Legal counsel for nonprofit organizations
and social entrepreneurs

Category Archives: 501(c)(3)

Nonprofit Reporting Requirements Present Traps for the Unwary

Posted on March 18, 2015 by bentakis

Running a nonprofit organization requires managing a dizzying array of details under stressful circumstances, including overseeing staff and service providers on a limited budget, seeking donations and grants, and navigating the various personalities and preferences on the Board of Directors. … Continue reading

Posted in 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), Form 990, Reporting | Comments Off on Nonprofit Reporting Requirements Present Traps for the Unwary

Form 1023-EZ and Political Activity

Posted on August 15, 2014 by bentakis

Tax Analysts has a new piece on the Form 1023-EZ, focusing on the challenges the IRS will face in enforcing the restrictions on 501(c)(3) organizations engaging in political activity. The piece includes a few quotes from me. State and federal … Continue reading

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Qualifying for 501(c)(3) Status as an Arts Organization

Posted on July 15, 2014 by bentakis

For anyone contemplating starting an arts nonprofit, I have drafted a comprehensive guide to qualifying for 501(c)(3) status as an arts organization for the Center for Art Law website, which I will reprint below. Background New non-profit organizations often find … Continue reading

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Who Should (and Should Not) File the Form 1023-EZ?

Posted on July 14, 2014 by bentakis

On July 1, 2014, amidst much criticism, the IRS radically changed the nonprofit world by launching the Form 1023-EZ, a new streamlined method of applying for 501(c)(3) status. The Form 1023-EZ is now live on www.pay.gov, along with final instructions, … Continue reading

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The IRS issues a draft “Form 1023-EZ”

Posted on May 4, 2014 by bentakis

A couple of weeks ago, the news surfaced on the ABA listserv for tax-exempt organizations that the IRS has been quietly working on a significantly shortened “Form 1023-EZ,” which would drastically cut down on the scrutiny applied to small organizations … Continue reading

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New Article: The Tax Consequences of Fee-for-Service

Posted on February 3, 2014 by bentakis

A new article of mine is now available on the Greater Washington Society of CPAs’s Nonprofit Accounting Basics website. This article, the first in a two-part series on the tax consequences of fee-for-service, examines the exempt purpose test and commerciality … Continue reading

Posted in 501(c)(3), Commerciality Doctrine, Fee-for-Service, Unrelated Business Income Tax | Comments Off on New Article: The Tax Consequences of Fee-for-Service

Non-Profit News Organization Receives Tax-Exempt Status After Long Delay

Posted on September 26, 2012 by bentakis

The non-profit news organization “San Francisco Public Press” has been awarded tax-exempt status as a 501(c)(3) after an astounding 32-month wait. The IRS has traditionally taken a skeptical view of journalism organizations that apply for 501(c)(3) status as “educational” organizations, … Continue reading

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IRS Takes a Hard Line on Private Benefit and Private Inurement Rules

Posted on September 14, 2012 by bentakis

A recent private letter ruling by the IRS denying the tax-exempt status of an organization under section 501(c)(3) of the Code highlights some of the risks inherent in business dealings between an organization and its officers or directors. Under the … Continue reading

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Confusion at the IRS regarding 501(c)(3) applications

Posted on August 31, 2012 by bentakis

Greg McRay at Foundation Group has a great post illustrating the confusion at the IRS resulting from the clash between the rules regarding retroactive granting of 501(c)(3) status and the rules revoking 501(c)(3) status from organizations that fail to file … Continue reading

Posted in 501(c)(3), Form 1023 | Comments Off on Confusion at the IRS regarding 501(c)(3) applications