Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition 2019 Cumulative Supplement, 5th Edition
by Jody Blazek
CHAPTER 2Qualifying Under IRC § 501(c)(3)
*p. 28. Add after second sentence in first paragraph:
This relationship between IRC § 501(c)(3) and § 170 is important, despite fact that neither of the code sections refer to the other. The significance is an integral part of IRC § 509, which distinguishes between public and private charities.1
§ 2.1 Organizational Test
p. 31. Add at end of page:
The production and promotion of concerts presenting the work of the organization's creator was admittedly educational and reputedly also included collaborating artists. Workshops, private lessons, master classes, and teaching residencies related to contemporary art music presented to the public weren't enough to gain tax exemption for an organization created by an individual musician. The IRS found that the work advanced the artist's career and was the “single substantial activity.” Possibly the opinion was influenced by the fact that the creator was a board member and could not be removed. Maybe one should add “enhancing the Executive Director's reputation to private inurement” to any discussion of noncharitable purposes.2
§ 2.2 Operational Test
(a) Charitable Class
p. 38. Add after fifth sentence:
Similar to the decision in the Western Ho case, the IRS ruled that undocumented aliens served by the proposed organization were not members of a charitable class, so the organization did not qualify ...