Today’s Nonprofit Law Jargon Buster is a doozy so keep your hat on.
In the last Nonprofit Law Jargon Buster, we looked at the difference between a private foundation and a public charity. The default rule is that all 501(c)(3) organizations are private foundations unless they qualify as public charities. Private foundations are subject to [...]
Daily Dose of Nonprofit Law
Category Archives: Public Charity
Nonprofit Law Jargon Buster – Public Support Test
Nonprofit Law Jargon Buster: Private Foundation v. Public Charity
Generally, ever since 1968, Section 501(c)(3) organizations have been divided into two categories for tax purposes: public charities and private foundations.
Public Charities.Public charities generally depend on outside funding. Some organizations, including churches, schools, and hospitals, are, by their very nature, considered “publicly supported.” Other organizations must pass one of two mathematical public support tests to [...]
Proposal to Abolish the Rebuttable Presumption
The Chronicle of Philanthropy reports that Sen. Grassley is once again attempting to change the rules that impact how certain exempt organizations set executive compensation. This time, Sen. Grassley wants to do away with the “rebuttable presumption process” that exempt entities have been relying on to provide some measure of assurance that their compensation decisions will not trigger intermediate sanctions.
