O'Reilly logo

The Law of Tax-Exempt Healthcare Organizations, 3rd Edition by Bruce R. Hopkins, Thomas K. Hyatt

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER FOURTEEN

Development Foundations

§ 14.1 BASIC CONCEPTS

(f) Public Charity Status

p. 326. Insert as fourth complete paragraph:

With the change in 2006 in the federal tax statutory law pertaining to supporting organizations and the resulting proposed regulations,24.1 healthcare entities and other existing and potential supported organizations need to be concerned about the type of supporting organization used in the development context. Normally, these development foundations are controlled entities,24.2 so use of the supporting organization in this regard would cause the supporting organization to be in the Type I category.24.3 If, however, the Type III category of supporting organization24.4 should be considered, it is essential that the entity be structured and operated as a functionally related Type III supporting organization, because fundraising and making grants to a supported organization may not be appropriate activities for a non–functionally integrated Type III supporting organization.24.5

24.1. See § 5.5(e), note 225.

24.2. See § 14.1(d).

24.3. See § 5.5(d)(i).

24.4. See § 5.5(d)(iii).

24.5. See § 5.5(g), text accompanied by note 244.3.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required