and Counsel Memoranda
Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and Counsel Memoranda
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Cumulative Table of Cases Discussed in Bruce R. Hopkins� Nonprofit Counsel
Cumulative Table of Cases Discussed in Bruce R. Hopkins� Nonprofit Counsel
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Cumulative Table of IRS Private Determinations Discussed in Bruce R. Hopkins� Nonprofit Counsel
Cumulative Table of IRS Private Determinations Discussed in Bruce R. Hopkins� Nonprofit Counsel
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