A Letter to the Reader xv About the Authors xvii Preface xix About the Online Resources xxiii Book Citations xxv Part One: Introduction to the Law Of Tax-exempt Organizations 1 Definition of and Rationales for Tax-Exempt Organizations 3 § 1.1 Definition of Nonprofit Organization 3 § 1.2 Definition of Tax-Exempt Organization 4 § 1.4 Political Philosophy Rationale 4 2 Overview of Nonprofit Sector and Tax-Exempt Organizations 7 § 2.1 Profile of Nonprofit Sector 7 § 2.2 Organization of IRS 9 Part Two: Fundamentals of the Law of Tax-exempt Organizations 3 Tax Exemption: Source and Recognition 15 § 3.2 Recognition of Tax Exemption 15 § 3.3 Recognition of Public Charity, Private Foundation Status 15 § 3.

4 Alternatives to Tax-Exempt Status 16 4 Organizational, Operational, and Related Tests and Doctrines 19 § 4.1 Forms of Tax-Exempt Organizations 19 § 4.3 Organizational Test 19 § 4.4 Primary Purpose Test 21 § 4.5 Operational Test 22 § 4.6 Exclusively Standard 22 § 4.7 Commensurate Test 22 § 4.8 State Action Doctrine 23 § 4.

9 Commerciality Doctrine 23 5 Nonprofit Governance 27 § 5.3 Board Duties and Responsibilities 27 § 5.7 IRS and Governance 29 Part Three: Tax-exempt Charitable Organizations 6 Concept of Charitable 33 § 6.2 Public Policy Doctrine 33 § 6.3 Collateral Concepts 34 7 Charitable Organizations 37 § 7.2 Relief of Distressed 37 § 7.3 Credit Counseling 42 § 7.4 Provision of Housing 42 § 7.

6 Promotion of Health 43 § 7.7 Lessening Burdens of Government 44 § 7.8 Advancement of Education 45 § 7.10 Advancement of Religion 46 § 7.11 Promotion of Social Welfare 46 § 7.14 Fundraising Organizations 46 § 7.15 Instrumentalities of Government 47 § 7.16 Other Categories of Charity 47 § 7.

17 Qualified Opportunity Zones 48 8 Educational Organizations 51 § 8.3 Educational Institutions 51 § 8.4 Instruction of Individuals 52 § 8.5 Instruction of Public 52 9 Scientific Organizations 55 § 9.2 Concept of Research 55 § 9.4 Scientific as Charitable or Educational 56 10 Religious Organizations 57 § 10.1 Constitutional Law Framework 57 § 10.2 Federal Tax Law Definition of Religion 58 § 10.

3 Churches and Similar Institutions 58 § 10.5 Integrated Auxiliaries of Churches 58 § 10.7 Religious Orders 58 11 Other Types of Charitable Organizations 61 § 11.2 Amateur Sports Organizations 61 § 11.8 Donor-Advised Funds 61 § 11.9 Endowment Funds 66 12 Public Charities and Private Foundations 71 § 12.1 Federal Tax Law Definition of Private Foundation 71 § 12.3 Categories of Public Charities 71 § 12.

4 Private Foundation Rules 77 Part Four: other Tax-exempt Organizations 13 Social Welfare Organizations 81 § 13.1 Concept of Social Welfare 81 § 13.3 Conduct of Business 82 § 13.4 Advocacy Organizations 82 14 Business Leagues and Similar Organizations 83 § 14.1 Concept of Business League 83 § 14.2 Disqualifying Activities 84 15 Social Clubs 87 § 15.1 Social Clubs in General 87 § 15.3 Investment Income Limitation 88 § 15.

4 Exceptions to Limitations 88 § 15.5 Taxation of Social Clubs 88 16 Labor, Agricultural, and Horticultural Organizations 91 § 16.1 Labor Organizations 91 § 16.2 Agricultural Organizations 91 17 Political Organizations 93 § 17.4 Public Policy Advocacy Activities 93 § 17.5 Taxation of Political Organizations 93 18 Employee Benefit Funds 95 § 18.3 Voluntary Employees'' Beneficiary Associations 95 19 Other Categories of Tax-Exempt Organizations 97 § 19.4 Fraternal Organizations 97 § 19.

6 Cemetery Companies 98 § 19.9 Insurance Companies and Associations 98 § 19.11 Veterans'' Organizations 98 § 19.12 Farmers'' Cooperatives 98 § 19.14 Homeowners'' Associations 98 § 19.18 Qualified Health Insurance Issuers 98 § 19.19 Qualified Tuition Programs 99 § 19.20 ABLE Programs 99 § 19.

21 Professional Sports Leagues 100 § 19.22 Governmental and Quasi-Governmental Entities 100 § 19.24 Other Categories of Tax-Exempt Organizations 101 Part Five: Principal Exempt Organization Laws 20 Private Inurement and Private Benefit Doctrines 105 § 20.4 Compensation Issues 105 § 20.5 Executive Compensation Tax 106 § 20.6 Other Forms of Private Inurement 111 § 20.10 Private Inurement and Business Leagues 114 § 20.12 Private Inurement and Other Categories of Exempt Organizations 114 § 20.

13 Private Benefit Doctrine 115 21 Intermediate Sanctions 119 § 21.3 Disqualified Persons 119 § 21.4 Transactions Involved 119 § 21.14 Return for Payment of Excise Taxes 120 § 21.16 Interrelationship with Private Inurement Doctrine 121 22 Legislative Activities by Tax-Exempt Organizations 123 § 22.3 Lobbying by Charitable Organizations 123 § 22.6 Legislative Activities of Business Leagues 124 23 Political Campaign Activities by Tax-Exempt Organizations 125 § 23.2 Prohibition on Charitable Organizations 125 § 23.

3 Political Campaign Expenditures and Tax Sanctions 125 § 23.6 Political Activities of Social Welfare Organizations 125 24 Unrelated Business: Basic Rules 127 § 24.1 Introduction to Unrelated Business Rules 127 § 24.2 Definition of Trade or Business 127 § 24.3 Definition of Regularly Carried On 128 § 24.4A Deemed Unrelated Business Income 128 § 24.5 Contemporary Applications of Unrelated Business Rules 128 § 24.9 Unrelated Debt-Financed Income 129 25 Unrelated Business: Modifications, Exceptions, Special Rules, and Taxation 133 § 25.

1 Modifications 133 § 25.2 Exceptions 135 § 25.3 Special Rules 137 § 25.4 Fringe Benefit Rules 137 § 25.5 "Bucketing" Rule 138 § 25.7 Deduction Rules 143 Part Six: Acquisition and Maintenance Of Tax Exemption 26 Exemption Recognition and Notice Processes 149 § 26.1 Recognition Application Procedure 149 § 26.2 Requirements for Charitable Organizations 156 § 26.

3 Nonprivate Foundation Status 156 § 26.4 Requirements for Social Welfare Organizations 157 § 26.8 Requirements for Certain Health Insurance Issuers 157 § 26.10 Rules for other Categories of Organizations 157 § 26.10A Withdrawal of Request for Determination Letter 158 § 26.11 Group Exemption Rules 158 § 26.13 Notice Requirements for Social Welfare Organizations 163 § 26.14 Notice Requirements for Political Organizations 164 § 26.

16 Forfeiture of Tax Exemption 164 § 26.17 Constitutional Law Aspects of Process 165 27 Administrative and Litigation Procedures 167 § 27.1 Administrative Procedures Where Recognition Denied 167 § 27.2 Revocation or Modification of Tax-Exempt Status: Administrative Procedures 169 § 27.3 Retroactive Revocation of Tax-Exempt Status 169 § 27.3A Tax Consequences of Retroactive Revocation of Exempt Status of Public Charities 170 § 27.4 Statute of Limitations Matters 175 § 27.5 Revocation of Tax-Exempt Status: Litigation Procedures 175 § 27.

6 IRS Examination Procedures and Practices 179 § 27.9 IRS Disclosure to State Officials 185 28 Operational Requirements 187 § 28.1 Changes in Operations or Form 187 § 28.2 Annual Reporting Rules 190 § 28.3 Notification Requirement 195 § 28.5 Filing Requirements and Tax-Exempt Status 195 § 28.7 Reporting by Political Organizations 196 § 28.8 Electronic Filing Rules 196 § 28.

9 Unrelated Business Income Tax Returns 197 § 28.10 IRS Document Disclosure Rules 200 § 28.11 Document Disclosure Obligations of Exempt Organizations 200 § 28.14 Insurance Activities 206 § 28.17 Tax-Exempt Organizations and Tax Shelters 207 § 28.17 International Grantmaking Requirements 207 § 28.18 Recordkeeping Requirements 208 28A Tax-Exempt Organizations and Tax Shelters 209 § 28A.1 Concept of Tax Shelter 210 § 28A.

2 Judicial Doctrines 211 § 28A.3 Tax Shelter Law in General 215 § 28A.4 Exempt Organizations and Tax Shelter Penalties 221 § 28A.5 Exempt Organizations'' Involvement in Shelters 223 § 28A.6 GAO Findings and Recommendations 236 § 28A.7 "Dirty Dozen" Listings 238 Part Seven: Interorganizational Structures And Operational Forms 29 Tax-Exempt Organizations and Exempt Subsidiaries 241 § 29.2 Charitable Organizations as Subsidiaries 241 § 29.3 Tax-Exempt Subsidiaries of Charitable Organizations 241 § 29.

7 Revenue From Tax-Exempt Subsidiary 241 30 Tax-Exempt Organizations and for-Profit Subsidiaries 243 § 30.2 Potential of Attribution to Parent 243 31 Tax-Exempt Organizations and Joint Ventures 245 § 31.1 Partnerships and Joint Venture Basics 245 § 31.3 Whole-Entity Joint Ventures 245 § 31.4 Ancillary Joint Ventures 245 32 Tax-Exempt Organizations: Other Operations and Restructuring 247 § 32.1 Mergers 247 § 32.6 Conversion From Exempt to Nonexempt Status 247 <.