Not-for-profit entities, which are ordinarily tax exempt, include public charities (schools, religious, health and educational organizations, museums and arts groups, environmental and service organizations), private foundations, charitable trusts, social welfare organizations and business leagues. Collectively, the nonprofit sector controls billions of dollars in charitable assets thus forming a critical feature of the contemporary economy and social organization in the U.S. The course considers the distinctions between not-for-profit and business corporations, focusing on the responsibilities, obligations, and potential liabilities of officers, directors, and trustees of charitable organizations. It explores IRS rules concerning self-dealing, deductibility of contributions, and taxation of unrelated business income—as well as limits and requirements affecting lobbying and other political activity by nonprofits. The extension of First Amendment protection for solicitation of charitable funds is explored in relation to the efforts of the states (including New York) to regulate fraudulent, deceptive, and misleading solicitations. The spectrum of commercial transactions nonprofits engage in is also considered, including contracts, leases and intellectual property arrangements. Grading will be on the basis of a final examination.
This upper-level substantive course examines the structure, governance, operation, and regulation of various charitable organizations from the perspective of counseling, or even establishing, such entities.
Recommended for the following Professional Pathways: Corporate Transactions and Governance; Tax; Government/Public Sector; Health Care Management and Compliance; General Practice – Transactional
Pre-Requisites: Federal Income Tax: Individual
Open to Tax LL.M. students.
Note: This is offered as a 2 credit or a 3 credit course. Check specific semester registration materials.