The Rebuttable Presumption of Reasonableness procedures, described in Treasury Regulation Section 53.4958-6(a), were promulgated to help charities avoid overpaying certain individuals and entities (known as disqualified persons) that might be able to exercise influence on the charity’s decision-making. Among those included as disqualified persons (DQPs) are: Directors (board members), trustees, presidents, CEOs, COOs, treasurers, CFOs, […]
excess benefit transaction
Rules Affecting Donor Advised Funds
As stated in our earlier post What Is A Donor Advised Fund?, donor advised funds (DAFs) are subject to several private foundation-like rules that sponsoring organizations may not ordinarily be subject to as public charities. These rules are meant to curb abuses and create more transparency within the DAF community. Prohibited actions include providing personal […]
Nonprofit Laws for Human Resources Managers to Be Aware Of
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 Rules – Part III: Excess Benefit Transactions
The final private benefit rule discussed in this series is the excess benefit transaction rules, codified in section 4958 of the Internal Revenue Code (“IRC”), which are a similar but distinct set of rules from the private inurement doctrine discussed in Part II. Similar to the private inurement doctrine, the excess benefit transactions rules are […]
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