Note: References are to book section numbers (§), complete chapters (Ch.), and/or exhibits (Exh.). A zero section reference (e.g. §1.0) indicates unnumbered introductory material at the beginning of a chapter.

• A
• Abraham Lincoln Opportunity Foundation, §5.1
• Accountability
  • expenditure responsibility grants, §17.6
  • grant documentation for, §17.4(a), Exh. 17.2, 4, 5

• Accounting
  • Checklist for Tax and Accounting Issues for Grants, Exh. 19.12
  • different methods used for, §13.4(d)
  • reporting fiscal or accounting year changes, §18.3(b)

• Accounting methods
  • accrual, §18.3(c)
  • cash method, §13.4(d)
  • changing tax year or, §13.4(d)
  • reporting a change in, §18.3(c)

• Acquisition indebtedness
  • used to calculate minimum investment return, §15.1(f)
  • used to calculate taxable income, §§13.1(h), 21.12(c)

• Action organizations
  • description of, §2.2(g)
  • qualified charitable organizations cannot be, §4.0

• Active business relationships
  • criteria for approval, §22.4(a)
  • description, §22.4
  • factors to evaluate reasonableness, §22.4(b)
  • net profit agreements, §22.4(c)

• Actual use method (social club field), §9.5(e)
• Administrative expenses distribution, §15.4(f)
• Advances on compensation, §14.4(d)
• Advertisements
  • exempt-status loss due to political, §23.1(b)
  • income from, §§21.8(d), 21.15(a), Exh. 21.5
  • to influence legislation, §§23.4(e)

• Advertising revenue
  • calculating the taxable portion of, Exh. 21.5
  • publishing organizations, §21.15(a)
  • unrelated business, §21.8(d)

• Advised funds of community funds, §11.3(a)
• Advocacy
  • Big Mama Rag, Inc. (1980) decision on, §5.1
  • methodology test for impermissible, §5.1
  • nonprofit advocacy and nonpartisan analysis, §23.7
  • See also Lobbying

• Affiliates
  • of (c)(3) and (c)(4) organizations, §6.1(d)
  • Form 990 to be filed by, §18.2(f)
  • form of relationship between organizations, §22.1(a)
  • how bankruptcy affects the, §26.2(c)
  • how category of public charity impacts relationship, §22.1(b)
  • services provided to an, §21.8(b)
  • of state or political subdivision, §10.3(g)
  • See also Relationships

• Affordable Care Act
  • economic substance doctrine adopted as part of, §2.2(i)
  • health-care system changes brought by, §4.6
  • requirements for nonprofit hospitals in the, §4.6(j)

• “Affordable Care Act: While Much Has Been Accomplished, the Exempt of Additional Controls Needed to Implement Tax Exempt Hospital Provisions Is Uncertain,” §6.4(j)
• Agency endowments (community funds), §11.3(a)
• Agency theory, §21.8(h)
• Aggregation of debt-financed income, §21.11
• Agricultural groups
  • IRC description of, Exh. 1.1
  • IRS Exempt Organizations Handbook information on, §7.2(a)
  • qualifying under §§501(c)(5), §7.2
  • services to members, §7.2(b)
  • special exception, §7.2(c)
  • types of crops, §7.2(a)
  • when to consider changing to §501(c)(3), §7.2

• Air travel reimbursement, Exh. 14.2
• Alliance for Justice, §6.1(d)
• Alliances with investors
  • description and purpose of, §22.2
  • exempt organization as general partner, §22.2(a)
  • ongoing evolution of standards, §22.2(b)
  • trouble-free joint ventures, §22.2(c)
  • unrelated business income aspect of, §22.2(d)

• Allocating expenses test, §21.11
• Allocation of expenses, §21.11
• Alternative investments
  • prudent vs. jeopardizing, §16.2(b)
  • valuation of, §15.2(d)

• Alternative minimum tax, §21.11
• Amateur sports competition, §§5.5, 6.2, Exh. 1.1
• Amazon.com, §21.8(j)
• Amended Form 990 returns, §18.3(d)
• American Academy of Family Physician, §8.4(b)
• American Association of Retired Persons (AARP), §22.3(a)
• American Atheists, §3.2(a)
• American Automobile Association (AAA), §8.2
• American Bar Association, §8.2
• American Bar Association Exempt Organization Committee, §§20.7, 23.4
• American Birth Control League, §5.1(k)
• American Campaign Academy case, §2.1(e)
• American College of Physicians case, §21.8(d)
• American Institute of Certified Public Accountants (AICPA)
  • allow reliance on legal counsel and CPAs, §16.4(b)
  • formed around “common business interests,” §8.2
  • suggestions for allocation expenses, §21.11
  • suggestions regarding allocation of “indirect expenses, §21.11

• American Institute of Steel Construction, §140
• American Kennel Club, §8.2
• The American Law Institute (ALI) Restatement of the Law, Trusts: Prudent Investor Rule (1972), §16.2(a)
• American Medical Association, §8.2
• American Postal Workers Union (APWU) case, §7.1(e)
• American Red Cross, §11.2
• American Stock Exchange, §15.2(d)
• Amounts generally billed (AGB) to patients, §4.6(j)
• Animal protection organizations, §5.1(c), Exh. 1.1
• Annual Form 990. See IRS Form 990
• Annual Tax Compliance Checklist for §501(c)(3)Public Charity, Exh. 19.1
• Annual Tax Compliance Checklist for §527 Political Organizations, Exh. 19.7
• Annual Tax Compliance Checklist for Private Foundations (PFs), Exh. 19.5
• Annual Tax Compliance Checklist for Private Foundation––Short Form, Exh. 19.6
• Annual Tax Compliance Checklist––Unrelated Business Income, Exh. 19.8
• Antiabortion league, §6.2
• Antiwar protest group, §6.2
• Apostolic organizations, §3.4 Exh. 1.1
• Appreciation of assets, §13.2(a)
• Arkansas State Police Association (ASPA), §21.8(h)
• The Arkansas Trooper (magazine), §21.8(h)
• Ark Environmental Foundation U.S., Inc., §2.2(e)
• Armed forces members, Exh. 1.1
• Art
  • art object sales in museums, §5.1(i)
  • museum original works of, §21.13(b)

• Assets
  • appreciation of, §13.2(a)
  • donated, §§13.2(a), 16.2(c)
  • excess business holdings of private foundations, §16.1
  • exempt function, §13.2
  • exempt organization termination and disposal of, §26.3
  • measuring fair market value, §15.2
  • partial liquidation or major disposition of, §26(b)
  • PF expenditure documentation policy, Exh. 14.3
  • and SO stock/non-liquid investments that do not produce income, §11.6
  • transactions that benefit disqualified persons, §14.5
  • transfer from private foundation to public charities, §12.4(c)
  • used to calculate minimum investment return, §15.1
  • See also Property; Real estate

• Asset test of POFs, §15.5(d)
• Association of Small Foundations, §13.0
• Athletic events
  • broadcasting, §21.7(c)
  • donor tickets purchase rights, §24.2(b)
  • school entertainment and, §21.7(c)

• Auctions (charity), §24.2(c)
• Audits. See IRS examination
• Automobile expenditure policy of PFs, Exh. 14.3
• Awards, scholarships, fellowships, §§2.2(a), 17.3(b)–(f), 24.1(a), 25.1(e)

• B
• Bankruptcy
  • of exempt organizations (EOs), §26.2
  • filing requirements, §26.2(c)
  • how tax status is affected by a, §26.2(a)
  • revocation of exempt status after, §26.2(b)

• Bankruptcy Code, §26.2
• Banks fees as self-dealing, §14.4(e)
• Benevolent life insurance associations, Exh. 1.1
• Better Business Bureau
  • monitoring levels of fundraising costs, §24.5
  • tax case of, §§3.1(b), 4.2(b)

• Big Mama Rag, Inc. case (1980), §5.1
• Bingo games, §§21.8(j), 21.9(d), 24.4, 25.3(f)
• Bitcoin valuation, §15.2(e)
• Black lung benefit trusts, Exh. 1.1
• Blockage discounts valuation method, §15.2(d)
• “Blocker corporations,” §13.1(h)
• Blood banks, §4.6(a)
• Boards of trade
  • comparison to §501(c)(5) organizations, §8.9
  • disclosures for lobbying and nondeductibility, §8.12
  • distinguishable from business league, §8.8
  • formation of related charitable organizations, §8.11
  • recognition of exempt status, §8.10

• Boat donations, §24.1(b)
• Bob Joes University Museum, §§5.1(b), 5.1(h)
• Bob Jones University v. United States, §§3.0, 5.1(h)
• Bork, Robert, §23.4(a)
• Branch Ministries case, §23.1(b)
• Bridge clubs, §6.2
• Broadcasting athletic events, §21.7(c)
• Burdens of government, §4.3
• Business activities
  • operational test on, §2.2(e)
  • restrictions on title-holding corporations (THCs), §10.4(a)
  • subject to UBIT, §4.5
  • See also Unrelated business activities

• Business “donations,” §24.1(c)
• Business enterprises
  • corporate holdings of, §16.1(b)
  • definition of, §16.1(a)
  • functionally related, §16.1(a)
  • passive holding company, §16.1(a)
  • See also Corporations

• Business league member services
  • avoiding the exploitation rule, §8.4(c)
  • description of, §8.4
  • disqualifying services to individual members, §8.4(b)
  • services benefiting the industry, §8.4(a)

• Business leagues
  • basic characteristics of, §8.1
  • dealer associations, §8.3(b)
  • disclosures for lobbying and nondeductibility, §8.12
  • federal recognition of exempt status, §8.10(a)
  • formation of related charitable organization, §8.11
  • hobby or recreational groups, §8.3(c)
  • IRC description of, Exh. 1.1
  • line of business, §8.3
  • meaning of “common business interest,” §8.2
  • member inurement, §8.7
  • membership categories, §8.6
  • rendering services for members, §8.4
  • sources of revenue, §8.5
  • state exemptions, §8.10(a)

• Bus line, §6.2
• Bylaws of corporations, §1.7(a)

• C
• (c)(3) organizations. See Exempt organizations (EOs)
• California's Nonprofit Integrity Act (2005), §24.5
• Call to action, §17.1
• Campaign contributions. See Political expenditures
• Candidates
  • qualifying campaign group in favor or opposition to, §23.3(a)
  • voter education versus promotion of, §23.2
  • See also Electioneering

• Capital and nondeductiables, §21.11
• Capital gains
  • exempt function assets, §13.2
  • formula for calculating sale of property, §21.12(d)
  • nontaxed, §13.2(c)
  • Pension Protection Act of 2006 on taxing, §13.2
  • questionable types of gain, §13.2(b)
  • short-term, §21.10(b)
  • tax basis for calculating, §13.2(a)
  • 30 percent limit for property subject to, §24.1(b)
  • as unrelated business income modification, §21.10(b)

• Capital losses
  • formula for calculating sale of property, §21.12(d)
  • ordinary losses rather than, §13.3(a)
  • Ponzi scheme losses, §13.3
  • tax basis for, §13.5(a)

• Caracci case, §§20.5, 20.10(d)
• Car donations, §24.1(b)
• Carryover basis
  • donation, §24.1(b)
  • of mergers, §26.1(a)

• Cash method of accounting, §13.4(d)
• Cemetery companies, Exh. 1.1
• Certain amateur sports, §§5.5, 6.2, Exh. 1.1
• Chambers of commerce
  • description and activities of, §8.8, Exh. 1.1
  • junior, §6.2
  • recognition of exempt status, §8.10

• Change of accounting period, §18.3(b)
• Charitable annuity, §24.1(d)
• Charitable class (operational test), §2.2(a)
• Charitable contributions
  • contribution defined in §170(a), §24.1(a)
  • IRC §170 definition of, §24.1
  • IRS Publication 561 Determining the Value of Donated Property on, §§14.3(a), 24.1(a)
  • See also Donations

• Charitable hospital joint ventures, §4.6(c)
• Charitable lead trust, §24.1(d)
• Charitable organization purposes
  • advancement of education and science, §4.5
  • advancement of religion, §4.4
  • description of, §4.0
  • lessening the burdens of government, §4.3
  • promotion of health, §4.6
  • promotion of social welfare, §4.2
  • relief of the poor, §4.1

• Charitable organizations
  • alliances with investors, §22.2
  • creation of (c)(3) by (c)(4), (5), or (6), §22.1
  • description and purposes of, §4.0, Exh. 1.1
  • disqualified if an action organization, §4.0
  • distinguishing between public and private, §2.0
  • donation collection system of, §22.1(c)
  • dormancy of, §2.2(a)
  • form of relationship between different, §22.1(a)
  • grants to and from (c)(3), §22.1(d)
  • international activities of, §2.2(i)
  • IRC definition of, §5.1, Exh. 1.1
  • IRS Publication 3833 Disaster Relief: Providing Assistance Through Charitable Organizations, §2.2(a)
  • limitation on political activities by, §§5.1, 6.2(a), Ch.23
  • scientific research conducted by, §5.4
  • substantial-part test of nonelecting, §§23.4(a), 23.5(a)
  • triumvirate of, §22.2(e)
  • See also Exempt organizations (E0s); Non–§501(c)(3) organizations

• Charitable pledges made by DPs, §14.5(d)
• Charitable remainder annuity trust (CRAT), §24.1(d)
• Charitable remainder trust, §24.1(d)
• Charitable remainder unitrust (CRUT), §24.1(d)
• Charitable risk pools, Exh. 1.1
• Charitable set-asides (social clubs), §9.5(g)
• Charitable trusts, under §4947(a)(1), §1.7(b)
• Charities Aid Foundation of America (CAF America), §17.5(c)
• Charities. See Public charities
• Charity, Advocacy, and the Law, §23.4(b)
• Charity auctions, §24.2(c)
• Charity care, §§4.6(a), 4.6(d)
• Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations, Exh. 19.11
• Checklist for Tax and Accounting Issues for Grants, Exh. 19.12
• Checklist for Website Exemption Issues, Exh. 19.10
• Child-care organizations, §5.1(c), Exh. 1.1
• Children
  • child-care organizations, §5.1(c), Exh. 1.1
  • Prevention of cruelty to children or animal organizations, §5.6, Exh. 1.1

• Christian Coalition, §§6.1(c), 23.1(b)
• Church at Pierce Creek case, §23.1(b)
• Churches
  • Church of Satan, §§3.0, 3.1(b)
  • Church of Scientology, §3.2(d)
  • Colleges and Universities Compliance Project Final Report report (2013) on examination of, §18.4(e)
  • conventions and auxiliaries, §3.2(c)
  • definition and 14 attributes of a, §3.2(b)
  • description, function, and activities of, §3.2
  • donor's intangible religious benefits from donations to, §§24.2(c), 24.3(b)
  • IRS EO CPE Text on, §3.2(b)
  • IRS examination protection, §3.2(d)
  • IRS Publication 1828 Tax Guide for Churches and Religious Organizations, §§3.2, 23.1(c)
  • IRS Tax Guide for Churches and Religious Organizations, §25.2(b)
  • IRS Technical Advice Memo distinguishing between religious organization and, §3.2(b)
  • no need to file for exemption, §18.1(c)
  • public charity status issues, §§3.2(a), 17.4(b)
  • The Satanic Temple, §§3.0, 3.1(b)
  • self-dealing and PF payment of membership fees, §14.5(c)
  • special aspects of a, §3.2(a)
  • See also Ministers; Religious organizations

• Circulation income, §21.15(c)
• Civic organizations
  • §501(c)(4) exclusively for promoting social welfare, §6.0
  • comparison of 501(c)(3) and 501(c)(4), §6.1
  • disclosures of nondeductibility, §6.5
  • limitation on involvement with political candidates, §6.2(a)
  • neighborhood associations, §6.4
  • qualifying and nonqualifying, §6.2
  • revenue for a civic league requirements, §6.4
  • See also Homeowner's associations

• Civil leagues, IRC description of, Exh. 1.1
• Classification of the organization changes, §18.5
• Clergy. See Ministers
• The Cleveland Foundation, §11.3
• Clinics
  • medical, §4.6(a)
  • physician, §4.6(d)

• Collectibles valuation, §15.2(e)
• College and university compliance check (IRS), §5.1(a)
• Colleges and universities
  • educational purpose of, §5.1(a)
  • IRS college and university compliance check sent to, §5.1(a)
  • “noneducational” activities of, §5.1(a)
  • “Qualified State Tuition Programs”, §5.1(a)
  • race discrimination prohibition, §5.1(b)
  • research income of, §21.10(f)
  • scholarship and fellowship grants, §§2.2(a), 17.3(b)–(f), 24.1(a), 25.1(e)
  • student housing, §5.1(a)
  • tax on private, §13.8
  • travel tours by, §21.14

• Colleges and Universities Compliance Project Final Report report (2013), §18.4(e)
• College-sponsored events, §21.7(c)
• Colorado State Chiropractic Society decision, §2.1(a)
• Columbia Park and Recreation Association (CPRA), §6.1(e)
• Commensurate test, §2.2(d)
• Commercial hospital joint ventures, §4.6(c)
• Commerciality test, §21.4(b)
• Commerciality Test Checklist, Exh. 21.1
• Commercial publication programs, §21.15(d)
• Commercial-quality publications (CQPs), §24.3(a)
• Commingling by §501(c)(7) exempt organizations, §2.2(j)
• Commissions compensation, §14.4(c)
• Commodity trading programs, §16.2(b)
• “Common business interests,” §8.2
• Common trust funds, §15.2(e)
• Communication
  • grassroots lobbying, §17.1
  • lobbying form of mass media, §23.4(e)
  • of a political nature sent directly to members, §23.4(e)
  • using electronic tools for educational purposes, §5.1(l)

• Community
  • §501(c)(4) organizations must serve a, §6.4
  • IRS definition of, §6.4

• Community benefit standards, §4.6(a)
• Community Board and Conflicts of Interest Policy (IRS), §4.6(b)
• Community foundation grants, §15.4(c)
• Community foundations (CFs)
  • component-part test of, §11.3(b)
  • description and examples of, §11.3
  • donor designations versus donor directions, §11.3(c)
  • grants by, §15.4(c)
  • impact of Pension Protection Act of 2006 (PPA) on, §11.3(e)
  • Kansas City Royals baseball team owned by, §§2.2, 4.3
  • public support test of, §11.3(d)
  • single-entity test for, §11.3(a)

• Community health needs assessment (CHNA), §6.4(j)
• Company scholarship plans
  • description and criteria of, §17.3(e)
  • seeking IRS approval of, §17.3(f), Exh. 17.1

• Compensation
  • advances on, §14.4(d)
  • Colleges and Universities Compliance Project Final Report report (2013) on, §18.4(e)
  • commissions, §14.4(c)
  • Compensation of Disqualified Person Checklist, Exh. 14.1
  • compensatory payments, §17.3(b)
  • determination process and information on, §18.2(b), Exh. 18.1A
  • expense reimbursement policy for private foundations, Exh. 14.2
  • Form 990 Part VII and Schedule J on, §18.2(b), Exh. 18.1A
  • housing and meals, §20.4
  • Kermit Fischer case on reasonable, §14.4(a)
  • lending money to or borrowing from an insider form of, §20.6
  • reasonable salaries and other, §20.2
  • revenue-sharing arrangements, §20.10(e)
  • sample contractor engagement letter on, Exh. 25.3
  • self-dealing, §14.4
  • setting salary, §20.3
  • SOs and unreasonable compensation or, §11.6
  • to SOs from private foundations, §11.6(c)
  • subject to intermediate sanctions imposed on SOs, §11.6(g)
  • undoing the seal-dealing transaction, §14.10(a)

• Compensation/salary setting
  • avoiding conflict of interest, §20.3(b)
  • finding salary statistics, §20.3(a)
  • incentive compensation, §20.3(c)

• Compensatory payments, §17.3(b)
• Component-part test, §11.3(b)
• Conduit foundations, description of, §12.2(a)
• Conference registration fees, Exh. 14.2
• Congressional Joint Committee of Taxation's ( JCT), §13.2
• Conscientious objectors, §25.2(c)
• Constructive ownership
  • excess business holdings and, §16.1(d)
  • material restrictions, §16.1(d)
  • power of appointment, §16.1(d)

• Control
  • control test [IRC §509(a)(3)(B)], §11.6
  • control test within meaning of §512(b)(13), §21.11
  • PF's thirty-five percent ownership with third-party, §16.1(b)

• Controlled foreign corporations (CFCs), §§13.1(h), 18.2(g)
• Control test [IRC §509(a)(3)(B)], §11.6
• Conventions
  • reimbursement of expenses, Exh. 14.2
  • as unrelated business activity exception, §21.9(e)

• Cooperative educational service organizations, §5.1(d)
• Cooperative hospital service organizations, §4.7, Exh. 1.1
• Cooperative organizations to finance crop operations, Exh. 1.1
• Cooperative service organizations
  • of operating educational organizations, Exh. 1.1
  • unrelated business income (UBI) for, §21.8(b)

• Co-op health insurance issuers, Exh. 1.1
• Co-owned property
  • IRS Priority Guidance Plan 2018–2019 on, §14.2(d)
  • partnerships as alternative to, §14.2(e)
  • self-dealing related to, §14.2(d)

• Copyright ownership, §5.3(a)
• Corporate subsidiaries
  • creation of a for-profit, §22.3
  • payments to, §21.10(e)

• Corporation for Open Systems International, §8.3(a)
• Corporations
  • “blocker”, §13.1(h)
  • comparison of Form 990–T reporting for trust vs., Exh. 21.6
  • controlled foreign corporations (CFCs), §§13.1(h), 18.2(g)
  • creating a, §1.7(a)
  • donations by, §24.1(c)
  • economic development corporations (EDCs), §4.2(c)
  • IRC description of, Exh. 1.1
  • PF's limited to two percent of voting stock in, §16.1(b)
  • PF's thirty-five percent ownership with third-party control, §16.1(b)
  • unrelated income modification of S corps, §21.10(g)
  • See also Business enterprises

• Cotton Bowl Association case, §21.8(e)
• Council of Foundations' 1986 Foundation Management Report, §14.4(a)
• Council on Foundations, §13.0
• Credit counseling organizations (CCOs), §4.2(b)
• Credit repair agencies, §4.1
• Crowdfunding, §24.0
• Cryptocurrencies valuation, §15.2(e)

• D
• Day care centers, §5.1(c)
• Dealer associations, §8.3(b)
• Debt
  • acquisition indebtedness, §§13.1(h), 15.1(f), 21.12(c)
  • aggregation of debt-financed income, §21.11
  • donations of indebted property, §§14.3(a), 24.1(a)
  • PF expenditure documentation policy on debt payments, Exh. 14.3
  • See also Loans

• Debt-financed property
  • acquisition indebtedness, §§13.1(h), 15.1(f), 21.12(c)
  • calculation of taxable portion, §21.12(d)
  • definition of, §21.12
  • other types of debts, §21.12(b)
  • properties not subject to debt-financed rules, §21.12(a)

• Deductibility
  • business “donations”, §24.1(c)
  • capital gain property, §24.1(b)
  • carryover, §24.1(b)
  • cars and boats, §24.1(b)
  • fair market value (FMV), §24.1(b)
  • foreign organizations and issue of, §24.1(b)
  • limitations on, §24.1(b)
  • overview of, §24.1
  • patents and other intellectual property, §24.1(b)
  • planned gifts, §24.1(d)
  • qualified appraisal report, §24.1(b)
  • qualified appreciated stock, §§13.5(c), 24.1(b)
  • special 30 percent limit, §24.1(b)
  • special private foundation limitations, §24.1(b)
  • tangible personal property, §24.1(b)
  • 30 percent limit for gifts to other organizations, §24.1(b)

• Deductions
  • limitations on, §24.1(b)
  • private foundation gross investment income, §13.4
  • theft losses, §13.4(c)
  • types of deductions allowed, §13.4(a)
  • types of deductions not allowed, §13.4(b)

• Deferred foreign earnings, §13.2(b)
• De La Salle Institute case, §3.2(b)
• De minimis amounts, §6.5(d)
• De minimis rule on donor benefits, §24.3(a)
• De minimis test, §21.11
• Depreciation, §21.11
• Designated funds of community funds, §11.3(a)
• Determination Letter
  • Form 8940 Request for Miscellaneous Determination, §12.4(d)
  • identifying organization as a supporting organization, Exh. 17.3
  • issued to Form 1023-EZ filers, §17.4(c)
  • PF may rely on grantee's, §17.4(c)
  • reliance on the, §18.1(f)

• Determination process
  • annual filing of Forms 990, §1.2
  • Blazek & Vetterling CPA compensation information, Exh. 18.1B
  • exemption for state purposes, §18.1(g)
  • Exempt Organizations Continuing Professional Education Technical Instruction Program (1979–2004), §18.0
  • group exemptions, §18.1(d)
  • IRS forms to be filed to begin, §§1.2, 4, 2.0, 8.10, 12.2, 18.1
  • IRS Publication 557 Tax-Exempt Status for Your Organization, §§2.1(a), 7.1(a), 10.3(f), 18.1(a)
  • organizations that need not file, §18.1(c)
  • public charity status, §18.1(e)
  • successful application for exemption, §18.1(a)
  • timely filing is critical to, §18.1(b)
  • “top-ten tips” to shorten, §18.1(a)
  • Where Is My Exemption Application? on IRS website, §18.1(a)

• Direct charitable expenditures, §15.4(f)
• Direct grants, §15.4(a)
• Direct lobbying, §17.1
• Directors or trustees, §1.3
• Disaster relief
  • deductibility issue of grants received for, §24.1(a)
  • grants are not taxable, §25.1(e)
  • grants-in-aid to individuals programs, §17.3(c)
  • IRS Publication 3833 Disaster Relief: Providing Assistance Through Charitable Organizations, §§2.2(a), 17.3(c)
  • needy and distressed test, §17.3(c)

• Disclosure rules for donors, §24.2(c), Exh. 24.1
• Disclosures of nondeductibility [§501(c)(5) organizations], §7.4
• Disclosures of nondeductivility [§501(c)(4) organizations]
  • cost of lobbying, §6.5(g)
  • dues not deductible as a business expense, §6.5(b)
  • excepted organizations, §6.5(f)
  • influencing legislation, §6.5(b)
  • look-back rule, §6.5(h)
  • nondeductible membership due, §6.5(d)
  • notice of noncharity status, §6.5(a)
  • proxy tax, §6.5(e)

• Disclosures of nondeductivility [§501(c)(6) organizations], §8.12
• Discrimination prohibition
  • colleges and universities, §5.1(b)
  • educational organizations, §5.1(b)
  • social clubs, §9.3

• Disqualified persons (DPs)
  • Compensation of Disqualified Person Checklist, Exh. 14.1
  • description of, §§12.1, 12.2(c)
  • double jeopardy in case of, §16.4(d)
  • an estate becomes a, §14.9
  • group insurance payments shared by PFs, SOs, and, §14.7(a)
  • Groups A–E of, §20.10(a)
  • incidental or tenuous benefit to, §14.5(e)
  • indemnification of, §14.5(a)
  • indirect acts of self-dealing, §14.8
  • intermediate sanctions imposed on, §20.10(a)
  • IRC §4958 narrows the definition of, §20.10
  • paying the §4958 excise tax imposed on, §20.10(h)
  • prohibition of PF paying excise taxes imposed on, §14.5(b)
  • property co-owned by foundation and, §14.2(d)
  • rebuttable presumption of reasonableness excuse from sanctions, §20.10(f)
  • self-dealing prohibited between PF and, Ch.14
  • transactions that benefit, §14.5
  • undoing uses of property by a, §14.10(a)
  • who are also managers, §20.10(b)
  • See also Private foundations (PFs)

• Disregarded benefits to donors, §§24.2(b), 24.3(b)
• Disregarded economic benefits, §14.5(e)
• Dissolution clause (organizational test), §2.1(b)
• Distributable amount (DA)
  • controversial addition, §15.3(a)
  • description and formula for, §15.3
  • distribution deadline, §15.3(b)
  • private foundations (PFs), §15.6

• Distributions
  • abatement of penalty for PF failure to make required, §15.6(e)
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • bankruptcies and terminating, §26.2(c)
  • distributable amount, §15.3
  • minimum distribution requirements IRC §4942, Ch.15
  • minimum required for private foundations (PFs), §§2.2(b), 15.6
  • minimum required for supporting organizations (SOs), §11.6(c)
  • qualifying, §15.4
  • Request for Abatement Regarding Underdistribution, Exh. 15.2
  • to supporting organizations, §17.4(a)
  • taxable income from estate or trust, §13.1(f)
  • timing plan to reduce excise tax, Exh. 13.1

• Dividends
  • deductions, §21.11
  • taxable, §13.1(c)
  • as unrelated business income modification, §21.10(a)

• DNet.org, §2.2(j)
• Documentation
  • Expenditure Responsibility Control Checklist, Exh. 17.6
  • expenditure responsibility grants, §17.6
  • Grant Agreement, Exh. 17.5
  • Grant Approval Checklist for different organization types, Exh. 17.2
  • grantee reports, §17.6(c), Exh. 17.11
  • Grant Payment Transmittal Letter, Exh. 17.4
  • of meals and housing compensation, §20.4, Exh. 14.2
  • Pre-Grant Inquiry Checklist, Exh. 17.7
  • proof of public status of grant recipients, §17.4(a)
  • See also IRS Forms

• Dole, Bob, §23.1(b)
• Domestic fraternal societies and associations, Exh. 1.1
• Donated assets
  • prudent vs. jeopardizing investments in, §16.2(c)
  • tax basis for capital gains, §13.2(a)

• Donation collection agents, §24.2(b)
• Donation collection system, §22.1(c)
• Donations
  • auctions and raffles, §§24.2(c), 25.3(f), Exh. 24.2
  • carryover, §24.1(b)
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations on, Exh. 19.11
  • differences between §509(a)(1) and §509(a)(2) organizations, §11.5(b)
  • donative intent and donor benefits, §24.2(c)
  • donor-advised funds (DAFs), §§11.3(e), 16.1, Exh. 11.4
  • donor advisor or related person pledges, §11.3(e)
  • donor-designated grants, §11.5(d)
  • donor designations versus donor directions, §11.3(c)
  • donor disclosure receipts of, §24.2(a), Exh. 24.1
  • facts-and-circumstances test, §11.2(f)
  • good-faith estimate of value of, §24.2(b)
  • of indebted property, §§14.3(a), 24.1(a)
  • IRS Publication 561 Determining the Value of Donated Property, §§14.3(a), 24.1(a)
  • PF cannot pay for charitable pledges made by DP, §14.5(d)
  • proposed regulations changing public support computation for organizations, §11.3(e)
  • qualified appreciated stock, §13.5(c)
  • quid pro quo contributions, §24.2(c)
  • redistributing donated noncash property, §13.5(c)
  • substantiation rules for, §24.2(b)
  • unusual grants, §11.2(g)
  • See also Charitable contributions; Fund-raising; Gifts

• Donative intent, §24.2(c)
• Donative public charities
  • description of, §§11.2, 11.2(f)
  • Form 990 or 990–EZ Schedule A filed by, Exh. 11.3
  • grants from other charities, §11.2f
  • two percent gifts, §11.2f

• Donor-advised funds (DAFs)
  • comparing private foundations and, Exh. 11.4
  • Pension Protection Act of 2006 (PPA) impact on, §11.3(e)
  • subject to excess business holdings rules, §16.1
  • “taxable distribution” occurs when paid to natural person, §20.10(d)

• Donor benefits/privileges
  • de minimis rule on, §24.3(a)
  • donative intent and, §24.2(c)
  • fair market value of, §24.3
  • intangible religious, §§24.2(c), 24.3(b)
  • member privileges, §24.3(b)
  • rights to buy college athletic tickets, §24.2(b)
  • suggested guidelines for valuing gifts and, Exh. 24.3
  • that do not need to be valued and can be disregarded, §§24.2(b), 24.3(b)

• Donor-designated grants
  • differences between IRC §509(a)(1) and §509(a)(2), §§11.5(d)
  • donor directions versus, §11.3(c)

• Donor disclosures
  • examples of receipts, Exh. 24.1
  • imposition of penalty for failure to file §6714(a), §24.2(c)
  • quid pro quo rules, §24.2(c)
  • voluntary, §24.2(c)

• Donors
  • charity auctions and raffle tickets purchased by, §24.2(c), Exh. 24.2
  • contributions paid through payroll deductions, §24.2(b)
  • history of disclosure rules, §24.2(a)
  • IRS Publication 1771 revision on acknowledging, §24.2(b)
  • sample donor disclosure receipts, Exh. 24.1
  • substantiation and quid pro quo rules, §24.2
  • substantiation rules for, §24.2(b)
  • See also Fund-raising

• Dormancy of charitable organizations, §2.2(a)
• Doubling up, §13.2
• Drug testing, §21.8(b)
• Dual-status organizations, §10.3(a)
• Dual-use property, §15.1(d)

• E
• East Alabama Healthcare Authority, §10.3(a)
• Economic development corporations (EDCs), §4.2(c)
• Economic substance
  • Affordable Care Act inclusion of, §2.2(i)
  • operational test on tax law doctrine of, §2.2(i)

• Educational organizations
  • advocacy by, §5.1
  • cooperative educational service organizations, §5.1(d)
  • creation of a triumvirate, §22.2(e)
  • day care centers, §5.1(c)
  • educational purposes of, §5.1
  • fraternity/sorority educational foundations, §5.1(f)
  • IRS definition of, §5.1, Exh. 1.1
  • libraries, §5.1(h)
  • literary purposes of, §5.2
  • performing arts, §5.1(g)
  • race discrimination prohibition, §5.1(b)
  • schools, §5.1(a)
  • scientific purposes of, §5.3
  • zoos, §5.1(h)
  • See also Museums

• Educational purposes
  • controversial materials, §5.1(k)
  • definition and overview of, §5.1
  • electronic communication tools, §5.1(l)
  • employer-provided educational assistance under IRC §127(a), §25.0
  • informal education, §5.1(e)
  • performing arts, §5.1(g)
  • publishing: print and electronic, §5.1(j)

• Electioneering
  • actions of organizational officials, §23.1(c)
  • attribution between categories of exempt organizations, §23.1(d)
  • description and limitations on, §23.1
  • Forms 8871 and 8872 to disclose campaign contributions for, §23.3(d)
  • impact on exempt status by, §23.1(b)
  • impermissible voter activity, §23.2(c)
  • IRS Fact Sheet 2006–17 Prohibited Political Campaign Activities of EOs on, §23.3(e)
  • lobbying for an electing organization, §23.4
  • parameters within IRC §501(h), §23.4(b)
  • permissible campaign involvement, §23.1(a)
  • permissible PAC involvement, Exh. 23.1
  • prohibition on, §§5.1, 6.2(a)
  • See also Candidates

• Electronic communication tools, educational purpose of, §5.1(l)
• Electronic publishing projects, §5.1(j)
• Eleemosynary, §2.1(d)
• Elizabeth Leckie Scholarship Fund, §15.5(c)
• Emergency hardship organizations
  • grants-in-aid to individuals programs, §17.3(c)
  • IRS Publication 3833 Disaster Relief: Providing Assistance Through Charitable Organizations, §§2.2(a), 17.3(c)
  • needy and distressed test, §17.3(c)

• Employee benefits
  • company scholarship plans, §17.3(e)–(f), Exh. 17.1
  • fellowship, scholarships, and awards, §25.1(e)
  • sample contractor engagement letter, Exh. 25.3
  • what is typically included in, §25.1(c)

• Employee funded pension trusts (created before 1959), Exh. 1.1
• Employees
  • distinction between independent contractors and, §25.1
  • employee benefits, §25.1(c)
  • Employee versus Independent Contractor IRS Checklist, Exh. 25.2
  • flowchart of employees versus independent contractors, Exh. 25.1
  • legal description of, §25.1(a)

• Employer Tax Requirements Checklist, Exh. 25.4
• Employment taxes
  • employee benefits, §25.1(c)
  • employees defined, §25.1(a)
  • Employee versus Independent Contractor IRS Checklist, Exh. 25.2
  • fellowships, scholarships, and awards, §25.1(e)
  • flowchart of employees versus independent contractors, Exh. 25.1
  • history of exempt organizations and, §25.0
  • independent contractors defined, §25.1(b)
  • IRS Publication 515Withholding of Tax of Nonresident Aliens and Foreign Corporations, §25.1(e)
  • ministers, §25.2
  • payroll depository requirements, §25.3(e)
  • penalty for failure to file information return on, §25.3(a)
  • reporting requirements, §25.3
  • tax withholding requirements, §§25.1(e), 25.2(b), 25.3(b)(c), Exh. 25.4
  • volunteer fringe benefits, §25.1(d)

• Endowment grants, §17.6(c)
• Endowment test of POFs, §15.5(d)
• Entertainment activities, §21.9(e)
• EO Determinations office (Cincinnati, Ohio), §12.4
• Equipment. See Office equipment
• ERISA trusts, Exh. 1.1
• Estates
  • estate administration exception to self-dealing, §14.9
  • taxable income from distributions of, §13.1(f)
  • that becomes a disqualified person, §14.9

• Excess benefit transactions
  • correction of, §20.10(g)
  • description of, §20.10(d)
  • exempt status endangered by, §20.10(h)
  • paying the §4958 excise tax due to, §20.10(h)
  • proving reasonableness when determining, §20.10(e)

• Excess business holdings
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • business readjustments, §16.1(f)
  • constructive ownership and, §16.1(d)
  • corporate holdings, §16.1(b)
  • definition of business enterprise, §16.1(a)
  • disposition periods allowed for, §16.1(e)
  • donor-advised funds subject to, §16.1
  • IRC §4943 on, §16.1
  • nonfunctionally integrated SOs subject to, §16.1
  • partnerships, trusts, and proprietorships, §16.1(c)
  • taxes on, §16.1(g)

• Exchange transactions, §11.5(c)
• Excise taxes
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • based on investment income, Ch.13
  • capital gains, §13.2
  • deductions from gross investment income, §13.4
  • distribution timing plan to reduce, Exh. 13.1
  • exempt operating foundations, §13.9
  • foreign foundations, §13.6
  • Form 4720 Return of Certain Excise Taxes, §12.2(b)
  • formula for taxable income, §13.1
  • imposed upon self-dealing cannot be abated, §14.10
  • on nonelecting 501(c)(3) organizations, §23.5
  • paying the §4958 imposed, §20.10(h)
  • phantom income and, §131.3(b)
  • Ponzi scheme losses, §13.3
  • private colleges and universities, §13.8
  • private foundation (PF), §§11.1, 12.2(b), Ch.13, 15.6(d), Exh. 12.1
  • prohibition of PF paying excise taxes imposed on DP, §14.5(b)
  • tax-planning ideas, §13.5
  • timely payment of, §13.7
  • of 20 percent of any taxable expenditure, §17.8
  • U.S.–Canadian tax treaty and, §13.6
  • when an organization loses tax-exempt status, §18.5
  • See also Taxes

• Exclusive purpose clause (IRC §501(c)(2), §10.4(a)
• Exempt function assets
  • conversion of asset into, §15.4(f)
  • description of, §13.2
  • treated as charitable disbursement, §15.4(f)

• Exempt operating foundations
  • description of, §12.2(a)

• no excise tax due from, §13.9
• Exempt Organization (American Bar Association), §§20.7, 23.4
• Exempt Organizations Continuing Education Texts (IRS), §6.2(a)
• Exempt organizations (E0s)
  • Annual Tax Compliance for Tax-Exempt Organizations—Short Form, Exh. 19.3
  • bankruptcy, §26.2
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations, Exh. 19.11
  • choosing best form of organization, §1.7
  • commonalities among all, §1.0
  • conversion to a for-profit, §26.2(d)
  • converting a nonexempt nonprofit into an, §20.7
  • creating spin-off organizations, §22.0
  • deductibility and disclosures, Ch. 24
  • differences between nonexempt and, §1.1
  • disposal of assets during bankruptcy termination, §26.3
  • earned and unearned types of income of, §21.0
  • IRS Publication 78Tax Exempt Organization Search listing, §17.4(a)
  • IRS Tax-Exempt and Government Entities (TE/GE) Division serving, §18.0
  • licensing use of the organization's name, §21.8(c)
  • limitations on political activity by, §6.2(a), Ch.23
  • lobbying activities of §501(c)(3), §23.4
  • lobbying limits for, §23.6
  • mergers and other combinations, §26.1
  • Organization Reference Chart, Exh. 1.1
  • reporting organizational changes ot the IRS, §18.3
  • research income of, §21.10(f)
  • start-up tax and financial considerations, §1.6
  • status suitability, §1.5
  • tax consequences of fund-raising, §24.0
  • tax withholding requirements for, 25.3(b)
  • termination of, §26.3
  • when an organization loses its, §18.5
  • See also Charitable organizations; IRC §501(c); Private foundations (PFs); Public charities

• Exempt status
  • businesslike behavior, §1.1(b)
  • choosing a category, §1.1(a)
  • how it is affected by bankruptcy, §26.2(a)
  • Internal Revenue Service role in, §1.4
  • IRC §501(c)(3) qualification for, Ch.1
  • maintaining, Ch.19
  • nomenclature, §1.2
  • ownership and control, §1.3
  • resources on rules for, §1.4
  • suitability for tax-exempt status checklist, Exh. 1.2
  • when it is lost by an organization, §18.5
  • See also Public charity status

• Exempt status checklists
  • Annual Tax Compliance Checklist for §501(c)(3)Public Charity, Exh. 19.1
  • Annual Tax Compliance Checklist for §527 Political Organizations, Exh. 19.7
  • Annual Tax Compliance Checklist for Non-§501(c)(3) Organizations, Exh. 19.4
  • Annual Tax Compliance Checklist for Private Foundations (PFs), Exh. 19.5
  • Annual Tax Compliance Checklist for Private Foundation––Short Form, Exh. 19.6
  • Annual Tax Compliance Checklist––Unrelated Business Income, Exh. 19.8
  • Annual Tax Compliance for Tax-Exempt Organizations––Short Form, Exh. 19.3
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations, Exh. 19.11
  • Checklist for Tax and Accounting Issues for Grants, Exh. 19.12
  • Checklist for Website Exemption Issues, Exh. 19.10
  • Intermediate Sanction Checklist, Exh. 19.9
  • 2010 §501(c)(3) Public Charity Tax Preparer Checklist, Exh. 19.2

• Exempt status suitability
  • appropriate exemption category, §1.5(b)
  • are creators motivated by selfish goals?, §1.5(d)
  • do expected revenue sources indicate nonprofit character?, §1.5(c)
  • general information on, §1.5
  • is new organization necessary?, §1.5(a)

• Expenditure documentation policy of private foundations, Exh. 14.3
• Expenditure responsibility grants
  • endowment grants, §17.6(c)
  • to ensure accountability requirements, §17.6
  • Expenditure Responsibility Agreement––Version 1, Exh. 17.8
  • Expenditure Responsibility Agreement––Version 2, Exh. 17.9
  • Expenditure Responsibility Control Checklist, Exh. 17.6
  • Form 4720 to report failure to exercise, §17.6
  • grant diversions, §17.6(e)
  • grantee accounting records, §17.6(c)
  • grantee reports, §§17.6(c), Exh. 17.11
  • grant terms, §17.6(b)
  • to non-(c)(3) organizations, §17.6
  • pre-grant inquiry, §17.6(a)
  • Pre-Grant Inquiry Checklist, Exh. 17.7
  • private foundation successor organizations, §17.6(c)
  • program–related investments, §17.6(c)
  • report to IRS on Form 990–PF, §17.6(d), Exh. 17.10

• Expenditures
  • administrative expenses, §15.4(f)
  • allocation of expenses to calculate taxable income, §21.11
  • commensurate test of, §2.2(d)
  • distributions of direct charitable, §15.4(f)
  • IRC §4945 on taxable, Ch.17
  • noncharitable, §17.7
  • operational test of charitable, §2.2(b)
  • penalty tax on (c)(3) political, §23.2(d)
  • political, §§23.1, 23.2(d), 23.3, 23.5(b)
  • self-sponsored charitable program, §15.4(f)
  • tax on political, §23.3

• Expense allocations, §21.11
• Expense reimbursement policy for private foundations, Exh. 14.2
• Exploitation rule. See Fragmentation and exploitation rules
• Extraordinary collection actions (ECAs) [hospitals], §4.6(j)

• F
• Facey Medical Foundation, §4.6(e)
• Facts-and-circumstances test, §11.2(f)
• Fair market value (FMV)
  • cash and other assets, §15.2(e)
  • date of valuation, §15.2(b)
  • deduction amount for gift of property, §24.1(b)
  • definition of, §20.10(d)
  • de minimis rule on donor benefits, §24.3(a)
  • of donated property, §§14.3(a), 24.1(a)
  • donor benefits and de minimis rule, §24.3, Exh. 24.3
  • good-faith estimate by charity, §24.2(b)
  • IRS Publication 561 Determining the Value of Donated Property, §24.1(a)
  • measuring, §15.2
  • partial year, §15.2(c)
  • for purchase, lease, or sale of property or services, §20.5
  • readily marketable securities, §15.2(d)
  • usual market place standard, §24.1(b)
  • valuation methods, §15.2(a)

• Family members (private foundations), §12.2(c)
• “Family offices,” §14.7
• Farmers' cooperative associations, Exh. 1.1
• Farmers' markets, §2.2
• Federal Credit Unions, §10.1
• Federal Crop Insurance Corporation, §10.1
• Federal Deposit Insurance Corporation (FDIC), §10.1
• Federal Election Campaign Act (FECA), §§23.0, 23.3, 23.3(c)
• Federal Election Commission (FEC), §2.2(j)
• Federal Employee Health Benefits Act (FEHBA), §7.1(e)
• Federal Home Loan Banks, §10.1
• Federal Insurance Contributions Act, §10.2
• Federal Intermediate Credit Banks, §10.1
• Federal Land Banks, §10.1
• Federal National Mortgage Association (FNMA), §10.1
• Federal Reserve Bank, §10.1
• Feeder entities, §2.2(h)
• Fellowships grants, §§17.3(b), 17.3(d)(e)(f), 25.1(e)
• FICA taxes. See Social Security taxes
• Field-of-interest funds of community funds, §11.3(a)
• Filer Commission, §17.0
• Financial Accounting Standards Board (FASB)
  • accounting standards update (ASU) released by, §11.5(g)
  • FASB #136 (June 1999) on variance power over grant, §11.5(d)

• Financial assistance policy (FAP) [hospitals], §4.6(j)
• Financial considerations
  • financial management, §1.6(b)
  • preliminary planning, §1.6(a)
  • requirements and tax attributes for §§501(c)(2),(3),(4),(5),(6),(7), Exh. 1.4
  • suitability for tax-exempt status checklist, Exh. 1.2

• First bite rule, §20.10
• First Nations Development Institute, §10.2
• Fiscal agents, §17.4(d)
• Fiscal changes reporting, §18.3(b)
• Fitness/health centers, §4.6(g)
• Foreign foundations
  • description of, §12.2(a)
  • excise taxes, §13.6
  • termination tax does not apply to, §12.4(a)

• Foreign investments
  • income from private foundation, §13.1(h)
  • offshore hedge funds, §18.2(g), Exh. 182
  • reporting on Form 990–T, §18.2(g)

• Foreign organizations
  • controlled foreign corporations (CFCs), §§13.1(h), 18.2(g)
  • deductibility issue of, §24.1(b)
  • equivalency procedure, §17.5(b)
  • expenditure responsibility route, §17.5(c)
  • grants made to, §17.5
  • grant terms specific to, §17.6(b)
  • IRS approval for PF grants to, Exh. 17.2
  • passive foreign investment companies (PFICs), §§13.1(h), 18.2(g)
  • private foundations, §§12.2(a), 12.4(a), 13.6
  • recognition of U.S. public status, §17.5(a)

• Foreign recipients of distributions, §15.4(e)
• Foreign recipients of grants, §25.1(e)
• Forms. See IRS Forms
• For-profit corporate subsidiaries
  • creation of a, §22.3
  • individual or outside shareholders, §22.3(d)
  • maintaining separate corporate identity, §22.3(a)
  • pays its own income tax, §22.3(b)
  • sharing facilities and/or employees, §22.3(c)

• For-profit organizations
  • corporate subsidiaries, §22.3
  • mergers and other combinations conversion to, §26.1(d)
  • venture funds prudent vs. jeopardizing investments, §16.2(b)

• Foundation managers, §12.2(c)
• Foundation of Human Understanding, §3.2(b)
• Foundations
  • Abraham Lincoln Opportunity Foundation, §5.1
  • Ark Environmental Foundation U.S., Inc., §2.2(e)
  • exempt operating, §§12.2(a), 13.9
  • Facey Medical Foundation, §4.6(e)
  • fraternity/sorority educational, §5.1(f)
  • Great Kansas City Community Foundation, §§2.2, 4.3
  • private operating, §§12.2(a), 15.5, Exh. 1.1
  • types of, §12.2(a)
  • See also Private foundations (PFs)

• Foundation Source Grant Safe, §17.4(a)
• Fragmentation and exploitation rules, §§8.4(c), 21.4(c), 21.13
• Fraternal beneficiary societies and associations
  • IRC description of, Exh. 1.1
  • PF grant made to, §17.6

• Fraternity/sorority educational foundations, §5.1(f)
• Freedom from Religion Foundation, §25.2(b)
• Friends of organizations, §24.1(b)
• Fund for the Study of Economic Growth and Tax Reform case, §23.1.(b)
• Fund-raising
  • crowdfunding, §24.0
  • Internet exempt activities and, §2.2(j)
  • qualified, §24.3(a)
  • self-dealing event benefits, §14.5(c)
  • state and local regulations on, §24.5
  • tax consequences of, §24.0
  • unrelated business income aspects of, §24.4
  • See also Donations; Donors

• G
• Gala tickets
  • community foundations (CFs), §11.3(e)
  • self-dealing and PF payment of, §14.5(c)

• Garden clubs, §6.2, 7.3
• Gay and lesbian groups, §5.1(b)
• Geisinger Health Plan (Geisinger Hospital), §§4.6(a), 4.6(f)
• Genealogical societies, §§2.2, 2.2(a)
• General Accounting Office, §25.0
• General Counsel Memorandum (GCM) [IRS], §18.5
• Georgia Institute of Technology's McDonald's Center, §21.8(i)
• Germane lobbying, §17.1(a)
• Ghetto improvement project, §15.5(a)
• Gift premiums, §21.9(g)
• Gifts
  • cars and boats, 24.1(b)
  • as charitable contribution, §24.1
  • deduction amount as the fair market value (FMV), §24.1(b)
  • to domestic Friends of organizations, §24.1(b)
  • donated assets, §13.2(a)
  • and donations of indebted property, §§14.3(a), 24.1(a)
  • donative public charities and two percent, §11.2f
  • gift tax for club gifts, §9.4(c)
  • history of disclosure rules on soliciting, §24.2(a)
  • IRC §509(a)(1) and §509(a)(2) organizations in-kind, §11.5(c)
  • IRS Form 8283 filed for over $20,000, §24.1(b)
  • planned, §24.1(d)
  • received by SOs from private foundations, §11.6(c)
  • redistributing donated noncash property, §13.5(c)
  • split-interest trust, §§11.5(c), 13.1(f), 24.1(d)
  • 30 percent limit for gift to other organizations, §24.1(b)
  • See also Donations

• Gingrich, Newt, §§5.1, 23.1.(b)
• Global evangelical ministry (GEM), §3.2(b)
• Goldsboro Christian Schools v. United States, §3.0
• Gold stocks, §16.2(b)
• Good-faith estimate, §24.2(b)
• Goods/merchandise
  • art object sales in museums, §5.1(i)
  • related business activity of sale of, §21.7(b), Exh. 21.4
  • sold on the Internet, §21.8(j)
  • See also Services

• Goodwill Industries job-training program, §2.2(e)
• Governance
  • Form 990 Part VI, Governance, Management and Disclosure, §§2.1(d), 2.2(k)
  • IRS Governance Project Guidesheet, §2.2(k)
  • operational test of §501(c)(3) on, §2.2(k)

• Government
  • charitable organizations lessening the burdens of, §4.3
  • instrumentalities of the United States, §10.1
  • IRC §§7701(a)(40) and 7871 on Indian tribal, §10.2
  • state and local regulations on fund-raising, §24.5

• Governmental units
  • categories for tax purposes, §10.3(b)
  • charitable contribution deductions for, §10.3(c)
  • definition of an Indian tribe as a, §10.2
  • disadvantages of §501(c)(3) status, §10.3(a)
  • IRC §170(b)(1)(A)(v) definition of, §10.2
  • organizational criteria to be treated as affiliate of, §10.2
  • private foundation grant made to, §17.6
  • qualifying for §501(c)(3) status, §10.3
  • Reg. §1.103–1(b) definition on, §10.2
  • See also Quasi-governmental entities

• Government grants
  • IRC §509(a)(1) organizations, §11.5(c)
  • IRC §509(a)(2) organizations, §11.5(c)

• Government officials
  • private foundation relationship to, 12.2(c)
  • self-dealing payments made to, §14.6

• Grant documentation
  • expenditure responsibility grants, §17.6
  • Grant Agreement, Exh. 17.5
  • Grant Approval Checklist for different organization types, Exh. 17.2
  • grantee reports, §17.6(c), Exh. 17.11
  • Grant Payment Transmittal Letter, Exh. 17.4
  • Pre-Grant Inquiry Checklist, Exh. 17.7
  • proof of public status of grant recipients, §17.4(a)

• Grantee accounting records, §17.6(c)
• Grant fund diversions, §17.6(e)
• Grant intermediaries
  • individual grant programs using, §17.3(g)
  • private foundation grant to a, §17.6

• Grant management services, §21.8(b)
• Grants
  • to and from the (c)(3) organizations, §22.1(d)
  • Checklist for Tax and Accounting Issues for Grants, Exh. 19.12
  • community foundation, §15.4(c)
  • differences between §509(a)(1) and §509(a)(2) organizations, §11.5(b)(c)
  • direct, §15.4(a)
  • disaster relief, §§2.2(a), 17.3(c), 24.1(a), 25.1(e)
  • to donative public charities from other charities, §11.2(f)
  • donor-designated, §11.5(d)
  • evaluating under FASB accounting standards update (ASU), §11.5(g)
  • expenditure responsibility, §17.6
  • FASB #136 (June 1999) on variance power over, §11.5(d)
  • fellowships, §§17.3(b), 17.3(d)(e)(f), 25.1(e)
  • foreign recipients, §25.1(e)
  • granted to other organizations by POF, §15.5(b)
  • grants-in-aid programs, §17.3(c)
  • individual, §§15.4(f), 17.3
  • IRC §509(a)(1) and §509(a)(2) and supporting organizations, §11.5(c)
  • made by private foundations to public charities, §17.4
  • made on condition of PF name recognition, §14.5(e)
  • made to foreign organizations, §17.5
  • made to individuals, §17.3
  • noncash and in-kind, §15.4(d)
  • private operating foundation (POF) program for individual, §15.5(c)
  • to public charities, §17.4
  • to public charities that lobby, §17.1(c)
  • recoverable, §16.3
  • scholarships, §§2.2(a), 17.3(b)–(f), 24.1(a), 25.1(e)
  • to SOs from private foundations, §11.6(c)
  • unusual, §11.2(h)

• Grants-in-aid programs, §17.3(c)
• Grassroots lobbying, §§17.1, 23.4(e)
• Grassroots lobbying communication, §17.1
• Great Kansas City Community Foundation, §§2.2, 4.3
• Gross investment income
  • deductions from, §13.4
  • definition of, §13.0
  • taxable income of PF, §13.1a

• Gross-to-gross method (social club field), §9.5(e)
• Ground transportation reimbursement, Exh. 14.2
• Group Form 990, §18.2(f)
• Group insurance payments (PFs), §14.7(a)
• Group insurance programs, §21.8(f)
• Group legal services plan, Exh. 1.1
• Guide International Corporation, §8.3(a)
• “Guide Sheet for Organizations Closely Affiliated with State or Indian Tribal Governments (IRS), §10.2
• Guidestar, §§10.3(a), 17.4(a), 18.2

• H
• Hans S. Mannheimer Charitable Trust, §17.6(d)
• Harvard Fly Club case, §9.3(a)
• HCA, Inc., §4.6(c)
• Health-care organizations, §4.6(a)
• Health Care Provider Reference Guide (CPE series), §4.6
• Health/fitness centers, §4.6(g)
• Health insurance portability, §25.0
• Health maintenance organizations (HMOs), §§4.6(a), 4.6(f), 21.8(b), 25.0
• Health promotion
  • charity care, §4.6(a), 4.6(d)
  • Health Care Provider Reference Guide (CPE series), §4.6
  • health/fitness centers, §4.6(g)
  • health maintenance organizations (HMOs), §4.6(a), 4.6(f)
  • homes for the elderly, §§4.6(a), 4.6(i)
  • hospital joint ventures, §4.6(c)
  • integrated health delivery system (IDS), §4.6(e)
  • IRS Community Board and Conflicts of Interest Policy, §4.6(b)
  • IRS's Hospital Compliance Project (2006) to study, §4.6(j)
  • physician clinics, §4.6(d)
  • private inurement issue, §4.6(b)
  • professional standards review organizations (PSROs), §4.6(h)
  • as purpose of charitable organizations, §4.6
  • rendering services for, §21.8(b)

• Hedge fund investments, §13.1(h)
• Helge, Terry, §2.2(e)
• Hill, Frances R., 23.1(b)
• Historical reference library, §15.5(a)
• Hobby or recreational groups, §8.3(c)
• Home health agencies, §4.6(a)
• Homeowner's associations
  • annual election, §6.4(c)
  • calculating the tax relief, §6.4(b)
  • characteristics of, §6.4(a)
  • disclosures of nondeductibility, §6.5
  • IRS Publication 588, Tax Information for Homeowners Associations, §6.4(c)
  • qualifying under §501(c)(4), §6.4
  • See also Civic organizations

• Homes for the elderly, §§4.6(a), 4.6(i)
• Hopkins, Bruce, §10.3(c)
• Horticultural organizations
  • garden clubs, §6.2, 7.3
  • IRC description of, §7.3, Exh. 1.1

• Hospital Compliance Project (2006) [IRS], §4.6(j)
• Hospital holding companies, §4.6(a)
• Hospital joint ventures
  • charitable, §4.6(c)
  • commercial, §4.6(c)
  • overview of, §4.6(c)

• Hospitals
  • actions that may be taken in event of nonpayment, §4.6(j)
  • additional requirements to retain 501(c)(3) status, Exh. 1.1
  • Affordable Care Act requirements for nonprofit, §4.6(j)
  • charity care by, §4.6(a)
  • community health needs assessment (CHNA) conducted annually by nonprofit, §6.4(j)
  • cooperative hospital service organizations, §4.7, Exh. 1.1
  • extraordinary collection actions (ECAs) by, §4.6(j)
  • failures to satisfy requirements of §501(r), §4.6(j)
  • financial assistance policy (FAP) adopted by nonprofit, §6.4(j)
  • Geisinger Hospital's Geisinger Health Plan division, §§4.6(a), 4.6(f)
  • hospital joint ventures, §4.6(c)
  • “Hospitals Clinics, and Similar Health Care Providers Reference Guide Sheet”, §4.6(a)
  • IRS community benefit standards for, §4.6(a)
  • IRS's Hospital Compliance Project (2006) to study nonprofit, §4.6(j)
  • taxation of noncompliant, §4.6(j)
  • Treasury Inspector General for Tax Administration (TIGTA) report on nonprofit, §4.6(j)
  • See also Patients

• House of David, §3.4
• Housing
  • compensation through, §20.4
  • low-income housing projects (PILFs), §4.2(a)
  • medical research institution employee, §25.0
  • minister housing allowances, §25.2(b)
  • reimbursement of lodging away from home, Exh. 14.2
  • room and board employee fellowship/scholarship benefits, §25.1(e)
  • student, §5.1(a)
  • United States Housing Authority, §10.1

• Hurricane Katrina disaster relief, §2.2(a)

• I
• Impermissible lobbying, §17.1
• Incentive compensation, §20.3(c)
• Incidental or tenuous benefit, §14.5(e)
• Income
  • aggregation of debt-financed, §21.11
  • earned and unearned types of, §21.0
  • §509(a)(1) and §509(a)(2) organizations differences in, §11.5(a)
  • phantom, §13.3(b)
  • private operating foundation's adjusted net, §15.5(e)
  • rental, §§13.1(d), 21.8(a), 21.10(c)
  • SO stock/non-liquid investments/assets that do not produce, §11.6
  • transactions that benefit disqualified persons, §14.5
  • See also Investment income; Unrelated business income (UBI)

• Income accumulations
  • operational test on, §2.2(c)
  • title-holding corporation (THC), §10.4(b)

• Income taxes
  • for-profit corporate subsidiaries pays their own, §22.3(b)
  • individual grant programs reporting, §17.3(d)
  • ministers exempt from, §25.2(b)
  • withholding requirements, §25.3(b)
  • See also Taxes; Unrelated business income tax (UBIT); Unrelated business taxable income tax (UBTI)

• Income test of POFs, §15.5(d)
• Independent contractors
  • distinction between employees and, §25.1
  • Employee versus Independent Contractor IRS Checklist, Exh. 25.2
  • flowchart of employees versus independent contractors, Exh. 25.1
  • legal description of, §25.1(b)

• Indian tribal government
  • “Guide Sheet for Organizations Closely Affiliated with State or Indian Tribal Governments,” §10.2
  • under IRC §§7701(a)(40) and 7871, §10.2

• Indian tribes
  • as defined under §103(a), §10.2
  • definition of, §21.9(f)
  • IRS “Guide to Indian Taxation Issues”, §21.9(f)
  • qualify as governmental organizations for expenditure responsibility purposes, 17.4(a)
  • tax considerations of income earned by, §21.9(f)

• Indirect self-dealing
  • estate administration exception, §14.9
  • examples of, §14.8

• Individual grant programs
  • class of potential grantees, §17.3(d)
  • designing an, §17.3(d)
  • IRS approval for, §17.3(f), Exh. 17.1
  • record-keeping and income tax reporting, §17.3(d)
  • research or study grants, §17.3(d)
  • scholarships and fellowships, §§2.2(a), 17.3(b)–(f), 24.1(a), 25.1(e)
  • using intermediaries for, §§17.3(g), 17.6

• Individual grants
  • compensatory payments, §17.3(b)
  • description and IRS requirements for, §17.3
  • designing an individual grant program for, §17.3(d)
  • distribution of, §15.4(f)
  • emergency grants-in-aid to individuals and disaster relief, §§2.2(a), 17.3(c), 24.1(a), 25.1(e)
  • study or research, §§17.1(b), 17.3(d)

• Infant Formula Action Coalition case, §23.7
• Influencing legislation, §6.5(b)
• Informal educational purpose, §5.1(e)
• Information on Taxes and Your Donation (Church of Scientology), §3.2(d)
• “Inherently public activity,” §11.2
• In-kind gifts, §11.5(c)
• Institute of International Education, §25.3(d)
• Instrumentalities of the United States
  • defining the term instrumentality, §10.3(f)
  • description and examples of, §10.1
  • disadvantages of §501(c)(3) status, §10.3(a)
  • dual-status organizations, §10.3(a)
  • governmental units, §10.2
  • integral parts of, §10.3(e)
  • qualifying for §501(c)(3) status, §10.3
  • statutory exception to general rule taxes, §10.3(b)

• Insurance
  • co-op health insurance issuers, Exh. 1.1
  • group insurance payments shared by DPs, §14.7(a)
  • group insurance programs, §21.8(f)
  • health insurance portability, §25.0
  • long-term care insurance benefits, §25.0
  • whole life insurance policy, §§15.2(e), 16.2(b)

• Insurance organizations
  • benevolent life insurance associations, Exh. 1.1
  • Federal Crop Insurance Corporation, §10.1
  • Federal Deposit Insurance Corporation (FDIC), §10.1
  • Federal Insurance Contributions Act on, §10.2
  • insurance company associations, §8.4(b)
  • Mutual insurance companies or associations, Exh. 1.1
  • National Association of Postal Supervisors’ (NAPS) health insurance activity case, §7.1(e)
  • state-sponsored workers' compensation reinsurance organizations, Exh. 1.1

• Intangible religious benefits, §§24.2(c), 24.3(b)
• Integral agency, §3.2(c)
• Integral part test, §2.2(h)
• Integrated health delivery system (IDS), §4.6(e)
• Intellectual property gifts, §24.1(b)
• Interest
  • Form 1099–INT to report on charity paid loan, §25.3(g)
  • interest-free loans, §§14.3(b), 25.3(g)
  • on political organization collected funds, §23.3(b)
  • taxes on investment income, §13.1(b)
  • as unrelated business income modification, §21.10(a)
  • See also Loans

• Interest-free loans, §§14.3(b), 25.3(g)
• Interest on State and Local Bonds rules, §10.2
• Intermediate Sanction Checklist, Exh. 19.9
• Intermediate sanctions
  • correction of excess benefit, §20.10(g)
  • to enforce inurement prohibition, §20.10
  • excess benefit transaction, §20.10(d)
  • first bite rule, §20.10
  • imposed on Groups A–E disqualified persons, §20.10(a)
  • imposed on managers, §20.10(b)
  • Intermediate Sanction Checklist, Exh. 19.9
  • intermediate sanctions connection, §14.4(b)
  • managers participating and knowing, §20.10(c)
  • rebuttable presumption excuse from, §20.10(f)

• Internal Revenue Manual (IRM), §§4.2(a), 6.2, 8.7, 11.6, 18.1, 18.2(f)
• International activities, operational test on, §2.2(i)
• International amateur sports competition, §§5.5, 6.2, Exh. 1.1
• International E22 Class Association, §5.5
• Internet exempt activities
  • Checklist for Website Exemption Issues, Exh. 19.10
  • by colleges and universities, §2.2(j)
  • fees for Internet activities, §2.2(j)
  • fund-raising issues, §2.2(j)
  • operational test on, §2.2(j)
  • other issues related to, §2.2(j)
  • providing organization information on website, §2.2(j)
  • providing services, §2.2(j), 6.2
  • tax consequences of website links, §2.2(j)

• Internet-related organizations
  • exemption applications by, §2.2(j)
  • hyperlinks to sponsor's website address, §21.8(e)

• Internet-related revenue
  • crowdfunding, §24.0
  • IRC §513(i)(2)(A) rules on, §21.8(j)

• Internet Service Providers (ISPs)
  • electronic publishing projects, §5.1(j)
  • perused by the IRS, §2.2(j)

• Inter vivos (“among the living”) trusts, §1.7(b)
• Inurement
  • defining, §20.1
  • economic substance, §20.1(d)
  • identifying, §20.1(b)
  • meaning of net earnings, §20.1(c)
  • personal involved in, §20.1(a)

• Inurement prohibition
  • business league member, §8.7
  • organizational test clause on, §2.1(c)
  • social club members, §9.2
  • See also Self-dealing transactions

• Inurement transactions
  • excess benefit, §20.10(d)
  • for-profit to nonprofit and vice versa, §20.7
  • intermediate sanctions for, §20.10
  • joint ventures, §20.9
  • lending money to or borrowing from an insider form of, §20.6
  • member services and benefits, §20.8
  • paying the §4958 excise tax imposed due to, §20.10(h)

• Inventory, §21.11
• Investment assets
  • acquisition indebtedness, §15.1(f)
  • definition of, §15.1(a)
  • dual-use property, §15.1(d)
  • exempt function assets, §15.1(c)
  • future interests or expectancies, §15.1(b)
  • held for future use, §15.1(e)
  • used to calculate minimum investment return, §15.1

• Investment income
  • assets used to calculate minimum return for PFs, §15.1
  • capital gains, §13.2
  • capital losses, §13.3
  • changing accounting method or tax year, §13.4(d)
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations, Exh. 19.11
  • deductions from gross, §13.4
  • deferred foreign earnings, §13.2(b)
  • dividends that are taxable, §13.1(c)
  • earned by partnerships of private foundations (PFs), §13.1(g)
  • excise tax based on, Ch.13
  • excise tax on colleges and universities, §13.8
  • foreign investments, §13.1(h)
  • formula for taxable income of PFs, §13.1
  • gross, §13.0, 13.1(a)
  • interest earned on, §13.1(b)
  • jeopardizing, §16.2
  • phantom income, §13.3(b)
  • program-related [§4944(c)], §§13.2, 16.3
  • reporting requirements for offshore, §18.2(g)
  • tax-planning ideas, §13.5
  • See also Income

• Involuntary termination of private foundations, §12.4
• IRC §103, §10.2
• IRC §107(s), §25.2(b)
• IRC §115(a), §5.1(d)
• IRC §119(d)(4)(A), §25.0
• IRC §127(a), §25.0
• IRC §§167, 168, and 179, §21.11
• IRC §170
  • (a) contribution defined, §24.1(a)
  • (b)(1)(A)(iii) on cooperative hospital service organizations under, §4.7
  • (b)(1)(A)(ii) on cooperative educational service organizations, §5.1(d)
  • (b)(1)(A)(v) governmental unit as defined under, §10.2
  • (b)(1)(A)(vi) recognition of change in status to, §11.5(e), 11.5(f)
  • (c)(1) entitled to receive deductible charitable contributions under, §10.2
  • charitable contribution defined in, §24.1
  • relationship between §501(c)(3) and, §2.0

• IRC §§243–245, §21.11
• IRC §§261–280H, §21.11
• IRC §§263A and 471–474, §21.11
• IRC §318 attribution rules, §21.10(e)
• IRC §501(c)
  • comparing requirements and tax attributes, Exh. 1.4
  • differences between exempt and nonexempt organizations, §1.1
  • filing for nonprofit status, §1.4
  • nomenclature, §1.2
  • Organization Reference Chart covered by, Exh. 1.1
  • on ownership and control, §1.3
  • start-up tax and financial considerations, 1.6
  • suitability as exempt organization under, §1.5
  • See also Tax-exempt organizations (E0s)

• IRC §501(c)(1)
  • governmental units, §10.2
  • instrumentalities of the United States, §§10.1, 10.3(f)
  • qualifying quasi-governmental entities for §501(c)(3) status, §10.3

• IRC §501(c)(2)
  • comparing requirements and tax attributes, Exh. 1.4
  • exclusive purpose clause of, §10.4(a)
  • title-holding corporations (THCs), §10.4

• IRC §501(c)(3)
  • affiliated (c)(3) and (c)(4) organizations, §6.1(d)
  • agricultural groups reclassifying to, §7.2
  • Annual Tax Compliance Checklist for §501(c)(3)Public Charity, Exh. 19.1
  • choosing to apply under §501(c)(4) versus, §6.1(c)
  • comparing organizations of §501(c)(4) and, §6.1
  • comparing requirements and tax attributes, Exh. 1.4
  • conversion of §501(c)(4) organizations to, §6.1(e)
  • creating spin-off organizations, §22.0
  • different categories of organizations exempt under, §11.1, Exh. 11.2
  • on permissible campaign involvement, §23.1(a)
  • qualifying under, Ch.1
  • relationship between §170 and, §2.0
  • significance of public charities for tax exemption under, §11.0
  • 2010 §501(c)(3) Public Charity Tax Preparer Checklist, Exh. 19.2

• IRC §501(c)(3) qualifying
  • comparing §501(c)(4) and, §6.1
  • disadvantages of §501(c)(3) status for governmental units, §10.3(a)
  • must serve a community rather than individuals, §6.4
  • operational test for, §2.2
  • organizational test for, §2.1
  • overview of, §2.0
  • quasi-governmental entities, §10.3

• IRC §501(c)(4)
  • affiliated (c)(3) and (c)(4) organizations, §6.1(d)
  • choosing to apply under §501(c)(3) versus, §6.1(c)
  • comparing organizations of §501(c)(3) and, §6.1
  • comparing requirements and tax attributes, Exh. 1.4
  • disclosures of nondeductibility, §6.5
  • lobbying limits for, §23.6
  • neighborhood and homeowner's associations, §6.4
  • on permissible campaign involvement, §23.1(a)
  • political activity ruling, §23.3(e)
  • “self-declarers” organizations under, §18.1(c)
  • social welfare organization exemption under, §§6.0, 18.1
  • type 1 civic organization promoting social welfare, §6.0
  • type 2 local association of employees, §§6.0, 3

• IRC §501(c)(5)
  • agricultural groups under, §7.2, Exh. 1.1
  • comparing organizations under §501(c)(6) and, §8.9
  • comparing requirements and tax attributes, Exh. 1.4
  • disclosures of nondeductibility, §7.4
  • horticultural groups under, §7.3, Exh. 1.1
  • labor unions under, §7.1, Exh. 1.1
  • lobbying limits for, §23.6
  • organizations qualifying under, §7.0
  • on permissible campaign involvement, §23.1(a)
  • political activity ruling, §23.3(e)
  • “self-declarers” organizations under, §18.1(c)

• IRC §501(c)(6)
  • business leagues, §8.1, Exh. 1.1
  • chambers of commerce and boards of trade, §8.8
  • comparing organizations under §501(c)(5) and, §8.9
  • comparing requirements and tax attributes, Exh. 1.4
  • dealer associations, §8.3(b)
  • formation of related charitable organization, §8.11
  • hobby or recreational groups, §8.3(c)
  • line of business, §§8.3, 8.3(a)
  • lobbying limits for, §23.6
  • meaning of “common business interest,” §8.2
  • member inurement, §8.7
  • membership categories, §8.6
  • on permissible campaign involvement, §23.1(a)
  • political activity ruling, §23.3(e)
  • recognition of exempt status, §8.10
  • rendering services for members, §8.4
  • “self-declarers” organizations under, §18.1(c)
  • sources of revenue, §8.5
  • types of organizations named in, §8.0
  • user groups, §8.3(a)

• IRC §501(c)(7)
  • commingling as necessary for organization exempt under, §2.2(j)
  • comparing requirements and tax attributes, Exh. 1.4
  • filing and disclosure requirements, §9.6
  • member inurement prohibited, §9.2
  • membership requirements, §9.3
  • organizational requirements and characteristics, §9.1
  • revenue tests, §9.4
  • social clubs defined in the, §9.0, Exh. 1.1
  • unrelated business income tax (UBIT), §9.5

• IRC §501(c)(25), §10.5
• IRC §501(c)(b), §2.1(c)
• IRC §501(c)(e), §23.4
• IRC §501(e), §4.6(e)
• IRC §501(h)
  • advantages of making the election under, §23.5(d)
  • advantages of not making the election under, §23.5(d)
  • expenditure test of lobbying, §2.2(g)
  • lobbying expenditures under, §23.4
  • parameters for election lobbying under, §23.4(b)

• IRC §501(r), §4.6(j)
• IRC §502, §2.2(h)
• IRC §507(a), §§12.4, 12.4(h)
• IRC §509
  • categories of organizations under, §11.2
  • community foundations (CFs), §11.3
  • distinguishing between private and public charities, §2.0, 11.1, Exh. ll.1
  • public charities understood through, §11.0
  • reporting §509(a) class issues, §18.3(e)

• IRC §509(a)(1)
  • differences between §501(a)(2) organizations and, §11.5, 18.3(e)
  • “inherently public activity” and broad public support organizations, §11.2
  • /§170(b)(1)(A)(vi), §18.1(e)
  • public charities receiving revenues from general public, §11.0

• IRC §509(a)(2)
  • differences between §501(a)(1) organizations and, §§11.5, 18.3(e)
  • Form 990 Schedule A to evidence ongoing qualification under, §18.1(e)
  • public charities with revenues from charges for exempt services, §11.0
  • service-providing organizations, §11.4

• IRC §509(a)(3)
  • ceasing to qualify as a supporting organization under, §18.3(e)
  • change in category due to support change, §11.5(e)
  • comparing donor-advised funds (DAFs), private foundations, and, Exh. 11.4
  • grants to IRC §509(a)(1) and §509(a)(2) organizations from organizations under, §11.5(c)
  • public charities that support another public charity, §11.0
  • SOs of business, trade, or professional associations, §8.11
  • supporting organizations, §11.6
  • test on supporting organizations under, §1.7(a)

• IRC §509(a)(4), §11.0, 7
• IRC §§511-514, §21.11
• IRC §512(a)(7), §21.11
• IRC §513(h)(1)(B), §21.10(d)
• IRC §513(i)(2)(A) rules, §21.8(j)
• IRC §527
  • on political activities considered an exempt function, §§23.1(a), 23.3
  • political organization's taxable income, §23.3(b)

• IRC §527(e)(2), §23.3(e)
• IRC §529, §§5.1(a), 10.2
• IRC §965, §13.1(h)
• IRC §§1311–1314, §13.3
• IRC §1388, §4.7
• IRC §4911
  • §4911(d) on influencing legislation, §23.4(e)
  • lobbying as defined in, §23.4(c)
  • (z)(l) on excess lobbying expenses, §23.5(c)

• IRC §4912, §23.5
• IRC §4940, §12.4(e)
• IRC §4941
  • penalty provisions of, §12.2(b)
  • private foundation transfers, §12.4(e)
  • self-dealing, Ch.14

• IRC §4941(d)(2)(E), §14.4
• IRC §4942
  • assets used to calculate minimum investment return, §15.1
  • minimum distribution requirements, Ch.15
  • penalty provisions of, §12.2(b)
  • private foundation transfers, §12.4(e)

• IRC §4943
  • on excess business holdings, §16.1
  • penalty provisions of, §12.2(b)
  • private foundation transfers, §12.4(e)

• IRC §4944
  • penalty provisions of, §12.2(b)
  • private foundation transfers, §12.4(e)

• IRC §4944(c)
  • how program-related investments are treated under, §§15.4(f), 16.3
  • program-related investments defined in, §13.2

• IRC §4945
  • penalty provisions of, §12.2(b)
  • private foundation transfers, §12.4(e)
  • prohibiting taxable expenditures by PFs, Ch.17

• IRC §4955, §23.0
• IRC §4958
  • imposing nondeductible excise tax sanction, §20.10
  • new IRC §4960 excise tax differing from, §20.10(j)
  • paying the excise tax imposed on by, §20.10(h)
  • serves to complete requirements for tax-exempt status, §20.10

• IRC §4960 §20.10(j)
• IRC §4968, §13.8
• IRC §6033, §10.2
• IRC §6050S, 25.1(e)
• IRC §6672, §25.3(a)
• IRC §6714
  • (a) tax penalty for failure to disclose quid pro quo contributions, §24.2(c)
  • (b) reasonable cause exception for failure to disclose, §24.2(c)

• IRC §7421, §26.2(b)
• IRC §49401(b), §13.0
• IRC (Internal Revenue Code)
  • exemptions under §501(c)(3), §1.0
  • IRS's right to request information under §7611(b)(1)(A), §3.2(d)

• IRS 1981 Continuing Professional Education Text, §20.0
• IRS Business Master File (BMF), §17.4(a), Exh. 17.2
• IRS Continuing Professional Education (CPE) [2004], §2.1(b)
• IRS EO CPE Text. See IRS Exempt Organization Continuing Professional Education (EO CPE)
• IRS examination
  • achieving positive results, §18.4(d)
  • Colleges and Universities Compliance Project Final Report report (2013) on, §18.4(e)
  • examination methods, §18.4(a)
  • how to prepare for the audit, §18.4(c)
  • “no change” as desired result of, §18.4(e)
  • who handles the, §18.4(b)

• IRS Exempt Organization Continuing Professional Education (EO CPE)
  • on the agency relationship, §21.8(h)
  • credit repair agencies, §4.1
  • health-care and related exemption issues, §4.6
  • homes for the elderly, §4.6(i)
  • hospital joint ventures, §4.6(c)
  • religious organizations, §3.2(b)

• IRS Exempt Organizations Handbook, §7.2(a)
• IRS Exempt Organizations Internal Revenue Manual, §10.4(a)
• IRS Exempt Organizations Internet site, §4.6(a)
• IRS Fact Sheet 2006–17 Prohibited Political Campaign Activities of EOs, §23.3(e)
• IRS Form 941, §18.2(c)
• IRS Form 990
  • amended returns, §18.3(d)
  • annual filing of, §18.2
  • areas for potential IRS scrutiny, §18.2(b)
  • available on www.guidestar.org, §§10.3(a), 17.4(a), 18.2
  • on bankruptcies and terminating distributions, §26.2(c)
  • changes in business activities indicated on, §2.2(e)
  • design of the, §18.2(b)
  • disclosure of campaign contributions, §23.3(d)
  • dormancy explanation on, §2.2(a)
  • expanded to include details of revenue sources, §21.0
  • failure to file and loss of exempt status, §§17.4(a), 18.2(b)
  • filed annually by L3C, §1.7(d)
  • filed by subordinate organizations, §18.2(f)
  • filed to make the election, §23.5(a)
  • filing deadline, §18.2(e)
  • financial reporting of LLC, §1.7(d)
  • foreign charitable organization required to file, 13.6
  • group returns and annual affidavit, §18.2(f)
  • IRC §6033 listing organizations exempt from, §10.2
  • list of organizations required and not required to file, §18.2(d)
  • ongoing classification determined by annual, §§1.2, §18.2
  • partial liquidation or major disposition of assets, §26(b)
  • Part IV, Exh. 18.1A
  • Part VI, §§2.1(d), 2.2(k), 20.10(c)
  • Part VII, §§20.10(e), 20.3
  • public disclosure, §18.2(a)
  • reporting offshore investments, §18.2(g)
  • reporting organizational changes, §18.3
  • Schedule A, §§1.2, 11.5(a), 18.2(b), 18.3(d), Exh. 11.3
  • Schedule C, §23.5(c)
  • Schedule H, §5.4
  • Schedule J, §§20.3, 20.10(c)
  • Schedule L, §§20.1(b), 20.10(c), 20.10(h)
  • Schedule O, §21.0
  • social clubs to file, §9.6
  • what to attach Schedules A–R, §18.2(b)
  • who should file, §18.2(c)

• IRS Form 990–EZ
  • disclosure of campaign contributions, §23.3(d)
  • dormancy explanation on, §2.2(a)
  • failure to file and loss of exempt status, §17.4(a)
  • partial liquidation or major disposition of assets, §26(b)
  • Part VI on salaries, §20.3
  • reporting organizational changes, §18.3
  • Schedule A filed by donative public charities, Exh. 11.3
  • social clubs to file, §9.6
  • supporting organizations to file, §11.6(c)
  • used for under $50,000 gross revenue, §1.5
  • who and when to submit for determination, §18.2(c)

• IRS Form 990–N
  • dormancy explanation on, §2.2(a)
  • filed annually by private foundation, §11.1
  • who and when to submit the, §18.2(c)

• IRS Form 990–PF
  • “Accounting Methods” instructions on, §13.4(d)
  • disclosing change in PF accounting method, §13.2(a)
  • electronic submission of, §13.7
  • expenditure responsibility grants statement to IRS on, §17.6(d), Exh. 17.10
  • failure to file and loss of exempt status, §17.4(a)
  • filed as part of determination process, §18.2(c)
  • IRS Formula for taxable income of PF, §13.1
  • Park XVI–A, §21.1
  • partial liquidation or major disposition of assets, §26(b)
  • Partk XVI as part of POF classification request, §15.5
  • Part VIII, §21.1
  • private foundations required to file, §§11.6(c), 12.2(b)
  • redistribution reporting issues, §15.4(b)
  • reporting offshore investments, §18.2(g)
  • reporting organizational changes, §18.3
  • required when 33 1/3 percent support is not sustained, §18.1(e)

• IRS Form 990–T
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations on, Exh. 19.11
  • comparison of reporting for corporation versus trust, Exh. 21.6
  • Exempt Organization Business Income Tax Return, §18.2(a)
  • filed by subordinate member organizations, §18.2(f)
  • organizations that should file §18.2(c)
  • to report income subject to UBI tax, §§9.6, 13.4(d)
  • reporting UBTI on, §18.2(g)
  • UBIT calculated on, §21.11
  • unrelated business revenue should be reported on, §21.1
  • when an organization should file, §21.0

• IRS Form 990–W, §13.7
• IRS Form 1023
  • to determine exempt status, §§1.2, 4, 2.0, 12.2, 18.1
  • filed to make the election, §23.5(a)
  • financial information included in, §1.6
  • request for POF classification, §15.5
  • required for newly created trust or corporation, §26.1(c)
  • revised in 2017, §1.5
  • Schedule D for seeking SO status, §11.6
  • Schedule H for seeking approval for scholarship plan, §17.3(f)
  • user groups, §8.3(a)

• IRS Form 1023-EZ
  • Determination Letter issued to filers of, §17.4(c)
  • filed to begin determination process, §18.1

• IRS Form 1024
  • to determine exempt status, §§1.2, 8.10, 18.1
  • financial information included in, §1.6
  • organization test imposed by, §7.1(a)
  • required for newly created trust or corporation, §26.1(c)
  • social clubs to file, §9.6

• IRS Form 1024–A
  • filed by newly forms entity seeking tax-exemption, §§1.4, 6.1(b)
  • to seek recognition of exemption, §§1.4, 18.1

• IRS Form 1065, §3.4
• IRS Form 1099, §18.2(c)
• IRS Form 1099–INT, §25.3(g)
• IRS Form 1099–MISC, §25.1(e)
• IRS Form 1120, §22.3(b), 23.3(d)
• IRS Form 1120–POL
  • links reportable as taxable income on, §2.2(j)
  • reporting taxable political expenditures, §§23.3, 23.3(d)

• IRS Form 1128, §18.3(b)
• IRS Form 3115
  • to change method for reporting UBIT, §13.4(d)
  • disclosing change in PF accounting method, §13.2(a)

• IRS Form 4361, Application for Exemption from Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, §25.2(c)
• IRS Form 4720
  • links causing penalties reported on, §2.2(j)
  • penalty tax and revocation due to excess lobbying, §23.5(c)
  • to report excise taxes and claim abatement of imposed taxes, §18.2(c)
  • to report failure to exercise expenditure responsibility, §17.6
  • Return of Certain Excise Taxes on Charities, §12.2(b)
  • sample statement regarding correction of taxable expenditure, Exh. 17.12

• IRS Form 5500, §18.2(c)
• IRS Form 5578, §§5.1(b), 18.2(c)
• IRS Form 5768
  • filed to make the election, §23.5(a)
  • to measure permissible lobbying expenditures of public charity, §18.2(c)

• IRS Form 8233, §25.1(e)
• IRS Form 8283, §24.1(b)
• IRS Form 8871
  • disclosure of campaign contributions, §23.3(d)
  • when to file, §23.3(d)

• IRS Form 8872
  • disclosure of campaign contributions, §23.3(d)
  • when to file, §23.3(d)

• IRS Form 8940
  • for conversion from PF to POF, §15.5(h)
  • reporting organizational changes using, §18.3(a)
  • Request for Miscellaneous Determination, §§12.4(d), 18.2(c)
  • unusual grants, §11.2(h)

• IRS Form 8976, §1.4
• IRS Form 14414 Group Rulings Questionnaire, §18.1(d)
• IRS Form SS–8, §25.1(b)
• IRS Form W–2, §§25.1(e), 25.3
• IRS Form W–9 Request for Taxpayer Identification Number and Certification, §25.3(d)
• IRS General Counsel Memorandum (GCM), §18.5
• IRS (Internal Revenue Service)
  • “Adjustments of Excess Distribution Carryovers from Closed Years” by, §15.6(a)
  • college and university compliance check sent out by, §5.1(a)
  • Community Board and Conflicts of Interest Policy, §4.6(b)
  • Continuing Professional Education Text (1981) by, §20.0
  • EO FY 2017 Annual Report and FY 2018 Work Plan, §2.2(k)
  • Exempt Organization branch of, §1.2
  • Exempt Organizations Continuing Education Texts by, §6.2(a)
  • Governance Project Guidesheet, §2.2(k)
  • “Guide Sheet for Organizations Closely Affiliated with State or Indian Tribal Governments (IRS), §10.2
  • “Guide to Indian Taxation Issues” by the, §21.9(f)
  • Hospital Compliance Project (2006) of the, §4.6(j)
  • “Hospitals Clinics, and Similar Health Care Providers Reference Guide Sheet”, §4.6(a)
  • on “inherently public activity” by public charities, §11.2
  • intention to revise responsiveness test by, §11.6(c)
  • Internal Revenue Manual (IRM) by, §§4.2(a), 6.2, 8.7, 11.6, 18.1, 18.2(f)
  • Internet Service Providers (ISPs) perused by, §2.2(j)
  • IRS Business Master File (BMF), §17.4(a), Exh. 17.2
  • IRS Exempt Organizations Handbook by, §7.2(a)
  • IRS Exempt Organizations Internet site, §4.6(a)
  • IRS Tax-Exempt and Government Entities (TE/GE) Division of the, §18.0
  • IRS Technical Advice Memo, §3.2(b)
  • Priority Guidance Plan 2018–2019, §14.2(d)
  • proposed regulations changing public support computation for organizations, §11.3(e)
  • Rev. Rul. 57–128, §10.3(e)
  • Rev. Rul. 60–384, §10.3(e)
  • Rev. Rul. 97–21, §4.6(b)
  • Rev. Rul. 98–15, §4.6(c)
  • road map for reforming a foundation, §12.4(e)
  • role in organizational tax-exempt status by, §1.4
  • scrutiny of unrelated business income by the, §21.1
  • seeking company scholarship plan approval from the, §17.3(f), Exh. 17.1
  • “Supporting Organization Reference Guide” by the, §11.6

• IRS Notice–6, §11.6(c)
• IRS Priority Guidance Plan, §10.3(d)
• IRS Publication 78Cumulative List of Organizations Described in IRC §170, §18.1(f), Exh. 17.2
• IRS Publication 78Tax Exempt Organization Search, §17.4(a)
• IRS Publication 515Withholding of Tax of Nonresident Aliens and Foreign Corporations, §25.1(e)
• IRS Publication 557 Tax-Exempt Status for Your Organization, §§2.1(a), 7.1(a), 10.3(f), 18.1(a)
• IRS Publication 561 Determining the Value of Donated Property, §§14.3(a), 24.1(a)
• IRS Publication 588Tax Information for Homeowners Associations, §6.4(c)
• IRS Publication 1771 revision on donor acknowledgments, §24.2(b)
• IRS Publication 1828 Tax Guide for Churches and Religious Organizations, §§3.2, 23.1(c)
• IRS Publication 3833 Disaster Relief: Providing Assistance Through Charitable Organizations, §§2.2(a), 17.3(c)
• IRS Publication 4221–PF Compliance Guide for 501(c)(3) Private Foundations, §12.2
• IRS Publication 4779 Facts About Terminating or Merging Your Exempt Organization, §12.4(h)
• IRS Revenue Bulletin, §18.5
• IRS Tax-Exempt and Government Entities (TE/GE) Division, §18.0
• IRS Tax Guide for Churches and Religious Organizations, §25.2(b)

• J
• Jeopardizing investments
  • abatement of tax penalty, §16.4(c)
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations, Exh. 19.11
  • double jeopardy in case of, §16.4(d)
  • examples of prudent and, §16.2(b)
  • identifying jeopardy, §16.2(a)
  • issues to consider, §16.2
  • made on advice of counsel, §16.4(b)
  • penalty taxes on, §16.4
  • prudent investor rules to avoid, §16.2(a)
  • removal from, §16.4(b)
  • when the manager knows it is a, §16.4(a)

• Jockey Club, §8.2
• Joint ventures
  • examples of trouble-free, §22.2(c)
  • Plumstead Theatre Society decision on acceptable, §20.9
  • private inurement issue of, §20.9

• Junior chambers of commerce, §6.2

• K
• Kansas City Royals baseball team, §§2.2, 4.3
• Kemp commission project, §23.1.(b)
• Kermit Fischer case, §14.4(a)

• L
• L3C (low-profit limited liability company)
  • description and purpose of, §1.7(d)
  • program-related investment made with, §16.3

• Labor organizations
  • IRC description of, Exh. 1.1
  • IRS Publication 557 Tax Exempt Status for your Organization, §7.1(a)
  • membership, §7.1(e)
  • non-(c)(5) activities, §7.1(c)
  • organizational structure and documents, §7.1(a)
  • political activities permitted by, §§7.1(d), 23.3(c)
  • qualifying under §501(c)(5), §7.1
  • scope of activities, §7.1(b)

• Lambda Legal Defense and Education Fund, §5.1(b)
• Lapham Foundation, §11.6(c)
• LaVey, Anton Szandor, §3.0
• The Law of Fundraising, §24.5
• The Law of Tax-Exempt Healthcare Organizations, 4th Edition (Wiley Nonprofit Series), §4.6(a)
• The Law of Tax-Exempt Organizations (Hopkins), §1.0
• Lawyer Trust Account Fund, §10.3(e)
• Legal cases
  • American Campaign Academy, §2.1(e)
  • Better Business Bureau, §§3.1(b), 4.2(b)
  • Big Mama Rag, Inc. (1980), §5.1
  • De La Salle Institute, §3.2(b)
  • Redlands Surgical Services (RSS), §§4.6(a), 4.6(c)
  • Westward Ho, §2.2(a)

• Legislation
  • definition of, §23.4(d)
  • grassroots lobbying on, §23.4(e)
  • IRC §4911(d) on meaning of influencing, §23.4(e)
  • nonpartisan analysis of a specific, §23.4(e)

• Legislative statutes
  • California's Nonprofit Integrity Act (2005), §24.5
  • Federal Election Campaign Act (FECA), §§23.0, 23.3, 23.3(c)
  • Federal Employee Health Benefits Act (FEHBA), §7.1(e)
  • Federal Insurance Contributions Act, §10.2
  • Lobbying Disclosure Act (1995), §23.6
  • Omnibus Budget Reduction Act (1993), §21.10(a)
  • Patient Protection and Affordable Care Act, §§2.2(i), 4.6, 4.6(j)
  • Pension Protection Act of 2006 (PPA), §§4.2(b), 11.3(e), 12.1, 13.1(a), 13.2, 16.1
  • Protecting Americans from Tax Hikes Act of 2015 (PATH Act), §6.2(a)
  • Revenue Reconciliation Bill (1993), §24.2(a)
  • Sarbanes-Oxley Act, §20.10(c)
  • Tax Cuts and Jobs Act (2018), §§10.2, 13.1(h), 13.2(b), 13.8, 20.0, 20.10(j), 21.11
  • Tax Hikes Act (2015), §18.1(c)
  • Tax Reform Act (1986), §§4.2(a), 4.6(f)
  • Texas Charitable Immunity and Liability Act (1987), §1.7(a)

• Licensing
  • treated as royalty payment by Tax Court, §21.10(d)
  • use of organization's name, §21.8(c)
  • See also Royalties

• Limited liability companies (LLCs)
  • alliances with investors, §22.2(a)
  • establishing a, §1.7(d)
  • Guide Sheet (2007) issued for, §2.1(g)
  • organizational test applied to, §2.1(g)
  • programs conducted under POF, §15.5(a)
  • unrelated business income aspect of, §22.2(d)
  • valuation of interest in a, §15.2(e)

• Limited liability partnerships (LLPs), §22.2(a)
• Line of business, §§8.3, 8.3(a)
• Literary organizations, Exh. 1.1
• Literary purposes, §5.2
• Little League, §5.5
• Loan program distributions, §15.4(f)
• Loans
  • interest-free, §§14.3(b), 25.3(g)
  • lending money to or borrowing from an insider, §20.6
  • PF expenditure documentation policy on debt payments, Exh. 14.3
  • self-dealing, §14.3
  • SOs and unreasonable compensation or, §11.6
  • to SOs from private foundations, §11.6(c)
  • subject to intermediate sanctions imposed on SOs, §11.6(g)
  • taxable period of an outstanding, §14.3
  • undoing self-dealing related to, §14.10(a)
  • See also Debt; Interest

• Lobbying
  • attribution between categories of exempt organizations, §23.1(d)
  • cost of, §6.5(g)
  • defining in IRC §4911, §23.4(c)
  • direct, §17.1
  • disclosures by trade, professional, and business leagues, §8.12
  • for an electing organizations, §23.4
  • for election parameters within IRC §501(h), §23.4(b)
  • expenditure test of IRC §501(h), §2.2(g)
  • germane, §17.1(a)
  • grants to public charities that engage in, §17.1(c)
  • grassroots, §§17.1, 23.4(e)
  • impermissible, §17.1
  • to influence legislation, §23.4(d)(e)
  • and influencing legislation by §501(c)(4) organizations, §6.5(b)
  • IRC §501(e)(3) organizations, §23.4
  • limitations for churches, §3.2
  • limits for §501(c)(4), (5), (6), and other EOs, §23.6
  • making available research results test to prepare for, §17.1(b)
  • nondeductible dues attributable to §501(c)(5) organizations, §7.4
  • permissible amounts of, §23.5
  • permissible political campaign committee expenses for, §23.3(a)
  • private foundations prohibited from, §11.1
  • a proxy tax on §501(c)(4) organizations, §6.5(e)
  • self-defense, §17.1(a)
  • sponsoring nonpartisan study of social issues to prepare for, §17.1(b)
  • substantial-part test of nonelecting EOs, §§23.4(a), 23.5(a)
  • summary of permissible activities, §17.1(d)
  • as taxable expenditure, §17.1
  • tax-exempt status and limitations to, §2.1(e)
  • what it is not, §23.4(e)
  • See also Advocacy; Political activities

• Lobbying Disclosure Act (1995), §23.6
• Lobbying expenditures
  • gross-up method for calculating, §6.5(g)
  • mechanical test for, §23.5(b)
  • penalty tax and revocation on excess, §23.5(c)
  • permissible under §501(h), §23.4
  • ratio method for calculating, §6.5(g)
  • §263A cost system for calculating, §6.5(g)

• Local association of employees
  • §501(c)(4) type 2 organization, §6.0
  • IRC description of, Exh. 1.1, §6.3
  • membership requirements, §6.3(a)
  • permissible activities, §6.3(b)

• Logo
  • qualified sponsorship payment for use of, §21.8(e)
  • use or acknowledgement of sponsor's name and, §21.8(e)

• Long-term care insurance benefits, §25.0
• “Look-back” method for AGB, §4.6(j)
• Look-back rule, §6.5(h)
• Low-cost articles (gift premiums), §21.9(g)
• Low-income housing projects, §4.2(a)
• Low-profit limited liability company (L3C)
  • description and purpose of, §1.7(d)
  • program-related investment made with a, §16.3

• Lutheran Social Service of Minnesota v. U.S., §3.2(c)

• M
• Mailing lists, §21.10(h)
• Managers
  • intermediate sanctions imposed on, §20.10(b)
  • participating and knowing in inurement transactions, §20.10(c)
  • rebuttable presumption of reasonableness excuse from sanctions, §20.10(f)

• Marketing agreements/covenants not to compete, §21.8(i)
• Meals
  • compensation through housing and, §20.4
  • reimbursement when away from home, Exh. 14.2

• Mechanical test for lobbying costs, §23.5(b)
• Medicaid, §4.6(j)
• Medical centers, §4.6(a)
• Medical clinics, §4.6(a)
• Medical research organization (MRO), §15.5(a)
• Medical residents, §25.1(e)
• Medicare fee-for-service, §4.6(j)
• Member inurement
  • IRC §501(c)(6) on business league, §8.7
  • IRC §501(c)(7) on social club, §9.2

• Members
  • agricultural group services to, §7.2(b)
  • business league, §8.7
  • business league services to, §8.4
  • IRC description of armed forces, Exh. 1.1
  • labor organizations, §7.1(e)
  • local association of employees, §6.3(a)
  • political communication sent directly to, §23.4(e)
  • privileges of, 24.3(b)
  • social club, §9.3

• Member services
  • member benefit issue of, §20.8(c)
  • providing public benefit, §20.8(a)
  • rendered to board members and related parties, §20.8
  • unrelated business income from, §21.8(b)
  • when private benefit is found, §20.8(b)
  • See also Services

• Membership fees
  • disclosure of nondeductivility [§501(c)(4) organizations], §6.5(d)
  • member privileges as benefit of, 24.3(b)
  • reimbursement of conference registration fees and, Exh. 14.2
  • self-dealing and PF payment of church, §14.5(c)
  • support from, §11.5(c)

• Memorial funds of community funds, §11.3(a)
• Merchandise. See Goods/merchandise
• Mergers and other combinations
  • carryover basis of, §26.1(a)
  • conversion to a for-profit, §26.1(d)
  • other types of transformations, §26.1(c)
  • overview of, §26.1
  • public charity status of, §26.1(a)
  • seeking IRS approval for distribution in termination of assets, §26.1(b)
  • tax attributes of, §26.1(a)
  • virtual mergers, §26.1
  • See also Partnerships

• Methodology tests
  • to determine the educational nature of a program, §5.1(k)
  • for impermissible advocacy, §5.1

• Michigan Education Trust case, §§10.2, 10.3(e)
• “Minimum distribution” requirement of PFs, §11.1
• Minimum distribution requirements (IRC §4942)
  • assets used to calculate minimum investment return for PFs, §15.1
  • distributable amount, §15.3
  • measuring fair market value for, §15.2
  • minimum required for private foundations (PFs), §2.2(b)
  • private operating foundations (POFs), §15.5
  • qualifying distributions, §15.4

• Ministers
  • employment tax issues related to, §25.2
  • exempt from income tax and Social Security tax withholding, §25.2(b)
  • housing allowances, §25.2(b)
  • IRC definition of, §25.2(a)
  • IRS Tax Guide for Churches and Religious Organizations, §25.2(b)
  • subject to self-employment taxes, §25.2(b)
  • See also Churches

• Mission-related investments (MRIs), §16.3
• Mission statements
  • governance compliance with written, §2.2(k)
  • IRS Form 990 inclusion of information on, §18.2(b)
  • The Satanic Temple, §3.1(b)
  • website information including, §2.2(j)

• Modest organizations
  • description of, §18.1(c)
  • need not file for exemption, §18.1(c)

• Mondale, Walter, §23.2(b)
• Monthly security valuation method, §15.2(d)
• “More-than-incidental” test, §22.2(d)
• Mortgage assistance organizations, §4.2(b)
• Museum of Flight Foundation case, §21.6(a)
• Museums
  • Bob Joes University Museum, §5.1(b), 5.1(h)
  • educational purposes of libraries, zoos, and, §5.1(h)
  • fragmentation and exploitation rules governing, §21.13
  • identifying related and unrelated objects, §21.13(a)
  • Museum of Flight Foundation case, §21.6(a)
  • operational test, §2.2
  • original works of art, §21.13(b)
  • sale of art objects by, §5.1(i)
  • seeking ruling on self-dealing, §14.2(c)
  • self-dealing related to private foundation operating a, §14.7(b)
  • travel tours, §21.14
  • See also Educational organizations

• Mutual ditch or irrigation companies, Exh. 1.1
• Mutual insurance companies or associations, Exh. 1.1
• Mutual or cooperative telephone companies, Exh. 1.1
• Mutual reserve funds, IRC description of, Exh. 1.1

• N
• Name recognition issue, §14.5(e)
• National amateur sports competition, §§5.5, 6.2, Exh. 1.1
• National Association of Attorneys General (NAAG), §24.5
• National Association of Postal Supervisors’ (NAPS) health insurance activity case, §7.1(e)
• National Association of State Charities Officials (NASCO), §24.5
• National Center for Charitable Statistics (NCCS) [Urban Institute], §24.5
• National Charities Information Bureau, §24.5
• National College Athletic Association (NCAA) case, §§21.6(a), 21.8(d), 21.8(h)
• National Council of Nonprofits, §24.5
• National Education Association (NEA) case, §21.15(c)
• National Institutes of Health, §5.4
• The Nationalist Movement (TNM), §§5.1, 5.1(k)
• National or international amateur sports competition organizations, Exh. 1.1
• National Prime Users Group and Guide International cases, §8.3(a)
• National railroad retirement investment trusts, Exh. 1.1
• National Republican Congressional Trust, §2.1(e)
• NCAA case, §21.8(d)
• Needy and distressed test, §17.3(c)
• Neighborhood associations. See Civic organizations
• Nestlé boycotting case, §23.7
• Net earnings, meaning of, §20.1(c)
• Net operating losses (NOLs), §21.11
• Net profit agreements, §22.4(c)
• New Faith, Inc., §2.2(a)
• Newman's Own business, §16.1(a)
• New York State Bar Association (NYSBA) report [2009], §13.3(b)
• New York Stock Exchange, §15.2(d)
• New York University Law School's spaghetti factory case, §21.2
• Noncash and in-kind grants, §15.4(d)
• Noncharitable expenditures, §17.7
• Nondeductible membership due, §6.5(d)
• Non-fair-market value transaction, §20.10(d)
• Nonpartisan study of social issues, §17.1(b)
• Nonpartisan voter registration, §2.1(e)
• Nonprofit Financial Planning Made Easy (Blazek), §§1.1(b), 1.6(b)
• Nonprofit hospitals. See Hospitals
• Nonprofit Integrity Act (2005) [California], §24.5
• Nonresident aliens withholding requirements, §25.3(d)
• Nontaxed capital gains, §13.2(c)
• Nonvoting stock, §16.1(b)
• Non–§501(c)(3) organizations
  • Annual Tax Compliance Checklist for Non-§501(c)(3) Organizations, Exh. 19.4
  • converting into an exempt nonprofit, §20.7
  • expenditure responsibility grants to, §17.6
  • motivations to establish (c)(3) organizations by, §22.1
  • private foundation grants made to, §17.6
  • See also Charitable organizations

• North American Industry Classification System (NAICS), §21.11
• North Ridge Country Club case, §9.5(c)
• Note receivable valuation, §15.2(e)
• Notice of noncharity status, §6.5(a)
• Not to compete covenants/marketing agreements, §21.8(i)

• O
• of art objects (museum), §5.1(i)
• Office equipment
  • depreciation of, §21.11
  • as exempt function assets, §15.1(c)
  • PF expenditure documentation policy on, Exh. 14.3
  • valuation of, §15.2(e)

• Office facilities
  • as exempt function assets, §15.1(c)
  • for-profit corporate subsidiary sharing employees and/or, §22.3(c)
  • PF expenditure documentation policy on, Exh. 14.3

• Office space
  • PF expenditure documentation policy on, Exh. 14.3
  • private foundations that share, §14.7(a)

• Offshore hedge funds
  • analysis of, Exh. 182
  • reporting, §18.2(g)

• Offshore investment reporting, §18.2(g)
• of merchandise, §21.7(b), Exh. 21.4
• Olympic Games, §5.5
• Omnibus Budget Reduction Act (1993), §21.10(a)
• $1,000 annual exemption, §21.11
• On-way-street concept, §1.5(d)
• Operational test [§501(c)(3)]
  • action organizations, §2.2(g)
  • amount of charitable expenditures, §2.2(b)
  • Annual Tax Compliance for Tax-Exempt Organizations––Short Form on, Exh. 19.3
  • business activity, §2.2(e)
  • charitable class, §2.2(a)
  • commensurate test, §2.2(d)
  • economic substance, §2.2(i)
  • feeders and the integral part test, §2.2(h)
  • governance, §2.2(k)
  • importance of sources of support, §2.2(f)
  • income accumulations, §2.2(c)
  • international activities, §2.2(i)
  • Internet use, §2.2(j)
  • study on four factors of IRS denials based on, §2.2(e)
  • tax-exempt qualification and examples of, §2.2

• Operational test [§509(a)(3)(A)], §11.6
• Orange County Agricultural Society, §21.3
• Ordinary and necessary tax deductions, §21.11
• Ordinary losses, §13.3(a)
• Organ donor retrieval centers, §4.6(a)
• Organizational changes reporting
  • classification of the organization, §18.5
  • fiscal or accounting year, §18.3(b)
  • Form 8940 for, §18.3(a)
  • IRC §509(a) class issues, §§11.5, 18.3(e)
  • using Forms 990, 990-PF, or 990–EZ for, §18.3

• Organizational test (Form 1024), §7.1(a)
• Organizational test of [§501(c)(3)]
  • Annual Tax Compliance for Tax-Exempt Organizations––Short Form on, Exh. 19.3
  • on charter, constitution, or instrument, §2.1(a)
  • description of the, §20.0
  • dissolution clause, §2.1(b)
  • inurement clause, §2.1(c)
  • limited liability companies (LLCs), §2.1(g)
  • political activities, §2.1(e)
  • private foundations, §2.1(f)
  • purpose clause, §2.1(d)
  • tax-exempt qualification using, §2.1

• Organizational test of [§509(a)(3)(A)], §11.6
• Organization Reference Chart, Exh. 1.1
• Over-the-Counter Bulletin Board (OTCBB), §15.2(d)
• Owens, Marcus S., §5.1(b)
• Ownership
  • constructive, §16.1(d)
  • excess business holdings and corporate, §16.1(b)

• P
• Pan-American Games, §5.5
• Park beautification groups, §6.2
• Parking lot rental, 21.10(c)
• Partnerships
  • as alternative to co-owning and self-dealing, §14.2(e)
  • excess business holdings in, §16.1(c)
  • interim and transition rules for investments in, §21.11
  • limited liability partnerships (LLPs), §22.2(a)
  • private foundations (PFs) income earned by, §13.1(g)
  • prudent vs. jeopardizing investments in, §16.2(b)
  • unrelated business income aspect of, §22.2(d)
  • unrelated income modification from, §21.10(g)
  • valuation of interest in a, §15.2(e)
  • See also Mergers and other combinations; Relationships

• Passive activity loss limitation, §21.11
• Passive foreign investment companies (PFICs), §§13.1(h), 18.2(g)
• Passive holding company, §16.1(a)
• Passive investments, §10.4(a)
• Patent gifts, §24.1(b)
• Patent ownership, §5.3(a)
• Patient Protection and Affordable Care Act, §§2.2(i), 4.6, 4.6(j)
• Patients
  • actions that may be taken in event of nonpayment by, §4.6(j)
  • basis for amounts generally billed (AGB) to, §4.6(j)
  • hospital financial assistance policy (FAP) for, §4.6(j)
  • Patient Protection and Affordable Care Act, §§2.2(i), 4.6, 4.6(j)
  • See also Hospitals

• Payroll deductions for donations, §24.2(b)
• Payroll depository requirements, §25.3(e)
• Pennsylvania Avenue Development Corporation, §10.1
• Pension Benefit Guaranty Corporation (PBGC), §10.1, 21.5
• Pension Protection Act of 2006 (PPA)
  • on disqualified persons (DPs), §12.1
  • on excess business holdings, §16.1
  • on exempt function assets, §13.2
  • impact on community foundations (CFs), §11.3(e)
  • on income subject to unrelated business income tax (UBIT), §13.1(a)
  • on social welfare organizations, §4.2(b)

• Performing arts organizations, §5.1(g)
• Peripheral religious activities, §3.1(c)
• Personal services
  • different types of, §14.4
  • IRC §4941(d)(2)(E) on, §14.4

• Phantom income, §13.3(b)
• Physician clinics, §4.6(d)
• Physician recruitment plans, §4.6(b)
• Planned gifts, §24.1(d)
• Plumstead Theatre Society case, §20.9
• Political action committees (PACs)
  • business, trade, or professional associations, §8.12
  • corporate matching fund gifts to, §24.1(c)
  • IRC on exempt function for, §23.3(a)
  • IRS Forms to file to disclose contributions to, 23.3(d)
  • permissible involvement in, Exh. 23.1
  • segregated funds or, §23.3(c)
  • triumvirate of, §22.2(e)
  • See also Political organizations

• Political activities
  • electioneering prohibition, §§5.1, 6.2(a), 23.1, 23.2(c)
  • exempt-status limitations to, §23.0
  • IRC §4955 imposing penalty tax on (c)(3) organization, §23.0
  • IRS Fact Sheet 2006–17 Prohibited Political Campaign Activities of EOs on, §23.3(e)
  • IRS guidance on, §23.3(e)
  • labor unions, §§7.1(d), 23.3(c)
  • organization test on, §2.1(e)
  • permissible PAC involvement, Exh. 23.1
  • political expenditures, §§23.1, 23.2(d), 23.3
  • voter education, §23.2
  • See also Lobbying

• Political campaign activity
  • definition of, §23.1
  • electioneering prohibition, §§5.1, 6.2(a), 23.1

• Political expenditures
  • definition of, §23.1
  • Forms 8871 and 8872 to disclose campaign contributions, §23.3(d)
  • mechanical test for lobbying costs, §23.5(b)
  • penalty tax and revocation on excess lobbying, §23.5(c)
  • penalty tax on (c)(3), §23.2(d)
  • tax on, §23.3

• Political organizations
  • Annual Tax Compliance Checklist for §527 Political Organizations, Exh. 19.7
  • exempt activities focus on selection process, §23.3(a)
  • IRC §527 on taxing expenditures or net investment income of, §23.3(b)
  • IRC description of, §23.3(a), Exh. 1.1
  • qualified state or local political organization (QSLPO), §23.3(d)
  • See also Political action committees (PACs)

• Political subdivisions
  • affiliates of, §10.3(g)
  • debate over interpretation of what constitutes, §10.3(d)
  • definition of, §10.2
  • income from a trust created by, §10.2
  • Indian tribal government as a, §10.2
  • sovereign powers of, §10.3(d)

• Ponzi scheme losses, §13.3
• Pooled income funds, §§11.3(a), 24.1(d)
• Portfolio reports valuation method, §15.2(d)
• Portland Golf Club case, §9.5(c)(e)
• Power of appointment, §16.1(d)
• Pre-grant inquiry, §17.6(a)
• Pre-Grant Inquiry Checklist, Exh. 17.7
• Prevention of cruelty to children or animal organizations, §5.6, Exh. 1.1
• Primariness measure, §2.2(e)
• Princeton's “male-only” social clubs case, §9.3(a)
• Print publishing projects, §5.1(j)
• Prison Industries, Inc., §4.3
• Private business use (PBU), §5.4
• Private colleges and universities, tax on, §13.8
• Private foundation excise taxes
  • annually filed Form 990–N on, §11.1
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • based on investment income, Ch.13
  • calculating the, §15.6(d)
  • Form 4720 Return of Certain Excise Taxes on Charities, §12.2(b)
  • historic background of, §13.0
  • imposed upon self-dealing cannot be abated, §14.10
  • paying the §4958 imposed, §20.10(h)
  • prohibition of PF paying excise taxes imposed on DP, §14.5(b)
  • tax-planning ideas, §13.5
  • of 20 percent of any taxable expenditure, §17.8
  • 2 percent excise tax, §§13.0, 13.1(f)
  • when an organization loses tax-exempt status, §18.5
  • who pays for self-dealing penalty, §14.10(c)
  • See also Private foundation taxes

• Private foundation grants
  • expenditure responsibility, §17.6
  • fiscal agents to an intermediary organization, §17.4(d)
  • going to public charities, §17.4
  • Grant Agreement, Exh. 17.5
  • Grant Approval Checklist for different organization types, Exh. 17.2
  • Grant Payment Transmittal Letter, Exh. 17.4
  • grants-in-aid programs, §17.3(c)
  • individual, §§15.4(f), 17.3
  • made on condition of PF name recognition, §14.5(e)
  • made to non-(c)(3) organizations, §17.6
  • to supporting organizations, §11.6(c)

• Private foundations (PFs)
  • §509 distinguishing between public charities and, §§2.0, 11.1, Exh. 11.1
  • Annual Tax Compliance Checklist for Private Foundations (PFs), Exh. 19.5
  • Annual Tax Compliance Checklist for Private Foundation––Short Form, Exh. 19.6
  • application of taxes to certain nonexempt trusts, §12.3
  • Checklist for Alternative Investments of Tax-Exempt Organizations Including Private Foundations, Exh. 19.11
  • company scholarship plans, §17.3(e)(f)
  • comparing donor-advised funds (DAFs), supporting organizations, and, Exh. 11.4
  • conversion of public charity into, §12.4(g)
  • conversion of supporting organizations to, §11.6(e)
  • cumulative list of substantial contributions, Exh. 12.2
  • deductibility and disclosures, Ch. 24
  • disaster relief activities, §§2.2(a), 17.36(c), 24.1(a), 25.1(e)
  • dormancy of, §2.2(a)
  • excess business holdings of, §16.1
  • expenditure documentation policy of, Exh. 14.3
  • expense reimbursement policy of, Exh. 14.2
  • family members, §12.2(c)
  • foreign, §§12.4(a), 13.6
  • formula for taxable income, §13.1
  • foundation managers, §12.2(c)
  • gifts received by SOs from, §11.6(c)
  • government officials and, 12.2(c)
  • Grant Approval Checklist, Exh. 17.2
  • grant made on condition of name recognition, §14.5(e)
  • grants made to public charities from, §17.4
  • international activities of, §2.2(i)
  • IRC §4940(b) on taxable income of, §13.0
  • IRC description of, Exh. 1.1
  • IRS Publication 4221–PF Compliance Guide for 501(c)(3) Private Foundations on, §12.2
  • lending money to or borrowing from an insider, §20.6
  • mergers, §12.4(e)
  • minimum distribution requirement, §§2.2(b), 15.6
  • organization test applied to, §2.1(f)
  • other private foundations related to, 12.2(c)
  • partnerships of, §13.1(g)
  • penalties imposed on violations of sanctions, §12.1
  • property co-owned by disqualified person and, §14.2(d)
  • the reasons they are special, §12.1
  • self-dealing prohibition, §12.2(c), Ch.14
  • special deduction limitations for, §24.1(b)
  • special rules pertaining to, §12.2
  • special sanctions, §11.2(b)
  • split-interest trusts, §§11.5(c), 13.1(f)
  • substantial contributors, §12.2(c), Exh. 12.2
  • taxable expenditures under IRC §4945, Ch.17
  • thirty-five-percent-plus business, §12.2(c)
  • transfers to a public charity or between PFs, §12.4, Exh. 12.4
  • twenty percent owners, §12.2(c)
  • See also Disqualified persons (DPs); Exempt organizations (E0s); Foundations

• Private foundation successor organizations, §17.6(c)
• Private foundation taxes
  • due to failed termination, §12.4(d)
  • formula for taxable income, §13.1
  • tax attributes transferred to successor PF, Exh. 12.5
  • tax-planning ideas, §13.5
  • who pays for self-dealing penalty, §14.10(c)
  • See also Private foundation excise taxes

• Private foundation termination
  • conversion into a public charity, §12.4(d)
  • conversion to a taxable entity, §12.4(f)
  • notifying the IRS under §507, §§12.4, 12.4(h)
  • 60-month termination, §12.4(d)
  • transfers between private foundations, §12.4, Exh. 12.4
  • voluntary and involuntary, §12.4

• Private operating foundations (POFs)
  • active charitable programs, §15.5(a)
  • adjusted net income, §15.5(e)
  • advantages and disadvantages of, §15.5(g)
  • application of qualifying distributions and carryovers, Exh. 15.1
  • compliance period, §15.5(f)
  • conversion to or from POF status, §15.5(h)
  • description of, §§12.2(a), 15.5
  • differences between public and, Exh. 1.1
  • grants to other organizations, §15.5(b)
  • individual grant programs, §15.5(c)
  • IRS “Adjustments of Excess Distribution Carryovers from Closed Years”, §15.6(a)
  • tests to qualify as a, §15.5(d)

• Prizes made to individuals, §17.3(b)
• Professional associations
  • comparison to §501(c)(5) organizations, §8.9
  • disclosures for lobbying and nondeductibility, §8.12
  • formation of related charitable organizations, §8.11
  • recognition of exempt status, §8.10

• Professional sports leagues, §8.2
• Professional standards review organizations (PSROs), §4.6(h)
• Profit motive test, §§21.4(a), 21.11
• Programs
  • grants-in-aid, §17.3(c)
  • IRS Form 990 inclusion of accomplishments of, §18.2(b)
  • loan, §15.4(f)
  • private operating foundations (POFs) active charitable, §15.5(a)
  • program-related investments [§4944(c)], §§13.2, 15.4(f), 16.3
  • self-sponsored charitable program expenditures, §15.4(f)

• Program–related investments (PRIs)
  • as defined in IRC §4944(c), §13.2
  • grantee report on, §17.6(c)
  • grant terms specific to, §17.6(b)
  • how they are treated under IRC §4944(c), §16.3
  • made with low-profit limited liability company (L3C), §§1.7(d), 16.3
  • as qualifying distribution, §15.4(f)
  • record-keeping requirements for, §17.6

• Progress and Freedom Foundation, §5.1
• Property
  • co-owned by foundation and DP, §14.2(d)
  • debt-financed, §21.12
  • deduction amount as the fair market value (FMV), §24.1(b)
  • deduction for tangible personal, §24.1(b)
  • donation of indebted, §§14.3(a), 24.1(a)
  • estate administration exception to self-dealing, §14.9
  • exchanges or transfer of, §14.2(b)
  • fair market value (FMV) of, §§15.2, 20.5, 20.10(d)
  • furnishing or use of, §14.2(c)
  • gifts of patents and other intellectual property, §24.1(b)
  • held by fiduciaries, §14.9
  • investment asset of dual-use, §15.1(d)
  • purchase, lease, or sale of services or, §20.5
  • related business activity of sale of goods or merchandise, §21.7(b), Exh. 21.4
  • self-dealing prohibition related to, §14.2
  • 30 percent limit for donated capital gains, §24.1(b)
  • transactions through agents, §14.2(a)
  • undoing self-dealing uses of, §14.10(a)
  • usual market place standard of donated, §24.1(b)
  • See also Assets; Real estate

• Proprietorships, §16.1(c)
• “Prospective” method for AGB, §4.6(j)
• Protecting Americans from Tax Hikes Act of 2015 (PATH Act), §6.2(a)
• Proxy tax, §6.5(e)
• Prudent investments
  • examples of jeopardizing and, §16.2(a)
  • prudent investor rules for, §16.2(a)

• Pseudoreligious groups, §3.1(e)
• Public charities
  • §509 distinguishing between private foundations and, §§2.0, 11.1, Exh. 11.1
  • bankruptcy, §26.2
  • ceasing to qualify as a, §18.3(e)
  • change in category due to support change, §11.5(e)
  • community foundations (CFs), §§2.2, 4.3, 11.3
  • conversion into a private foundation, §12.4(g)
  • conversion of private foundation into, §12.4(d)
  • conversion to a for-profit, §26.2(d)
  • deductibility and disclosures, Ch. 24
  • disaster relief activities, §§2.2(a), 17.3(c), 24.1(a), 25.1(e)
  • donative, §§11.2, 11.2(f), Exh. 11.3
  • dormancy of, §2.2(a)
  • facts-and-circumstances test, §11.2(g)
  • Grant Approval Checklist for PF grants to, Exh. 17.2
  • Grant Payment Transmittal Letter on grant going to, Exh. 17.4
  • grants made by private foundations to, §17.4
  • grants to those that lobby, §17.1(c)
  • intermediate sanctions for paying excess benefits to individuals, §12.1
  • international activities of, §2.2(i)
  • IRC description of different types of, §§11.0, 17.4(b), Exh. 1.1
  • PF grant made on condition of name recognition, §14.5(e)
  • relationship between organizations and category of, §22.1(b)
  • significance for tax exemption under §501(c)(3), §11.0
  • termination of, §26.3
  • testing for public safety §509(a)(4), §11.7
  • transfer of private foundation assets to a, §12.4(c)
  • unusual grants, §11.2(h)
  • See also Exempt organizations (E0s); Supporting organizations (SOs)

• Public charities organizations [IRC §509(a)(1)]
  • change of public charity category, §11.2(e)
  • churches category of, §11.2(a)
  • college and university support organizations category of, §11.2(d)
  • definition of support, §11.5(a)
  • donations/grants not counted, §11.5(b)
  • donative public charities §170(b)(1)(a)(vi) category of, §11.2(f)
  • FASB standards impacting revenue recognition for grants, §11.2(g)
  • funds received as agent, §11.5(d)
  • governmental unit category of, §11.2(e)
  • hospitals and medical research organizations category of, §11.2(c)
  • “inherently public activity” and public support of, §11.2
  • loss of public status, §11.2(f)
  • schools category of, §11.2(b)
  • types of support, §11.5(c)
  • unusual grants, §11.2(h)

• Public charities organizations [IRC §509(a)(2)]
  • change of public charity category, §11.2(e)
  • definition of support, §11.5(a)
  • differences between §501(a)(1) organizations and, §11.5
  • donations/grants not counted, §11.5(b)
  • FASB standards impacting revenue recognition for grants, §11.2(g)
  • funds received as agent, §11.5(d)
  • loss of public status, §11.2(f)
  • public charities with revenues from charges for exempt services, §11.0
  • service-providing organizations, §11.4
  • types of support, §11.5(c)

• Public charity status
  • Annual Tax Compliance Checklist for §501(c)(3)Public Charity, Exh. 19.1
  • churches and, §§3.2(a), 17.4(b)
  • determination process of, §18.1(e)
  • loss of, §§11.5(f), 17.4(a)
  • maintaining exempt status, Ch.19
  • mergers and combinations, §26.1(a)
  • proof of, §17.4(a)
  • recognition of foreign organization, §17.5(a)
  • the reliance issue, §17.4(c)
  • tipping as being when PF grant causing loss of, §17.4(c)
  • 2010 §501(c)(3) Public Charity Tax Preparer Checklist, Exh. 19.2
  • See also Exempt status

• Public entertainment activities, §21.9(e)
• Public facilities
  • examples of use that are not self-dealing, §14.7(b)
  • self-dealing related to private foundation, §14.7(b)

• Public interest law firms (PILFs), §4.2(d)
• Public safety testing, §§5.4, 11.7
• Public support test, §11.3(d)
• Publishing
  • commercial-quality publications (CQPs), §24.3(a)
  • controversial materials, §5.1(k)
  • print and electronic, §5.1(j)

• Publishing organizations
  • advertising by, §21.15(a)
  • circulation income, §21.15(c)
  • commercial publication programs, §21.15(d)
  • exempt status of educational, §21.15
  • funding a first-grade reading program, §24.1(c)
  • readership versus ad lineage costs, §21.15(b)

• Purpose clause (organizational test), §2.1(d)

• Q
• Quakers, §25.2(c)
• Qualified appraisal report, §24.1(b)
• Qualified appreciated stock, §§13.5(c), 24.1(b)
• Qualified electing fund (QEF) election, §18.2(g)
• Qualified fund-raising, §24.3(a)
• Qualified scholarship payments, §25.1(e)
• Qualified sponsorship payment, §21.8(e)
• Qualified state or local political organization (QSLPO), §23.3(d)
• Qualified State Tuition Programs (IRC §529), §§5.1(a), 10.2
• Qualifying bingo games, §§21.8(j), 21.9(d), 24.4, 25.3(f)
• Qualifying distributions
  • community foundation grants, §15.4(c)
  • controlled grantees and redistributions, §15.4(b)
  • definition of, §15.4
  • direct charitable expenditures, §15.4(f)
  • direct grants, §15.4(a)
  • distributions to foreign recipients, §15.4(e)
  • noncash and in-kind grants, §15.4(d)
  • set-asides, §15.4(g)

• Qualifying ministers, §25.2(a)
• Quality Auditing Company, §5.4
• Quasi-governmental entities
  • disadvantages of §501(c)(3) status, §10.3(a)
  • qualifying for IRC §501(c)(3) status, §10.3
  • See also Governmental units

• Quid pro quo contributions
  • charity auctions and raffles, §§24.2(c), 25.3(f), Exh. 24.2
  • disclosure rules, §24.2(c)
  • failure to disclose and reasonable cause exception, §§6714(b), §24.2(c)
  • failure to disclose tax penalty, §§6714(a), §24.2(c)

• Quotation system valuation method, §15.2(d)

• R
• Race discrimination. See Discrimination
• Raffle tickets, §24.2(c), Exh. 24.2
• Real estate
  • distinguishing ordinary course of business vs. investment asset, §21.8(g)
  • donations of indebted property or, §§14.3(a), 24.1(a)
  • fair market value (FMV) of property and, §§15.2, 20.5, 20.10(d)
  • private foundation cannot buy or sell, §11.1
  • public and private foundations and appreciated, §11.1
  • purchase, lease, or sale of services or, §20.5
  • purchase of unimproved, §16.2(b)
  • redistributing donated property, §13.5(c)
  • self-dealing prohibition related to, §14.2
  • taxable rents from, §13.1(d)
  • tax for distributing, rather than selling, §13.5(a)
  • 30 percent limit for donated capital gains, §24.1(b)
  • timber standing on, §21.10(b)
  • See also Assets; Property

• Real estate boards, Exh. 1.1
• Real estate sales
  • capital gains of social club real estate, §21.10(b)
  • formula for calculating capital gains and losses in, §21.12(d)
  • purchase, lease, or sale of services or, §20.5
  • self-dealing prohibition related to, §14.2
  • social clubs, §9.5(h)
  • tax consequences of, §21.8(g)
  • tax on gain from the of, §13.2(b)
  • title-holding corporations (THCs), §10.4(a)
  • transactions through agents, §14.2(a)
  • See also Sales

• “Reasonable, good-faith interpretation” standard, §21.11
• Rebuttable presumption of reasonableness, §20.10(f)
• Recoverable grants, §16.3
• Recreational or hobby groups, §8.3(c)
• Recreation clubs, Exh. 1.1
• Redistributions
  • controlled grantees and, §15.4(b)
  • reporting issues, §15.4(b)

• Redlands Surgical Services (RSS) case, §§4.6(a), 4.6(c)
• Referral fees from online vendors, §21.8(j)
• Reg. §1.103–1(b), §10.2
• Reg. §1.170A–9(f)(6)(ii), §11.2(h)
• Reg. §53.4942(b)-1(b)(2)(ii), §11.6(c)
• Reimbursement of expenses
  • examples of nonreimbursable expenses, Exh. 14.2
  • policy for private foundations, Exh. 14.2

• Related business activities, §21.7
• Relationships
  • active business, §22.4
  • alliances with investors, §22.2
  • corporate subsidiaries, §§21.10(e), 22.3
  • joint ventures, §§20.9, 22.2(c)
  • See also Affiliates; Partnerships

• Religious and apostolic associations, §3.4, Exh. 1.1
• Religious orders, §3.3
• Religious organizations
  • IRC description of, Exh. 1.1
  • IRS Publication 1828 Tax Guide for Churches and Religious Organizations, §3.2
  • IRS Tax Guide for Churches and Religious Organizations, §25.2(b)
  • IRS Technical Advice Memo distinguishing between a church and, §3.2(b)
  • legal history of, §3.0
  • types of, §3.1
  • See also Churches

• Religious organization types
  • examples of qualifying organizations, §3.1(b)
  • ideology or dogma not essential, §3.1(a)
  • peripheral religious activity, §3.1(c)
  • pseudoreligious groups, §3.1(e)
  • religious and apostolic associations, §3.4
  • religious orders, §3.3
  • secular groups, §3.1(d)

• Rental income, §§13.1(d), 21.8(a), 21.10(c)
• Request for Abatement Regarding Underdistribution, Exh. 15.2
• Research income, §21.10(f)
• Research or study grants, §§17.1(b), 17.3(d)
• Restatement of the Law, Trusts: Prudent Investor Rule (ALI), §16.2(a)
• Revenue
  • earned and unearned types of §501(c), §21.0
  • Form 990–EZ used for under $50,000 gross, §1.5
  • income accumulations, §§2.2(c), 10.4(b)
  • nonprofit character of expected, §1.5(c)
  • operational test of §501(c)(3) on sources of support, §2.2(f)
  • requirements for civic league, §6.4
  • social club tests for qualifying, §9.4
  • sources of business league, §8.5
  • See also Unrelated business income (UBI)

• Revenue Reconciliation Bill (1993), §24.2(a)
• Revenue-sharing arrangements, §20.10(e)
• Revised Form 990 (Blazek), §21.11
• Rev. Rul. 57–128, §10.3(e)
• Rev. Rul. 60–384, §10.3(e)
• Rev. Rul. 80–282, §23.2(b)
• Rev. Rul. 97–21, §4.6(b)
• Rev. Rul. 98–15, §4.6(c)
• Reynolds v. United States, §3.0
• Roman Catholic Church parish case, §24.1(a)
• Royalties
  • licensing use of the organization's name, §21.8(c)
  • scientific research, §5.3(b)
  • taxable income from, §13.1(d)
  • unrelated business income modifications, 21.10(d)
  • See also Licensing

• S
• St. David's Health Care System, Inc., §4.6(c)
• Salary. See Compensation
• Sales
  • of art objects in museums, §14.6(c)
  • of goods and services on the Internet, §21.8(j)
  • related business activity of goods, §21.7(b), Exh. 21.4
  • See also Real estate sales

• San Antonio Bar Association case, §8.4(b)
• Sarbanes-Oxley Act, §20.10(c)
• The Satanic Temple, §§3.0, 3.1(b)
• Scholarship grants, §§17.3(b), 17.3(d)(e)(f), 25.1(e)
• Schools
  • athletic and entertainment events, §21.7(c)
  • college and university compliance check, §5.1(a)
  • cooperative educational service organizations, §5.1(d)
  • day care centers, §5.1(c)
  • educational purpose of, §5.1(a)
  • IRS Form 5578 filed by, §§5.1(b), 18.2(c)
  • “noneducational” activities of, §5.1(a)
  • publisher funding a first-grade reading program in, §24.1(c)
  • “Qualified State Tuition Programs”, §5.1(a)
  • race discrimination prohibition, §5.1(b)
  • “regular” elements of, §5.1(a)
  • travel tours by, §21.14

• Scientific organizations
  • IRC description of, Exh. 1.1
  • scientific purposes of, §5.3
  • testing for public safety, §5.4

• Scientific purposes
  • combined educational and, §5.3(a)
  • description of, §5.3
  • research in the public interest, §5.3(a)

• Scientific research
  • charitable organizations engaging in, §5.4
  • commercialization of results, §5.3(b)
  • in the public interest, §5.3(a)
  • royalty exclusion, §5.3(b)
  • special UBI exclusions, §5.3(b)
  • three components of, §5.3(a)

• S corporations, §21.10(g)
• Seasonal unrelated business activities, §21.6(b)
• Self-dealing corrections
  • defining amount involved, §14.10(b)
  • excise tax imposed cannot be abated, §14.10
  • stock redemptions and other permitted dealings, §14.10(b)
  • tax is calculated as of date of transaction, §14.10(b)
  • undoing the transactions, §14.10(a)
  • unreasonable compensation, §14.10(a)(b)
  • uses of property by a DP, §14.10(a)
  • who pays for penalty tax, §14.10(c)

• Self-dealing transactions
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • banks fees, §14.4(e)
  • commissions, §14.4(c)
  • compensation, §14.4, 14.10(a)
  • Compensation of Disqualified Person Checklist, Exh. 14.1
  • definition of, §14.1
  • definition of reasonable in context of, §14.4(a)
  • donation of indebted property, §§14.3(a), 24.1(a)
  • double jeopardy in case of, §16.4(d)
  • exceptions provided in regulations, §14.1(c)
  • exchanges, §14.2(b)
  • expenditure documentation policy of private foundations, Exh. 14.3
  • expense reimbursement policy for private foundations, Exh. 14.2
  • “family offices” and sharing space, people, and expenses, §14.7
  • furnishing or use of property, §14.2(c)
  • historic effort to prevent, §14.0
  • indirect acts of, §§14.8, 9
  • interest-free loans, §14.3(b)
  • intermediate sanctions connection, §14.4(b)
  • loans and, §14.3
  • partnerships alternative to co-owning, §14.2(e)
  • payments to government officials, §14.6
  • private foundation transfers are not, §12.4(e)
  • prohibition for private foundations, 12.2(c)
  • property held by fiduciaries, §14.9
  • sale, exchange, or lease of property, §14.2
  • statutory exceptions, §14.1(b)
  • statutory language on, §14.1(a)
  • transactions that benefit, §14.5
  • transactions through an agent, §14.2(a)
  • See also Inurement prohibition

• “Self-declarers” organizations, §18.1(c)
• Self-defense lobbying, §17.1(a)
• Self-employment taxes, §25.2(b)
• Self-sponsored charitable program expenditures, §15.4(f)
• Senior citizen center, §15.5(a)
• Service-providing organizations
  • description of, §11.4
  • difference between §509(a)(1) organizations and, §11.5

• Services
  • cooperative efforts and, 21.8(b)
  • deduction for personal, §24.1(b)
  • grant management, 21.8(b)
  • provided to an affiliated organization, 21.8(b)
  • provided to an unrelated nonprofit, 21.8(b)
  • revenue produced on the Internet, §21.8(j)
  • unrelated business income from, §§20.8, 21.8(b)
  • See also Goods; Member services

• Set-asides
  • failure to distribute minimum amounts, §15.4(g)
  • full-payment period minimum amount, §15.4(g)
  • for future POF projects, §15.5(a)
  • as qualifying distributions, §15.4(g)
  • start-up period minimum amount, §15.4(g)
  • type 1–suitability test, §15.4(g)
  • type 2–cash distribution test, §15.4(g)

• Sewing machine manufacturer donations, §24.1(c)
• The Shakers, §3.4
• Short-term capital gains, §§21.10(b), 24.1(b)
• Sierra Club, §§6.1(d), 21.10(d)
• Sierra Club Legal Defense Fund, §6.1(d)
• “Silo” rule, §21.11
• Single-entity test, §11.3(a)
• 60-month termination of private foundation, §12.4(d)
• Smiller, Steve, §2.2(k)
• Social club members
  • classes of membership, §9.3(b)
  • company memberships, §9.3(c)
  • direct inurement to members, §9.2(b)
  • discrimination against individual, §9.3(a)
  • inurement from nonmember revenues, §9.2(a)
  • inurement prohibited, §9.2
  • requirements for, §9.3
  • subterfuge clubs, §9.3(d)

• Social club organizations
  • examples of qualifying and nonqualifying clubs, §9.1(b)
  • PF grant made to, §17.6
  • purpose clause and activities, §9.1(a)

• Social club revenue
  • aggregating nonmember activities, §9.5(f)
  • charitable set-asides, §9.5(g)
  • how to measure profit motive, §9.5(e)
  • sale of real estate, §9.5(h)
  • tests related to, §9.4
  • unrelated business income tax (UBIT), §9.5

• Social club revenue tests
  • failing the test, §9.4(b)
  • gift tax for club gifts, §9.4(c)
  • qualifying, §9.4
  • 35/15 test, §9.4(a)

• Social clubs
  • capital gains from sale of real estate used by, §21.10(b)
  • filing and disclosure requirements, §9.6
  • IRC §501(c)(7) definition and tax attributes of a, §9.0, Exh. 1.1
  • member inurement prohibited, §9.2
  • membership requirements, §9.3
  • nonmember losses, §9.5(c)
  • organizational requirements and characteristics, §9.1
  • revenue tests, §9.4
  • unrelated business income tax (UBIT), §9.5

• Social issues research
  • making available results test, §17.1(b)
  • sponsoring nonpartisan study of, §17.1(b)

• Socially conscious investments (SCIs), §16.3
• Social Security taxes
  • IRC Student FICA exception, §25.1(e)
  • ministers exempt from, §25.2(b)
  • withholding requirements, §25.3(b)

• Social welfare
  • by charitable organizations, §4.2
  • IRC §501(c)(4) civic organization promoting, §§6.0, 18.1
  • IRC description of organizations promoting, Exh. 1.1
  • organizations that exclusively promoting, §§6.0, 6.2(a)

• Social welfare organizations
  • affiliated (c)(3) and (c)(4), §6.1(d)
  • comparing §501(c)(3) and §501(c)(4), §6.1
  • credit counseling and mortgage assistance, §4.2(b)
  • disclosures of nondeductibility, §6.5
  • economic development corporations (EDCs), §4.2(c)
  • low-income housing projects (PILFs), §4.2(a)
  • public interest law firms, §4.2(d)

• Sorority/fraternity educational foundations
  • §5.1(f)
  • PF grant made to, §17.6

• Sovereign powers of political subdivisions, §10.3(d)
• Special 30 percent limit, §24.1(b)
• Special private foundation deduction limitations, §24.1(b)
• Spin-off organizations, §22.0
• Split-interest trust gifts, §§11.5(c), 13.1(f), 24.1(d)
• Sponsorships
  • qualified sponsorship payment, §21.8(e)
  • revenue from, §21.8(e)
  • substantial return benefit of, §21.8(e)
  • use or acknowledgement of sponsor's name and logo, §21.8(e)

• Sports competition organizations
  • amateur sports competition, §§5.5, 6.2, Exh. 1.1
  • professional sports leagues, §8.2

• State chartered credit unions, Exh. 1.1
• State-sponsored organization providing health coverage for high-risk individuals, Exh. 1.1
• State-sponsored workers' compensation reinsurance organizations, Exh. 1.1
• Stocks
  • examples of jeopardizing investments, §16.2(b)
  • FIFO (first-in, first-out) method to track basis for tax, §13.2(a)
  • Over-the-Counter Bulletin Board (OTCBB) trade of, §15.2(d)
  • private foundation limited two percent of voting, §16.1(b)
  • qualified appreciated, §§13.5(c), 24.1(b)
  • valuation of readily marketable securities and, §15.2(d)

• Student FICA exception, 25.1(e)
• Student housing, §§5.1(a), 25.1(e)
• Student workers, 25.1(e)
• Study or research grants, §§17.1(b), 17.3(d)
• Subchapter S interests, §21.10(g)
• Subordinate nonprofits
  • exempt status of, §18.1(c)
  • Form 990 to be filed by, §18.2(f)

• Subsidiaries. See Corporate subsidiaries
• Substantial contraction, §26(b)
• Substantial contributors (private foundations), §12.2(c), Exh. 12.2
• “Substantially related” business activities, §21.7
• Substantial-part test, §§23.4(a), 23.5(a)
• Substantial return benefit of sponsorship, §21.8(e)
• Substantiation rules for donations, §24.2(b)
• Suitability for tax-exempt status checklist, Exh. 1.2
• Supplemental unemployment benefit trusts, Exh. 1.1
• Support
  • business donations, §11.5(c)
  • change of public charity category due to change in, §11.5(e)
  • differences between §509(a)(1) and §509(a)(2) organizations in, §11.5(a)
  • §509(a)(1) and §509(a)(2) organizations differences in, §11.5(a)
  • government grants, §11.5(c)
  • individual contributions, §11.5(c)
  • membership fees, §11.5(c)

• Supporting organizations (SOs)
  • attentiveness of, §11.6(c)
  • of business, trade, or professional associations, §8.11
  • ceasing to qualify under §509(a)(3) as a, §18.3(e)
  • certification of status as Type I, II, or III, Exh. 17.3
  • change in category due to support change, §11.5(e)
  • comparing donor-advised funds (DAFs), private foundations, and, Exh. 11.4
  • control by disqualified persons, §11.6(d)
  • control test of §509(a)(3)(B), §11.6
  • conversion to private foundation, §11.6(e)
  • description of, Exh. 17.3
  • distribution requirement, §11.6(c)
  • distributions to, §17.4(a)
  • excess holdings of nonfunctionally integrated, §16.1
  • grants given to non-functionally integrated, §17.6
  • grants to IRC §509(a)(1) and §509(a)(2) from, §11.5(c)
  • group insurance payments shared by PFs, DPs, and, §14.7(a)
  • integral part test on, §11.6(c)
  • intermediate sanctions imposed on, §11.6(g)
  • IRC §509(a)(3) test on, §1.7(a)
  • IRS approval for PF grant to, Exh. 17.2
  • IRS “Supporting Organization Reference Guide” on, §11.6
  • noncharitable beneficiaries, §11.6(f)
  • operational control relationship tests, §11.6(c)
  • organizational test of §509(a)(3)(A), §11.6
  • potential promoters, §11.6
  • procedural issues, §11.6(h)
  • purpose clause, §11.6(a)
  • receiving gifts from private foundations, §11.6(c)
  • relationship requirement under §509(a)(3)(B), §§11.6, 11.6(c)
  • representation of status, Exh. 17.3
  • requiring heightened scrutiny, §11.6
  • responsiveness test, §11.6(c)
  • specified public charities, §11.6(a)
  • stock/non-liquid investments/assets that do not produce income, §11.6
  • 33 1/3 percent support formula, §§11.2f, 12.4(g)
  • Type I operated, supervised, or controlled by, §§11.6(b), 11.6(c), 16.1, Exh. 17.3
  • Type II supervised or controlled by, §§11.6(b), 11.6(c), 16.1, Exh. 17.3
  • Type III operated in connection with, §§11.6(b), 11.6(c), 16.1, Exh. 17.3
  • unreasonable compensation/loans, §11.6
  • See also Public charities

• Support test of POFs, §15.5(d)
• Supreme Court
  • Bob Jones University v. United States, §§3.0, 5.1(h)
  • definition of a church by the, §3.2(b)
  • Goldsboro Christian Schools v. United States, §3.0
  • Portland Golf Club, §9.5(c)(e)
  • Reynolds v. United States, §3.0
  • See also Tax Court

• Synanon Church case, §18.5

• T
• Tangible personal property deduction, §24.1(b)
• Tax abatement
  • excess business holdings, §16.1(g)
  • of the §4958 excise tax due to excess benefits, §20.10(h)
  • for jeopardizing investments penalty, §16.4(c)
  • for PF failure to make required distributions, §15.6(e)
  • Request for Abatement Regarding Underdistribution, Exh. 15.2

• Taxable expenditures
  • Annual Tax Compliance Checklist for Private Foundations (PFs) on, Exh. 19.5
  • compensatory payments and scholarships, fellowships, prizes), §§17.3()–(f), 24.1(a), 25.1(e)
  • disaster relief and grants-in-aid programs, §§2.2(a), 17.3(c), 24.1(a), 25.1(e)
  • excise taxes of 20 percent of any, §17.8
  • expenditure responsibility grants, §17.6
  • grants to foreign organizations, §§17.5, 17.6(b)
  • grants to individuals, §15.4(f), 17.3
  • lobbying and related activities, §17.1
  • noncharitable expenditures, §17.7
  • as prohibited PF transactions under IRC §4945, §§12.2(b), 12.4(e), Ch.17
  • sample attachment to Form 4720, Exh. 17.12
  • voter registration drives, §2.1(e), 17.2

• Taxable income
  • acquisition indebtedness used to calculate, §13.1(h)
  • allocating expenses, §21.11
  • allocation of expenses, §21.11
  • calculating and minimizing, §21.11
  • Form 990–T, §21.11, Exh. 21.6
  • net operating losses (NOLs), §21.11
  • $1,000 annual exemption, §21.11
  • passive activity loss limitation, §21.11
  • of political organizations as defined by IRC §527, §23.3(b)
  • profit motive, §§21.4(a), 21.11

• Tax attributes
  • for §§501(c)(2),(3),(4),(5),(6),(7) organizations, Exh. 1.4
  • of mergers and combinations, §26.1(a)
  • of social clubs, §9.0, Exh. 1.1
  • transferred from PF to successor PF, Exh. 12.5

• Tax Court
  • American Campaign Academy, §2.1(e)
  • Ark Environmental Foundation U.S., Inc., §2.2(e)
  • Brnach Ministries, §23.1(b)
  • Caracci case, §20.5
  • Colorado State Chiropractic Society, §2.1(a)
  • Columbia Park and Recreation Association (CPRA), §6.1(e)
  • on determining unrelated income should be taxed, §21.2
  • Foundation of Human Understanding, §3.2(b)
  • Great Kansas City Community Foundation, §2.2
  • IRS General Counsel Memorandum (GCM) response to Synanon Church case, §18.5
  • licensing treated as royalty payment by, §21.10(d)
  • National College Athletic Association (NCAA) case, §§21.6(a), 21.8(d), 21.8(h)
  • National Education Association (NEA), §21.15(c)
  • The Nationalist Movement (TNM), §§5.1, 5.1(k)
  • New Faith, Inc., §2.2a
  • Quality Auditing Company, §5.4
  • Redlands Surgical Services (RSS), §§4.6(a), 4.6(c)
  • sharing computer database technology to nonprofits sanctioned by, §21.8(b)
  • trade or business defined by, §21.4
  • United Cancer Council, Inc. (UCC), §§2.2(d), 20.1(a)
  • Wayne Baseball, Inc., §5.5
  • Westward Ho, §2.2(a)
  • Zemurray Foundation, §13.2(b)
  • See also Supreme Court

• Tax Cuts and Jobs Act (2018), §§10.2, 13.1(h), 13.2(b), 13.8, 20.0, 20.10(j), 21.11
• Taxes
  • alternative minimum, §21.11
  • comparison of attributes for §§501(c)(2),(3),(4),(5),(6),(7), Exh. 1.4
  • employment, Ch.25
  • on excess business holdings, §16.1(g)
  • FIFO (first-in, first-out) method to track basis for stock, §13.2(a)
  • formula for taxable income of PFs, §13.1
  • fund-raising and related, §24.0
  • individual grant programs and reporting income, §17.3(d)
  • ordinary and necessary deductions, §21.11
  • on passive foreign investment companies (PFICs), §13.1(h)
  • on political expenditures, §23.3
  • private foundation termination, §12.4
  • proxy, §6.5(e)
  • on split-interest trusts, §§12.3, 13.1(f)
  • tax attributes transferred to successor PF, §12.4(e), Exh. 12.5
  • unemployment, §25.3(c)
  • U.S.–Canadian tax treaty and, §13.6
  • on wholly charitable trust, §12.3
  • See also Excise taxes; Income taxes

• Tax-exempt grantors, §24.2(b)
• Tax Hikes Act (2015), §18.1(c)
• Tax penalties
  • abatement for excess business holdings, §16.1(g)
  • abatement for PF failure to make required distributions, §15.6(e)
  • on (c)(3) political expenditures, §23.2(d)
  • for excess lobbying expenditures, §23.5(c)
  • failure to file employment tax information return, §25.3(a)
  • for failure to meet quid pro quo contributions, §24.2(c)
  • jeopardizing investments, §16.4
  • Request for Abatement Regarding Underdistribution, Exh. 15.2
  • who pays for self-dealing PF, §14.10(c)

• Tax-planning ideas
  • distributing, rather than selling, property, §13.5(a)
  • investment income, §13.5
  • qualification for 1 percent tax rate, §13.5(b)
  • redistributing donated property, §13.5(c)

• Tax Reform Act (1986), §§4.2(a), 4.6(f)
• Tax reporting year, §13.4(d)
• Tax withholding requirements
  • backup withholding, §25.3(d)
  • Employer Tax Requirements Checklist, Exh. 25.4
  • for exempt organizations, §25.3(b)
  • nonresident aliens, §25.3(d)
  • payroll depository requirements, §25.3(e)
  • Social Security taxes, §§25.1(e), 25.2(b), 25.3(b)
  • unemployment tax, §25.3(c)
  • withholding for bingo, raffles, and other contests, §25.3(f)

• Teachers' retirement fund associations, Exh. 1.1
• Teacher training program, §15.5(a)
• Teaching fellowships, §§17.3(b), 25.1(e)
• Televised athletic events, §21.7(c)
• Tenants' association, §6.2
• Tenuous or incidental benefit, §14.5(e)
• Terminations of exempt organizations
  • overview of process, §26.3
  • partial liquidation or major disposition of assets, §26(b)
  • when no special filings are required, §26(a)

• Testamentary trusts, §1.7(b)
• Testing for public safety, §5.4
• Testing for public safety organizations, Exh. 1.1
• Texas Charitable Immunity and Liability Act (1987), §1.7(a)
• Theft losses, §13.4(c)
• Third-tier tax, §12.4(a)
• 30 percent limit
  • for capital gain property, §24.1(b)
  • for gifts, §24.1(b)

• 33 1/3 percent support formula, §§11.2f, 12.4(g)
• 35/15 revenue test for social clubs, §9.4
• Thirty-five-percent-plus business (private foundations), §12.2(c)
• Timber (standing on real estate), §21.10(b)
• Tipping (loss of public status), §17.4(c)
• Title-holding corporations (THCs)
  • connection to beneficiary organization, §10.4(a)
  • description of, §10.4, Exh. 1.1
  • a IRC §501(c)(2), §10.4
  • a IRC §501(c)(25), §10.5
  • organizational and operational requirements, §10.4(a)
  • reasons to form a, §10.4(c)
  • restrictions on activity, §10.4(a)
  • or trusts with multiple parents, §10.4, Exh. 1.1

• Trade associations. See Boards of trade
• Trade or business. See Unrelated business activities
• Trade shows
  • disqualifying services to individual members, §8.4(b)
  • as unrelated business activity exception, §21.9(e)
  • virtual, §21.9(e)

• Transportation
  • and parking fringes, §21.11
  • traveling expenditures, §17.3(a), Exh. 14.2

• Traveling expenditures
  • grants made to individuals for, §17.3(a)
  • reimbursement for, Exh. 14.2

• Travel tours, §21.14
• Treasury Department
  • backup withholding system, §25.3(d)
  • enhanced scrutiny of foreign organizations suggested by, §13.6
  • intention to revise responsiveness test by, §11.6(c)
  • interest in collecting taxes from independent contractor, §25.0
  • proposed regulations changing public support computation for organizations, §11.3(e)

• Treasury Inspector General for Tax Administration (TIGTA), §§4.6(j), 6.2(a)
• Triumvirate of organizations, §22.2(e)
• Trusts
  • charitable lead, §24.1(d)
  • charitable remainder, §24.1(d)
  • charitable remainder annuity trust (CRAT), §24.1(d)
  • charitable under §4947(a)(1), §1.7(b)
  • comparison of Form 990–T reporting for corporation vs., Exh. 21.6
  • estate administration exception to self-dealing, §14.9
  • excess business holdings in, §16.1(c)
  • inter vivos (“among the living”), §1.7(b)
  • split-interest, §§12.3, 13.1(f)
  • taxable income from distributions, §13.1(f)
  • testamentary, §1.7(b)
  • wholly charitable, §12.3

• Tuition and fees, §25.1(e)
• 2010 §501(c)(3) Public Charity Tax Preparer Checklist, Exh. 19.2
• Twenty percent owners (private foundations), §12.2(c)
• Two percent gifts (donative public charities), §11.2f
• Type I supporting organizations (SOs)
  • certificate of status, Exh. 17.3
  • excess business holdings, §16.1
  • operational control relationship tests, §11.6(c)
  • specified public charities rules for, §11.6(b)

• Type II supporting organizations (SOs)
  • certificate of status, Exh. 17.3
  • excess business holdings, §16.1
  • operational control relationship tests, §11.6(c)
  • specified public charities rules for, §11.6(b)

• Type III supporting organizations (SOs)
  • certificate of status, Exh. 17.3
  • excess business holdings, §16.1
  • new limitations on grants to, Exh. 17.3
  • operational control relationship tests, §11.6(c)
  • specified public charities rules for, §11.6(b)

• U
• Unemployment tax, §25.3(c)
• Unified Registration Statement (URS), §24.5
• Uniform Management of Institutional Funds Act (UMIFA), §16.2(a)
• Uniform Prudent Investor Act (UPIA), §16.2(a)
• Uniform Prudent Management of Institutional Funds Act (UPMIFA), §16.2(a)
• Unincorporated associations, §1.7(c)
• United Cancer Council, Inc. (UCC), §§2.2(d), 20.1(a)
• United Methodist Church, §25.2(a)
• United States Catholic Conference, §3.2(c)
• United States Housing Authority, §10.1
• United Way, §§11.2, 18.4(c)
• United Way of Southeastern Pennsylvania (UWSP) case, §11.5(d)
• Universities. See Colleges and universities
• Unrelated business activities
  • agency theory applied to “look through”, §21.8(h)
  • Commerciality Test Checklist, Exh. 21.1
  • commerciality test of, §21.4(b)
  • definition of trade or business, §21.4
  • the exceptions, §21.9
  • exclusive marketing agreements/covenants not to compete, §21.8(i)
  • fragmentation rule, §21.4(c)
  • irregular or intermittent, §21.6
  • profit motive test of, §21.4(a)
  • “regularly carried on”, §21.6, Exh. 21.3
  • seasonal, §21.6(b)
  • sponsorships, §21.8(e)
  • “substantially related,” §21.7
  • See also Business activities

• Unrelated business activity exceptions
  • bingo games, §§21.8(j), 21.9(d), 24.4, 25.3(f)
  • convenience of members, students, patients, or employees, §21.9(c)
  • donated goods, §21.9(b)
  • entertainment, conventions, and trade shows, §21.9(e)
  • Indian tribes, §21.9(f)
  • low-cost articles, §21.9(g)
  • mailing lists, §21.10(h)
  • volunteers, §21.9(a)

• Unrelated business income modifications
  • capital gains, §21.10(b)
  • dividends and interest, §21.10(a)
  • partnerships and S corporations, §21.10(g)
  • rental income, §§13.1(d), 21.8(a), 21.10(c)
  • research income, §21.10(f)
  • royalties, §21.10(d)
  • subsidiary payments, §21.10(e)

• Unrelated business income tax (UBIT)
  • business league activities subject to, §4.5
  • calculating and minimizing, §21.11
  • debt-financed property, §21.12
  • exclusion from excise tax of income subject to, §13.1(a)
  • Form 3115 to change method for reporting, §13.4(d)
  • the history of the, §21.2
  • keeping good records for accurate, §21.0
  • social clubs, §9.5
  • See also Income taxes

• Unrelated business income (UBI)
  • advertising s, §21.8(d), Exh. 21.5
  • alliances with investors and aspect of, §22.2(d)
  • Annual Tax Compliance Checklist––Unrelated Business Income, Exh. 19.8
  • calculating and minimizing taxable income, §21.11
  • Checklist for Tax and Accounting Issues for Grants and Contributions Received, Exh. 19.12
  • Colleges and Universities Compliance Project Final Report (2013) on, §18.4(e)
  • components of, Exh. 21.2
  • consequences of receiving, §21.3
  • cooperative service organizations, 21.8(b)
  • definition of, §21.5
  • definition of trade or business, §21.4
  • exploitation and fragmentation issues of, §21.11
  • fund-raising and aspects of, §24.4
  • group insurance programs, §21.8(f)
  • income modifications of, §21.10
  • IRC §513(c) on, §21.4
  • IRS scrutiny of, §21.1
  • real estate, §21.8(g)
  • rentals, §21.8(a)
  • revenue produced on the Internet, §21.8(j)
  • royalties from licensing organization's name excluded from, §21.8(c)
  • service revenue classified as, §§20.8, 21.8(b)
  • sponsorships, §21.8(e)
  • See also Income; Revenue

• Unrelated business taxable income tax (UBTI)
  • Form 990–T to report income subject to, §§9.6, 13.4(d)
  • hedge fund investments and, §13.1(h)
  • interim and transition rules for partnership investments, §21.11
  • “reasonable, good-faith interpretation” standard, §21.11
  • rebates eligible for exclusion from, §2.2(j)
  • reporting it on Form 990–T, §18.2(g)
  • “silo” rule effective January 1, 2018, §21.11
  • transportation and parking fringes, §21.11
  • See also Income taxes

• Unrestricted funds of community funds, §11.3(a)
• Unusual grants
  • Form 8940 submitted for approval of, §11.2(h)
  • under Reg. §1.170A–9(f)(6)(ii), §11.2(h)

• Urban Institute's National Center for Charitable Statistics (NCCS), §24.5
• User groups, §8.3(a)
• U.S. Partnership Return of Income (Form 1065), §3.4
• Usual market place standard, §24.1(b)
• U.S.–Canadian tax treaty, §13.6

• V
• Venture funds (prudent vs. jeopardizing investments), §16.2(b)
• Veterans organizations, §6.2, Exh. 1.1
• Virtual mergers, §26.1
• Virtual trade shows, §21.9(e)
• Voluntary donor disclosures, §24.2(c)
• Voluntary employees' beneficiary associations (VEBAs)
  • IRC description of, Exh. 1.1
  • social clubs, §9.4(c)
  • title-holding corporations (THCs), §10.4(a)

• Voluntary termination of private foundations, §12.4
• Volunteer fringe benefits, §25.1(d)
• Voter education
  • candidate promotion versus, §23.2
  • description of, §23.2(a)
  • examples of permissible political and, §23.2(b)
  • impermissible electioneering examples, §23.2(c)

• Voter registration
  • conducting drives for, §17.2
  • nonpartisan, §2.1(e)

• W
• W-2 Form, §18.2(c)
• W-3 Form, §18.2(c)
• Wash sales, §13.2
• Wayne Baseball, Inc., §5.5
• Westward Ho case, §2.2(a)
• Where Is My Exemption Application? (IRS website), §18.1(a)
• Whole life insurance policy
  • as a jeopardizing investment, §16.2(b)
  • valuation of, §15.2(e)

• Withdrawal liability payment funds, Exh. 1.1
• Women's leagues, §8.2
• World Family Corporation case, §20.3(c)
• www.guidestar.org, §§10.3(a), 17.4(a), 18.2

• Z
• Zemurray Foundation case, §13.2(b)