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Private Foundations: Tax Law and Compliance, 4th Edition

Book Description

Stay updated on the latest tax regulations with this private foundation tax manual

Knowledge of tax regulations surrounding private foundations isn't enough if you're an executive of such an organization or a professional supporting a tax-exempt foundation. Annual changes to IRS rules and increased scrutiny by regulators mean it's necessary for you to keep abreast of myriad changes that come into existence each year. From authors Bruce R. Hopkins and Jody Blazek comes the definitive guide for those responsible for guiding the financial and tax filing operations of private foundations.

The complexity of tax regulations related to private foundations extends to a level that is out of proportion to the relatively small number of such entities. Nonetheless, recent statutory requirements that apply solely to private foundations can make untangling filing and reporting activities overly burdensome without a developed knowledge of the underlying theory and practice. To navigate this maze of add-on regulations, Hopkins and Blazek provide background knowledge, in-depth explanations of regulatory changes, and real-world examples to bring as much simplicity to the process as possible.

  • Receive guidance from the 2007 Outstanding Nonprofit Lawyer Award recipient

  • Learn about the details of private foundation taxes from leading experts in the field

  • Make use of checklists and sample documents to prepare organizational filings

  • Utilize line-by-line instructions for completing exemption applications and forms

  • For professionals working closely with private foundations, including accountants, lawyers, and foundation executives, Private Foundations: Tax Law and Compliance, 4th Edition is a welcome resource for keeping your clients or your organization on the right track.

    Table of Contents

    1. Cover
    2. Don't Miss Out on Must-Have and Timely New Information!
    3. Title Page
    4. Copyright
    5. Dedication
    6. Preface
    7. Book Citations
    8. Chapter One: Introduction to Private Foundations
      1. § 1.1 Private Foundations: Unique Organizations
      2. § 1.2 Definition of Private Foundation
      3. § 1.3 History and Background
      4. § 1.4 Private Foundation Law Primer
      5. § 1.5 Statistical Profile
      6. § 1.6 Foundations in Overall Exempt Organizations Context
      7. § 1.7 Definition of Charity
      8. § 1.8 Operating for Charitable Purposes
      9. § 1.9 Organizational Rules
      10. § 1.10 Private Foundation Sanctions
    9. Chapter Two: Starting and Funding a Private Foundation
      1. § 2.1 Choice of Organizational Form
      2. § 2.2 Funding a Foundation
      3. § 2.3 Estate Planning Principles
      4. § 2.4 Foundations and Planned Giving
      5. § 2.5 Acquiring Recognition of Tax-Exempt Status
      6. § 2.6 Special Requirements for Charitable Organizations
      7. § 2.7 When to Report Back to the IRS
    10. Chapter Three: Types of Private Foundations
      1. § 3.1 Private Operating Foundations
      2. § 3.2 Conduit Foundations
      3. § 3.3 Common Fund Foundations
      4. § 3.4 Research and Experimentation Funds
      5. § 3.5 Other Types of Foundations
      6. § 3.6 Nonexempt Charitable Trusts
      7. § 3.7 Split-Interest Trusts
      8. § 3.8 Foreign Private Foundations
    11. Chapter Four: Disqualified Persons
      1. § 4.1 Substantial Contributors
      2. § 4.2 Foundation Managers
      3. § 4.3 Certain 20 Percent Owners
      4. § 4.4 Family Members
      5. § 4.5 Corporations or Partnerships
      6. § 4.6 Trusts or Estates
      7. § 4.7 Private Foundations
      8. § 4.8 Governmental Officials
      9. § 4.9 Terminating Disqualified Person Status
    12. Chapter Five: Self-Dealing
      1. § 5.1 Private Inurement Doctrine
      2. § 5.2 Private Benefit Doctrine
      3. § 5.3 Definition of Self-Dealing
      4. § 5.4 Sale, Exchange, Lease, or Furnishing of Property
      5. § 5.5 Loans and Other Extensions of Credit
      6. § 5.6 Payment of Compensation
      7. § 5.7 Indemnification and Insurance
      8. § 5.8 Uses of Income or Assets by Disqualified Persons
      9. § 5.9 Sharing Space, People, and Expenses
      10. § 5.10 Payments to Government Officials
      11. § 5.11 Indirect Self-Dealing
      12. § 5.12 Property Held by Fiduciaries
      13. § 5.13 Early Terminations of Charitable Remainder Trusts
      14. § 5.14 Additional Exceptions
      15. § 5.15 Issues Once Self-Dealing Occurs
    13. Chapter Six: Mandatory Distributions
      1. § 6.1 Distribution Requirements—In General
      2. § 6.2 Assets Used to Calculate Minimum Investment Return
      3. § 6.3 Measuring Fair Market Value
      4. § 6.4 Distributable Amount
      5. § 6.5 Qualifying Distributions
      6. § 6.6 Distributions to Certain Supporting Organizations
      7. § 6.7 Satisfying the Distribution Test
      8. § 6.8 History of the Mandatory Distribution Requirement
    14. Chapter Seven: Excess Business Holdings
      1. § 7.1 General Rules
      2. § 7.2 Permitted and Excess Holdings
      3. § 7.3 Functionally Related Businesses
      4. § 7.4 Rules Applicable to Certain Supporting Organizations
      5. § 7.5 Rules Applicable to Donor-Advised Funds
      6. § 7.6 Excise Taxes on Excess Holdings
    15. Chapter Eight: Jeopardizing Investments
      1. § 8.1 General Rules
      2. § 8.2 Prudent Investments
      3. § 8.3 Program-Related Investments
      4. § 8.4 Investment Frauds
      5. § 8.5 Excise Taxes for Jeopardizing Investments
    16. Chapter Nine: Taxable Expenditures
      1. § 9.1 Legislative Activities
      2. § 9.2 Political Campaign Activities
      3. § 9.3 Grants to Individuals
      4. § 9.4 Grants to Public Charities
      5. § 9.5 Grants to Foreign Organizations
      6. § 9.6 Expenditure Responsibility
      7. § 9.7 Internet and Private Foundations
      8. § 9.8 Spending for Noncharitable Purposes
      9. § 9.9 Distributions to Certain Supporting Organizations
      10. § 9.10 Excise Tax for Taxable Expenditures
    17. Chapter Ten: Tax on Investment Income
      1. § 10.1 Rate of Tax
      2. § 10.2 Reducing the Excise Tax
      3. § 10.3 Formula for Taxable Income
      4. § 10.4 Reductions to Gross Investment Income
      5. § 10.5 Foreign Foundations
      6. § 10.6 Exemption from Tax on Investment Income
      7. § 10.7 Legislative Proposal
    18. Chapter Eleven: Unrelated Business Income
      1. § 11.1 General Rules
      2. § 11.2 Exceptions
      3. § 11.3 Rules Specifically Applicable to Private Foundations
      4. § 11.4 Unrelated Debt-Financed Income
      5. § 11.5 Calculating and Reporting the Tax
    19. Chapter Twelve: Tax Compliance and Administrative Issues
      1. § 12.1 Successful Preparation of form 990-PF
      2. § 12.2 Reports Unique to Private Foundations
      3. § 12.3 Compliance Issues
    20. Chapter Thirteen: Termination of Foundation Status
      1. § 13.1 Voluntary Termination
      2. § 13.2 Involuntary Termination
      3. § 13.3 Transfer of Assets to A Public Charity
      4. § 13.4 Operation as a Public Charity
      5. § 13.5 Mergers, Split-Ups, and Transfers Between Foundations
      6. § 13.6 Termination Tax
      7. § 13.7 Abatement
    21. Chapter Fourteen: Charitable Giving Rules
      1. § 14.1 General Rules
      2. § 14.2 Gifts of Appreciated Property
      3. § 14.3 Deductibility of Gifts to Foundations
      4. § 14.4 Deduction Reduction Rules
      5. § 14.5 Planned Giving Revisited60
      6. § 14.6 Administrative Considerations
    22. Chapter Fifteen: Private Foundations and Public Charities
      1. § 15.1 Distinctions Between Public and Private Charities
      2. § 15.2 Evolution of Law of Private Foundations
      3. § 15.3 Organizations with Inherently Public Activity
      4. § 15.4 Publicly Supported Organizations—Donative Entities
      5. § 15.5 Service Provider Organizations
      6. § 15.6 Comparative Analysis of the two Categories of Publicly Supported Charities
      7. § 15.7 Supporting Organizations
      8. § 15.8 Change of Public Charity Category
      9. § 15.9 Noncharitable Supported Organizations
      10. § 15.10 Relationships Created for Avoidance Purposes
      11. § 15.11 Reliance by Grantors and Contributors
      12. § 15.12 Other Rules
      13. § 15.13 Public Safety Organizations
      14. § 15.14 Termination of Public Charity Status
    23. Chapter Sixteen: Donor-Advised Funds
      1. § 16.1 Basic Definitions
      2. § 16.2 General Concept of a Gift
      3. § 16.3 Types of Donor Funds
      4. § 16.4 IRS Challenges to Donor Funds
      5. § 16.5 Prohibited Material Restrictions
      6. § 16.6 Department of Justice Position
      7. § 16.7 Public Charity Status of Funds
      8. § 16.8 Interrelationship of Private Foundation Rules
      9. § 16.9 Statutory Criteria
      10. § 16.10 Department of Treasury Study
      11. § 16.11 Congressional Research Service Study
    24. Chapter Seventeen: Corporate Foundations
      1. § 17.1 Corporate Foundation Overview
      2. § 17.2 Reasons for Establishment of a Corporate Foundation
      3. § 17.3 Private Inurement Doctrine
      4. § 17.4 Disqualified Persons Rules
      5. § 17.5 Self-Dealing Rules
      6. § 17.6 Other Private Foundations Rules
    25. About the Authors
    26. About the Online Resources
    27. Index
    28. End User License Agreement