Transcript An American Perspective on Not-for-Profit Tax Concessions by Jon Forman Alfred P. Murrah Professor of Law University of Oklahoma Norman, Oklahoma Treasury Seminar Canberra 25 July 2011

An American Perspective
on Not-for-Profit Tax
Concessions
by Jon Forman
Alfred P. Murrah Professor of Law
University of Oklahoma
Norman, Oklahoma
Treasury Seminar
Canberra
25 July 2011
Outline
 Overview of U.S. nonprofit law, with an
emphasis on the role of the Internal
Revenue Service in regulating nonprofits
 React to your Treasury’s recent reform
proposal
 Review some recent tax reform
proposals in the U.S.
2
Size of the Nonprofit Sector
 1.5 million nonprofits, foundations,
and religious congregations
 http://www.independentsector.org/our_sector
 Returns of Tax-Exempt Organizations,
Fiscal Year 2010
 Total 776,300
 Internal Revenue Service Data Book, 2010,
Table 13, http://www.irs.gov/pub/irssoi/10databk.pdf
3
More Nonprofit Statistics
 501(c)(3)s filed 313,121 information
returns for Tax Year 2007
 Held nearly $2.7 trillion in assets
 Reported $1.4 trillion in revenue,
more than two-thirds of which came
from program services (Figure A).
http://www.irs.gov/pub/irs-soi/07eocharteobull.pdfhttp://www.irs.gov/pub/irssoi/07eocharteobull.pdf
4
http://www.irs.gov/pub/irs-soi/07eocharteobull.pdfhttp://www.irs.gov/pub/irssoi/07eocharteobull.pdf
5
6
Top 10 Charities, $billions
7
Life Cycle of a Public
Charity/Private Foundation
 Organizations that meet the
requirements of Internal Revenue
Code section 501(c)(3) are exempt
from federal income tax as charitable
organizations.
 In addition, contributions made to
charitable organizations by individuals
and corporations are deductible under
Code section 170.
http://www.irs.gov/charities/charitable/article/0,,id=136459,00.html
8
Charities
 Every exempt charitable organization is classified
as either a public charity or a private foundation.
 Generally, organizations that are classified as
public charities are those that
 (i) are churches, hospitals, qualified medical research
organizations affiliated with hospitals, schools,
colleges and universities,
 (ii) have an active program of fundraising and receive
contributions from many sources, including the
general public, governmental agencies, corporations,
private foundations or other public charities,
 (iii) receive income from the conduct of activities in
furtherance of the organization’s exempt purposes, or
 (iv) actively function in a supporting relationship to
one or more existing public charities.
9
Private Foundations
 Private foundations, in contrast, typically
have a single major source of funding
(usually gifts from one family or
corporation rather than funding from
many sources) and most have as their
primary activity the making of grants to
other charitable organizations and to
individuals, rather than the direct
operation of charitable programs.
10
Life Cycle of a Public Charity
 During its existence, a public charity has
numerous interactions with the IRS – from filing
an application for recognition of tax-exempt
status, to filing the required annual information
returns, to making changes in its mission and
purpose. The IRS provides information,
explanations, guides, forms and publications on
all of these subjects – they are available through
this IRS Web site. The illustration below provides
an easy-to-use way of linking to the documents
most charities will need as they proceed though
the phases of their “life cycle.”
 Graphical depiction, http://www.irs.gov/pub/irstege/pc_lifecyclechart_062910.pdf
http://www.irs.gov/charities/charitable/article/0,,id=122670,00.html
11
Benefits of 501(c)(3) Status
 Tax exemption under Internal Revenue
Code (the Code) section 501(c)(3)
provides a number of benefits:
 Exemption from Federal income tax;
 Tax-deductible contributions;
 Possible exemption from state income,
sales, and employment taxes;
 Reduced postal rates;
 Exemption from Federal unemployment tax;
and
 Tax-exempt financing.
http://www.stayexempt.irs.gov/Resource-Library/pdfs/Mod1_Summary.pdf
12
Tax-Exempt Organizations and
501(c)(3)s
 A tax-exempt organization is a
trust, unincorporated association, or
nonprofit corporation described in the
Internal Revenue Code as exempt
from Federal income tax.
13
501(c)(3) Charities
 A 501(c)(3) is a type of exempt organization. It
must be organized and operated for one or more
exempt purposes described in Code section
501(c)(3):
Charitable,
Educational,
Religious,
Scientific,
Literary,
Testing for public safety,
Fostering national or international amateur sports
competition, and/or
 Preventing cruelty to children or animals.







14
Public Charity Status
 When an entity qualifies as a
501(c)(3), the IRS presumes it is a
private foundation (except for
statutory public charities, such as
churches and schools) unless the
organization can show it is a public
charity.
15
Public Charity Status
 To qualify as a public charity, the 501(c)(3) must
demonstrate it is a type of organization classified
as a public charity by statute such as a church,
hospital or school, or that supports another
public charity.
 In addition, an organization may be classified as
a public charity if it is publicly supported and
receives substantial support in the form of gifts,
grants and contributions from the general public
or a governmental unit and or income from
activities related to their exempt activities like
admissions.
16
Public Charity Status
 If your 501(c)(3) is so new that it cannot show it
is publicly supported, the IRS will treat you as a
public charity for your first five years from the
organization’s formation if it demonstrates that it
can reasonably be expected to be publicly
supported.
 Beginning with the organization’s sixth year, the
IRS will monitor your public charity status based
on your public support as reported on Schedule
A, Public Charity Status and Public Support of
your Form 990.
 If the organization cannot show broad financial
support, the IRS will reclassify it as a private
foundation.
17
Jeopardizing 501(c)(3) Status
 There are four types of activities that
can jeopardize a charity’s 501(c)(3)’s
tax-exempt status:




Private benefit/inurement,
Lobbying,
Political activity, and
Excessive unrelated business income
(UBI).
18
Private Benefit
 501(c)(3)s must avoid all activities
that will substantially benefit the
private interest of any individual or
organization.
19
Inurement
 No part of an organization’s net
earnings may inure to the benefit of a
private shareholder or individual. This
means that a 501(c)(3) organization
is prohibited from allowing its income
or assets to accrue to insiders. The
prohibition of inurement is absolute.
Any amount will jeopardize the
organization’s 501(c)(3) status.
20
Lobbying
 Lobbying is an activity designed to
influence legislation. If its lobbying
activities are substantial, a
501(c)(3) may risk losing its taxexempt status. The IRS uses two
tests to determine whether lobbying
is substantial: the substantial part
test and the expenditure test.
21
Political Campaign Activity
 Political campaign activity involves
directly or indirectly participating or
intervening in any political campaign
on behalf of or in opposition to any
candidate for elective office. The
prohibition of political campaign
activity is absolute. Any violation
may result in the loss of tax-exempt
status and the imposition of excise
taxes.
22
Excessive Unrelated Business
Income (UBI)
 Unrelated Business Income Defined
 For most organizations, an activity is an
unrelated business (and subject to
unrelated business income tax) if it
meets three requirements:
 It is a trade or business,
 It is regularly carried on, and
 It is not substantially related to furthering
the exempt purpose of the organization.
http://www.irs.gov/charities/article/0,,id=96104,00.html
23
Size of the Untaxed
Business Sector
 Nonprofit institutions that serve
households – most 501(c)(3)
organizations, etc. – $483 billion
(5.3% GDP) in 2002
 State and local governments – $749
billion (8.2% GDP)
Congressional Budget Office, Taxing the Untaxed Business Sector (July 2005), at 6,
http://www.cbo.gov/doc.cfm?index=6567.
24
UBI
 Trade or business means selling goods or
services to generate income.
 Regularly carried on means the activity
shows frequency and continuity and that it
is conducted in the same way that a nonexempt organization would run a similar
business.
 Not substantially related means that the
activity is not important to furthering the
exempt purpose of the organization (other
than generating income for it).
http://www.stayexempt.irs.gov/Resource-Library/pdfs/Mod2_Summary.pdf
25
Exceptions to UBI
 The Internal Revenue Code contains a
number of exceptions to the usual
rules of UBI. That means that some
UBI is not subjected to tax. These
exceptions include, but are not
limited to, activities:
 Conducted by a volunteer workforce,
 Conducted for the convenience of
organizational members,
26
Exceptions to UBI continued
 Involving the sale of donated
merchandise,
 Involving the distribution of low-cost
articles,
 Involving income from convention or
trade show participation,
 Involving income from qualified
sponsorship, and
 Traditional bingo.
27
Exclusions and Deductions from
UBI
 In addition to the exceptions
discussed, the Code allows certain
other exclusions and deductions in
calculating UBI tax.
28
Exclusions
 The exclusions include, but are not
limited to, income generated from:
 Interest and dividends,
 Royalties,
 Certain rents from real properties with
the exception of income from debtfinanced property, and
 Certain gains and losses.
29
Deductions
 Allowable deductions include certain expenses,
depreciation, and similar items directly connected
with carrying on an unrelated trade or business.
In addition, other modifications allow for
deductions like:
 The net operating loss deduction, where an
unrelated business loss in a previous or current tax
year is deductible;
 Charitable contributions made by the organization
regardless of whether they are directly connected
with the unrelated trade or business; and
 The specific deduction that allows for $1,000 to be
automatically deducted from the UBI tax calculation.
30
Charitable Gaming and
Applicable Taxes
 A small amount of unrelated trade or business
activity in relation to an organization’s exempt
purpose activity will have no impact on exempt
status. Exempt status is only jeopardized when
the activity generating unrelated income makes
up a substantial part of the organization’s overall
activities.
 Gaming is one of the most common and successful
types of fundraising. It can range from sponsoring a
bingo game to a once-a-year raffle or casino night.
Most often, gaming will generate UBI. Federal
wagering excise taxes apply to certain types of
gaming, but these taxes are typically not applicable
to gaming conducted by 501(c)(3) organizations.
31
Filing Procedures for Form
990-T
 Organizations with gross income of
$1,000 or more from unrelated
business must file Form 990-T
annually.
 Form 990-T is due the 15th day of the
5th month following the end of the
organization’s accounting period.
32
UBIT Statistics
 unrelated business income tax (UBIT)
of $364.6 million reported by
charities for 2004
 Corporate entities made up 85
percent of the Form 990-T filing
population and reported nearly 90%
of total gross UBI
http://www.irs.gov/pub/irs-soi/tehistory.pdf
33
Title XII of the Pension
Protection Act of 2006
 Detailed Summary of Charitable
Provisions
 http://waysandmeans.house.gov/media/pdf
/taxdocs/072806charitable.pdf
 Charitable Giving Incentives
 Charitable Reform
 IRS, Pension Protection Act of 2006
Revises EO Tax Rules
 http://www.irs.gov/charities/article/0,,id=1
61145,00.html
34
Charitable Reform Provisions
 Appraisal Reform
 Notification Requirement for Exempt
Organizations –Annual Notice
 3 years to comply; revocation
 Encourage IRS Information-Sharing
with State Charity Officials
 Public Disclosure of Information
Relating to Unrelated Business
Income Tax Returns
35
Reactions to your Treasury’s
recent reform proposal
 General concerns about Nonprofits
 Specific Reactions to the proposal
36
Concerns about Nonprofits:
high salaries, high expenses
 IRS
 e.g., OU Foundation’s Form 990,
https://www.oufoundation.org/990.pdf
 http://www.nytimes.com/2011/02/15/busines
s/15charity.html
 States
 e.g., Oklahoma Attorney General,
http://www.oag.state.ok.us/oagweb.nsf/0/0a9
382d6ed29978f862572b400738e2f/$FILE/char
ityflier.PDF
37
Concerns about Nonprofits:
high salaries, high expenses
 Charity watch groups, etc.
 http://www.charitywatch.org/toprated.html
 http://liveunited.org/pages/accountability
 GuideStar. National directory of nonprofit
organizations, http://www2.guidestar.org/
 Better Business Bureau. For Charities and
Donors. Includes evaluative reports on some
national and regional charities.
http://www.bbb.org/us/charity/
38
Concerns about Nonprofits:
enriching related parties
 Hospitals and trade associations use
nonprofit status in ways that enrich
doctors, etc.
 Nonprofit, For-profit, and Government
Hospitals: Uncompensated Care and Other
Community Benefits (GAO-05-743T (2005),
http://www.gao.gov/new.items/d05743t.pdf
 State property tax exemption
 http://www.state.il.us/court/opinions/supreme
court/2010/march/107328.pdf
39
Concerns about Nonprofits:
tax evasion
 IRS, Exempt Organization Tax
Avoidance Transactions,
http://www.irs.gov/charities/article/0
,,id=128722,00.html
 OECD, Report on Abuse of Charities
for Money-Laundering and Tax
Evasion (2009),
http://www.oecd.org/dataoecd/30/20
/42232037.pdf
40
Treasury proposal: Scope of
Unrelated Business
 1. What should be the scope of a
related business, unrelated business,
primary purpose or non-primary
purpose test?
 Reconsider the whole concept
 How much of your economy should go
untaxed?
 Passive income?
41
Small-scale Threshold?
 2. Should there be a small-scale
threshold, and if so, what would be
the appropriate threshold?
 3. Is there an alternative principle
that could be used to provide a
small-scale or low-risk activity
exemption?
42
Separate Entity Structure?
 4. Would there be any unintended
consequences resulting from any of
these options?
 5. Which option do you prefer and
why?
 6. Would we need to proceed with
more than one option?
43
Transition: Existing
Activities







7. Would assistance be required to transition to the new
arrangements?
8. What costs will need to be borne by the entity?
9. What are the implications of longer versus shorter
transitional periods?
10. Would identification of the existing activity be by
reference to the overall business or to particular activities?
11. Should activities intended to be carried on or
contracted to enter into before 10 May 2011 be included?
How would these be evidenced?
12. What should be the test for identifying new activities?
13. What is an acceptable time limit for allowing tax
concessions for existing government service delivery? Why?
44
Tax Treatment of Entities Moving
from Exempt to Taxable
 14. Will the continuation of the ‘rule of
books’ model in Division 57 in Schedule
2f of the ITAA 1936 achieve an
appropriate transition from exemption to
taxable status?
 15. Are there any other factors to
consider in transferring a taxable
function or activity of an exempt entity
to a separate entity?
45
Getting back in the black
Australian Government, Budget Overview (2011), at 8,
http://cache.treasury.gov.au/budget/2011-12/content/download/Overview.pdf.
46
http://cboblog.cbo.gov/?p=2371
47
Australian Government, Budget Overview, Budget Statement 1, at 1-13 (2011),
http://cache.treasury.gov.au/budget/2011-12/content/download/bp1.pdf.
48
Congressional Budget Office, The Long-Term Budget Outlook (June 2011), at 64,
http://www.cbo.gov/doc.cfm?index=12212.
49
Top 10 Income Tax Expenditures,
2012 (Billions)
Health insurance exclusion
$184
Mortgage interest deduction
99
401(k) plans
68
Step-up of basis at death
61
Exclusion of net imputed rental income
51
Deductible nonbusiness state and local taxes other
than on houses
49
Employer plans
45
Charitable contrib. (other than health & education)
43
Capital gains (except agriculture, timber, iron, coal)
38
Exclusion of interest on tax-exempt bonds
37
2012 Federal Budget, Analytical Perspectives, Chapter 17, Tax Expenditures, Table 17-3,
http://www.whitehouse.gov/omb/budget/Analytical_Perspectives.
50
Recent Nonprofit Reform
Proposals: Obama's Debt Panel
 Option 1 (The "Zero
Plan"): eliminate all tax expenditures
or, alternatively, preserve only a few
such tax benefits in exchange for higher
marginal rates
 Option 2: establish a 2% AGI floor
 Option 3: an across-the-board
"haircut" for all tax benefits if reform not
enacted as of 2013
http://lawprofessors.typepad.com/nonprofit/2010/11/obamas-debt-panel-and-taxbenefits-for-charities.html
51
Recent Nonprofit Reform
Proposals, CBO
 Congressional Budget Office, Options
for Changing the Tax Treatment of
Charitable Giving (2011),
http://www.cbo.gov/ftpdocs/121xx/d
oc12167/CharitableContributions.pdf
 Slides borrowed from a 15 June
2011 presentation by
[email protected]
52
Current Law Tax Treatment
 Deductibility limited to only itemizers.
 Deduction subject to annual limits:
 Total deductions: 50% of AGI
 Appreciated properties: 30% of AGI
 Contributions exceeding the limits may be
carried forward for up to 5 years.
 Starting in 2013: Pease provision
 Itemized deduction reduced by 3% of AGI
above a specific threshold. Total reduction is
limited to 80% of the deduction.
53
Concerns About the Current Tax
Treatment
 (1) Could the tax subsidies be
extended to more taxpayers without
being too costly? Share of Tax Returns
• Under current
law, tax benefits
only available
for itemizers.
by Tax Filers'
Itemizing Status,
2008
34%
Itemizers
Nonitemizers
66%
54
Concerns About the Current Tax
Treatment
 (2) Could the tax subsidies per dollar
of giving be made more equal?
 After-tax price of giving decreases
with marginal tax rate.
 If facing T = 25%,
 after-tax price of giving = $0.75.
 If facing T = 10%,
 after-tax price of giving = $0.90.
55
Concerns: Concentration of Tax Subsidies
Among High-Income Taxpayers
Figure 4: Different Income Groups' Shares of Total
Donations and the Total Tax Subsidy, 2006
(Percent)
80%
70%
60%
50%
40%
30%
20%
10%
0%
Under $50,000
$50,000 - $100,000
$100,000 - $200,000 $200,000 - $500,000
Above $500,000
Adjusted Gross Income
Source: Congressional Budget Office.
Returns
Charitable Contribution
Tax Subsidy
56
The 11 Policy Options
 Reflecting 3 important characteristics:
 1) whether the tax benefit includes a
floor
 2) whether it is restricted to itemizers
 3) whether it takes the form a deduction
or a credit.
57
The 11 Policy Options
 Grouped into 4 categories:
 Retaining current deduction for itemizers
but adding a floor
 Allowing all taxpayers to claim the
deduction, with or without a floor
 Replacing the deduction with a 25% credit
for all taxpayers, with or without a floor
 Replacing the deduction with a 15% credit
for all taxpayers, with or without a floor
58
The 11 Policy Options
 Two floors examined:
 $500 for single; $1000 for joint filers.
 2% of AGI.
59
Basis for the Estimates
 Micro-simulation model
 2006 Public-use sample of tax returns,
 2007 CPS.
 Impute nonitemizers’ charitable
giving: SCF and CEX
 All estimates are for tax year 2006.
(The tax treatments are largely the
same as those in 2011).
60
Caveats about the Estimates
 Include only price effects (income
effects are likely to very small).
 Does not account for possible
transformative changes that could
lead to a major behavioral shift.
61
Price Elasticity Estimates
from Selected Studies
Selected Empirical Studies
Permanent
Price
Elasticity
Transitory
Price Elasticity
Randolph (1995): 1979-1988
-0.51
-1.55
Auten et al. (2002): 1980-1992
-1.26
-0.40
Bakija, McClelland (2004): 1979- -0.24
1990
-0.40
Bakija, Heim (2011): 1979-2006
-1.10
-0.72
Experimental Method
Overall
Elasticity
Karlan, List (2007)
-0.30
62
Price Elasticity of Giving
 Main Analysis: Assume Elasticity = 0.5
 Sensitivity Analyses:
 Higher responses: Elasticity = -1.0
 No response: Elasticity = 0
63
Effects on Donations and Tax
Subsidies
Floor for Eligible
Donations
Total
Contributions
Change from
Current-Law Level
Dollars
Percent
Tax Subsidy
Change from
Current-Law Level
Dollars
Percent
Keep Deduction Available Only to Itemizers but Add Floor
Option 1
$500/$1,000
Option 2 2 percent of AGI
202.5
200.0
-0.5
-3.0
-0.2
-1.5
35.4
25.2
-5.5
-15.7
-13.5
-38.5
 The floor would allow the deduction
to continue providing incentives but a
much lower cost.
64
Effects on Donations and Tax
Subsidies
Floor for Eligible
Donations
Total
Contributions
Change from
Current-Law Level
Dollars
Percent
Tax Subsidy
Change from
Current-Law Level
Dollars
Percent
Extend Deduction to All Filers
Option 3
No floor
Option 4
$500/$1,000
Option 5 2 percent of AGI
205.0
203.8
201.1
2.0
0.8
-1.9
1.0
0.4
-0.9
46.1
38.4
27.8
5.2
-2.5
-13.1
12.8
-6.1
-32.1
 Extending the deduction to all tax filers
would be costly without a floor.
65
Effects on Donations and Tax
Subsidies
 However, combining this deduction
with a floor could both raise
donations and lower the tax cost consistent with the finding by
Ackerman and Auten (2006).
66
Effects on Donations and Tax
Subsidies
Floor for Eligible
Donations
Total
Contributions
Change from
Current-Law Level
Dollars
Percent
Tax Subsidy
Change from
Current-Law Level
Dollars
Percent
Convert Deduction to 25 Percent Credit for All Filers
Option 6
No floor
Option 7
$500/$1,000
Option 8 2 percent of AGI
205.7
204.5
202.0
2.7
1.5
-1.0
1.3
0.7
-0.5
48.0
38.5
29.0
7.1
-2.4
-11.9
17.4
-5.8
-29.2
 Similar pattern of results would occur
if the itemizer deduction was replaced
with a 25% credit.
67
Effects on Donations and Tax
Subsidies
Floor for Eligible
Donations
Total
Contributions
Change from
Current-Law Level
Dollars
Percent
Tax Subsidy
Change from
Current-Law Level
Dollars
Percent
Convert Deduction to 15 Percent Credit for All Filers
Option 9
No floor
Option 10 $500/$1,000
Option 11 2 percent of AGI
195.2
194.4
193.0
-7.8
-8.6
-10.0
-3.9
-4.2
-4.9
27.6
21.9
16.3
-13.3
-19.0
-24.6
-32.6
-46.5
-60.1
 A small credit (e.g. 15% credit) would
lower both donations and tax subsidy.
68
Effects on Various Income Groups
 Comparing
Tax Subsidy
Rate
(= Tax
Subsidy/AGI)
under current
law and under
a given policy
change.
Tax Subsidy Rates Under Current Law,
by Income Group, 2006 (Percentage of AGI)
1.00
0.80
0.60
0.40
0.20
0.00
Under $50,000
$50,000 $100,000
$100,000 $200,000
$200,000 $500,000
Above
$500,000
69
Effects on Various Income Groups
 Extending
tax benefits
to all filers
would mostly
benefit
lower- and
middleincome
taxpayers.
70
Effects on Various Income Groups
 Adding a floor
would lower tax
subsidies across
the board.
 High-income
taxpayers are
significantly
worse off under
the 2% of AGI
floor.
71
Sensitivity Analysis: Alternative
Elasticity Values
 Two alternative assumptions:
 Zero elasticity
 Elasticity of -1.0
 Main results still hold.
 Adding a floor would lower revenue cost
significantly with moderate effects on
giving.
 Extending tax subsidies to all filers
without a floor is very costly.
72
Sensitivity Analysis: Alternative
Elasticity Values
Total
Contributions
Change from
Current-Law Level
Dollars
Percent
Tax Subsidy
Change from
Current-Law Level
Dollars
Percent
Option 3--Deduction for All Taxpayers with No Floor
Elasticity of 0 (Not responsive)
Elasticity of -0.5
Elasticity of -1.0
203.0
205.0
207.4
0
2.0
4.4
0
1.0
2.2
45.6
46.1
46.7
4.7
5.2
5.8
11.5
12.8
14.3
0
0.4
0.9
38.2
38.4
38.7
-2.7
-2.5
-2.2
-6.7
-6.1
-5.4
Option 4--Deduction for All Taxpayers with $500/$1000 Floor
Elasticity of 0 (Not responsive)
Elasticity of -0.5
Elasticity of -1.0
203.0
203.8
204.9
0
0.8
1.9
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Sensitivity Analysis:
Possible Retiming of Donations
 A floor creates an incentive to bunch
contributions.
 Example: a family with annual giving of
$3000
 Assume a floor of $1000
 No bunching: $2000 eligible for tax subsidy
 Bunch in alternating years: Year 1 gives
$6000, Year 2 gives 0.
 $2500 eligible for tax subsidy (averaged
amount over 2 years).
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Sensitivity Analysis:
Possible Retiming of Donations
Total
Contributions
Change from
Current-Law Level
Dollars
Percent
Tax Subsidy
Change from
Current-Law Level
Dollars
Percent
Option 5--Deduction for All Taxpayers with 2% of AGI Floor
No retiming of contributions
Contributions bunched in alternate years
201.1
203.3
-1.9
0.3
-0.9
0.1
27.8
34.5
-13.1
-6.4
-32.1
-15.7
 A floor still reduce the tax revenue
cost significantly, with relatively
modest effects on total giving.
75
Some Key IRS Resources
 Internal Revenue Service, Tax Information for Charities
& Other Non-Profits web page,
http://www.irs.gov/charities/index.html?navmenu=men
u1
 Forms and Instructions for Exempt Organizations Links
to current tax forms for tax-exempt organizations,
http://www.irs.gov/charities/article/0,,id=214269,00.ht
ml
 Form 990 Resources and Tools
Educational materials about EO annual return filings,
http://www.irs.gov/charities/article/0,,id=214479,00.ht
ml
 IRS Stay Exempt: Tax Basics for Exempt Organizations,
http://www.stayexempt.irs.gov/Home.aspx
76
More IRS Resources
 Stay Exempt (Course Summary: Unrelated
Business Income),
http://www.stayexempt.irs.gov/ResourceLibrary/pdfs/Mod2_Summary.pdf
 Unrelated Business Income Tax - Special Rules
for Organizations Exempt Under Code Section
501(c)(7), 501(c)(9), 501(c)(17), or 501(c)(20),
http://www.irs.gov/charities/article/0,,id=96106,
00.html
 Publication 598, Tax on Unrelated Business
Income of Exempt Organizations
 Unrelated Business Income Tax Course,
http://www.stayexempt.irs.gov/virtualworkshop/
UnrelatedBusinessIncome.aspx
77
More Resources
 Roger Colinvaux, Charity in the 21st Century: Trending
Toward Decay (2011),
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=18
09171
 Molly F. Sherlock & Jane G. Gravelle, An Overview of the
Nonprofit and Charitable Sector (2009),
http://www.fas.org/sgp/crs/misc/R40919.pdf
 Joint Committee on Taxation, Historical Development
And Present Law Of The Federal Tax Exemption For
Charities And Other Tax-Exempt Organizations (2005),
http://www.jct.gov/publications.html?func=startdown&id
=1586
78
More Resources
 Senate Finance Committee Hearing on Charity Oversight
and Reform (Congressional Research Service Report No.
R40919, June 22, 2004),
http://finance.senate.gov/hearings/hearing/?id=48ca4cc
e-afe1-db95-0fcb-8ff9255e780a
 Nonprofit Law Prof Blog,
http://lawprofessors.typepad.com/nonprofit/
 National Center on Philanthropy and the Law (NCPL),
http://www1.law.nyu.edu/ncpl/

Conferences:


Shades of Virtue: Measuring the Comparative Worthiness of Charities
(2009)
(Published Proceedings forthcoming 2011)
Structures at the Seam: The Architecture of Charities’ Commercial
Activities (2008)
79
About the Author
 Jonathan Barry Forman (“Jon”) is the Alfred P.
Murrah Professor of Law at the University of Oklahoma
College of Law and the author of Making America Work
(Washington, DC: Urban Institute Press, 2006).
 Jon was the Professor in Residence at the Internal
Revenue Service Office of Chief Counsel, Washington,
DC, for the 2009-2010 academic year.
 Jon can be reached at [email protected], 405-325-4779,
www.law.ou.edu/faculty/forman.shtml.
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