Private Foundation: New Rules Recognizing Mission-Related Investments

On September 15, 2015, the IRS released Notice 2015-62, Investments Made for Charitable Purposes, which may provide comfort to private foundations about making mission-related investments with reasonable business care without violating the jeopardizing investments laws. It is hoped that this guidance will catalyze greater impact investing by foundations using their endowment assets. Mission-Related Investments While a mission-related investment […]

Program-Related Investments

Program-related investments (PRIs) are investments (different from strictly donative grants) made by private foundations in which: The primary purpose is to accomplish one or more of the foundation’s 501(c)(3) exempt purposes (other than testing for public safety), Production of income or appreciation of property is not a significant purpose, and Influencing legislation or engaging in […]

Nonprofit Radio: Earned Income & Unrelated Business Income Tax

This month on Tony Martignetti Nonprofit Radio, Emily and I discussed with Tony the topics of earned income and the unrelated business income tax.  You can listen to a recorded version here or check it out (in a few days) on ITunes. Frequently Asked Questions Note:  To provide a more easily understandable overview, we answered these in general terms […]

IRS Releases “Governance and Related Topics – 501(c)(3) Organizations”

On February 4, 2008, the IRS posted Governance and Related Topics – 501(c)(3) Organizations, a document that updates an earlier IRS discussion draft, Good Governance Practices for 501(c)(3) Organizations.  The policies and practices recommended by the IRS for a charity’s consideration are divided into the following topics: Mission Organizational Documents Governing Body Governance and Management […]

5 Highlights from the ABA Exempt Organizations Committee Meeting 1/29/16

x-144-15 Here are 5 highlights from the American Bar Association Exempt Organizations Committee Meeting held in Los Angeles on January 29, 2016: 1. Form 1023-EZ The IRS Tax Exempt & Governmental Entities Division (TE/GE) disagreed with the critical conclusions made by the National Taxpayer Advocate regarding the level of noncompliance by organizations filing the Form 1023-EZ […]

Top 10 Events in 2015

The past 12 months have featured a number of major events that have affected, and will continue to affect, the nonprofit sector. In 2015, nonprofits mobilized to help with major crises, including the almost 8.0 magnitude earthquake in Nepal, the influx of migrant and refugees seeking new homes, and the continued socio-economic and racial inequalities […]

2012 Western Conference on Tax-Exempt Organizations

  I'll be attending the 2012 Western Conference on Tax Exempt Organizations (WCTEO) co-sponsored by Loyola Law School and the IRS on November 29 and 30. This is the must-attend conference on the West Coast for attorneys and accountants who serve the nonprofit sector. And it's always nice to have the opportunity to meet and […]

Can a Nonprofit Own a For-Profit? Can a For-Profit Own a Nonprofit?

The quick and admittedly general answers (because there are exceptions) are: (1) yes, a nonprofit can own a for-profit; and (2) no, a for-profit cannot own a nonprofit, but it can select all of the nonprofit’s board members and thereby largely control the nonprofit. Can a Nonprofit Own a For-Profit? A nonprofit can own all […]

WCTEO 2018 Highlights

The 2018 Western Conference on Tax Exempt Organizations (WCTEO) is currently taking place in Los Angeles. Here are some selected running highlights. Washington Updates IRS 2018-2019 Priority Guidance Plan – Implementation of the Tax Cuts and Jobs Act (Items 21, 34, 39, 40, 58); Exempt Organizations (pp. 16-17); General Tax Issues (Item 11) Average processing time of exemption […]

Some Highlights from 2018 Georgetown Conference

Erin and I just returned from Georgetown Law School’s Nonprofit Governance and Representing and Managing Tax-Exempt Organizations conferences. We had a great time learning and meeting with some of the brightest and most respected professionals across the country, including several friends. I also had the honor of speaking on a panel discussing strategic advocacy using 501(c)(3) and […]