Preface ix Part I Qualifications of Tax-Exempt Organizations 1 Chapter 1 Distinguishing Characteristics of Tax-Exempt Organizations 3 § 1.4 Role of the Internal Revenue Service 8 § 1.8 Developments Responding to COVID-19 11 Chapter 2 Qualifying Under IRC § 501(c)(3) 19 § 2.2 Operational Test 19 Chapter 3 Religious Organizations 29 § 3.2 Churches 29 Chapter 4 Charitable Organizations 37 § 4.1 Relief of the Poor 37 § 4.3 Lessening the Burdens of Government 39 § 4.5 Advancement of Education and Science 39 § 4.
6 Promotion of Health 42 Chapter 5 Educational, Scientific, and Literary Purposes and Prevention of Cruelty to Children and Animals 43 § 5.1 Educational Purposes 43 Chapter 6 Civic Leagues and Local Associations of Employees: § 501(c)(4) 45 § 6.2 Qualifying and Nonqualifying Civic Organizations 45 § 6.4 Neighborhood and Homeowner''s Associations 48 Chapter 9 Social Clubs: § 501(c)(7) 49 § 9.1 Organizational Requirements and Characteristics 49 § 9.4 Revenue Tests 50 Chapter 10 Instrumentalities of Government and Title-Holding Corporations 53 § 10.6 Requirements for IRC § 501(c)(8) and § (c)(10) 53 Chapter 11 Public Charities 63 § 11.2 "Inherently Public Activity" and Broad Public Support: § 509(a)(1) 63 § 11.
5 Difference Between § 509(a)(1) and § 509(a)(2) 64 § 11.9 Supporting Organization: § 509(a)(3) 64 Part II Standards For Private Foundations 65 Chapter 12 Private Foundations--General Concepts 67 § 12.4 Termination of Private Foundation Status 67 Chapter 13 Excise Tax Based on Investment Income: IRC § 4940 69 § 13.2 Capital Gains 69 Chapter 14 Self-Dealing: IRC § 4941 71 § 14.2 Sale, Exchange, or Lease of Property 71 § 14.5 Transactions That Benefit Disqualified Persons 71 Chapter 15 Minimum Distribution Requirements: IRC § 4942 75 § 15.1 Assets Used to Calculate Minimum Investment Return 75 § 15.2 Measuring Fair Market Value 75 § 15.
4 Qualifying Distributions 78 Chapter 16 Excess Business Holdings and Jeopardizing Investments: IRC §§ 4943 and 4944 83 § 16.1 Excess Business Holdings 83 § 16.2 Jeopardizing Investments 84 Chapter 17 Taxable Expenditures: IRC § 4945 89 § 17.1 Lobbying 89 § 17.3 Grants to Individuals 89 § 17.4 Grants to Public Charities 95 Part III Obtaining and Maintaining Tax-Exempt Status 97 Chapter 18 IRS Filings, Procedures, and Policies 99 § 18.1 IRS Determination Process 102 § 18.2 Annual Filing of Forms 990 112 § 18.
3 Reporting Organizational Changes to the IRS 130 § 18.4 Weathering an IRS Examination 130 Chapter 19 Maintaining Exempt Status 137 § 19.1 Checklists 137 Chapter 20 Private Inurement and Intermediate Sanctions 145 § 20.2 Salaries and Other Compensation 145 § 20.10 Intermediate Sanctions 146 § 20.11 New § 4960 Excise Tax on Excess Compensation 156 Chapter 21 Unrelated Business Income 161 § 21.4 Definition of Trade or Business 167 § 21.8 Unrelated Activities 168 § 21.
10 Income Modifications 168 § 21.11 Calculating and Minimizing Taxable Income 169 Chapter 23 Electioneering and Lobbying 175 § 23.1 Election Campaign Involvement 175 § 23.3 Tax on Political Expenditures 176 Chapter 24 Deductibility and Disclosures 179 § 24.1 Overview of Deductibility 179 § 24.2 The Substantiation and Quid Pro Quo Rules 183 § 24.3 Valuing Donor Benefits 186 Chapter 25 Employment Taxes 187 § 25.1 Distinctions Between Employees and Independent Contractors 187 § 25.
2 Ministers 191 § 25.3 Reporting Requirements 192 Chapter 27 Cryptocurrency 195 § 27.1 What Is Cryptocurrency? 195 § 27.2 What Are the Various Kinds of Cryptocurrency? 195 § 27.3 Should Nonprofits Be Involved in Cryptocurrency? 197 § 27.4 Cryptocurrencies and the Internal Revenue Service 199 Index 211.