Charity leaders often come up with creative ways to increase a charity’s cash flow.  Although these revenue producing activities are often tangentially related to the charity’s exempt activities, often these activities may be considered commercial or for-profit activities that could jeopardize the charity’s exempt status.   One strategy to protect the charity’s tax-exempt status is to conduct such activities through a for-profit subsidiary.  The IRS recently released Priv. Ltr. Rul. 201123036, confirming the long-standing position that a charity’s interest in a for-profit subsidiary will not jeopardize exempt status if properly structured. (more…)

On June 9, the IRS released its Exempt Organization Newsletter, Issue Number 2011-10.  Topics include the following:

1. IRS Identifies Organizations that Have Lost Tax-Exempt Status – Special Steps Announced to Help Revoked Groups
2. Portion of Schedule H Optional for 2010 Tax Year

Click here to review IRS Newsletter Issue 2011-10.

On June 2, the IRS released its Exempt Organization Newsletter, Issue Number 2011-9.  Topics include the following:

1. IRS Requests Comments on Form 990 Related Issues
2. Advisory Committee on Tax Exempt and Government Entities To Submit Recommendations
3. Ten Things You Need to Know About the 2011 Tax Forums
4. Providing Disaster Relief to Storm Victims
5. Free Employment Tax Webinar For Tax Professionals
6. IRS Accepting Applications for Low Income Taxpayer Clinic Grants
7. IRS Restricts Use of Term “Registered Tax Return Preparer”
8. FBAR Filing Deadline Extended for Certain Financial Professionals

Click here to review IRS Newsletter Issue 2011-9.