Estates, Gifts & Trusts

Tax Exempt Organizations: Organizational and Operational Requirements (869)

 

Portfolio Description

Tax Management Portfolio No. 869, Tax-Exempt Organizations: Organizational and Operational Requirements, describes the organization and operation of organizations exempt from federal income taxation under the Internal Revenue Code of 1986, as amended (the Code). The Portfolio emphasizes the discussion of organizations exempt from tax under §501(a) of the Code. Because §501(c)(3) organizations dominate the tax-exempt community, the Portfolio concentrates on those organizations. It does not discuss private foundations except to distinguish public charities from private foundations and to mention certain reporting requirements of private foundations. This Portfolio also does not address employee benefit plans or other types of retirement plans. These aspects of tax-exempt organizations are discussed in other Portfolios.

This Portfolio analyzes the organizational, and operational requirements of tax-exempt organizations. It discusses organizations exempt under §§501(a) and 501(c)(1) through (28), §521 farmers' cooperatives, §527 political organizations, §528 homeowners' associations, and §529 qualified tuition programs. Governmental entities and instrumentalities also are discussed. Charitable trusts and pooled income funds are briefly mentioned. This Portfolio focuses on the various types of public charities and their activities, and distinguishes public charities from private foundations. It also details the restrictions on the lobbying and political activities of public charities and the unrelated business income tax.

The reporting and record-keeping requirements of exempt organizations are discussed in 870 T.M., Tax-Exempt Organizations: Reporting, Disclosure and Other Procedural Aspects. Other issues relating to tax-exempt organizations discussed herein are covered in greater detail in other Portfolios, to which reference is made where appropriate.

This Portfolio may be cited as Simpson, 869 T.M., Tax-Exempt Organizations: Organizational and Operational Requirements.

Steven D. Simpson, B.A., Hillsdale College (1975); J.D., Wake Forest University (1978); LL.M. (Taxation), Georgetown University (1981); member, District of Columbia , Florida and North Carolina Bar Associations; American Bar Association, Section on Taxation: Exempt Organizations Committee; and contributor to various tax publications on Exempt Organizations issues.