The Law of Tax-Exempt Organizations

Cover
Title Page
Copyright
Contents
About the Author
Preface
About the Online Resources
Book Citations
Part One: Introduction to the Law of Tax-Exempt Organizations
	Chapter 1 Definition of and Rationales for Tax-Exempt Organizations
		§ 1.1 Definition of Nonprofit Organization
			(a) Nonprofit Organization Defined
			(b) Nonprofit Sector
		§ 1.2 Definition of Tax-Exempt Organization
		§ 1.3 Tax-Exempt Organizations Law Philosophy
		§ 1.4 Political Philosophy Rationale
		§ 1.5 Inherent Tax Rationale
		§ 1.6 Other Rationales and Reasons for Exempt Organizations
		§ 1.7 Freedom of Association Doctrine
	Chapter 2 Overview of Nonprofit Sector and Tax-Exempt Organizations
		§ 2.1 Profile of Nonprofit Sector
		§ 2.2 Organization of IRS
			(a) IRS in General
			(b) Tax Exempt and Government Entities Division
		§ 2.3 EO Division's Reports and Work Plans
Part Two: Fundamentals of the Law of Tax-Exempt Organizations
	Chapter 3 Tax Exemption: Source and Recognition
		§ 3.1 Source of Tax Exemption
		§ 3.2 Recognition of Tax Exemption
			(a) General Rules
			(b) Concept of Recognition
		§ 3.3 Recognition of Public Charity, Private Foundation Status
	Chapter 4 Organizational, Operational, and Related Tests and Doctrines
		§ 4.1 Forms of Tax-Exempt Organizations
			(a) General Rules
			(b) Check-the-Box Regulations
				(i) Basic Rules
				(ii) Exempt Organization Rules
		§ 4.2 Governing Instruments
		§ 4.3 Organizational Test
			(a) Statement of Purposes
			(b) Dissolution Requirements
			(c) Mission Statements
			(d) Board Composition
			(e) Rules for Limited Liability Companies
		§ 4.4 Primary Purpose Test
		§ 4.5 Operational Test
			(a) Basic Rules
			(b) Activities Tests
			(c) Quantification of Activities
			(d) Action Organizations
			(e) Aggregate Principle
		§ 4.6 Exclusively Standard
		§ 4.7 Commensurate Test
		§ 4.8 State Action Doctrine
			(a) Doctrine in General
			(b) Doctrine as Applied to Social Clubs
			(c) Doctrine and Other Exempt Organizations
			(d) Statutory Law
		§ 4.9 Commerciality Doctrine
			(a) Summary of Doctrine
			(b) Assumption Underlying Doctrine
			(c) Origin of Doctrine
			(d) Focus on Publishing
			(e) Other Applications of Doctrine
			(f) Elements of Commerciality
			(g) IRS Ruling Policy
			(h) Contemporary Perspective on Doctrine
		§ 4.10 Social Enterprise Developments
			(a) Concept of Social Enterprise
			(b) Program-Related Investments
			(c) Low-Profit Limited Liability Companies
			(d) B Corporations
			(e) Benefit Corporations
			(f) Flexible Purpose Corporations
	Chapter 5 Nonprofit Governance
		§ 5.1 Boards of Directors Basics
		§ 5.2 Board Composition and Tax Law
		§ 5.3 Board Duties and Responsibilities
		§ 5.4 Board Member Liability
		§ 5.5 Sarbanes-Oxley Act
		§ 5.6 Nonprofit Governance Principles
			(a) Governance Philosophy in General
			(b) Inventory of Sets of Principles
				(i) Legal Compliance and Public Disclosure
				(ii) Effective Governance
				(iii) Financial Oversight
				(iv) Responsible Fundraising
		§ 5.7 IRS and Governance
			(a) Matter of Agency Jurisdiction
			(b) IRS Officials' Speeches
			(c) IRS Ruling Policy
			(d) IRS Training Materials
			(e) IRS Governance Check Sheet
Part Three: Tax-Exempt Charitable Organizations
	Chapter 6 Concept of Charitable
		§ 6.1 Federal Tax Law Definition of Charitable
			(a) Popular and Ordinary Definition
			(b) Common Law Definition
			(c) Federal Tax Law Definition
		§ 6.2 Public Policy Doctrine
			(a) General Principles
			(b) Race-Based Discrimination
				(i) Supreme Court Pronouncement
				(ii) IRS Policy
				(iii) Broader Policy Impact
			(c) Gender-Based Discrimination
			(d) Other Forms of Discrimination
			(e) Affirmative Action Principles
		§ 6.3 Collateral Concepts
			(a) Requirement of Charitable Class
			(b) Means-to-End/Instrumentality Rule
			(c) Charity as Evolutionary Concept
			(d) Motive
			(e) Private Use
			(f) Cy Pres Doctrine
			(g) Fluid Recovery Principles
			(h) Charging of Fees
			(i) Illegal Activities
		§ 6.4 What Tax Exemption Does Not Create
	Chapter 7 Charitable Organizations
		§ 7.1 Relief of Poor
		§ 7.2 Relief of Distressed
			(a) General Principles
			(b) Disaster Relief Programs
		§ 7.3 Credit Counseling
			(a) Initial Evolution of Exemption Law
			(b) Statutory Criteria for Exemption
		§ 7.4 Provision of Housing
		§ 7.5 Down Payment Assistance
		§ 7.6 Promotion of Health
			(a) Hospital Law in General
			(b) Additional Statutory Requirements for Hospitals
				(i) Hospitals Subject to Requirements
				(ii) Community Health Needs Assessments
				(iii) Financial Assistance Policy
				(iv) Emergency Medical Care Policy
				(v) Limitation on Charges
				(vi) Billing and Collection
				(vii) Mandatory IRS Review of Tax Exemption
				(viii) Effective Dates
			(c) Hospital Clinical Departments and Funds
			(d) Medical Research Organizations
			(e) Homes for Aged
			(f) Health Maintenance Organizations
			(g) Integrated Delivery Systems
			(h) Peer Review Organizations
			(i) Fitness Centers
			(j) Other Health Care Organizations
			(k) Regional Health Information Organizations
			(l) Health Insurance Exchanges
			(m) Accountable Care Organizations
				(i) ACOs in General
				(ii) Tax-Exempt Organizations Issues
		§ 7.7 Lessening Burdens of Government
		§ 7.8 Advancement of Education
		§ 7.9 Advancement of Science
		§ 7.10 Advancement of Religion
		§ 7.11 Promotion of Social Welfare
		§ 7.12 Promotion of Arts
		§ 7.13 Consortia
			(a) General Principles
			(b) Adjunct Theory
			(c) Cooperative Arrangements
		§ 7.14 Fundraising Organizations
			(a) General Principles
			(b) Application of Commensurate Test
			(c) Other Exemption Issues
		§ 7.15 Instrumentalities of Government
		§ 7.16 Other Categories of Charity
			(a) Environmental Protection
			(b) Promotion of Patriotism
			(c) Promotion of Sports
			(d) Public Interest Law
			(e) Local Economic Development
			(f) Other Charitable Organizations
	Chapter 8 Educational Organizations
		§ 8.1 Federal Tax Law Definition of Educational
		§ 8.2 Education Contrasted with Propaganda
		§ 8.3 Educational Institutions
			(a) Schools, Colleges, and Universities
			(b) Museums and Similar Organizations
			(c) Other Educational Organizations
		§ 8.4 Instruction of Individuals
		§ 8.5 Instruction of Public
		§ 8.6 Educational Activity as Commercial Business
		§ 8.7 Educational Activity as Private Benefit Function
		§ 8.8 Child Care Organizations
	Chapter 9 Scientific Organizations
		§ 9.1 Federal Tax Law Definition of Science
		§ 9.2 Concept of Research
		§ 9.3 Requirement of Public Interest
		§ 9.4 Scientific as Charitable or Educational
		§ 9.5 Technology Transfer
	Chapter 10 Religious Organizations
		§ 10.1 Constitutional Law Framework
			(a) General Constitutional Law Principles
				(i) Free Exercise Clause
				(ii) Establishment Clause
				(iii) Religious Freedom Restoration Act
				(iv) Free Speech Considerations
			(b) Constitutional Law and Tax Exemption
			(c) Internal Revenue Code Provisions
		§ 10.2 Federal Tax Law Definition of Religion
			(a) Religion Defined
			(b) Bases for Denial of Tax Exemption
			(c) Abuse of Tax Exemption
		§ 10.3 Churches and Similar Institutions
			(a) General Principles
			(b) Associational Test
			(c) Principle of Respect for Autonomy
		§ 10.4 Conventions or Associations of Churches
		§ 10.5 Integrated Auxiliaries of Churches
		§ 10.6 Mission Societies
		§ 10.7 Religious Orders
		§ 10.8 Apostolic Organizations
		§ 10.9 Communal Groups
		§ 10.10 Retreat Facilities
	Chapter 11 Other Types of Charitable Organizations
		§ 11.1 Cruelty Prevention Organizations
		§ 11.2 Amateur Sports Organizations
		§ 11.3 Public Safety Testing Organizations
		§ 11.4 Cooperative Hospital Service Organizations
		§ 11.5 Cooperative Educational Service Organizations
		§ 11.6 Charitable Risk Pools
		§ 11.7 Literary Organizations
		§ 11.8 Donor-Advised Funds
			(a) Donor-Advised Fund Basics
			(b) Statutory Criteria
		§ 11.9 Endowment Funds
			(a) Definition of Endowment Fund
			(b) College and University Endowment Tax
			(c) Form 990 Reporting
	Chapter 12 Public Charities and Private Foundations
		§ 12.1 Federal Tax Law Definition of Private Foundation
			(a) Private Foundation Defined
			(b) Private Operating Foundations
			(c) Exempt Operating Foundations
			(d) Conduit Foundations
			(e) Common Fund Foundations
			(f) Other Types of Foundations
			(g) Organizational Test
		§ 12.2 Disqualified Persons
			(a) Substantial Contributors
			(b) Foundation Managers
			(c) Twenty Percent Owners
			(d) Family Members
			(e) Corporations
			(f) Partnerships
			(g) Trusts or Estates
			(h) Private Foundations
			(i) Governmental Officials
		§ 12.3 Categories of Public Charities
			(a) Institutions
			(b) Publicly Supported Charities
				(i) Donative Publicly Supported Charities in General
				(ii) Facts-and-Circumstances Test
				(iii) Community Foundations
				(iv) Service Provider Publicly Supported Organizations
				(v) Public Colleges and Universities Support Foundations
			(c) Supporting Organizations
			(d) Public Safety Testing Organizations
		§ 12.4 Private Foundation Rules
			(a) Self-Dealing
			(b) Mandatory Distributions
			(c) Excess Business Holdings
			(d) Jeopardizing Investments
			(e) Taxable Expenditures
			(f) Other Provisions
Part Four: Other Tax-Exempt Organizations
	Chapter 13 Social Welfare Organizations
		§ 13.1 Concept of Social Welfare
			(a) General Rules
			(b) Benefits to Members
		§ 13.2 Requirement of Community
			(a) Community and Condominium Associations
			(b) Broader Requirement of Community
		§ 13.3 Conduct of Business
		§ 13.4 Advocacy Organizations
			(a) Legislative Activities
			(b) Political Campaign Activities
	Chapter 14 Business Leagues and Similar Organizations
		§ 14.1 Concept of Business League
			(a) General Principles
				(i) Tax Law Characteristics
				(ii) Members
				(iii) Dues
			(b) Meaning of Business
			(c) Line-of-Business Requirement
				(i) Concept of Line of Business
				(ii) Supreme Court Pronouncement
				(iii) Other Developments
			(d) Membership Services
			(e) Professional Organizations
			(f) Business Leagues in General
			(g) Certification Programs
		§ 14.2 Disqualifying Activities
			(a) Line-of-Business Requirement
			(b) For-Profit Business Activities
				(i) General Rule
				(ii) Incidental Business Activity
			(c) Performance of Particular Services
				(i) Particular Services
				(ii) General Rule
				(iii) Particular Services outside Membership
				(iv) Unrelated Business Activities
			(d) Private Inurement
			(e) Commerciality
		§ 14.3 Chambers of Commerce
		§ 14.4 Boards of Trade
		§ 14.5 Real Estate Boards
	Chapter 15 Social Clubs
		§ 15.1 Social Clubs in General
			(a) Rationale for Tax Exemption
			(b) Club Functions
			(c) Other Tax Law Matters
		§ 15.2 Public Use Limitation
		§ 15.3 Investment Income Limitation
		§ 15.4 Exceptions to Limitations
		§ 15.5 Taxation of Social Clubs
		§ 15.6 Sale of Club Assets
	Chapter 16 Labor, Agricultural, and Horticultural Organizations
		§ 16.1 Labor Organizations
		§ 16.2 Agricultural Organizations
		§ 16.3 Horticultural Organizations
	Chapter 17 Political Organizations
		§ 17.1 Political Organizations in General
			(a) Political Organizations Defined
			(b) Newsletter Funds
		§ 17.2 Organizational Test
		§ 17.3 Operational Test
		§ 17.4 Public Policy Advocacy Activities
		§ 17.5 Taxation of Political Organizations
		§ 17.6 Taxation of Other Exempt Organizations
		§ 17.7 Avoiding Political Organizations Tax
		§ 17.8 Independent Political Action Committees
	Chapter 18 Employee Benefit Funds
		§ 18.1 Overview
		§ 18.2 Special Rules for Welfare Benefit Funds
			(a) Nondiscrimination Requirements
			(b) Tax-Exempt Status
		§ 18.3 Voluntary Employees' Beneficiary Associations
		§ 18.4 Supplemental Unemployment Benefit Trusts
		§ 18.5 Black Lung Benefits Trusts
		§ 18.6 Retirement Plan Trust Funds
		§ 18.7 Other Benefit Funds
	Chapter 19 Other Categories of Tax-Exempt Organizations
		§ 19.1 Instrumentalities of the United States
		§ 19.2 Title-Holding Corporations
			(a) Single-Parent Organizations
			(b) Multiple-Parent Organizations
		§ 19.3 Local Associations of Employees
		§ 19.4 Fraternal Organizations
			(a) Fraternal Beneficiary Societies
			(b) Domestic Fraternal Societies
		§ 19.5 Benevolent or Mutual Organizations
			(a) Local Life Insurance Associations
			(b) Mutual Organizations
		§ 19.6 Cemetery Companies
		§ 19.7 Credit Unions
		§ 19.8 Mutual Reserve Funds
		§ 19.9 Insurance Companies and Associations
		§ 19.10 Crop Operations Finance Corporations
		§ 19.11 Veterans' Organizations
			(a) General Rules
			(b) Pre-1880 Organizations
		§ 19.12 Farmers' Cooperatives
		§ 19.13 Shipowners' Protection and Indemnity Associations
		§ 19.14 Homeowners' Associations
		§ 19.15 High-Risk Individuals' Health Care Coverage Organizations
		§ 19.16 Workers' Compensation Reinsurance Organizations
			(a) State-Sponsored Organizations
			(b) Certain Insurance Companies
		§ 19.17 National Railroad Retirement Investment Trust
		§ 19.18 Qualified Health Insurance Issuers
		§ 19.19 Qualified Tuition Programs
			(a) State-Sponsored Programs
			(b) Educational Institution–Sponsored Programs
			(c) Other Rules
		§ 19.20 ABLE Programs
		§ 19.21 Professional Sports Leagues
		§ 19.22 Governmental and Quasi-Governmental Entities
			(a) Intergovernmental Immunity
			(b) Income Exclusion Rule
			(c) Integral Parts of States
			(d) State Instrumentalities
			(e) Related Considerations
		§ 19.23 Native American Tribes
		§ 19.24 Other Categories of Tax-Exempt Organizations
		§ 19.25 Nonexempt Membership Organizations
Part five: Principal Exempt Organization Laws
	Chapter 20 Private Inurement and Private Benefit Doctrines
		§ 20.1 Concept of Private Inurement
		§ 20.2 Definition of Net Earnings
		§ 20.3 Definition of Insider
		§ 20.4 Compensation Issues
			(a) Meaning of Compensation
			(b) Determining Reasonableness of Compensation
			(c) Percentage-Based Compensation
			(d) Multiple Payors
			(e) Role of Board
			(f) Board Member Compensation
			(g) Actuality of Services Rendered
			(h) Illegal Payments
		§ 20.5 Executive Compensation Tax
		§ 20.6 Other Forms of Private Inurement
			(a) Rental Arrangements
			(b) Lending Arrangements
			(c) Sales of Assets
			(d) Capital Improvements
			(e) Equity Distributions
			(f) Assumptions of Liability
			(g) Employee Benefits
			(h) Tax Avoidance Schemes
			(i) Services Rendered
			(j) Business Referral Operations
			(k) Provision of Goods or Refreshments
			(l) Retained Interests
			(m) Embezzlements
			(n) Other Forms of Inurement
		§ 20.7 Per Se Private Inurement
		§ 20.8 Incidental Private Inurement
		§ 20.9 Private Inurement and Social Welfare Organizations
		§ 20.10 Private Inurement and Business Leagues
		§ 20.11 Private Inurement and Social Clubs
		§ 20.12 Private Inurement and Other Categories of Exempt Organizations
		§ 20.13 Private Benefit Doctrine
			(a) General Rules
			(b) Incidental Private Benefit
			(c) Joint Venture Law
			(d) Perspective
	Chapter 21 Intermediate Sanctions
		§ 21.1 Concept of Intermediate Sanctions
		§ 21.2 Tax-Exempt Organizations Involved
		§ 21.3 Disqualified Persons
		§ 21.4 Transactions Involved
			(a) General Rules
			(b) Revenue-Sharing Arrangements
			(c) Automatic Excess Benefit Transactions in General
			(d) Automatic Excess Benefit Transactions and Supporting Organizations
			(e) Automatic Excess Benefit Transactions and Donor-Advised Funds
			(f) Scholarships and Similar Grants
		§ 21.5 Controlled Entities
		§ 21.6 Intermediaries
		§ 21.7 For the Use of Transactions
		§ 21.8 Initial Contract Exception
		§ 21.9 Rebuttable Presumption of Reasonableness
			(a) Independent Body
			(b) Appropriate Data
			(c) Adequate Documentation
		§ 21.10 Excise Tax Regime
		§ 21.11 Correction Requirement
		§ 21.12 Definitions
			(a) Participation
			(b) Knowing
			(c) Reliance on Professional Advice
			(d) Willful
			(e) Occurrence
		§ 21.13 Indemnification and Insurance
		§ 21.14 Return for Payment of Excise Taxes
		§ 21.15 Statute of Limitations
		§ 21.16 Interrelationship with Private Inurement Doctrine
	Chapter 22 Legislative Activities by Tax-Exempt Organizations
		§ 22.1 Legislative Activities Law for Exempt Organizations—Introduction
		§ 22.2 Meaning of Legislation
			(a) Substantial Part Test
			(b) Expenditure Test
			(c) Associations' Dues Deductibility Test
		§ 22.3 Lobbying by Charitable Organizations
			(a) Legislative History
			(b) Concept of Lobbying
			(c) Substantial Part Test
				(i) Action Organizations
				(ii) Allowable Lobbying
				(iii) Exceptions
				(iv) Reporting Rules
			(d) Expenditure Test
				(i) Influencing Legislation
				(ii) Allocation Rules
				(iii) Allowable Lobbying
				(iv) Non-Earmarked Grants
				(v) Exceptions
				(vi) Election of Test
				(vii) Evaluating Election
				(viii) Affiliated Organizations
				(ix) Record-Keeping Requirements
				(x) Reporting Rules
		§ 22.4 Lobbying Expenditures and Tax Sanctions
		§ 22.5 Legislative Activities of Social Welfare Organizations
		§ 22.6 Legislative Activities of Business Leagues
			(a) Business Expense Deduction Disallowance Rules
			(b) Flow-Through Rules
			(c) Proxy Tax Rules
		§ 22.7 Legislative Activities of Other Tax-Exempt Organizations
		§ 22.8 Internet Communications
		§ 22.9 Constitutional Law Framework
	Chapter 23 Political Campaign Activities by Tax-Exempt Organizations
		§ 23.1 Political Campaign Activities by Charitable Organizations—Introduction
		§ 23.2 Prohibition on Charitable Organizations
			(a) Scope of the Proscription
			(b) Participation or Intervention
				(i) Terminology
				(ii) Political Campaign Intervention
				(iii) Ascertaining Intervention
				(iv) Summary of Law
				(v) Candidate Appearances
				(vi) Individual Participation
			(c) Voter Education Activities
			(d) Requirement of Candidate
			(e) Requirement of Campaign
			(f) Requirement of Public Office
			(g) Activist Organizations
		§ 23.3 Political Campaign Expenditures and Tax Sanctions
		§ 23.4 Taxation of Political Expenditures
		§ 23.5 “Religious Liberty” Executive Order
		§ 23.6 Political Activities of Social Welfare Organizations
			(a) Allowable Campaign Activity
			(b) Political Campaign Activities
			(c) Political Activities
		§ 23.7 Political Activities by Labor Organizations
		§ 23.8 Political Activities by Business Leagues
		§ 23.9 Political Activities by Other Categories of Exempt Organizations
		§ 23.10 Advocacy Communications
		§ 23.11 Internet Communications
	Chapter 24 Unrelated Business: Basic Rules
		§ 24.1 Introduction to Unrelated Business Rules
		§ 24.2 Definition of Trade or Business
			(a) General Principles
			(b) Requirement of Profit Motive
			(c) Competition
			(d) Commerciality
			(e) Charging of Fees
			(f) Fragmentation Rule
			(g) Nonbusiness Activities
			(h) Real Estate Development Activities
			(i) Occasional Sales
			(j) Concept of Investment Plus
		§ 24.3 Definition of Regularly Carried On
			(a) General Principles
			(b) Determining Regularity
			(c) Preparatory Time
		§ 24.4 Definition of Substantially Related
			(a) General Principles
			(b) Size and Extent Test
			(c) Same State Rule
			(d) Dual Use Rule
			(e) Exploitation Rule
			(f) Related Business Activities
			(g) Unrelated Business Activities
		§ 24.5 Contemporary Applications of Unrelated Business Rules
			(a) Educational Institutions
			(b) Health Care Organizations
				(i) Various Related Businesses
				(ii) Sales of Pharmaceuticals
				(iii) Testing Services
				(iv) Fitness Centers
				(v) Physical Rehabilitation Programs
				(vi) Administrative Services
				(vii) Other Health Care Activities
			(c) Museums
			(d) Social Welfare Organizations
			(e) Business Leagues
				(i) Services to Members
				(ii) Insurance Programs
				(iii) Associate Member Dues
				(iv) Other Association Business Activities
			(f) Labor and Agricultural Organizations
			(g) Credit Unions
			(h) Advertising
				(i) Concept of Advertising
				(ii) General Rules
				(iii) Concept of Related Advertising
			(i) Fundraising
				(i) Fundraising as Unrelated Business
				(ii) Affinity Card Programs
				(iii) Sales of Mailing Lists
				(iv) Application of Exceptions
				(v) Tax Planning Consulting
			(j) Travel Tour Activities
			(k) Provision of Services
			(l) Sales of Merchandise
			(m) Share-Crop Leasing
			(n) Retirement Plan Reversions
			(o) Internet Communications
			(p) Debt Management Plan Services
			(q) Other Organizations' Exempt Functions
		§ 24.6 Corporate Sponsorships
		§ 24.7 Partnership Rules
		§ 24.8 Commercial-Type Insurance
		§ 24.9 Unrelated Debt-Financed Income
			(a) General Principles
			(b) Debt-Financed Property
			(c) Acquisition Indebtedness
			(d) Exempt Function Borrowing
	Chapter 25 Unrelated Business: Modifications, Exceptions, Special Rules, and Taxation
		§ 25.1 Modifications
			(a) Passive Income in General
			(b) Dividends
			(c) Interest
			(d) Securities Lending Income
			(e) Certain Consideration
			(f) Annuities
			(g) Royalties
			(h) Rent
				(i) General Rules
				(ii) Passive Rent Test
				(iii) Related Rental Activities
			(i) Other Investment Income
			(j) Capital Gains
			(k) Loan Commitment Fees
			(l) Research Income
			(m) Electric Companies' Member Income
			(n) Foreign Source Income
			(o) Brownfield Sites Gain
			(p) Religious Order Rule
		§ 25.2 Exceptions
			(a) Volunteer-Conducted Businesses
			(b) Convenience Businesses
			(c) Sales of Gift Items
			(d) Businesses of Employees' Associations
			(e) Entertainment Activities
			(f) Trade Shows
			(g) Hospital Services
			(h) Gambling
			(i) Pole Rentals
			(j) Low-Cost Articles
			(k) Mailing Lists
			(l) Associate Member Dues
			(m) Small Business Corporations Rules
		§ 25.3 Special Rules
		§ 25.4 Fringe Benefit Rules
		§ 25.5 “Bucketing” Rule
		§ 25.6 Tax Structure
		§ 25.7 Deduction Rules
			(a) General Rules
			(b) Charitable Deduction
			(c) Specific Deduction
			(d) Net Operating Losses
Part Six: Acquisition and Maintenance of Tax Exemption
	Chapter 26 Exemption Recognition and Notice Processes
		§ 26.1 Recognition Application Procedure
			(a) Introduction
			(b) General Procedures
				(i) Required Information
				(ii) Other Procedural Elements
				(iii) Preparation of Application
			(c) Completed Application
			(d) User Fees
			(e) Penalties for Perjury
			(f) Interactive Form 1023
			(g) Streamlined Application
				(i) Overview
				(ii) Exceptions
		§ 26.2 Requirements for Charitable Organizations
			(a) General Rules
			(b) Exceptions
			(c) Limited Liability Companies
		§ 26.3 Nonprivate Foundation Status
			(a) Notice Requirement
			(b) Rules for New Publicly Supported Charities
		§ 26.4 Requirements for Social Welfare Organizations
		§ 26.5 Requirements for Certain Credit Counseling Organizations
		§ 26.6 Requirements for Certain Employee Benefit Organizations
		§ 26.7 Requirements for Certain Prepaid Tuition Plans
		§ 26.8 Requirements for Certain Health Insurance Issuers
		§ 26.9 Requirement for ABLE Programs
		§ 26.10 Rules for Other Categories of Organizations
		§ 26.11 Group Exemption Rules
		§ 26.12 Suspension of Tax Exemption
		§ 26.13 Notice Requirements for Social Welfare Organizations
		§ 26.14 Notice Requirements for Political Organizations
		§ 26.15 Integral Part Doctrine
			(a) Affiliated Organizations
			(b) Divisions
		§ 26.16 Forfeiture of Tax Exemption
		§ 26.17 Constitutional Law Aspects of Process
	Chapter 27 Administrative and Litigation Procedures
		§ 27.1 Administrative Procedures Where Recognition Denied
			(a) Requests Receiving Appeals Office Consideration
			(b) Matters Not Receiving Appeals Office Consideration
		§ 27.2 Revocation or Modification of Tax-Exempt Status: Administrative Procedures
		§ 27.3 Retroactive Revocation of Tax-Exempt Status
		§ 27.4 Statute of Limitations Matters
		§ 27.5 Revocation of Tax-Exempt Status: Litigation Procedures
			(a) General Rules
			(b) Declaratory Judgment Rules
				(i) General Requirements
				(ii) Exhaustion of Administrative Remedies
				(iii) Deductibility of Contributions
				(iv) Administrative Record
			(c) Other Approaches
		§ 27.6 IRS Examination Procedures and Practices
			(a) General IRS Exempt Organizations Audit Procedures and Practices
				(i) General Procedures
				(ii) Types of Examinations
			(b) IRS Exempt Organizations Examination Guidelines
			(c) Church Audits
		§ 27.7 Compliance Checks
		§ 27.8 Fast-Track Case Settlement Program
		§ 27.9 IRS Disclosure to State Officials
	Chapter 28 Operational Requirements
		§ 28.1 Changes in Operations or Form
			(a) Changes in Operations
			(b) Changes in Form
		§ 28.2 Annual Reporting Rules
			(a) Overview of Annual Information Returns
				(i) Form 990
				(ii) Form 990-EZ
				(iii) Form 990-PF
				(iv) Filing Dates
				(v) Penalties
				(vi) Assessments
				(vii) Miscellaneous
			(b) Exceptions to Reporting Requirements
				(i) Churches and Other Religious Organizations
				(ii) Small Organizations
				(iii) Other Organizations
			(c) Limited Liability Companies
			(d) Group Returns
		§ 28.3 Notification Requirement
		§ 28.4 ABLE Program Reports
		§ 28.5 Filing Requirements and Tax-Exempt Status
		§ 28.6 Charitable Organizations Listing Reliance Rules
			(a) IRS's Searchable Databases
			(b) Charitable Status Reliance Rules
			(c) Safe Harbor Rules as to Public Charity Status
		§ 28.7 Reporting by Political Organizations
			(a) General Rules
			(b) Filing Dates
		§ 28.8 Electronic Filing Rules
			(a) Modernized e-File System
			(b) Mandatory Electronic Filing
			(c) Waivers
		§ 28.9 Unrelated Business Income Tax Returns
		§ 28.10 IRS Document Disclosure Rules
			(a) Federal Tax Law Disclosure Requirements
				(i) General Rules
				(ii) Exempt Organizations Documents
			(b) Freedom of Information Act
		§ 28.11 Document Disclosure Obligations of Exempt Organizations
			(a) General Rules
			(b) Rules as to Inspection
			(c) Rules as to Copies
			(d) Failure to Comply
			(e) Widely Available Exception
			(f) Harassment Campaign Exception
			(g) Penalties
			(h) Political Organizations
			(i) Donor Information Disclosure
		§ 28.12 Information or Services Disclosure
		§ 28.13 Fundraising Disclosure
		§ 28.14 Insurance Activities
			(a) General Rules
			(b) Commercial-Type Insurance Rules
			(c) Charitable Split-Dollar Insurance Plans
		§ 28.15 Feeder Organizations
		§ 28.16 Tax-Exempt Entity Leasing Rules
		§ 28.17 Tax-Exempt Organizations and Tax Shelters
		§ 28.18 Recordkeeping Requirements
Part Seven: Interorganizational Structures and Operational Forms
	Chapter 29 Tax-Exempt Organizations and Exempt Subsidiaries
		§ 29.1 Subsidiaries Basics
		§ 29.2 Charitable Organizations as Subsidiaries
			(a) Introduction
			(b) Subsidiaries of Domestic Charitable Organizations
			(c) Subsidiaries of Foreign Charitable Organizations
		§ 29.3 Tax-Exempt Subsidiaries of Charitable Organizations
		§ 29.4 Other Combinations of Tax-Exempt Organizations
		§ 29.5 Potential of Attribution
		§ 29.6 Contributions and Other Payments
		§ 29.7 Revenue from Tax-Exempt Subsidiary
	Chapter 30 Tax-Exempt Organizations and For-Profit Subsidiaries
		§ 30.1 For-Profit Subsidiaries in General
			(a) Establishing For-Profit Subsidiary
			(b) Choice of Form
			(c) Control Element
		§ 30.2 Potential of Attribution to Parent
		§ 30.3 Financial Considerations
			(a) Capitalization
			(b) Compensation
			(c) Sharing of Resources
		§ 30.4 Asset Accumulations
		§ 30.5 Subsidiaries in Partnerships
		§ 30.6 Revenue from For-Profit Subsidiary
			(a) Income Flows to Parent
			(b) Tax Treatment of Income from Subsidiary
			(c) Tax Treatment of Revenue Received by Taxable Subsidiary
			(d) Special Rule
		§ 30.7 Liquidations
	Chapter 31 Tax-Exempt Organizations and Joint Ventures
		§ 31.1 Partnerships and Joint Ventures Basics
			(a) Partnerships
			(b) Joint Ventures
			(c) Law-Imposed Joint Ventures
		§ 31.2 Public Charities as General Partners
		§ 31.3 Whole-Entity Joint Ventures
			(a) Overview of Law
			(b) IRS Guidance
		§ 31.4 Ancillary Joint Ventures
		§ 31.5 Low-Income Housing Ventures
		§ 31.6 Information Reporting
	Chapter 32 Tax-Exempt Organizations: Other Operations and Restructuring
		§ 32.1 Mergers
		§ 32.2 Reorganizations
		§ 32.3 Multiple-Member Limited Liability Companies
		§ 32.4 Single-Member Limited Liability Companies
		§ 32.5 Choice of Entity Considerations
		§ 32.6 Conversion from Exempt to Nonexempt Status
			(a) State Law
			(b) Federal Tax Law
		§ 32.7 Conversion from Nonexempt to Exempt Status
			(a) State Law
			(b) Federal Tax Law
			(c) Gain or Loss Recognition
		§ 32.8 Conversion from One Exempt Status to Another
Index
EULA