Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 4Charitable Organizations

• § 4.1 Relief of the Poor
• § 4.3 Lessening the Burdens of Government
• § 4.5 Advancement of Education and Science
• § 4.6 Promotion of Health
  • (j) § 501(r) Requirements for Hospitals

§ 4.1 Relief of the Poor

p. 77. Add new examples:

• An organization of retired accountants and students that provides free accounting services for the benefit of the poor and distressed (members of a charitable class), including non–§ 501(c)(3) organizations, was determined with one caveat to qualify as an organization described in § 501(c)(3). The new organization had stated it intended to pattern its operations after the guidelines¹ providing for the exemption of public interest law firms. The distinction in the determination was that the new entity would serve the individual poor persons rather than performing “specified accounting services toward the resolution of issues of public interest,” which would not qualify. The creators planned to set up an independent control committee that would determine whether each case it proposed to take involved a matter of public interest (or not) and whether the individuals or groups involved could not have otherwise afforded such accounting services. In addition, it would be staffed by volunteers, it would not accept fees, and its support would come from grants and foundations.²
• A nonprofit organization created to market the cooking and needlework of needy women who were not otherwise able to support themselves and their families. ...