Tax Exempt Organizations

2 Credit Hours

At a time when many of the major problems facing the country cannot be solved by governments without raising taxes and any increase in taxes is not considered politically possible, many new and existing nonprofit organizations are attempting to fill the gap. Thus, the role of, and need for revenue to support, nonprofit organizations is becoming increasingly more important. This course considers the taxation of public charities, such as educational institutions and health care organizations, as well as so-called social welfare organizations which provide much of the funding for candidates seeking election at the federal and state levels, and private foundations. The major topics include: qualification for and retention of tax-exempt status; the unrelated business income tax; the prohibition on private inurement; the restrictions on private benefits, lobbying, and political campaign activities; and the tax consequences to donors as a result of making contributions to these organizations. PRE-REQUISITES/RESTRICTIONS: BUSCOM 690 Basic Federal Income Tax or enrollment in the Tax LLM program is a pre-requisite for this course.