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Form 990-PF: Latest Compliance Strategies Meeting IRS Demands for Fiscal, Grant and Other Data From Private Foundations
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WEDNESDAY, NOVEMBER 28, 2012
Presenting a live 120-minute teleconference with interactive Q&A
Brian Yacker, Partner, YH Advisors, Huntington Beach, Calif.
Candice Meth, Senior Manager, EisnerAmper, New York
Amanda Adams, Tax Partner, Blazek & Vetterling, Houston
Milton Cerny, Counsel, McGuire Woods, Washington, D.C.
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Form 990-PF: Latest Compliance Strategies Seminar
Milton Cerny, McGuire Woods
Nov. 28, 2012
Amanda Adams, Blazek & Vetterling
Brian Yacker, YH Advisors
Candice Meth, EisnerAmper
Today’s Program
Form 990-PF Review
[Amanda Adams]
Critical Compliance Issues With Form 990-PF
[Milton Cerny, Amanda Adams and Brian Yacker]
Best Practices With Future Form 990-PF Filings
[Candice Meth]
Slide 8 – Slide 28
Slide 29 – Slide 81
Slide 82 – Slide 96
Notice
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY
THE SPEAKERS’ FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY
OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT
MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR
RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
You (and your employees, representatives, or agents) may disclose to any and all persons,
without limitation, the tax treatment or tax structure, or both, of any transaction
described in the associated materials we provide to you, including, but not limited to,
any tax opinions, memoranda, or other tax analyses contained in those materials.
The information contained herein is of a general nature and based on authorities that are
subject to change. Applicability of the information to specific situations should be
determined through consultation with your tax adviser.
7
FORM 990-PF REVIEW
Amanda Adams, Blazek & Vetterling
Part I: Analysis Of Revenue And Expenses
Column (a) reflects revenue and expenses per books – cash or accrual.
Column (b) reflects revenue and expenses that are subject to the
4940
excise tax on net investment income.
Column (c) reflects revenue and expenses that are included in the
calculation of adjusted net income. For private operating foundations,
this column is relevant to determining the spending requirement. For
non-operating foundations, this column is generally not completed unless
the foundation has income from a charitable activity.
Column (d) reflects expenses which are treated as qualifying
distributions. This column is relevant to determining satisfaction of both
operating and non-operating foundations’ minimum spending
requirements.
9
Part II: Balance Sheets
This section of the return presents the balance sheet of the
foundation at the beginning of the year and the end of the year.
The FMV of assets held at the end of the year is also reported. A
detailed listing of investments held at the end of the year (other
than mortgage loans) is required.
Lines 6 and 20 report receivables/payables occurring between the
foundation and disqualified persons. Having an entry on either of
these lines could be a sign that impermissible self-dealing has
occurred.
10
Part III: Analysis Of Changes In NA Or FB
This section of the return demonstrates the components of the
change in net assets from the beginning of the year to the end of
the year. For many cash-basis foundations, current income is the
only change. For foundations that follow the accrual method and
report their investments at fair market value, unrealized gains
and losses are reported here. Returned grants are also reported in
this section rather than as a reduction of expense or income in
Part I.
11
Part IV: Capital Gains And Losses
After the passage of the Pension Protection Act of 2006, capital gains
and losses from the sale of virtually all capital assets became subject
to the
4940 tax on net investment income. Two important
exceptions still exist:
1. Capital gains and losses subject to unrelated business income tax
are not also subject to
4940 tax.
2. Gains and losses from charitable-use assets held for at least one
year are not subject to
4940 tax, if the proceeds from sale are used
to purchase similar charitable-use assets, in much the same way as
the like-kind exchange rules of
1031.
Remember that all sales of publicly traded securities can be reported
on a single line. Details are only required for non-publicly traded
securities.
12
Part V: Qualification For Reduced Tax
The normal rate of
4940 tax on net investment income is 2%.
This section of the return provides a calculation that may enable
the foundation to reduce the tax percentage to 1%. A ratio of
qualifying distributions to non-charitable-use assets is calculated
based on a five-year history. If current year qualifying
distributions equal or exceed the amount determined by
multiplying the five-year ratio by the current year’s average of
non-charitable-use assets plus 1% of net investment income, then
the foundation qualifies for the 1% tax rate for the year.
13
Part VI: Excise Tax
This section reports the tax due on the return as well as any
payments made towards the tax. If the foundation was
erroneously subject to back-up withholding, such amounts can be
reported here as credits toward the foundation’s tax liability.
Foundations whose tax liability exceeds $500 for the year must
make quarterly tax payments (which must be deposited
electronically), and those whose net investment income has
exceeded $1 million in the past three years must base their 2Q-4Q
payments using annualization calculations, which use actual
income earned during the year. This can be problematic for those
foundations with partnership investments and that do not have
timely information.
14
Part VII-A: Statements Regarding Activities
Although questions 1(political activities), 6 (governing instrument) and 13
(public inspection) search for possible non-compliance with the
requirements of
501(c)(3), the bulk of the questions in this part ask for
information that does not necessarily have a negative impact on the
foundation. Changes in activities, organizing documents, new substantial
contributors and similar information are required to be reported.
A new question is asked for 2011: Did the foundation make a distribution
to a donor-advised fund over which the foundation or a disqualified
person had advisory privileges? If “Yes,” attach statement.
The statement must report whether the foundation treated the
distribution as a qualifying distribution and how the distribution will be
used for
170(c)(2) purposes.
One wonders whether the IRS plans to restrict grants to DAFs, as they
have grants to supporting organizations.
15
Part VII-B: Statements Regarding Activities For Which Form 4720 May Be Required
Care should be taken in answering the questions in this section, as
“Yes” answers may indicate that Form 4720 (a penalty return) is
required to be filed. Questions 1-5 seek information to determine
if the foundation is subject to one of the Chap. 42 excise taxes on
self-dealing, under-distribution, excess business holdings,
jeopardizing investments and taxable expenditures. Questions 6
and 7 relate to non-Chap. 42 excise taxes.
16
Part VIII: Information About Officers, Etc.
All officers, directors, trustees and foundation managers that
served during the year are reported along with their
compensation and average hours per week devoted to the
foundation.
The top five highest-paid employees compensated >$50,000 are
reported.
The top five highest-paid independent contractors compensated
>$50,000 are reported.
17
Part IX-A: Summary Of Direct Charitable Activities
Many foundations conduct direct programs in conjunction with, or
instead of, making grants to other organizations. Even if the
foundation is a non-operating foundation, it has the opportunity
to describe its four largest activities and provide the total
expenditures related to each. Some foundations are concerned
about the appearance of a large percentage of expenses coming
from non-grant sources, because it may seem that administrative
expenses are too high. Describing direct activities in this part can
help indicate when expenses are related to a charitable program
rather than being administrative.
18
Part IX-B: Summary Of Program-Related Investments
Program-related investments are made primarily to accomplish a
charitable purpose of the foundation, rather than to produce
investment income or capital gain from the sale of the
investment.
Examples include educational loans to individuals and low-
interest loans to other 501(c)(3) organizations.
Only the top two PRIs made during the year are reported, so that
ongoing investments are not reported on succeeding returns.
19
Part X: Minimum Investment Return
This section of the return reports the average fair market value of
non-charitable use assets including cash, securities and other
assets. This calculation is the first step in determining the amount
the foundation is required to spend for charitable purposes.
20
Part XI: Distributable Amount
The minimum investment return (5% of investment assets) is
reduced in this section by the excise tax on investment income
for the year, as well as the income tax (990-T) for the year.
Recoveries of amounts previously treated as qualifying
distributions (i.e., returned grants) are added to the MIR to
determine the distributable amount.
21
Part XII: Qualifying Distributions
This section calculates the total amount of qualifying distributions
for the year by combining the expenses paid from Part I, Col. (d)
with amounts spent to purchase program-related investments or
charitable use assets and any amounts set aside for charitable
purposes.
Set-asides:
Type I: Suitability test – straightforward and applicable to
foundations of any age; must request in advance and may not
receive approval until after deadline for return to be filed
Type II: Cash distribution test – generally applicable to
foundations in their first few years of existence; complex rules
which are difficult to understand; advance approval not required
22
Part XIII: Undistributed Income
This section illustrates satisfaction or failure of a non-operating
foundation’s payout requirements. It is important to remember
that the amount shown on Line 6f, Col. (d) is not required to be
distributed until the tax year after the tax year covered by the
return.
Normal ordering of application of distributions:
1. Current-year payout requirement (calculated on prior return)
2. Next year’s payout requirement (calculated on current return)
3. Excess distribution carryover
Elections can be made to divert distributions after Step 1 in order
to satisfy requirements from a prior year (penalty situation) or
to meet redistribution requirements.
23
Part XIV: Private Operating Foundations
This section illustrates satisfaction of a private operating
foundation’s payout requirements. The test can be met on an
aggregate basis (i.e., total for all four years), or on a three-out-of-
four-year basis.
Two-part test:
1. Income test (based on lesser of adjusted net income or MIR)
2. One of the following:
I. Asset test (65%-plus are charitable-use)
II. Endowment test (spend 2/3 of MIR)
III. Support test (certain required percentages of support
from public)
Failure of test means the foundation becomes a non-operating
foundation that completes Part XIII.
24
Part XV: Supplementary Information
This section provides information about grant programs.
Foundation can describe what kinds of organizations/individuals it
supports or attempt to forestall submission of unsolicited
applications by checking the box.
Details regarding grants paid during the year and those approved
for future payment are presented. Importantly, the public charity
status (on the return, this is referred to as foundation status)
must be reported for each grantee [e.g., 509(a)(1)].
25
Part XVI-A: Analysis Of Income-Producing Activities
This section analyzes the sources of revenue during the year to
show how much revenue was unrelated business income that is
taxable, unrelated business income that is not taxable, and
related/exempt function income.
26
Part XVI-B: Relationship Of Activities
For exempt function revenue reported in Col. (e) of Part XVI-A, a
description is reported in this section explaining how the income-
producing activity contributed to the foundation’s exempt
purposes.
27
Part XVII: Information Regarding Transfers To, And Transactions And Relationships With, Non-
Charitable Exempt Organizations
As the title implies, this section reports information about
transfers and other transactions with non-charitable exempt
organizations, as well as relationships with such organizations. It
is important to demonstrate that such transactions, etc. do not
result in the improper use of charitable funds for non-charitable
purposes.
28
CRITICAL COMPLIANCE ISSUES WITH FORM 990-PF
Milton Cerny, McGuire Woods
Amanda Adams, Blazek & Vetterling
Brian Yacker, YH Advisors
Current Developments
I. 2012 IRS work plan
A. Based on information reported on Form 990-PF, the Exempt
Organization Division is examining a selection of the largest private
foundations.
1. Proposed regulations
a. Reliance standards for making good faith determinations of
foreign organization’s charitable status (Reg. 134974-12)
b. Sections 4942 and 4945 require a determination, based on
an affidavit of the foreign organization or an opinion of
counsel (equivalency letter), to the grantor foundation that
the grantee is a charitable organization. Now includes in
the list of “qualified tax practitioners” an enrolled agent
30
Current Developments (Cont.)
c. Other changes under consideration by the IRS:
• Time limitation, during which foundation could rely on
equivalency written advice
• Revision of Rev. Proc. 92-94 to take into account
changes in public support test for public charities
• Elimination of the good faith determination based on
grantee affidavit
3. New examples regarding program-related investments under
Sect. 53-4944 of the regulations were revised.
The new examples include the following investments:
a. The purchase of stock in a business that will develop a
vaccine to prevent a disease that predominantly affects
poor individuals in developing countries
31
Current Developments (Cont.)
b. The purchase of stock, or the provision of a loan with
below-market interest rates accompanied by the
acceptance of stock, in a business in a developing
country that collects recyclable solid waste and delivers
such waste to recycling centers that would otherwise be
inaccessible to a majority of the population
c. A loan with below-market interest rates to a business in
a rural area that employs a large number of poor
individuals, where the business has sustained damage
from a natural disaster
d. A loan with below-market interest rates to individuals in
a developing country that was damaged by natural
disaster, for the purpose of starting small businesses
32
Current Developments (Cont.)
e. A loan with below-market interest rates to a company that
purchases coffee from farmers in a developing country, for
the purpose of training poor farmers about water
management, crop cultivation, pest management and farm
management
f. A loan with below-market interest rates to an organization
described in IRC Sect. 501(c)(4) that develops and
encourages interest in painting, sculpture and art by
conducting weekly community art exhibits, for the
purchase of a large exhibition space
g. A deposit as security, or a guarantee and reimbursement
agreement, for a loan to a charitable organization
described in IRC Sect. 501(c)(3) that provides childcare
services in a low-income neighborhood, for the
construction of a new childcare facility
33
Current Developments (Cont.)
4. Guidance on charitable donations to disregarded single-member
LLCs
a. The IRS announced in Notice 2012-52 that a contribution to a
domestic single-member LLC that is wholly owned and
controlled by a U.S. charity and disregarded for federal tax
purposes is deductible, because the IRS will treat the gift as
being made to a branch or division of the charity. The charity
will be treated as the recipient of the gift, for purposes of
meeting the substantiation and disclosure requirements.
b. Before this notice, foundations had no definitive guidance as
to whether a charitable contribution to a disregarded LLC
owned by a public charity would be a charitable grant. Now,
foundations will be able to direct their grants directly to the
LLC without uncertainty over the charitable deductibility of
the grant.
34
Disclosing Operational Activities: Part VII-A, Question 2
Has the foundation engaged in any activities that have not been
previously reported to the IRS?
1. Generally, any substantially different activities that have not
previously been reported (Form 1023 or 990-PF) should be reported
here. The foundation will not receive a letter from the IRS approving
of such activities as a result. However, it may protect the foundation
from retroactive challenges to exempt status by putting the IRS on
notice of new activities.
2. Certain new activities require advance approval from the IRS:
I. Grants to individuals for study, travel, similar purposes
II. Termination of private foundation status through operation
as a public charity
35
Disclosing Operational Activities: Part IX-A, Direct Charitable Activities
The top four programs are reported. Statistical data such as the
number of persons served, classes taught, books distributed, etc.
enhance the descriptions. The expenses reported include capital
expenditures for related assets but not depreciation. A reasonable
and consistent allocation of overhead expenses is permitted.
Unless there is significant involvement in the foundation’s grant
programs, they are typically not reported as direct charitable
activities.
This section is critical for private operating foundations.
36
Prepared by YH Advisors, Inc. 37
Minimum Distribution Requirements (Sect. 4942)
Definitions
o Undistributed income
• Distributable amount exceeds qualifying distributions for any given year
o Distributable amount
• Overview
Two years to make qualifying distributions
• Calculation
Essentially, the private foundation’s minimum investment return, with certain adjustments
Private foundation’s grants that are returned to the private foundation (
4942(f)(2)(C)(i))
Amounts received or accrued from the sale of property, to the extent that the acquisition of the property was considered a qualifying distribution (
4942(f)(2)(C)(ii))
Any amount set aside for a specific project, to the extent the amount set aside was not necessary for the purposes for which it was set aside (
4942(f)(2)(C)(iii))
Prepared by YH Advisors, Inc. 38
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Minimum investment return
• 5% of fair market value of non-charitable assets (net total assets less exempt purpose assets)
Examples of exempt purpose assets
Art owned by private foundation that is displayed in museum
Desks in classroom of school operated by private foundation
• Fair market value calculations
Cash
Calculate average monthly cash balances
See regulations (53.4942(a)-2(c)(4)(ii))
Securities
Readily available market quotations
+ NYSE or NASDAQ
+ Any city or regional exchange on which quotations appear on a daily basis
+ Any other exchange (foreign, national, regional) on which quotations appear on a daily basis
+ Regularly traded in a market for which published quotations are available
+ Locally traded in a market for which quotations can be obtained from established brokerage firms
Consistently calculate average monthly fair market value
Marketability discounts permitted (Sec. 4942(e)(2)(B))
See five examples in regulations (53.4942(a)-2(c)(4)(i)(e))
Prepared by YH Advisors, Inc. 39
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Minimum investment return (Cont.)
• Real estate
Five-year optional reliance, if written appraisal prepared by unrelated (Reg.
53.4942(a)-2(c)(4)(iv))
Written, certified and independent appraisal of the fair market value of any real estate
Qualified person may not be disqualified person or an employee of the private foundation.
Commonly accepted valuation methods must be used in making the appraisal.
Valuation based upon acceptable methods of valuing property for federal estate tax purposes will be considered acceptable.
Appraisal must include a closing statement that, in the appraiser’s opinion, the appraised assets were valued according to valuation principles regularly employed in making appraisals of such property, using all reasonable valuation methods.
Private foundation must keep a copy of the independent appraisal for its records.
IRS will continue to accept the appraisal for a five-year period, even if actual FMV changes.
Planning opportunity: When the FMV of real estate is increasing, the private foundation should utilize the independent appraisal for determining the value of its real estate investments. When it is decreasing, consider obtaining another independent appraisal, even if the five-year period has not yet concluded for the original appraisal of the real estate.
Real estate valuation planning will help the private foundation minimize its minimum distribution requirements, by minimizing the value of total non-charitable assets.
Prepared by YH Advisors, Inc. 40
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Minimum investment return (Cont.)
• Valuation of other assets
Fair market value consistently determined annually (see Reg.
53.4942(a)-2(c)(4)(iv)(a))
Valuation can be conducted by a private foundation insider.
May be valued as of any day in PF’s tax year, provided that the PF values the asset as of that date in all tax years
• Exempt purpose assets are not considered for the minimum investment return calculation.
Reg.
53.4942(a)-2(c)(3): Asset is used directly in carrying out the foundation's exempt purpose only if the asset is actually used by the foundation in the carrying out of the charitable, educational or other similar purpose that gives rise to the exempt status of the foundation.
Assets held for production of income or for investment are not being used directly in carrying out the foundation's exempt purposes, even though the income from such assets is used to carry out such exempt purposes.
Whether an asset is held for the production of income, rather than used directly to carry an exempt purpose, is a question of fact.
For example, an office building used for the purpose of providing offices for employees engaged in the management of endowment funds of the foundation is not being used directly by the foundation to carry out its exempt purposes.
Where property is used both for exempt purposes and for other purposes, if the exempt use represents 95% or more of total use, such property shall be considered to be used exclusively for an exempt purpose.
Prepared by YH Advisors, Inc. 41
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Minimum investment return (Cont.)
• Exempt purpose assets not considered for minimum investment return calculation (Cont.)
Examples (in the IRS regulations) of assets that are used directly in carrying out exempt purposes
Administrative assets, such as office equipment and supplies, that are used to the extent such assets are devoted to and used directly in the administration of the foundation's exempt activities
Real estate used by the foundation directly in its exempt activities
Paintings or other works of art owned by the foundation and which are on public display, fixtures and equipment in classrooms, research facilities and related equipment
Any interest in a functionally related business or in a program-related investment
Property leased by a private foundation in carrying out its exempt purposes at no cost (or at a nominal rent) to the lessee or for a program-related purpose, such as the leasing of renovated apartments to low-income tenants at a low rental as part of the lessor foundation's program for rehabilitating a blighted portion of a community
Prepared by YH Advisors, Inc. 42
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Minimum investment return (Cont.)
• Reasonable cash balances for administrative expenses (Reg.
53.4942(a)-2(c)(3)(iv))
1.5% of total assets (less exempt purpose assets)
Exclude 1.5% amount, even if greater than average cash balances (see Rev. Rul. 75-392)
May exceed 1.5% amount under certain limited circumstances
Attach statement to Form 990-PF
• Short tax years
Minimum investment return percentage is reduced based on number of days in period
• PLR 9530033
IRS ruled that a private foundation may re-compute its minimum investment return for several years, in order to take into account an adjustment to the value of real property donated to the foundation.
Prepared by YH Advisors, Inc. 43
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Qualifying distributions (Sect. 4942(g))
• Any amount, including reasonable/necessary admin expenses, paid to accomplish charitable purposes; and any amount paid to acquire asset used directly in carrying out charitable purposes
Expenses incurred directly in carrying out the private foundation’s charitable purposes
Grants and gifts made by the private foundation to qualifying recipients
Exercise expenditure responsibility for grants and gifts made to non-public charities
NOT including amounts paid to directly or indirectly controlled charitable organizations (see Sec. 4942(g)(1)(A)) or paid to non-functionally integrated Type III charitable support organizations (see also Reg.
53.4942(a)-3(a)(3))
• Acquisition of exempt purpose assets
• Reasonable and necessary administrative expenses (Cont.)
Examples
Expenses attributable to soliciting grants
Expenses related to inspecting determination letter of public charities
NOT expenses related to the management of an investment endowment fund
Prepared by YH Advisors, Inc. 44
Minimum Distribution Requirements (Sect. 4942), Cont.
Definitions (Cont.)
o Qualifying distributions (Cont.)
• Reasonable and necessary administrative expenses (Cont.)
Internal Revenue Service rulings
Rev. Rul. 75-495: Legal fees paid in a lawsuit to determine the proper beneficiary of part of the private foundation’s income
PLR 9623058: Reasonable legal and accounting expenses incurred by a private foundation in obtaining an IRS ruling with respect to transfer of assets for purposes of furthering charitable purposes
PLR 9629019: Reasonable and necessary legal, accounting, and other expenses incurred to implement the transfer of assets from one private foundation to another were considered qualifying distributions
Rev. Rul. 74-560: Depreciation expense generally will NOT be considered a qualifying distribution.
1988 EO CPE Text
“Other qualifying distributions include expenses attributable to soliciting grants or contributions to the foundation; preparing Form 990-PF … making the return available for public inspection or providing copies ...”
Prepared by YH Advisors, Inc. 45
Verifying Grant Recipients
Grants to small exempt organizations
o Grants made to small exempt organizations whose exempt status was revoked
• Not taxable expenditure until the IRS published revocation list on June 8, 2011
See www.irs.gov for the “Auto-Revocation List”
• Would be taxable expenditure if make grant to a revoked entity thereafter
Key for the private foundation to check the Auto-Revocation List and IRS Select Check before making grants to smaller exempt organizations
Can avoid classification as a taxable expenditure if exercise expenditure responsibility
o Grants made to single-member LLCs of public charities
• See IRS Information Letter 2010-0052: Grant to single-member LLC owned by public charity is considered to be a qualifying distribution and as such, the exercise of expenditure responsibility is not required.
Prepared by YH Advisors, Inc. 46
Verifying Grant Recipients (Cont.)
Grants to supporting organizations
o Controlled supporting organizations
• Not a qualifying distribution if private foundation makes grant to any supporting organization, if a disqualified person directly or indirectly controls the supporting organization or a supported public charity of the supporting organization
• Grant to controlled supporting organization will be considered a taxable expenditure if expenditure responsibility is not exercised
o Non-functionally integrated Type III supporting organization
• Even if exercise expenditure responsibility, grant to non-functionally integrated Type III supporting organization will NOT be considered a qualifying distribution (see Sect. 4942(g)(4))
• Grant to non-functionally integrated Type III supporting organization will be considered a taxable expenditure, if expenditure responsibility is not exercised.
• Check status before making contribution
• Publication 78 does not indicate whether organization is a supporting organization, or if so, what type
o Required analysis when make grants to certain supporting organizations
• Who are the private foundation’s disqualified persons?
• Which supporting organizations does the disqualified person control?
• To which supporting organizations does the private foundation make grants?
• Was expenditure responsibility exercised for grants made to organizations listed, in response to the two questions immediately above?
Prepared by YH Advisors, Inc. 47
Verifying Grant Recipients (Cont.)
Grants to supporting organizations (Cont.)
Is donee a supporting organization (SO)?
Is donee SO a Type I, Type II or Type III ?
Is the Type III SO functionally
integrated or not?
Does a DQP control the SO or a charity it
supports?
Has the PF exercised expenditure
responsibility?
Violation of Sect. 4945 + excise taxes
imposed
No violation of Sect. 4945 re taxable
expenditures
Grant will be considered a qualifying
distribution
YES
Type I or II
Type III
YES
YES
NO NO
+
Prepared by YH Advisors, Inc. 48
Verifying Grant Recipients (Cont.)
Grants to foreign charities
o Expenditure responsibility
• Take responsibility for the funds granted to the foreign charity
• Granting private foundation conducts specific oversight and monitoring procedures
Takes lots of ongoing effort and energy
• Necessary steps
Pre-grant due diligence that foreign recipient is a bona fide charity
Ensure that grant is actually spent only for the purpose for which it is made
Obtain full and complete reports from the foreign grantee organization on how funds were spent
Make full and detailed reports on the expenditures to the IRS on Form 990-PF
• Private letter rulings
See PLR 200813043 for IRS guidance when making grants to foreign charities
See also PLR 201039047
See PLR 200852038 for IRS guidance regarding when expenditure responsibility should be exercised for grants made to domestic non-charitable entities
Prepared by YH Advisors, Inc. 49
Verifying Grant Recipients (Cont.)
Grants to foreign charities (Cont.)
o Expenditure responsibility (Cont.)
• Pre-grant inquiry
Investigate, based on readily available information, that the grantee will use the granted funds from the private foundation for proper purposes
Inquiry should include identity, experience, history of grantee and its governing body, information on management activities, finances and practices of the grantee.
Private foundation must document the purposes of the grant, assessment of the grantee’s ability to achieve goal, and assessment of grantee’s ability to report on the use of the funds.
Please e-mail me for examples of pre-grant inquiry forms
• Written grant agreement
Specify the charitable purpose
Require the grantee to maintain grant funds in separate account
Require grantee to maintain records of receipts and expenditures and make such records available to the private foundation for inspection
Require the grantee to repay grant funds, if they were not utilized for purposes of the grant
Require the grantee to provide annual reports and a final report on its use of the grant funds
Prohibit the use of the grant funds for lobbying, political activities, re-granting and non-charitable uses
Must be executed by the private foundation and the grantee
Please e-mail me for a copy of the sample agreement letter
Prepared by YH Advisors, Inc. 50
Verifying Grant Recipients (Cont.)
Grants to foreign charities (Cont.)
o Expenditure responsibility (Cont.)
• Annual reports (must be received in all years that grant funds expended)
Detailed breakdown of how grant funds were expended during the relevant period, in comparison to the initial budgets of the grantee
Narrative description of the grantee’s progress in achieving the purposes of the grant during the year
Statement whether the grantee has fully complied with the terms of the grant agreement
Signature of the authorized officer of the grantee
Please e-mail for a sample grantee report form
• Final reports
Must be received within a reasonable period of time after the close of the grantee’s annual accounting period in which all the grant funds were expended or the grant was terminated (generally, 90 days)
• Reports to the IRS
Must annually report to the IRS on every expenditure responsibility grant made
Please see the example of the Form 990-PF attachment in the course materials
• Investigate problems with grant
Private foundation must take corrective measures, if a diversion of grant funds has taken place.
Take all reasonable and appropriate steps to recover the grant funds
Withhold further payments to the grantee until receive assurances that further diversions will not occur
Prepared by YH Advisors, Inc. 51
Verifying Grant Recipients (Cont.)
Grants to foreign charities (Cont.)
o Expenditure responsibility (Cont.)
• How to fail expenditure responsibility
Fail to conduct sufficient pre-grant inquiry
Fail to include required terms in grant agreement
Fail to receive annual or final reports
Fail to attach required support documents to the Form 990-PF
• Disadvantages of expenditure responsibility
Tougher to make general support grants under expenditure responsibility
Required periodic reporting could be tough to obtain from certain countries
Probably not the preferred method if the private foundation grantor expects to fund the foreign charity over a long-term period
Types Of Self-Dealing
I. Sale between PF (private foundation) and DP (disqualified person)
A. Foundation holds charitable auction and sells item to DP.
B. Foundation makes bad investment; DP wants to buy from
foundation at more than FMV.
C. Foundation manager retires, and PF sells him the car owned
by the PF that he used for site visits.
II. Lease transaction between PF and DP
A. DP leases office space larger than needed; sublets space to
foundation.
III. Loan between PF and DP
A. Foundation needs money to make distributions, DP loans.
B. Foundation loans money to DP’s business at an above-
average interest rate.
52
Types Of Self-Dealing (Cont.)
IV. Furnishing of goods, services, or facilities between PF and DP
A. PF provides office space to DP at no charge.
B. DP uses PF’s office supplies.
V. Payment of compensation by PF to DP
A. DP receives directors’ fees.
B. DP receives payment for serving as PF’s investment
manager.
VI. Use of PF’s income or assets by a DP
A. DP uses PF’s deposits in a bank as collateral for a loan.
B. DP uses PF’s accounts with an investment manager to
reduce the amount of fees paid on his personal account.
C. PF purchases table at charity gala; DPs and friends
attend. 53
Tips To Prevent Self-Dealing
I. Know who the PF’s DPs are. This includes family members,
businesses owned by DPs, etc.
II. Carefully scrutinize any financial transaction between the PF and
a DP, to assure yourself whether an exception to self-dealing
applies. Self-dealing is different from a conflict of interest.
III. DPs should clearly identify PF checkbooks/credit cards, so that
they are not inadvertently used when making a personal purchase.
Similarly, when making account transfers, care should be taken.
IV. Consider whether grants to charities that include membership
benefits, event tickets and similar quid pro quos result in self-
dealing when a DP uses the benefits. If a claim is made that the
benefits are incidental to accomplishing a charitable purposes,
then written documentation should be maintained.
54
Alternative Investments
I. Alternative investments
A. Alternative investments include notional contracts, hedge funds,
fund of funds, private equity funds and other investment
partnerships.
B. Generally, income from such investments is not subject to federal
income tax. Sect. 512(b)(5)
C. If the fund borrows to make investments and generates income from
leveraged funds, the foundation will have to pay its share of income
attributable to the debt financed property. Sect. 514
D. Option: Establish a “blocker corporation,” created offshore in a
jurisdiction that does not impose income tax at the corporate level
and avoids the corporate level tax for the foundation the blocker
distributes dividends to the foundation that are not taxed as UBIT to
the foundation. See PLR 20031538
55
56
Alternative Investments (Cont.)
E. U.S. anti-deferral regime for passive foreign investment
companies (PFICs) 20031538
F. Seventy-five percent of PFIC’s income comes from passive
income.
G. No taxes are due until there is a distribution of
accumulated dividends.
H. Reported income is taxed as ordinary income, and an
interest penalty must be paid. See IRC
297(c) and
1291
Revenue Included In Net Investment Income
I. Interest
II. Dividends
III. Rents
IV. Royalties
V. Payments with respect to securities loans
VI. Income from sources similar to those above (????)
VII. Capital gain (special exclusion is listed on next slide).
Remember that for donated assets, the donor’s tax basis
carries over to the foundation.
57
Revenue Excluded From Net Investment Income
I. Revenue subject to unrelated business income tax
II. Inventory sales
III. Income from sources not similar to those listed on the
previous slide 1-5 (????)
IV. Capital gain from the sale of charitable use assets held for at
least one year, when the proceeds are used to purchase similar
charitable assets
V. Net capital loss cannot be used to offset other investment
income, carried forward or carried back.
VI. Tax-exempt income (interest on municipal bonds)
58
Deductions Included In Net Investment Income
I. Ordinary and necessary expenses related to the production or collection
of gross investment income
II. Ordinary and necessary expenses related to the management,
conservation or maintenance of property held for the production of
investment income
III. Depreciation of investment assets must be straight-line.
IV. Cost depletion of investment assets is permitted, but percentage
depletion is not.
V. Overhead expenses can be allocated based on a reasonable and
consistent allocation.
VI. Deductions related to income earned from a charitable activity cannot
exceed the income.
VII. Documentation for allocations of joint activities is critical. Example:
Foundation manager’s compensation, which is allocated between
investment and charitable activities (timesheets!)
59
Tips For Qualifying For The 1% Tax Rate
I. Check calculation before year-end, to determine estimate of
spending needed to qualify; accelerate the payment of grants
that would have been paid in the following year anyway
II. Alternate years between 1% and 2% and coordinate distributions,
so that they are as low as possible in 2% years in order to drive
the historical ratio down
III. In initial year of existence, make no qualifying distributions. This
will ensure the 1% for the second year, as the historical ratio will
be 0.
IV. Consider not accelerating distributions, in order to qualify for
the 1% rate when the tax savings is immaterial (i.e., spending
$100,000 in grants to save $1,000 in tax.) This will improve the
ratio for future years when capital gains might increase tax
savings.
60
61
Excess Business Holdings Rules
(Sect. 4943)
I. General overview
A. Generally, holdings not permitted in excess of 20%
B. Combine the holdings of the private foundation and disqualified
persons
II. Definitions
A. Business enterprises
1. Not including functionally related business
2. Trade or business conduct that is substantially related to
exercise of charitable functions
3. Trade or business in which substantially all work is performed
without compensation
4. Business carried on primarily for the convenience of members,
students, patients, officers or employees (such as a cafeteria
operated by a museum)
62
Excess Business Holdings Rules
(Sect. 4943), Cont.
5. Business that consists of selling of merchandise, substantially all
of which was received as gifts or contributions
6. Activity carried on within larger combination of similar
activities related to exempt purpose
B. Not including “passive” businesses (95% of income from “passive”
sources)
1. For example, a business that generated only royalty income
2. See PLR 200420029 (activity deemed not to be a business
enterprise)
3. IRS rules that a private foundation’s ownership of 100% of the
stock of a company would not be classified as excess business
holdings, because at least 95% of the company’s gross income
came from passive sources. See PLR 201127011
63
Excess Business Holdings Rules
(Sect. 4943), Cont.
4. See Sect. 4943(d)(3) and Reg. 53.4943-10(c)(1) for the 95%
rule
C. Excess business holdings (Sect. 4943(c)(2))
1. General rule: Hold no more than 20% of voting stock
a. PLR 199124061: Cannot “convert” voting stock to non-
voting stock by agreeing not to vote the stock
b. No limit on the amount of non-voting stock that private
foundation can own
D. Exceptions
1. Increase to 35% when unrelated owner has effective control
(Reg. 53.4943-3(b)(3)(ii))
64
Excess Business Holdings Rules
(Sect. 4943), Cont.
a. Effective control is the power to direct the management
and policies of a business enterprise
E. Private foundation can own 2% of voting stock of business enterprise,
regardless of what is owned by disqualified persons.
F. Ownership of the stock of a functionally related business (Reg. 53.
4943-10(b))
1. General rule: Hold no more than 20% of voting stock
a. Business related to the exempt purposes of the private
foundation
b. See Sect. 4942(j)(4) and Reg. 53.4942(a)-2(c)(3)(iii)
c. See PLR 201006032
2. Private foundation’s program-related investments
65
Excess Business Holdings Rules (Sect. 4943), Cont.
G. Disposition of excess business holdings
1. 90-day period (knows or reason to know of the excess business
holdings)
a. Private foundation acquires ownership other than by purchase
b. For example, disqualified person acquires additional holdings
H. Gifts and bequests
1. Five-year time period (ability to obtain another five years under
certain circumstances)
a. See Sect. 4943(c)(7)(A)
b. PLR 200650018: Private foundation received five-year extension
when making best efforts to dispose of interest in farm
66
Excess Business Holdings Rules
(Sect. 4943), Cont.
c. PLR 200833018: Private foundation received five-year extension
when making best efforts to dispose of interest in farm.
d. PLR 200650018: Private foundation received five-year extension
for publicly traded stock (thin volume/sales restrictions).
e. PLR 201105053: IRS granted a private foundation an additional
five years under Sect. 4943(c)(7) to dispose of excess business
holding that resulted from an unusually large bequest.
III. PLR 2011220037
A. Voting stock gifted to non-functionally integrated Type III
supporting organization was treated as subject to 4943, due to
redemption from ESOP.
B. IRS permitted a five-year extension for disposition of the stock.
67
Jeopardizing Investments
I. Consider gifts of “excess” stock/securities, as opposed to just selling
A. Potentially reduces capital gain subject to the net investment
income excise tax
II. Rules for the application of the extension of five-year holding
period
A. Request for an extension to the IRS before the expiration of the
initial disposal period
B. Diligent efforts to dispose of the holdings within the five-year
period
C. Submission to the IRS of a plan for disposition
D. Submission of the plan to the attorney general of such plan, and
the attorney general’s response to the plan
68
Jeopardizing Investments (Cont.)
E. IRS determination that such plan can reasonably be expected to
be carried out before the close of the extension period.
F. IRS may grant an additional period up to five years to dispose of
stock
III. Options for disposition of excess business holdings
A. Sale of stock
B. Liquidation of the corporation when the foundation is the sole
owner of the stock
C. Reorganization of the corporation through conversion of voting
stock to non-voting stock
D. Transfer of shares of stock to one or more public charities
69
Jeopardizing Investments (Cont.) E. Conversion of foundation to a supporting organization affiliated with
a public charity
IV. Jeopardizing investments
A. What are jeopardizing investments?
1. Sect. 4944 provides that if a private foundation invests its assets in
such a manner that will jeopardize the accomplishments of its
exempt purposes, the foundation and possibly its managers are
subject to certain excise taxes.
2. Foundation managers failed to exercise ordinary business care and
prudence under the facts and circumstances at the time of mailing
the investment. Knowingly and willing engages in a transaction
when manager is aware that transaction may violate Sect. 4944. IRS
decision is made on an investment-by-investment basis. No category
of investments are treated as a “per se” violation of Sect. 4944.
Transaction may be protected by a reasoned opinion of counsel.
70
Jeopardizing Investments (Cont.)
3. IRS will closely scrutinize trading in securities on
margin, commodity futures, puts calls and
“straddles.”
B. Program-related investments exempted from jeopardy
investment rules
1. The primary purpose is to accomplish one or more tax
exempt purposes, and no significant purpose is the
production of income or the appreciation of property.
2. PRIs are not subject to excess business holdings rules
under Sect. 4943 and may be treated as qualifying
distributions under Sect. 4942.
71
Jeopardizing Investments (Cont.)
1. An investment can be made to either a charity, non-profit or
commercial business that is carrying out the charitable purposes of
the foundation.
2. Investment would not have been made but for the investment and
the accomplishment of the exempt purpose.
a. Examples:
― Low-interest or interest-free loans to needy students
― High-risk investments in non-profit/low-income housing
― Low-interest loans to small businesses in economically distressed
areas, owned by disadvantaged groups where commercial loans
are not available
72
Jeopardizing Investments (Cont.)
― Investment in businesses in deteriorated urban
areas
― Investments combating community deterioration
― Purchase of stock or loans to businesses in a
developing country
― Loans to businesses in rural areas that employ large
numbers of poor people
― Guarantee for a loan to charitable organization
engaged in charitable activities
73
Jeopardizing Investments (Cont.)
V. Each program related investment must be made subject to
a written commitment that includes:
A. An agreement by the recipient to use the funds only
for the purposes of the investment
B. Submit at least once a year a full and complete
financial report ordinarily required by commercial
investors
C. Keep adequate books and records
D. Funds must not be used for legislative or political
activities
74
Jeopardizing Investments (Cont.)
VI. General observations on program-related investments
A. Take responsibility for the funds granted to the foreign charity
B. Granting private foundation conducts specific oversight and
monitoring procedures
C. Necessary steps to take
1. Pre-grant due diligence that foreign recipient is a bona fide
charity
2. Ensure that grant is actually spent only for the purpose for
which it is made
3. Obtain full and complete reports form the foreign grantee
organization on how funds were spent
75
Jeopardizing Investments (Cont.)
4. Make full and detailed reports on the expenditures to the
IRS on Form 990-PF
D. Private letter rulings
1. See PLR 200813043 for IRS guidance when making grants to
foreign charities
― Also see PLR 201039047
2. See PLR 20085203 for IRS guidance regarding when
expenditure responsibility should be exercised for grants
made to domestic non-charitable entities
3. See PLR 20114527 for IRS guidance on the receipt of royalty
payments resulting from funding hospital research program
Reporting Self-Dealing On Form 4720
I. For self-dealing transactions that involve the use of money (loan), the
amount involved is the FMV of the use of the money, not the amount of
money borrowed. With today’s interest rates, that amount is usually
pretty small.
II. The self-dealer must file a separate Form 4720 if his tax year is different
from the foundation’s (typically an issue if the foundation is on a fiscal
year that is other than the calendar year).
III. No abatement of the penalty is permitted.
IV. Penalty is 10% of the amount involved and is owed by the self-dealer. If
the PF pays a penalty, this results in another self-dealing transaction.
V. Correction involves undoing the transaction to the extent possible, but
not putting the PF in a worse position than if it had engaged in the
transaction with a non-insider. If terms are favorable to the PF and must
be rescinded, the DP has to make the PF “whole”.
76
Reporting Taxable Expenditure On Form 4720
I. Remember that a taxable expenditure may still be a qualifying distribution. A
scholarship grant that is a taxable expenditure because an approved plan is
not in place, was still made for charitable purposes.
II. Abatement of the penalty can be requested as long as the taxable event was
due to reasonable causes and not willful neglect, and the event was corrected
within the prescribed correction period.
III. Correction is generally accomplished by recovering part or all of the
expenditure, to the extent recovery is possible. When full recovery is not
possible, additional corrective action includes one or more of the following:
Requiring that any unpaid funds due to the grantee be withheld
Requiring that no further grants be made to the particular grantee
Requiring reports regarding the use of the funds
Requiring improved methods of exercising expenditure responsibility
Requiring improved methods of selecting recipients of individual
grants
77
Form 4720: Foundation Manager Liability
Remember that foundation managers who approve of certain
transactions (listed below) reported on Form 4720 may
personally be subject to a penalty. The tax is imposed only
when the foundation manager knew that the expenditure was
improper and agreed to the making of the expenditure willfully
and not due to reasonable causes.
The following types of penalty transactions could result in FM
liability:
• Self-dealing
• Taxable expenditure
• Jeopardizing investment
• Political expenditure
78
Prepared by YH Advisors, Inc. 79
Form 990-PF: Red Flag Items
Receivables/payables with insiders (Part II)
Capital gains not computed properly for donated securities (Part IV)
Undertaking political activities (Part VII-A)
Undertaking of transactions with disqualified persons (Part VII-B)
Exercising expenditure responsibility without required Form 990-PF attachment (Part VII-B)
Compensating disqualified persons (Part VIII)
Reporting grants to certain types of recipients (Part XV)
Generating unrelated business income (Part XVI-A)
Prepared by YH Advisors, Inc. 80
IRS Audits Of Private Foundations
General overview
o Have experienced marked increase in IRS audits of our private foundation clients
• IRS referenced such in their 2012 EO work plan
o Audit selection
• Appear to be targeted audits, to the best of our knowledge
o Audit procedures
• Interestingly, the majority of audits of our private foundation clients are being conducted by out-of-state auditors.
Prepared by YH Advisors, Inc. 81
IRS Audits Of Private Foundations (Cont.)
Common IRS audit issues
o Self-dealing
• Reimbursement of personal expenses
• Loans
• Unreasonable compensation
o Employment tax issues
• Failure to file 1099s
Failure to undertake required back-up withholding
o Under-reported unrelated business income
• K-1s
o Foreign reporting
• FBAR
o Expense allocations
• Form 990-PF, Part I
BEST PRACTICES WITH FUTURE FORM 990-PF FILINGS
Candice Meth, EisnerAmper
Lessons Learned From Self-Dealing
Leases: Don’t pay rent to disqualified person
Special events: A private foundation cannot purchase tickets to a charitable fundraising event and then provide the tickets to disqualified persons or to third parties, if doing so benefits a disqualified person. There is an exception that permits foundation managers to use the tickets, if attending the event furthers their duties for the foundation.
83
Lessons Learned From Self-Dealing (Cont.)
Investment management services might be okay.
Loan to disqualified person – bad idea (exception for “qualified disaster” super-storm Sandy)
Using credit cards: If a disqualified person uses a foundation credit card for personal expenses and later reimburses the foundation for the expenses, this is considered a loan and a form of self-dealing, even if the person reimburses the full amount within a month of the transaction.
84
Providing Investment Management Services For A Fee Is Okay
Per Private Letter Ruling 200217056, it was determined that payment for fees by a private foundation for investment services provided by a disqualified person, as described in Sect. 53.4941(d)-3(c)(2), will not be an act of self-dealing.
85
Pro-Bono, Please!
As stated in the IRS’ Publication 578 Tax Information for Private Foundations and Foundation Managers “providing goods, services, or facilities between a private foundation and a disqualified person … is not self-dealing if a disqualified person provides them to the foundation without charge and the goods, services, and facilities are used exclusively for purposes specified in section 501(c)(3) of the Code”.
86
Lessons Learned With Respect To
Qualifying Distributions
IRS revocation: Keep a record of tax status based on when you
made the grant
Foreign grants: Expenditure responsibility or equivalency
determination (pay attention to new rules)
Giving to donor-advised fund: A good option if you are trying to
target the 1% tax
Scholarships/honorariums: Might need to create a 1099; special
IRS rules!
87
Concerns About Compensation
Executive compensation is a hot topic in the press.
Are you doing compensation studies? Do you have a
compensation-setting committee? Can you show that
compensation is reasonable in comparison to that of other
foundations?
The box for payment to disqualified person should be checked
“Yes” (Part VII-B Question 1(a)4), since the executive director is
a disqualified person and is paid (if no compensation was paid,
it’s possible this box would get checked “No”).
88
Concerns About Compensation
(Cont.)
Does it “look bad” if the directors or trustees receive stipends?
A private foundation may pay reasonable compensation to a
disqualified person for providing necessary professional
services to the foundation. Example: A foundation can pay a
member of its board of directors, who also provides accounting
services to the foundation, as long as the fees are reasonable.
W-2 vs. 1099: An individual receives one or the other, but never
both!
Remember, in a family foundation, your relative or spouse
should not be the person setting your compensation – best
practices!
89
Problems With The Current Form
• The form has not been significantly revised since the 1970s, yet
private foundations have evolved significantly and are diverse in
size, mission and endowment structure.
• The information about private foundations is extremely delayed
due to the fact that many foundations are still paper-filing their
returns, and therefore benchmarking and better understanding of
the sector are hampered.
• There are no governance questions on the form.
• The current excise tax structure, which varies from 1% to 2%, is
confusing, unpredictable and needs to be reviewed.
90
The number of U.S. foundations has grown by 246%, and the total
assets of U.S. foundations by 395%, since 1975 – while the 990-PF
regulatory structure has remained static.
Number of U.S. Foundations
22,08825,639
32,401
40,140
56,582
71,095
75,595
21,877
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1975 1980 1985 1990 1995 2000 2005 2008
Source: The Foundation Center
91
The Excise Tax: Keep It Simple And
Focused On Its Primary Purpose
Primary purpose: To raise tax revenue!
With this in mind, gear the tax to be as reliable, predictable and
steadily growing as possible. Avoid schemes that invite distortion of
what foundations are supposed to be about (charitable
distributions) in order to “game” tax payments.
• Highly volatile net income (including realized capital gains), as
the tax basis meets none of these requirements
• A flat tax will help, but we will still have fluctuation.
92
Excise taxes on net investment income paid by foundations average $552 million annually, with large fluctuations from year to year.
$523
$730
$625
$305
$234
$328
$469
$624
$796
$890
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Mil
lio
ns
$552
Mil. Ave.
Source: www.irs.gov/taxstats/charitablestats,IRS Data Files
93
Current Status Of The Tax
Administration’s FY13 budget proposal
On Feb. 13, 2012, the Administration released its fiscal year 2013
budget proposal. The budget included a provision calling for a
single, 1.35% excise tax rate on investment income of private
foundations, rather than the revenue-neutral 1.39% that Congress
has been advocating. The proposed change would be effective for
taxable years beginning after the date of enactment. The
Administration estimated that permanently setting the rate at 1.35%
would result in a tax revenue loss of $54 million over 10 years.
Future of the flat tax : It seems that the president, the House and
the Senate agree that a flat tax is needed, but don’t necessarily
agree on what that percentage should be.
94
Change Is In The Air
• Tax reform is inevitable, however, given the concerns over
modification to the charitable giving deduction. The future of the
excise tax for private foundations is greatly unknown.
• There may be changes in reporting for donor-advised funds
coming soon. How will that affect private foundations that give to
such entities?
95
IRS Workplan: What’s On The Horizon
FY 2012 projects:
• Colleges and universities – compensation, endowment,
UBIT
• Disaster relief communications
• Group rulings
• Mortgage foreclosure assistance
• State-sponsored workers’ compensation organizations
(501(c)(27))
• Private foundations – PRI, UBIT, foreign grant-making,
?? Stay tuned!
• EO services and assistance
96