Qualifying as a Nonprofit Tax-Exempt Organization: A Guide for Attorneys, Accountants, and Executive Management

Though frequently used interchangeably, the terms tax-exempt organization and non-profit organization do not carry the same legal definition. Non-profit enterprises are those that do not distribute earnings in the form of dividends or distributions, so while all tax-exempt organizations are non-profit, not all non-profit organizations are necessarily tax-exempt. This work provides a comprehensive look at the US federal Internal Revenue code governing tax-exemp status, carefully detailing the criteria specified in the code and related Treasury Regulations. Also outlined are the prescribed procedures for filing for tax-exempt status. Robert N.Sughrue and Michelle L.Kopnski present a thorough discussion of the various types of tax-exempt organizations and the characteristics unique to each. Sections 501©, 521, 527, and 528 of the Internal Revenue Code are closely analyzed, and the organizational tests of 501© (3) institutions are provided. In addition, accounting systems for tax-exempt organizations, internal controls, and reporting requirements are also covered. Among the other topics addressed are unrelated business taxable income, private foundations, financial considerations in tax-exempt and other non-profit organizations, and financial considerations and practical applications. Students and professionals in the fields of finance, investment, accounting, and law should find this work to be a useful reference tool, and academic, public, and law libraries will consider it a worthwhile addition to their collections.