Tax Planning and Compliance for Tax-Exempt Organizations - Rules, Checklists, Procedures

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.

List of contents

List of Exhibits xiii
 
Preface xvii
 
About the Author xxiii
 
Acknowledgments xxv
 
Part I Qualifications of Tax-Exempt Organizations 1
 
Chapter 1 Distinguishing Characteristics of Tax-Exempt Organizations 3
 
1.1 Differences between Exempt and Nonexempt Organizations 10
 
1.2 Nomenclature 13
 
1.3 Ownership and Control 13
 
1.4 Role of the Internal Revenue Service 14
 
1.5 Suitability as an Exempt Organization 15
 
1.6 Start-Up Tax and Financial Considerations 18
 
1.7 Choosing the Best Form of Organization 22
 
Chapter 2 Qualifying Under IRC
501(c)(3) 27
 
2.1 Organizational Test 29
 
2.2 Operational Test 36
 
Chapter 3 Religious Organizations 59
 
3.1 Types of Religious Organizations 60
 
3.2 Churches 65
 
3.3 Religious Orders 72
 
3.4 Religious and Apostolic Associations 73
 
Chapter 4 Charitable Organizations 75
 
4.1 Relief of the Poor 77
 
4.2 Promotion of Social Welfare 79
 
4.3 Lessening the Burdens of Government 88
 
4.4 Advancement of Religion 91
 
4.5 Advancement of Education and Science 91
 
4.6 Promotion of Health 92
 
4.7 Cooperative Hospital Service Organizations 116
 
Chapter 5 Educational, Scientific, and Literary Purposes and Prevention of Cruelty to Children and Animals 118
 
5.1 Educational Purposes 119
 
5.2 Literary Purposes 134
 
5.3 Scientific Purposes 134
 
5.4 Testing for Public Safety 139
 
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) 140
 
5.6 Prevention of Cruelty to Children or Animals 141
 
Chapter 6 Civic Leagues and Local Associations of Employees:
501(c)(4) 143
 
6.1 Comparison of (c)(3) and (c)(4) Organizations 145
 
6.2 Qualifying and Nonqualifying Civic Organizations 151
 
6.3 Local Associations of Employees 155
 
6.4 Neighborhood and Homeowner's Associations 157
 
6.5 Disclosures of Nondeductibility 160
 
Chapter 7 Labor, Agricultural, and Horticultural Organizations:
501(c)(5) 169
 
7.1 Labor Unions 170
 
7.2 Agricultural Groups 175
 
7.3 Horticultural Groups 178
 
7.4 Disclosures of Nondeductibility 179
 
Chapter 8 Business Leagues:
501(c)(6) 180
 
8.1 Basic Characteristics 181
 
8.2 Meaning of "Common Business Interest" 181
 
8.3 Line of Business 183
 
8.4 Rendering Services for Members 186
 
8.5 Sources of Revenue 192
 
8.6 Membership Categories 193
 
8.7 Member Inurement 194
 
8.8 Chambers of Commerce and Boards of Trade 195
 
8.9 Comparison to
501(c)(5) 195
 
8.10 Recognition of Exempt Status 196
 
8.11 Formation of a Related Charitable Organization 197
 
8.12 Disclosures for Lobbying and Nondeductibility 199
 
Chapter 9 Social Clubs:
501(c)(7) 200
 
9.1 Organizational Requirements and Characteristics 202
 
9.2 Member Inurement Prohibited 205
 
9.3 Membership Requirements 207
 
9.4 Revenue Tests 208
 
9.5 Unrelated Business Income Tax 211
 
9.6 Filing and Disclosure Requirements 217
 
Chapter 10 Instrumentalities of Government and Title-Holding Corporations 218
 
10.1
501(c)(1) Instrumentalities of the United States 218
 
10.2 Governmental Units 219
 
10.3 Qualifying for
501(c)(3) Status 223
 
10.4
501(c)(2) Title-Holding Corporations 235
 
10.5
501(c)(25) Title-Holding Corp

About the author

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.

Summary

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.

Product details

• Authors: Amanda Adams, J Blazek, Jody Blazek, Jody (Blazek Blazek, Jody Adams Blazek, Blazek Jody
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 30.04.2020
• EAN: 9781119540953
• ISBN: 978-1-119-54095-3
• No. of pages: 944
• Series: Wiley Nonprofit Authority
• Subjects: Social sciences, law, business > Business > Management; Business & management, Gemeinnützige Organisation, Wirtschaft u. Management, Gemeinnützige Organisationen / Finanz- u. Rechnungswesen, Non-Profit Organizations / Finance & Accounting