Not For Profit/Exempt Organizations Blog

Monthly Archives: May 2011

Type II Supporting Organizations Must Have Readily Identifiable Beneficiaries

In a tightly written plain English opinion, the D.C. Circuit Court of Appeals in Polm Family Foundation v. U.S. explained an important requirement of Type II supporting organizations. To be a Type II supporting organization, a charity must satisfy three tests:   1.                  the organizational test set forth in IRC Section 509(a)(3)(A), 2.                  the relationship test set forth in … Continue Reading

IRS Warns that Fringe Benefits Trigger Intermediate Sanctions

At a recent conference on nonprofit governance sponsored by Georgetown Law Center, an IRS official stated that fringe benefits have become the most common trigger of intermediate sanctions under Section 4958 of the Code.  As most of you know, or should know, Section 4958 of the Code, enacted in 1996, imposes excise taxes on both … Continue Reading
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