Nonprofit Law Matters

Monthly Archives: August 2012

Colvin Letter to IRS Requests Answers on Criteria for Nonprofit Issue Ads Broadcast during Elections

Posted in Tax Treatment of Lobbying & Political Activities

On August 24, I wrote to Lois Lerner, director of Exempt Organizations at the Internal Revenue Service, with the following message: You’ll recall my May 7, 2012, letter suggesting that the IRS clear up the confusion surrounding how to use the two existing Revenue Rulings to determine, for instance, whether a (c)(4) has done too… Continue Reading

Applying Section 6113 Fundraising Disclosures to Modern Media: @IRS: 2 much 2 ask 4 upd8?

Posted in Revenue Generating Activities, Tax Treatment of Lobbying & Political Activities

The IRS requires that certain disclosures be made when tax-exempt entities conduct fundraising.  Section 6113 of the Internal Revenue Code provides that tax-exempt organizations, contributions to which are not tax deductible―such as political organizations, social clubs, and fraternal orders―that publish fundraising solicitations, must include in any solicitation an express and conspicuous statement that contributions are… Continue Reading

IRS Issues Guidance on the Deductibility of Donations to LLC Subsidiaries of Section 501(c)(3) Organizations

Posted in Nonprofit Structures, Relationships & Transactions, Private Foundations, Public Charities

The past week saw the publication of guidance from the IRS that the charitable sector has been awaiting for eleven years:  under Notice 2012-52, donors to a limited liability company (LLC) wholly owned by a Section 501(c)(3) organization can claim a charitable deduction under Section 170.  The notice is effective for contributions made on or… Continue Reading