A practical guide to handling the challenges facing tax-exempt organizations, written by a leading authority
Tax Planning and Compliance for Tax-Exempt Organizations, Sixth Edition ensures that you have the practical knowledge to handle critical tax situations. This book provides guidance for the significant issues facing nonprofit organizations. It's an essential guide to navigating the complexities of nonprofit tax rules and regulations. Packed with checklists and suggestions starting with Exhibit 1.1, Organizations Reference Chart and Exhibit 1.2, Suitability for Tax-Exempt Status, this guide helps anyone that creates, advises, or manages a nonprofit organization.
Now, you can better understand the requirements for various categories of tax-exempt organizations: public charities, private foundations, civic associations, business leagues, and social clubs, as well as title-holding companies and governmental entities. You'll discover practical guidance on the issue of potentially owing income tax on revenue-producing enterprises. Clear explanations cover the many exceptions to taxability. Tax issues related to internet activity, advertising, publishing, services, and much more are all addressed in this tax planning guide designed specifically for nonprofit and tax-exempt nonprofit organizations.
* Use extensive quick checklists that cover tax-exempt eligibility, reporting to the IRS, and tax compliance
* Find detailed instructions for submitting a variety of exemption applications and tax forms
* See sample documents, such as organizational bylaws, letters of application, and completed IRS forms
* Refer to tools and practice aids, such as a comparison chart summarizing the differences between public and private charitable organizations
Written by one of the leading authorities in the field, the book also delves into recent tax law changes affecting nonprofits and other tax-exempt organizations. This indispensable guide can offer direction and support if you are challenged to successfully navigate the complex maze of nonprofit tax rules and regulations.
Reihe
Sprache
Verlagsort
Zielgruppe
Maße
Höhe: 259 mm
Breite: 185 mm
Dicke: 43 mm
Gewicht
ISBN-13
978-1-119-54095-3 (9781119540953)
Schweitzer Klassifikation
JODY BLAZEK is a leading authority on accounting practices and planning and compliance for tax-exempt organizations. She is a partner in Blazek & Vetterling, a CPA firm focusing on exempt organizations. She is the author of six books in the Wiley Nonprofit Series, including Financial Planning for Nonprofit Organizations Made Easy and The Tax Law of Private Foundations, Fifth Edition, as well as The Legal Answer Book for Private Foundations, coauthored with Bruce R. Hopkins. She is a frequent speaker at nonprofit symposia.
Autor*in
Blazek, Rogers, and Vetterling
List of Exhibits
Preface
About the Authors
Acknowledgments
Part I: Qualifications of Tax-Exempt Organizations
Chapter 1: Distinguishing Characteristics of Tax-Exempt Organizations
1.1 Differences between Exempt and Nonexempt Organizations
1.2 Nomenclature
1.3 Ownership and Control
1.4 Role of the Internal Revenue Service
1.5 Suitability as an Exempt Organization
1.6 Start-Up Tax and Financial Considerations
1.7 Choosing the Best Form of Organization
Chapter 2: Qualifying Under IRC §501(c)(3)
2.1 Organizational Test
2.2 Operational Test
Chapter 3: Religious Organizations
3.1 Types of Religious Organizations
3.2 Churches
3.3 Religious Orders
3.4 Religious and Apostolic Associations
Chapter 4: Charitable Organizations
4.1 Relief of the Poor
4.2 Promotion of Social Welfare
4.3 Lessening the Burdens of Government
4.4 Advancement of Religion
4.5 Advancement of Education and Science
4.6 Promotion of Health
4.7 Cooperative Hospital Service Organizations
Chapter 5: Educational, Scientific, and Literary Purposes and Prevention of Cruelty to Children and Animals
5.1 Educational Purposes
5.2 Literary Purposes
5.3 Scientific Purposes
5.4 Testing for Public Safety
5.5 Fostering National or International Amateur Sports Competition (But Only If No Part of Its Activities Involves the Provision of Athletic Facilities or Equipment)
5.6 Prevention of Cruelty to Children or Animals
Chapter 6: Civic Leagues and Local Associations of Employees: §501(c)(4)
6.1 Comparison of (c)(3) and (c)(4) Organizations
6.2 Qualifying and Nonqualifying Civic Organizations
6.3 Local Associations of Employees
6.4 Neighborhood and Homeowner's Associations
6.5 Disclosures of Nondeductibility
Chapter 7: Labor, Agricultural, and Horticultural Organizations: §501(c)(5)
7.1 Labor Unions
7.2 Agricultural Groups
7.3 Horticultural Groups
7.4 Disclosures of Nondeductibility
Chapter 8: Business Leagues: §501(c)(6)
8.1 Basic Characteristics
8.2 Meaning of "Common Business Interest"
8.3 Line of Business
8.4 Rendering Services for Members
8.5 Sources of Revenue
8.6 Membership Categories
8.7 Member Inurement
8.8 Chambers of Commerce and Boards of Trade
8.9 Comparison to §501(c)(5)
8.10 Recognition of Exempt Status
8.11 Formation of a Related Charitable Organization
8.12 Disclosures for Lobbying and Nondeductibility
Chapter 9: Social Clubs: §501(C)(7)
9.1 Organizational Requirements and Characteristics
9.2 Member Inurement Prohibited
9.3 Membership Requirements
9.4 Revenue Tests
9.5 Unrelated Business Income Tax
9.6 Filing and Disclosure Requirements
Chapter 10: Instrumentalities of Government and Title-Holding Corporations
10.1 §501(c)(1) Instrumentalities of the United States
10.2 Governmental Units
10.3 Qualifying for §501(c)(3) Status
10.4 §501(c)(2) Title-Holding Corporations
10.5 §501(c)(25) Title-Holding Corporations
Chapter 11: Public Charities
11.1 Distinctions between Public and Private Charities
11.2 "Inherently Public Activity" and Broad Public Support: §509(a)(1)
11.3 Community Foundations
11.4 Service-Providing Organizations: §509(a)(2)
11.5 Difference between §509(a)(1) and §509(a)(2)
11.6 Supporting Organizations: §509(a)(3)
11.7 Testing for Public Safety: §509(a)(4)
Part II: Standards for Private Foundations
Chapter 12: Private Foundations--General Concepts
12.1 Why Private Foundations Are Special
12.2 Special Rules Pertaining to Private Foundations
12.3 Application of Taxes to Certain Nonexempt Trusts
12.4 Termination of Private Foundation Status
Appendix 12-1: Brief Description of Tax Sanctions Applicable to Private Foundations
Excise Tax on Investment Income--§4940 Tax
Chapter 13: Excise Tax Based on Investment Income: IRC §4940
13.1 Formula for Taxable Income
13.2 Capital Gains
13.3 Ponzi Scheme Losses
13.4 Deductions from Gross Investment Income
13.5 Tax-Planning Ideas
13.6 Foreign Foundations
13.7 Timely Payment of Excise Tax
13.8 Exempt Operating Foundations
Chapter 14: Self-Dealing: IRC §4941
14.1 Definition of Self-Dealing
14.2 Sale, Exchange, or Lease of Property
14.3 Loans
14.4 Compensation
14.5 Transactions That Benefit Disqualified Persons
14.6 Payments to Government Officials
14.7 Sharing Space, People, and Expenses
14.8 Indirect Deals
14.9 Property Held by Fiduciaries
14.10 Issues Once Self-Dealing Occurs
Chapter 15: Minimum Distribution Requirements: IRC §4942
15.1 Assets Used to Calculate Minimum Investment Return
15.2 Measuring Fair Market Value
15.3 Distributable Amount
15.4 Qualifying Distributions
15.5 Private Operating Foundations
15.6 Satisfying the Distribution Test
Chapter 16: Excess Business Holdings and Jeopardizing Investments: IRC §§4943 and 4944
16.1 Excess Business Holdings
16.2 Jeopardizing Investments
16.3 Program-Related Investments
16.4 Penalty Taxes
Chapter 17: Taxable Expenditures: IRC §4945
17.1 Lobbying
17.2 Voter Registration Drives
17.3 Grants to Individuals
17.4 Grants to Public Charities
17.5 Grants to Foreign Organizations
17.6 Expenditure Responsibility Grants
17.7 Noncharitable Expenditures
17.8 Excise Taxes Payable
Appendix 17-1: Examples of Emergency, Hardship Grant Application, Church and Foreign Equivalency Grants
Part III: Obtaining and Maintaining Tax-Exempt Status
Chapter 18: IRS Filings, Procedures, and Policies
18.1 IRS Determination Process
18.2 Annual Filing of Forms 990
18.3 Reporting Organizational Changes to the IRS
18.4 Weathering an IRS Examination
18.5 When an Organization Loses Its Tax-Exempt Status
Chapter 19: Maintaining Exempt Status
19.1 Checklists
Chapter 20: Private Inurement and Intermediate Sanctions
20.1 Defining Inurement
20.2 Salaries and Other Compensation
20.3 Finding Salary Statistics
20.4 Housing and Meals
20.5 Purchase, Lease, or Sale of Property or Services
20.6 Loans and Guarantees
20.7 For-Profit to Nonprofit and Vice Versa
20.8 Services Rendered for Individuals
20.9 Joint Ventures
20.10 Intermediate Sanctions
Chapter 21: Unrelated Business Income
21.1 IRS Scrutiny of Unrelated Business Income
21.2 History of the Unrelated Business Income Tax
21.3 Consequences of Receiving UBI
21.4 Definition of Trade or Business
21.5 What Is Unrelated Business Income?
21.6 "Regularly Carried On"
21.7 "Substantially Related"
21.8 Unrelated Activities
21.9 The Exceptions
21.10 Income Modifications
21.11 Calculating and Minimizing Taxable Income
21.12 Debt-Financed Property
21.13 Museums
21.14 Travel Tours
21.15 Publishing
Chapter 22: Relationships with Other Organizations and Businesses
22.1 Creation of (c)(3) by (c)(4), (5), or (6)
22.2 Alliances with Investors
22.3 Creation of a For-Profit Corporate Subsidiary
22.4 Active Business Relationships
Chapter 23: Electioneering and Lobbying
23.1 Election Campaign Involvement
23.2 Voter Education versus Candidate Promotion
23.3 Tax on Political Expenditures
23.4 Lobbying Activity of §501(c)(3) Organizations
23.5 Permissible Amounts of Lobbying
23.6 Lobbying Limits for §501(c)(4), (5), (6), and Other Exempt Organizations
23.7 Advocacy and Nonpartisan Analysis
Chapter 24: Deductibility and Disclosures
24.1 Overview of Deductibility
24.2 The Substantiation and Quid Pro Quo Rules
24.3 Valuing Donor Benefits
24.4 Unrelated Business Income Aspects of Fund-Raising
24.5 State and Local Regulations
Appendix 24-1
Chapter 25: Employment Taxes
25.1 Distinctions Between Employees and Independent Contractors
25.2 Ministers
25.3 Reporting Requirements
Chapter 26: Mergers, Bankruptcies, and Terminations
26.1 Mergers and Other Combinations
26.2 Bankruptcy
26.3 Terminations
Table of Cases
Table of IRS Revenue Rulings
Table of IRS Procedures
Index
