Charities are focusing more and more attention on revenue-generating activities, both as a means of carrying out their missions and as a means of generating revenue to support their missions. With the expansion of web-based strategies and global communications, charities, often working with commercial "partners," have been developing new and innovative income-generating strategies that must be evaluated and tested against established laws.
Areas of Focus
- Related business income generated by an entity such as a museum, or symphony, or low-income housing provider, while furthering its exempt purpose.
- Corporate sponsorships and the IRS rules that pertain to them.
- Unrelated business income derived from activities that do not directly further a charitable purpose, but generate taxable money to support the client’s mission.
- Vehicle donation programs and the regulations associated with them.
- Tax-exempt bonds issued by a municipality for the benefit of hospitals, schools and other public nonprofits.
- Raffles and gaming.
- Joint ventures between nonprofit and for-profit organizations, focusing on ensuring nonprofit clients maintain their tax-exempt status.
- Social enterprises, which use a corporate business model to achieve a charitable mission or solve a public problem such as global warming, disease, or poverty.
- Commercial co-venture arrangements.
- Compliance with state fundraising laws.
Related Blog Posts (18)
Past Events
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In-Person November 8, 2024
American Bar Association's LLC Institute 2024 with Stetson Law School - Session: "A Versatile Vehicle for 21st Century Philanthropy"
Philanthropy in the 2020s is a far cry from the days of Carnegie and Rockefeller. Impact-oriented philanthropic funders and charitable organizations are increasingly creative in their approach to achieving charitable objectives. To that end, vehicles commonly associated with for-profit business, such as limited liability companies, are frequently used to achieve these objectives. This panel will discuss an overview of several practical ways LLCs can enhance philanthropic enterprises, as well as academic reflections regarding this trend.
Presenters:
- Prof. Joan MacLeod Heminway, The University of Tennessee College of Law
- Prof. Eric Amarante, The University of Tennessee College of Law
- Sharon C. Lincoln, Casner & Edwards
- Andrew Schulz, Adler & Colvin
11:25 a.m. to 12:55 p.m. ET
Tampa, Florida
1.5 hours of CLE credit
Presenter
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In-Person Conference May 21, 2024
Western Philanthropy Conference 2024 - Session: "Race Conscious Philanthropy"
Last year’s Supreme Court decision on admissions practices surprised many of us in the sector. The ruling left many of us wondering how this would impact other areas of operations, including employment practices and grantmaking. Our session will focus on what the landscape of race conscious philanthropy looks like today and potential areas of concern in light of last year’s ruling.
1:00 p.m. – 2:15 p.m. PT
Co-Presenters:
- Katy Youker, Lawyer’s Committee for Civil Rights, Director of the Economic Justice Project
- Tom Saenz, Mexican American Legal Defense and Educational Fund, President & General Council
Seattle, Washington
Presenter
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In-Person Conference May 20, 2024
Western Philanthropy Conference 2024 - Session: "Compliance in Complex Philanthropy Structures"
Self-dealing always seems to catch people by surprise. The rules are often not intuitive and have remained relatively unchanged for 60 years. Join us as we discuss common self-dealing issues that arise in family offices and strategies that every office should put in place to safeguard everyone involved.
3:45 p.m. – 5:00 p.m. PT
Co-Presenter: Susan Dawson, The Parker Foundation, General Counsel
Seattle, Washington
Presenter
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In-Person Conference February 9, 2024
UT Law’s 41st Annual Nonprofit Organizations Institute Conference - Session: "Revenue Generating Activities; Financing Structures and Mechanisms, Tax Credits and More"
The Inflation Reduction Act (IRA) expanded clean energy tax credits, making them available (and refundable) for tax-exempt and government entities and incorporating incentives intended to steer benefits toward low-income communities. Explore how the IRA’s credits and incentives can create opportunities for financing charitable activity and traps for the unwary.
10:50 a.m. – 12:25 p.m. CT (Break 11:35 a.m. – 11:40 a.m. CT)
Co-Presenters:
- Jorge Lopez, MacArthur Foundation
- Dahlia Doumar, Patterson Belnap
- Ruth Madrigal, KPMG
Austin, Texas
Presenter
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Webinar August 10, 2023
CalNonprofits Session: "Ask a Nonprofit Lawyer: You Have Questions, We Have Answers"
11:00 a.m. – 12:00 p.m. PT
Free for CalNonprofits members; $45 for not-yet-members
Join us for something new! We’re bringing together two of the state’s most experienced nonprofit legal minds to address some critical nonprofit legal basics and answer some of your most pressing nonprofit-related legal questions. Eric Gorovitz and David Levitt, both principals at nationally recognized Adler & Colvin, will discuss such issues as compliance, privacy and data security, fundraising regulations, lobbying, and employment law as it applies to nonprofits.
You can also help guide our discussion by submitting your own questions for Eric and David. What legal quandaries are keeping you up at night? Is it about your board? Are you 501(c)4 curious? Let CalNonprofits know via the registration form, and we’ll do our best to respond to as many questions as possible. CEO Jan Masaoka will be on hand to help us sort through our sector’s most pressing concerns.
Presenter(s)
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Panel May 11, 2018
ABA Section of Taxation May Meeting: New Section 512(a)(6): Unrelated Business Taxable Income Silos – Separating the Corn from the Wheat
Co-panelist: Meghan R. Biss, Caplin & Drysdale
Co-panelist: Maura Whelan, Simpson Thacher & Bartlett, LLP
Washington, DC
Presenter
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Presentation May 1, 2018
Center for Volunteer and Nonprofit Leadership, Emerging Leaders Program: “Nonprofit Legal Compliance”
Presenter
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Panel April 26, 2018
Georgetown University Law Center conference
Representing & Managing Tax-Exempt Organizations
First panel: Fundraising and Crowdfunding on the Internet and Social Media
Co-panelist: Courtney Aladro
Second panel: Ask the Experts
Co-panelist: Jim Joseph and Morey Ward
Washington, DC
Presenter
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Seminar March 27, 2018
Grant Thornton, LLP - “What’s New in Not-for-Profit Law?”
